Sunday, March 8, 2009

The white lie: "Wealth Redistribution"

A common theme among the staunchest Conservatives and GOP, is that President Obama and the Democrats are attempting to redistribute wealth by taxing the rich and giving to everyone else. But there is a white lie within their rhetoric.

When jobs are eliminated or shipped overseas to increase profit, companies reward their leadership with pay raises and bonuses, including stock compensation. Stock compensation encourages CEOs to make the company profitable, but at the expense of American employees.

If jobs are being redistributed for the benefit of the CEO's (and leadership's) pay, that is itself wealth redistribution. Yet those same Conservatives simply ignore this massive wealth distribution, and prefer to talk about letting free markets create winners and losers. This is code for letting the rich get richer and the middle class die.

By taxing the rich, we are able to create retraining programs and fund the re-education of those whose jobs were sent overseas or laid off. This is the back end of a market system that says that it's better to have winners and winners, instead of winners and losers.

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