Tuesday, 3 December 2013

They don't get it, literally

I just read yet another pathetic leftist post on Facebook which called to attack the wealth of the rich as it was the only way to bring about equality, or whatever other reasons for interfering even more with a free society, and as I have said already, this is an entirely false view of economics, as each person earns independently of others, and as such their wealth is not 'taken' out of the economy, but is simply part of it, each added pound is an addition to the economy, the only genuine cause of growth (unlike debt and quantitative easing propping up our disastrous current economy as if moving the decimal point cures the patient), added value.

So, by taking more and more taxation from the rich, like quantitative easing, it is not simply redistributed, as the socialists claim, but it is spent. Yes, all those billions in extra tax above 40%, which arguably is quite enough to take from any hard working individuals does not get donated, like a charity, to the poor, but spent, however the government wants to. Of this, only a tiny fraction goes back to the poor on means tested benefits while the rest (minus public sector salaries, which are earned by the individuals, not given) goes on:

Defence- automatic benefits to the unemployed and unfit to work- pensions (which used to be earnings related, giving more to the richer as they paid more into it in tax)- infrastructure projects like railways and roads- subsidies- climate projects, and basically whatever they want to spend it on, but mostly not the poor. Only means tested benefits, tax credits and housing subsidies go to the poor from richer people's taxes, but all the rest goes on both essential services as described, and optional projects, like the possible new estuary airport and vastly expensive new London buses. In the end a small fraction goes back to the poor, but would be unlikely to get even more however high the tax take as they spend it as they wish for any excess above the basic essentials, and whoever is in power, even if communist, cannot be forced to return your hard earned money to any good cause, as it is in their hands to decide.

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