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

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.