This is a response to Carpe Diem’s quote of the day: http://mjperry.blogspot.com/2012/09/quotation-of-day-fallacy-of.html
The major problem today is the way in which redistribution occurs.
As Give and Take Economics shows us, to maximize wealth, personal total cost and personal total benefit must always be coupled – our current systems break this bond and weaken wealth building for everyone.
Taxes shouldn’t be tied to income or consumption. They should be a combination of evenly distributed flat taxation for services utilized by everyone (such as defense) at a level voted on directly by the majority, supplemented by user-fees (i.e. bridge tolls) where direct use can be determined. To ensure transparency, taxes should be gathered for specific programs, not just swept up en masse.
For those that can’t afford their allocated share of taxes to support the infrastructure of society, there needs to be an opportunity to ‘pay taxes’ by providing services to society–working on road repair crews, administering government programs etc. Realizing that most government jobs should be such workfare roles vs. ‘careers’, removes the biggest redistribution that deteriorates wealth domestically.
On a different level, the biggest redistribution problem today is that the West has signed up for imbalanced trade with China. The result is the massive redistribution of wealth to the East and a hollowed out middle class with no jobs at home. Balanced trade is required immediately. Any trade other than balanced trade distorts and reduces wealth in the long-term.