Thursday, June 21, 2012

The Rich Are Valuable For All


When politicians expound class warfare to seek votes, by scapegoating the rich for economic ills, usually made worse by government meddling, they are misinforming the public.
The politicos are overlooking what economists call “consumer surplus” sometimes referred to as Marshallian surplus.” This is the gain consumers get because they’re able to buy something at a price that’s less than the highest price they would want to pay.
Importantly: If wealth is taxed by the government and redistributed, or even if wealth is given to charity, research shows less consumer benefits result, as normally occurs when the rich are left to their own activity. (See the Earl J. Weinreb NewsHole® comments.)


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