This flyer was found in an American high school:
(Hat tip: TheBlaze)
If you don’t see the absurdity of this, it’s because you’re probably not looking at the big picture.
One of the immediate questions you should have is: Where did the machine come from that makes money?
This is why Communism tends to be acceptable to those of limited curiosity or ingenuity. Without an understanding of where the machine came from, they think that the workers somehow own the output of the machine.
Those of us who build these kinds of machine, that is, anything which produces things and services people actually want, understand how hard it is to build a machine, and understand that the likelihood of success is very low. It doesn’t help that we have a government that seems intent on making this invention process much harder than it need be.
Also missing from the picture is what the fat man with the cigar does with the money he makes. Not pictured are the millions of other machines being built, each of which requires money and capital to be poured in. Some of these machines are quite risky: medical procedures, medicines, high technology, etc… all entail a fairly high level of risk. When the fat man does happen to fund a machine that actually works, he is going to milk it as much as he can not only to recover his investments, but to fund even more future investments.
Should the fat man decide that he wants to retire from entrepreneurship, what does he do? Why, he spends his money on things he wants: fancy cars, big boats, luxury homes with full staff. The money he spends here ends up in purchasing the products of these machines, some of which end up in the pockets of the workers, and the rest of which ends up in the hands of the owners of these machines. Ultimately, all of this consumption spending filters down until it ends up as wages for someone somewhere.
If he decides, instead, to save his money for a future day, he will do so by putting his money into an offshore bank account, buying secure investments, such as government bonds, or even purchasing commodities such as gold and silver. Again, where does the money end up? In all cases, it ends up in the hands of workers.
The capitalist understands that there is only one natural resource—labor. And he understands that it takes real money, real capital, food, clothing, resources, to purchase that labor. When capitalists have lots of capital at their disposal, they buy up as much labor as they can, and the laborers end up in the middle of a bidding war. This has only positive benefits for the laborer. They are the one thing of actual value in the world, the one thing that every greedy capitalist wants to get their hands on. Just like bidding for expensive works of art, the capitalists bid against each other for your time and effort.
When capitalists do not have much capital, or when people who have the capital decide it is not a good idea to spend the money right now, then the laborers lose in the bidding war. Ultimately, they end up completely unemployed. No capitalist is willing to risk spending their money at that time to hire them to work machines and build the materials and services people want. There are a number of reasons why this happens, not the least of which is that the government is providing the best investment opportunity right now because they are bidding for the same dollars that the workforce is. And when the government spends money, it isn’t ever to create even more wealth; it’s only to buy votes or to actually do the things we asked the government to do for us because we don’t think it’s worth our individual sacrifice to do. In other words, their return on investment is always negative.
Right now, in the US, we are in the middle of one of those great wealth-burning exercises. The private economy has to compete with the statists’ mad power grabs. They are trying to create an ever-large government to fund their every-grander vision of the future. In doing so, they are sucking up all the capital resources they can, and in the process, destroying out private economy.
What needs to happen, and quick, is we need to cut government spending, reduce government regulation, reduce government taxes, and end government borrowing. We need cuts across the board that we have never seen in our nation’s history. If we cannot do this, but instead insist on growing our government despite the faltering economy, we will quickly see how great nations fall.