Reduced Prosperity
According to economist Hans-Hermann Hoppe, countries where the means of production are socialized are not as prosperous as those where the means of production are under private control. Ludwig von Mises, a classical liberal economist, argued that aiming for more equal incomes through state intervention necessarily leads to a reduction in national income and therefore average income. Consequently, the socialist chooses a more equal distribution of income, on the assumption that the marginal utility of income to a poor person is greater than that to a rich person. According to Mises, this mandates a preference for a lower average income over inequality of income at a higher average income. He sees no rational justification for this preference.
Read more about this topic: Criticisms Of Socialism
Famous quotes containing the words reduced and/or prosperity:
“Love is a taste for prostitution. In fact, there is no noble pleasure that cannot be reduced to Prostitution.”
—Charles Baudelaire (1821–1867)
“The government of the United States at present is a foster-child of the special interests. It is not allowed to have a voice of its own. It is told at every move, “Don’t do that, You will interfere with our prosperity.” And when we ask: “where is our prosperity lodged?” a certain group of gentlemen say, “With us.””
—Woodrow Wilson (1856–1924)