Recession - Thank you America.

[Avinash_Tyagi]

Oh no doubt Happy that there is always poor and rich people, however the idea is to not let the gap between them become too large, because a large disparity can lead to discontent and a wave of protectionism, and that is where the government can play a role, and its not about stealing from the rich to make everyone the same, its about marginal utility of money, since the more money you have the less benefit you gain from that extra dollar, so take some of theose excess dollars and place them where the marginal utility will be greater, hence where the moeny will have a greater effect is what the role of taxing the rich more is supposed to do, the rich remain rich, but the poor aren't as badly off.

And yes people who are poor in today's society are living a better lifestyle then they were 40 years ago, but that's not the issue, how much worse is their lifestyle than those in the highest income brackets is the issue, because peple will vote their own self interest, and if they feel globalization hurts them they will vote in polticians who promote portectionism, even if that is a negative in the long run.

 

In addition if people are too poor they begin to scrimp on things like Healthcare which can become a problem for society as a whole, because their usage of free services like ER's or free clinics when they become very sick becomes an added cost, which can be avoided at much lower costs via subsidies for people to afford healthcare