Money from Nowhere

Deck Knight

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So SDS and I got into an argument about health care last night, but that's not the point. I reject his premise and since all his arguments rely on that premise, we can't have any decent level of discourse that doesn't get me kicked for "factual inaccuracy". It is difficult to avoid factual inaccuracy when debating someone who uses a different set of facts.

Since I'm sure I'll be called on it, my premise is that all health care systems have strengths and weaknesses, and comparable results indicates comparable success. If one system is "proven" to work then all comparable systems are also "proven." Therefore the discussion becomes why to absorb all the costs associated with changing the system to a vastly different model rather than arguing which system inflicts more agony and destitution. If an immoral, indecent, backward, agonizing, and destitution-causing system results in the same life expectancy and general health-care outcomes as a kind, loving, benevolent, maternal, and compassionate system, I don't see what's different other than the spin on the mechanisms of that system.

What was more interesting to me was the spin-off discussion sparked by Medicare. Specifically, medicare is an example of socialized medicine currently existent in the United States and is projected to bankrupt. The obvious solution then, would be to throw more money at it because it is "underfunded."

Money from where? SDS was too irritated by me to continue (and it was late), so I'm moving the discussion here.

This ties in with another issue that has come up recently in the wake of losing the 2016 Olympics, Chicago youth violence. It is argued that Chicago needs more federal resources to fund the programs. "Federal resources" is usually a synonym for taxpayer dollars.

The issue is the same, money from where? This clip illustrates the disconnect from the need for money and its source.

Everyone knows that money is a finite resource. It is illogical to assume an infinite level of funding. It is also illogical to assume that an increase in funding leads to a directly proportionate increase in results. This study concludes that while increasing spending per pupil does increase test scores, the most effective funding mechanisms are localized.

Localized funding mechanisms are subject to much further review and scrutiny than other funding mechanisms. There are also no constitutional breeches associated with local funding and implementation policies. In any case this study points to maximizing efficiency in resource allocation. The resources themselves are still finite. You could not take this study and logically argue to increase local property taxes everywhere by 500%. You could make the argument, but you would have to recognize that you are not pulling money from nowhere. Homeowners pay property taxes and the state's income is derived directly from their ability to work independently of government assistance.

Ultimately you must ask the question: Where does the money come from? For government programs, the answer is taxes, fines, and fees. With taxes the government takes a certain percentage from your gross pay and filters it into various federal trust funds. Fines are collected for illegal activities and fees are costs associated with renewing licenses and other localized mechanisms.

Naturally you can't institute a 100% tax because you are destroying the incentives for people to work. If people do not work, there is no money for the government to collect, and people currently on government assistance are simply returning money the government has already taken from others, recycling it between the two constantly and losing transaction costs in the process.

Tax paying citizens are the source of money for all of these programs, and tax paying citizens enjoy having a high quality of life. They can only do so if they figure by working hard and utilizing their intelligence that they can improve the quality of their life.

I have come to the conclusion over time that egalitarian philosophy is evil. Egalitarian philosophy promises equal outcomes for unequal efforts. It creates a net drag on effort, and therefore productivity. Ironically, egalitarianism requires productivity to function as the end-result of zero effort is zero output. Zero is by definition impossible to redistribute. Thus the logical conclusion of egalitarianism is zero outcomes for everyone.

In such a system, the number of people who will "do the right thing" becomes less and less as they realize more and more people have become freeloaders. Inevitably you end up with a system where 49% or less of the people produce the work that sustains the other 51% or more of the people. Once you reach that point, a majority of the system has become free-riders with an entitlement mentality (and vested interest in maintaining the system), and no rational person wants to expend effort to support such people.

Rational people support egalitarian policies because of the emotional benefit that comes with caring for the less fortunate. When your effort remains the same or increases yet the demands and outcomes of the "less fortunate" grow ever larger, you lose all emotional incentive to support that group. In an oppressive egalitarian state they may be prohibited from moving away, so they will take their only recourse in refusing to work.

So what is your take. Is egalitarism evil? How can such a system be implemented over the long term? If it can be, how can it ensure productivity?

Remember that for the purposes of this discussion, egalitarianism is the equal distribution of outcomes. The equal distribution of opportunity is not egalitarianism, because equality of opportunity does not create equality of outcomes. The principle of comparative advantage comes into play with equality of opportunity where it does not with equality of outcomes.
 

