Wednesday, November 9, 2022

A new book demonstrates the consequences of the endless war on poverty

 The Myth of American Inequality: How Government Biases Policy Debate

  • Our gradual national policy shift toward enforcing equality of result has taken on an aspect of inexorability disturbing even to the stubbornest Reaganite optimist.
  • How, and when, did this shift happen?
  • One answer, as per Vonnegut, starts with measurement
  • Back in those same early 1960s, a Social Security Administration economist named Mollie Orshansky, concerned about the "dollar gap" between rich and poor, set out to create a statistic to quantify poverty nationwide
  • Armed with this new data point, swiftly elevated to an official product of the Census Bureau, President Lyndon Johnson declared "unconditional war on poverty"
  • Not satisfied with containment, Johnson opted for a strategy of massive retaliation, securing commitment from Congress to more than 100 different programs, together known as the Great Society
  • Most of these-Medicare, for example-ran from the top down
  • Federal funding for education flowed to public universities and public schools
  • Some represented a kind of faux federalism, whereby Washington bribed states and counties into surrendering authority over areas (roads, housing) they had historically controlled

What's missing

  • A thorough review of the costs that the progressive tax structure has exacted from our economy
  • Analysis of the effects that redistributors' higher taxes would have on productivity
  • Too many people seem unaware of the potential damage of wealth-tax proposals mooted by Senator Elizabeth Warren or Professor Piketty

https://www.city-journal.org/impoverished-by-equality

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