This is what happens when government layers regulations on top of regulations. When it makes it very difficult to start businesses. When it encourages government dependence for electoral reasons. (It does. I hate that it does, but it does.) When government rewards companies which partner with politicians with taxpayer money and favors.This is what happens when the people running the show in Washington abandon the spirit of free enterprise, the spirit of freedom, and instead embrace the languid mediocrity of the welfare state.
No child should be hungry. But the welfare state is not the way to keep bellies full. Non-profits need to be empowered, and government and the dependence it creates must be reduced in a real way. (This must be done over time but with tangible and verifiable milestones. Corporate dependence needs to be cut tomorrow however.)
(From The USA Today)
A higher percentage of children live in poverty now than did during the Great Recession*, according to a new report from the Annie E. Casey Foundation released Tuesday.
About 22% of children in the U.S. lived below the poverty line in 2013, compared with 18% in 2008, the foundation’s 2015 Kids Count Data Book reported. In 2013, the U.S. Department of Human and Health Service’s official poverty line was $23,624 for a family with two adults and two children.
*It should be noted that we are still in a depression, and it is deepening in other parts of the world. We are just not in reverse gear. Currently.
Click here for the article.
I am also compelled as I look at the picture above to post this video by the band (a notoriously leftist band – who made a TON of money thanks to capitalism) Rage Against the Machine. The song in the video is called FREEDOM and though it is full of earnest calls for the release of Leonard Peltier (someone on which who we can not comment from an informed perspective) it is a very good history lesson.
If you like the government running things just look to what it has done to the American Indian.
Cronyism happens on all scales. Sometimes it’s massive bank bailouts, sometimes it’s the quiet siphoning of state and federal money to connected groups and individuals in a little town.
But it’s the same thing fundamentally, theft.
I did not grow up with money. But I did work in finance for years and I have known a number of people with significant wealth. I also live in an old money town, Charlottesville, Virginia.
There is an adage about significant wealth which I think holds generally true and that is that “old money” is smaller than “new money.”
Often with older money there is some patriarch a few generations ago who made a pile of cash in some endeavor, rubber, banking, textiles, whatever. And sure, properly taken care of this wealth should grow from generation to generation. And this sometimes happens.
But never underestimate the destructive ability of an idiot son or grandson or grandsons given too much responsibility and too much money. Over time fortunes very often erode. Not always, but often. And they are always split up through the generations.
Of course this assumes a capitalist, or close to capitalist system, not a crony capitalist one like we have now.
This op-ed from Walter Williams comes the same week that the World Bank has proclaimed publicly that it “will end extreme poverty by 2030.” If the institution wants to end such human desperation it would be wise to encourage the rule of law and free markets (and free prices).
They arrest people for feeding homeless people in some cities. And God forbid you are a doctor in Mississippi with an excellent reputation who wants to treat people for free. Can’t have that.
Many of Dr. Landrum’s patients can’t afford to drive to a doctor’s office. So he comes and sees them. I thought that was called a “house call.”
Why do the busybodies have to regulate EVERYTHING?
India has long been mired in socialism. Bureaucracy ran and continues to run through the country’s massive system of governance. As I understand it, to get anything done in India for many years the paperwork had to be done in triplicate and processed a half dozen times. And then one got a new pile of paperwork.
But times are changing. India has opened up quite a bit over the last 2 decades, and it looks like even more light will be shining into the economy soon.
Hernando de Soto is one of my favorite economists. (Though as with almost anyone I disagree with him on some important points.) A champion of capitalism and everyday people he is my kind of guy.
His argument basically goes like this:
Poor people are shut out of economies. Cronyism and red tape make building businesses almost impossible. In many countries the poor remain permanently on the margins of society. The poor typically have no property rights (even if they’ve been on a piece of land for generations for instance) and enforceable contracts do not often exist. As a result this situation limits access to capital – no one will provide a loan on a piece of property for which there is no deed – which then keeps the poor poor.
Why is it that these sort of programs never seem to help the people for which they are intended? Ever notice that?
This is the title of a Yahoo News story.
And his wife makes $400,000 per year.
The economist offering this “solution” has been feted by the Obama White House economic staff, the International Monetary Fund, and by many of the people running world economies today. His ideas are definitely “in play.”
People often think that property rights benefit those with the most property the most. This isn’t true however. It is actually the poor who in terms of quality of life, benefit most.
More thoughts on the Pope and capitalism.
Capitalism (free markets and free prices) puts power in the hands of everyday people. Crony capitalism (a form of socialism) puts power in the hands of the privileged. The Pope appears to miss this very important point.
We spend a good amount of time arguing against the expansion of the state. We particularly don’t like it when the state and special interests, banks, other large industries, unions, etc, come together with the state. We argue that the state must be reduced in size to reduce the system of corruption we now are witness to.
Poland is raiding the accounts of retirees. Italy is likely to do the same soon. New Zealand and even Canada (according to the attached article) are seriously contemplating seizures of retirement assets. One would be foolish to assume that American leaders are not thinking along similar lines.