Re: economic systems??

Daniel D. Worley (dan.worley@juno.com)
Sat, 21 Dec 1996 22:25:33 AST

Fred,

I find it very interesting indeed, that you are concerned about the
distribution wealth in this country to the point you would support
re-distribution of it through government confiscation and taxation from
the higher income few and give it away to the masses of the poor. At
least that is what I understood when I read your message.

An entire economic system based on those principles was tried for over
75 years in the USSR and it failed miserably. It was tried on a smaller
scale here in the US under various names such as the farm subsidy
programs and the "War on Poverty" and others. So far, all it has done is
increase the dependance of the poor on the government and destroy, or
severely damage a number of industries; among them the small, family
owned farm.

The market that caused all of these problems you speak of did not
exist; except in the hands of the US government at the end of WW-II.
That was because all during the war, the only market available was the
government...Remember, all production went into the war effort. The only
"farm" produce that was not under direct government control were the
individual "Victory Gardens" planted by individuals and small groups to
provide a few high quality veggees for their own consumption. In
returning to a "normal" market, the federal government felt it should do
something to set things right with the farmers and get the market going
again. And there were grave abuses going on at the time.

But the government response was the usual government over-reaction of
jumping in to control the market rather than seek out the abusers and
stop the abuse. From that simple beginning, the great farm programs you
speak so highly of, began.

The only successes I know of in that area are the enrichment of the
large food distribution corporations and the great agri-businesses. The
farm programs were written and devised to help the larger farm operators
the most and to discriminate against the smaller operators. Whether that
was the intent or not, is of little import today. It happened. And it
turned a nation of honest, hard working, farmers into a lot of broken men
with their hands out, or into factory workers because they lost their
land. The great farm failures of the 80so and 90so are nothing new. Nor
are they anywhere near as big as the farm failures that were seen 45 to
50 years ago. But you didn't hear as much about them then. Maybe the
difference in the size and scope of the mass media had something to do
with the difference in the way it was reported and how widespread it was
reported. I don't know.

I do know that every time the US government (and a lot of other
governments as well) has tried to "re-distribute" the wealth of the
nation, it has been a miserable failure.

Oh, and I don't consider a tax rate of 39% a Lowered Tax Burden.
Unless you tax everyone at that rate. I suppose it is a "Lowered burden"
when you consider that it was at 75% at one time. Are you willing to pay
75% of your income in taxes? Why not make it equal? Tax everybody at
10%. Or would you prefer to continue having over 20 % of the total work
force of the US not pay any tax?

--Dan in Sunny Puerto Rico--