Bill Whittle at Declaration Entertainment uses a recent Iowahawk post, Feed Your Family on $10 Billion a Day, to figure out how an “Eat the Rich” economics program would work as a solution to our fiscal ills.

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  • http://wwsword.blogspot.com/ Andrew Austin

    The entire argument collapses once we simply note the obvious, namely that there is yet another year of production to follow the year in question, which generates yet another year of wealth and income, which will be approximately the same as the previous year’s yield (the video treats everything as static, so obvious an error that the propagandistic character of the effort becomes immediately apparent). It’s not as if taking all the wealth and income of the rich will bring all that production to a halt. Anybody who says otherwise is either absolutely clueless when it comes to basic economics or is being deceptive (and this video reeks of deceit). History proves me correct. When we taxed the rich at more than 90 percent, it not only didn’t bring the economy to a halt, but in fact played the central causal role in fueling the greatest and most stable economic boom in U.S. history, with sharply falling inequality and poverty. This is because inequality (i.e. the concentration of wealth and income in a few hands) is a fetter on growth, leading to realization crises and wild swings in business activity. No, everything is still in place when you tax the living daylights out of the rich. And taxing them makes everything better in the long run. The wonderful thing about high taxes is that the surpluses are redistributed downward to the people who actually produce value – the working class – raising the life chances for every person. And this enriches everyone.

  • Antonio

    “The entire argument collapses once we simply note the obvious, namely that there is yet another year of production to follow the year in question.”

    No, actually what collapses is the incentive to stay in business next year. If taxes are going to take anything above a certain level, obviously entrepreneurs have no incentive to have the current scale; hence, they will cut back on employment and massive layoffs will ensue. Almost everyone will be worse off.

    The dynamic argument you try to push actually works against you. What makes people work and create firms are the prospects of a flow of future income. If that promise is destroyed, you work less and create less.

  • http://www.davidlohmeyer.com David Lohmeyer

    “The wonderful thing about high taxes is that the surpluses are redistributed downward to the people who actually produce value – the working class – raising the life chances for every person. And this enriches everyone.”

    What happens when everyone’s surplus is “redistributed downward”? Last time I checked a surplus is required to start a business, fund a new idea and experiment with things that haven’t been done before. These new businesses produce jobs, which distribute that surplus without handing out entitlements. The employees of said businesses actually, you know, work for their pay.

  • Alex W

    The problem is not with making (read taking) the money. The problem is with overspending. Everybody seems to spend more than they make, including the government. That’s what landed us all into the recession in the first place and it isn’t going anywhere until someone (read everyone) realises that we need to start living according to our means. That includes government spending.

  • Marc Vander Maas

    “When we taxed the rich at more than 90 percent, it not only didn’t bring the economy to a halt, but in fact played the central causal role in fueling the greatest and most stable economic boom in U.S. history, with sharply falling inequality and poverty.”

    Data please.

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