State of Mankind

A New Way Of Thinking

Why Do We Have A Social Safety Net?

The answer is easy.  We are charitable and don’t want anyone to go without the basics of life, right?  This is the thinking of most of mainstream America, but hardly the thinking of those who control our government.  On this site, we seek to understand the world in the context that Carroll Quigley gives in his book Tragedy & Hope.  Quigley was an insider among many of the Elites who pull the strings of government.  Bill Clinton was greatly influenced by him.  Here is Quigley, almost accidentally talking about our social safety net:

“…President Johnson astutely sought to combine reduced military expenditures with reduced taxes and a large-scale attack on American domestic poverty to EXPAND DEMANDS IN THE CONSUMERS MARKETS…”

Oops, it slipped out.  The purpose was to increase consumption.  But am I reading too much into this?  Let’s see if the logic still applies.

“China’s consumers are not going to start opening their wallets until Beiging rebuilds its tattered social safety net, a process that will take years to complete, says Arthur Kroeber, managing editor of Beijing based China Economic Quarterly.” (http://www.businessweek.com/globalbiz/content/may2009/gb20090531_143927_page_2.htm)

In fact, Timothy Geithner went to China to try and get them to do just that for just that reason.

“Timothy Geithner followed bipartisan tradition when he recently called on the Chinese to strenthen their social benefits.  Indeed, it has become an article of faith that a solid welfare state will allow the Chinese to curb their abnormally high savings rate-which is at the heart of the Global economic imbalance.” (http://blogs.reuters.com/great-debate/2009/06/03/no-us-bounce-from-chinas-safety-net/)

So what’s wrong with this?  Let’s follow the logic.  If I don’t have to worry about paying my own way if I get sick, if I don’t have to worry about my neighbor who is out of work, then I am free to spend my money on toys!  Thus, instead of savings or charity, people who have a social safety net tend to become consumers.  I may be in a vast minority, but I just think this is wrong.  In my experience, the true joys in life come from being self reliant and caring for others.  I believe the welfare state has done serious damage to both, not to include the market distortion of artificially high consumption, which consumption our Elites now seem to want to control by taking ever more freedom!

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