Socialism does not work. Why not? The average wage in society is lower due to socialism and everyone has to make do. Socialism destroys wealth. Socialism has many definitions but the one I am using is a redistribution of income from those who have it to those who don't. Ultimate socialism would be determining the average wage, taxing those who make over it down to the average wage, and subsidizing those who earn below it up to the average wage. The problem with ultimate socialism is that those who earn over the average wage have no incentive to keep earning if it will be taxed away. Once they earn up to the average wage they will choose leisure over work. The average wage then falls. Incentives matter and greatly. Socialism does reduce the gap between the rich and the poor. Unfortunately, it does so by making everyone poorer. Socialism is a scaled down version of ultimate socialism. It doesn't work either but collapses slower.
The bottom line is that if you take away more from people who work and give more to people who don't work the result will be less work. For both rich and poor the incentive is to work less.
Right on
Subscribe to:
Post Comments (Atom)
Good luck with the blogging. Get yourself set up on The Blogging Tories and it will help you get some traffic.
ReplyDelete