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Money is a counting device used to measure wealth. it is not a commodity in itself. The government's bank account doesn't work like regular people's bank accounts. Economics is pretty complicated, the money flows around and it all ends up back in the government in the form of taxes. Lets say you have a welfare program give 10,000 to an 18 year old who is poor but wants to go to college. ( he'd need good grades to qualify for this ) Ok. the college then receives the money, and 2,000 goes to taxes. The college then spends the leftover 8000 dollars of the money on equipment and salaries and scientific research, another 2000 of which goes to uncle sam in the form of taxes. the money is then given in the form of salaries to scientists and manufacterers, or professors or others, and they buy stuff with it too, paying more taxes. After flowing around a bit, the money eventually ends up back at uncle sam. As i said, Money is a counting device. at the same time the money ( idealy, but not always ) gathers up unspent resources ( such as empty seats at college classes, or out of work science professionals ) and puts them to good use, wheras otherwise they would be unused. This helps the economy. For there is no reason to have unspent resources if there are people who want to use them ( otherwise they'd just be thrown out or unused or unemployed ). However, too much welfare and welfare in the wrong place can lead to too much competition for resouces which causes inflation. So you kindof have to balance it. Some welfare makes sense, some doesn't. For example: Say computers are in high demand, they're selling like hotcakes. It would be a bad policy for government to make a welfare program to help people buy computers, because this will simply cause inflation and raise the price of computers, while not actually increasing the overall benefit ( the number of computers available ). So that would be a bad use of welfare. another example: the government is currently subsidizing farmers to not plant crops, because there is too much food and more food on the market will mean overcompetition between farmers. ( they'll have to sell food at lower than what it costs to farm it, because of so much competition between farmers ) It would be a good government policy, then, to make a welfare program that buys food from farmers and then gives out free food to the people who can't afford it. Because there is plenty of food to go around, there is no reason people should be starving. In addition, if the government feels like there isn't enough education to go around, it could subsidize colleges to build more facilities, or it could start its own public education system. Quote:
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"The belief that nothing exists outside your own mind--surely there must be some way of demonstrating that it was false" - 1984 |
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don't form a "belief" and then make its dogma provide the answers to your questions, just believe in the answers to well considered questions, until you derive even better answers. there is no rule that says you have to be liberal or conservative, democrat or republican. Quote:
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actions taken by the government that serve to destabilize the economy, such as requiring a disproportionate portion of the GDP, will cause wealth holders to move their holdings into another currency. if the inclination toward spending borrowed money for wants, rather than federal needs, is an indicator, an appreciation of this potential negative outcome does not appear to be widespread in government. the elected representatives need funds to remain in office and to secure those funds they rely on contributions from those who want access to the federal treasury (in one form or another). that return on investment to the "contributor" causes the government to effectively spend for private rather than public purposes. its easy to spend someone else's money, and even easier when you get something for doing it. so, my guess is, that unless we smarten up and realize that buying favors at taxpayer expense weakens our economic condition, and put an end to now legal but inappropriate influence buying our fate will be to lose that economic advantage of printing the world's sought after currency. when that happens we will no longer have foreign interests loaning us money to waste on government expenditures for the privileged and we will have only one option - prioritize what we spend out of necessity. (as an aside, disallowing direct contributions to candidates excepting only those who are registered to vote in the precinct in which the candidate is on their ballot would accomplish this remedy - recognize that NO lobbies or corporations can register to vote, thereby eliminating their contributions). and that was the short answer ... you speak of government as if it were a singular entity, but government is actually two-headed ... an elected corps that responds to the political winds and another corps of careerists who weather the storm and keep government operating despite the changes in the politically elected and appointed officials who provide direction to the organization. that is a deep topic on its own and is indicated just to illustrate why answers to complex problems cannot be expected to be simple. ymmv |
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"I am a Tory Anarchist. I should like every one to go about doing just as he pleased- short of altering any of the things to which I have grown accustomed." (Max Beerbohm) |
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You've been called a liberal?
