No, I'm not equating the two, but without a functioning economy of private enterprise, society as we know cannot exist. Equality of income has nothing to do with economic activity. If the economy as a whole grows then the wealth of everyone increases which has a very positive social effect. How do you think that even someone on a low wage can afford to run a car, or get on planes to go on foreign holidays, or have modern computer and other electronic equipment at home? Did all this happen because somehow over the past 50, or 100, or 200 years income inequality has been decreased? No it hasn't. All these advantages of market economy based capitalism were made available because the economy as a whole grew; as whealthy companies and individuals became wealthier, so did the poor. You would have to rewrite history to claim otherwise.You seem to equate 'economy' with 'society'. What is good for the economy (going by your measures) is often not good for society. There is clear evidence that income inequality is not good for society, across a whole range of measures (See Equality Trust UK's website for evidence).
Looking at the last totally artificial boom to make an argument that the less well off did not gain anything is completely ignoring the bigger picture. The improvements to the lives of the poor in society over the last 200 years, are undeniable. And this was made possible through the end to serfdom and the advent of capitalism. But even in the boom years, uneducated and unskilled people got well paying jobs in construction and factories. You can hardly dispute this. At the peak of the boom foreign nationals took jobs that 100000 unemployed Irish were not willing to take. If these are the ones you feel were left behind then I have zero sympathy for them.There are people who are part of society, but who did not benefit from our booming Celtic Tiger economy, such as the people who live in Dolphin House and who's drinking water has the same eColi levels as raw sewage.
Also, maybe you could remind us whether it is a private enterprise or the government that is in charge of the water supply to Dolphin House?
The IDA did not attract jobs, no matter how much they claim they did. What attracted foreign investment is the low tax rate and comparably low wages 10-15 years ago. Private enterprises do not go to IDA junkets and listen to politicians rant about how great they are and say "Hey, this sounds like a great place". Every company looking to invest will look at tax rates, wages, employment level and education level and make a comparative analysis to other possible locations. They then make a decision based on cost benefit, and I think it is wrong to claim that the IDA makes any significant impact on this, especially considering their budget. Either the cost structure is preferable or it is not; no amount of sales pitching will make a difference.I see, so no IDA/Enterprise Ireland (despite that fact that every developed economy in the world has resourced dedicated to attracting FDI. No Equality Tribunal to address discrimination by public and private service providers at a low cost. No Library service. No local authority sports/leisure centres which are offering amazing services to those who can't afford gym memberships. No Cliffs of Moher visitor centre or Boyne Valley interpretive centre, all of which serve to bring tourist spend into the country etc etc etc.
The equality of humans is written into the constitution. There is no need to create a completely seperate department, with all the ministers costs, and the duplicate senior civil servants and all that goes with it. Any legal issues should be handled by the department of justice. And creating an "equality" department does not mean that it actually does anything to improve equality in any way.
There is no reason for library services to not exist, as this could and even should fall under education, again reducing the duplicate jobs and ministerial positions.
Sports facilities should fall under health and tourist attractions would still be tourist attractions without the department of tourism. Even a visitor center at the Cliffs of Moher would exist if it had been allowed for private enterprises to set up there.
The biggest wastage at government level is in the mid to high level administration, where everything is duplicated ad nauseam. Half the employees of the HSE are non-frontline managerial and admin staff. I believe that it is the same across all government departments. Consolidate departments and admin side of things and you would quite easily reduce numbers by 50%. That's 25% of the public wage bill in savings.
The PDs were no more free market capitalists than the Labour party is. They had their own interventionist agenda that favoured their lobbyists. Conservatism and socialism are two sides of the same coin called interventionism, with the only difference being those that gain. And yes, people want decent public services, starting with health, education and law enforcement. And until these are decent (or even mediocre) the majority of other services should be scrapped or consolidated.The Irish people have firmly rejected the PD approach. More Irish people want to live in a country that provides decent public services to all, than want to live in a desolate, divided wasteland of the haves and the have-nots.
Because if a private enterprise wastes too much it is under threat of going out of business. Because private enterprises have to constantly improve their products to remain competitive. Because private enterprises will scrap products that cause losses.So what's your source for the claim that public wastage exceeds private wastage? What's the source for your claim that private companies provide vastly better services than public ones?
Because government services have no incentive to not waste resources. Because government services are rewarded for providing bad service with increased budgets. Because people do not have a choice when it comes to public services and therefore can only compare to public services in other countries, which is not the case in the private economy.
