From the official GDP press release: “Real federal government consumption expenditures and gross investment increased 10.1 percent in the first quarter, compared with an increase of 0.7 percent in the fourth. National defense increased 15.1 percent, compared with an increase of 3.0 percent. Nondefense increased 0.7 percent, in contrast to a decrease of 3.7 percent. Real state and local government consumption expenditures and gross investment decreased 2.6 percent, compared with a decrease of 0.5 percent.”
Source link: http://archive.mises.org/1920/government-defense-profligacy/
Government Defense Profligacy
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{ 19 comments }
Looks like we’ve taken care of the guns, now where’s my butter?
I suppose there’s one advantage to more warfare spending, as opposed to more welfare spending. Most of the harm done by welfare spending is done here, in the United States, where I happen to live. The welfare state has made most US cities unliveable, which pains me greatly. On the other hand, most of the harm done in warfare spending is done elsewhere, in places where I’m not likely to ever be.
The cost is the same to me. I’m taxed no more or less, regardless of how the criminals in DC choose to spend the money. But for purely selfish reasons, I’ll take warfare over welfare any day.
And isn’t it interesting, that our government has created war zones all over the world with its warfare spending, and war zones in every US city with its welfare spending.
“The welfare state has made most US cities unliveable”
Sure, most of US is a wastland, but there are really nice places to live in like Boston , NYC and San Fran. The welfare state is in full effect in these places, but its seems to be worth it. The correlation is uncanny.
Welfare causes unemployment – it doesn’t help people out as much as it hurts them.
If you really want to see the effects of welfare, perhaps you should check out the slums, which is caused by rent control, or the amazing state that most black families are in – that is, no state at all, with most black children being born in wedlock. Ergo, an overwhelming majority of violent criminals, drug dealers, etc are black males.
Why am I bringing this up? Probably because the State more or less destroyed the black family through the ‘no man in the house’ rule which more or less destroyed the black nuclear family – a rule imposed by the welfare state.
NYC and other cities are capitalist oriented, not welfare. Living off of other people without their consent is called parasitism. I don’t owe you anything, and you don’t owe me anything, money wise, unless we agree in trade terms.
Abolishing the minimum wage, and becoming more capitalistic instead of welfare oriented will end poverty, and joblessness.
And ‘wastland’ is spelled ‘wasteland’.
“NYC and other cities are capitalist oriented, not welfare”
This sentence makes no sense. The two are not mutually exclusive. I guess you’ve never been to Bronx. I should really stop engaging people on this site, since it seems that everyone’s judgment is clouded by absolute notions. Speaking of welfare we are not talking about only in-kind transfers, but also services offered by the state such as infrastructure development, education, after-school programs, etcetera. Again, the US is wasteland, besides the aforementioned cities. And the lower and the more regressive the tax rate is the more of a wasteland the region is. Just look at the South and the mid-West. Sometime I think the Northeast should separate from the rest of the country. And all you can keep your wasteland and not burden us with your stupidity.
Gary
Gary,
I’d just as soon see the entire federal government abolished, but I suppose some secession is better than no secession.
You write, “Speaking of welfare we are not talking about only in-kind transfers, but also services offered by the state such as infrastructure development, education, after-school programs, etcetera.”
Indeed, all state spending is ultimately for the same purpose; the forcible transfer of wealth from some to others. You seem to think that some spending gives better results than others, and subjectively you’re correct. To a parent too lazy and ignorant to educate and discipline his own child, public “education” and “after school programs” are a good thing. They relieve the miscreant from the responsibility of raising his child to become a responsible adult.
But to others, the forcible funding of these “programs” makes it more difficult to raise a family, since the high taxes we pay reduces the means by which we can educate our own children, forcing those of us who might want more children to have fewer, since wives are forced to work for money wages just to pay the taxes.
