THE LIBERAL HAT TRICK OF IGNORANCE, ENVY, AND DELUSION
Have you ever wondered why so many people see higher taxes and more government as the solution to every problem, despite the empirical evidence that more government reduces economic efficiency and growth, plus diminishes our liberties?
As will be shown, the arguments from the big government advocates are usually based on a combination of economic and historical ignorance, envy, and just plain delusional thinking.
The New York Times editorial page has long been a bastion of this delusional thinking. On April 24, the paper produced one of its classic inane editorials in favor of higher taxes on labor and capital, which contained this gem of a sentence: "Memo to McCain: 401(k) savers get no benefit from a low capital-gains [tax] rate."
Everyone who has ever taken basic economics should know a lower tax rate on an investment (i.e., the capital-gains tax) will lead to a higher rate of return, and hence the investment will be worth more. Though this concept is not difficult for most people to understand, it seems beyond the knowledge and reasoning ability of those who write editorials for the New York Times.
Unfortunately, the Times has plenty of global company when it comes to economic ignorance, envy and delusional thinking. We find it among many politicians in almost every government world-wide.