Firestorm

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How much money could be re-directed once the US pulls out of Iraq? Or would all that money saved be going to China to pay back the loans covering the ridiculous cost of that ridiculous war? It seems to me that after whatever time it is that is currently set to get the hell out of Iraq, that there should be a decent amount of money freed up that could go to more important things, like health care.
 

Tangerine

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Ultimately you must ask the question: Where does the money come from? For government programs, the answer is taxes, fines, and fees. With taxes the government takes a certain percentage from your gross pay and filters it into various federal trust funds. Fines are collected for illegal activities and fees are costs associated with renewing licenses and other localized mechanisms.
The money actually comes from economic growth, without having new taxes. If the economy continues to grow, then we can sort of make up for the deficit. That's actually one of the rationale behind debt based spending, and a support for Keynesian Economics (and one of the reasons why Broken Window Fallacy doesn't really apply to Keynesian Economics).

The money, in theory, so to speak, is supposed to come off from economic growth (and as we grow in population, we need more money, etc). It doesn't really come from nowhere or more taxes or anything like that - the idea is that the government roll over debt indefinitely as long as economic growth follows.

Anyway... with the definition you have put forth - what's the difference between egalitarianism and... communism/socialism?
 

Deck Knight

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RE: Firestorm:

The cost of the Iraq War over the last seven years is calculated as 550 billion dollars, 1.9 trillion including interest.
The stimulus bill passed is calculated at 792 billion dollars, 3.27 trillion including interest.

The Stimulus Bill Obama passed slated the same money for expenditure in six months that the Iraq War actually cost over seven years. The Stimulus has bluntly been worthless and in fact the people from Detroit in the clip have signed one of 65,000 applications for the 15 or so million dollars in stimulus funds. The stimulus was theoretically supposed to address the economic downturn, not be a general fund for welfare payments and other political payoffs. The White House has couched most of its defense of stimulus into how bad it would have otherwise been. Unfortunately you can't actually prove what would have happened in an alternate history. The only thing we'd know for certain is that we would not have spent 792 billion dollars that would not be have been applied to our deficit. How that effects everything else is unknown.

This Administration has no qualms printing and spending money it doesn't have, so while the Iraq War and Afghanistan are costly items, they are a pittance compared to what Obama has already slated for expenditure in less than a quarter of his term. In other words we could stay in Iraq at the averaged 2002-2009 levels for another eight years and spend the same amount of money as Obama's Stimulus bill was slated to expend after being rushed through two months into his term.

Meanwhile we have U6, total unemployment and underemployment, at 17%. We've spent about 13% of the stimulus money so far. We essentially have an unproven and unknowable bang for our buck, though I am impressed they've managed to spend 100 billion in 7 months.

The money actually comes from economic growth, without having new taxes. If the economy continues to grow, then we can sort of make up for the deficit. That's actually one of the rationale behind debt based spending, and a support for Keynesian Economics (and one of the reasons why Broken Window Fallacy doesn't really apply to Keynesian Economics).

The money, in theory, so to speak, is supposed to come off from economic growth (and as we grow in population, we need more money, etc). It doesn't really come from nowhere or more taxes or anything like that - the idea is that the government roll over debt indefinitely as long as economic growth follows.
The primary trouble here being that economic growth is negative in a recession. If you can't keep deficits in check, you'll end up with a greater debt to pay off when hard times hit.

Anyway... with the definition you have put forth - what's the difference between egalitarianism and... communism/socialism?
Egalitarianism is an axiom that specifically deals with the desired result, not the means to achieve it. Communism establishes a class enemy, the bourgeois, and seeks to align the proletariat against it. In other words Communism has political methodology for implementing egalitarian policies. Socialism speaks to the state controlling the means of production, and thus assumes a command economy as a way to implement egalitarian policies.

You could theoretically have a society that meets the egalitarian principle through personal charity in exact proportion to net worth. Egalitarianism only requires the outcomes be the same, it says nothing about the means to that end. However a fully egalitarian society based on charity is nearly impossible to enforce because of the number of independent actors and the complexity of needs. Egalitarianism therefore speaks to an end, while Communism and Socialism generate mechanisms for a means to that end.

Since I do not believe a completely egalitarian society based on personal charity is possible given human nature [no human could be exact in evaluating their net worth or giving proportionate to it], the only way to bend society more towards egalitarianism is coercion. By definition charity is money freely given. Compulsory giving is not charity, despite having the same supposed purpose of helping the less fortunate. Since the end of egalitarianism is only plausibly achievable through a coerced means and has all the other negative effects I mentioned above, I consider it evil.
 

