Capitalism and the Common Man :: Economy Economics Essays

Capitalism and the Common Man There are some arguments, having a faint measure of plausibility, that have served politicians, charlatans and assorted do-gooders for well for over a century in their quest for control. One of those arguments is: capitalism primarily benefits the rich and not the common man. That vision prompts declarations such as: Congressman Richard Gephart's assertion that high income earners are "winners" in "the lottery of life." Then there's, Robert Reich, former Secretary of Labor, who says high income earners the "fortunate fifth." These nonsensical visions lead to calls for those who've been "blessed" to "give back" either voluntarily or coercively through the tax code. While demagogic statements like these have high emotive worth, they reflect resolute, near incurable stupidity about the sources of income. Listening to some of the talk about income differences, one would think that out there somewhere is a pile of money. People who are wealthy just happened to get there first and greedily took an unfair share. Justice requires that they "give back." Or, there's talk about income distribution. The way some people talk, unequal distribution of income means that there is a dealer of dollars who shells out $1,000 to one person, $100,000 to another and a million dollars to yet another. Thus, the reason why some people are wealthy while others are not wealthy is that the dollar dealer is a racist, sexist, a multi-nationalist, or just plain mean. Economic justice requires a re-dealing of the dollars, income redistribution, where the ill-gotten gains of the few are returned to their rightful owners. In a free society, for the most part, people with high incomes have demonstrated extraordinary ability to produce valuable services for, and therefore please their fellow man. Sam Walton, founder of Walmart, Bill Gates, founder of Microsoft, and singer Michael Jackson provided services deemed highly valuable by their fellow men who voluntarily took money out of their pockets to purchase those services. Their high incomes stand as unambiguous proof of that service. Their high incomes also reflect the democracy of the market place. For example, millions upon millions of independent decision makers decided to fork over $200 or $300 for Microsoft founder Bill Gates' "Windows 98" operating system. Those who think Bill Gates is too rich, and want to redistribute his income, are really registering disagreement with the democracy of the market place and want to cancel or offset the market "vote.