Tuesday, November 4, 2008

Distributism & Taxes

I continue to be impressed by the perspectives and ideas offered by John Medaille over at The Distributist Review. In a recent post titled Comrade Buchanan, he offers some really interesting observations about how the American economy works, particularly with regard to taxes. I'm not saying I agree 100% with everything he says, but I really enjoy reading it.

This particular post is shorter than what he usually writes, and well worth checking out. A few quotes to whet you appetite:

"..when incomes accumulate at the top to an unreasonable degree, there is a failure of demand. A CEO may make 500 times what the line worker makes, but he cannot eat 500 times the amount of food, wear 500 times the shirts, shoes, and socks, live in a home 500 times larger, etc. This means that purchasing power is lost to the economy, and must be restored."

"In truth, the federal budget is mainly about transferring wealth. However, it is largely a transfer of wealth from the bottom and the middle to the top. Farm subsidies penalize the city at the expense of the country, the military budget is less about defense and more about enriching people like Cheney, the road subsidies give an advantage to suburban homeowners over city dwellers, etc."

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