Sunday, November 9, 2008

Krugman’s prize (2)

Following the post "Krugman’s prize", the Robert Samuelson article on Real Clear Politics "Poor Aren't Poor Because Rich Are Rich":
By and large, the poor aren't poor because the rich are rich. They're usually poor for their own reasons: family breakdown, low skills, destructive personal habits and plain bad luck.

The presumption implicit in the criticism of growing economic inequality is that society's income is a given and, if the rich have less, others will have more.
The larger truth is that much of the income of the rich and well-to-do comes from what they do. If they stop doing it, then the income and wealth vanish. No one gets it. It can't be redistributed because it doesn't exist. Everyone's poorer.

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