Worried about Inequality? Then Focus on Helping the Poor, not Punishing the Rich

June 2, 2014

Privatized retirement accounts are such a sensible idea. No wonder Washington won’t agree to them. :/

International Liberty

I haven’t spent much time writing about Thomas Piketty’s inequality book for the simple reason that my goal is economic liberty, not equality.

That being said, I think that Piketty is fundamentally misguided even if the goal is helping the poor. Simply stated, long-run growth is the best way of reducing poverty and boosting living standards. Piketty, by contrast, focuses on redistribution – even though this would require punitive taxation, thus undermining growth and hurting the less fortunate.

This is very obvious when we look at economic performance in market-oriented nations and compare it to economic performance in countries where government plays a bigger role.

Most recently, I showed how Poland is out-pacing Ukraine.

I’ve compared South Korea and North Korea.

The data for Chile, Argentina, and Venezuela is very powerful.

I’ve shown how Singapore has eclipsed Jamaica.

And we can see that Hong Kong…

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(Video) Hitler and Chamberlain, Putin and Obama

June 2, 2014

Obama as Chamberlain

(Photo via Israel Matzav)

I’ve been saying for years, almost since the Jihadi War began, that the state of international relations gives me a “1930s vibe,” a feeling that we may be on a path toward another World War. That feeling has come and gone as the years passed, as I’m sure it did for those living in the 30s, but it’s never quite gone away. In fact, Russia’s predatory moves toward Ukraine have brought that feeling roaring back, the parallels being striking.

Bill Whittle has noticed the same trends and, in this video for Truth Revolt, compares a lion, a bear, and two lambs:

But it’s not Russia that worries me most, unless it’s in combination with other powers. Russia is a dying state, its demographic trends signalling serious future decline. Its military, outside of special elite units, just isn’t all that good, and, while they’ve made steps to rebuild, they’re still  a long way off. (They had trouble mobilizing the limited forces they used to assault Georgia in 2008.) Their economy is far too dependent on natural resources, especially oil, but Russian oil is notoriously expensive to extract. Fracking technology in the West promises to cut the legs out from under Putin and his successors as it drives the price of oil and gas down, making Russia’s less marketable.

China concerns me more: a rising power with a strong hyper-nationalist faction, an aggressive foreign policy, and a strong sense of (as Bill notes about Russia) historical grievance. Some incident in the South or East China Seas could easily be the spark for a major conflagration.

And then there’s Iran: a fascist theocracy that has promised to destroy Israel and is desperately seeking its own nuclear weapons to do just that.

We face a bear, a dragon, and a lion, while we are lead by lambs.

Yep. I have a bad feeling about this.

(Crossposted at Sister Toldjah)