Monday, January 25, 2010

Article Response #6


I think the thing that gets me is the lack of desire to understand the CAUSE of whatever income gap might exist. There appears to be an assumption that this is the natural order of things in an open, free market and since there is a lack of rules about such things, it continues to propagate. Thus, the conclusion reached from such an assumption is that rules are needed. And this is exactly where Ashley goes, ignoring the cause and jumping straight to 'there ought to be a law', "The point of the story is not to get hung up on the past, rather, it's to look forward to the types of legislation that could prevent another economic collapse..."

Consider the possibility that another regulatory law won't fix the problem and that perhaps the cause of the income gap is primarily corporatism. That some, with connections, are able to gain by influencing laws, rules, regulations, and mandates toward their benefit. Those of us with a philosophy of smaller, limited government view this as a tragic abuse of government to reach beyond its defined limit.  We believe that more often than not, the expansion of government into regulation of areas of personal and economic liberty lead to MORE problems, not less.

So again, consider that possibly, just maybe, the best, the best way to fix the inequity is to eliminate government favors for some at the expense of others. Eliminate subsidies, eliminate bailouts, eliminate tax breaks, credits, incentives, loopholes, and exemptions, eliminate excessive regulations required to enter the market, allow businesses that are poorly managed or that come under difficult times, or that are faced with a changing environment to deal with those problems on their own merits, and yes, allow them to fail if need be. It's better to let the phoenix to die and be reborn than to toss first twigs, then branches, then logs and entire trees to attempt to rekindle the flame. Eventually you'll find that while you've kept it from extinguishing, it's cost you the forest.

The core problem of this type of life support is that the two people that are benefiting are the poor being sustained by the hand of others, or the wealthy being given advantages. So who are being hurt the most by this setup? Those in the middle. Those who work day to day, spend time with their families and simply look to make each day slightly better than the last. Too well off to get handouts, still expected to pay taxes, but not wealthy enough to have excess. No wonder we have such an income gap.

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