Yellen’s false premise
Federal Reserve Chair Janet Yellen’s recent remarks about widening income inequality ( “Income inequality pains Federal Reserve Chair Yellen” ) are chilling reminders that economic freedom is under attack by our misguided leadership.
Those who complain about income inequality imply that the super-rich cheated the poor to obtain their wealth. Therefore, they reason, these ill-gotten fortunes should be taken away and “restored” to the deserving poor.
This notion is based on the false premise that the economy is a zero-sum game where, when someone makes more money, someone else gets less. In their eyes, the economy is a pie that never grows and their solution is to give everyone an equal slice. In reality, the economic pie is always growing because of the billionaire innovators and industrialists who make everyone’s slice bigger.
So the real solution is to encourage, not punish, the successful, because it is better to have a smaller slice of a huge pie than a bigger slice of a small pie.
The writer is vice chairman of the Allegheny County Republican Committee.