Skip to content

Paul Krugman’s Welfare-State Fallacies

Jacob Hornberger
Campaign For Liberty
Thursday, May 20th, 2010

A recent op-ed entitled “We’re Not Greece” by Paul Krugman in the New York Times encapsulates everything that is wrong with liberals when it comes to economics.

The good liberal that he is, Krugman suggests that the welfare state is about “taking care of those in need.”

What he misses, however, is the issue of means, which, not surprisingly, he totally fails to address in his op-ed.

Suppose I accost you with a loaded gun and force you to take me to an ATM. I tell you to withdraw $5,000 or I’ll shoot you. You withdraw the money and give it to me. I go and give all the money to people in need. I don’t keep one dime for myself.

Haven’t I taken care of people in need? Isn’t what I did moral? Isn’t it consistent with God’s will? Aren’t I a good person?

No. I’m nothing more than a common thief. The fact that I’ve used the money to help the needy is irrelevant. The end doesn’t justify the means. I should be prosecuted and convicted.

Presumably Krugman would agree. But his moral blind spot — indeed, the moral blind spot that afflicts all liberals — is his inability to see that the same principle applies to the coercive apparatus of the welfare state. Who are the compassionate, caring people in a welfare state? All the citizens of the nation? Only the taxpayers? How about the IRS officials, especially those who harass and persecute people into paying their taxes? What about the welfare bureaucrats who distribute the dole to people? What about the congressmen, who claim credit for the federal money they bring back to their district? What about tax protestors, who don’t pay any income taxes? How about illegal immigrants who have taxes withheld from their pay?

The real answer is: None of the above. Why? Because the entire welfare-state system is founded on force, which is antithetical to moral values, compassion, and free will. The only help for the needy that matters is that which comes from the willing heart of an individual, not at the point of some bureaucrat’s gun.

Krugman laments the fact that the Greek government doesn’t have control over its own money supply, like the United States does through the Federal Reserve. If it did have that control, Krugman says, it could begin stimulating the economy with inflation — that is, by printing the money to pay off that ever-increasing mountain of debt.

What he misses, however, is not only the moral implications involved with inflationary liquidation of debt but also the fact that inflation never accomplishes anything constructive in the long term. Let’s not forget, after all, that the principal reason the Framers established a gold standard was to prevent the federal government from inflating the money supply. By manipulating money and prices, inflation produces distortions and perversions by sending bad signals to the private sector. Ultimately, those distortions and perversions become manifest, which causes things to go into a tailspin. Thus, while inflation can delay the day of reckoning, that’s all it can do.

The day of reckoning has obviously come for Greece and other European welfare states. For decades, such regimes been spending money on the dole that they didn’t have. To keep the dole payments going to Greek citizens, officials went out and borrowed money to their heart’s content and then lied about it to the other Euro countries. Ultimately, people figured out what was going on, and the jig was up.

Not surprisingly, despite facing national bankruptcy the Greek people refuse to let go of their dole system. That’s what the dole does to people — it creates a sense of hopeless dependency and also a sense of entitlement. Young Greeks are also protesting, because they feel their future life on the dole is now threatened.

Rather than dismantling their dole system, which is what they should do, the Greeks have induced foreign taxpayers to underwrite their dole, including German and American taxpayers. That’s what the U.S. Federal Reserve has committed Americans to do, without even the semblance of congressional approval.

But despite a massive Greek bailout, speculators aren’t buying it. They’re continuing to send the value of the Euro into the tank. They’re not buying it because they know that the Greeks have no intention of doing what is necessary to save themselves — dismantle their dole system. At most, they’ll reform it by reducing welfare spending a bit … and by raising taxes — the very things that Krugman recommends that U.S. officials do to address the worsening welfare-warfare spending and debt problems facing our country.

Krugman and the Greek statists recommend raising taxes as part of a welfare-state reform plan. But the problem is that the more they raise taxes, the more they send marginal firms — that is, firms that are barely making it — into closing down operations, which in turn increases unemployment, which then sends more people into the dole system.

Moreover, as people learn about the benefits of going on the dole, more and more of them look for ways to do it themselves. Why work when the government will pay you for not working? The number of people on the dole — and the amount of the dole — skyrockets while the number of people producing wealth — and the amount of such wealth — diminish.

Krugman acknowledges that Americans do have a “serious long-run budget problem,” but he says that America’s “fiscal outlook over the next few years isn’t bad” and certainly not as bad as Greece’s. He’s hoping that inflation will nurse the economy back to health so that there will be more private-sector producers paying the taxes to fund the parasitic welfare-warfare-state sector.

Meanwhile, the U.S. government continues to spend and borrow as if there were no tomorrow, both on its welfare state (including the recent bailout of Greece) and its warfare state (e.g., Iraq and Afghanistan). For decades, Krugman and others of his liberal ilk, together with conservatives, have taken our nation down the road to Greece and the Roman Empire, with their out of control federal spending, taxes, inflation, moral debauchery, socialism, interventionism, and imperialism. Today, the welfare-warfare-state chickens are coming home to roost.

There is only one solution to what they have wrought — a total dismantling of all their statism, both foreign and domestic. Tinkering will only delay the inevitable. It’s time for economic liberty, free markets, and a constitutional republic for our land.

