Redistribution of wealth vs. creation of wealth. What really redistributes wealth where does it come from?

Question

You can't redistribute what doesn't exist. Those who wish to redistribute wealth first have to understand what creates wealth. How does government tampering with economic systems help create wealth.

Answer 1

They don't create wealth. They just equalize it. Government intervention is explicitly a parasitical function of cynical elitists exploiting the hapless and scared. They have no intention of actually empowering people, because that would make government involvement unnecessary, and disempower them. Your weakness is their strength.

Government can never make you as rich as your neighbor, they can only make your neighbor as poor as you. They call this, "Fair".

In reality, Prosperity is infinite, and Wealth is relative. Where a liberal sees the need to insure that everyone gets an equal piece of the pie, a conservative simply sees the need to make more pies.

Answer 2

I don't really believe that the present administration is trying to redistribute, but rather, level the playing field, so everybody has some potential to create. Whether they use that potential, or not, is up to the individual.

Government hopefully lays down some rules. Without rules, not everybody would play fair, and I think you would admit that many fortunes have been created, by not playing fair. Just ask the company officers of what was once 'Enron', where not only were people put out of work, their retirement savings vanished. Wouldn't you agree that government should offer, at least, a little protection, and fairness? Hopefully without over-regulating.

Can you believe it, the Dow hit 14000 yesterday, that damn Obama :-) I have a feeling it doesn't make much difference who's president, these days. They are pretty much, all the same. They all just want to get elected, and they do whatever they do, to achieve that goal. I don't see that changing much. The wealthy will probably remain wealthy, and poor will probably remain poor. Any redistribution will be distributed among our representatives, and their lawyers. I'm not saying that to be vicious, or pessimistic, it just seems to be the way it is. Two people can get the same education, one might exceed in procuring wealth, and the other be destitute. Go figure. Sometimes, it's just the luck of the draw. Only thing I suggest is that there be repercussions for those who deal from the bottom of the deck. We can say, 'there already are' protections, although, there are too many loopholes. Bottom line is, 'Who can afford the best attorney, and what golf course do they play."

I'm not ranting, honestly :-)

Answer 3

To begin with, most of the people who are wealthy didn't necessarily earn it regardless of what you read or think. Some have, without a doubt, inherited it and some have worked for it and still others have just fallen into it by chance. The truth is, you can't even think about becoming wealthy if you don't have a job, if you don't make enough money after living expenses to save or if you don't know how to save or don't do it when you do know. It is also true that jobs are created by the business and industry sector who are in the business in the first place to make money, the more the better, and need workers to fulfill their own dreams. If those same businesses are creating jobs in other places than our own country, someone else has the jobs and the industries are still making money. To say you can start your own business is easy to say but to do this you usually need a good idea and at least some money to start up. Even if you have the money, back up of family and friends, a good product, good market, knowledge and everything is good to start one, you need to have the know how to run one and that is what is lacking in about 90% of the world. Most people are followers, not able to run anything. I don't know what you think constitutes "redistribution of wealth", other than to create jobs. Taxing all the people's earnings with the same percentage doesn't seem to be out of line. Earnings are earnings, after all, regardless of how you earned them and would be taking from all equally to run the government. Those who run the country need to make sure we have jobs created here and not offshore. That is the only thing that will keep Americans working. They also need to keep things equitable for all citizens. Problem is, most of the politicians are fairly wealthy and also greedy and want to keep the business and industrial groups happy so they can get wealthier and thus we have industry lobbyists to help them make decisions. Not only do they help the politicians get wealthier, so does the business and industrial world, as long as they hold hands with each other, big business, who are people too, will pay their way back into office. Crooked world, isn't it.



So to answer your question, I think No.1. We need equitable taxation, 2. Ways to keep jobs for all Americans and 3. Politicians who have to follow the same laws as the rest of us.

Answer 4

In Fact (and I do not understand WHY no one seems capable of understanding the Obvious) Wealth is Created by the addition of Work!

Take something of little value and through the wise addition of appropriate Work, alter that material or situation in a manner that increases its value. Then "sell that product or service for a profit. Then Repeat the process.

Even all the gold on earth had no value until someone put in the Work needed to find it and dig it out of the ground.

Socialism NOT an economic system, it is a Control system. Socialism creates Nothing, it just confiscates the assets someone created and then some Elitist with excessive Power manipulates it and uses it in the manner he deems is correct by His despotically imposed system of his own invention.

