Taxes And Regulations Generate Poverty
Taxes and regulations generate poverty.
The road out of poverty is the ability to sell a product or service – including your own labor. Anything that makes it more difficult to sell a product or service creates additional poverty. Taxes and regulations make it more difficult to sell a product or service.
The government – at all levels – put into place taxes and regulations that make it more difficult to sell a product or service. Often these taxes and regulations are sold to the public as being for their benefit when the truth is that the taxes and regulations are for the benefit of incumbent businesses – because the taxes and regulations reduce or eliminate potential competition. Cities that regulate Uber and Lyft in such a manner that the people participating in those business models cannot offer their services in those cities is an example of taxes and regulations protecting the existing taxi businesses at the expense of the many.
The United States has 95 million people of working age that are not working – yet we have cities, counties, states and the Federal government with taxes and regulations that protect the few at the expense of the many. They protect the few by using taxes and regulations to create an artificially high bar to engage in business. Services as simple as braiding or cutting hair are typically highly regulated – when they should be among the easiest and least expensive businesses for someone to enter into.
The minimum wage is one of the most pervasive and destructive ways that government creates poverty. In effect the minimum wage is nothing more than government telling people that if their skills are insufficient to generate a government-determined level of productivity then they are not allowed to work. If someone is willing to work for $5 an hour in order to acquire a skill it is illegal. Let that sink in.
Our absurdity is people arguing for more taxes, more regulations, more minimum wage – then complaining about poverty.
What you tax you get less of, what you subsidize you get more of. If you tax growing apples but subsidize people to grow peaches you will get fewer apples and more peaches. No rational person disputes the obviousness of that. We tax and regulate the means of reducing poverty and then subsidize creating poverty – then moan that we have more poverty. This whole thing is so consumed with obtuseness that people actually assume – and argue violently – the government should be paying businesses (whom they already protect with taxes and regulations) in order to subsidize more poverty. See healthcare as a prime example of that obtuseness and we will not even delve into monetary policy today.
The end result of this tax-and-regulate regime is the few businesses – usually political connected – get gifted with wealth while the many get a few crumbs to keep them from breaking out the guillotines. Somehow this has evolved to the many demanding more and bigger crumbs and not to them demanding an end to the system that prohibits them from engaging on equal terms. Many people clamor for politicians that promise bigger and better crumbs rather than demanding the equality of laissez-faire. In fact, the historically illiterate will continually argue against the wealth disparity of laissez-faire while utterly ignoring that the current system has produced wealth inequality that would make the Tsar blush – unparalleled in history.
Sometimes societies just collectively go insane.