Related Posts with Thumbnails

Posted in Finance & Economics.

Tagged with , , , , , .

0 Responses

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.

Some HTML is OK

or, reply to this post via trackback.

Support #altnews & keep Dark Politricks alive

Remember I told you over 5 years ago that they would be trying to shut down sites and YouTube channels that are not promoting the "Official" view. Well it's all happening now big time. Peoples Channels get no money from YouTube any more and Google is being fishy with their AdSense giving money for some clicks but not others. The time is here, it's not "Obama's Internet Cut Off Switch" it's "Trumps Sell Everyones Internet Dirty Laundry Garage Sale". This site must be on some list at GCHQ/NSA as my AdSense revenue which I rely on has gone down by a third. Either people are not helping out by visiting sponsors sanymore or I am being blackballed like many YouTube sites.

It's not just Google/YouTube defunding altenative chanels (mine was shut), but Facebook is also removing content, shutting pages, profiles and groups and removing funds from #altnews that way as well. I was recently kicked off FB and had a page "unpublished" with no reason given. If you don't know already all Facebooks Private Messages and Secret Groups are still analysed and checked for words related to drugs, sex, war etc against their own TOS. Personally I know there are undercover Irish police moving from group to group cloning peoples accounts and getting people booted. Worse than that I know some people in prison now for the content they had on their "secret private group". Use Telegrams secret chat mode to chat on, or if you prefer Wickr. If you really need to, buy a dumb phone with nothing for the NSA/GCHQ to hack into. Ensure it has no GPS tracking on it and that the battery can be removed. These are usually built for old people to get used to technology storing only a set of numbers to call. However they have no games, applications to install or other ways people can exploit the computer tracking device you carry round with you most of the day - your smart phone. If you are paranoid ensure that you can remove the battery when travelling around and do so to prevent GPS tracking or phone mast triangulation. Even with your phone in Flight mode or turned off, it can be turned on remotely and any features like front or back cameras, microphones and keylogging software can be installed to trace you.

So if your not supporting this site already which brings you news from the Left to the Right (really the same war mongering rubbish) then I could REALLY do with some..

Even if it's just £5 or tick the monthly subscription box and throw a few pound my way each month, it will be much appreciated. Read on to find out why.


Any support to keep this site would be appreciated. You could set up a monthly subscription for £2 like some people do or you could pay a one off donation as a gift.
I am not asking you to pay me for other people's articles, this is a clearing house as well as place to put my own views out into the world. I am asking for help to write more articles like my recent false flag gas attack to get WWIII started in Syria, and Trump away from Putin. Hopefully a few missiles won't mean a WikiLeaks release of that infamous video Trump apparently made in a Russian bedroom with Prostitutes. Also please note that this article was written just an hour after the papers came out, and I always come back and update them.

If you want to read JUST my own articles then use the top menu I have written hundreds of articles for this site and I host numerous amounts of material that has seen me the victim of hacks, DOS plus I have been kicked off multiple hosting companies, free blogging sites, and I have even had threats to cease and desist from the US armed forces. Therefore I have to pay for my own server which is NOT cheap. The more people who read these article on this site the more it costs me so some support would be much appreciated.

I have backups of removed reports shown, then taken down after pressure, that show collusion between nations and the media. I have the full redacted 28/29 pages from the 9.11 commission on the site which seems to have been forgotten about as we help Saudi Arabia bomb Yemeni kids hiding in the rubble with white phosphorus, an illegal weaapon. One that the Israeli's even used when they bombed the UN compound in Gaza during Operation Cast Lead. We complain about Syrian troops (US Controlled ISIS) using chemical weapons to kill "beautiful babies". I suppose all those babies we kill in Iraq, Yemen, Somalia and Syria are just not beautiful enough for Trumps beautiful baby ratio. Plus we kill about 100 times as many as ISIS or the Syrian army have managed by a factor of about 1000 to 1.

I also have a backup of the FOX News series that looked into Israeli connections to 9.11. Obviously FOX removed that as soon as AIPAC, ADL and the rest of the Hasbra brigade protested.

I also have a copy of the the original Liberal Democrats Freedom Bill which was quickly and quietly removed from their site once they enacted and replaced with some watered down rubbish instead once they got into power. No change to police tactics, protesting or our unfair extradition treaty with the USA but we did get a stop to being clamped on private land instead of the mny great ideas in the original.

So ANY support to keep this site running would be much appreciated! I don't have much money after leaving my job and it is a choice between shutting the server or selling the domain or paying a lot of money just so I can show this material.

Material like the FSB Bombings that put Putin in power or the Google no 1 spot when you search for protecting yourself from UK Police with "how to give a no comment interview". If you see any adverts that interest you then please visit them as it helps me without you even needing to give me any money. A few clicks per visit is all it takes to help keep the servers running and tag any tweets with alternative news from the mainstream with the #altnews hashtag I created to keep it alive!

However if you don't want to use the very obvious and cost free ways (to you) to help the site and keep me writing for it then please consider making a small donation. Especially if you have a few quid sitting in your PayPal account doing nothing useful. Why not do a monthly subscription for less money instead. Will you really notice £5 a month?