Title: Practice what you preach: the failure of the welfare state and the discovery of total equality through capitalism

Authors: Jeffrey Overall

Addresses: School of Business, Nipissing University, Canada

Abstract: Using the Frankfurt School of Critical Theory and organisational theory as the theoretical foundation, I show how excessive taxation creates disincentives for individuals to reach their full economic potential. According to findings from the extant literature and, also, a case example from the Canadian economy, high taxation is shown not only to cause a decline in entrepreneurial activity, but also to lead to the perpetuation of the marginalisation of the economically disadvantaged. It further results in an unfair distribution of wealth from the high-income households to the low- and middle-income earners. To address this sociological predicament, total equality for all members of society is argued to be achievable through free-market capitalism. Future directions are suggested and recommendations for practice are discussed.

Keywords: bounded rationality; free market capitalism; critical theory; entrepreneurship; organisational theory; socialism; taxation; welfare state; Canada; total equality; excessive taxation; entrepreneurial activity; marginalisation; economically disadvantaged; distribution of wealth.

DOI: 10.1504/IJPP.2017.081049

International Journal of Public Policy, 2017 Vol.13 No.1/2, pp.69 - 85

Available online: 05 Dec 2016 *

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