Thursday, September 18, 2008

Assistance programs make people weak

The current situation feels a lot like the novel Atlas Shrugged in that the pursuit of opportunity for all ignores the basic fact that not all people are responsible. Policies were put into place to try to make home ownership available to all. It sounds nice, but its not realistic. When you start looking at something as a social good instead of a business transaction, sound judgment goes out the window.

John McCain wants to reduce taxes and trade barriers to create a more competitive environment. His energy policy will encourage our nation to pursue a variety of energy sources and let the market decide which are most viable. Competition in any free market system has led to greater variety of services offered and better value (lower price) to the consumer.

Some of Obama's energy policy ideas are just illogical. For example, he wants to tax oil companies and then hand out rebates to the American public? Doesn't he realize that nothing is created by doing this? It's simply a transfer of wealth. We'd all like to believe that the poor will take this $1,000 rebate and spend it on education for their children. The reality is that the poor will continue to spend it on televisions, McDonalds, and whatever else they currently buy. Does anyone believe that giving people more money will change their behavior?

Most people do not appreciate things they are given for free - marketers and retailers understand this concept well. A better idea is to make it easier for people to create their own wealth and then set them free. The government has never been successful at addressing social issues, and I don't believe it ever will be. The people who think up social programs make the false assumption that the recipients would use the opportunity/benefit to improve their situation. The reasons for their current situation are typically a lot more complicated than simply a lack of opportunity.


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