I sent the following letter concerning wealth to the Daily Beacon, the University of Tennessee’s student newspaper, on February 15, but it was never printed:
Sam Smith’s February 15 column was illogical and economically ignorant. He begins by declaring that the federal government spends too much. His only solution to this problem: increase taxes on the wealthy. Low taxation does not water the root of our growing federal deficit–excessive spending is its true life-source. Over the past twenty years, federal spending has tripled. Because no level of taxation can keep up with this exuberant trend, the only realistic solution is to stop the government’s spending spree.
Smith then points his wayward cannon at the “excessively” wealthy, blasting the likes of Lane Kiffin, an easy target in this media market. It is a contradiction in terms to speak of “excessive wealth”; there is no such thing. An individual who gains wealth through productivity or capital investment, regardless of selfishness, benefits everyone else in the process, by meeting the demands of consumers. Moreover, the initial investment of wealthy consumers eventually allows even the poor to enjoy life’s luxuries. If there were no one “excessively” wealthy enough to buy the first television sets, the first computers, or the first cellular phones, then inventors would have toiled fruitlessly, and no reinvestment into their innovations would have taken place. Without the “excessively” wealthy purchasing high-dollar goods, we would not know many of the technologies we enjoy cheaply today.
Smith echoes many of my professors, who complain that the football coach earns too much money. This is in truth a lament over the rights of individuals to consume freely; it assumes that people who choose to watch football are somehow guilty of injustice. To the professor of this mindset, I offer a promise: When you attract 100,000 people to pay $50 a head to sit through one of your lectures, the University of Tennessee will kindly add a zero or two to the amount on your paycheck.