Wealth Is An Organic Entity – No One Can Redistribute It
We need to make an intelligent vote for president in November, so let’s look at Mr. Obama’s plan for our future.
SLOGANS MUST BE IGNORED, FACTS MUST BE CONSIDERED
Four years ago, Mr. Obama said he would bring “Hope and Change.” Mr. Obama did inherit an economic mess, but nobody forced him to run for office – he wanted the problem because he thought he had the answers to fix it.
Mr. Obama made few specific promises about what he wanted to “change.” There was the promise to shut down the war in Iraq, stop renditions, keep unemployment below 8%, close Gitmo, provide more people with health insurance without increasing the cost, provide immigration reform; and of course healing the planet, lowering sea level and other claptrap consistent with his view of his exalted messiahship.
In the mind of the American voters, “change” meant settling the economy down so jobs could be created, stopping Wall Street banks from looting the people, and bringing about an honorable end to our wars in Afghanistan and Iraq. We wanted a return to normal.
He didn’t tell anyone that he planned to take over healthcare and manage its cost by delaying, denying, and diluting healthcare for the people; that his $787 billion “stimulus” was not for job creation, but for preserving government union jobs in targeted states, $90 billion for green energy political supporters, higher salaries for federal workers, expensive conferences for the General Services Administration, Veterans Affairs, and other departments; and running guns for Mexican drug cartels.
Now people have lost all hope, and stand begging for change. So they can eat.
Now that all Hope is gone, Mr. Obama’s new plan for the exercise of the power of the presidency is, well; “Forward.”
Hope and Change brought change that only 29% of Americans actually want.
So, now he wants to move us “Forward.”
Forward to what to what, you ask? Oh, no…no, no, don’t be such a rube – you don’t ask the logical question, stupid! Instead the Democrat Party thinks a sufficient number of Americans are so daft that we will imagine what we think he means by “forward” rather than analyzing what he means when he says “forward.”
The intelligentsia, academia; and the chattering class in the media along with way too many people who prefer faith in an empty promise to analysis of what Obama wants are among the daft who elected him the first time. Many of them will try to do it again. Some people are so easily suckered it’s painful to watch. You saw the swooning videos.
WHAT MR. OBAMA MEANS BY “FORWARD”
Recently in Chicago Mr. Obama gave a glimpse into what he means by his “Forward” theme, he said:
“Too many folks still don’t have a sense that tomorrow will be better than today. And so, the question in this election is which way do we go? Do we go forward towards a new vision of an America in which prosperity is shared? Or do we go backward to the same policies that got us in the mess in the first place?” Here, and here.
Since this is as specific as he is going to be about his intentions, we have to analyze what he said. Stick with me here while we unpack this just a bit.
FIRST: he says too many people have lost the hope that tomorrow will be better than today. On that everyone agrees – unfortunately for him, most of them think he is the reason.
SECOND: he says the old way got us into the mess we have now.
THIRD: he says he is offering a new way, “forward towards a new vision of an America in which prosperity is shared.”
In order for us to decide if we want him to be president for another 4 years, we need to understand his logic here. He is contrasting the “backward policies that got us into this mess in the first place,” with his plan to “go forward towards a new vision of an America in which prosperity is shared.”
Here’s what Mr. Obama is saying about his plans for a second term:
“We haven’t been sharing the prosperity, our taxation is unfair, the government has been stingy and has refused to share the prosperity – that’s why we have this mess we’re in! We need a new vision where the prosperity is truly and indeed shared, so you need to reelect me so we can get this done.” That’s his sales pitch for another 4 years.
AMERICAN HISTORY OF “FAILING TO SHARE THE PROSPERITY”
To understand whether he is right, or not, we have to look at the past and see what has been shared.
Beginning in 1933 with the election of Democrat Franklin Delano Roosevelt who considered our Constitution an Insufficient Deal began the following programs that together are called the “New Deal” – to “share the prosperity.”
