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Talk Back on Pie

Posted: August 2, 2012 at 5:00 pm   /   by

This Freedom Foundation video takes on a subject that we have covered in these pages numerous times: the “fixed pie” or “zero sum game” fallacy. Essentially, this is the left’s contention—as seen in their statements and their policies—that available wealth is of a fixed amount, and that one person can only get rich at another’s expense.

Even if there weren’t an historical and economic record to prove the fallacious nature of this argument, common sense should be enough. If the economic pie is fixed, then we’d have the same amount of wealth as we did when economics began. In other words, we’d have the same five jobs and the same handful of seashells once used by cavemen as money. The reason we don’t have that is because the pie grows. One man doesn’t get rich at another’s expense—one man gets rich by growing the pie.

It’s so simple, only a statist could fail to grasp it.