Tag Archives: Tom Sowell

Commentary

What is the conservative plan for taking care of the poor?

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Here’s is the Heritage Foundation explaining what conservatives would do to solve the problem of poverty.

Excerpt:

Since 1964, the U.S. has spent $15.9 trillion on means-tested welfare programs. After adjusting for inflation, welfare spending is 13 times higher today than it was in 1965. Welfare spending has grown more rapidly than Social Security, Medicare, education, and defense. And what do we have to show for these efforts? According to the Census Bureau, a record high 3.7 million Americans fell into poverty in 2009. The out-of-wedlock birthrate is now 40% and the African American out-of-wedlock birthrate is 72%. When the War on Poverty began the out-of-wedlock birthrate was just 7%.

The collapse of marriage is the root cause of child poverty in the U.S. today. It is far past time to reboot our poverty programs to promote work and encourage marriage in order to control costs and promote greater self-reliance. Among Rector’s recommendations:

  • Slowing the growth of the welfare state: Congress needs to establish reasonable fiscal constraints within the welfare system. Once the current recession ends, aggregate welfare spending should be rolled back to pre-recession levels. After this rollback has been completed, the growth of welfare spending should be capped at the rate of inflation.
  • Promoting personal responsibility and work: Able-bodied welfare recipients should be required to work or to prepare for work as a condition of receiving aid. Food stamps and housing assistance, two of the largest programs for the needy, should be aligned with the TANF program to require able-bodied adults to work or to prepare for work for a minimum of 30 hours per week.
  • Ending the welfare marriage penalty and encouraging marriage in low-income communities: Current means-tested welfare programs penalize low-income recipients who get married; these anti-marriage penalties should be reduced or eliminated.

During the administration of President Bill Clinton, conservatives successfully reformed one welfare program in the 1990s: replacing the old Aid to Families with Dependent Children (AFDC) with the new Temporary Assistance to Needy Families (TANF). But President Barack Obama’s failed economic stimulus gutted those reforms. And his budget proposal would spend $10.3 trillion on means-tested welfare over the next decade. Before the current rise in poverty, that was enough to give $250,000 to each person currently living in poverty in the U.S., or $1 million for a poor family of four. Our nation can’t afford another 10 years of failed War on Poverty thinking.

You can read more about this issue in this Townhall.com column by Walter Williams, which explains everything you need to do to avoid being poor, and to avoid making your kids poor.

Excerpt:

Avoiding long-term poverty is not rocket science. First, graduate from high school. Second, get married before you have children, and stay married. Third, work at any kind of job, even one that starts out paying the minimum wage. And, finally, avoid engaging in criminal behavior. If you graduate from high school today with a B or C average, in most places in our country there’s a low-cost or financially assisted post-high-school education program available to increase your skills.

Most jobs start with wages higher than the minimum wage, which is currently $5.15. A man and his wife, even earning the minimum wage, would earn $21,000 annually. According to the Bureau of Census, in 2003, the poverty threshold for one person was $9,393, for a two-person household it was $12,015, and for a family of four it was $18,810. Taking a minimum-wage job is no great shakes, but it produces an income higher than the Bureau of Census’ poverty threshold. Plus, having a job in the first place increases one’s prospects for a better job.

The Children’s Defense Fund and civil rights organizations frequently whine about the number of black children living in poverty. In 1999, the Bureau of the Census reported that 33.1 percent of black children lived in poverty compared with 13.5 percent of white children. It turns out that race per se has little to do with the difference. Instead, it’s welfare and single parenthood. When black children are compared to white children living in identical circumstances, mainly in a two-parent household, both children will have the same probability of being poor.

Here’s more Walter Williams: (2 minutes)

And some Thomas Sowell: (4.5 minutes)

Walter Williams and Thomas Sowell are my two favorite economists.

Commentary

John Hawkins of Right Wing News interviews Tom Sowell

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Thomas Sowell

Right Wing News has a great interview with my favorite economist, Tom Sowell.

Excerpt:

Paul Krugman is one of the best known and highest regarded economists on the Left. He says the problem we have right now is the government simply is not spending enough money and the fears we have about the debt causing all these major problems are extremely overblown. What do you say to that argument that is very prevalent on the Left?

Well, it’s a heads I win, tails you lose argument because if we spend twice as much for the next ten years and things don’t get any better – you can still say, “We didn’t spend enough.” We should have spent four times as much. And if we spend four times as much, you can say we should spend 10 times as much. It’s an impossible argument to refute.

It just so happens I’ve been reading a statement by Henry Morganfeld, the Secretary of Treasury under FDR, and he made the statement in 1939 — he said, “We have tried spending money. We are spending more than we have ever spent before and it does not work.” Now this is FDR’s closest confidant, the man who has been in charge of the spending — and after six years of it at this point, they have nothing to show for it and in point of fact, unemployment had gotten back up above 20 percent about a month before he made the statement.

Look at this – the man is branching out from fiscal conservatism into social conservatism. He’s not a Christian, so this is pretty awesome.