- Create jobs for people by making the federal government the nation’s largest employer – WPA, CCC, FWA, FERA, Public Works Administration, and United States Employment Service (USEP)
- Fix wages private employers must pay to “share the prosperity” rather than rely on the marketplace for the value of labor – Minimum Wage
- Officially promote unionism of the workplace in order to force companies to pay more company profits to workers – the Wagner Act, National Labor Relations Board, National Railroad Adjustment Board, National Bituminous Coal Commission, Railroad Retirement Board, Maritime Labor Board
- Force people to live in government housing – Resettlement Administration, United States Housing Authority
- Make some people pay for benefits that are then given to somebody else to “share the prosperity” – Rural Electrification Administration, Tennessee Valley Authority, Social Security Administration
- Use tax dollars to transfer money from some people to others by subsidizing housing loans for other people – Federal Housing Administration
- Require poor people to pay more than the market price for products from the nations farmers because farmers were a favored group – Agricultural Adjustment Administration
- Share the prosperity by using tax dollars to keep loser banks in business – Reconstruction Finance Corp
- Share the prosperity by using tax dollars to invest in risky government financing of home loans – Home Owners Loan Corporation, Federal Housing Administration
- Provide other people’s money for welfare for young people – National Youth Administration
- Spread the prosperity by taking control of private shipping – U.S. Maritime Commission
- Have the Executive Branch seize unconstitutional power from the Legislative in order to streamline redistribution of wealth – Reorganization Act
After John F. Kennedy was assassinated Lyndon Johnson took over the presidency and inaugurated the Great Society. Among his efforts to “share the prosperity” were:
- Further diminish the concept of private property taking money from people who actually earned it to transfer $trillions to other people – War on Poverty, Appalachian Regional Redevelopment Act, Job Corps, Neighborhood Youth Corps, Volunteers in Service to America, Upward Bound, Food Stamp Act, Community Action Program, Head Start, Medicare, and Medicaid
- Take even more of the substance from the people who earned it to pay for transportation for poor people on very expensive choo choo trains by spending further hundreds of $billions on mass transit – Urban Mass Transportation Act, Federal Transit Administration
- Transfer money from the citizens to union political supporters requiring that all government contracts must cost as much as possible by requiring the highest possible wages on all government jobs – Davis-Bacon
- Radically increase the cost of driving to work and then increase transfers of income to help people afford it – Department of Transportation, National Traffic and Motor Vehicle Safety Act, National Highway Safety Administration, Motor Vehicle Air Pollution Control Act
- Confiscate personal wealth from some to dictate how we should all live – Model Cities Program
- Take hundreds of $billions more from the taxpayers to provide large housing projects for other people ( all of which became dangerous drug havens requiring many $millions more to have them demolished because they were environmental hazards, drug dens, and murder rooms) – Omnibus Housing Act of 1965
- Confiscate private property from some people who own it so other people can enjoy it – Wilderness Act, Endangered Species Preservation Act, National Trails System Act, Wild and scenic Rivers Act, National Environmental Policy Act, and National Historic Preservation Act
- Confiscate taxes from some of the people in order to subsidize millions of houses and apartments for other people – Housing and Urban Development
- Spend $billions through the years to propagandize the citizens into supporting massive transfers of money to share the prosperity – Corporation for Public Broadcasting, Public Broadcasting Service
- Spend hundreds of $billions to hire endless numbers of highly paid federal bureaucrats to increase the cost of borrowing money with regulations that no one reads – Truth in Lending Act
- Spend $billions in transfer payments from taxpayers to failed entertainers and “artists” and here on entertainers who cannot succeed in the marketplace – National Endowment for the Arts, National Endowment for the Humanities
- Complicate purchases and increase prices for all commodities then demand we subsidize people so they can afford to purchase them – Fair Packaging and Labeling Act
- Transfer wealth to favored political supporters by forcing private employers to hire the people the government wants to be employed rather than the people who will best help the business – Equal Opportunity Act
This is the “old way” that Mr. Obama says is “backwards.” Trillions and trillions of dollars taken from some and given to others is not nearly enough! He wants to share much more of it, because what we’ve been doing is insufficient. Continuing on that path is “backwards” to him. We’re cheapskates. We must have social justice, and we MUST SPEND MORE.
HOW EFFECTIVE HAVE THESE PROGRAMS BEEN IN SHARING THE PROSPERITY?
What is the current state of all those the programs and more begun under Democrat Party heroes FDR and Lyndon Johnson? How much do we already spend to share the prosperity? And, are “sharing the prosperity” programs effective in terms of, well; actually sharing the prosperity?
First, the federal government has no idea of how many categories of welfare programs they actually have much less the number of actual programs, but they do know it’s “in the hundreds.” In addition they have no idea if any of them accomplish anything, although they say, “It would be a good idea to have a number of how many programs there are, what exactly are we spending, and what are we getting for that money.” Does it really sound to you like we need Mr. Obama and the Democrats to inaugurate more programs to “share the prosperity?”
