Thomas Dilorenzo makes Capitalism sound so simple. Maybe we should call it Thomas Dilorenzo's Capitalist Utopia. I do not have a problem with most of the things that Thomas Dilorenzo is talking about in the video. But here's my grip. Income inequality is very bad for business. What if 50% of the population has only 10% percent of all the income and the other 50 percent has the other 90% than you have a situation where half of your citizens are almost completly dependend on friends private charities family and the government. They cannot participate in the economic system in any kind of meaningful way that is unless someone else gives them the money to do so.
Capitalism is relatively simple. The hard part is fighting the temptation to mess with it because of temporary or imagined evils.
Your hypothetical apportionment of income ignores the relationship between income and providing value in Capitalism. Income is fluid, not static.
But even if we accept your numbers as an odd snapshot in time, at the very least, the poor half would still significantly influence lower cost markets. There's still a big motive to earn a buck from that 50% of the population.
Thomas Dilorenzo makes Capitalism sound so simple. Maybe we should call it Thomas Dilorenzo's Capitalist Utopia. I do not have a problem with most of the things that Thomas Dilorenzo is talking about in the video. But here's my grip. Income inequality is very bad for business. What if 50% of the population has only 10% percent of all the income and the other 50 percent has the other 90% than you have a situation where half of your citizens are almost completly dependend on friends private charities family and the government. They cannot participate in the economic system in any kind of meaningful way that is unless someone else gives them the money to do so.
ReplyDeleteCapitalism is relatively simple. The hard part is fighting the temptation to mess with it because of temporary or imagined evils.
DeleteYour hypothetical apportionment of income ignores the relationship between income and providing value in Capitalism. Income is fluid, not static.
But even if we accept your numbers as an odd snapshot in time, at the very least, the poor half would still significantly influence lower cost markets. There's still a big motive to earn a buck from that 50% of the population.