Tuesday, August 5, 2014

The Leftists Will Make Sure Everyone Worse Off

Democrats like to rail against income inequality. They like it because it's their rationale for ever-higher taxes to "soak the rich" while their spending rises even faster.  Leftists always need more OPM -- other people's money.  Or they claim that more taxes are required to reduce the deficit, but the deficit only gets bigger as spending increases outpaces revenues. 
Although inequality is partly caused by an intelligence gap (and cultural collapse in the case of African Americans),  it's also significantly the fault of "inflationista" policies pursued by our Federal Reserve that hurt the poor but boost the wealthy who hold equities and have inflation 'hedges.'  See my blog How to Reduce Income Inequality; It's Not About Minimum Wages.

But soaking the rich might lower the income of the wealthy, but it'll also hurt the less well-off. This has been known for 100 years and proven in places like the UK (who have even more Socialists than America). Let Margaret Thatcher explain it to you (clip here on YouTube)

Reducing income of the 'wealthy' will reduce prosperity for everyone! The gap between rich and poor will fall but at lower levels of income where everyone is worse off!  

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