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Doing What Is Good vs. Doing What Feels Good February 23, 2016 4:00 PM | Tagged as Churchill

WSJ February 19. 2016, Page A13: “Notable and Quotable” quoting Mark J. Perry writing online for AEIdeas, Feb 12.

The far left makes gains with people by thumping their chests on how they – and only they -- can fix the ills of the world. They foment the universal sin of false pride among the gullible by framing every imperfection in our society as being the problem with the rigged system and the 1%. Thus, they exist by duping people into thinking if it feels good, it is good. However, often the opposite is true. Those policies which feel good on the surface are not infrequently the wrong policy approach. The political right-wingers attempt to do what is good for America, not what feels good.

One example is the perceived need to reduce the income inequality among Americans by ripping off the wealthy and redistributing it to the masses. Those on the right realize that there are imperfections in our capitalist society, but that free market capitalism helps more of the common people than any other system so far invented – in spite of imperfections. The left wants to steal from the have’s and give to the have-not’s.

Mr. Perry’s referenced quote is insightful. If the income from all 500 CEOs of the S&P 500 companies were confiscated and distributed equally among others, the hourly wage increase would be 3.5%. And that’s before taxes.

If the 20:1 ratio between CEOs and workers being bandied about were implemented by a heavy handed government bureaucracy, the average worker would see his or her pay go up by $1.32 per week. Again, before taxes. Is this windfall going to right the imperfections?  Nyet. And remember this increase does not include the cost of the government overseeing the unnecessary regulations to implement this bad policy. Nor does it include the reduced job creation by running the best CEOs out of the country. They will find ways to create jobs somewhere. Wouldn’t it be nice if those jobs were U.S. jobs?

Simply put, there is not enough dough among the 1% to make a difference with the middle-income- and lower-income workers. The right policy is to grow our economy and let those who know how to make, grow, and run companies create the jobs that increases the demand for workers and thus increases the average pay. If CEO-to-worker pay ratios are 1000:1, who cares. As JFK taught us, a rising tide lifts all boats.

The words of Winston Churchill capture the difference between the right and the left. “The inherent vice of capitalism is the unequal distribution of blessings. The inherent virtue of socialism is the equal distribution of misery.”

[Although opinion is included, The Biz Bucks Blog is primarily written to former students of Biz Bucks training courses to encourage their daily reading of the three opinion pages of the WSJ. This refreshes principles of Biz Bucks courses and improves business acumen on topics not discussed in Biz Bucks training.]

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