Hipmonlee

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Egalitarian philosophy promises equal outcomes for unequal efforts.
I would agree that by this definition egalitarianism is evil. I dont agree with your definition here, and I dont think it has any relevance to discussions you have had here, because I dont think anyone else agrees with your definition either.

What I think should be promised is a minimum standard of quality of life for everyone, and then whatever maximises net happiness sustainably. Quite frankly I couldnt care less about equality. So long as I get what I want, I dont care if anyone else gets more..

I certainly could understand and accept different suggestions for what ought to be achieved, I can see where my proposal is arbitrary and could be refined or is flawed, but for the time being it's close enough.

But I definitely feel that if you have people who need surgery and cant get it then something is seriously wrong. I dont know the details of americas current or proposed medical schemes, so I am not specifically talking about them, but this is why in principle I support nationalised medicine.

The stimulus bill in its final form seemed like a complete joke to me.

Have a nice day.
 
Take 5c in every dollar more from everyone earning over 1mil/year.

Problem pretty much solved.
 

Ancien Régime

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What I think should be promised is a minimum standard of quality of life for everyone, and then whatever maximises net happiness sustainably. Quite frankly I couldnt care less about equality. So long as I get what I want, I dont care if anyone else gets more..
This itself is a disincentive to work. If you do not need to work or be otherwise productive to survive, then why would you work? This is the fundamental flaw of the welfare state - wealth is distributed from producers to consumers by force, and the consumers have no incentive to produce, thus leading to a net loss of wealth for all.

But I definitely feel that if you have people who need food and cant get it then something is seriously wrong.

...but this is why in principle I support nationalised food.
Do you support nationalized food? Food is a far greater neccessity than the vast majority of health care.

Now, I would have simply linked to the myriad Soviet famines to make my case, but there is a difference between nationalized production (invaribably disasterous) and nationalized delivery. However, nationalizing food leads to the predictable calculation issues; "hurrrr no prices no coordination of resources thus distortions in resource distribution"
 

Firestorm

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RE: Firestorm:

The cost of the Iraq War over the last seven years is calculated as 550 billion dollars, 1.9 trillion including interest.
The stimulus bill passed is calculated at 792 billion dollars, 3.27 trillion including interest.
So you're fucked there. Gotcha. I don't really know enough about the US economy to add more to this topic. I was just wondering about the cost of the war. Thanks.
 

Tangerine

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The primary trouble here being that economic growth is negative in a recession. If you can't keep deficits in check, you'll end up with a greater debt to pay off when hard times hit.
Nah. It relies more on long term growth to pay off the debt. Remember - US pretty much has unlimited credit (and if the US defaults, you can bet half the world will go with it). Yes, we're pretty fucked during recessions, but in the long run, we're doing pretty okay - it's pretty ridiculous to expect the US to stop growing really.
 
I have come to the conclusion over time that egalitarian philosophy is evil. Egalitarian philosophy promises equal outcomes for unequal efforts. It creates a net drag on effort, and therefore productivity. Ironically, egalitarianism requires productivity to function as the end-result of zero effort is zero output. Zero is by definition impossible to redistribute. Thus the logical conclusion of egalitarianism is zero outcomes for everyone.
That's sort of a narrow definition of egalitarianism. See http://en.wikipedia.org/wiki/Luck_egalitarianism
 

Hipmonlee

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AR: we have welfare for that. It's doing the job, I support that.

There arent people (in new zealand at least) who need food and are being turned away from supermarkets.

Have a nice day.
 

Deck Knight

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Take 5c in every dollar more from everyone earning over 1mil/year.

Problem pretty much solved.
And if it doesn't solve the problem?

If the people at the bottom, after receiving their "just dividends" from these people squander that money as well, do we just keep taking increments of 5c indefinitely?

What is the responsibility of the people receiving the money if they get it ostensibly for free? How can you make them be responsible for money they didn't earn?

If you take a rich person and a poor person and divide the income and assets up between them, do you really think they will be in the same position in a year?

I propose to you that rich people are rich because they have habits that tends toward economic advancement, while poor people are poor because they have habits that tend towards economic decline. No matter how many times you level the playing field, the people with poor habits will not change their behavior. They will immediately see that they can continue their poor habits indefinitely and will be rewarded for it.

All they will do is ask for another 5c from "the rich." That will solve everything.
 
