U.S. public discourse especially, particularly during election seasons, as we saw in the primaries leading up to Obama’s election, makes a lot of fuss with the phrase “the redistribution of wealth.”
Those using the phrase seem to intend it to refer to some type of “Robin Hood” scenario, where some guy steals from the rich in order to give to the poor. Way to make it really black and white, huh? To say nothing of the fact of how the “rich” make their money from the “poor” in the first place. Hello! – a sales transaction is one of the first forms of the redistribution of wealth.
So I thought it would be interesting to come up with a list of all the other forms of redistribution of wealth that occur all the time, but are never considered as “redistribution” even though they are. They show that all those knee-jerk criticisms about XYZ administration or government skimming off the achievements of the deserving and meritorious don’t really hold a lot of water, if only for the fact that they’re so badly analysed.
Forms of the Redistribution of Wealth
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Charity work. When you or your neighbor give money to Amnesty International, the Red Cross, Feed the Children, or the Humane Society, you’re redistributing wealth. Sure, you’re doing it completely of your own accord, so long as you’re not doing it for any tax break.
Philanthropy. A bit different than mere charity – or call it charity on a really wide, human scale. Usually involves institutional giving. Think George Soros funding entire countries. This is massive redistribution of wealth. Sure, it’s up to Soros – but there’s always something motivating him, too.
Volunteer work. Don’t forget human capital – this is probably the original distribution of wealth before it became reified in the form of manipulable, exchangeable units. You give your time and energy – neither of which you have infinite supplies of, although various law of attraction and abundance theories will show that you still benefit in various ways from this act of giving.
Capitalist transactions. When you buy a coke, along with 20 billion other people every day, you’re all helping to deploy one of the largest transfers of wealth ever, a transfer of more than 40 billion (approximate numbers – you’d have to check their investor site to see exactly) each day to the Coca-Cola corporation. Do they deserve it? Was it really your choice to buy that coke? You probably rarely think of it that way, but nevertheless you’re transferring your wealth more or less (in)voluntarily (is there anything else in that vending machine at work?).
Employing your children. When you give your kids an allowance in exchange for work around the house, or when you merely ask them to help clean or do yard work without compensation, that’s also a Robin Hood style of wealth transfer. This is no doubt a controversial topic, but suffice to say that children are (thought to be?) relatively powerless in the face of their providers in terms of wealth.
The University System. Grad students everywhere are exploited for their knowledge, innovation, energy, and teaching skills and not compensated fully for most of it. Wealth accumulates within the university administration as they take in more paying undergraduates and have to pay out less for employees and teachers.
The Stock Market. Many levels here – options, derivatives, futures, common stock and bonds – this may be the ultimate meta-distribution centre for all forms of wealth. Consider leveraged plays and instantaneous electronic algorithmic trading – massive, multiple exchanges of money in minutes across the globe. Not all equally regulated. Not all equally responsible or conscious. Much of it “Robin Hood” style.
Bank Bonuses from Bailouts. Need I say more? This is all still very fresh in many Americans’ memories. Remember that TARP was issued during the Bush administration and none of the Iraq war has really been paid for yet.
Social Security and Medicare. I’m not arguing for or against this here – just pointing out the nature of the redistribution of wealth here. Someone called it a Ponzi scheme. If you just look at the structure of its operations, of course it is a Ponzi scheme, because that’s the only way it can work. But your bank also works like a Ponzi pyramid, and so do corporations.
Getting the picture? The whole socioeconomic structure is one of the redistribution of wealth (not always Ponzi-style). Instead of throwing that phrase around, we should refer to the specifics of the proposed problem on a case-by-case basis instead of puppeting about caricatures and cartoons of the problem.
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{ 3 comments… read them below or add one }
Good post. I especially like volunteer work, as it has many shapes and forms. Cheers.
Where’s TAXES?
Yes; my point here was to look at other forms that aren’t usually considered in the same category. Of course, regardless of which whether it’s a tax hike or cut, it’s still moving the supply around.