The Wealth Gap

Classical liberals hate socialism. The despise the bureaucracy, the politics, the haggling. They prefer markets and competitions, and I agree with them.

But is oligarchy any better? When the economy is concentrated into a few megacorporations, we are back to bureaucracy vs. many-to-many markets. Adam Smith aimed most of his ire at the political Right, at oligarchy and mercantilism. And we would be wise to look at threats to economic freedom from the Right as well.

So here we will look at ways to narrow the wealth gap, some of which can be found in forgotten chapters of The Wealth of Nations. I wish to reach out to members of the Occupy Movement and teach them a bit of economics useful for their cause, so they don’t repeat mistakes of socialists past.

We can have a more egalitarian society without resorting to 70% marginal tax rates, massive bureaucracies or cult of personality leaders. We can move back from both socialism and megacorporations to move to more human scale enterprises.