I’ve heard a lot of breast-beating from histrionic liberals who decry the fact that some people have much more money than others. Is this really a bad thing? I say “no” and here’s why.
First of all, rich people have the money to start and run businesses as well as providing venture capital for those who don’t. These companies employ thousands of family bread-winners. If it wasn’t for entrepreneurs risking their money to create products, services, and jobs, our countries would be back in the bad old days of subsistence farming.
Wealthy folks also buy luxury items such as yachts and mansions. They need to staff these with workers, creating more employment. Rich people take cruises and vacations as well, creating jobs for even more workers.
All this disposable income creates demand for consumer products. If everybody was equally poor, as socialism would have us be, consumer goods would cost much more and become luxury items. Demand for products and services perpetuates the need for employable workers which, in turn, creates more demand for products and services.
Like the tide raising all boats, capitalism raises the standard of living for everybody. Even the poorest person in America or other western countries lives well compared to the abjectly impoverished people in third world countries.
Then there’s the matter of charitable giving to consider. Wealthy individuals set up philanthropic organizations to help the poor and to fund research into curing diseases. Though some folks do it as a taxable deduction, many do so because they realize how blessed they are. When even people of modest means have more money than they need to live on, they’re more likely to donate to worthy causes as well.
Furthermore, if there were no rich people to pay taxes, where would governments get their money for social programs such as welfare? Businesses supply much of the taxes to governments so that they can continue to operate. If they’re taxed past the point where their firms no longer are profitable, they close up shop and more folks are suddenly unemployed. It’s like killing the goose that laid the golden eggs. Kill her for supper and you have no more gold.
People would also lose hope and incentive to better themselves if everybody made the same amount of money. Since wealth isn’t finite and can be multiplied, people have the urge to climb the corporate ladder to gain a better life. Because socialism is based on greed and intolerance of the well-off, it robs people of incentive to improve their lot in life through honest hard work.
By simple logic alone, we can see that having wealthy consumers and business people actually benefits everybody. These citizens create employment not only in their own countries but overseas. Look at how countries like India are booming economically because of investment. Even though China is a communist country, behold the economic miracle wrought by their adoption of free market principles. Even Vietnam and Cuba are seeing the benefits of free enterprise and are now reaping the rewards of it. So why reproduce the same failures of socialism which other countries have experienced?
Self-publishing my three memoirs has taught me much about free market principles. I have my first two books for sale at the Bruce Atchison’s books link. My most recent paperback and e-book are available from Amazon, Barnes & Noble, and Virtual Bookworm Publishers.