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:
“Ive tried to reduce profanity but I reduced so much profanity when writing the book that Im afraid not much could come out. Perhaps we will have to consider it simply as a profane book and hope that the next book will be less profane or perhaps more sacred.”
—Ernest Hemingway (18991961)
“Prosperity or egalitarianismyou have to choose. I favor freedomyou never achieve real equality anyway: you simply sacrifice prosperity for an illusion.”
—Mario Vargas Llosa (b. 1936)