We Desperately Need More Income Inequality


President Obama has come out against income inequality. But in my opinion, not only is income inequality a good thing, but we need more of it.

Let's begin by examining how wealth is created.

According to liberals, it is through government spending. But when government takes money, gives it to a bunch of government employees who produce nothing, and then take a fraction of that and give it to other people, that's not production of wealth, that's redistribution of wealth. Redistribution creates nothing. If person T (Taxpayer) has $10, and person G (Government) takes the $10, keeps $3, and gives $7 to person IA (Illegal Alien, for example), there is still the same $10 in circulation, no more, no less.

Click here to see the rest of this article
Liberals can dress it up in fancy names. They can call it spending on "infrastructure", which in reality mostly goes to ongoing government operations. But it is not creation of wealth.

Now let's look at how the free market creates wealth. A businessman has money and wants to create a bread factory. He spends a million dollars to build this bread factory, which stimulates the businesses who produce the equipment he needs. When he's ready, the businessmen then hires 100 employees to bake the bread. These employees aren't paid huge salaries--the unskilled laborers are paid perhaps $40,000 a year, and the top supervisors are only paid $50,000 or $60,000 a year.

The factory is a success and within a year the businessman is making $400,000 a year in profits. Every year the businessman is making ten times the salaries of his employees. As profits goes up at the factory, he keeps $500,000 a year, but gives everyone raises so they are making at least $50,000 a year, and hires twenty additional employees. But still the income inequality goes up--before he was making $360,000 more than his lowest employee, and now he is making $450,000 more than his lowest employee.

The income inequality is getting greater in this example, and yet the employees are also getting better off. To start with, many of these employees didn't have jobs before they were hired. Even though the businessman is getting a disproportionate percentage of the profits (which is legitimate, since he spent a million dollars to build the business) he lifted 100 people out of poverty and gave them the means to support themselves and their families. When profits went up, the businessman is making a greater percentage of the profits but everyone else gets a raise too, and he has to hire more people to keep up with production.

So a necessary byproduct of wealth creation and income inequality is that wealth is spread out among more and more people in order to create more wealth. It doesn't matter that wealth is getting more concentrated, because in order to create the wealth more and more people need to be given money to increase the company's output and profits. In fact, without the incentive for greater profits (and greater income inequality) for the businessman, he has no incentive to expand the business and hire more workers.

That's why income inequality is vital to spreading wealth to others. If you're concerned for the well being of the "middle class" (a marxist term), you're not going to take the temperature of their economic health by looking at the gap in income between the employers and the employees. The more proper measure is what is the income and economic well being of the middle class, and how does it compare to years past? By all measures (income and material possessions) the middle class is much better off than it was 30 years ago.

That's why agitating against concentration of wealth isn't useful. If anything, in a free market system it's a sign of the opposite, that wealth is being created, and that more and more are benefitting from it.



Related articles:
In Blow to Consumers, Limit On Debit Card Fees Upheld

Oxfam says the richest 1% control more than half the world's wealth

Will taxing big banks really help the middle class?








Mark Levin's Challenge to Conservatives


Influential talk show host Mark Levin has called on constitutional conservatives to come up with a way to appeal to young people. Levin said it is not enough to make intellectual arguments for conservatism and constitutionalism, we must come up with a way to reach young people that has emotional impact. I'd like to step up to the challenge, using nearly the same buzzwords that the Left has programmed young people to respond to, like "privacy", "equality", and "investing in the future".
CONTINUE READING




RINO Republicans Mining Dr. McCoy for Surrender Lines


RINO Republicans Mining Dr. McCoy for Surrender Lines
CONTINUE READING Related articles:
A Tale of Two Senators (1 D, 1 R)

Not From The Onion: Eric Cantor Lectures On How to Win Elections

Good news! GOP Govs to Be 'Pragmatic,' says NYT



Let's designate Liberal Cities as "Protected Wilderness"


By now everyone has heard of President Obama's plan to further limit drilling for oil in Alaska. He says it's to protect a laundry list of animals liberals neither know or care about. As Mark Levin notes, he just wants to continue deindustrializing America.
CONTINUE READING Related articles:
Bill Gates wants you to drink toilet water

Which are more important, farmers, or a fish?

Efforts being made to save unendangered forests from imaginary global warming



The civil rights movement is now about denying people civil rights



CONTINUE READING Related articles:
New liberal theory: whites have "unconscious" racism

Income gap between whites and blacks widen

Republicans recruit minority candidates with just one tiny problem



Rich People Upset About Being Rich


The LA Times reports that wealthy people are upset about income inequality.
CONTINUE READING

The Earth will be destroyed in 3 minutes



CONTINUE READING Related articles:
US Senate declares that the weather does change

West Virginia decides to teach global warming propaganda to kids

Libtards at 538.com falsely claim aircraft produce 2.5% of global CO2 emissions



Government spends $432,000 studying gay sex apps


The federal government spent $432,000 to study gay sex apps. I never knew that gay sex even required an app; I always thought two guys, a tub of vaseline, and a big bottle of tequila was all that was needed. But apparently,
CONTINUE READING Related articles:
What Will Come Next After Gay Marriage?

Jeb Bush turns the wrong cheek on gay marriage

Firefighters forced to participate in gay parade



Jorge Ramos, my Hero!


The liberal media tells us that every ethnic group has its own issues based on their ethnicity. There are Black issues for Black people, Native American issues for Native Americans, and of course, Latino issues for Latinos. If you're born into a particular ethnic group, you have certain positions and needs distinct from other groups. There is no such thing as an individual view on taxes or war or welfare or immigration; If you're Latino, you have a Latino view of taxes, if you're Black, you have the Black view on high-speed rail; and if you're Native American, you must have the Native American view on quantitative easing at the Federal Reserve, and so on.
CONTINUE READING Related articles:
Newspaper in trouble for calling Illegal Immigrants Illegal Immigrants

Why 26 Republicans don't want DREAMers to wake up

Mexican President praises Obama for letting illegals in



US Senate declares that the weather does change


The US Senate has voted almost unanimously (98-1) that climate change is real. What a relief! I thought the change of weather between July and January might be an illusion. Or simply a giant, uncoordinated global error involving all the thermometers in the world. The climate actually changes! Who knew? The Senate should stop passing laws, and become an oracle and answer the most inscrutable questions like these!
CONTINUE READING Related articles:
West Virginia decides to teach global warming propaganda to kids

Libtards at 538.com falsely claim aircraft produce 2.5% of global CO2 emissions

Carbon dioxide emissions help tropical rainforests grow faster



In Blow to Consumers, Limit On Debit Card Fees Upheld



CONTINUE READING Related articles:
Oxfam says the richest 1% control more than half the world's wealth

Will taxing big banks really help the middle class?

Govt spending $28,000 per household




Next Page





Search Topic Areas
o Donald Trump
o Best articles
o Abortion
o Economy
o Education
o Environment
o Hairy feminists
o Gay agenda
o Gun control
o Illegal aliens
o Pop culture
o Radical islam
o Republicans
o Reverse Racism
o Ted Cruz
o Transvestite agenda




NewsMachete.com Copyright 2015
Feedback


Who is NewsMachete?

Privacy policy
Search Topic Areas
o Donald Trump
o Best articles
o Abortion
o Economy
o Education
o Environment
o Hairy feminists
o Gay agenda
o Gun control
o Illegal aliens
o Pop culture
o Radical islam
o Republicans
o Reverse Racism
o Ted Cruz
o Transvestite agenda