The Case for Government Welfare

Posted by $ MikeMarotta 12 years, 3 months ago to Government
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In the thread about "ELI the ICE man" cgervasi confessed this sin: "I am an unusual Rand supporter because I support gov't efforts to reduce poverty and improve education. I am open to gov't programs to encourage innovation, but I agree it's tricky. It's easy for programs to become boondoogles for those good at grant writing and/or politically connected to the agencies that disburse money."

Well... if the government were funded entirely by voluntary means, then it is up to the people to decide what its proper function might be.
For instance, we take it for granted in the Bill of Rights that in an civil suit you can have a jury trial, but Rand questioned that. In fact, private agencies have delivered commercial arbitration for nearly 1000 years. (Criminal cases are a different matter, entirely.) And following Rand, some have suggested government lotteries as a way to raise money non-coercively, though it would put the government in the gaming business. (Government whorehouses? Government -drug- stores? Where does it end?)

If the only purpose of government is to hold a monopoly on retaliatory force, then welfare and education are clearly beyond that limit.

The philosophy of Objectivism offers some cogent insights to the attendant problems here. No dichotomy exists between morality and practicality. (Rand did quip that "the definition of practical depends on what you intend to practice.") The moral -is- practical and vice versa. Many problems attend any government program, especially retaliatory force. Force negates free will. No compulsive alternative can be a moral choice. So, if the government were to engage in welfare and education, it would face the same problems as if it were engaged in steel-making and transportation. Absent market feedback, depending on force, bad decisions are guaranteed.

That is the problem with government welfare, even though both F. A. Hayek and Milton Friedman endorsed the same "floor under the poor" as John Rawls.

That all being true, it is an interesting point that perhaps 20% of the goods and services in our society have no clear title. Ever go to a flea market? Many of the new-in-a-box items might have been stolen at a transportation way-point such as a truck stop or railroad junction. Who knows? Ultimately, even a Fortune 100 corporation has only indemnifications, not actual proof, when it buys from suppliers.

The point is that a truly laissez faire capitalist society will easily be able to afford the "floor under the poor" and the government (funded entirely voluntarily) could deliver that.

Consider this: It costs upwards of $60,000 per year to house a convict in prison. Would it not be cheaper to pay them $30,000 a year to stay home?


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  • Posted by Rocky_Road 12 years, 3 months ago
    "Consider this: It costs upwards of $60,000 per year to house a convict in prison. Would it not be cheaper to pay them $30,000 a year to stay home?"

    Not if he becomes MY neighbor!

    What were you thinking! (Or, smoking?) ;-)
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  • Posted by j_IR1776wg 12 years, 3 months ago
    The only proper functions of government are a police force, a military force, and a system of courts. Anything beyond these three is theft pure and simple.
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    • Posted by CircuitGuy 12 years, 3 months ago
      It's pure and simple to say, but that doesn't make it so. People may (or may not) decide to set up gov't services for things like helping the poor or subsidizing education. If you don't want those things for your society, it feels like theft. The same goes for policing and military. There's no way to exclude people who don't pay for police patrols from their benefits.

      Consider the simplistic argument that society has a choice of spending money educating the poor or spending money dealing with these same people in the criminal justice system. (This is not to say that most crime is related to poverty or ignorance, but at least some crime is.) You're saying it's theft to take people's money by force to fund an education program. But it's not theft to do the same thing for a criminal justice program.

