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Sunday, November 3, 2013

Liberals Don't Understand Incentives

Liberals think if you raise taxes, you'll get more money. When this fails to happen, as it always does, the react in astonishment. They simply cannot understand that if you tax more, you create an incentive to either earn less or hide your income.

Likewise, they cannot understand why giving poor people money fails to end poverty. If you give poor people money, you give them an incentive to remain poor. It amazes me still how adults can consistently fail to understand these very simple concepts.

If you go to a national park, you will see many signs warning visitors not to feed the animals. The reason is if animals get used to getting food from people, they associate people with food, follow them around and become a nuisance.

 People aren't all that different. If the government gives them money, they forget how to work for it, beg the government for more, and become a nuisance.


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