Let's be realistic here. The average person on welfare gets about $50 a week. That is not enough incentive to not work, and you certainly can't live off it. You don't just sit back and watch the 50$ checks roll in. Furthermore, working 7 hours at minimum wage gets you more than that. If you work 40 hours at 7.25$ an hour, you'll make 290$ in that same week, which is equal to almost $1000 a month difference.

Sure, it's possible that people who aren't truly deserving are leeching off the system. But I'd rather risk that possibility than risk the possibility that people aren't getting enough to sustain themselves, especially when it's so difficult finding work.

I propose to you that rich people are rich because they have habits that tends toward economic advancement, while poor people are poor because they have habits that tend towards economic decline. No matter how many times you level the playing field, the people with poor habits will not change their behavior. They will immediately see that they can continue their poor habits indefinitely and will be rewarded for it.
I propose to you that that is true in some cases. I also propose to you that in some cases people are born into situations that make upward social mobility next to impossible, and others are born into wealth and don't need to be financially responsible.
 

Well duh, as though that's not glaringly obvious. I mean, if you're a first generation millionaire it has to come from *somewhere*.


I propose to you that rich people are rich because they have habits that tends toward economic advancement, while poor people are poor because they have habits that tend towards economic decline. No matter how many times you level the playing field, the people with poor habits will not change their behavior. They will immediately see that they can continue their poor habits indefinitely and will be rewarded for it.

Do you not consider it vaguely ridiculous to tax Bill Gates at the same rate as a family earning $372,951?

Nobody earning over 1 million dollars is going to suffer any real loss from losing an extra 5c in every dollar over the million earned yearly -- nobody is going to magically become poor from this.

And if the poor squander it, then it just goes back from whence it came doesn't it.


http://pubdb3.census.gov/macro/032008/pov/new02_100_01.htm -- 18% of children live below the poverty line, personally I consider that unacceptable.

I propose to you that no matter what we do, there will be poor and wealthy and I assert to you that receiving money from the government because you earn little is *not* a reward (lets make no bones about it, we both know that a family earning 200k a year is having a better time of it than one on welfare no matter what programs the government backs).

However in this case we're talking about funding a program against youth violence and I really don't see how anyone can argue against that. Youth not in jail, deceased, etc = youth working = youth spending money = better for the economy = more money you can take back in taxes.
 

Misty

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Let's be honest here - the kinds of savings we need to rebalance out budget will only come from major entitlement reform, the kind of thing that is so politically easy to kill (see: Democrats killing SS reform in 05, "Democrats want to pull the plug on grandma" in 09) that it will literally never happen until we're in a crisis scenario. At that point both programs will be dissolved and the deficits will disappear. Problem solved.
 

Deck Knight

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Do you not consider it vaguely ridiculous to tax Bill Gates at the same rate as a family earning $372,951?
Yes, both should have lower tax rates. As low as possible to ensure maximum resource efficiency among the prosperous and successful.

Nobody earning over 1 million dollars is going to suffer any real loss from losing an extra 5c in every dollar over the million earned yearly -- nobody is going to magically become poor from this.
How do you know that? You only know how much income they have, not where it is spent. You have no idea how much of it they reinvest back into their business or pump back into the economy through purchases. What makes any government qualified to be the arbiter of who can afford the loss government seeks to impose on them? In just a recent local example, Massachusetts is closing several DMV offices. The DMV is one of the only services the government provides that brings in net revenue to the state. These are the guys I want doing actuarials on who can afford a 5% tax increase?

And if the poor squander it, then it just goes back from whence it came doesn't it.
So why do it at all? Why suffer the extraction costs needed to be a modern-day Robin Hood when the effort is fruitless? Because it feels good? Because the rich aren't paying "their share?" Because the rich have gotten their wealth "off the backs" of the "oppressed masses?" (all of these questions are just cliff summaries on various theories regarding class and power, not swipes at you.)

Philosophically, why do the rich owe anything to the poor at all? There is no rational argument for it, the only possible arguments for giving to the less well off revolve around morality. Government cannot implement morality, only the coercion dressed as morality known as law. There is no rational need for a law that states people with x income shall have y% extracted for the express benefit of people with a lower z income.

http://pubdb3.census.gov/macro/032008/pov/new02_100_01.htm -- 18% of children live below the poverty line, personally I consider that unacceptable.
Lower the poverty line to $0/year. Instant eradication of all poverty on paper. Paper poverty levels are arbitrary. In America average poor people eat three meals a day, live indoors, and have at least one vehicle and cable television. A percent is a worthless statistic to get upset over. Today's poor in America are better off than the rich in most of the nations on earth. The biggest health affliction for the poor is obesity, not starvation. 18% is just a number to wring your hands over. There will always be people in the bottom quintile of income. The point isn't that they aren't suffering or that their life isn't hard, but rather than the average standard of living is vastly more important in discussing poverty than a floating percentage based on an imperfect metric (income).

