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| An evenly divided financial pie mosaic. |
By Nate Kloepfer
We all have a desire to help our neighbor, but are wealth
redistribution welfare policies the right way to do it?
In many countries today, prosperity and wealth have reached
unprecedented levels. However, there are still many who have not reaped the
benefits of our modern-day levels of prosperity. Many are still struggling each
day to make ends meet and to survive. A large question arises: why are there
still poor individuals in this age of wealth and prosperity?
It is a good and natural feeling to want to help those who
are economically less fortunate. These are the emotions that motivate some to
propose and implement government intervention in the economy, such as
progressive tax rates and generous welfare benefits. But do these policies fix
the wealth disparity in the nation, or are they just a quick fix with long-term
negative consequences?
Here lies the tension between the ideologies of laissez-faire economics and interventionist economics that can be traced back to the 19th century. Unlike leading to the prosperity of all, the wealth redistribution policies of progressive taxation and large government benefits lead to economic stagnation and collapse.
