"The effects of redistribution are completely dwarfed by the effects of technological progress on long run economic growth."

"During the late 1920s, the living standard of American blue collar workers was far higher than 100 years earlier. And yet almost none of the 'progressive' ideas advocated by leftists had been put in place. There was no minimum wage, no federal unemployment compensation, no [Health & Safety Act], [no 'wealth taxes']and labour unions were fairly weak. In 1929, the federal government spent only a bit over 3% of GDP.
    "When trying to understand living standards, it is more helpful to focus on output, not money... As American industry began churning out vast quantities of consumer goods, it was almost inevitable that the living standard of the average American would rise sharply. If Apple and Samsung produce a billion phones, then lots of people will end up owning smartphones.
    "That’s not to say that income distribution plays no role in living standards... But the effects of [re]distribution are completely dwarfed by the effects of technological progress on long run economic growth."

~ Scott Sumner, from his post 'A Rising Tide Lifts Yachts and Rowboats'