      This doesn't make sense to me. People should be free to form gov't to take both approaches. Then we need to work to keep these approaches from getting out of hand, as they clearly often do.
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      • Posted by Meatwall 12 years, 3 months ago
        Why can these services not be privatized? Clearly there is a demand for roads, education, and things of that sort. If there is a demand then there is a market.
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        • Posted by Meatwall 12 years, 3 months ago
          Additionally, there are such things as private police forces. They are profitable and effective and exist primarily in areas where the public police are either overwhelmed or very corrupt. This private market solution has been a boon in the places where it operates. But further, I would pose that a prosperous and armed society would find little use for a publicly funded police force. Law causes crime without exception. Some laws are necessary if only to create a structure within which reasonable people can resolve grievances, most of which are harms done as a result and not by intent. And I know that some smart ass is going to say, "what about murder?" Simple, people in general don't have to be told not to kill people. There is a balance there with the threat of violence revisited and reasonable people do not act with out profit as a motive. It is rare that one can profit by murder, but it criminalization did generate a market demand that was met with a black market of assassination. Lest we forget, to say that it is wrong to kill is an inherent fallacy. As a combat vet I have done plenty of killing that will never cost me a wink of sleep.
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      • Posted by j_IR1776wg 12 years, 3 months ago
        Yes of course it is theft to run a criminal justice system!!!! The minimum necessary to maintain a civilization ought to be limited to a police force, a military force, and a system of courts. That's why the founders of America created a LIMITED GOVERNMENT by giving it enumerated powers. What part doesn't make sense to you? All we need do is follow the constitution.
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      • Posted by Meatwall 12 years, 3 months ago
        Also, why should we help the poor? You cannot answer this question without stating that one man deserves to eat my lunch simply because he does not have his own. I would end welfare out right with half a chance to do so. A man does not have a right to happiness, he has a right to not be prevented from earning it.
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  • Posted by Lucky 12 years, 3 months ago
    Mainly a repeat-
    'Government whorehouses and drug stores'
    I like this kind of suggestion. Another case of heart saying one thing and head saying, wait a mo'. It works only if illegal for others.
    The British lost India due to the monopoly on salt, well it was the straw that broke the camels back.
    Gov should do only what cannot be done by the private sector, and not even much of that. Money still needs to be raised (or by volunteers?) Small gov -> small taxation.
    I cannot see a way out of it. The problem is, how to stop it growing?
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      Posted by $ 12 years, 3 months ago
      A topic of its own would be "How to Prevent and Stop Government Growth." On my blog I have a couple of posts about Unlimited Constitutional Government. As long as the people in the government want it to expand and no one prevents that, it will grow in its present mandate and find new ones. The problem is entirely cultural. That is why Ayn Rand stressed the futility of attempting mere political reform.

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  • Posted by CircuitGuy 12 years, 3 months ago
    "So, if the government were to engage in welfare and education, it would face the same problems as if it were engaged in steel-making and transportation. Absent market feedback, depending on force, bad decisions are guaranteed. "--MM

    I agree. That's why when possible I'd like to see the gov't just offer tax credits or vouchers for people to buy these things themselves with few restrictions.

    "(Government whorehouses? Government -drug- stores? Where does it end?) " --MM
    I agree. Those things only make money because the gov't runs a cartel to maintain a monopoly. If companies like Holiday Inn and Wal-Mart began offering those services and products, they would be a lot less cool and worth a lot less. The only way gov't makes money on those is to use some of the money to buy guns and jails for people who buy them from other providers.
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    • Posted by Meatwall 12 years, 3 months ago
      What's wrong with gov't run whorehouses? New Hampshire has state gov liquor stores, and they cover a large piece of the budget gap left in the absence of a state sales tax or income tax. If the question is one of morality, it is difficult to argue that there is any immoral activity in the exchange. The idea that the encounter is elicit presupposes only that the "John" is dishonest. One may as well try to argue that fatty fast foods are immoral because fat people eat them.
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      • Posted by CircuitGuy 12 years, 3 months ago
        My problem with it is once the gov't is making money off it, it gives them an incentive to maintain prohibition against other people making money off it. Once the gov't makes money off a lottery, for example, they don't want to allow similar private operations because it would cut into their sales.
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        • Posted by Meatwall 12 years, 3 months ago
          This is a "We the people" issue I think. A monopoly cannot exist in a free market. We should be demanding that the federal government be held under the same anti-trust laws that we are held to, until such a time as we can repeal them. After that, we should seek to bar the government from maintaining any law that causes the establishment of a monopoly, whether intended or otherwise. Perhaps it should be an amendment, whereby any law which results, directly by intent or indirectly by its consequences in the artificial repression of competition (like the post office) then such law should be declared then to be unconstitutional. That would also clear up the lottery problem and pave the way for casinos in all states, some of which could be state run public revenue generating engines.
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          • Posted by CircuitGuy 12 years, 3 months ago
            That sounds good, but there would be less money in gambling, drugs, and prostitution if they were decriminalized. In the Netherlands, they're decrimialized but heavily regulated, and they're extraordinarily boring. The more repressive your culture, the more exciting it sounds. The more open the society, the more boring the enterprises become.

