The Economy: Not a Zero-Sum Game

Thomas Sowell has a quality read in a recent column he wrote on the damaging affect that “taxing the rich” has on the whole nation, the little guy, and everyone in between.

“The idea that you can single out one segment of society to be taxed or mandated, for the benefit of the rest of society, is reminiscent of a San Francisco automobile dealer’s sign: “We cheat the other guy and pass the savings on to you.'”

“Moreover, like so much that is proposed under the magic mantra of “change,” it is something that has been tried before in many countries and failed before in many countries.

Much wealth from Third World countries flows out to richer countries like Switzerland or the United States, where it is safer from confiscation. Jack up the capital-gains tax rate in the U.S. and more Americans can be expected to send their capital elsewhere.

That means sending jobs elsewhere, so that even people with no capital to invest lose employment opportunities.”

In other words, even if you’re not wealthy enough to, say, start your own business, the loss of wealth overall means a loss of jobs and a harder time finding employment.

So much for “helping out” the little guy.