Asher Sisneros

The topic of this essay is Capitalism, Socialism, and wealth redistribution. 

One of the common criticisms of Capitalism is that it encourages efficiency rather than empathy. In a Capitalist society, people are encouraged to multiply their wealth instead of looking out for their fellow man. Of course, that is just one layer. When accounting for the false presupposition that all Capitalists are inherently greedy, the solution appears to be heavy taxation on the rich and wealth redistribution, i.e., Socialism. While that solution makes sense on the surface, the argument is superficial. 

First, it is a misconception that all Capitalists are greedy. Take the United States, for example. They are a predominantly Capitalist country. That is changing as more of the United States government becomes liberal and embraces a crony-Capitalism, but by and large, it is a Capitalist nation. Over three-hundred-million people live in the United States. Over three-hundred-million people use Capitalism every day. Can all of them be greedy? I do not think so. The countless examples of generosity and kindness in this nation disagree. 

The difference between Capitalism and Socialism is ownership. One system allows citizens to give freely. The other system forces charity. On a human level, people are more moved by the heart than by the sword. Through the implementation of “You have to do x, or else” the government creates resentment. If a businessman were walking down the streets and stumbled upon a starving beggar, he may be inclined to feed the man. If he did, the businessman would likely feel a sense of accomplishment. The same cannot be said if a thief stole from the businessman and fed the poor. The businessman will undoubtedly hide his money to avoid being stolen from again. I use this analogy because wealth redistribution is theft. Not only is it theft, but the repercussions are the same. The businessman who is heavily taxed will find loopholes to secure his money. In this scenario, the beggar starves. 

One may conclude that the solution is to embrace Socialism and destroy loopholes. Then, the topic of it being fair comes up. I am a middle-class citizen, but I can empathize with the rich. I would certainly hate for forty percent of my income to be taxed. I’m sure you would too. Perhaps it’s hard to visualize owning so much capital. I found Arthur Brook’s analogy most helpful. To help his students visualize better, he asked them to disregard the money and replace it with grades. His beautiful suggestion was to redistribute the grades in his classroom. Then, everyone would get C’s.¹ Would that be fair? People are rewarded for the work they do. That goes for in and outside of the classroom.

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(1) Arthur Brooks, Myth Lies and Capitalism: https://www.youtube.com/watch?v=7_7Jv2oh9s4&t=216s