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Friday, October 17, 2008

Questions to ask those who favor redistribution of wealth

Claudia Rosett expresses much better than I can the questions that arise when you start thinking that wealth should be "spread around."
Obama’s breezy remarks to Joe are the voice of the Harvard Man talking down to the Plumber, and somewhere in there, it starts to sound like Orwell’s Big Brother talking to Winston: “It’s not that I want to punish your success. I just want to make sure that everybody who is behind you, that they’ve got a chance for success too,” said Obama. “I think when you spread the wealth around, it’s good for everybody.”

Oh really? Who’s the “you” who’s going to do the spreading? It’s not Joe. If Joe was using his income himself to buy things he wants and can afford, he was already spreading the wealth around — and in the process helping to create real jobs, and real value, probably with a lot more knowledge and efficiency than the government ever could.

But in Obamaworld, the government can do a much better job than Joe himself of spreading Joe’s wealth. So who cares what Joe wants? Once the IRS gets done with him, other government officials must be empowered to decide who, exactly, qualifies as being “behind” Joe. Should that include people who had the same opportunities to make money as Joe the Plumber, but decided they’d rather do something they like more, but which pays less? Should Joe be required to subsidize third-string artists, middle-aged sociology students, unemployed bankers and beach bums? And someone has to decide exactly what it is that other people are supposed to need, and when, and how often, and what government hoops (held by paid government hoop-holders) they have to jump through to get it.

Joe himself may even discover that if he cuts back enough on his work and income, then instead of being required to fork out more taxes, he may qualify for all sorts of government refunds and incentives and handouts. These tend to come with all sorts of government lines and mistakes and complexities — hey, it’s government, the folks who create your IRS forms! So Joe, will be doing even less plumbing, and more paperwork.

And what about people who through no fault of their own are born poor, and need opportunities to realize the American dream? Joe won’t be offering them jobs, or paying them for goods and services – because he’ll be cutting back on business. After all, the wealth-spreaders have reduced his incentives to earn more money, and increased his incentives to spend time figuring out how to get a piece of the growing government dole. If there are fewer people behind Joe, that might just be because he will now be waiting in government lines next to them. And as tax rates go up, and more plumbers cut back on work, tax revenues will go down. The government lines will get even longer. Forget the American dream. Welcome to the nightmare.

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