            I am told this is why tobacco companies grudgingly agreed to fund anti-tabacco ads for kids and to make it illegal for kids to possess tobacco. This was the fastest way to making their product cool and getting lifelong customers.

            I don't think we should approach it just from anti-trust; it should be a gradual decrease in things that are controlled by the gov't.

            This will only happen incrementally. Listening libertarians talk to one another here makes you sounds completely nuts. We need a moderate libertarian movement. I think Obama is decent as modern politicians go and SS and PPACA are flawed but good programs. Most people here think that makes me stupid. The country's full of people like me, though, so libertarians have to be more moderate or find a secluded state-free micro-nation as in Atlas Shrugged.
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            • Posted by Meatwall 12 years, 3 months ago
              All things in moderation; especially moderation. Look at the history of this nation. We went from bold strong moves in forging a nation, to the limp wristed appeasements and pseudo-Marxist maneuvers of the Wilson admin. to actual Socialism with the new deal and great society. Fall, fall, fall until finally we get Reagan talking about broad bold differences and then we let Clinton rebuild the downfall. Now compromise means that the conservative and the working man gives up something so that the Democrat can have another hand out to buy votes with. The problem we have in this country is not a lack of compromise. It is quite the opposite. The problem is that the Democrat (which is no longer a democrat, but now a true pure socialist) sells a free ride fairy tale, while the Republican party hand wrings a tip-toes in fear of the race card or the sex card, or whatever the other flavor of bigotry is this week. All the while, the working, morale agents of commerce, trade, and legitimate free earning have no refuge in the system precisely because the system, by its nature is antithetic to risk, and so they have risk mitigated us right out of reward. Why should I work if someone else will do it for me? The thing that we as objectivists believe in is that freedom is freedom from interference. The others believe that freedom is freedom from want. While we worship the glory of victory and achievement, they worship only the spoils and not their inherent value. Where would we be if Bill Gates said, "I'll just make a moderate number of computers."? What if Ford just made a few cars? Moderation is the enemy of prosperity. Self-discipline is not popular, but it sure does make for a good life.
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              • Posted by CircuitGuy 12 years, 3 months ago
                The trouble with this is I disagree with your claims. (I do *not* think they're at all foolish; I just disagree.) I see the Democrats and Republicans as enjoying the race and sex card because it's less risky and maybe more effective and getting votes than the issues of the role of gov't. Most people still experience risk and reward in the agreements they enter, despite gov't efforts. So I see a completely different world.

                I'm not calling for moderation because incremental change is easier. I'm saying I see most Ayn Rand fans as bordering on nuts. Maybe I'm wrong. Maybe most people feel like they live in that dystopian collectivist factory where that sanctimonious shrew dished out money to whoever had the best self-righteous sob story, but I don't see things as nearly that bad. It seems like you want to turn off things that are working okay.