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What's this i hear bed? Word has it you and Pam are sleeping together. |
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Okay, putting aside the alleged inefficiency of government spending for the moment, I'll make a hypothetical example about incentives. If the government gives a person housing, that is prima facie morally good, but if the person then becomes dependent on the government for housing, then his or her children grow up in the same state of dependence and the person does not seek employment because his or her needs are taken care of, why wouldn't that weaken the economy? I have no doubt that immediately slashing welfare can increase poverty in the short term, but doesn't that indicate that the need for welfare is self-sustaining? In other words, once welfare exists, more and more people become dependent on it and don't know how to provide for themselves- at least that is right-wing theory. I knew a beggar very well. He received Social Security disability checks and undoubtedly Medicaid as well. I have to wonder, though, whether at some point earlier in his life he might have become dependent on welfare unnecessarily. Especially since I have met a number of poor people, I hate to look at human suffering in this way, but I have to follow facts wherever they lead me. Is there some key piece of this puzzle I'm missing? I sincerely hope that there is.
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"I am a Tory Anarchist. I should like every one to go about doing just as he pleased- short of altering any of the things to which I have grown accustomed." (Max Beerbohm) |
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I would say, that the problems with the unmotivating effect of the welfare can be avoided. Typically it is that big problem, but with solutions like the citizen-salary the counter-motivational effect can be greatly reduced or even removed. I say that the Scandinavian countries are rather good examples of a working welfare state. Especially the Danmark's model with the work-force has recently gained praise. Quote:
But anyway, by removing the pork and bringing down the ever-growing war-machine you should save enought to make some nice social improvements. Still, constructing the social system does require money. In this way, you really have to compromise between the social values and the economic values. Still, even if the welfare system uses money and means high taxes, lot of used money work actually as an investement. The money put on education and health care will surely pay itself back. The opportunities and the security provided for the poor tend also to calm society and its internal conlflict. This means savings, since it tend to reduce the theft and destruction of property, murders, people in prisons and the burden on the law-enforcement. Quote:
What is truly important to realize with human psychology is that people don't think wealth in absolute terms, but only as it relates to others. The amount of men above you and the ones under you will not change and neither will the significance of wealth. Quote:
I would say that the essential thing is the overall corruption rate of the goverment. If the corruption is rare, the welfare system will work seamlessly. If the corruption rate is high, then certainly - you should think twice before yelding any penny for any reason, whether the reason is welfare or war. - BtD
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"Freedom is the freedom to say that two plus two make four. If that is granted, all else follows." [George Orwell, 1984] |
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I hadn't thought of that. Obviously I've been looking at human beings as more logical than they actually are. When I think about welfare states, Sweden disturbs me more than any other. It keeps its economy going by effectively requiring that all people work outside the home. That eerily resembles totalitarianism and isn't worth any amount of economic progress.
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"I am a Tory Anarchist. I should like every one to go about doing just as he pleased- short of altering any of the things to which I have grown accustomed." (Max Beerbohm) |
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Believe me there is no requirement for people to work outside the home in Sweden or in any other Nordic state. Also women tend to work and well - it is partly economic question - people like luxuries, but there is much more in it than that. Sweden is often thought as relatively equal state, not only between people of different social classes, but also between the different sexes. Many modern women like to work and they also work partly to be equal with men and to be independent from men. Also, because the school system and the luxuries of the modern world, there isn't that much *work* in todays homes. I could also blame the educational system. People, who have been highly educated with the tax-payers' money, might well have professional ambitions or think the work as a responsibility And BTW. Where have you got this idea from? - BtD
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"Freedom is the freedom to say that two plus two make four. If that is granted, all else follows." [George Orwell, 1984] |
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I'm 100% in favor of letting women work outside the home and destroying all cultural and economic barriers to their equality. I am a strong supporter of affirmative action for both women and minorities. I don't want anyone required to work outside the home, though, anymore than I want anyone required to work in the home. If this is a false rumor, perhaps you can set the record straight, because many Americans believe it. I read on an Internet site that it is essentially impossible for any man or woman to be a homemaker in Sweden. I first heard this from my mother, by the way.
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"I am a Tory Anarchist. I should like every one to go about doing just as he pleased- short of altering any of the things to which I have grown accustomed." (Max Beerbohm) |
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