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Bully for Bush. The
president has achieved another milestone in his mission to bridge the
philosophical gap between conservatism and left-liberalism. “The
Decider” recently endorsed the socialist concept of a wealth gap, and
promised to do his level best to level the playing field through the
familiar distribution schemes: “helping people afford health insurance
and providing more money for education, including increased Pell grants
for college,” to quote the Wall Street Journal.
Some people are richer than others. Others don’t like
it. It’s called envy. Aggregate individual differences in the ability to
accrue wealth are not the best measure of the country’s economic
well-being. The demand to reduce these differences, or soak the rich,
is, however, a good measure of envy. Substitute wealth with another
individual difference: beauty, for example. Is it fair that some are
more beautiful than others? Since it’s impossible to lay claim to their
physical assets, perhaps government ought to compel the beautiful to
subsidize plastic surgery for the congenitally ugly?
A more meaningful measure of economic health is
the ability to afford basic necessities: food,
housing, clothing, hygiene, health care, telephone and transportation,
to use the Fraser Institute’s gauge. More crucially, the
freer a society, the less likely government is to placate the envious by
taking from those they envy. In unfree
societies, that’s precisely what governments do: pacify the
multitudes by mulcting the few.
Since he has already adopted the language of “class
struggle” and inequality under the law, Bush is unlikely to point out
anytime soon that the much-maligned rich also pay most of the nation’s
taxes. Before he utters one of those unthinking commonplaces about the
rich earning most of “the nation’s income”—“the top percent of households
claiming 50.4 percent of all the income,” to quote the WSJ again—let me offer
another correction for defecting conservatives like the president. There
is no such thing as the “nation’s income”—a preexisting income pie from
which the greedy appropriate an unfair share is a pie-in-the-sky.
Wealth doesn’t exist outside the individuals who create
it; it is a return for desirable services and resources they render to
others. Labor productivity is the main determinant of wages. The
Marxist-Leninist zero-sum analysis, whereby wealth is seen as having
been attained at someone’s expense—that’s false. False and dangerous.
This envy based notion has propelled the persecution of “ethnic
minorities …which have achieved prosperity from poverty—Jews in Europe,
Levantines and Indians in Africa, Chinese in south-east Asia,” in the
words of the late economist P.T. Bauer.
In his
January
address to the nation,
the president offered up yet another fallacy that has hardened into
dogma among socialists on the left and right.
The Iraqi government, he told Americans,
was going to spend billions “of
its
own money
on reconstruction and infrastructure projects that would create new
jobs.” Perhaps the numbingly absurd part about the Iraqi government’s
“own money” distracted from the fluff about government’s—any
government’s—ability to create jobs.
Government job creation schemes are predicated on
government taxing, borrowing or inflating the money supply—activities
that reduce capital available to the private sector. Such programs are
politically popular because they are visible. However, for every job
“created” by government, an unidentifiable job will be destroyed in the
private sector. Fox News, keen to hype good-news stories from Iraq, may
broadcast images of earnest Iraqi men and women put to work by Nuri
Kamal al-Maliki (read the American taxpayer). Invisible will be those
thrown out of work (in the US and Iraq) because private economic
activity has been crowded out by government borrowing or expanding the
money supply to finance these job programs. And because of bombs.
Creating sustainable, long-lasting employment lies in
producing goods or services for which there is a legitimate consumer
demand. A rise in consumer demand for a product, reflected in relatively
higher prices, galvanizes business to hire more workers and produce more
of the commodity. Hence jobs in the private sector are real jobs because
they are sustained by consumer preferences. Unsustainable government
make-work schemes merely usurp the wishes and needs of consumers, and
substitute them with the fancies of bureaucrats, beholden to their
political masters.
Sustainable jobs in Iraq can only be created by the
private sector. For that, ordinary Iraqis require peace and the rule of
law. The preconditions for prosperity in Iraq remain remote due to the
chaos and carnage of a civil war conceived by Bush’s most ambitious
central plan to date.
©2007 By Ilana Mercer
WorldNetDaily.com
(March 2),
The
Colorado Springs Gazette (March 9)
&
Jacksonville Daily News
(March 12)
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