Do not think about, write about or deal with human behavior without determining the effects of incentives.
Canada spent over one billion dollars on the H1N1 campaign including advertising. There were 458 deaths compared to 4,000 from the usual influenza. This might look as if the “campaign” were effective, but other data suggest it stemmed from the mildness of the infection. What happens if you declare a pandemic and the virus does not cooperate? Who do you sue? Which political opponent is to blame? What was the role of capitalism?
I’ve known poor people. In each case poverty was honestly earned by laziness, hostility, drug-taking and a variety of activities well-designed to hinder wealth creation and wealth accumulation. A lot of energy went into gaming the system in terms of becoming eligible for “programs” and in instituting lawsuits. Whenever advocates of any welfare program presents a worthy “case”, they always trot out a fantastically unlucky, morally blameless person who fell on hard times by accident.
John Stossel got some opinions from several libertarians about liberty, the government and the relationship between poverty and government. Whenever you’re talking about liberty and\or libertarianism, you’re talking about incentives.
"It might in some cases be a little cruel," Miron said. "But it means you’re not taking from people who’ve worked hard to earn their income (in order) to give it to people who have not worked hard."
But isn’t it wrong for people to suffer in a rich country?
"The number of people who will suffer is likely to be very small. Private charity … will provide support for the vast majority who would be poor in the absence of some kind of support. When government does it, it creates an air of entitlement that leads to more demand for redistribution, till everyone becomes a ward of the state."
“David Boaz, executive vice president of the Cato Institute, took the discussion to a deeper level.
"Instead of asking, ‘What should we do about people who are poor in a rich country?’ The first question is, ‘Why is this a rich country?’ …
"Five hundred years ago, there weren’t rich countries in the world. There are rich countries now because part of the world is following basically libertarian rules: private property, free markets, individualism."
Boaz makes an important distinction between equality and absolute living standards.
"The most important way that people get out of poverty is economic growth that free markets allow. The second-most important way — maybe it’s the first — is family. There are lots of income transfers within families. Third would be self-help and mutual-aid organizations. This was very big before the rise of the welfare state."
Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies
