In 1998, as a state senator in Illinois, Obama said:
"I think the trick is figuring out how do we structure government systems that pool resources and hence facilitate some redistribution because I actually believe in redistribution, at least at a certain level to make sure that everybody's got a shot. How do we pool resources at the same time as we decentralize delivery systems in ways that both foster competition, can work in the marketplace, and can foster innovation at the local level and can be tailored to particular communities."
Competition, markets, innovation? If he's sincere, that doesn't sound too Marxist.
Pooling of resources always means redistribution, whether intended or not. When insurance companies pool the premiums of participants, it is to provide money to those with a valid claim and withhold money from the rest. That's redistribution. Of course, in this case people are voluntarily pooling, not like the health care mandate to pool.
Buying a house necessitates paying local property taxes, which are pooled and redistributed to fund education of some people's children but not to fund those who have no children.
The only type of government activity that does not result in some redistribution is that funded solely by a user fee. And that would be hard to assess and collect for many of the functions of government, like national security.
Wil Wilkinson is also very good on this point today: http://www.economist.com/blogs/democracyinamerica/2012/09/distributional-politics-and-growth?fsrc=scn/tw_ec/making_and_taking
Posted by: Mark D. White | September 21, 2012 at 12:25 PM