How Government Welfare Programs Are Immoral and Hurt Everyone, Including the Poor

US Federal Government spends 19% of its budget on overt welfare programs, (including Medicaid).

In 2016, the US Federal Government spent $740 billion, or 19% of its budget, on overt welfare programs, (including Medicaid). It spent $1.57 trillion on Social Security and Medicare. Together these make up 60% of its budget. (Source)

A very common view today is that the government needs to provide welfare programs for the poor. This is the view that “redistribution of wealth to the needy” is a noble project, and such “government assistance” is necessary to keep people from starving in the streets.

This essay will challenge and refute this view. In Ayn Rand’s ideal society, under laissez-faire capitalism, there would be no welfare programs, and this would be a good thing.

The people who didn’t vote for welfare programs, yet are taxed to support them, did not consent to the taking of their money. They signed no “social contract,” and simply living near other people does not give those other people a right to take their money. If you doubt this, watching this short video should be helpful:

Welfare programs are immoral for the same reason that three people using guns to force a fourth to pay for all their dinners is immoral: It’s an injustice that violates the rights of the victims. It has the same moral status as a robbery.

Yet people still attempt to justify using government to “redistribute” (steal) money by force, by appealing to alleged good consequences that result from the practice. The main line of argument is that welfare benefits are needed to prevent the poor from starving, while wealthier people can “afford” to have a corresponding amount of money taken out of their incomes. Thus, the argument goes, there is a net “social benefit” to welfare redistribution.

This argument is wrong on four counts:

  1. Welfare is not needed to keep good people from starving.
  2. The effect of redistribution on the wealthy should not be thought of in terms of whether they can “afford” it.
  3. There is no such thing as a “social benefit,” in the way this argument assumes.
  4. Even if we dismiss the idea of “social benefit,” the argument falsely assumes that the “beneficiaries” of welfare really benefit, overall, from redistribution.

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Socialism is Not “Worker Control of the Means of Production”

"There is only one way to shorten and ease the convulsions of the old society and the bloody birth pangs of the new - revolutionary terror." --Karl Marx

Karl Marx – The man who has influenced the thinking of socialists around the world more than any other.

I often hear socialists say that socialism is “democratic worker control of the means of production.” But is it really? In this essay, I’ll explain why it’s not, and why the issue of socialism vs. capitalism is a moral and political issue of property rights, rather than an economic issue of “modes of production.” Obfuscation and confusion aside, this ultimately holds true whether the socialism under consideration is classic Marxist socialism, “libertarian socialism,” or whatever other sort of socialism you want to name.

In a mostly capitalist country, like the US in the 1880s, there are many different kinds of business organizations: There are for-profit corporations, non-profit corporations, sole proprietorships, partnerships, credit unions, retailers’ cooperatives, consumers’ cooperatives, and employee cooperatives. That’s right, worker cooperatives can and do exist in what Karl Marx would call a “capitalist society.” Examples of consumers’ cooperatives include REI in the US and “The Co-op” in the UK. Examples of employee cooperatives include the Cheese Board Collective in Berkeley, California, the Rainbow Grocery Cooperative in San Francisco, and the Citybikes Workers’ Cooperative in Portland, Oregon. These latter three are companies where employees own and control the means of production in their company, democratically.

If “socialism” meant “worker control of the means of production,” as in a co-op, then people are perfectly free to have “socialist companies” under a laissez-faire capitalist government that protects private property rights.

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The Role of Profits in Free-Market Capitalism, and Why High Profits are Good for a Company’s Workers

Underpants Gnomes Meme - Phase 1: Physical Labor Phase 2: ? Phase 3: ProfitWhether people like it or not, it is a fact that the production of valuable things requires more than physical labor. (I’m looking at you, Karl Marx, with your Labor Theory of Value and “profit as exploitation.”) This is especially true when it comes to industrial-scale mass production. To successfully deliver products at a reasonable price and quality, a company must be organized in certain ways that are effective; there must be communication and coordination between the various departments; there must be management to make sure things keep running smoothly together and that timetables are kept; there must be wealth invested for buildings, machinery and raw materials in the right amounts; any machinery and facilities must be continually maintained; there must be management of sales and distribution of the product; etc.

