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Sunday, February 20, 2005

Bait and Switch

I said I'd cover Social Security next, but I just came across a perfect opportunity to demonstrate the laws of economics in a way that even a (non-left-wing) child could understand. We start with this article which was posted in full in Scrappleface's comment section. The guy's not too bright, but he does have some common misperceptions that need to be beat out of him. Either that, or he'll be the first to die when the Revolution comes... Anyway


In other words, the welfare check money eventually ends up in the Walmart cash registers, so what difference does it make how it got there......
The difference is that the people did not work; fewer goods were produced; the stuff at Wal-Mart now costs more, because of Supply and Demand; and a lot of tax dollars were spent so somebody could buy an X-Box for their malnourished children.
And as wealth concentrates, there is a tendancy for the rich to protect themselves by using fascist politics and perhaps "death squads" to put down lower class dissenters.
Hahahahahahaha, ha. O/T, but I thought I'd share.

For example, a NATIONAL HEALTH CARE PLAN would take a huge burden off business thus aiding competitivness....
No, because those businesses would be paying higher taxes, or the workers would be paying higher taxes. In the second case, wages would rise or demand would fall, screwing the businesses once again. Then he babbles about helping the poor, which is good in theory. I'll address health care later.
but a system of tax and benefits could be devised to incentivize and subsidize,
There's the problem. Money runs downhill, just as any system seeks the lowest energy state; right now, money gets channeled to 1) the hardest workers 2) the smartest workers 3) the best products, and 4) the most profitable companies. Anything that the government does interferes, thus adding friction to the economy and reducing its output. Since economic growth is continuously compounded, GDP(t)=t0(1+G/t)^Yt, anything the government does to help a poor person today creates 10 poor people a few years from now. Of course, unprotected sex between construction workers who still live with their parents also creates more poor people... Mike, you idiot. Anyway... I'll start working on my analysis of the White House SS strategy now.


Anonymous Miss Virginia said...

Construction workers are not generally as poor as fast food workers. Other than that, great!

Makes my mind spin to hear liberals claim it's just as good to give money to the idle as to the producers. Most of the idle can produce something if properly incentivized. By that I mean paid for something, not nothing.

3:46 PM  

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