From The Daily Hatch: These images are remarkably accurate. The welfare state starts with small programs targeted at a handful of genuinely needy people. But as politicians figure out the electoral benefits of expanding programs and people figure out the that they can let others work on their behalf, the ratio of producers to consumers begins to worsen.
Of course, this is a situation that cannot go on forever, and so it won’t. Capitalism arose with the industrial revolution and has gradually eroded into welfare statism. Socialism begins as welfare statism and gradually erodes into Venezuela. The final stage of socialism is no middle class and financial disaster in which inflation of the currency robs everyone of their savings, food is scarce and expensive, and nobody has such basic commodities as toilet paper.
Capitalism is the greatest system for raising people out of poverty, but it requires an informed and intelligent electorate to prevent politicians from destroying it by turning it into welfare statism.
Thomas Sowell’s latest column: Socialism for the Uninformed
The great promise of socialism is something for nothing. It is one of the signs of today’s dumbed-down education that so many college students seem to think that the cost of their education should — and will — be paid by raising taxes on “the rich.”
Here again, just a little check of the facts would reveal that higher tax rates on upper-income earners do not automatically translate into more tax revenue coming in to the government. Often high tax rates have led to less revenue than lower tax rates.
In a globalized economy, high tax rates may just lead investors to invest in other countries with lower tax rates. That means that jobs created by those investments will be overseas.
None of this is rocket science. But you do have to stop and think — and that is what too many of our schools and colleges are failing to teach their students to do.
Read the whole thing.
Millennials tell polsters they prefer socialism to capitalism. Millennials don’t get it, there ain’t no such thing as a free lunch. They’re ignorant fools.