Opinion from a Libertarian ViewPoint

How Countries Fall into the Welfare Trap | Mises Wire

Posted by M. C. on April 1, 2019

Just like war. Infrastructure crumbles while we are busy building aircraft carriers that cannot launch planes.

People like the welfare state because they suppose that it comes at no costs and provides many benefits. If people knew how much the present consumption of social benefits entails less prosperity in the future, the population would have a critical attitude towards the welfare state and politicians would have a harder time selling their fraud. Just as a society that ranks security over liberty loses both, a society that attributes a higher value to social benefits than to wealth creation ends up with neither wealth nor benefits…

Redistribution is unjust and economically irrational when it punishes those who produce. When the redistribution of income and wealth becomes excessive, the active part of the population withdraws from production and parasitism takes over, economic progress will falter und finally disappear. This way, society will impoverish, and the poor are left with less to nothing. In the end, the poor themselves will pay the steepest price of this policy because they will be the hardest hit when growth falls and the misery rise…

Without productivity gains, there is no increase in real per capita income. The labor productivity of a country determines its income level. The industrialized nations must get out of the whirlpool of welfare spending, public debt, and weak economic growth. Lifting the purchasing power of salaries requires higher productivity. Not more state control is the way to higher productivity but less regulation, less intervention, and less redistribution.

Be seeing you

lab rat




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