Briefly summarize Higgs’ nineteen consequences of income redistribution.
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Briefly summarize Higgs’ nineteen consequences of income redistribution.
Started by Murphy, Sep 10 2005 12:25 PM
3 replies to this topic
#2
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Posted 14 February 2007 - 06:37 PM
Murphy, on Sep 10 2005, 12:25 PM, said:
Briefly summarize Higgs’ nineteen consequences of income redistribution.
Government growth means that taxation has to increase. Excessive taxation forces some workers to seek income in the black market. As government taxes more and adds programs, people feel less inclined to be charitable as well and in paying tax, will resort to spending lots of time, money and effort on understanding the tax laws sufficiently in order to pay the least amount of tax. They will also spend less time volunteering because they feel that government is taking care of the ills of society, and that they have already paid for that service. As government grows, it gets increasingly more difficult to oppose new programs because an apathy on the part of people who feel government is highly instrusive sets in. Then, when new programs are added, those who would oppose such legislation are too depleted to combat it, and it just gets easier and easier for those seeking more government transfers and new programs to get their way.
On the other side, the receiving end, the picture is quite different. Those who receive transfers as individuals or families become so accustomed to not making an effort for their sustenance that they atrophy in many ways. They see no need to invest in their skills because there are no demands in the future to cause them to alter their behaviors in the present. Those around them, for whom they are role models, are reared in the culture of transfers and are likely to do the same thing.
For those in government who administrate and broker these programs, they are middlemen taking a commission. However, once a government entity is formed, it will not go away. Those new employees have a vested interest in seriously complicating the problems the existence of their agency was designed to resolve. Due to the costs of administrating programs, the taxpayers' monies are not used efficiently.
Sometimes society is divided as a result. This can be rich v. poor, or intergenerational battles. Even advocacy groups that operate on behalf of causes or governmental agencies will spend money lobbying to perpetuate these programs - oddly, spending money so government can keep taxing and spending. Taxpayers then tend to be less charitable and start directing funds towards those politicians or groups that seek to dismantle programs and lower the tax burden.
Overall, a little government never stays that way and its costs to society just grow.
#3
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Posted 03 March 2007 - 06:26 PM
This seems fine. (This question was mostly to ensure that readers read Higgs' 19 consequences. 
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Posted 27 September 2008 - 02:43 PM
Most of these are the "moral hazards" of the welfare state!! 
1) Taxes to redistribute discourage honesty in both saving and tax paying: disutility of labor (Woods)
2) lower skills needed, less planning for the future, both current and future investmests and production decrease
3) DEPENDENCY
4) cycle of poverty: Mom does it!
5) creates social conflicts due to "unfair" distribution, certain groups get more
6) creates social conflicts due to "unfair" confiscations, certain groups give more
7) Class warfare (Marx's struggle) is created
8/9) Government now conflicts with other assistance programs--churches, self-help groups, charitable organization
10) goverenment becomes surrogate parents or "safety net"
11) less opposition to wlid pigs in the fences, see earlier posts
12) bureaucracies and other vested interests siphon off funds, more expensive than just redistributed funds
13) no one evers loses a job once established, see #12
14/15) people actually waste productive time and resources to avoid, as well as to "honestly" pay
16) instead of working to produce, recipients "work" to get more, trained by Obamaites in Commumity programs
17) recipients also waste time "complying" with the system, standing in lines, "seeking" jobs
18) golden rules kicks in: he who has the $ makes the rules, he with more $ makes more rules!!!
19) rights diminish (Liberty) when "equality" increases
1) Taxes to redistribute discourage honesty in both saving and tax paying: disutility of labor (Woods)
2) lower skills needed, less planning for the future, both current and future investmests and production decrease
3) DEPENDENCY
4) cycle of poverty: Mom does it!
5) creates social conflicts due to "unfair" distribution, certain groups get more
6) creates social conflicts due to "unfair" confiscations, certain groups give more
7) Class warfare (Marx's struggle) is created
8/9) Government now conflicts with other assistance programs--churches, self-help groups, charitable organization
10) goverenment becomes surrogate parents or "safety net"
11) less opposition to wlid pigs in the fences, see earlier posts
12) bureaucracies and other vested interests siphon off funds, more expensive than just redistributed funds
13) no one evers loses a job once established, see #12
14/15) people actually waste productive time and resources to avoid, as well as to "honestly" pay
16) instead of working to produce, recipients "work" to get more, trained by Obamaites in Commumity programs
17) recipients also waste time "complying" with the system, standing in lines, "seeking" jobs
18) golden rules kicks in: he who has the $ makes the rules, he with more $ makes more rules!!!
19) rights diminish (Liberty) when "equality" increases
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