Everything that has Value was created by the addition of Work. Value and Wealth is Not fixed or limited. It is the result of creativity.

Much wealth is possessed by those who didn't create it, but that is the result of injustices usually perpetrated by the Corrupt, or in some cases, it is the result of receiving the wealth as a gift as in the situation of an inheritance. Even inherited wealth was originally Created through Work.

Answer 5

The federal government does not really have a debt problem. The so-called national debt is the net sum of all annual federal budget deficits since George Washington’s first year. But why is it a debt?



To simplify the discussion, we will ignore foreign trade. When the government repairs a bridge, it orders goods and services and pays with dollars. Eventually, all the money ripples through the economy and becomes the income of individuals. After consumption spending, the dollars remaining with individuals will be either taxed or saved. The public has savings only because it was not taxed enough.



If the government doesn’t tax enough, it will have a deficit equal to the public’s savings. Without the deficit, there would be no private savings. If every annual budget since George Washington had been balanced, cashless consumers would now be bartering for food, shelter, and clothing. The national debt is equal to the financial assets of the public. Deficits and the national debt are good for the public!



To see whether the national debt has to be “paid”, we have to ask: “Where did the government get the dollars to fix the bridge?” Some, but not all, was found in the Treasury. Compelled by a stupid law, the government has to borrow from the private sector via bond auctions to pay for the deficit. So, the national debt is not only equal to the financial assets of the private sector but is also equal to the total of outstanding bonds. In fact, due to our inequality of wealth, a large part of the national debt is held by wealthy individuals in the form of Treasury bonds. Of course, our pension funds also have these bonds.



As bonds mature, the government redeems them with a check. Since the Fed buys bonds every day with keyboards that create money out of thin air, the government has no problem writing the check. The national debt can be “paid” any time with no problem.



The only problem is the debt interest expense. Due to the high interest rates that result from bond auctions, the interest can be a considerable portion of the annual budget. The cure for the budget problem is to create the money for the deficit out of thin air with keyboards instead of holding a bond auction. If individuals want bonds to park their money, the Treasury could sell them at a lower interest rate, probably less than the rate of inflation. That would keep the interest expense low.



Did you say “Inflation”? Yes, if we either print or borrow too much money, harmful inflation will result. Printing increases the money supply directly while borrowing moves money from the inactive savings of the bond-buyers to active investment by the government with the same inflationary effect. But borrowing is much more inflationary than printing because the bond interest payments plus the bond redemption check may also be added to the money supply.



So we have no debt problem but only a budget problem which is due to that stupid law that requires borrowing to finance a deficit. That law is a bribery-induced scam that has fraudulently redistributed trillions of the middle class taxpayers’ wealth to the rich. That law is the cause of our inequality, poverty, and debt. Let’s end the scam and the budget problem. Print the damn money!

Answer 6

I can see the point you're making. I would further your question by adding to your sound logic and state that if all the wealth in the world was to be pooled and then divided equally among everyone, soon afterwards the rich would have their money back and the poor would be whinging on about how the world owes them a living. For political and egotistical reasons politicians would be endorsing this ridiculous,and indeed illegal, mindset among the great unwashed masses in an effort to promote their chances of re-election. You cannot make the weak strong by making the strong weak. The entrepreneurs would just go somewhere else to apply their wealth creating skills. The world, and everything therein has evolved by natural selection, or the survival of the fittest. Once you start to tamper with nature you are engineering serious social trouble for both the short and long term. Ideological politicians view things from a romantic stand point without calculating what they are really doing. A nation full of work shy skivers would be the result once you embark on the road to hand outs. What may start out as temporary ''safety net benefits' would become a way of life for many.>>ADDITION>>> Hi again, The point I was making was that to a greater or lesser extent everyone, and every country has some money, albeit in some cases a dime or so. My synopsis of all the money being pooled was, of course speaking metaphorically, and to highlight how there are people who have ''the knack'' to create wealth and in doing so generate an improved standard of living for others by letting them have some ''crumbs of the rich man's table''. If they were to pitch their dosh into a gigantic kitty, figuratively speaking, their skills would remain with them and they would employ these abilities to recoup their riches. The followers,most of whom, need direction and instructions on how to live their lives eventually come to realise that they are extremely small cogs in an enormous wheel and either accept their relative lowly position in life or become resentful at what they perceive as exploitation. In a society where everyone has, more or less, equal opportunities it will be those with a combination of intelligence and/or skills/talents which will create wealth. It is important to recognise that in 'almost' all cases those who create wealth do so primarily for themselves. The ambitious entrepreneur will have all or most of the following attributes, an ability to identify a need or create a desire for a product/service by the public.i.e. Bread or designer high fashion garments such as the range of top quality fashion wear by Ralph Lauren or Ambercrombie & Fitch.. The persuasive skills to acquire the necessary 'start up' capital'. The business acumen to produce realistic projections of his/her project. The visionary is not going to stop at a small 'one depot' operation but will duplicate his/her success as many times as is practical and in as many countries as is feasible. The enterprising business person will require tremendous mental toughness and physical durability to survive the truly hectic pressures and stresses which are prevalent in every business,small or large. Most people only see the successful business person living a relative life of luxury, but fail to see the awful toll it has on his life and health.Then we come to those with outstanding innovation/inventiveness abilities like Bill Gates. If someone was to invent a clean,readily available, easily transportable and inexpensive energy source they would be trillionaires overnight. What else does it require to create wealth? Ruthlessness, single mindedness and good old fashioned greed. Yes sirree Bob, when you have a burning hunger for wealth and success you are not going to let anything get in your way.

