Wednesday, September 25, 2013

Government Programs, The Downfall of this Country

Over the past fifty or so years many in this country and succumb to the notion that the government is the deciding factor with regards to who fails and who succeeds in this country.  Many, including Obama, consider FDR to be one of the greatest presidents of all time.  Little do many realize just how much he hurt this country.  We constantly hear about how all of the government programs saved the country, yet many do not realize that the government cannot simply make something out of nothing and for every program there had to be funding which inherently comes from the tax payer. 

According to the Cato Institute, the New Deal "didn't increase the number of jobs in the economy, as the money spent on the New Deal projects came from the tax payers who consequently had less money to spend on food, coats, cars, books and other things that would of stimulated the economy."

Fast forward some sixty years and we find ourselves in an very similar situation on a much larger scale.  Government has expanded exponentially over those years to become a behemoth that many feel has passed the point of no return.  We now face the daunting task of taking down Obamacare which if passes, will all but signify the end of conservatisism in the government.  Obamacare was passed as a tax, yet it is simply the government compelling you to buy a service and punish you for inaction.  This sets a scary precedent, if the government can punish you for inaction in regards to healthcare, whose to say they can't levy a punishment for not partaking in any government program or service they decide to implement.

We must also take into consideration the cost factor.  As with the New Deal, Obamacare will increase the tax burden to those who actually pay taxes. With Obamacare individuals will be required to purchase healthcare or face a penalty.  What many fail to realize is that those who cannot afford to pay for Obamacare will simply receive a subsidy provided by the government to purchase their healthcare at the cost of the tax payer. This phenomena is known as cost shifting which will hurt rather than help as the costs of those who are receiving the government subsidy to purchase healthcare will simply be shifted to those who do pay. 

It's really quite simple, both the New Deal, Obamacare and just about any other government program is funded by the tax payer.  Government cannot simply issue a decree and magically programs are implemented and services are provided.  This government today is a government not by the people and for the people, but a government that provides freebies to the people.  As a result we have a receiving class in this country that pays nothing to the system yet takes advantage of every program available.  This simply cannot continue as we will eventually reach a point where the receivers will outnumber the contributors.