(L100) Income Redistribution

“Would it be moral to grade exams, so that all students get C’s? If not, is it moral for the state to redistribute incomes?”

It would be nothing less than immoral for a teacher to assign grades in accordance with equality, rather than true individual scores. The reason that giving every student a C (for example) would be wrong, is that every student did not earn a C. Some students earned a much higher grade, and are being punished (receiving negative sanctions) because of those who did not score as high as they did. Others however scored lower than a C, and are being rewarded (receiving positive sanctions) for doing worse than the other students. While obviously far from fair, this system cannot even be chalked up to being remotely positive as it rewards the underachievers and punishes the successors.

The only way to fairly award grades to students would be to grant them the exact grade that they earned. Each student, regardless of each others score’s, would have to reap the rewards or consequences of the grade that the results of their test’s warranted. (Now, yes, I do recognize the flaws in standardized testing, and I understand that many students fail not due to effort exerted, but because of the fact that they are being forced to learn in a way that they do not understand. In this example however, I am referring to an imaginary class of students, all of equal learning ability who have either scored higher or lower based upon the effort they put into studying and learning the test material. In short, this would mean that it would take every student the same amount of time to learn the same amount of information; thus, every student gets the grade that they worked for and can all be graded using the same scale.)

In both the academic and career worlds, people (should) get what they work for. I personally work my little butt off to earn an income that can support my needs, and to be stolen from is heartbreaking. Now, when I speak of being robbed, I am not talking about a masked purse-snatcher assaulting me on the street. No. I am speaking directly about your friendly neighborhood politician; I am talking about his superior, and the man in charge of him too. Every single hard working American is robbed at gunpoint on a daily basis, but does it hurt you the way the plain-sight bandit does? Would you cry the same, or file a report with the police the very same? Do you even notice?

More often than not, these questions are answered with a simple no. Sometimes however, these practices are even encouraged with phrases resembling, “I am just doing my part” or “it’s for the greater good”. So what exactly is the greater good and who is the authority on such? In my opinion, the greater good is to “love thy neighbor” and the overall authority is God. What I do know however is that funding the lives of lazy, alcoholic, drug using, and/or jobless adults and their offspring with stolen money is not the greater good. Welfare programs not only theoretically encourage mooching and joblessness, but have been proven to increase poverty levels throughout the United States. It also has been shown to destroy marriages, reduce the likelihood of a welfare child having a successful future, and increase mental health and home abuse issues.

Why should somebody be granted what another person earned at the threat of force and violence? Would God believe that this is the greater good? Did God say that “thou shalt not steal, except by majority vote”? Absolutely not. God said to help those around you, he said to be generous and love every man. I believe that there are people out there that do truly need help, but I do not believe that coercion and theft are the ways to help them! Allow people to keep that which is theirs; their income in full. Encourage one another to share, trade and lend a helping hand. Charity has changed hundreds of thousands of lives already, and I don’t believe that the power in giving is lost. We can make a difference, even as one person. We can reduce poverty, mental illness and spousal/child abuse. We can build communities that revolve around charitable action and helping rehabilitate people; but first, we must stand up against being forced to enable these things with our own weekly paychecks.

Theft is immoral whether you wear a business suit or a hoodie. It hurts the lives of people on both the receiving and the losing ends.

(L50) Fiat Money & Government Interference

1.) What problems do price ceilings cause, and what are the benefits of letting prices adjust without government interference?

Price ceilings lower the quantity of products available to consumers, and raise the demand all at the same time. This causes shortages. Allowing prices to adjust themselves would allow producers to accurately interpret economic signals and meet the needs of consumers in a highly efficient fashion.

2.) Name and explain three disadvantages that have been identified with fiat money.

One disadvantage that has been identified with fiat money is the fact that when the government (really The Federal Reserve) increases the paper money supply, prices rise to a level that they would not have naturally reached without intervention. Another disadvantage to fiat money is that it increases the power of the government. Because they can create new money from thin air and there is no limit to how many paper bills they can print, they have, in a general sense, unlimited resources. Adding onto this, when new money is created there is a distortion in the distribution of money throughout the economy, because whoever receives the new money first is spending it at the prices of the old money. (When new money makes its way through the economy, prices rise; however those who are the first to receive the money have not yet experienced this rise in prices, and are therefore favored in this process.) The losers of this process are those who get the new money at the end of the process, or by the time it has already taken it’s toll on the economy.