The Fruits Of Society’s Wealth (Part 1)

If Mises, Hazlitt and the contemporary Austrian school are to be believed, all government spending ultimately can be attributed to some form of theft – outright theft via taxation or gunpoint, or theft of the more subtle type via inflation. The logic for this is simple – all consumed resources must come from somewhere. They cannot be conjured out of nothingness.

But does this always hold? Let’s look at an extreme example of a society in which 50% of all productive wealth belongs to the government. If for a moment we consider only the status quo – i.e. we do not consider HOW the government acquired title to those 50%, then I propose that this classical Austrian formulation does NOT in fact hold. On the contrary, we have an entirely different problem: who is going to get to enjoy the fruits of those 50%?

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