Monday, November 28, 2011
Income Inequality, Job Creation, and OWS
One thing the collectivists have either forgotten, or more likely never learned, is that a rising tide lifts all boats. Despite a vast gulf in wealth between the richest and poorest in this country, even the poor are much better off than they were even a couple decades ago. "Poor" people in the US generally have running water, TV (often with a cable or satellite hookup), plenty of clothes, and cars. Hell, a lot of them are fat because they sit on their asses and eat junk food.
Only if someone makes his money dishonestly or at the expense of others, e.g., Bernie Madoff, should we be concerned with how he made it, how much he made, and whether he needs to return it. Unless that's the case, we should encourage entrepreneurship, which results in more jobs, which in turn results for more prosperity for more people.
Now, one thing which does need to be stopped is crony capitalism, in which politicians rewards their donors with lucrative contracts, tax laws, or loans made to credit-unworthy borrowers. E.g., General Electric not paying any income tax, or the ill-advised loans to Solyndra. However, crony capitalism isn't the result of income inequality, it's the result of corrupt politicians implementing big city machine politics on a national scale.
Another thing which the OWS-types fail to understand when they complain that "rich S.O.B.s" haven't started any companies to give people jobs is that starting such a company nowadays subjects you to a regulatory nightmare, pretty much regardless of what industry you're in. When starting a company not only do you need to come up with working capital you also need to retain the services of accountants and lawyers so that you can ensure that you abide by a mountain of laws because the Federal government is involved in all aspects of your business. And this is of course on top of the regulatory B.S. you need to deal with on a state and local level. More than a few entrepreneurs with good ideas have basically said, "fuck it, why bother?"