“Proponents of redistribution believe they hold the moral high ground. Most of them demand more but have no perspective about where more becomes suboptimal. They mistakenly assume that redistribution consumes only the incremental consumption of the rich. They don’t consider whether payouts for lucky risk taking motivate risk taking. They don’t realize that consumers and wage earners capture almost all the value from investment and that GDP only partially captures this value in measures of income. They draw little distinction between the effectiveness of the political allocation process relative to Darwinian survival of the fittest that prevails in private enterprise. They take it as a given that large political interventions will work as planned. At the very least, they need to “swallow the red pill” and recognize that the moral and economic trade-offs are more complex than they realize.”
Excerpt From: Conard, Edward. “Unintended Consequences.” Penguin Group, USA, 2012-04-25. iBooks.
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