Obama's Zero-Sum Game and the Coming Redistribution Bubble

As a presidential candidate in 2008, Barack Obama stated to Joe the plumber that the primary goal of government should be income redistribution.  And in reality, Obama has made great strides with regard to income redistribution, having enlarged the food stamp recipient list, for example. At the heart of income redistribution rhetoric is a principle called the "zero-sum" theory.   This theory assumes that the amount of money in the economy is fixed, and therefore, a wealthy person gains wealth only if another person loses it.  The amounts are equal, thus the total is a "zero sum."  It is only by exploiting the working class, Obama believes, that the rich have unfairly become rich.  The role of government, then, is to achieve a more "just" and "fair" distribution of wealth -- a "re-distribution" of the fixed amount of wealth in the economy. Since rich individuals will not part with their money voluntarily, the federal government, through its taxing...(Read Full Article)