Posted by Bob on 9/27/2007, 5:13 am, in reply to "Re: America's economic disaster areas" Your piece concerned the need to treat economic dislocations in a manner similar to natural disasters. That sympathy is understandable. Surely, immediate, short-term steps are needed to help people recover from such blights. Unfortunately, the tendency of government is to turn these bootstrap programs into long-term programs that do not address the underlying problem. The correct solution is to promote a fundamentally sound economy. That, and only that, will solve the problem long-term. The problem, as I pointed out, is that we are no longer meeting the fundamental requirements of a strong economy. Those requirements begin with productivity. If no one is producing the food, manufactured goods and skilled services, then no amount of taxation or redistribution will help. They will only make matters worse. Once productivity is established, distribution usually takes care of itself, except for the few cases of genuine disability. However, it is in redistribution of wealth that modern governments gain their constituencies and power. They then proceed to kill the goose (the economy) that lays the golden eggs, by creating incentives to be unproductive.
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I'm replying, but not necessarily debating.
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