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Maricopa County Libertarian Party

Economics of Pie

September 3, 2009 - 9:15pm
Richard Sutton by Richard Sutton


A group of 100 people assemble to make a pie. It will be a large pie this year and they will make an even bigger pie next year. The pie is always getting bigger even though 10 of the team just stand by watching others work and imposing restrictions that make creating the pie harder every year.

The ten "watchers" have the ability to create rules about pie creation but the 10% that makes these rules takes 17% of the finished pie.  Let's call their leader "Mr. President".

Some people make larger portions of the pie than others but all gather only what they have created for themselves except for the amount taken from each of them by the watchers.  Those who created larger portions of the pie are required to give up more of their pie than many others so that their pie can be given to those less fortunate and to fund the watchers restrictive efforts next year. 

The strange thing is that no matter how noble the goals of the watchers they in fact created no pie.  They have control of some of the pie but they created none of it.  They take 10 to 12% of the pie for themselves before giving the remaining confiscated pie (say 5%) to those both more, and less, needy.  That they take a portion for themselves is understandable as they have to survive just as everyone else but still they did not create any of the pie.

That is the basic economics of government.

Related Content:

The National Debt - Richard Sutton
Germany Provides Insights into Stimulus - Mike Renzulli
Socialism: A System of Hubris and Avarice - Austin Raynor

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Show Date Aug 2, 2015
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