Michelle Obama has caught some flak over a recent statement she made in North Carolina: “The truth is, in order to get things like universal health care and a revamped education system, then someone is going to have to give up a piece of their pie so that someone else can have more.” This statement reflects a major difference in how two Americas — call them left and right — view the economy — call it pie.
As American as apple pie.
The left views the pie as fixed. If the rich are getting richer and the poor are getting poorer, the government should take some pie from the rich and give it to the poor.
The right views the pie as variable. If left to their own devices, private entrepreneurs will build wealth, making the pie bigger. If institutions are properly designed, eventually many people will get a share of that wealth. The left derisively calls this the “trickle-down theory.”
