lization that can be admired in all of itsrnfacets.rnWilliam R. Hawkins, a fonner economicsrnprofessor, is Senior Research Analyst forrnU.S. Representative Duncan Hunter (RCA).rnPOLITICSrnRestoring Familiesrnby RestrictingrnGovernmentrnby David HartmanrnWhen we view the monumentalrnseats of government, the palacesrnand temples of ancient and medieval civilizations,rnwe are awed by their architecturalrngrandeur, the art and culture tornwhich they testify, and the sheer effortrnthey represent. While they are indeed arnpart of our cultural heritage, these edificesrnare better understood as monumentsrnto the power of government—includingrnthe great temples and cathedralsrnof state religions.rnThese great civilizations had the commonrncharacteristic that all-encompassingrngovernment systematically confiscatedrnas much of the surplus of the citizens’rnproduct and labor as possible withoutrninviting revolution or conquest. The surplusrnproduct and labor were expendedrnon military defense and conquest, staternmonuments, and the comfort of thosernwho governed.rnhi our own century, the most successfulrnventures in totalitarian control of societyrnby government—communism andrnfascism—have, fortunately, run the coursernfrom inception to discredit and dissolutionrnwithin living memory. But the socialistrndemocratic republic continues itsrnrelentless growth as the representativernform of government worldwide. Thernstructure of socialist democracies, muchrnlike fascism, is typified by large corporationsrnprivately owned but heavily regulatedrnby a strong central government—rnwhat John Kenneth Galbraith calls “ThernNew Corporate State.”rnThe average national expenditure onrngovernment worldwide is well in excessrnoi half of personal income—a remarkablernfact, considering that ancient and medievalrngovernments could not extractrnmore than one-third of the product ofrntheir subjects. How is this possible inrnmodern socialist democracies?rnThe greater productivity of the agriculturalrnand industrial revolution is partrnof the explanation. However, just as importantrnis the fact that the socialistrndemocracies have raised plundering tornan art form. This art form has threernfacets: coerced philanthropy, deception,rnand demagoguery.rnCoerced philanthrop^ takes the formrnof the welfare state. In order to perfectrnsociety and mankind, government confiscatesrnsurplus product to help the helpless,rninsure the improvident, redistributernincome, and rear the child. With suchrnnoble motives, the “social justice” ofrnconfiscating the surplus of the more productivernand more fortunate is unquestionable.rnIt takes deviousness to cover how costlyrnsocialism is, and how inefficient the result.rnHalf of all taxes are invisible in thernUnited States; in Europe, the proportionrnis far higher. Social-welfare paymentsrnare netted from reported U.S. governmentrnexpenditures and compared tornGross Domestic Product, which includesrngovernment expenditures. Comparisonrnto Gross Personal Income would providerna truer measure of the real tax burden.rnSo government services are understatedrnin their apparent cost to the taxpayer—rnand they are “free” to the recipient.rnAn elaborate set of historical prevaricationsrnprovides the rationale for therndemagogues who champion the socialistrngovernmenf s excesses. For instance:rnSocial Securit}’ and Medicare. The fallacy:rnEntitlements from current nationalrnincome are necessar’ to eliminate povertyrnfor the improvident elderly who failedrnto save and invest. The reality: Despiternan average government dispensation ofrn$20,000 for every elderly person, povertyrnremains among the elderly, and hasrnbeen transferred to young workers andrnfamilies.rnUnmarried Motherhood Entitlements.rnThe fallacy: Subsidies for single-parentrnhouseholds are necessary to eliminaternchild poverty. The reality: An epidemicrnof illegitimate births and divorces hasrnswollen the ranks of the poor.rnState Control of Education. The fallacy:rnThe state must oversee uniformrnstandards of education and scientificrnmethodology for equality of outcomes.rnThe reality: Defective “modern” methodologyrnand the dumbing down of curricularnin order to achieve equality of performancernhave exacerbated inequality ofrnoutcomes.rnAs we conclude the 20th century, thernUnited States has undergone a profoundrntransformation. At the turn of the century,rntotal expenditures of all agencies ofrngovernment—federal, state, and local —rnequaled nine percent of the personal incomernof Americans. Today, governmentrnat all levels spends 50 cents of every dollarrnof income. Are our best interests reallyrnserved by such a burden?rnVital statistics render a damning verdictrnon the efficac}’ of big government’srnsocial engineering. Since 1920, thernbirth rate has been cut nearly in half, thernmarriage rate has dropped a quarter, therndivorce rate has tripled, and illegitimacyrnhas risen tenfold to 30 percent of births.rnSince 1900, the homicide rate has increasedrneightfold. By any reasonablernmeasure of social progress, the attemptedrnperfecting of society and mankind byrngovernment has been a failure.rnBeneath the current cheerful veneerrnof a rising stock market and full employmentrnlies a potentially unstable economv.rnThe average American family isrnworking a record number of hours. Butrnafter paying for the excesses of governmentrnand satisfying its own appetite forrnconsimrption, the typical family goesrndeeper into debt and saves less than everrnbefore. State schools and working mothersrnfail to educate children in math andrnscience. Americans consume far morernimports than the goods and services theyrnexport: Foreigners invest the differencernin American factories and real estate tornclose the capital-formation gap. Hov’ever,rna capital shortage also results in thernexporting of capital-intensive industryrnabroad, and with it go middle-incomernjobs. A government that overspends,rnovertaxes, and is overly indebted lies atrnthe root of these economic difficulties.rnState control of education as a meansrnof providing opportunity to all is equallyrnsuspect. It is estimated that, as early asrn1800, 80 percent of all Americans werernliterate. Judging by the 18.3 percent ofrnadult Americans who lacked a highschoolrndiploma in 1996 (and the numberrnwho could not read the ones theyrnhad), we may be no more literate todayrnthan 200 years ago.rnPerhaps the worst example of the consequencesrnof government confiscation ofrnincome is the history of real, after-tax incomernof married families since the adventrnof the Great Society. In spite of anrn44/CHRONICLESrnrnrn
January 1975April 21, 2022By The Archive
Leave a Reply