Welcome login | signup
Language en es fr
OccupyForum

Forum Post: Government: The redistributionist behemoth

Posted 2 years ago on Jan. 9, 2012, 2:49 p.m. EST by Teacher12 (-33)
This content is user submitted and not an official statement

Government: The redistributionist behemoth

By George F. Will, Published: January 6

Liberals have a rendezvous with regret. Their largest achievement is today’s redistributionist government. But such government is inherently regressive: It tends to distribute power and money to the strong, including itself.

Government becomes big by having big ambitions for supplanting markets as society’s primary allocator of wealth and opportunity. Therefore it becomes a magnet for factions muscular enough, in money or numbers or both, to bend government to their advantage.

The left’s centuries-old mission is to increase social harmony by decreasing antagonisms arising from disparities of wealth — to decrease inequality by increasing government’s redistributive activities. Such government constantly expands under the unending, indeed intensifying, pressures to correct what it disapproves of — the distribution of wealth produced by consensual market activities. But as government presumes to dictate the correct distribution of social rewards, the maelstrom of contemporary politics demonstrates that social strife, not solidarity, is generated by government transfer payments to preferred groups.

This includes generational strife. Most transfer payments redistribute wealth from workers to nonworkers in the form of pensions and medical care for retirees. The welfare state’s primary purpose is to subsidize the last years of Americans’ lives, and the elderly are, after a lifetime of accumulation, better off than most Americans: In 2009, the net worth of households headed by adults ages 65 and older was a record 47 times that of households headed by adults under the age of 35 — a wealth gap that doubled just since 2005.

The equalizing effects of redistributive transfer payments are less today than in 1979, when households in the lowest income quintile received 54 percent of such payments. In 2007,they received 36 percent.

Because Social Security and Medicare are not means-tested, the share of transfer payments going to middle- and upper-income households tends to increase, for several reasons. The retirement age is essentially fixed, but people are living longer. And because the welfare state is so good to them, the elderly are unusually diligent voters and are especially apt to vote on the basis of protecting their benefits.

Beyond transfer payments, redistributionist government is itself governed by the law of dispersed costs and concentrated benefits: For example, sugar import quotas confer substantial wealth on a small cohort of producers already wealthy enough to work the political levers of redistributive government. The increased cost of sugar substantially penalizes consumers as a group but not so noticeably that individuals protest.

The tax code, government’s favorite instrument for distributing wealth to favored factions, has been tweaked about 4,500 times in 10 years. Generally, the beneficiaries of these changes are interests sufficiently strong and sophisticated to practice rent-seeking.

Not only does redistributionist government direct wealth upward; in asserting a right to do so, it siphons power into itself. A puzzling aspect of our politically contentious era is how little contention there is about the ethics of coercive redistribution by progressive taxation and other government “corrections” of social outcomes it considers unethical or unaesthetic.

This reticence, in an age in which political reticence is rare, reflects the difficulty of articulating principled defenses of these practices. They go undefended because they are generally popular with a public that misunderstands their net effects and because the practices are the political class’s vocation today. The big winners from these practices are that class and the interests adept at collaborating with it.

Government uses redistribution to correct social outcomes that offend it. But government rarely explains, or perhaps even recognizes, the reasoning by which it decides why particular outcomes of consensual market activities are incorrect. When taxes are levied not to efficiently fund government but to impose this or that notion of distributive justice, remember: Taxes are always coerced contributions to government, which is always the first, and often the principal, beneficiary of them.

Try a thought experiment suggested decades ago by University of Chicago law professors Walter Blum and Harry Kalven in their 1952 essay “The Uneasy Case for Progressive Taxation,” published in their university’s law review. Suppose society’s wealth trebled overnight without any change in the relative distribution among individuals. Would the unchanged inequality at higher levels of affluence decrease concern about inequality?

Surely not: The issue of inequality has become more salient as affluence has increased. Which suggests two conclusions:

People are less dissatisfied by what they lack than by what others have. And when government engages in redistribution in order to maximize the happiness of citizens who become more envious as they become more comfortable, government becomes increasingly frenzied and futile.

6 Comments

6 Comments


Read the Rules
[-] 4 points by nucleus (3291) 2 years ago

Too bad they are so busy redistributing it all to the top .01%.

[-] 2 points by JadedCitizen (4277) 2 years ago

Actually, you can draw any number of conclusions you want from a thought experiment. To limit the conclusions to only the two that support your thesis is disingenuous and agenda driven.

[-] 2 points by ZenDog (20617) from South Burlington, VT 2 years ago

more repeliKan bullshit.

you are a fool.

this movement is in large measure all about holding people accountable - this nation has incurred debt - debt due to war, debt due to the economic collapse - and you would have us refuse to pay that debt.

you would have us tank the economy even further with such nonsense.

Revenue will be raised to meet our common obligation.

And we will hold those accountable for promoting fiscal policy and economic theory that has proven itself a sham.

The movie Inside Job makes it quite clear: Conservatives set to implement financial deregulation as far back as the late 1970s, and part of that process included the appointment to the Supreme Court

  • Conservative Activist Judges

And it is clear - as that process began to bear fruit, Conservatives began screaming about Liberal Activist Judges, and thus distract the public from their process of Activism toward deregulation.

  • repeliKans are liars

  • repeliKans with their process of deregulation have fucked the American public.

  • repeliKans continue to lie about Global Warming

  • repeliKans will soon reap the harvest they have sown

The people are coming. You can't stop it. You can't avoid it. And in fact, you will benefit.

Unless of course, you get in the way. Then there's just no tellin'.

[Removed]

[-] 1 points by kingscrossection (1203) 2 years ago

You have problems with pensions?

[-] 0 points by epa1nter (4650) from Rutherford, NJ 2 years ago

Wow.

George will is good; I had no idea one could pack so many false assumptions into a single article that efficiently.

[-] 0 points by shooz (26725) 2 years ago

Spoken like a man that was never poor.

I wonder how often he speaks at Koch bros. sponsored affairs?