Zero-Sum Progressive Outlook

May 24, 2011 by Editor Fred D

Zero-Sum Progressive Outlook

Zero-Sum defined by Merriam Webster “: of, relating to, or being a situation (as a game or relationship) in which a gain for one side entails a corresponding loss for the other side ” or in other words the whole cannot be increased or decreased.

The easiest way to explain this is if three people each have one dollar. For one of the to earn a second dollar, one of the remaining must lose a dollar. Progressives love to say that the wealth and/or banks have all the money. (If you have played Monopoly you understand this concept.)  What they have failed to see is that that wealth was created. Ford, Edison, and Firestone businesses did not remove money (wealth) from others. On the other hand the wealth that they created in turn allowed others to create even more.

Those that believe in zero-sum would walk and the grocery and find that they items had not been replace. The concept is the same. If not so, well Bill Gates, Dell, and Warren Buffet would have a net worth of zero. Why, because the wealth they built would have been that of someone else.

What those progressives fail to understand is wealth creation is a continuous process and by-product of the free economy.  It is, in part, responsible for supply and demand. Take the VW Bug; just a few years back when it was reintroduced to the American market, demand pushed the price of it up.

As long as someone is willing to create something, someone will find a way to attach a value to it. That is why the progressive argument holds no weight. For those that have not to create and sell that creation does in fact create additional wealth.






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1 Comment

  1. doggy dog

    As long as they pay their fair share of taxes and stop hiding assets and profits on offshore accounts no problem..

    Reply

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