Redistributive Policies

Today in my Economics review I was able to give voice to some of my concerns about redistributive policies. There were three specific thoughts that came out of the feelings of unease I've felt for years about this. In theory it sounds good, and I agree with many of the principles, but couldn't completely jump on board.

First, redistributive policies can hurt more than they help. I don't think this WILL happen I think this CAN happen and should be something that is considered and that they possible negative impacts are accounted for and protected against as well as possible. Some of the potential negative consequences include a disincentive to work, both at the top and the bottom. If it is more financially beneficial to not work and get a welfare check, it may happen. If there is going to be too much of your paycheck taken away if you make over a certain amount, what is the incentive to work as hard as you can? The cost of transferring wealth can be more than the wealth that is being redistributed. Now, these are some of the arguments that I have heard over and over again and I think are not good enough reasons not to try to make a difference and help those who really need help making ends meet.

Another unease I felt comes from the fact that what we call "wealth redistribution" is actually not. We rarely give someone money. Rather, we provide services. These may or many not meet the individual needs of the families we are seeking to serve. It is great that small children can in theory have access to healthy food through the WIC program or to decent pre-schools through Head Start. But what if what they need is a warm jacket? Taxes are the biggest form of wealth distribution in this nation that I know of. Taxes don't always go to help those who need it most. Often they go to help everyone - better roads, or national defense do not help those who have less more than they help those how have a lot.

Among my classmates there tends to be be a Robin Hood feel to talk about wealth redistribution. That is not the way it actually works. We do not take from the rich and give it to the poor. I think in some ways I would feel better about things if that was more how it happened. But, even that is not compeltely true. I hear almost no end to the wonders of Sweden and its socialized medicine etc., but I remain unconvinced that it is the best thing since sliced bread and America is the worst. I belive there are pros and cons to each. Comparing the best of one to the worst of another does little justice to either.

I do think we need to do more to help people thrive. Do we all have to have the same amount of money or things? I don't think so. Do we all need to have a safe warm place to sleep, food to eat, honorable work to do, a chance to learn and grow? I think so. I believe we should work towards having a better way of dealing with these things at the goverment level, but I also believe there is a lot that individuals and non-profits can, and in many cases already are, doing to raise the level at which all humanity operates. May we all do a little more good, help one another a little more, be a little more generous with what we have. That is my wish.