A common thread I see among the left, is that there are poor because somehow the 1% stole it form them. The rich, evil CEO’s of the world are hording money that would otherwise be in the hands of the poor.
It is mind bottling to me when I hear people say this. Especially because real evidence and facts are just a click away.
These people for some reason think that money and wealth is a finite number. The truth is, wealth can be created. I will use an example I have heard Bill Whittle use because the example is about as simple as it gets.
WEALTH CREATION
Imagine two tribes on either side of a river bank. Tribe one has a very unique skill set. They, through technological expansion, have determined the best way to make spears. Their spears throw farther and more accurate than any other spear made at the time. They also have baskets that they use to carry goods. However, they are not very proficient at making them. The baskets constantly fall apart and do not hold anything very well.
Now tribe number two has a different skill set. They weave baskets so tightly that they can hold water. However they catch very little meat because they are unable to make decent spears. One day tribe members from each tribe meet at the river bank. Upon noticing the value proposition. They decide to trade some spears for some baskets. After this transaction occurs, who is better off?
The answer is that they both are.
Through the wonders of free market capitalism, wealth has been created. Each tribe lost the labors and materials they used to create their goods but they both exchanged them for items they valued higher than the labor and supplies wasted.
Here is where the real magic happens. Once both parties realize the trade as a “good deal”. Tribe one may halt production of their inferior baskets and focus on making spears. Tribe two will do the same with baskets and they will continue trading as needed. Each trade leaves both tribes better off than they were before because the trade happened voluntarily.
In a nutshell that explains how wealth is created. The example also debunks the myth that the rich stole the money form the rest of us… or does it?
There is only one scenario where the “powerful stole my money” excuse could actually be true.
What if the first tribe decided that they did not want to make more spears but they needed more baskets. They all got together and threatened tribe two to produce more baskets for them. Which party is better off?
Tribe one is much better off because they did not have to increase supply or labor output and they received baskets. Tribe two is left with the tasks of making up lost labor. Similar to a thief robbing a bank. Rather than working and producing to earn money, the thief will steal the labor and goods of the collective.
Now associate this with today’s society.....
