One of the books I've been involved with at work recently got some play in the WSJ. I'll spare you the underlying economics and just focus on the last line: "A larger government sector may decrease some economic inequality, but will ultimately leave Americans sharing smaller pieces of a smaller pie."
Basically, the book explains that increasing the size of your government can slow your country's economic growth rate. A big government can, through tax and transfer programs, reduce economic inequality by taxing the haves and distributing that revenue amongst the have nots. After a certain point, however, tax hikes yield diminishing returns. If growing your government causes your economy to grow more slowly, then eventually there's less to take in and therefore less to spread around.
Reasonable people can and will disagree about the proper size and scope of government (and the benefits and services it provides) in relation to the desired rate of economic growth (or forgone wealth). But since this is my blog post, I'll explain my point of view. I tend to favor an increase in economic growth over an increase in economic equality (via big gov't) because I don't believe that wealth is a zero-sum game. Sure, if there's only $6, then me and my two friends can all have $2. But if there's not a limited total and I can have $4 instead, I don't care if my friend gets $8. In fact, I'll even give up $1 and volunteer my friend with $8 to also give up $1 ( . . . or perhaps $2, depending on the progressivity of my theoretical tax structure) if it means that no one gets $0. That leaves me with $3, which is still better than $2.
If you're still reading this, bless your heart, and here's my larger spiritual point: when you're counting your blessings, don't approach that exercise as if it's a zero sum game. Please don't take this analogy too far--I don't actually mean to equate my political opponents with sinners, and I would never mistake the size of our GDP with the size of my GOD. What I'm trying to say is: we serve a God of abundance, not of lack.
When your neighbor is poor (in wealth or in spirit), be generous and compassionate. But when the tables are turned and your neighbor is rich (in wealth or in joy), be thankful. Anything less is envy. And envy is rooted in a belief that God's resources are limited - as if by providing for your neighbor He has less to give to you. False.
God is at work redeeming creation. When you see that anywhere, rejoice - even if that means watching someone else get something you want or get more than you have. He will pour out His blessings according to his larger redemptive plan. That means that sometimes I'll get 4 blessings when my neighbor gets 8 . . . but I'll gladly take that deal, because I know that His supply is unlimited and the blessings won't run out until His redemptive work is through.
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