Wednesday, February 21, 2007

Anything Socialism Can Do…

Capitalism with redistribution can do better. New case in point:

Nearly a century after it was founded, Israel's first and most famous kibbutz has voted to give up its early socialist ideals and to privatise itself.
. . .
In return they will have to pay for services such as electricity and water and they will have to pay a progressive income tax into the kibbutz which will be used to support the least well off.

When the kibbutz decides to start using the tax revenue to subsidize wages, instead of a pure transfer, we will all be in trouble.

Hat Tip . . . Wait for it . . . . Luskin