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No, if mandated redistribution was what got growth, countries with more redistribution would have more rapid growth. The opposite is the case. It is the profit
by CryptoPunk 6y ago
No, if mandated redistribution was what got growth, countries with more redistribution would have more rapid growth. The opposite is the case.
It is the profit-motivated investment that emerges when people are secure in their right to their private property that expands capital, and with it per capita productivity.
Increases in per capita productivity result in decreases in consumer prices, which translates to broad-based real wage increases as purchasing power increases. Through its effect on consumer prices, productivity growth distributes wealth more effectively than any other mechanism.
>>A simple counter example: despite having very low taxes, Ireland is not an economic powerhouse; just a hideaway for money.
Ireland was one of the poorest countries in Western Europe 40 years and has massively closed the gap with its peers since then.