Tag Archives: Medicaid

Bill Lockwood: Socialism is the Gradual Loss of Freedom 4 (1)

by Bill Lockwood

Private property is an essential element of man’s freedom. Biblical injunctions not to steal (Exodus 20:15) imply the right to private property as an extension of my labor. And, people have a right to enjoy the fruit of their labor. Frederic Bastiat, the French economist and statesman (1801-1850) summarized God-given rights as “Life, Liberty and Property” and noted that these do not exist because men have made laws. On the contrary, life, liberty and property existed before hand which caused men to make laws in the first place.

Cultural turmoil begins when “the Law” or its enforcer—the “government”–turns into an instrument of plunder to redistribute my earnings to others. This is precisely what has occurred in America. Amity Shlaes, in her new book, Great Society: A New History, recounts that during Lyndon Johnson’s implementation of his socialist welfare-state “Great Society,” one of the modernist thinkers involved with his administration was Charles Reich, a young law professor at Yale and former clerk to the liberal Supreme Court justice Hugo Black.

“To help the poor, Reich turned old property rights arguments on its head…Payments [of welfare] were a right, not a privilege. Reich called what the poor or old received ‘new property.’” In other words, government assumed the right to decree that other people have a right to my private property—the fruit of my labor. This is the essence of the Welfare State.

Bastiat reflected on this perversion—for perversion it is. “It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunders.” This insight reaches right into the current political climate of the American welfare state proudly trumpeted by both parties, Democrat and Republican.

If one doubts that outright plunder is occurring in America fostered by the government itself, just try Bastiat’s test. “See if the law takes from some persons what belongs to them, and gives it to other person to whom it does not belong. See of the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime …”

Our institutions of welfare, HUD housing, Medicaid, Medicare, green energy, public education, suggested reparations, even quota systems in hiring, firing, and punishment–and a host of other programs of which time would fail to list– are all results of plunder by the federal government—and all completely unconstitutional.

Consequences

What are the consequences when this occurs?

“In the first place, it erases from everyone’s conscience the distinction between justice and injustice. No society can exist unless the laws are respected to a certain degree. The safest way to make laws respected is to make them respectable. When law and morality contradict each other, the citizen has the cruel alternative of either losing his moral sense or losing his respect for the law.”

Exactly. Talk today about “social justice” is nothing but just that—talk. It is not “justice” neither is it sociable.

Second, and most importantly here, this creeping socialism equates to a gradual loss of freedom. When decisions of the individual are supplanted by decisions from the government, this is a loss of freedom. “Powerful government, by its very nature, always has and always will tend to make itself more powerful and more dictatorial” (The Ethics of Capitalism: A Study in Economic Principles and Human Well-Being, Chamber of Commerce of the United States: Washington, D.C., 1960). “When government gains control over the livelihood of individuals, national planning can only be carried out by subjecting the lives of individuals to control or regimentation.”

What inevitably occurs in this type of a climate is the decline of enterprise which entails the loss of inventiveness and improvements. “It means less variety in life, and variety is a large, although often unrecognized, element in a high standard of living.” Like a huge snake coiled around the breast of a person that gradually squeezes out the life, so socialism does to a nation.

In his blockbuster book, The Problem with Socialism, professor Thomas J. DiLorenzo, exposes how this slow fade in the economy worked in Sweden when socialists implemented their plans. “Socialism nearly wrecked Sweden, and free market reforms are finally bringing its economy back from the brink of disaster.”

Starting in the 1930’s, Swedish politicians became “infatuated with fascist-style, socialist ‘planning.’ … Government spending as a percentage of GDP rose from what would today seem a relatively modest 20% in 1950 to more than 50% by 1975. Taxes, public debt, and the number of government employees expanded relentlessly. Swedes were, in essence, living off of the hard work, investments, and entrepreneurship of previous generations.”

America has unfortunately, copied the Swedish model. But what happened in Sweden? The Scandinavians could not avoid economic reality. “It is impossible to maintain a thriving economy with a regime of high taxes, a wasteful welfare state that pays people not to work, and massive government spending and borrowing.”

By the 1980’s, Sweden’s collapse of economic growth and a government attempt to jump-start the economy with a massive expansion of credit resulted in “economic chaos” complete with stock market bubbles that burst, and interest rates “that the Swedish central bank pushed up to 500 percent.” By 1990 Sweden had fallen from fourth to twentieth place in international income comparisons.”

It is a slow road back for Sweden. And the same will be for America. But the point remains that socialism resembles a slow bleeding of prosperity, liberty, and right to property.

Stockton, CA; Another Test Run for Socialism? 0 (0)

Stockton, CA; Another Test Run for Socialism?-“…why should Americans be concerned with continual forays into socialistic experiments?

by Bill Lockwood

Bankrupt Stockton, California is to be the first US city to guarantee a “universal basic income” to low-income residents. Stockton has double the state average of unemployment, and half of those working earn minimum wage, reports G. Edward Griffin in NeedtoKnow News. Michael Tubbs, the 26-year-old Mayor who is leading the plan to give low-income families $500 per month, said “I think it will make people work better and smarter and harder and also be able to do things like spend time with their families because we’re not robots.”

The plan is apparently mostly funded by The Economic Security Project, which is contributing $1 million to the first-year pilot program. Families that receive the money will be monitored to “see what they do with the money” and “how it affects self-esteem and identity.”

