Dear Jaana Woiceshyn
Haskayne School of Business, University of Calgary, Canada
I absolutely agreed with you in your statement below:
But the solution to eradicating poverty is not “redistributing” wealth from the rich to the poor in an effort to narrow the income gap. The solution is to create more wealth. Slicing the pie in more equal pieces will not work; making a bigger pie will. The historical evidence backs up my claim. Government efforts to make incomes more equal through “redistribution”—such as minimum wage laws or progressive income taxation—have never worked to end poverty. They merely slice the same pie differently as opposed to making the pie bigger.
But absolutely disagreed with your statement below:
If President Obama and government leaders elsewhere truly wanted to end poverty and provide opportunities for upward mobility to those earning low incomes, they would reduce and eventually end government interference in the economy. That would mean, for example, no minimum wage laws or other wage controls, no anti-trust laws, no employment laws dictating who to hire, and no income taxes, progressive or other
It is clear that, with the current rules for human coexistence, the government needs to intervene increasingly, but the real need for government intervention is in the fact that 3 sectors: agriculture, health and education cannot walk alone – The government needs to pump resources into these 3 sectors – something necessary, even if inefficient. Under the current rules, the reduction of government intervention in the economy would considerably increase the distance between poor and rich
Economic rulers must realize that “If all you ever do is all you´ve ever done, then all you’ll ever get is all you ever got.”
Jaana, the market competition that we are witnessing today is like an athletic race: some citizens, well fed and accessing health and education systems are far ahead; most of the others are left unjustly behind: the fair and decent minimum that can be done is to put them all on the same line of departure, giving equal opportunities at the beginning.