I intend to write more about foundations, but Mr Obama’s speech this evening, and this article by Peter Morici demand some commentary.

Mr Morici does an excellent job of describing the practical effects of Obama’s economic proposals.

The economics is simple, and beyond question. Raise the price of hiring, you get less hiring. Raise the difficulty of starting and running a business, and you get fewer businesses. The truth is that if you raise taxes on “the rich”, you not only end up with less investment, you end up with those “rich” putting more of their effort into making sure the tax man can’t lay hands on what they’ve earned. Don’t kid yourself – they have options, which include not working so hard.

Our society is built on the idea that the limit on what you can accomplish is only you – your talent, skills, effort, and tenacity. Those who push “soak the rich” policies follow another ethic: “You didn’t earn it. If you have something I don’t, I have a right to take it from you”. Those in power get to decide what’s “fair” – a little like King George did. Nothing is safe from the envy of your neighbors. Covetousness is transformed from sin to virtue.

The reason “soak the rich” is bad policy is not because of inefficiency or bad “economic outcomes”. It’s because it’s wrong. Private property has to mean something, or we are all serfs in service of the King.