Excerpt:

Now, you talked a lot about cultural issues in the book. That’s something you’ve gotten more into in your columns lately. In the book you wrote about gay marriage and the comparison between gay marriage and interracial marriage. Why do you think that’s a bad comparison and what do you say to the argument that gay Americans have a right, perhaps even a constitutional right to get married?

Well, my Constitution must be out of date because I haven’t seen it there. It’s one of many things, such as the separation of church and state, that I’ve never seen there.

Marriage is not a right. Marriage is an imposition of a government’s interest in certain unions. Probably because those unions produce children, but for other reasons, too. Otherwise people could marry or not marry utterly independently of the government.

But what we’re talking about is not gay marriage. We’re talking about redefining marriage through the convenience of leaders who speak for the gays. And I don’t see any more reason for doing that than for allowing bigamists to redefine marriage to suit their convenience.

And you can read Tom Sowell’s latest column on FDR and the Great Depression here. He talks about how the policies of President Roosevely failed to lower unemployment and how they mirror the policies of Obama and the Democrats today.

Commentary

Thomas Sowell explains the concept of “moral hazard”

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Young Thomas Sowell

From Real Clear Politics. (H/T Jojo)

Excerpt:

One of the things that makes it tough to figure out how much has to be charged for insurance is that people behave differently when they are insured from the way they behave when they are not insured.

In other words, if one person out of 10,000 has his car set on fire, and it costs an average of $10,000 to restore the car to its previous condition, then it might seem as if charging one dollar to all 10,000 people would be enough to cover the cost of paying $10,000 to the one person whose car that will need to be repaired. But the joker in this deal is that people whose cars are insured may not be as cautious as other people are about what kinds of neighborhoods they park their car in.

[…]Although “moral hazard” is an insurance term, it applies to other government policies besides insurance. International studies show that people in countries with more generous and long-lasting unemployment compensation spend less time looking for jobs. In the United States, where unemployment compensation is less generous than in Western Europe, unemployed Americans spend more hours looking for work than do unemployed Europeans in countries with more generous unemployment compensation.

People change their behavior in other ways when the government pays with the taxpayers’ money. After welfare became more readily available in the 1960s, unwed motherhood skyrocketed. The country is still paying the price for that– of which the money is the least of it. Children raised by single mothers on welfare have far higher rates of crime, welfare and other social pathology.

San Francisco has been one of the most generous cities in the country when it comes to subsidizing the homeless. Should we be surprised that homelessness is a big problem in San Francisco?

[…]We also hear a lot of talk about “the uninsured,” for whose benefit we are to drastically change the whole medical-care system. But income data show that many of those uninsured people have incomes from which they could easily afford insurance. But they can live it up instead, because the government has mandated that hospital emergency rooms treat everyone.

And here’s another Tom Sowell column making a related point.

Excerpt:

Much has been made of the fact that families making less than $250,000 a year will not see their taxes raised. Of course they won’t see it, because what they see could affect how they vote.

But when huge tax increases are put on electric utility companies, the public will see their electricity bills go up. When huge taxes are put on other businesses as well, they will see the prices of the things those businesses sell go up.

If you are not in that “rich” category, you will not see your own taxes go up. But you will be paying someone else’s higher taxes, unless of course you can do without electricity and other products of heavily taxed businesses. If you don’t see this, so much the better for the Obama administration politically.

This country has been changed in a more profound way by corrupting its fundamental values. The Obama administration has begun bribing people with the promise of getting their medical care and other benefits paid for by other people, so long as those other people can be called “the rich.” Incidentally, most of those who are called “the rich” are nowhere close to being rich.

[…]There was a time when most Americans would have resented the suggestion that they wanted someone else to pay their bills. But now, envy and resentment have been cultivated to the point where even people who contribute nothing to society feel that they have a right to a “fair share” of what others have produced.

The most dangerous corruption is a corruption of a nation’s soul. That is what this administration is doing.

Republicans prefer private voluntary charity as the best way to provide a safety net. Just because people on the left give less to charity than people on the right, it doesn’t mean that no one one gives to charity. Europe has the highest taxes, and they give the least in charity. Why not LOWER taxes for people who want to give MORE in charity? When government hands out money, it encourages people to be more dependent. But when a person in trouble has to go to a neighbor or a charity in their own community, it sends the right message – “this should be temporary – don’t let this become a habit”. It’s not GOOD for someone to depend on the government. People need to work in order to be happy.

Having the government take over the role of provider in the home is an insult to men. It’s not government’s job to replace men. They ought to stay right out of it. Leave money in the pockets of the working man so he can save for a rainy day himself. If you subsidize a behavior, you get more of it. If you tax a behavior, you get less of it. It makes no sense to subsidize irresponsible lifestyle choices and tax productive and moral lifestyle choices. You don’t want to make the rescue from bad decisions an anonymous and automatic affair. You want people to worry, so that they won’t want to make risky and irresponsible choices. Everybody goes through though times, but we shouldn’t make it normal. People ought to know that it’s not normal.

You may want to read about how government dependence makes people less happy than having a job. Don’t make people depend on government by taxing businesses and investment. We need more companies hiring – not less. And that means letting the profit motive provide an incentive for entrepreneurs to engage in more risk-taking and enterprise.