You mention nice places to live in Boston. I grew up in Boston, moving out in 1974. It was an interesting city, full of many very nice places to live. And those nice places encircled a central area, known as the high crime neighborhood, where the ***** people lived. If you weren’t *****, that part of the city was effectively a no man’s land. I lived in Dorchester. Washington Street runs north/south through Dorchester. To the west was the ***** neighborhood, to the east, non *****. If you wanted to go to a part of the city to the west of the ***** neighborhood, you went around it, not through it. It was as if it didn’t exist. Nobody even mentioned its existence. You just knew not to ever go there, or even talk about going there. If you looked on a map to see how best to get from the Back Bay to Dorchester, or Roslindale, you would see streets that went there directly. But no non ***** people ever took those streets, they went the long way around.
While I rarely visit Boston these days, I’m always surprised at how many more neighborhoods have become high crime neighborhoods, and I wonder what traffic patterns are used by non ***** people these days, particularly women, and at night. The nice places to live in Boston are getting smaller and isolated from each other.
As a child in the sixties, my parents usually didn’t lock the doors, unless we went away for the whole day. But only nine years after Lyndon Johnson’s “Great Society” transformed most ***** families from two parents to one, criminals had made our peaceful little working class neighborhood into a war zone, and our family fled to the suburbs. Within three years several homes on our street had burned down, including that of our former next door neighbors.
Welfare is every bit as destructive as warfare, it just uses different types of weapons. When a Marine in Iraq beats a man to death for having a photograph of a Shiite leader the US doesn’t like on his car, it’s clear what the cause of the man’s death is; blunt trauma to the head by a “brave American”. When vast acreage in a city like Detroit is bare of any habitable buildings, it’s not so clear to the average person what the cause is. But it’s government that sent the “brave Americans” to Iraq, and it’s government that makes the rent control, minimum wages, subsidies to young unmarried mothers, zoning and licensure restrictions on small businesses and all the other things that destroy civilization.
“it’s government that makes the rent control, minimum wages, subsidies to young unmarried mothers, zoning and licensure restrictions on small businesses and all the other things ”
Better a representative government than just some arbitrary private power usually referred to as the “mafia.”
“The nice places to live in Boston are getting smaller and isolated from each other.”
Again, you probably haven’t been to Boston is some time now, the only place which most **** don’t go to are Dorchester and that’s probably not true either these days. Since there are so many student I know many **** students who are happy to live Dorchester. Even JP is safe and quit expensive I might add these days. I am talking bout 1500 for a two bedroom in JP. Plus, Boston has the lowest crime rate in the country and probably the highest per-capital given all of its high level of taxation.
“the forcible transfer of wealth from some to others”
Thanks for pointing out the obvious. Life is tough and compromises sometimes must be made. You want clean water, do you want roads, I know you would prefer to educate your own kids, but honestly I prefer to have them educated by someone who actually knows math, science, language, literature and history in-depth. See, there isn’t a problem here. You live in a free country, you don’t like how something is, vote with you feet. I recommend moving to Qautar, I heard they have no taxes.
“Again, the US is wasteland, besides the aforementioned cities. And the lower and the more regressive the tax rate is the more of a wasteland the region is. Just look at the South and the mid-West. Sometime I think the Northeast should separate from the rest of the country. And all you can keep your wasteland and not burden us with your stupidity.”
The South’s economy is excellent. As you suggest, people are voting with their feet: for sunshine and low taxes. The Midwest, of course, is where they grow all our food. Its cities are clean, the people friendly, and as noted, they have made excellent use of all that fertile soil from the Mississippi Basin. I don’t know what they show on TV up there in Yankeeland, but I can assure you the South and Midwest are not “wastelands.”
By contrast, New York and California are seeing an outflow of their net tax producing, middle class populations.
“You want clean water…”
I just poured myself a glass of Callaway Spring Water: privately owned and operated. Much cleaner and purer than our municipal tap water.
“…do you want roads”
Government is not the sine qua non of roads. There are a number of residential subdivisions with privately owned roads. The government’s roads also suffer from the defect of not passing 100% of their costs on to the consumer, with the result that they are overused.
“I know you would prefer to educate your own kids, but honestly I prefer to have them educated by someone who actually knows math, science, language, literature and history in-depth.”
Do you really believe the graduates of our nation’s education colleges have such skills? Do you really think the public schools successfully teach these subjects? Even ardent advocates of public education such as the Sharptons and the Clintons sent their children to private schools.
