Sunday, April 10, 2011

The Welfare State



"The welfare state is not really about the welfare of the masses. It is about the egos of the elites."  The previous quote made by Thomas Sowell known as an American economist and social critic, makes a point in how Welfare is a control of the government. Through the reading there are points made at the start of how low American welfare percentages are.  Almost like a race to be better in one more thing.  However, when welfare becomes a problem and taxes are raised and the domino effect of the economy starts, employers will find a new means to meet their end. "Employers are tempted to move their investments to locations where tax rates are relatively low and welfare states are relatively small"(p.273).   This causes jobs to move out of our economy, making the unemployment rate sky rocket. With unemployment comes more need for welfare to support those who have lost their jobs. "Poverty rates are sensitive to political choices governments make about the welfare state"(p.294).  Can I blame the government then?  Every election year we come across the same talk such as lowering welfare and bringing jobs to the country.  Then once the president is placed in office they are distracted by all the other things that are required of him then to keeping their word from their campaign's.
"The economic boom of the 1990s has been replaced with stubborn unemployment...Where the opposite, states are eliminating programs, making eligibility requirements stricter, cutting benefits, and enforcing administrative rules more strictly in an effort to reduce spending"(p.291). During the age of Clinton, our economy was at its best. Then when hands where changed over to  Bush everything came falling down on our heads.  Is it poor government that holds us back? I believe so, the first time Bush stepped into office the economy began to fall. Then we vote him into office again? Are you kidding me? Did we not learn the first time?

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