… and the coveting class of which Sanders is just the latest prophet, knows it.
The fundamental producer of income inequality is freedom. Individuals have different aptitudes and attitudes. Not even universal free public education, even were it well done, could equalize the ability of individuals to add value to the economy. Besides, some people want to teach, others want to run hedge funds. In an open society, rewards are set not by political power but by impersonal market forces, the rewards of which will differ dramatically but usually predictably. Beyond freedom’s valuable fecundity in producing unequal social outcomes, four other facets of today’s America fuel inequality.
First, the entitlement state exists primarily to transfer wealth regressively, from the working-age population to the retired elderly who, after a lifetime of accumulation, are the wealthiest age cohort. Second, big, regulatory government inherently exacerbates inequality because it inevitably serves the strong — those sufficiently educated, affluent, articulate and confident to influence the administrative state’s myriad redistributive actions.
Third, seven years of ZIRP — zero-interest-rate policy — have not restored the economic dynamism essential for social mobility but have had the intended effect of driving liquidity into equities in search of high yields, thereby enriching the 10 percent of Americans who own approximately 80 percent of the directly owned stocks. Also, by making big government inexpensive, low interest rates exacerbate the political class’s perennial disposition toward deficit spending. And little of the 2016 federal budget’s $283?billion for debt service will flow to individuals earning less than the median income.
Fourth, family disintegration cripples the primary transmitter of social capital — the habits, mores, customs and dispositions necessary for seizing opportunities. When 72 percent of African American children and 53 percent of Hispanic children are born to unmarried women, and 40 percent of all births are to unmarried women, and a majority of all mothers under 30 are not living with the fathers of their children, the consequences for the life chances, and lifetime earnings, of millions of children are enormous.
But those that covet figure it won’t be them who gets their earnings taxed, their wealth confiscated. Collectivism is just a tool, a use political power to gain the influence and riches they can’t get through talent and hard work.
It is a looter ethos masquerading as a moral imperative.
There really isn’t anything wrong with want to help the poor but, when did it get to the point where the more you signed up for hand outs translated to more “success”?
Harry Frankfurt is the author of another essay called On Bullshit.
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