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This week I happened across John Stossel's late night television program in which he was interviewing an author who put forth an interesting concept. If a very wealthy businessman has $100 million extra dollars to use, what would benefit the general public more?
1. He pays that money in taxes to the government?
2. He gives that money to a good charity?
3.. He invests that money in commerce and industry?
The author made an argument for how investment of the money in commerce and industry to help business grow, prosper, expand, and thereby create more jobs would be the most judicious and beneficial use of that money.
The arguments against that concept, however, come from those who consider the wealthy who strive to be even more wealthy as being greedy. They should pay a lot more in taxes for the government to use.
And there is a third group who sees the greatest virtue in giving the money away to those in need via good charities.
So which is right?
None of them. The right invests the money in the Swiss or Cayman Islands to avoid paying taxes, money which said foreign banks loan to foreign business and industry to undercut American commerce.
On the other hand we might look to the Bill and Melinda Gates Foundation and their practices of sharing the wealth.
It really doesn't matter where the money is invested that determines its overall value to society. If invested in the Cayman Islands, it benefits the society there. If invested in the USA, it benefits the society here. Of course we if we want to benefit our own society more than we wish to benefit the Cayman Islands, it would be prudent to make it attractive for the businessman to start, grow, or expand his business here.
As for Bill and Melinda Gates, had they not invested hundreds of millions of dollars in Microsoft or a similar enterprise, tens of thousands of people would not have had jobs with Microsoft, would not have been paying taxes because of Microsoft, would not have had the wherewithal that their income from Microsoft provided that allowed them to give to charity.
But even now, if Bill and Melinda Gates pay $100,000 in taxes, or give away $100,000 through their foundation, or use that same $100,000 to start, grow, and expand another business, which would more likely benefit the most people, i.e. provide the greater benefit to society as a whole?