Thursday, June 18, 2015

Preserving Poverty

Nothing's so loud
As hearing when we lie
The truth is not kind
And you've said neither am I
--Toad the Wet Sprocket

In 1964 President Lyndon Johnson declared a War on Poverty. Of course, poverty had been declining for decades on a peaceful basis prior to Johnson's declaration of war. We also know that the war continues 50+ years later with less than satisfactory results--particularly when considering that this campaign that has lasted five times as long as the putrid War on Terror.

Subsequent to LBJ's declaration, a blizzard of social legislation was passed with the expressed aim of reducing poverty. There is good reason to believe, however, that much of this legislation has incentivized poverty. For example, welfare benefits can discourage productive effort if the cost of lost benefits exceeds income from work. Stated differently, welfare benefits can effectively tax work to trap people in poverty.

Other policies preserve poverty status quo as well. For example, regulations that impair or prohibit basic entrepreneurial activity such as street vending effectively criminalize effort to improve one's economic position.

The way to eradicating poverty is not through government-sponsored war. Rather, the solution is to remove all aggression from the system--including forcible policies supported by proponents of 'equal opportunity.'

Poverty is preserved by war-like force. Poverty cannot persist under conditions of peace.

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