Best Quote IV  

Posted by RogueDash1 in ,

This one comes courtesy of Margaret Thatcher:

The problem with Socialism is that you eventually run out of other people's money.

This should be an obvious observation, but it seems that many people are unable to wrap their head around the idea that taking money from one group and giving it to another group does not change the amount of money. That means it is impossible to stimulate the economy by 'spreading the wealth.' Those who had the money taken away would have spent it on something, or saved it in a bank, who then would have loaned it out. Either way, the money gets spent, whether you spread it around or not.

But throw in the lost productivity associated with transferring that wealth through a bureaucracy and you are actually shrinking the economy.

Hat Tip: House of Eratosthenes
(As an aside, I did get the idea for Best Quote from Freeberg's Best Sentence I've Heard or Read Lately.)

This entry was posted on Thursday, January 29, 2009 at Thursday, January 29, 2009 and is filed under , . You can follow any responses to this entry through the comments feed .

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