Whatever Happened to Justice Ch 39

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Questions and Answers

What was a direct outcome of people knowing they could save, invest, and plan ahead?

  • A reduction in cultural activities
  • An increase in poverty rates
  • A decline in charitable organizations
  • A rise in generosity among people (correct)

Which of the following organizations is NOT mentioned as originating during the same period of charitable activity?

  • YMCA
  • YWCA
  • Salvation Army
  • National Wildlife Federation (correct)

What does majority rule lead to, according to the content?

  • Stable tax rates
  • Reduction in charitable contributions
  • Arbitrary law and high taxes (correct)
  • Increased financial security

What indicates the charitable spirit of Americans during the period described?

<p>Their knowledge of financial stability (B)</p> Signup and view all the answers

What cultural development accompanied the rise of charitable organizations?

<p>The establishment of art museums and public libraries (D)</p> Signup and view all the answers

According to the content, how did common law principles impact people's security?

<p>They maintained people's financial security (D)</p> Signup and view all the answers

What is implied as a consequence of capital flight?

<p>A loss of wealth and resources in the country (D)</p> Signup and view all the answers

What is capital flight primarily defined as?

<p>The movement of money to avoid taxes (D)</p> Signup and view all the answers

According to the content, what effect does capital flight have on employment?

<p>It results in job scarcity. (C)</p> Signup and view all the answers

What was a consequence of increasing tax burdens on taxpayers?

<p>Increased welfare bureaucracies (B)</p> Signup and view all the answers

How does Ralph Waldo Emerson’s statement reflect on poverty?

<p>It implies poverty could be alleviated through industriousness. (B)</p> Signup and view all the answers

What is implied about the role of private charities before the Great Depression?

<p>They were sufficient to address poverty. (B)</p> Signup and view all the answers

What is one reason given for why poverty persists in certain regions?

<p>Existence of capital flight (D)</p> Signup and view all the answers

What does the content suggest would reduce poverty in a just economy?

<p>Reinforced enforcement of laws (D)</p> Signup and view all the answers

What can be inferred about the relationship between high taxes and personal spending?

<p>People may engage in capital flight. (D)</p> Signup and view all the answers

Flashcards

Financial Security & Generosity

The ability for individuals to save, invest, and plan for their future, leading to financial security and the potential for generosity. This promotes a culture of giving and philanthropy.

Majority Rule

The principle that the majority rules and makes decisions, potentially leading to arbitrary laws and high taxes.

Capital Flight

The practice of investing in or moving capital to a country or region with a more favorable legal and economic environment.

Common Law

A legal system based on precedent and custom, developed through court rulings and judicial decisions unlike codified law.

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Secure System, Generous Citizens

The concept that the more secure a nation's legal and economic system is, the more its citizens are likely to engage in philanthropic activities.

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Cultural Growth

The rise of cultural institutions like art museums, opera houses, symphonies, libraries, and public libraries in both major cities and smaller towns.

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Charitable and Public Service Organizations

Organizations dedicated to charitable or public service work, often providing aid to those in need. They can be religious or secular.

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Money Hiding

The act of hiding or concealing money to avoid paying taxes.

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Welfare Bureaucracy

A government's efforts to support people who are struggling financially.

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Poverty

When a person is unable to meet their basic needs for food, shelter, and clothing.

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Free and Just Commonwealth

A system where people are free to make their own choices and where the government plays a limited role in the economy.

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Taxes Cause Poverty

High taxes can discourage businesses from investing and creating jobs, leading to fewer opportunities in the economy.

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Productive Assets

Investments that create tangible assets such as factories and office buildings, providing jobs and boosting the economy.

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Non-Productive Assets

Items that can be easily concealed or moved, such as diamonds, art, or gold, often used as ways to store wealth.

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Study Notes

Unsolved Problem: Poverty

  • Poverty is an unsolved problem, exacerbated by a complex interplay of factors, including inflation, recessions, and investment cycles.

  • A significant contributing factor to poverty is the increasing tax burden globally, forcing individuals to engage in capital flight.

  • Capital flight is the act of hiding or sending money to tax havens, which in turn stymies job creation and, consequently, exacerbates poverty.

  • This trend is particularly prevalent in underdeveloped countries.

  • High taxes often lead to a decrease in economic activity as people seek ways to avoid them.

  • The link between capital flight and poverty is undeniable, especially in relation to the availability of food and health resources.

  • Emerson's quote highlighting the correlation between diligence and prosperity in a just commonwealth suggests that a fair and just economic system is crucial for combating poverty.

  • Milton Friedman's work showcases the historical prevalence of private philanthropy in societies with a strong emphasis on individual liberty and economic freedom fostering charitable activity.

  • High taxes, arbitrary laws, and capital flight under a majority rule system hinder individual economic security and generosity.

  • Historically, a culture underpinned by economic liberty fuels charitable giving and cultural enrichment, exemplified by the boom in philanthropic institutions and cultural activities in the 19th century.

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