Political cartoonists like Michael Ramirez and Chuck Asay are effective because they convey so much with images.
But we need more than clever cartoons if we’re going to educate the general population about how government harms the economy and undermines freedom.
And that’s why Thomas Sowell is so invaluable. He’s one of the nation’s top economic thinkers, but he also writes for mass audiences and his columns are masterful combinations of logic and persuasion.
His latest column about poverty is a good example. In this first excerpt, he succinctly explains that official poverty is not the same as destitution.
“Poverty” once had some concrete meaning — not enough food to eat or not enough clothing or shelter to protect you from the elements, for example. Today it means whatever the government bureaucrats, who set up the statistical criteria, choose to make it mean. And they have every incentive to define poverty in a way that includes enough people to justify welfare state spending. Most Americans with incomes below the official poverty level have air-conditioning, television, own a motor vehicle and, far from being hungry, are more likely than other Americans to be overweight. But an arbitrary definition of words and numbers gives them access to the taxpayers’ money.
He then makes a very important point about economic incentives.
Even when they have the potential to become productive members of society, the loss of welfare state benefits if they try to do so is an implicit “tax” on what they would earn that often exceeds the explicit tax on a millionaire. If increasing your income by $10,000 would cause you to lose $15,000 in government benefits, would you do it? In short, the political left’s welfare state makes poverty more comfortable, while penalizing attempts to rise out of poverty.
Since columnists are limited to about 800 words, Sowell doesn’t have leeway to give details, but his explanation of how the government traps people in poverty is the rhetorical version of this amazing chart.
He concludes with some powerful observation about who really benefits from the welfare state.
…the left’s agenda is a disservice to [the poor], as well as to society. …The agenda of the left — promoting envy and a sense of grievance, while making loud demands for “rights” to what other people have produced — is a pattern that has been widespread in countries around the world. This agenda has seldom lifted the poor out of poverty. But it has lifted the left to positions of power and self-aggrandizement, while they promote policies with socially counterproductive results.
But his main message (similar to this video and illustrated by this chart) is that the welfare state hurts the poor even more than it hurts taxpayers.
P.S. As a big fan of Professor Sowell, I’ve cited his columns more than 20 times. My favorite examples of his writing can be viewed here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, and here. And you can see him in action here.
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[…] Thomas Sowell Explains How the Welfare State Hurts the Poor […]
[…] Thomas Sowell Explains How the Welfare State Hurts the Poor […]
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[…] Thomas Sowell Explains How the Welfare State Hurts the Poor […]
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هيئة المهندسين التجمعيين – corps des ingenieurs du parti du RNI
corps des ingenieurs du parti du RNI
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[…] And since the poor are most dependent on growth to get a good foothold on the economic ladder, Prof. Sowell surely is right when he states that it’s better to leave resources in the productive sector of the economy. Moreover, he’s explained in the past that the welfare state certainly doesn’t help the poor. […]
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Thomas Sowell is my favorite columnist. It’s a shame that somebody so brilliant is only known to a few, while somebody lacking any wisdom – Barack Obama – is so popular.
[…] Thomas Sowell Explains How the Welfare State Hurts the Poor […]
The negative income tax is the welfare trap. However, all welfare programs must also be eliminated.
Man, I like Thomas Sowell. He almost convinced me that social welfare is bad.
socialism is a disservice to humanity… it destroys the spirit… enslaves populations… and empowers despots… nothing good will ever come of it…
[…] Mitchell comments and expands on Thomas Sowell’s latest column. Both are well worth […]
Yes, but the redistribution benefit, while short term, is immediate, while the more permanent and compounding growth rate and prosperity, are future promises.
The typical voter will go for the short term benefit. A redistribution dollar today is worth five growth dollars in the future. Politicians are more than eager to provide, since significant redistribution requires a big state and increased demand for politician services.
In this short vs long term misinterpretation, lies the decline of modern western democracies.
Thank you for relinking to that amazing chart of the Welfare Cliff. I have been looking for that exact chart. Do you know if anybody has prepared a similar chart to show the effect of Expanded Medicaid under ObamaCare? I think that such a chart would make a compelling argument against Medicaid expansion.
Humor:
This year the U.S. Department of Agriculture is bragging that it is distributing the largest amount of free meals and food stamps ever…to 46 million people.
At the same time, the National Park Service, under the auspices of the U.S. Department of Interior, cautions people visiting national parks not to feed the animals. Their stated reason is, “The animals will grow dependent on the handouts and will not learn to take care of themselves.”
Based on the “Julia’s Mother” chart, the effective tax rate is 700% for earning an additional $1,000 on top of $29,000, as the housing and most of the food subsidy is lost.
At $43,000 in income, the effective tax rate is 800% on an additional $1,000 earned, as childcare is lost.
Is there any wonder that these benefit cliffs create mal-incentives against earning and incentivize dependency.
Thomas Sowell is a gem.
I am also a huge fan and wrote something similar today and this idea that education globally is to be about problem solving and values that put the common good first just enables this very predator class. If solving problems is the raison d’etre and there is no accurate , non-approved knowledge anymore, we will have both more of the problems at issue and the ones not in the limelight created by such abysmal incentives.
It would be a good Independence Day if more people learned to suspect claims about public good and the common good and equity. Usually they are just an excuse for more Administrators to manage us all.
Thomas Sowell is my favorite, as well. Great minds think alike!
I think you’re missing the link to Dr. Sowell’s original article, unless I just can’t see it.
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