Posts Tagged ‘subsidies’

Basic economics teaches that, Whatever the government subsidizes, it gets more of; whatever it taxes, it gets less of”.

Subsidies for the poor, unemployed, and disabled now serve a record one in six Americans and are continuing to expand. Entitlements often encourage citizens to become idle, unproductive and irresponsible. Instead of discouraging such behavior, subsidies serve to reward it. Economic times are tough, but Americans have historically demonstrated a spirit of toughness and hard work, even when times were tough. Yet recent articles suggest we may be losing that competitive spirit.

“Whatever the government subsidizes, it gets more of”

Consider what is happening to America:

Food stamp use has risen.

USDA data released this week shows that the number of Americans receiving food aid from the Supplemental Nutrional Assistance Program (SNAP) hit another all-time high in August. 45.8 million people — almost 15% of the country — were enrolled in the program, which replaced Food Stamps in 2008. This is only a slight increase from July, when 45.3 million Americans were receiving SNAP help — but a massive 31% jump since June 2009, when the National Bureau of Economic Research declared the most recent recession over. In total, the USDA spent $6.1 billion on SNAP benefits in August 2011, up 8% from the year before.

Headlines abound about increasing numbers of American depending upon Government hand-outs for their existence:

How long will the Government be able to support all these outstretched hands? The outlook is frightening:

New congressional estimates say the trust fund that supports Social Security disability will run out of money by 2017, leaving the program unable to pay full benefits, unless Congress acts. About two decades later, Social Security’s much larger retirement fund is projected to run dry, too, leaving it unable to pay full benefits as well.

“Whatever it Taxes, it Gets Less of”

In order to keep all of these hands happy (and idle), the government has to increase taxes, in effect seizing hard-earned assets of productive people to fund this “congressional re-election assurance policy”.
Peter’s vote is bought with money seized from Paul.

Hard work is not rewarded, while complacency is. So our government continues to generate more and more willfully dependent people, as the statistics illustrate. The productive folks will continue to be taxed, more and more so, and will be de-incentivized to produce, or motivated to take their factories to other countries where productivity is not so severely penalized.

We are increasingly compelled through taxation to subsidize and support the unproductive, the willingly dependent and those who wish to live a life of ease at someone else’s expense.  But inevitably a tipping point is reached where the “takers” overwhelm the capacity of the “producers”! Societal collapse is the guaranteed result. America is tottering near the brink of such a collapse (I believe within 30 – 40 years), and we will see evidences of this future in more instances of societal protests and chaos.

English Philosopher Herbert Spencer (1820-1903) said, “The ultimate result of shielding men from the effects of folly is to fill the world with fools.”  The American Conscience is framed by fairness. However, fairness without a foundation of justice and righteousness will create a nation of fools.

The Bible puts it plainly: If anyone is not willing to work, let him not eat. 2 Thessalonians 3:10 (ESV)

Many that are living on Government subsidies are willing to work, but subsidies and entitlements have qualified that to mean only at a certain pay scale, otherwise it is just as profitable to stay at home and draw from the Government coffer. Once again, the Bible offers this advice: “Why should a fool have money in his hand to buy wisdom when he has no sense?” Proverbs 17:16. Indeed, fools have no sense if they believe it is better to live off the Government than lead productive lives of self-sufficiency.

The Bible describes a fool as one who is complacent “the complacency of fools destroys them” (Prov 1:32). Complacency leads to idleness and unproductive behavior. It will destroy us! Foolish policies that encourage idleness and dependence will bring folly upon our nation. For when we take the steps required to limit subsidies, we will discover the meaning of this Proverb (17:12): “Let a man meet a she-bear robbed of her cubs rather than a fool in his folly”.

By the time we decide action must be taken, it will be easier to fight off a mama bear than to take away the benefits that the fools have become used to. The folly of subsidies will be so ingrained that it will be impossible to change them without grave societal impact. Meanwhile, Congress is catering to fools, and is becoming foolish themselves. They all babble about what must be done, but no one wants to run the risk of alienating the ‘electorate’. But the words of Proverbs 10:10 are true:  “a babbling fool will come to ruin”.

“In all toil there is profit, but mere talk tends only to poverty. The crown of the wise is their wealth, but the folly of fools brings folly. Proverbs 14:23-24

We are engaging in the Politics of Folly and run the risk of destroying the greatness that was once America. Instead of foolish politicians, we need men of courage and righteousness to act as if the future of our children depend upon it!

Indeed, it does!