And as for my proof for private services being better than public, ask anybody in this country if they would rather go to a private hospital or a public one. Maybe some small business owners here can say whether they prefer dealing with the SME Association or the IDA or other government quangos. Or how about sending a parcel with UPS or AnPost, which do people have more faith in when it comes to getting things delivered on time and in the first place. Why do you think people are leaving the ESB and moving to Airtricity; hardly because their service is worse.
As for other services provided by government, these are mainly government monopolies where people do not have a choice and therefore are prohibited from providing any kind of feedback on the service.
It is not just some great theory. The western world came out of serfdom and widespread poverty over 200 years ago. There was little government services or intervention or taxation, and this resulted in the biggest and longest economic boom in human history. That theory is free market capitalsim where only successful enterprises survive and hard work is rewarded.This is great theory, but it just doesn't work in the real world. Have a look at the posts here on AAM, and you'll see customers have just as many problems with their hotel, or their accountant, or their car dealer as they do with their local authority or Govt dept.
I also have encountered terrible services and products, and they have resulted in me not using the specific company again. There is a specific Irish airline that I will never fly with again, but millions of people disagree with me and the company is doing very well.
Private companies can only exist if they succeed in retaining customers, i.e. serving their customers interests in the best way compared to competitors. Unless they do this (or are subsidised by government) they will not make profits. This is the case for any size company, and I'm sure there are a few small and medium size company directors here that can confirm this.
The main point is, that if you have a problem with a hotel, you can choose to not go there again and use another hotel. When you have a problem with a government service you do not have a choice. Each cent you spend or don't spend with private comapnies is a vote, it is a continuous daily plebicite by the consumer; it does not get more democratic than that!
You are assuming that these countries actually have somewhat more equal income. They are often cited by socialists as proof that the welfare state can work. But what is totally ignored is the fact that their private economies are among the freest in the world and their higher tax bands kick in at a much higher rate. This means that they are more capitalist and have less income redistribution than most other countries.I don't think that many people in the Nordic countries, or in Japan have a miserable existance. Compared to us, they are on the pigs back.
And you can confirm that they have been reviewed by peers of opposing views? These are the ones you want to look at, anything else is preaching to the choir.There is none so blind as the one who does not want to see. The evidence (all published, peer-reviewed papers) is all there.
Goethe: "In the newspapers and enyclopedias, in schools and universities, everywhere error rides high and basks in the consciousness of having the majority on its side."
You don't need to go through every point, but you rate the website and the book so high that you should ba able to provide some logical explanation as to why income inequality is apparently such a problem.I'm not going to take you through the evidence, post by post. Go read the evidence or the book. It's all there.
I think you are exposing what you are doing yourself in this statement. You are not acknowledging the facts that previous posters have provided with very relevant examples of countries that have the highest levels of wealth (economically or socially), while at the same time having the lowest levels of income redistribution. These are countries that do very littleif anything to actively reduce the gap between rich and poor. And by doing so, their economies thrive, which makes the poor wealthier.Or to translate - I'm going to ignore the evidence that I don't like, and quote one or two irrelevant examples that disprove another completely different issue.
It should be even more damning on the majority of the western world, that their actions to redistribute income is having the exact opposite effect as what the inactions of a few countries is having.
I know this wasn't directed at me, but how about this. I'll read this book if you read Socialsim by von Mises.You really haven't read anything significant about it. Go read the book. Seriously.
You obviously haven't read the evidence, given your one dimensional view. I've certainly never proposed income equality. However, there is no doubt that wide income inequality is bad for everybody. The evidence is there, whether you like it or not.
No, there is only an interpretation of evidence. But let's say that social consequences of income inequality actually were bad for everyone. I imagine that the solution would be to redistribute income from wealthy to poor members of society through taxation. This would suggest that socialism should have resulted in wonderful places to live in East Germany, Russia, Romania, and today Cuba and North Korea. But this simply is not the case. Quite the opposite happens: when you tax the rich to "improve" the lives of the poor, the lives of everyone trend towards misery. There is no historic proof to the contrary.
Income redistribution is not the solution to improving the wealth of society. Poor African countries would not benefit by redistributing their income; people would still be poor. The western world did not improve economically and socially by redistributing income. It did so through private ownership rights and by becoming ever more productive and making more efficient use of resources. And this process improved the lives of everyone!