Ken Schoolland, Ken.Schoolland@gmail Shanghai, China, 2012

1. Ken Schoolland, Ken.Schoolland@gmail.com Shanghai, China, 2012

2. ISILThe International Society for Individual Liberty Instruction Liberty Camps8 Countries 71 Publications47 Languages 3 Plays, Radio, 2 Audiobooks On line 44 Languages

3. Income Redistribution:Welfare vs. Charity By Ken SchoollandNortheastern UniversityShenyang, China July 2012

4. Income Redistribution:Charity vs. WelfareCharity: Voluntary ChoiceWelfare: By Force

5. John Maynard Keynes & The Robin Hood Effect “There is a legitimate function of government to redistribute income by taking money from the rich and giving it to the poor.”

6. Lorenz Curve PercentOf Income 100%75%50%25%0% 0% 25% 50% 75% 100%Percent of Population

7. Lorenz Curve PercentOf Income 100%75%50%25%0% Perfectly Equal IncomeDistribution 0% 25% 50% 75% 100%Percent of Population

8. Lorenz Curve PercentOf Income 100%75%50%25%0% Perfectly Unequal IncomeDistribution 0% 25% 50% 75% 100%Percent of Population

9. Lorenz Curve PercentOf Income 100%75%50%25%0% Perfectly Equal IncomeDistribution Perfectly Unequal IncomeDistribution 0% 25% 50% 75% 100%Percent of Population

10. Lorenz Curve PercentOf Income 100%75%50%25%0% Perfectly Equal IncomeDistribution Perfectly Unequal IncomeDistribution Actual 0% 25% 50% 75% 100%Percent of Population

11. Lorenz Curve PercentOf Income 100%75%50%25%0% Keynes &Robin Hood  0% 25% 50% 75% 100%Percent of Population

12. The Critics:1. The Practical: Power Critics2. The Humanitarian:Productivity Critics3. The Philosophical:Ethics Critics

13. Power Critics & The Sheriff Effect:Who has more political power?The Poor ___The Rich ___

14. Lorenz Curve PercentOf Income 100%75%50%25%0%  PowerDistribution 0% 25% 50% 75% 100%Percent of Population

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16. The Tale…

17. FREE TRADE VS. PROTECTIONISM

18. Iron Triangle Sugar Farmers $3,000,000,000 Subsidies & Trade Barriers $2,000,000 Contributions & Lobbying $1500 / $1 Government Agencies Politicians $ millions in Taxpayer Funding

19. CAUSE & CONSEQUENCE OF INFLATION

20. REDISTRIBUTIVE EFFECTS OF INFLATION Winners Losers (Gov) debtors --fixed income (Gov) real estate --savers (Gov) gold --pensioners (Gov) foreign currencies --creditors (Gov) museum collectibles (Gov) printers of money 

21. Iron Triangle Financial Institutions $305,000,000,000 Taxpayer Bailout $114,000,000 Contributions & Lobbying $2675 / $1 Government Agencies Politicians $ millions in Taxpayer Funding

22. The Power Critics “Those with power may say they are helping the poor, but will take from both rich and poor to give to the powerful.”

23. 2. The Productivity Critics On which side of government house would people generally prefer to be on?The paying in side? The taking out side? IN OUT ¥ ¥ Government House

24. 2. The Productivity Critics On which side of government house would people generally prefer to be on?The paying in side? The taking out side? LESS IN LESS OUT ¥ ¥ Government House

25. 2. The Productivity Critics On which side of government house would people generally prefer to be on?The paying in side? The taking out side? NONE IN NONE OUT ¥ ¥ Government House

26. Now: Equal distribution: Income: $100 B Income: $100 B 1/2 population $75 1/2 population $50 1/2 population $25 1/2 population $50

27. Now: Equal distribution: Income: $100 B Income: $100 B 1/2 population $75 1/2 population $50 1/2 population $25 1/2 population $50 ________________________________________ Future: Keynes Income: $50 B 1/2 population $25 1/2 population $25 Atlas Shrugged Effect

28. Now: Equal distribution: Income: $100 B Income: $100 B 1/2 population $75 1/2 population $50 1/2 population $25 1/2 population $50 ________________________________________ Future: Income: $200 B Keynes Income: $50 B 1/2 population $150 1/2 population $25 1/2 population $50 1/2 population $25

29. Now: Equal distribution: Income: $100 B Income: $100 B 1/2 population $75 1/2 population $50 1/2 population $25 1/2 population $50 ________________________________________ Future: Income: $200 B Keynes Income: $50 B 1/2 population $150 1/2 population $25 1/2 population $50 1/2 population $25 More Charity Less Need

30. A. More income, but unequal income: ___ B. Less income, but equal income: ___ Which society would you prefer? ________________________________________ Future: Income: $200 B Keynes Income: $50 B 1/2 population $150 1/2 population $25 1/2 population $50 1/2 population $25

31. 2. The Productivity Critics Even if income could be distributed equally, the poor would not have more income in the future. Unequal distribution, based on productivity, is an essential incentive for growth.

34. Desire is not enough Productive citizens Regulations Spending Red tape Tax Big government Nationalisation Controls Laws Officials Welfare

35. 3. The Ethics Critics

36. A B ¥ Is it okay for A to forcibly take ¥ from B? Yes ___ No ___

37. C A B ¥ Is it okay for C to ask A to forcibly take ¥ from B? Yes ___ No ___

38. C A B ¥ Is it okay for C to ask A to forcibly take ¥ from B? Yes ___ No ___

39. Actions vs. Numbers The Ethics Critics say “No.” If it is wrong for one person to do something, then it is also wrong to ask another to do it for him. If it is wrong for one person to do alone, then it is also wrong for large numbers of people to do. The act is the same, whether done by one or by many.

40. 3. The Ethics Critics The Philosophy of Liberty