Thinking it Through

What is the infantile lack of ability to think things through that afflicts a considerable number of people these days? For instance, spreading the wealth, Robin Hoodism if you will. Taking from the rich to give to the poor or more bluntly Socialism. This, at first blush, may sound like a good scheme. After all don’t the rich have more than enough money to fully support at least some of those less fortunate? The answer is probably in the affirmative. Sure they do. So, how is it that we manage this massive transfer of wealth? We know that if the government manages it, a whole new bureaucracy will be needed and the cost of that alone will consume the majority of the transferred wealth. How much do we take from the rich and how much do we give to the poor? Who decides who is rich and who is poor? How many people who are close to the poor line and working 40 plus hours a week would quit their job and take a little less money not to have to work at all? All these folks not working will definitely affect the job market as there is less people to hire and when a business hires it will cost them more to pay the employee so their profit margin either goes down or they must raise their prices. If the business owners accept a lower profit margin then they have less wealth to transfer so they must lower their standard of living. The employee who will no longer get his annual COLA or any raises must now accept his place in life and soon he will see the merits of not working at all for less money.

It is not difficult to see the vortex that is created here. Sooner or later the system reaches the point of diminishing returns, where it can no longer support itself and falls apart, leaving those on the dole with no income whatsoever; hungry and on the street, they will have no skills and they won’t be happy.

If you think any government program through, you wind up with similar results. Why? Well, one reason is because the government has no money of its own. Whatever the source, the funds eventually come from the consumer. Import, export taxes, income taxes, sales taxes, property taxes, etc, etc, etc. And don’t forget fees that are taxes by another name that require a smaller percentage of votes to pass on to us. Any money the government has, either directly or indirectly, comes from us. Even if they print more of it, our debt increases and who is responsible for that? You guessed it, you and me. The only money the government has originates with you and me. This cannot be anymore clear. Any time the government gets involved in any program, the price of that program goes up, if for no other reason than the bureaucracy that must be created to manage it. Even as small a business as I own, when gasoline prices went to $4.00 per gallon, I didn’t pay for the increase, my hourly rate went up appropriately. When larger businesses receive cost increases, they pass it on to the consumer. It doesn’t work any other way.

There is no such thing as a government funded program. There are only consumer/ taxpayer funded programs, period. The next time some politician talks about a program to benefit a certain group of people, grab your wallet. If he is bringing to this state large money for special projects, grab your wallet. It is all our money and we deserve better management of it. Think it through.