Wealth Does Not Come From the Wealth Faeries

posted at 9:46 am on July 5, 2010 by Jimmie Bise, Jr

After reading (or watching) several comments from prominent progressives over the past couple days, I’ve been asking myself if they have any idea where wealth comes from. Notice I didn’t say “money” because, really, anything that can has value and can be traded is wealth though not all of it is money (for instance, you could make furniture and trade what you make for food or a car or what have you). Nancy Pelosi got the ball running with the ridiculous statement that the unemployment benefit program “creates jobs faster than almost any other initiative you can name”. Now, here’s Hillary Clinton musing on where we get economics wrong.

It’s important, too, that we look at how to promote broadly-based prosperity. One of the problems in societies around the world today is that too much of the productivity of the economies are going to too few. Too few people, the political and economic elite, are realizing the vast majority of benefits from economic activity.

Now, those of us who get the origin of wealth understand that prosperity only happens when people own the fruits of their labor. The principle that what you produce belongs to you and you have the absolute right to dispose of it as you wish is the cornerstone of all the wealth and wonders created in America for well over 230 years. If you noodle it through, you can easily figure out why this has so. Economic freedom is the first, and most important freedom we have. From it stems all the others (including the freedom of speech, which runs a very close second).

The reason the economic “elite” get the vast majority of benefits is because they produce the largest amount of the wealth. In other words, the man who works hard and builds a business building furniture, who has countless hours of time invested in that business, will realize a greater benefit from his investment than the man he hires to deliver the furniture to customers. That’s the way it is supposed to be. The business owner is withdrawing from the vast account of effort he has built up over the years. Why shouldn’t he benefit from his efforts more than someone who has not invested as much as he?

For most of our country’s history this has been a guiding principle of taxation and government spending. Legislators remembered that when they took your money, they were taking your time and your labor, and they considered each rise in tax and spending carefully. However, in the last 60 years or so the countervailing belief has taken over the Democratic Party and is taking hold in the Republican party as well. Here is that belief in a nutshell:

What you produce is not yours but rather goes into a vast pool of resources that must be apportioned out evenly by a handful of concerned experts, each of whom is compensated lavishly.

Do you see how egregious this belief really is? Do you see the eventual end of such a belief (hint: it ends with benign slavery)? Do you see how the well being of everyone in this country is threatened by such a belief?

Wealth does not simply appear from the thin air. It has to be created by human beings who act out of their own self-interest and have the freedom to create as much as they desire. That’s the only way it works. Without that freedom, wealth dries up and we end up like Zimbabwe.

(Cross-posted at The Sundries Shack)

This post was promoted from GreenRoom to HotAir.com.
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No, it comes from Obama. I’m gonna get me some of that Obama money. Any day now.

NotCoach on July 5, 2010 at 9:50 AM

Hillary is a progressive, I wouldn’t expect her to know how wealth is created.

wheelgun on July 5, 2010 at 9:52 AM

Let me see if I have this right, here. You are saying that Bernancke was somehow mistaken in his assertion that “The United States has a printing press that can produce all the dollars we need.” You are intimating that wealth represents individual effort and some sort of personal production. What a novel idea. That’s almost like saying we are individually responsible for our actions, or that the government isn’t responsible for our happiness. That’s just crazy talk. sarc/off

Sheesh…

Crusader Rabbit on July 5, 2010 at 9:55 AM

I don’t know if they “get it” or not. What I do know is that they don’t care.

mr.blacksheep on July 5, 2010 at 9:58 AM

Wealth comes from unicorns, duh.

Economic freedom is the first, and most important freedom we have. From it stems all the others (including the freedom of speech, which runs a very close second).

*bangs head against wall*

I tell my liberal friends this constantly. I explain it / argue it over and over and over again in as many different ways as I can think of. They just don’t get it. Of course, most of them work in academia and have never produced anything beyond a research paper. For them, wealth comes from the research grant fairy.

bitsy on July 5, 2010 at 10:01 AM

uh, duh, everybody knows it comes from “Obama’s stash”……

I wonder if that lady ever got her mortgage paid or her gas tank filled…….hopeandchange. indeed.

RealMc on July 5, 2010 at 10:01 AM

“It injects demand into the economy,” Pelosi said. “It creates jobs faster than almost any other initiative you can name.”
Unemployment benefits.

