Wealth creation

Socialists just don’t get it! They seem to think if it weren’t for the billionaires of this world, we would all be enjoying a better and equal standard of living.
Their theory is that every dollar that a billionaire has accumulated and squirreled away is a dollar that was taken away from some poor soul living below the poverty line.
They are convinced that if billionaires had less money the rest of us would have more.
I will agree that corporate executives can be greedy. There is no way that anyone needs that kind of wealth.
However, I don’t think the economy would be any different if they had far less wealth. The big problem for the rest of us, and especially the socialists, is the optics of their wealth.
It just doesn’t seem fair.
The simple fact is what makes the economy work in a country is the wealth creation ability of that nation.
Socialists think that all a government has to do for a sound economy is to create jobs. Well, it is a futile exercise if a large number of those jobs don’t create wealth one way or another.
Governments are not wealth creators, rather the services provided by government are wealth consumers.
The money to provide those services has to come from somewhere. Both our federal and our provincial governments are spending large sums of money on jobs that do not create wealth .
A government has to have a bureaucracy and the country has to provide infrastructure, as those are necessary services, however the money must be spent wisely.
So where does the money come from to pay for these services?
The majority of it does not come from the pay cheques of an overpaid bureaucracy or from implementing a new tax that will make industry even more unproductive.
For a period of over 70 years the Soviet Union provided a job for every one in the Federation but in the end every one was living in poverty except the people that were running the government.
In my opinion, it takes investor-owned corporations and private industry to create the environment that will produce real wealth.
Industries that develop resources and industries that manufacture goods for public consumption and export are examples of industries that produce real wealth.
It is the efficiency in the production from these industries that creates the wealth for governments to derive the revenue they need to pay for government services.
Competition among industries creates the efficiency for wealth creation. The reason that government-run business is inefficient is because there is no competition, so the incentive to be efficient is lacking.
Governments that spend money faster than the country can generate it, end up with deficit budgets and a stagnate economy.
A good example is the Government of Ontario with its “Green Energy Act”. It has invested in an industry that has consumed wealth to the point where many of its citizens can no longer afford to pay for electricity.
As a result, the province now has the highest sub-sovereign debt in the developed world. Say what you want, had the Ontario Government let the billionaire executives run the economy instead of focusing on the impossible goal of reducing C02 emissions to control climate change it would still be a “have province”.
Countries with billionaires, generally speaking, will have a higher standard of living than countries with socialist governments.
People on the left have this idea that the social problems of people living below the poverty line are caused by rich people.
Their solution is to redistribute wealth by taxing the rich people who created the wealth.
They cannot figure out that this just makes everyone worse off. It may be fair game to dump on the rich and famous but don’t under estimate their value to the economy.