Answer 7

that is a dome Q. most of the people create their own wealth with out education and staring from nothing. I came in this country 60 year ago and I work with the people that get me the visa

after 1year I left do to the money ,was to little $42,00 for working 14 hrs 7 days a week in Florida .

I had in my pocket $1,85 when I rich

N Y with that money I had to eat and sleep and get the train to Massapequa long islands, so I make a choice! bye a train ticket or starve to death that was the choices, I decide to get a train ticket. the follow morning I take the train and see a friend for a job in the restaurant. talking to the friend with emptied belling was not so good, I tall him I need food a place to slip, he took me to his room and after a good meal I sleep 24 hrs and I recover, I come in this country as a special technician and graduated from the technical business school 2,1/2 years, but it did not mutter to me I need a job and fast I know nothing abut restaurants, the next 4 years I decide to get married and in 2 years later after a hard work and invest everything I saved I become a dinner owner and I make millions till to day, to day I am on the tap of the latter and land lore .

I say hard work pay off . just stay away from bars and prostitutes, and you will do it. I Dane it why not you?

Answer 8

The grimy little secret of economics is that wealth is corresponding to power. in accordance to the 1st regulation of Thermodynamics, power can't be created nor destroyed, it in elementary terms modifications sort. Wealth is an analogous way. Economics is a nil-sum sport. whilst a house is offered for a fat $250,000 income, there replaced into no macro-financial wealth* created interior the financial equipment; the $250k in elementary terms moved from the customer's hands to the broker's. The secondary markets in shares and bonds have an analogous dynamic. *Ignoring fractional reserve banking and the fictional capital it creates.

Answer 9

You basically answered your own question. But wealth is created by supply and demand.

It usually starts with food, shelter and energy for transportation, from oxen to spaceships.

Nothing from the government.

Farmer grows wheat, he sells for meat, the rancher sells for a home, the carpenter has to by from a lumberman, the lumberman needs an ax etc

It is when the farmer, rancher, lumberman, carpenter needs help that wealth is really starting to spread. People get jobs so they can buy food, homes and transportation.

After the basics it is home to make my life easier, aka milk machine, then entertainment, movies TV and dancing. Then once people start making money someone who doesn't earn any money comes along and wants your money so he can give it away for votes. Once they get non workers voting for them then they can take more wealth until all we get is food, housing and maybe transportation.

Answer 10

Redistribution of wealth is just what the liberals call stealing.

That has been going on since there have been people.



The reason socialist countries all end up in poverty is because there is no point in producing wealth if it is just going to be stolen from you.

Answer 11

"So far this calendar year, the Federal Reserve has bought up more U.S. government debt than the U.S. Treasury has issued."



There is a finite supply of resources we can get from the planet annually, the only thing that changes is the value of the measuring stick used on economic data.



They are projecting an effective illusion. Inflation is the only economic growth, become ingrained into our socioeconomic system.

Answer 12

The only way for a Government to give anything to anyone is to take it away from someone else, got it???

Answer 13

Republicans redistribute wealth all the time.....they just like giving our tax dollars to defense contractors and corporate benefactors instead of to the people who most need it.

Answer 14

You can't really "create" wealth, either. It would still be redistributed from elsewhere...whether that be another country, or a person buying a product.