Electrongod on July 5, 2010 at 10:03 AM

Her wealth was created through the commodity trading someone else did on her behalf and a crooked land deal, oh, and her husband makes speeches while she preens in front of a camera. She, along with her fellow crooks, produce nothing and many have done this their whole adult life.

Kissmygrits on July 5, 2010 at 10:04 AM

and we end up like Zimbabwe.

RAAAAAAAAaaaaAAAACIST!!!11

bitsy on July 5, 2010 at 10:05 AM

Zimbabwe

The 51st State?

skatz51 on July 5, 2010 at 10:06 AM

“Benign slavery”? Let’s ask Stalin’s kulak’s how benign they found it.

Copperheads: slavery’s advocates, from the plantation to the collective.

SDN on July 5, 2010 at 10:06 AM

These pretenders running the show up there in DC are clueless to what wealth is. Since the Federal Reserve was established the U.S. Dollar has lost 92 per cent of its value. Given the recent overtime employees working at the U.S. Mint are putting in printing more of that Obama Money, I am at least comforted in the thought that we are going to have a good supply of toilet paper courtesy of President Sewer Mouth. Instead of looking for some a$$ to kick our fearless leader will have plenty of worthless paper to look for some a$$ to wipe.

devolvingtowardsidiocracy on July 5, 2010 at 10:06 AM

Zimbabwe

The 51st State?

skatz51 on July 5, 2010 at 10:06 AM

Nope. According to Dear Ruler, it would be 58th.

Scott P on July 5, 2010 at 10:16 AM

I want my Obama money!!

Hey, there goes a unicorn!! Wait… WAIT!!!

Khun Joe on July 5, 2010 at 10:19 AM

What’s tragic is that people really don’t have to work all that hard to have it pretty good in this country.

Pay attention in school, work reasonably hard, don’t be a goof off and you’ll do fine.

People like Clinton and Obama have no idea what life is really like in this country. We are ruled by air-headed aristocrats.

NoDonkey on July 5, 2010 at 10:22 AM

Zogby did a poll recently on political ideology and economic understanding. Surprise, surprise…liberals failed. Big time. They don’t even understand grade-school economics. It’s just knee-jerk to “I want it and I need it, so I should have it…even if I don’t work for it.”

I’m with many pundits: this November’s election may make or break this nation–financially, if nothing else.

Grace_is_sufficient on July 5, 2010 at 10:30 AM

Everytime I see and hear “The Won” I see Mugabe with his fist in the air. OKenyan is making us a banana republic with lower than third world status. His treachery much be stopped.

wepeople on July 5, 2010 at 10:48 AM

But… Obama said: “When you spread the wealth, everyone benefits”.

How can the “One” be wrong?

scotash on July 5, 2010 at 10:57 AM

What these idiots fail to see or to acknowledge if they do is that America has created more wealth for more people all over the world than any other country in history.

Poverty and the meanest of existences, slavery and serfdom were the norm for nearly every person born throughout history until the founders of this great country declared that an individual is free, owning his body and whatever he produces using his time and talents.

These elites, living large off wealth pilfered by force of government will be the death of this country yet.

Jvette on July 5, 2010 at 11:00 AM

and we end up like Zimbabwe.

Gee, I thought Obama’s objective was that we end up like Kenya.

pilamaye on July 5, 2010 at 11:12 AM

What you produce is not yours but rather goes into a vast pool of resources that must be apportioned out evenly by a handful of concerned experts, each of whom is compensated lavishly.

P.J O’Rourke paraphrased M. Friedman’s statement on four ways to spend money in his book “All the Trouble in the World”:

1. You spend your money on yourself. You’re motivated to get the thing you want most at the best price. This is the way middle-aged men haggle with Porsche dealers.

2. You spend your money on other people. You still want a bargain, but you’re less interested in pleasing the recipient of your largess. This is why children get underwear at Christmas.

3. You spend other people’s money on yourself. You get what you want but price no longer matters.

4. You spend other people’s money on other people. How your Government works and in that case, who gives a sh*t?

Uniblogger on July 5, 2010 at 11:19 AM

Hillary is a progressive, I wouldn’t expect her to know how wealth is created.

wheelgun on July 5, 2010 at 9:52 AM

HHHMMM considering she and Bill are wealthy that makes no sense.

