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An economy is driven by production, not consumption.


Sure. But the standard way of driving production is private consumption. Given that you have disincentivized the poor from consuming, what is the counterbalance that incentivizes the rich to produce?

(There are a couple of standard answers, including government consumption / public works projects, that can address this.)


Private consumption is only possible due to productivity gains due to capital investment. Venezuelans can't just vote to redistribute nonexistent wealth or declare food to be a human right and magically have sufficient food appear.

Food comes from capital investment in farms, factories, etc. That is real wealth.

>There are a couple of standard answers, including government consumption / public works projects, that can address this.

These answers don't work, and are great at destroying wealth.


Note that a sales tax as only tax means no income tax, so overall a gain to production incentives.


An economy is driven by free money.




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