Even in a partial free market, the poor don't stay poor


This is why socialism doesn't work very well
This Wall Street Journal piece is just full of goodness, but I am going to pick two quotes. First, people are better off.

When all sources of income are included -- wages, salaries, realized capital gains, dividends, business income and government benefits -- and taxes paid are deducted, households in the lowest income quintile saw a roughly 25% increase in their living standards from 1983 to 2005. (See chart nearby; the data is from the Congressional Budget Office's "Comprehensive Household Income.") This fact alone refutes the notion that the poor are getting poorer. They are not.

It's one of those things that SHOULD be obvious. After all, think about all the people who have multiple televisions, fashionable clothes, and plenty to eat.

But the next one is what really stands out.

What is also striking about the data is that the poor today are, in general, not the same people who were poor even a few years ago. For example, the new Census data find that only 3% of Americans are "chronically" poor, which the Census Bureau defines as being in poverty for three years or more. Many of the people in the bottom quintile of income earners in any one year are new entrants to the labor force or those who are leaving the labor force. Obviously, there is also a significant core of truly poor people in this group, but that core is drastically less than 100%.

I can't stress that one enough.

The poor don't stay poor.

Given half a chance to better themselves, most people will do exactly that. They'll find ways to improve their lives and the lives of their families.

The poor don't stay poor.

That's the promise that the U.S. offers to it's immigrants. "Come make a better life for yourself." That's the American Spirit in a nutshell. Make your dreams come true.

The poor don't stay poor.

You don't need government intervention to make it work. You just need faith in yourself and hard work. And if it doesn't work out the first time, there's nothing to stop you from trying again until it does.

Find me another nation that makes that promise and welcomes immigration.

It's not the rich that makes us a strong nation. It's the little guy and gal trying to make life better. And succeeding.

Oh, and if you haven't heard of Arthur Laffer, you should have.

— NeoWayland

Posted: Mon - September 15, 2008 at 12:10 PM  Tag


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