The Wealth of the Nation

Often we hear newscasters and elected officials speak of the National Debt as though it was simply a problem of finding more money. While that is related to the problem of the national debt, it isn’t the real problem of why the debt exists.

Socialists see the government as the vehicle for redistribution of wealth. They see it as spreading around the money supply so that all share equally and that wealth is not accumulated in the hands of a few. What they fail to realize is that money is not wealth in the true sense. Currency has no value in itself. It simply represents real wealth in terms of what we have to sell. What we produce is the wealth. You can print money all day and not increase wealth. It is only through increased production of products and services that a nation’s wealth increases. That is why communism as a system is such a total failure. If people are simply sharing the money supply, but do not contribute to the production, all we do is erode the value of that which is produced. That is why it so important to do everything that we can to stimulate production and not simply consume it. Consumption without production is destruction.

It can’t be any clearer that President Obama and his socialist colleagues simply don’t get it. When they transfer money from the wealthy who produce the wealth to those who don’t, they just undermine the production of more wealth. Transferring money to the government, who produces nothing in terms of production output, reduces wealth. There are many ways to assist the poor, but socialistic government control is among the worst ways. We simply equalize our poverty, not increase wealth. All of the government entitlement programs, government spending on projects, and bailouts of poorly managed business is the exact opposite of how you stimulate an economy. They are wondering now why these programs fail. As things get worse, they keep trying to do the same thing. Somewhere along the line, they got philosophy confused with economics.

What we are seeing in Washington is not really about solving the debt problem. It is about power and control. It is about who has it and what direction they will take the nation. It is about whether we transfer power from the people to the elite in government.
In fairness, there are plenty of people in both parties that do not understand the fundamentals of economic systems, but the difference is one believes in more government and the other less. More government means less wealth. Less government at least provides the opportunity to grow it. Why then would the citizens of a country choose to become poor, while giving away their right to free choice? Americans better wake up to these realities soon or they will awaken to a new reality. They will find themselves working for a government that tells them they will enjoy sharing their poverty with their fellow man.