Income Inequality Morally Wrong?

In President Obama’s latest speech, he promised to place all of his efforts on building, supporting, growing, helping, whatever, the “middle class.” The problem is that this president doesn’t understand how the “middle class” becomes a middle class. A quick side note: we fought to end a class system so I like to call it the “opportunity class.” But that aside, let’s look at why we in the US have more people in a position to live a comfortable life.

We are the only nation in the world that was founded on economic freedom. Individuals that created things, provided services, and followed their dreams and desires were able to interact with others without being encumbered by government. Throughout most of our early history we had what was often referred to as “Laissez Faire” economic policy. Basically, people could trade and barter between each other to create wealth. This economic freedom is the reason so many Americans had the opportunity to live a productive life rather than a life of subsistence as was, and still is, the way of most of the rest of the world.

Economic freedom within the rule of law is the reason we have an opportunity class. The people that created stuff needed people to work for them. The people working for them learned trades and craft and often went out and started something of their own to create more wealth. Millions of economic transactions between people without the meddling of government allowed for wealth to be created and therefore an opportunity class formed. It is not a stagnant class of people. People move in and out of the opportunity class.

Some people move to an ownership opportunity and amass wealth that enables them to live an even more comfortable existence often supporting charities and people who are less fortunate. Other people of the opportunity class squander their wealth and have to start over because of bad choices or circumstances. But the main point is people working in this free environment have an incentive to keep trying in order to move up or stay put.

When this president talks about a “middle class” what he sees is a class of people that are victims of circumstance. They take jobs and their opportunity is determined by some “rich capitalist.” He comes from a school that subscribes to people needing the help of government to succeed. Without the government to take the wealth created by others, these people would starve or remain in poverty. This system and this president don’t believe in the people to take care of themselves even though it is the reason we are so wealthy. So when he talks about growing the middle what he means is that by taking from the opportunity class is the only way to make it fair. To this president re-distributing income is how you grow the middle and punish those greedy capitalists. That is the exact formula for destroying opportunity for the most people.

It is why we continue after 5 years of this policy to see poverty rise and opportunity diminish. So the question to this president is how is income equality fair? Why keep growing government when what we need is more economic freedom? Government is a necessary evil. The people in government are not necessarily evil, but the function of government always ends up spreading evil. Poverty, ignorance, hunger, homelessness are the result of government intrusion in our economy. Making everyone equal in poverty is immoral…

Building the Economy “from the middle out”?

If you are confused by the title of this post, don’t feel bad, you should be. It is the most recent statement on economic policy by President Obama. A President that has next to nil experience in the private economy of the United States, not even a lemonade stand. He is an agitator, and a very good one. He agitates many Americans with statements like this.

Let’s look at and analyze the suggestion of “building the economy from the middle out, not the top down.” If you look at this statement from a purely political perspective, he is attempting to divide Americans by class and agitate people to blame the “top.” The top being the “rich”, the rich being the people that create the jobs. This president has no problem with the rich that donate to his campaign, and the rich people he gives our tax dollars to for businesses he supports, like solar companies, but the rest of the “rich” he despises. The people that actually create jobs from the “top down.”

“Top down” job creation is actually not top down; it is from “nothing to something” job creation. It is people that take an idea and put it into action which attracts customers to purchase that idea, and then it grows, and the person that started from nothing has something that they need help to keep growing. Whew! Did you follow that? That is where the person that took “nothing to something” now hires people and like magic you have job creation. These people are to be celebrated, not demonized or ignored as the president wants to do in his newest transformation as a job creator from “the middle out.” Creating jobs from the middle out?

How do you create a job from the middle out? In the real world the only way that happens is that a worker leaves the current company they work at and start their own company. If the person from the “middle class” steps from that job to take the risk of opening a business, they have now become the “top down.” They are the owner, entrepreneur, CEO, sole proprietor, etc…, and no longer are in the middle. Starting a business puts you at the top. That’s how I see it and how any sound business person would interpret the President’s message of “middle out”. But we would be wrong!

What the president is suggesting is that we need to grow the “middle” without the “middle” stepping out and creating new companies. He is saying that the government must “invest” (tax dollar confiscation from the “top”) to add people in the “middle” without the “top” creating new jobs. The only way you can do that is to transfer wealth from some other source. There are two choices: the taxpayer and the “top.” Both of these choices creates nothing new and destroys the wealth creation you already have. The pie doesn’t grow it just gets sliced up in a different configuration. The pie actually gets smaller because the “top” leaves and finds a better country to do business or just stops doing business because they are punished for their success.

This is economics 101 and a class the President obviously failed or skipped to hang out with his fellow agitators at Harvard. Actually it is part of the left, liberal, social democratic plan to destroy the wealth of this nation and put government in control of a failing economy. It is all about power, envy, and contempt for our capitalist, constitutional republic. It is because the left despises freedom, free markets, and limited government intrusion in our lives.

This President is an economic genius for the political philosophy he embraces. He is a failure to the people that love and believe in this country. His term can’t end fast enough. I just hope our economy can absorb another three years of this president’s attempt to destroy it…