A collection of factory workers without power tools, without specific roles and without management direction will produce very little and very inefficiently. In any line of business, there is a tremendous amount of strategy, business planning, technical planning, management, and industry knowledge that goes into making a company productive and successful.

As I discussed in my essay, “How Business Executives and Investors Create Wealth and Earn Large Incomes,” a company’s chief executive officer (CEO) carries tremendous responsibility: he is crucial in making large-scale decisions for the company, implementing and coordinating major changes, planning long-term for the future market and technology the company will face, formulating and holding onto a large-scale vision of where the company should go, etc.

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Why Fairness Does Not Mean Justice: Some Further Argument

Equal is Unfair: America's Misguided Fight Against Income Inequality, book coverOver three years ago, I wrote an essay discussing the proper meaning of the concepts of “fairness” and “justice,” as I understand them: On Fairness and Justice: Their Meanings, Scopes, and How They Are Not the Same.

My major points in this essay were 1) that the concept of “fairness” presupposes that one is talking about a zero-sum game: a situation devised by a purposeful intelligence to measure people’s attributes, where one person winning requires that another person loses; 2) that life in society and in general does not meet this criterion for “fairness” to apply: people “win” by creating valuable things, and do not need to deprive others of these things to have them; and 3) that societal justice requires the protection of individuals’ rights to life, liberty, and property, and that it consists in each individual generally being rewarded in proportion to his mental effort and virtuous actions.

In this previous essay, I explained my view of “fairness” and illustrated it with examples, but I did not argue extensively for my conception of that term–why my conception of fairness is correct. I have been prompted to provide further argument by the upcoming release of a book called “Equal is Unfair,” and one of the co-authors’ (Yaron Brook’s) reply to me regarding “fairness”:

I have great respect for Dr. Brook, and am looking forward to his latest book, but I think he’s wrong here: fairness does not mean justice. And the purpose of this post is to argue my case. I encourage those who have not read my previous essay to read it before proceeding on in this one, since it will help set the context for my arguments: On Fairness and Justice.

One of the first things that should spring to mind when someone mentions the word, “fairness,” is the realm of sports and competitions: Is it fair when women are put in competition with men? Is it fair when one team learns the other team’s plays through spying? Is a race where one athlete has artificial legs fair? Is a weightlifting competition fair when steroids are secretly taken, or openly allowed? Is it fair when the Patriots let air out of the football?

Does justice have the same intimate connection with such competitive sports? Is that one of the first things you think of when you think of justice? Probably not. This is our first clue that fairness and justice are different concepts: they seem to be associated with different realms of life.

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The Social Justice Warrior’s 9 Theses Against this Blog and Its Author

This blog is racist, because it supports Israel over Islamic totalitarians, and because it posts videos of people speaking in front of Tea Party sympathizers. (You know, those horrible racists!)

This blog is sexist, because it uses “he,” instead of “he/she” or “(s)he” or “he or she” or “she,” when referring to those of unspecified gender.

This blog is ableist, because its author doesn’t believe people should be robbed to support the disabled, (and all the disabled are permanently useless and can never support themselves without the government forcing others to care for them.)

This blog is hateful of poor people, because it doesn’t support the forcible tearing down of rich people for their sake.

This blog is against sound economics, like the Broken Window Theory and “wealth inequality means everyone is poorer.”

This blog dares to peek beyond the Veil of Ignorance, and challenge John Rawls’s view of (social) justice as fairness.

This blog is homophobic, because its author doesn’t support laws forcing private businesses to hire or serve people they don’t want to, such as gays.

This blog is anti-science, because its author doesn’t want government to destroy people’s freedom on the basis of unreliable computer models.

This blog is triggering, because it contains offensively positive references to Ayn Rand.


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