Of the hundreds of prosperity sharing programs begun in the past – NOT COUNTING SOCIAL SECURITY, UNEMPLOYMENT INSURANCE, OR MEDICARE – spent $927 billion in 2011 alone.
About 25% of all the money the federal government spends in any given year is spent on these many hundreds of programs (nobody knows how many for sure) that may or may not “work.” One hundred percent of the money for all these programs comes from people who “share their prosperity” through the confiscation of taxes.
For Obama, this is the wrong way, its backward because some people still have too much money. They need to be taxed more – “it’s patriotic,” Joe Biden says. And some people are afraid to call the president a socialist! He is shouting his intention to completely socialize the United States, and should be insulted when people refuse to recognize it.
Worse, the welfare programs described above amount to 500% OF THE MONEY IT WOULD TAKE TO GET EVERY PERSON IN THE UNITED STATES OUT OF THE OFFICIAL POVERTY LEVEL – 5 times! (The actual amount spent in 2011 PER PERSON in poverty was $19,082. That is $38,164 for a couple; $57,486 for a couple with one child, $76,328 for a family of 4, and $95,410 for a poor family of 5.)
How does that work? It works because only 3% of all welfare benefits are considered income for purposes of counting poverty by the Census Bureau. Prosperity sharing has never really begun in his view; and Barack Obama intends to seriously start it in his second term.
There can be no question: if 25% of the federal budget is already given to sharing the prosperity right now, then on top of that we add Social Security, Medicare, and unemployment insurance; what could Obama possibly mean other than a government based system of redirecting all wealth creation according to how he personally thinks it must be redirected?
When Mr. Obama says he wants to level the playing field what WE think is that he wants to give everyone an equal chance. What HE is thinking is giving everyone an equal result. All teams win first place! Every runner gets to the tape at the same time! All teams win the Super Bowl, and all players are paid the same. The fast must share with the slow, winners must share with the losers; the talented must share with the untalented; or lazy. It must not be a matter of charity or compassion; it must not be based on merit. No! It must be done by unelected, overpaid petty government bureaucrats with Napoleon complexes; with Barack Obama – Napoleon himself at the helm.
CAN WE BE SURE HIS PLAN IS THIS RADICAL?
Listen to him again. But we have other evidence.
Listen to a new ad Mr. Obama has produced to promote his candidacy. It features Bill Clinton stating what the Obama campaign has written for him to say: “President Obama has a plan to rebuild America from the ground up.”
Elsewhere he said he wants to “spread the wealth around.” He will “fundamentally transform the United States of America.” and “we are the ones we’ve been waiting for!” Mr. Obama and the Democrat Party are engaged in a radical attempt to change the nature of America, our economic system, our economic freedoms, and our freedom of religion. It is a full scale revolution.
THE CONSEQUENCES OF STUPIDITY
The Constitution provides for changes that may need to be made concerning the United States. We have amended it 27 times since it went into effect March 4th 1789.
Its crystal clear that Mr. Obama and the Democrat Party plan a revolution if he is reelected. They plan to “rebuild America from the ground up,” according to “a new vision in which prosperity is shared” – but they make no reference to the Constitution at all. They think they don’t have to follow the Constitution. The messiah has become an Emperor who can do as he likes; the Constitution can take the hindmost. Well screw that.
Raise Taxes and Spending
We have the highest business income taxes in the world now, (Which is why businesses are moving to other countries where they can produce products people can afford) but he wants to raise them more. Since 25% of all federal spending is on welfare payments – not counting Social Security, Medicaid, and unemployment insurance checks. All the rest of the government: the military, federal workers salaries and retirement, highway maintenance, air traffic control, mass transit, complete waste green energy projects, subsidies for ethanol to put corn into your gas tank, federal employee retirements, raises for government employees (who already receive from 15% to 36% more compensation than private workers), maintain 14,000 buildings unused for years managed by the GSA, the cost of GSA conferences, Secret Service and White House staff to maintain the President’s lifestyle, have to be paid for with what’s left.
We can’t keep up with the expensive spending now. In 2011 alone we spent $234 billion just on interest, 234,000 million dollars! We spend 8% of total federal spending on interest. That alone would make 234,000 people millionaires. This would make every person in Chandler, AZ. Madison, WI, Norfolk, VA; or Lubbock, TX a millionaire. That amount of money would give every individual in the U.S. 18 and older a check for $1,000. But instead the money is sent to wealthy people who buy bonds; to huge banks; and to China all to pay for failed programs from the past.
