Income Inequality Needs a Government Fix?

Obama Snake OilA young Frenchman, not yet 30 as we recall, visited America for six months and wrote: “Democracy in America,” a classic today. It was published in 1835, Near its end, he predicted that the American government seemed likely to so protect an direct its citizens that it would ultimately infantilize them.

Today, middle class incomes decline in the face of increasing foreign and immigrant competition, the U.S. government has seized healthcare and is advancing its regulation to the internet. Little that we do goes unregulated anymore. For our good, of course. So why aren’t we dong better?

The Progressive political movement that has brought us this exploited the disruptions of the industrial revolution, the Civil War and the Great Depression to attain the political power needed to alleviate the socio-economic disruptions. These folk are compassionate! Rich too, most of them. But they care, just ask them …

These Progressives have been underway in the U.S. nearly two hundred years now. In the latter portion of that, pretty much in charge. So what have they wrought?

The American middle class is declining in income and in living standards, but for technological advances. It is returning to the proletariat from which it sprang. Simply put, this follows American labor’s overpricing itself via corrupt union/political log-rolling. When labor cost too much, cheaper foreign labor replaced it, domestically and abroad. American capital no longer able to earn a satisfactory return at home, was invested where labor was cheap. China, India, Mexico and others became American and European competitors. American production went offshore or to robots. Simple economics.

Now, the sirens who sold that originally are selling “Income Inequality.” We are being treated unfairly when foreign and robot competition reduces our incomes while investing abroad increases investors’ profits. We should elect the folk who brought us the original gimmick that has been so unfair to us. They will fix it by providing even more of the government corruption and intervention than we have seen. They will cure income inequality!

Government, not the market, should set incomes, right? That worked so well in the Soviet Union …

Out wastrel government can’t stop spending 20% – 30% more than it takes in, a bunch like that should decide our ‘fair’ incomes? When their policies have already been reducing Americans’ average earnings?

We don’t think so. We note that Democrats and Republicans have provided Progressive leadership (The first Progressive president was a Republican, the second, a Democrat).

Perhaps it’s time to start over …

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About Jack Curtis

Suspicious of government, doubtful of economics, fond of figure skating (but the off-ice part, not so much)
This entry was posted in Economics, Government, Politics and tagged , , . Bookmark the permalink.

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