Equality Versus LibertyPosted: January 9, 2014
One percent owns 35 percent! So what?
John Stossel writes: President Barack Obama says income inequality is “dangerous … the defining challenge of our time.” The pope is upset that capitalism causes inequality. Progressives, facing the failures of Obamacare, are eager to change the subject to America’s “wealth gap.”
It’s true that today, the richest one percent of Americans own a third of America’s wealth. One percent owns 35 percent!
But I say, so what? Progressives in the media claim that the rich get richer at the expense of the poor.
But that’s a lie.
Hollywood sells the greedy-evil-capitalists-cheat-the-poor message with movies like Martin Scorsese’s new film, “The Wolf of Wall Street,” which portrays stock sellers as sex-crazed criminals. Years before, Oliver Stone’s “Wall Street” created a creepy financier, Gordon Gekko, played by Michael Douglas, who smugly gloated, “It’s a zero-sum game. Somebody wins; somebody loses.”
This is how the left sees the market: a zero-sum game. If someone makes money, he took it from everyone else. The more the rich have, the less others have. It’s as if the economy is a pie that’s already on the table, waiting to be carved. The bigger the piece the rich take, the less that’s left for everyone else. The economy is just a fight over who gets how much.
But this is absurd. Bill Gates took a huge slice of pie, but he didn’t take it from me. By starting Microsoft, he baked millions of new pies. He made the rest of the world richer, too. Entrepreneurs create things.
Over the past few decades, the difference in wealth between the rich and poor has grown. This makes people uncomfortable. But why is it a problem if the poor didn’t get poorer?
Progressives claim they did. Some cite government data that show middle class incomes remaining relatively stagnant. But this data is misleading, too. It leaves out all government handouts, like rent subsidies and food stamps. It leaves out benefits like company-funded health insurance and pensions, which make up increasing portions of people’s pay.
And it leaves out the innovation that makes life better for both the rich and poor. Even poor people today have access to cars, food, health care, entertainment and technology that rich people lusted for a few decades ago. Ninety percent of Americans living “below the poverty line” have smart phones, cable TV and cars. Seventy percent own two cars.
But hold on, says the left. Even if the poor reap some benefits from capitalism, it’s just not “fair” that rich people have so much more. I suppose this is true. But what exactly is “fair”?
John Stossel (read his Reason archive) is the host of Stossel, which airs Thursdays on the FOX Business Network at 9 pm ET and is rebroadcast on Saturdays and Sundays at 9pm & midnight ET. Go here for more info.
- John Stossel on Equality Versus Liberty (reason.com)
- If You Really Care About Ending Poverty, Stop Talking About Inequality (theatlantic.com)
- More questions for redistributionists (triblive.com)
- The Rich Are Getting Richer, And The Poor Are Getting Richer Too (sayanythingblog.com)
- [VIDEO] Are the Poor Getting Poorer? (punditfromanotherplanet.com)
- Rising tides and drowning citizens (japantimes.co.jp)
- STOSSEL: Equality versus liberty (rare.us)