Yet it continues. Transportation Secretary Ray LaHood is happy to have spent $48 billion creating 65,000 jobs – that’s $738,461 per temporary job. As a Democrat he thinks this is a good thing.
Mr. Obama spent $90 billion on green energy ostensibly to make the U.S energy independent but almost all of which has gone to political cronies. The $90 billion created 16,100 jobs; that works out to $5,590,000 per job!
Obama’s Affordable Care Obamacare plan that he promised would cost less than $1 trillion ($900 billion) in its first 10 years is now estimated by the CBO to cost $2.6 trillion (2,600 $billion) in just its first 10 years. Expect that to go up! Mr. Obama may be a lawyer, but he can’t do grade school math. He was off by a factor of 300%. The current estimate of the real cost of his $900 billion program will be 65.4% higher than he said. Would you trust this guy to “rebuild America from the ground up”?
USDA spends $2 million on intern program and didn’t hire one intern.
Bureau of Indian Affairs funded a fish hatchery for 14 years that never hatched 1 fish.
The examples are endless; and Democrats promise to never end them, but to get really serious about beginning endless new programs like these. MR. OBAMA’S OWN BUDGET (that is if he gets the tax increases he wants.) will raise the nation’s debt to $20 trillion budget by 2016; and to more than $25.4 trillion by 2022.
People are Dynamic
People respond to events. This may sound like a cliché to you, but Mr. Obama doesn’t believe it for a moment! He can increase taxes, and the people will just pay them. He can requires businesses with 50 or more employees to provide health care for their employees, and the company will just pay for it. Nobody is capable of looking out for their own interests.
On the contrary, people with serious money will move it out of the country to avoid confiscatory taxes; businesses which have 55 or 60 employees or more will lay off 10 or 15 of them and hire part time employees to keep their costs down. Make it too hard on small businesses, and many of their owners will sell off their properties and equipment, fire everybody, invest their money and bag it into retirement. People respond to events. Expect it.
Make the cost too high for those capable of creating new businesses and they will no longer do it. Therefore there will be no new employees.
Wealth Cannot be Redistributed by Governments
Government attempts to “share the prosperity,” or redistribute the wealth all have the same result: Wealth decreases, poverty spreads; eventually there is invasion or revolution because wealth is not money and stuff. People who seek material stuff will remain poor; people who create will become wealthy. This is why prosperity cannot be shared.
The finest explanation of why redistribution has not worked and is a “mess;” and why an even more aggressive attempt to do it by the Democrat Party will be an even bigger mess is clearly understood in these words by George Gilder:
AMERICA’S WEALTH IS NOT AN INVENTORY OF GOODS; IT IS AN ORGANIC ENTITY, A FRAGILE PULSING FABRIC OF IDEAS, EXPECTATIONS, LOYALTIES, MORAL COMMITMENTS, VISIONS. TO VIVISECT IT FOR REDISTRIBUTION IS TO KILL IT.
THE BELIEF THAT WEALTH CONSISTS NOT CHIEFLY IN IDEAS, ATTITUDES, MORAL CODES, AND MENTAL DISCIPLINES BUT IN DEFINABLE STATIC THINGS THAT CAN BE SEIZED AND REDISTRIBUTED — THAT IS THE MATERIALIST SUPERSTITION. IT STULTIFIED THE WORKS OF MARX AND OTHER PROPHETS OF VIOLENCE AND ENVY. IT BETRAYS EVERY PERSON WHO SEEKS TO REDISTRIBUTE WEALTH BY COERCION. IT BALKS EVERY SOCIALIST REVOLUTIONARY WHO IMAGINES THAT BY SEIZING THE SO-CALLED MEANS OF PRODUCTION HE CAN CAPTURE THE CRUCIAL CAPITAL OF AN ECONOMY. IT BAFFLES NEARLY EVERY CONGLOMERATEUR WHO BELIEVES HE CAN SAFELY ENTER NEW INDUSTRIES BY BUYING RATHER THAN BY LEARNING THEM. IT CONFOUNDS EVERY BUREAUCRAT OF SCIENCE WHO IMAGINES HE CAN BUY OR STEAL THE FRUITS OF RESEARCH AND DEVELOPMENT.
Read his entire piece here.
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