Chingo De Dinero

One important aspect which I left out of “Push vs Pull” was the dynamic aspect of the economy.  The rules of the game determine how people play.  A result of the push method is the inability to improve the amount of resources you control.  In plan terms, you are taxed so hard that even if you work harder you will not have more money.  People are not dumb, if they are in this situation, they work less, be it right or wrong, we are here for us, and are all concerned about ourselves.

So, not to get too deep in social theory and what is best, economically there is an impact.  People will work harder in a pull system because the harder they work the more resources they can control.  These resources could be directed towards a new car, bigger house, cure AIDS, help the poor, or any other activity.  Over time, the effect of this additional work can become very large.  If you look to the basics, “The Wealth of Nations” one of the main aspects that makes a nation wealthy is private property.  When you have private property, you can accumulate resources, and control them, which makes you work harder, which in turn generates wealth for the nation.  Additionally, we are more likely to invent or innovate.  If I know I can become very wealthy if I work hard and think of the next great invention, I will work harder to do so.  Maybe I will stay up later than normal, sacrifice sleep, sacrifice parting, etc.  If it would not see the benefit of my work, I would be more inclined to relax, enjoy life, and live for today.  Resulting in the invention never materializing.

In my opinion this result of choosing an economy is just as large as the “fairness” in allocating resources.  It is an investment in the future, which will pay large dividends and benefit society as a whole.