Our two parties have an unhealthy attitude toward wealth.
The left gains adherents by fanning wealth envy. The idiots who fall for this message fail to realize that the people who fan wealth envy do not really have a plan for a more equitable society.
In most cases the party that fans wealth envy is seeking centralized political power. This centralized political power creates centralized economic forces which have the effect of consolidating wealth.
The reactionary right is equally stupid about wealth. As mentioned in the last post, the reactionary right gets so caught up in defending the right to wealth that they fail to distinguish between riches accumulated through production and riches accumulated through plunder.
Defending wealth, while failing to stand against the centralization of power, feeds the negative economic forces created by the idiots on the left.
The economic collapse showed the rotting core of our highly centralized financial system. We found our highly regulated banks were weighted to acts of plunder.
We find the great fortunes of the day in the hands of Madoff, Soros, the Sandlers and numerous hedge funds which simply hold formulas for gaming the system. Those who produce wealth are marginalized by a system dominated by derivatives and short sales.
Our parties have created a self-destructive system where the left encourages the development of highly centralized regulatory systems that allow insiders to plunder the economy. The right then defends the plundering. This creates a truly destructive disparity in wealth.
Ignoring the fact that the Left is the primary cause of the centralized economy weighted toward plunder, people react to those fanning the flames of wealth envy with even greater demands for centralization.
Stupidly, the reactionary right consistently falls into the trap of defending the plunderers. Notice the number of Libertarians and Conservatives who defend short selling when short selling is diametrically opposed to property rights.
The healthier relation to wealth is to think about quality. Conservatives should laud wealth created through production and abhor that created through plunder.
The big question is: How can one tell the difference?
I contend that one can tell the direction of an economy by the concentration of wealth.
People are clever creatures. They are very good at replicating success.
This puts an upper limit to the amount of wealth that one can accumulate in a free market. If person A has a formula for success, people will imitate it until the returns are marginal.
A truly free market has built in limits to success.
One does not get the really massive fortunes until one has a strongly centralized economy based on plunder.
So, one can judge the health of a market by the accumulation of wealth.
The wild fortunes being made on Wall Street were signs of sickness.
I am out here in Utah and see the local community. The local communities are highly diversified and were growing at a steady rate. For that matter, I was using the Community Color web site as a way to tell people to get their money out of wall street and big banks and into the local community.
Anyway, to get the US back on the road to prosperity, we have to find a way out of the trap of centralization created by our two parties.
Part of that is for Conservatives to start differentiating between wealth made through production and wealth made by plunder.
Conservatives must understand the game of the progressives. Progressives fan wealth envy, then use that wealth envy to attack the production of wealth in favor of plunder. The only cure for this strategy is to get people to encourage people to differentiate between production and plunder.
Does short selling produce wealth? No, it does not. It is a violation of property rights and should be discarded as plunder. Do hedge funds produce wealth. No, they do not. Hedge funds exist solely for protection of the wealth of the ruling class. They should be scrapped. Does employer based health care produce wealth? No it does not. Employer based health care centralizes wealth. It should be replaced with a self-funding mechanism where employees own their health care resources.
Until we figure a way out of this trap, the unhealthy relation between left and right will continue to impoverish our nation.