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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