                If I'm right and my world view is more common, then your brand of libertarianism will never work, and we'll stay with Republicans firing up a bunch of morons with their dog whistle and Democrats holding themselves up as much more moral than those people.
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                • Posted by Meatwall 12 years, 3 months ago
                  Must we resort to mudslinging and ad hominem discourse? Your argument here is that the "Fans of Ayn Rand" are bordering on nuts. You make this claim while simultaneously stating that the race and sex cards are used solely to mitigate risk, but people really do experience risk.
                  Further, you state that there the stems are working and not being handed out to the best sob story. The specific justification for these benefits to be handed out to someone are that they claim an inability to work and those benefits increase relative to the number of children they have. That's LOG101. It is the very definition of the Socratic informal logical fallacy, The Appeal to Pity. As to the point that the programs are working, I refer you once again to the food stamps program. When first conceived it was a mechanism to get farm surpluses to hungry low income city dwellers. At its pilot inception it reached only a little less than 400k people and they actually bought the food stamps. They worked as vouchers for reduced prices on surplus foodstuffs. Now we have 47 million getting them for nothing, and that number is just a meager %4 of the total participation shy of double the levels under Bush, where the program also grew. This is largely because a "compassionate conservative" is just a liberal that is not quite a socialist yet.
                  As to the claim that my brand of libertarianism will never work. Allow me to refer you to Robert A. Heinlein and "The Moon is a Harsh Mistress" where he outlines the fantasy of the "Rational Anarchy," where in there is no need for government because every single person is intelligent, enlightened, and correctly self-interested. A situation in which no-one works toward a common goal, but toward an infinite number of selfish goals to which ends they trade to the betterment and profit of one another and cause the bar to raise ever higher on what can be done by man. In this story he is very clear in stating that the goal is strictly unachievable, precisely because of the existence of people of such low quality that they would tolerate the having of food stamps, or to be given a job based solely on the color of their skin (under the ultimate anti-negro government plan called "Affirmative Action").
                  I am amused by your use of the dog whistle metaphor. You are right in that, they really can't hear us. But I take issue with the assertion of the Democrat high ground. I know that this may not be your position that they have the high ground, but I would still like to address the delusion of its widespread axiomatic acceptance. Criminals in prisons and not yet convicted of a felony, and those who's names have not been stricken properly from the voting registration, vote overwhelmingly for the liberal agenda, and they believe rather deeply in it. Why? Simple. Before a man can put a gun in your face and demand you wallet, he has to be morally comfortable with the idea of having without earning. This first requires that he place so low a value on human life that he would sacrifice a life other than his to enrich himself some small degree. Incidentally, this is one of the reasons that the military votes so overwhelmingly conservative. We hold in our values that a sum total of individual lives have such value that the exchange of ours for theirs is reasonable and honorable.
                  I will concede how ever that yours may be the more common world view, but that is being said of a world that listens to canned pop music, recalls not its history, votes for free stuff and against freedom, and largely expects the word Gaelic to be a punch line in a homosexual joke. All this be true and I am the nut? I'll keep my job and feed my own kids, thanks.
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                  • Posted by CircuitGuy 12 years, 3 months ago
                    Sorry I said "nuts"-- not descriptive and focuses on people rather than their ideas.
                    I was trying to say the typical libertarian is more extreme than most people. If a moderate libertarian movement does not appear, we'll keep arguing over things like gay marriage and banning guns with large magazines.
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                    • Posted by Meatwall 12 years, 3 months ago
                      You gotta give me more to work with, man. I appreciate the civility of the apology, but lets dig into it. I'll give you something to work with, so you have a chance to really light my fire. Here goes... you ready? This is a doozey! Welfare is worth the cost, only because there are a load of people out there that are so useless its cheaper to pay them to stay out of the workforce. I'm not talking about legitimate handicaps either. I have a cousin who is missing his right leg at the hip, refuses to wear a prosthetic or use a wheel chair and owns the tree farm he works on. I am a disabled veteran and I make my own living waiting for my military medical retirement benefits to kick in. But this country is full of people (most of whom vote democrat) that its just better to pay them to stay home where they can't do much damage. I submit that there is no other argument for welfare that I can't shred on moral grounds, and the only reason I even entertain this one is that it is so hard to convince people that if you let these problems starve then they wont be problems anymore.

                      Have fun! If you like I can go a little nuts in to some reducto ad absurdum... just for chuckles.
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                      • Posted by CircuitGuy 12 years, 3 months ago
                        Some people would be in prison if they weren't on the dole, so the program makes economic sense in their case. I wonder if the programs rob people of their lives in other cases. Some people wouldn't go to prison but would instead invent something really cool.

                        Ten years ago I saw this when I applied for unemployment benefits. There were people in there who were running around town to jump through hoops to get benefits. People will jump through hoops for people offering money. These were almost kids. I kept thinking if they had a parent showing them how to get a job, learn to solve new problems for other people, etc, they'd do it. The unemployment system was okay, but in some cases it was directly training people to navigate red tape instead of just finding someone with a need.
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