December 8, 2012

The Collapse of the Entitlement State

Fabio Rafael Fiallo, RealClearWorld

AP Photo

 

The redistributive reforms (or follies) of the 20th century were largely inspired by two leading economic thinkers: Karl Marx and John Maynard Keynes. Notwithstanding their ideological differences, they had one point in common: for both of them, income equalization serves to promote economic growth.

For Marx and his progeny, class struggle would lead to the demise of capitalism and to its replacement by a superior, egalitarian system (socialism) that would usher the human kind into a world characterized by the abundance of goods and services to be distributed according to each one's needs.

A similar correspondence between income equalization and economic efficiency formed part of Keynes' ideological paraphernalia. To combat recession, he argued, income...

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TAGGED: global economy, Europe, Eurozone

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