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Wednesday, October 22, 2008
Warren Throckmorton :: Townhall.com Columnist
Obama and the S-Word
by Warren Throckmorton
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When the productive plumber protests that his tax burden will increase, Obama intuits the problem inherent in "equitable distribution." He says to the questioner, "It's not that I want to punish your success..." However, punished success is just the mischief that successful Americans fear. Obama's desire to "spread the wealth around" may not come with malevolent intent, but to be sure, policies such as are advocated by the Democratic Socialists may result in inhibitions of initiative and innovation.

Rudolph Penner recently said on a C-Span call-in show that capitalism isn't perfect but it is better than the alternatives. Indeed, many have suggested that the current mortgage mess derives from well-intended attempts to spread the wealth around. In unraveling the causes of the housing bust, one finds multiple targets of blame. However, it seems clear that government policies which encouraged home ownership beyond a borrower's means were part of the chaos. In light of the federal government's inability to manage markets, it is a fair question to ask: Do we need more central planning or less?

Whatever your view of economic policy, shouldn't we have a public conversation about wealth re-distribution, and popular control of production and resources? The debates have been a profound disappointment in this regard.

I think the onus falls on the mainstream media to broach the S-word in questions to Mr. Obama about economic philosophy and policy. Mr. Obama, what did you mean when you talked about punishing success and spreading the wealth around? Is a move toward socialism in your vision for the nation, Mr. Obama?

I fear many Americans enamored with Mr. Obama's ability to revive the economy may be surprised that he intends instead to remake it.

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About The Author
Warren Throckmorton, PhD is an associate professor of psychology at Grove City College and fellow for psychology and public policy with the Center for Vision & Values.
 
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Stop shoving important aside 4 trivial
Who cares if Joe is a plumber or not. The important thing was Obama's answer to a good commonsence question.
At least Joe had on his thinking cap, which all of you out there"dumber than rocks" and enamored by Obama's "elequont" speeches, full of sound and fury but signifying nothing, need to pay more attention to exactly what Obama's answer really means.
Stop making Joe the sacraficial lamb to Obama's plan for the destruction of the "American Dream."
Name one 3-4 generation welfare receipient that is even trying to make something of themselves.
I grew up on an indian reservation and can tell you that the Federal Government single handedly destroyed a great, proud and wonderful people. In some cases it took away their identity.
Look around you today. Look at the kooky things our youth wear and how they mudilate their own bodies searching for their own individualism and identity.
Under BO, he will attempt to further strip us of our individualism and identy making all of us, for the good of the central society, like the "Borgs" in the star trek series.

Ralph On Adam Smith
From what I can assess of Adam Smith’s writings in ‘An Inquiry into the Nature And Causes of the Wealth of Nations,’ your citation needs expansion.

He begins book V, Chapter II, Part 2 by stating that the private revenue of individuals arises from three sources: rent, profit and wages, and that every tax is paid from one of these three sources. When speaking if taxation in general, Smith did write:

“The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

But, he noted in Book V, Chapter II, Part I:

“THE funds or sources of revenue which may peculiarly belong to the sovereign or commonwealth must consist either in stock or in land.”

When he spoke of the direct tax upon the wages of labor , he wrote:

“The declension of industry, the decrease of employment for the poor, the diminution of the annual produce of the land and labour of the country, have generally been the effects of such taxes. In consequence of them, however, the price of labour must always be higher than it otherwise would have been in the actual state of the demand: and this enhancement of price, together with the profit of those who advance it, must always be finally paid by the landlords and consumers.”

He then surmised that direct taxes upon the wages of labor are “absurd and destructive.”

The entire text can be read here:
http://www.adamsmith.org/smith/won-index.htm

While my readings are not conclusive, I am not as inclined to believe that Smith’s belief in progressive taxation applied to income tax but to the taxes addressed in Articles I and II: land and stock.

If anyone has definitively studied this area, I would appreciate your comments.
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