Robbing Peter to Pay Paul: Why 'Social Justice' is anything but.



The term "social justice" is employed by socialists to describe a system of economic egalitarianism; achieved through progressive taxation, income redistribution, or outright confiscation of property. That’s socialism.

The aim is to award groups an impartial share of the benefits of society, through distribution of advantages and disadvantages within the society.

Of course it's difficult to redistribute such perceived (dis)advantages as geographic region, or race. Thus the primary measure of advantage in the eyes of social justice advocates is monetary.

This administration has been engaging in social justice initiatives and wealth redistribution from day 1. Can you regard the stimulus, TARP, and Waxman-Markey as anything else? These programs take money from taxpayers, and redistribute them in the form of entitlements.

The propose single payer healthcare plan, as outlined in House Resolution 3200, would be the largest entitlement program in human history, and will be disproportionately funded through increase taxation on those making more than 250,000 dollars a year. Yet these individuals would not receive benefit in greater portion than those who contributed less into the system, and since the benefit would not be in proportion to contribution, the wealth has in effect been redistributed.

Meet Peter. He's a successful small businessman who designs and builds children's playhouses, and sells then on online. He only has one employee to help with the website and shipping, but he does buy health coverage for himself and that employee. He makes a decent living, President Obama's 250K tax line, but after expenses he's still very much within the middle class.

Meet Paul. Paul makes his living as a frame carpenter, and doesn’t have health insurance. He doesn't have any formal training, but has always loved working with his hands. He would like to try something more challenging, but the uncertainty of the economy means few employers are willing to take a chance on him.

Let's say that H.R. 3200 does pass. Under the provisions of the bill, Peter's taxes both personal and corporate are going to go up. In addition, government regulations on 'qualifying health plans' cause the premiums he pays on his employees health care to rise dramatically. Both of these things mean less working capital for his business, he has to delay plans for expansion, and even struggles to make payroll.

Now, under the new plan, Paul has healthcare. While this offers some peace of mind, opportunities to get a better job have become scarcer, so his standard of living hasn't increased measurably.

One person's life had gotten slightly better; one person's has gotten worse. It's a wash. There's no net increase of standard of living, because no wealth was created in the process. It only changed hands. This relationship is something that socialists have a hard time grasping, because socialists have no understanding of what it takes to create wealth. It takes a capitalist to create wealth. The socialist only knows how to take what the capitalist has created.

But let’s say that we defeat H.R. 3200, and any other single payer option for the foreseeable future.

Paul still doesn't have health insurance. He still feels like he’s in a dead end job, but he’s optimistic that if he works hard and keeps looking he’ll find something better eventually.

Peter’s business is still doing well. As his taxes aren't going up, and he’s free to squirrel away capital a little at a time. Finally he gets enough money together to upgrade his website, and purchase enough tools to hire a helper, and greatly increase his output.

Paul answers Peter’s advertisement for a finish carpenter. He tells Peter that he hasn’t done finish work before, but that he’s eager for a new challenge. Impressed by Paul’s honesty, Peter decides to take him on for a trial basis. It’s not long before Paul impresses Peter with his work, and Peter offers him the job full-time.

Peter grows his business; Paul has a better job that comes with health insurance. Wealth was created, and both men feel like their lives are better. A net increase in standard of living. That’s capitalism.

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