The Economic Security Project is co-led by Facebook co-founder Chris Hughes. Mark Zuckerberg, the CEO of Facebook, last year said such a scheme could mark a “new contract” between government and citizenry.

Oakland, CA is also thinking of a broad welfare program. The city plans to give about $1,500 a month to a handful of welfare recipients. The goal is to study how financial health affects low-income families.

What of Guaranteed Income?

Besides the fact that our Constitution absolutely outlawed such a state—but who cares what the Constitution actually says–why should Americans be concerned with continual forays into socialistic experiments?

First, America already is a welfare-state. Close to three-quarters of our federal budget is due to government-run social welfare spending. As a matter of fact, when looked at in total, per capita, America is the second-largest welfare state in the world. Inclusive in this is housing, health care, pension benefits, and public education and a host of other expenditures (Tim Worstall, Forbes, 10-5-2015).

Robert Rector, Senior Research Fellow at the Heritage Foundation, argues similarly. “Contrary to conventional wisdom … noted scholars Irwin Garfinkel, Lee Rainwater, and Timothy Smeeding conclude in Wealth and Welfare States: Is America a Laggard or Leader? That ‘Welfare state programs are quite large in the United States.’”

According to Politifact.com, Social Security, Medicare and Medicaid collectively “account for a majority of federal spending.” Added to that is spending on food and agriculture and the percentage continue to rise while military spending, which is the only constitutionally authorized spending among these categories, is 16 per cent.

The point of this is simple. American already is a welfare state—the second largest in the world. Many students in high schools are living in subsidized housing, eating free or reduced lunches, living on welfare checks, bearing or fathering multiple children—all at the taxpayers’ expense.

And the social problems associated with each of these federal expenditures are increasing, not decreasing, because the basic truth is: the more money one throws at a particular problem causes that problem to grow.

Second, guaranteed income ignores man’s ability to make life choices and allowing people to bear the fruit of their choices. This is not to say that everything negative that occurs to people is always the direct result of personal mistakes, for that is certainly not the case. However, God has so constructed the world so that negative consequences are built into the system to encourage better selections in the future.

If two young men in jail for illegal drug use are both on the bottom of the income ladder, what are their choices when getting out? One man, Bob, chooses to continue a life of illicit behavior, perhaps ruining his health, bumping along on the bottom of society with multiple arrests, fathering several children, and looking like he is fifty when he is only thirty.

The second young man, Joe, decides to change his life when he is in his early twenties. He cleans up his life, his associates, and gets a job. A low-income job to be sure—but he is working and living above the law. He studies at night taking courses in college. After several years his sacrifices begin to pay-off. He lands a great job when he is thirty; buys a house, a car, is happily married with children.

There is absolutely income inequality between Bob and Joe. Now comes in Big Brother Government to “adjust” the “inequities” between Bob and Joe. Who will be in favor of forcibly taking from Joe to give to Bob? Their life-situations are primarily due to life-choices. What government cannot do—even in Stockton, CA—is make proper determinations as to why people are in poverty. It may be that Bob needs to suffer his consequences enough to encourage him to take Joe’s route.

Third, Stockton’s pilot program is flawed because it ignores the biblical model of man. It is an overtly anti-Christian doctrine which results when leaders drink from the wells of materialism and atheism instead of God’s Word. God designed work for man in which to find self-esteem and satisfaction—not a guaranteed amount of money regardless of how we spend our time.

Solomon wrote “There is nothing better for a man than he should … find enjoyment in his toil” (Ecclesiastes 2:24). This is “God’s gift to man that everyone should … take pleasure in his toil (3:13). “The best thing for a man was to be happy in his work; this is what he gets out of life” (3:22). Solomon went on to say (5:22) that this is man’s portion (lot or station) in life—to work.

This was God’s design from the beginning; that man should earn a living by the sweat of his brow. The Bible even mentions competition as a motivation to work (Prov. 27:17). “Iron sharpens iron.”

The New Testament is equally as clear. The apostle Paul forbade church financial assistance to those who could and should earn a living for themselves. He declared that people on indiscriminate assistance teaches them to be “idle, going about from house to house; and not only idle, but tattlers also and busybodies who talk nonsense … “ (1 Timothy 5:13). And as we can easily see from the streets of America, it gives many people not only room to be “busy-bodies” but lawbreakers as well.

What Stockton, CA will learn is that, not poverty, but idleness is a vice. It is a moral disease that is caused by a failure of the will that enslaves a person. Doling out money only encourages it. The final stage is that people will need to be managed like children. Any program that rewards idleness dooms itself in the self-image realm. On the other hand, real self-esteem is found in accomplishment, no matter how little. This is how God has made man.

As Robert Rector put it, “The key to improving self-sufficiency is to increase work … Increased self-reliance will lead to an enhanced self-achievement, a principal component of human well-being.” Only by productive work does man reduce poverty and increase his own happiness.

None of this is to ignore that real Christian charity is found in giving. But a “guaranteed income” monitored by government overlords does not qualify as charity. For this reason, Stockton, CA will see an increase in low-income families as people either re-locate there or quit low-paying jobs to qualify for “guaranteed income.” When California began MediCal in 1967 the initial program included 1 Million people. Within a couple of years the numbers had jumped to 2.5 million. When will California and America learn?