(another excerpt from the past)
The costs of implementing, enforcing, and complying with every government action are significant. Any tax on businesses or individuals, any social program, any regulation that mandates safety or health benefits, any environmental legislation, any action at all has the same effect. The costs of these actions are borne by businesses, as well as by everyone who relies on being employed by business or on the products created by business--i.e., by all members of society. Any business which cannot support the higher level of costs will fail. Any prospective business which is unable to earn the higher rate of return that is required because of the increased cost level will never even be created.
As the number of business failures rises, a nation's total output must fall. This reduction will result in higher prices for those goods still available. The cost of government actions to offset these price increases (e.g., cost of living increases for retirees and government employees, unemployment compensation) will speed the decline.
By reducing the number of viable enterprises, the cost of every government action reduces the amount of competition faced by a nation's remaining businesses. Competition, however, supplies the pressure which prompts the innovations that any society requires to manage its scarce resources. Without this pressure, enterprises are allowed to continue using inefficient processes. By increasing the costs which businesses must bear in order to survive, governments effectively reduce the number of new technologies which can be afforded, technologies that would have improved the living standard of its citizens. When the evolutionary pressure of competition is completely checked, innovation will stop and society will deplete its usable resources.
The problems which plague a nation will worsen as the competition faced by its industries decreases and the investment they make in innovative technologies declines. Government's predictable reaction--to further its "resolve" by implementing additional mandates--will only make matters worse. This is the vicious cycle which is already being experienced in the socialized nations of the world.
As the socialized economy spirals downward, the nation's wealth will become concentrated in a small group of citizens--the owners of those businesses which are still able to cover the high costs that government imposes upon them. As the cost level rises, fewer and fewer of these businesses will survive, concentrating the wealth even further.
Fewer businesses mean fewer jobs, thereby increasing the competition for those jobs that remain--and forcing the nation's wage level ever lower. The citizens of a socialized nation, whose purchasing power declines due to rising prices, will find that their earnings follow the same downward path.
This cycle will result in an accentuated disparity between the ever-decreasing number of the extremely rich and the ever-increasing number of the extremely poor. The so-called "dichotomy" between rich and poor is an inevitable result of the costs which government imposes on the creation of opportunity, and will only worsen as government's scope of influence grows. [In a nation which does not limit the opportunities of its citizens a normal distribution of earnings can eventually be expected; every time the rate of return required by businessmen is reduced their incomes will decline as well. At the same time, by increasing the demand for laborers, reductions in the required rate of return act to increase the wages businessmen must pay. Any limitations whatsoever will increase the required rate of return and skew the distribution, reducing the number of affluent citizens and increasing the number of impoverished ones.]