Thursday, July 23, 2009

Compassion vs. Economics

I keep hearing the proposition that if American worker bees paid much higher taxes, then we could finally wipe out hunger and poverty in America, and what stands in the way of helping poor people is the selfishness of taxpayers.

The problem with that simplistic notion, just like anything else in life, is that there are causes and effects in economics. When all the worker bees and businesses are taxed at a high level (higher than the competing countries), it only suppresses the whole economic system. Instead of creating comfort and prosperity, you create unemployment, more poverty and more desperation than ever, and finally a tremendous falling-away of governmental revenues and a falling-away of charitable enterprises.

Look at other countries, even compare states within the U.S, for instance, Texas and California: Texas is a very business-friendly state, and 80% of America's job growth was in Texas last year. California, which is a difficult expensive state for businesses, can't seem to lose businesses, jobs, and residents fast enough.

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