Tags: president | income | equal | Obama

All Income Should Be Unequal

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Monday, 09 Dec 2013 07:49 AM Current | Bio | Archive

To hear the president talk about it, there's something wrong with unequal income. While at any moment in time different people have different incomes, the president doesn't say what's wrong with that.

Is there an implication that people making more money took advantage of people making less money? Are we to understand that the way people obtain wealth is by taking away from people who do not have wealth?

The American population is mobile and the pattern of unevenly distributed income is a healthy sign of the economy. It is an accepted fact that Americans have opportunities and that the achievement of wealth is not prohibited to anyone.

As I was driving out for dinner this weekend, I heard on the radio that some young guys had created something called Snapchat, which reportedly had already attracted a buyout offer of $3 billion.

Most of the people on the Forbes 400 became millionaires and billionaires on their own ability. This was not due to government intervention or some academic inspired wealth redistribution scheme. Far from it.

Nearly all the people who become high-income earners start out as low-income earners. Everybody has to get started someplace and then billed from there. College students take lots of low-paying jobs because they still do not have the skill set needed to be paid more money. Just because they start off with a minimum wage job means nothing more than their present income earning ability is just a snapshot in time.

The biggest problem Americans are facing in income inequality is government itself. The president seems to feel like progressives have for at least the past 100 years in the United States — for common people to get ahead it is necessary to take from others and lower everyone's playing field.

President Obama did not become a multimillionaire because the government carved out a piece of wealth from the upper economic classes to give to then Mr. Obama. He traveled from his modest beginnings, through college and law school, then a law professor, a community organizer teaching for the Industrial Area Foundation, into politics, and then president of the United States. No claim has ever been made by the president he was an affirmative action recipient.

It seems that while the president received the best education America could offer, he never learned much about the American economy. It is, to say the least, a highly complex and dynamic system.

The president has never articulated a rationale to explain how the American economy works. He proposes policies and institutes actions, believing, I speculate, its manipulation can be controlled and specific results engineered.

What can be said is that every government program distorts the economy and creates unintended consequences. While the best of intentions may have been the motivating factors in creating a government program, once the government institutes the program, those goals are rarely, actually never, achieved.

Income equality is the dream of political ideologists and academics who believe it can be mandated by the government. It highlights the failure of government. In this the president is just another of a long line of politicians who think they can legislate a fantasy into reality.

Self-interest is what drives people to achieve. It also drives bureaucracies.

Contrary to the president's condemnation of income inequality in the American free-market capitalist system, seeing income inequality is confirmation that the economy is working in spite of government interference.

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Kleinfeld
To hear the president talk about it, there's something wrong with unequal income. While at any moment in time different people have different incomes, the president doesn't say what's wrong with that.
president,income,equal,Obama
567
2013-49-09
Monday, 09 Dec 2013 07:49 AM
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