Why I am leaving the US...

[Rath]

TheRealMafoo said:

theprof00 said:

mafoo, i just have one question...well maybe several

If a rich guy buys an imported car, how does that help everyone, more than say, a hundred thousand people buying a gallon of milk?

Sorry I did not respond to this, this morning. I had to go to work.

First off, that's not how it works. You take money from the rich, they still buy a sports car. What they don't do, is invest in companies. What would be better, is if that money went to a business and created jobs, so a hundred thousand people could buy milk every week, and not just once.

The world runs of effort. The collective quality of life of an area is directly related to the total amount of effort produced. If you take it to the extreme, and everyone stopped producing effort (just laid down right where they are), everything in the world would stop. There would be no food, no electricity, no running water, no products, nothing. Everyone would die, and the world would he as if humans never existed.

The world runs on effort. If you want to improve the quality of life, you need to maximize the quantity of effort while protecting peoples human rights. This is the perfect world.

Redistribution of wealth hurts in two ways. It de-incentivize's the rich to invest in effort, and it de-incentivize's the poor to produce any effort at all.

So in your example, the best solution is to create a world where the money to buy those 100,000 gallons of milk, was earned though effort, because of the improved collective quality of life that effort would have produced. (better roads, cleaner buildings, improved feelings of self worth, etc...)

This is why when you redistribute wealth, everyone loses, not just the rich. 

Re-distribution of wealth doesn't disincentivize the rich unless taken to an extreme. The rich still earn far more than the poor - and indeed are still the rich - under progressive taxating systems. It can disincentivize the poor who are getting welfare but in my opinion it is required in order to protect what I consider their human rights - shelter, food, education, healthcare and security. People living on the streets generally don't get enough of any of those.

If your hypothesis was correct the countries with the most progressive taxation systems would have huge problems with effort and therefore have a lower GDP per capita, which countries like Norway don't.