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During the last two administrations, there has been a lot of talk about redistribution of wealth. But what does it mean? Actually, there are a number of things our central government does to redistribute wealth.

One method is by increasing the number of people drawing social services: subsidized housing, free medical and dental, free telephone, free vehicle, subsidized utilities, food stamps, free public transportation, just to name a few.

In any given economy, the amount of goods and services is finite. When government intervention causes those goods and services to be distributed among a greater number of persons, scarcity sets in and drives up the price. The scarcer something is, the higher the price. Remember these people do not contribute; they just receive. That’s redistribution of wealth.

That is bad for the wage earner and anyone on fixed income because it means they must spend more of their income to receive the same goods and services.

Our central government also redistributes wealth by what is called Quantitative Easing, or QE; the Fed prints more fiat money. Fiat (not a car) simply means currency backed by nothing but the government’s word. That in itself sounds scary, doesn’t it?

With QE, more dollars chase after the same finite goods and services as before QE, driving up prices and driving down your buying power; hence a further redistribution of wealth.

So, when Uncle Bernanke’s Fed says it’s going to help the economy with another QE, and consequently you have to pay more at WalMart and the gas pumps, who do you think is being helped?

Two other ways our government redistributes wealth is by wasting your tax dollars on private investments doomed to fail from inception and corrupt foreign governments. Ever hear of Solyndra? What about Greece?

Think about all this when you enter the voting booth on November 6!


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