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:
“The newspapers are the ruling power. Any other government is reduced to a few marines at Fort Independence. If a man neglects to read the Daily Times, government will go down on its knees to him, for this is the only treason these days.”
—Henry David Thoreau (1817–1862)
“I have no hesitation in saying that although the American woman never leaves her domestic sphere and is in some respects very dependent within it, nowhere does she enjoy a higher station. And ... if anyone asks me what I think the chief cause of the extraordinary prosperity and growing power of this nation, I should answer that it is due to the superiority of their women.”
—Alexis de Tocqueville (1805–1859)