President Obama says he wants to make society more fair. Advocates
of big government believe fairness means taking from rich people and
giving to others: poor people; or people who do things politicians
approve of, like making "green" energy equipment (Solyndra); or old
people (even rich ones) through Social Security and Medicare.
The idea that government can "make life fair" is intuitively
appealing to people -- at least until they think about it. I'll try to
help.
A video detailing a fairness test for Obama's policies:
Obama says fairness requires higher taxes, but as The Wall Street
Journal's Stephen Moore asks, "Is it fair that the richest 10 percent of
Americans shoulder a higher share of their country's income-tax burden
than do the richest 10 percent in every other industrialized nation,
including socialist Sweden?"
Or as economist Art Laffer asked, is it fair that American
corporations pay the highest corporate tax rate in the world?
Beyond taxes, again quoting Moore, "Is it fair that President Obama
sends his two daughters to elite private schools that are safer,
better-run and produce higher test scores than public schools in
Washington, D.C. -- but millions of other families across America are
denied that free choice and forced to send their kids to rotten
schools?"
No. Parents ought to be able to spend their education money at any
school they choose.
Big-government politicians bemoan income inequality, but would
equalizing incomes make life fair?
To many, it is intuitive that such inequality is necessarily unfair.
If someone makes his income by looting the taxpayers -- sure, that's
unfair. His gains are ill-gotten, and honest taxpayers are out
hard-earned money. But there's nothing unfair simply in making more
money through productive work. People have a range of talents and
ambitions. Some will serve consumers better than others and therefore
make more money. Government should not worry about that.
It should spend its time abolishing political privileges so that
people compete fairly -- in the marketplace.
You want to know what's unfair? Social Security. Progressives say
Social Security is the best-working government program ever, but they
are wrong.
"Think about Social Security in terms of what would happen if a
private company came up with a deal like this," said Charles Goyette,
author of "Red and Blue and Broke All Over." "The president of the
company says, we've got to sell some new policies tomorrow to pay you
what you're due when you cash in today. They'd lock these guys up."
Goyette was referring to the fact that your payroll taxes are not
invested. The money is spent right away, and the government counts on
new money from current workers to pay retirees. The touted trust fund
doesn't exist.
"There's no trust. There's no fund. There's no security. And the
really bad thing -- this is what's really destructive -- it has changed
the propensity of the American people to save for themselves. ... We're
creating a multigenerational calamity. And it's right at our doorstep."
We've taught people to be dependent. But dependence robs us of our
dignity and keeps poor people poor.
Few politicians will touch the issue because seniors vote. And so
trouble is not far up the road.
"We've loaded kids up with a debt that they will be burdened by for
the rest of their lives," Goyette said. "What kind of people, what kind
of country does something like that?"
It's even worse for Medicare. We're talking tens of trillions in
unfunded liabilities. Where's that money going come from? Since seniors
resist cuts, will politicians keep their promises by devaluing the
currency? And why do the guardians of fairness never talk about this?
It might seem reasonable for government to make life more fair. But
when it takes your money and freedom trying to do that, life becomes
less fair. Everyone is poorer and less free. As government grows,
individual liberty shrinks. That's not fair.
It might help if instead of talking about fairness, we talked about
justice: respecting other people, their freedom and their honestly
acquired belongings. Real fairness, or justice, requires limiting
government power. That means the same rules for everyone. No special
favors. No handouts. Or, in Frederic Bastiat's phrase, no "legal
plunder."
That means the same rules for everyone. No special favors. No handouts.
Or, in Frederic Bastiat's phrase, no "legal plunder."