In the Mises Daily from Friday, March 05, 2010, Jonathan M. Finegold Catalan explains Garet Garrett's Invaluable Lesson. Today, America is still in the business of bailouts; at home and abroad. Before wealth can be distributed to someone the government deems is justly entitled, that wealth must be created by someone. That wealth must be forcefully expropriated from the producer before it can be gifted away to the 'needy'. The interventionist policy rooted in the morals of social entitlement caused a global economic crisis 80 years ago. It seems not much has changed. At some point, we run out of real wealth available for governments to plunder. A is A.
In this article, Catalan quotes one the many brilliant observations by Ludwig von Mises in Human Action. Mises stated that, “Intervention aims at confiscating the "surplus" of one part of the population and at giving it to the other part. Once this surplus is exhausted by total confiscation, a further continuation of this policy is impossible.
In other words, a policy of debt-inducing wealth redistribution is not sustainable. Catalan explains “the crisis of interventionism is summed up by the adage, 'the problem with socialism is that eventually you run out of other people's money'."
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Read more: Garet Garrett's Invaluable Lesson - Jonathan M. Finegold Catalan - Mises Daily http://mises.org/daily/4117#ixzz0pEVDeoTi
“...beginning with the premise that people are entitled to certain betterments of life. If they cannot immediately afford them, that is, if out of their own resources these betterments cannot be provided, nevertheless people are entitled to them, and credit must provide them” - Garet Garrett