Take 2 people in a closed economy…
A “rich guy” has $1,000 and the ”poor guy” has $0. The total in the closed system is $1,000.
Now, the wonderful merciful government steps in and ‘taxes’ $400 from the rich man and gives this money to the poor man.
Now what do we have? Still only $1,000 in the economy and 2 unmotivated people.
The rich man wonders why he should work so hard or take any business risk when it will just be taxed away from him.
The poor man thinks why should I work? They’ll stop giving me free money if I work.
Now take the same 2 people- and the evil rich man HIRES the poor man to build him a shed.
Now what do we have?
$600 left in the rich mans pocket plus $400 in the ‘poor’ mans pocket– PLUS WE HAVE A shed worth at least $400, – for a total of $1,400+ in this closed economy. And we have a poor man who is more skilled at shed-building than he was before he started. And we have two people who are eager to do this same thing over and over again and create more sheds and other stuff…
THATS CREATING WEALTH AND THAT IS HOW FREE ENTERPRISE CAPITALISM WORKS…