The Failure of the Welfare/Warfare State

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Franklin Roosevelt IMG_4680

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In the future the United States will not be the country it once was–thank God. The U.S. will not have the money to keep its empire, and like all empires, it will lose its client states such as Iraq and Afghanistan. If we’re lucky, U.S. troops will also be withdrawn from South Korea and from Europe. The utopian Wilsonian idea that the United States has the duty to “spread democracy to the world” will hopefully be laid to rest. The military-industrial complex, with its drain on resources and its support for continual warfare may fade away, hopefully to engage in manufacturing more than instruments used to kill other human beings.

Even if the empire falls, the money saved will not be nearly enough to balance the budget or stop high deficits. The welfare state, developed during the massive New Deal programs designed to ease the Depression (whether they did or whether they prolonged the Depression is a matter of legitimate debate), and vastly expanded under Lyndon Johnson, will have to make deep cuts in its programs. It may be too late to avoid social chaos. Years of making people dependent on the government have contributed to large numbers of individuals who take advantage of the system and do not attempt to get a job. Those who do try to work quickly realize that welfare leaves their families better off than a job–even a job that pays significantly more than minimum wage. Although there are many exceptions, there are also many people in the underclass whose behavior is morally lacking. Promiscuity, drug use, drug dealing, a failure of fathers to care for children–all are the products of the welfare state, moral relativism, the decline of the family, and the decline of religion. If the federal welfare state is dismantled, there may be social chaos for a while, but hopefully the dismantling would force people out of the dependence on government mindset and encourage them to go to school, go to work, and contribute to the American economy, both monetarily and in the old sense of the word “economics,” oikomounia, the social economy that is part of every household. When the household is run well, this helps the overall economy by providing productive workers to the workforce, and it helps the social and political economy by providing virtuous people to contribute to society’s good.

There are no guarantees. But the United States may default on its debt if current spending levels are not radically lowered That could lead to a Depression and to violence in the streets. A firm hand in dealing with phenomena such as flash mobs should restore a measure of social order, although it will take decades to expunge the harm of the New Deal and of The Great Society. These systems have helped undermine the basis on which republican government can be run. People who demand “bread and circuses” from the government seldom make good citizens.

Welfare is a necessity is some cases when there is no family or friends to help someone who is having a difficult economic time. Its allocation by government should remain, at the broadest, at the state level. The United States has become too large to effectively govern, and it may be in the future that at least some of the states will be independent or have more limited autonomy from the federal government. Local resources can be used to help those locally in need. Then the United States should have policies that encourage Americans to manufacture items in this country. If more manufacturing comes, this would ease the burden on society by giving jobs to those previously were not able to find work.

Entitlements of every kind must be cut. The U.S. has no other choice. Pork barrel projects must cease. If the president refuses to have fiscal discipline due to his support of the welfare/warfare state, someone should point this out. Cursing out the Tea Party, as Maxine Waters did, reveals her ignorance of economics–that the United States must get its fiscal house in order, balance the budget, and use any surplus to help to pay the national debt. If fiscal responsibility does not happen, any recognizable U. S. may quickly succumb to the resulting economic chaos.

 

 

The Nanny State and Big Government

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Franklin D. Roosevelt was elected to four term...

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Many Americans (not all, thank God) are spoiled. They don’t mind selling their children and grandchildren to a world of financial ruin as long as they are comfortable. They desire benefits from government without understanding the cost. So the nation is in debt to a degree that would have been unimaginable even under the free-spending George W. Bush administration. How did the country get into this mess? How did the traditionally hard working American people turn into a group of soft, spoiled brats who believe the government is there to give them things?

The problem started with the Great Depression. Instead of allowing the private sector to correct the economic downturn, as President Harding did in 1919, first President Hoover, and to a much greater degree President Franklin D. Roosevelt, tried to end the Depression with massive federal intervention. Despite the claim by liberals that the New Deal helped to end the Depression, unemployment was high up until the boom due to World War II. Artificially inflating wages led companies to lay off more workers, which led to less spending, which led to more of an economic downturn–it was a vicious cycle. The jobs programs, to give them credit, resulted in fine roads and beautiful buildings, but did little to lessen unemployment. But as permanent federal benefits were put in place (even though there were state benefits such as old age pensions so that older people were not left destitute), Americans increasingly saw the government’s function to give them things–at first jobs, later money, health care coverage, and other benefits.

Even after Truman, Eisenhower, and Kennedy continued Roosevelt’s federal benefits, federal spending after World War II was generally under control. Eisenhower balanced the budget three times. But the largest expansion of the federal government in history took place with Lyndon Johnson’s “Great Society.” Medicare, Medicaid, federal housing programs, and huge expenditures on welfare only made worse the public attitude that the government was a “nanny state” whose function is to take care of people’s physical needs. Programs that would have done more good at the local level were in the hands of distant bureaucrats, and a permanent underclass dependent on welfare payments was created.

But the government has also been guilty of corporate welfare. The unholy alliance between business and government began with the Whigs’ strong support of the new industries springing up with the Industrial Revolution and continued with the Republican Party’s alliance between the federal government, the railroads, and the banks. It was mainly the tension between the industrial North and its alliance of government and industry and the agricultural South that led to the War between the States (slavery, which was supported by the majority of the public in both the North and South, was not the primary issue over which the war was fought). Industrialism triumphed, and the unholy alliance led to numerous scandals beginning in the Grant administration. Today people vote for the presidential candidate and congressional candidates whom they believe will improve the economy. This is also a position that the government can give the people things–this time, a sound economy. Although some government regulation of business is required because people are not saints, the revolving door between big business and government officials only makes matters worse. Overall the economy tends to move in cycles that are only predictable in part due to their nature as dynamic, chaotic systems. The government can do a lot to help wreck the economy, but generally what it does best beyond essential regulation is to stay out of business. But people believe that one of the chief roles of government is to guarantee a good economy–and voters become prostitutes. It is just as bad for voters on the right to “vote their pocketbooks” as it is for voters on the left to vote due to their desire for more government benefits. But between the two, I prefer the right–at least they recognize that government does more harm than good to business.

Americans need to realize that concentrations of power and money tend to corrupt and tend to bankrupt. There are only so many resource available for people to share, and the government cannot keep spending at the rate it does on benefits and job programs (and defense!) without the Chinese eventually calling the United States in on its debt. When that happens, God help us. Perhaps then families will realize that they must work for themselves and for the good of their local communities instead of receiving handouts from a nanny government. They may have no choice. The sad thing is that such a scenario may be a good thing–it may be the only way to restore virtue to those in the United States who have been spoiled by a sense of entitlement.