I propose to you that no matter what we do, there will be poor and wealthy and I assert to you that receiving money from the government because you earn little is *not* a reward (lets make no bones about it, we both know that a family earning 200k a year is having a better time of it than one on welfare no matter what programs the government backs).
How is it not a reward: You keep doing what you do, you keep living the gangsta life, the welfare office sends you a check. Only if receiving money from the government offends you is a welfare check something to be ashamed of, and for certain sub-cultures that is no longer the case. "The system is against them" so anything they can get for free is just another way to stick it to the man. How many families on generational welfare do you really believe loathe their circumstances? They have no marketable skills, and a lucrative welfare state pays better than minimum wage. Furthermore you cannot lose your welfare provided you game the system and fill out the forms they tell you to. The government will always find ways to pay for its entitlements, because people leashed to entitlements will always vote for the politicians who promise their continued existence and expansion.

However in this case we're talking about funding a program against youth violence and I really don't see how anyone can argue against that. Youth not in jail, deceased, etc = youth working = youth spending money = better for the economy = more money you can take back in taxes.
Chicago (and almost any urban crime center anywhere) has been run by the same politicians using the same patronage and kickback practices for decades. I somehow doubt throwing more money at them and their vaunted programs will be the panacea for youth violence. They should be asking "why isn't the program effective?" Lack of money is almost never the problem for a government program; it is almost always either poor implementation or internal waste, fraud, and abuse.
 
This doesn't really say anything, though. So, 80% of millionaires did not literally have a pile of money handed to them. That doesn't mean they don't owe their success largely, almost entirely, to their circumstances.

http://www.scribd.com/doc/17772299/Anatomy-of-an-Entrepreneur
This finds that 71.5 percent of entrepreneurs(who we will say make up a good majority of first generation millionaires) came from a middle class family. Families that are financially secure enough to keep the bills paid, food in the house, etc, so that for basically all of the secondary-educational lives of their children, all the children have to worry about are things like school performance, getting into a good college, etc. These families also may financially help their children with college in a considerable way or have good credit to cosign a loan.

"Additionally 21.8 percent come from upper-lower-class", well I'd love to see a figure attached to that but it did specify "blue collar jobs". It's not far fetched to assume that a majority of these families also provide the same type of security as the middle class families mentioned above. So, it can easily be said that at least 80% of entrepreneurs are HANDED, by birth, this type of familial security, that allows them to focus on things like schooling and getting into a good college, provides a primary discourse matching an educational discourse, etc etc etc. Are these people "self-made", really?

Deck Knight said:
How is it not a reward: You keep doing what you do, you keep living the gangsta life, the welfare office sends you a check. Only if receiving money from the government offends you is a welfare check something to be ashamed of, and for certain sub-cultures that is no longer the case. "The system is against them" so anything they can get for free is just another way to stick it to the man. How many families on generational welfare do you really believe loathe their circumstances? They have no marketable skills, and a lucrative welfare state pays better than minimum wage. Furthermore you cannot lose your welfare provided you game the system and fill out the forms they tell you to. The government will always find ways to pay for its entitlements, because people leashed to entitlements will always vote for the politicians who promise their continued existence and expansion.
Funny how every type of study is contrary to this racist presumption.
http://www.huppi.com/kangaroo/L-welfareincentive.htm
http://www.anitra.net/homelessness/columns/anitra/eightmyths.html

Philosophically, why do the rich owe anything to the poor at all? There is no rational argument for it, the only possible arguments for giving to the less well off revolve around morality. Government cannot implement morality, only the coercion dressed as morality known as law. There is no rational need for a law that states people with x income shall have y% extracted for the express benefit of people with a lower z income.
Because, a vast majority of the time, the rich are rich because they were born into a situation conductive to getting and staying on the path to financial success, whereas the poor were not(easy to see in any statistic or study on economic mobility, http://www.economicmobility.org/assets/pdfs/1984_2000_Fig2.pdf). They should be expected to realize that they are not totally "self-made"(no one is), and that due to the fact that their outcome depended largely on their circumstance, like everyone's does, that the fruits of their success should partially be used to increase the circumstances in general. I guess it is down to if you believe in a social contract, and I do.
 
