by Glen Wallace

The dwindling middle class indicates that the only boats rising are yachts sitting in the torpid pools of wealth amassed by the capitalist sharks. Meanwhile, the middle class tributaries are running bone dry, leaving the middle class row boats sitting on dust. Therefore, the only logical solution is to install pumps in the form of asset taxes into those stagnant wealth pools to insure that the wealth gets rerouted and redistributed back into those tributaries. Trickle down economics has been proven false time and again. However, getting money into the hands of those who will in turn put those funds back into circulation by spending it, the middle class, has been shown to have a tremendous positive knock-on effect throughout the overall economy. But to keep the economy booming you need to keep those tax pumps going to insure money doesn’t start stagnating again and rotting in those torpid wealth pools.

Everything is pointing to Hayek being completely wrong — in fact he had everything backwards. Instead of a free-market being the road to freedom, it turns out that the term ‘free-markets’ is just a rebranding of the term ‘laissez faire’. And laissez faire has always been and always will be the direct route to serfdom — and with the struggling middle class we are seeing that first hand in the form of the handywork of Hayek’s intellectual descendants, the Chicago School of economics. And despite the clear evidence that the Chicago school’s laissez faire or freemarket methods of hands-off through repeal of Glass-Steagall and lack of oversight and control of the derivatives market lead directly to the great recession, there has been little corresponding acknowledgment or recognition of the evident refutation of the Chicago School’s economic paradigm.

We can get the middle class back on its feet again, but we need judicious government oversight and regulation along with a good amount of wealth redistribution. One excellent means of redistributing the wealth would be through programs similar to FDR’s programs involving the Civilian Conservation Corp. A massive government program to repair, rebuild and reinforce our nations infrastructure would go a long ways towards getting money back into the economy and refresh and enhance the conduits of commerce. It would be a win win for everyone, including the much more heavily taxed very wealthy who didn’t even know what to do with all that they had, but with such a program, could be proud that their tax dollars were put to such good use; rebuilding a great America.

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2 thoughts on “Wealth Redistribution to Lift All Boats

  1. You ought to read “Capitalism: The Unknown Ideal” by Ayn Rand and then perhaps you could say something intelligent about free enterprise. Communism killed more human beings in the 20th century than absolutely any other -ism, including Nazism (which was a kindred spirit to Communism – both being Left wing totalitarian blood baths).

    1. While I have never read that specific work by Rand, but I think one particular aspect of her thinking could actually be supportive of the public, the government, owning more of the physical economy, including the means of production. I think this can be found especially in ‘The Fountainhead’ where the protagonist, Howard Roark, is motivated not by the pursuit of money, or capital, but by the inherent creative desire to mold the material world into something better through his architectural designs. A parallel can be found in public works projects, where the government has done a great job and continues to do a great job in the design and construction of everything from the interstate highway system to space exploration without the capital motive. As a progressive, I disagree with a lot of what Rand wrote, but I do think she did recognize that humans are not motivated like some lab animal that can only be either lured into action by dangling a carrot of wealth or motivated to action by the prospect of the stick of poverty behind them. If anything, capitalism tends to interfere with progress as can be seen by the incompetence and overspending in many instances where private enterprise has attempted to take over where the government was doing quite well — cases in point: Enron with California energy, Halliburton and other private companies providing military logistics, and for-profit colleges.

      Stalin and Company were largely not practicing communism, even if they tried to use that moniker to garner populist support. Almost all of the so-called communism of the twentieth century was more oligarchy or even monarchy than communal. For communism to be communism, the operation of the government needs to be run by the community, not by a few oligarchs or just one monarch such as Stalin for it to be a communal system. Because today’s twenty first century communist parties do not seem to fully recognize the past abuses done under the party name and the associated veering from communist ideals, I tend to distance myself from any modern communist party such as the CPUSA.

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