Friday, June 24, 2011

Bastiat on Business - June 24, 2011

Frederic Bastiat on the redistribution of wealth, or what he describes as legal plunder.

In The Law, Bastiat explains that the redistribution of wealth is theft which has been legalized. He explains that anyone can identify legalized plunder by asking yourself the following:

"See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime."

The Law and Charity

Exerpt from "The Law" by Frederic Bastiat
Translated from the French by Dean Russell
Published by: Foundation for Economic Education - Irvington-on-Hudson, New York

You say: “There are persons who have no money,” and you turn to the law. But the law is not a breast that fills itself with milk. Nor are the lacteal veins of the law supplied with milk from a source outside the society. Nothing can enter the public treasury for the benefit of one citizen or one class unless other citizens and other classes have been forced to send it in. If every person draws from the treasury the amount that he has put in it, it is true that the law then plunders nobody. But this procedure does nothing for the persons who have no money. It does not promote equality of income. The law can be an instrument of equalization only as it takes from some persons and gives to other persons. When the law does this, it is an instrument of plunder.

With this in mind, examine the protective tariffs, subsidies, guaranteed profits, guaranteed jobs, relief and welfare schemes, public education, progressive taxation, free credit, and public works. You will find that they are always based on legal plunder, organized injustice.

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