If you think the rich are better educated then the poor, then realize that over 50% went to public school (see article). It also mentions how the money rarely makes it past the 2nd generation, making most of your points about being born into circumstances moot.
 
I'm not really sure what your point is. Yes most first-generation millionaires went to public school. Most first-generation millionaires also came from households with discourses and cultures that match up to the institution of schooling, and are conductive to getting the most out of it. My point wasn't that someone who came from a family of millionaires is getting a head start. My point is that anyone coming from a middle class family making a decent, mid-to-high 5 figure income is getting a head start.
 
I guess I'll just agree to disagree with redistribution of wealth, on the basis that stealing is wrong *.*
 

Deck Knight

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This doesn't really say anything, though. So, 80% of millionaires did not literally have a pile of money handed to them. That doesn't mean they don't owe their success largely, almost entirely, to their circumstances.

http://www.scribd.com/doc/17772299/Anatomy-of-an-Entrepreneur
This finds that 71.5 percent of entrepreneurs(who we will say make up a good majority of first generation millionaires) came from a middle class family. Families that are financially secure enough to keep the bills paid, food in the house, etc, so that for basically all of the secondary-educational lives of their children, all the children have to worry about are things like school performance, getting into a good college, etc. These families also may financially help their children with college in a considerable way or have good credit to cosign a loan.

"Additionally 21.8 percent come from upper-lower-class", well I'd love to see a figure attached to that but it did specify "blue collar jobs". It's not far fetched to assume that a majority of these families also provide the same type of security as the middle class families mentioned above. So, it can easily be said that at least 80% of entrepreneurs are HANDED, by birth, this type of familial security, that allows them to focus on things like schooling and getting into a good college, provides a primary discourse matching an educational discourse, etc etc etc. Are these people "self-made", really?
How do you hand over something like familial security? Yes, these people are "self-made." Self-made requires that they took substantial risks and made wise decisions in the process. You need not be a first generation millionaire to be "self-made." In any case, wise financial decisions does not make you an entrepreneur. There are plenty of working people who make wise financial decisions that are not entrepreneurs.

So in your world, only black people are poor and on welfare? That is the only way you could logically conclude that generational welfare and its inherent culture are a function of race, rather than political conditioning. Maybe it is the word "gangsta" that set your righteous indignation off. Its the oldest leftist canard: when in doubt, jump to racism. Please don't fall into it again. The "gangsta" culture is merely the one most openly promoted as a celebration of "diversity" and the most easily identifiable. It is hardly the sole culture that values crime over honest work, theft over industriousness, and greed over charity.

The two links provided largely link back towards "social justice" groups. These constitute studies? Needless to say "studies" that do not employ quantitative figures and lead back to links like "Help Fight the Right" do not inspire confidence in their objectivity to me. (Quantitative studies also, incidentally, seem to be a type of study not covered in your "every type.") Those are at best textual refutations of other studies that provide no data of their own, nor even a link back to the original study. My favorite link-back was that income gap is more important than absolute standard of living. It's an outright treatise advancing socialism, the engine of noted global economic failures. In no surprise to me at least, the political beneficiaries of expanded welfare entitlements support them wholeheartedly. Where would "social justice" groups be without government allotted money to fight over?

In looking over the census childhood poverty statistics Trax provided again, I'd say providing those children fathers (or mothers) would be better than providing them redistributed income. There is a whopping 80% reduction in poverty rate when comparing children below the poverty line in married couples to single mothers. (It's over 50% compared to the entire rate and over 60% when discussing single fathers).

Because, a vast majority of the time, the rich are rich because they were born into a situation conductive to getting and staying on the path to financial success, whereas the poor were not(easy to see in any statistic or study on economic mobility, http://www.economicmobility.org/assets/pdfs/1984_2000_Fig2.pdf). They should be expected to realize that they are not totally "self-made"(no one is), and that due to the fact that their outcome depended largely on their circumstance, like everyone's does, that the fruits of their success should partially be used to increase the circumstances in general. I guess it is down to if you believe in a social contract, and I do.
The best social contract is the one that seeks to expand the middle class to the largest size possible. Egalitarianism and its means by communism or socialism is not that system; all they do is create one class of rich overlords and another of poor underlings. The haves who wield power and the masses subject to it. The only difference between the systems is one uses money as a form of currency and the other political power. The love of money may be evil, but power corrupts and absolute power corrupts absolutely.
 

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