Progressives make their wealth off of others and in corrupt ways and are a selective few. They just don’t want others to have wealth. They must be wealthy to sta in power, but want to limit that power to themselves not the citizens. That is the difference.

xler8bmw on July 5, 2010 at 11:32 AM

Abandon wisdom and suffer folly. That is what the left has brought us too.

chemman on July 5, 2010 at 11:33 AM

Great post, Jimmie. The other thing that grates me is the jobs “created or saved” by his majesty. These are government jobs. While some gov’t jobs are essential, gov’t jobs do not create wealth—they burn it. The more businesses and individuals “work” for the Gov’t, tho’ not actually as employees, but to comply with mandates and regs and pay taxes and fees, the less wealth that is created… why socialism can’t work.

Whew! had to get that off my drawing pad!

cartooner on July 5, 2010 at 11:40 AM

Capitalism: I deserve the reward for my investment.

Socialism: I deserve the reward from your investments, too.

beatcanvas on July 5, 2010 at 11:41 AM

Government Jobs are created to employ college grads. Without them there would be such a glut of un-employed college grads, that colleges would have to close. Scratch my back and I’ll scratch yours.

BruceB on July 5, 2010 at 12:12 PM

It’s not just Hillary and Nan who sound clueless. Most of the Dems on the Hill, while some might actually get it, see more value in spending our money on their votes. obama too.

jeanie on July 5, 2010 at 12:13 PM

Atlas Shrugged should be required reading for all high school students. Followed up with an essay about what they understand the book to mean. The resulting grade from the essay should be one half of their yearly grade.

ButterflyDragon on July 5, 2010 at 12:16 PM

I hope children get a bitter taste from the experience of bringing the nice new fresh box of Crayolas to school, to be dumped into the collective bin of broken and dirty crayons.

gooddad on July 5, 2010 at 12:20 PM

Why you crackers be always hatin om my Marxist bros from Zimbabwe? Those boys done got their politics down to a sweet system!

Ogabe on July 5, 2010 at 12:24 PM

Economic illiteracy is destroying America.

single stack on July 5, 2010 at 12:29 PM

Seems like the underlying video has now been blocked by youtube!

It now puts out a message that it is a ‘private video’.

What is google/youtube trying to cover up now?

Freddy on July 5, 2010 at 1:09 PM

and we end up like Zimbabwe.

Gee, I thought Obama’s objective was that we end up like Kenya.

pilamaye on July 5, 2010 at 11:12 AM

Both.

baldilocks on July 5, 2010 at 2:07 PM

Don’t be silly, of course it does. My parents told me so. You’re just like this other guy I know who’s always saying ridiculous things like “Santa Claus isn’t real,” “The Easter bunny is made up,” “The tooth fairy is just a sham”, and that my invisible friend is “just a figment of your imagination.”

RINO in Name Only on July 5, 2010 at 2:36 PM

The reason the economic “elite” get the vast majority of benefits is because they produce the largest amount of the wealth.

In some cases they get it from having close connections to those in government, those getting rich off ‘green jobs’ come to mind.

agmartin on July 5, 2010 at 2:56 PM

Money is printed on paper.

Paper is made from tree pulp.

Therefore, money comes from trees and so does all wealth!

See?

Simple Leftist economics… and now they don’t want folks to cut down trees, the silly twits. Where will we get the wealth from without chopping them down for paper?

ajacksonian on July 5, 2010 at 3:41 PM

That gorilla in a suit should have gone extinct long ago.

Dark-Star on July 5, 2010 at 4:15 PM

Obama: The African Colonial.

The African colonial (AC) is a person who by means of their birth or lineage has a direct connection with Africa. However, unlike Africans like me, their worldviews have been largely shaped not by the indigenous beliefs of a specific African tribe but by the ideals of the European imperialism that overwhelmed and dominated Africa during the colonial period. AC’s have no real regard for their specific African traditions or histories. AC’s use aspects of their African culture as one would use pieces of costume jewelry: things of little or no value that can be thoughtlessly discarded when they become a negative distraction, or used on a whim to decorate oneself in order to seem exotic. (Hint: Obama’s Muslim heritage).

Inanemergencydial on July 5, 2010 at 4:42 PM

Zimbabwe

The 51st 58th State?

skatz51 on July 5, 2010 at 10:06 AM

fify

TheSitRep on July 5, 2010 at 5:02 PM

didn’t the wealth fairy sing at Rush’s wedding?

Renee on July 5, 2010 at 6:41 PM