The Real Redistribution of Wealth

We have heard the phrase "redistribution of wealth" often in recent times, and Obama's phrase is generally taken to mean taking money from the wealthy and giving it to lower-income people. Various observers have commented that increasing taxes on the wealthy would operate the government for a few more days, and calculations have shown that even taking 100% of the income of rich people would only go a few months toward paying the federal government's bills. In the recent election, many voters interpreted "redistribution" to mean "take it away from the other guy and give it to me." They failed to see the comparatively short-term nature of the transaction. "Entitlement reform" is always a mañana topic; it gets postponed every time it's brought up in Washington.  Because of America's ability to borrow money, the day of reckoning has been postponed ... for a while. The real "redistribution of wealth" that is taking place is an intergenerational transfer. Money gets transferred to...(Read Full Post)