Capitalism may be great at production, but theres a distribution problem. Sure, people have to be rewarded for what they do, but aren the top earners making disproportionate sums?
Socialists often say that they admire the ability of capitalism to produce, but wish for a ‘fairer’ more equitable distribution. However this assumes that it is possible to alter distribution without affecting production. In fact distribution and production can’t be separated. Any attempt by the government to change distribution results in a reduction in production. In the limit that wealth was distributed equally (communism), the wealth would soon simply melt away, reducing everyone to the poor-house (equally of course). To understand why distribution has to be unequal, carefully read the entries in this section. Wealth is a product of human ingenuity and human labor, it is not some concrete ‘thing’ sitting waiting to be distributed. People have to be free to utilize the fruits of their labor (property right) as an incentive to continue working. Resources have to concentrate in the hands of the people who can use them the most effectively to create things that fulfil people’s needs. P
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