People are paid according to the value their talents and work ethic bring to society.
In a free market, this statement is necessarily true at all times. It can never be that a person is paid more than the value their talents and labor
brings to society because all profits are ultimately derived from the value society places on the goods and services a firm produces. The wages of a
firms employees are allocated according to value of each individual laborers skills in relation to the supply and demand of that particular skill
If someone has a highly productive talent that enables a firm to expand its production exponentially based on their particular skill set, they will be
rewarded with a huge payday. If they aren’t, that person will take their talents elsewhere where they will be rewarded commensurate with their
It is ONLY through the violence of government that an individual actor could possibly make more than the value of the productive contribution they
bring to society.
Let us go through a few case studies that highlight this fact.
Drug dealers are over-paid in accordance to the value they bring to society. The violence of government against innocent consumers and producers
creates artificial shortages of a product that is in high demand. Because of the increased risk and artificial shortages created by government
violence against drug dealers/consumers, drug dealers can afford to charge a large premium on their product. Without the war on drugs, drug dealers
would make as much as any other unskilled retail clerk.
Wall Street financiers are over-paid in accordance to the value they bring to society. The violence of government imposed fiat currency laws and the
violence of government imposed banking cartels allows private commercial banks to reap the profits of artificially suppressed interest rates, not to
mention the fact that all losses are socialized on to the tax payers.
Without fiat currency laws, government mandated banking cartels, and artificially suppressed interest rates, financiers would earn as much as
warehouse operators. For in effect, real money (gold and sliver) is nothing more than a commodity and banks should operate as nothing more than
warehouses for these commodities. It is only through the violence of government that the Wall Street power-brokers can make as much as they do.
Politicians are over-paid in accordance with the value they bring to society. Since politicians produce nothing and provide no meaningful service,
they necessarily bring no value at all to a society. Their pay is dependent upon either the violent theft of productive members of society through
taxation or through the violence of fiat currency laws that enable them to pay themselves with money they printed themselves.
Educational bureaucrats are over-paid in accordance to the value they bring to society. It is only through the use of government created loan
subsidies that the collegiate bureaucratic apparatus has been allowed to expand as much as it has. In a free society, educational bureaucrats would
be limited in pay according to how much the public was willing pay voluntarily for a college education and on their performance as administrators.
Only successful administrators who ran a profitable educational operation would be rewarded with high pay. The government created loans that are
being pumped into the educational bureaucracy necessarily require violent theft or violently imposed fiat currency in order to exist in the first
War production contractors are over-paid in accordance to the value they bring to society. In a free society, people would be responsible for their
own security and would necessarily buy what was required to maintain their own security on the open market. It is only through government regulation
of arms and through government contracts that arms producers are able to make such obscene profits. In a free market, weapons would be cheap,
abundant, and weapons manufacturers would not make any more than a company that produces shoes.
And on and on and so-forth.
Large imbalances in wealth distribution can ONLY be created through government violence. A free market necessarily limits the wealth any one
individual has to the exact ratio of value their talents and work ethic brings to the society.
edit on 16-11-2010 by mnemeth1 because: (no reason given)