Tuesday, March 13, 2012

Money and politics

Money and politics. I hear it often, we must separate money from politics. I would suggest that it is somewhat more complexed then that. There are far more voters at the bottom then at the top. If the people at the top did not have a larger megaphone the country would collapse. There is much that can be done to change and improve the rules governing the interaction between money and politics. But the system cannot survive without such interaction. In all Western societies economic resources flow from the more productive to the less productive. It used to be the reverse. The many poor worked very hard and almost all the fruits of their labor were taken away in one way or another for the benefit of the very few rich. Now days the argument in every western society is how much help and services to give the poor and to which class of needy to give it to. We create every year many new laws that provide some new class of people money, or increases the amount an existing group gets. That money comes from the productive sector. It must. It is where it is generated. Every year we pass laws and rules that make it harder and more expensive for business to be in business. And every new law and rule gives someone some new reason to sue. The never ending stream of new laws are costly for business to comply with, and provide jobs for lawyers and new government compliance bureaucrats while no new product is created. It means that the additional costs are added to the existing products. After all the money must come from somewhere and the lawyers and government functionaries do eat. There is much more to it. But the point is that if the productives don’t have a larger voice then their numbers, they will be damaged even more then they do now. Their businesses would be less productive locally and less competitive abroad. At the end of the day, the rich would have less to be taken away from and transfer to the once that do the taking.

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