A common and very dangerous misapprehension is that money is wealth. A moment's reflection should reveal the error of this way of thinking; just consider the Yen vs. the uS Dollar. Today, one uS Dollar is the same as 88 Yen, so is Japan 88 times as wealthy as the uS because they have 88 times as much money? Of course not. If we multiplied the number of uS Dollars by a factor of 88, would we be any richer? Well, whoever got the new money first would be, but as a whole, no.
Wealth is the goods you can buy with your labor, and the monetary unit is irrelevant in that respect. Zimbabwe is very poor because a day's labor will barely keep one alive for another day. The uS is relatively rich because a day's labor will feed a family of 4 for about a week. Goods are wealth, and the more excess of goods that are produced in a society vs. being consumed and destroyed, the wealthier that society can be.
Government produces no goods, because everything they have must first be taken from someone who produced that wealth. Government can only take and consume goods and so destroy wealth.
The so-called "Reforms" we are inundated with these days are nothing more than huge increases in the size of government, which as I said is a net destroyer of wealth in any society.
When it comes time to vote next year (if you are so inclined), remember that Bigger Government = More Poverty and vote accordingly.
Thursday, December 10, 2009
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