We’ve been hearing a lot lately about the need for the wealthy to “pay their fair share” so that the federal government can pay down its debts and continue to fund programs to provide basic human necessities for the poor, such as food, shelter, and prophylactics ..
.. There are a number of errors embedded in the above explanation .. but let’s cut to the central one: the fallacy that there always has been and always will be a fixed amount of wealth in the world, and that wealth is merely shifted back and forth among people, but it is never really increased. Economists call this the “fixed pie” fallacy.
Historical reality bears out the fact that in capitalism, people become rich by putting what capital they have to good, productive use, and that anyone, no matter how poor they start out, can become wealthy ..
Sadly, it seems that many Americans, including the Occupy crowd and even our own President, are not aware of the unique and amazing power of entrepreneurship: the ability to use our resources and God-given talent to better the lives of those we work with and those we serve. Only when we as a nation remember that the phenomenon of money can be used in a dynamic way to participate as co-creators with God, will we begin to work our way out of the economic mess we are in.