Quote:
Or we would all be enriched This is just capitalist propaganda talk, that for some reason a relatively equal wealth distribution should mean that everyone is poor.
|
Capitalist propaganda?
No, sir - this is economics 101.
Wealth equates to the ability to acquire hard resources. Money is the exchange for said hard resources. The bottom line in all cases are the resources themselves, and they are of finite supply. If you equally redistribute wealth then you would stretch demand for finite resources equally. There are only so many high quality steaks, yachts, etc. to go around.
Now what happens? Everyone wants that which there is not enough to share. So who gets those things? Naturally, either the powerful by way of force (despotism and the despot's acolytes) or those who create such things reserve them for those who's own talents would make excellent barters.
Most cases the latter occurs but in many the former does. I'd much prefer the later. Now, fiat capitalism streamlines the process. Instead of the yacht maker paying, say, the doctor for services with a yacht (which would run out of value as soon as the doctor has no need for a yacht), the yacht maker makes money which which to pay the doctor. And the doctor makes money with which to buy the steak. And the butcher makes money with which to buy ....
Equal wealth redistribution artificially negates the value of those things in the highest demand. For instance (sticking with the yacht example), now that everyone can afford a yacht, there are not enough to go around. So then only some can actually have the yacht, giving the yacht a high, unequal value which defaults the very notion equal wealth distribution. Or we just forget about yachts altogether which then serves to bring down the value of both those who can own yachts and those who create them, hence the idea of the decline of overall national wealth.
Don't misunderstand me - I've written many a paragraph on here supporting why I believe some measure of socialism is inevitable due to the eminent shift to a service-based economy we are facing. However, by no means would an equal distribution of wealth be advisable - all wealth would necessarily HAVE to be lowered, because, as I stated resources are finite and there would be an intrinsic value to possession of said resources (uneven wealth) or such demand for such resources would be eliminated (reduction of wealth).