“New York and California are seeing an outflow of their net tax producing, middle class populations.”
Why don’t you back that up with some evidence?
“Do you really believe the graduates of our nation’s education colleges have such skills?”
Not all, we must pay teachers more and require all of them to have master’s degrees like they do in Europe. Besides, I think even those mediocre educated teachers are more effective than some joe shmo six-pack who probably cant even name all of the US state. Remember only like 40% of US adults could point out Iraq on the map. Do you really want these people teaching their children? Two wrongs don’t make a right!!!!
“The South’s economy is excellent”
I visited West Virginia last year. Phenomenal economy, I encountered the fattest, dumbest and poorest people I’ve even seen. I thought Jamaica was poor; this place doesn’t pale in comparison. Anyways, this is useless discussion. You obviously prefer to live in Rural, or what we in the Northeast refer to as the “wasteland” and I prefer the metropolitan urban regions. I love Manhattan and Boston, and you love, I don’t know whatever is it is that you call home. End of discussion.
I’ll reply to your comments in a bit, Gary. I had typed up a large reply, but it didn’t go through.
First, I’ll just ask that you be respectful of other people. You constantly call people or their views stupid – which would be comical if your own views on economics and ethics weren’t so backward. But even if they weren’t, it is still in bad taste.
“End of discussion.”
No, it isn’t. If you post incorrect views, someone will respond to them, especially when your views support the same policies which have been eating away at America for decades – and especially when you’re posting these views on a website dedicated to liberty.
I’m looking forward to see how you’ll try to answer the questions that I will ask you later, and the points I’ll bring up.
“your own views on economics and ethics weren’t so backward”
That’s a value-judgment and not a fact!!!
“and especially when you’re posting these views on a website dedicated to liberty”
I love liberty too. I consider myself a social libertarian. Economic liberty, as espoused on this site, is nothing but absolute adherence to property rights. This is not always conducive to social or political liberty which I think acceded in importance to economic liberty. Again, these are value-judgments and are not facts. There is nothing factual or empirical that would lead me or you to conclude that one political philosophy is better than the other. It’s all about what you value more. Taking from that vantage point, anyone with some philosophy training can construct a solid and a rational argument for its philosophy.
“eating away at America for decades ”
Again, that’s a value- judgment. I think some of the policies you speak of have made the US (please don’t refer to he US as America, as you probably know America is a continent not a country) more politically free, rescued our senior citizens from poverty, build massive infrastructure, and strengthened and empowered the middle class. Maybe we are looking at our nation through different lenses; my Northeastern Yankee lens shows the prosperity that can be achieved. Your lens shows otherwise. Who knows, maybe you are right, but probably not. The concept itself is a philosophical illusion.
Gary, if your position is a one based on subjective value, you have undermined your own position. Economics and ethics is not a subjective science; there are real theories and logic that can lead us to understanding both.
Now, I’d like to make some points which I’d like to see you answer.
1) Liberty is something that is intristic to our rights as human beings; therefore being taxed and regulated – for the sake of others – necessarily means that some have (political) rights that other’s do not.
Quote:
“I love liberty too. I consider myself a social libertarian. Economic liberty, as espoused on this site, is nothing but absolute adherence to property rights. This is not always conducive to social or political liberty which I think acceded in importance to economic liberty.”
What you really mean is that because some people want to hold onto property, others will suffer. But your position is exactly the same; some people suffer in our current political climate and others do not. Political liberty, by you, grounded in popular opinion, which is democracy, is ludicrous. We cannot find solutions to problems or ‘find’ rights or liberty by appealing to votes. Shall we decide matters of mathematical theory by arm wrestling?
2) Have you bothered to see clear minded research on the effects of the welfare state? The destruction of the black nuclear family, the rise of unemployment, and the goofy ethics of allowing a certain class of people to live, parasitically, off of the others.
You say that these are value judgements, but you are incorrect; you state that you can see the wealth of NYC and other cities through your ‘Yankee eyes’, but you are apparently incapable of seeing the destruction caused by taxation, welfare, and the rising crime associated with fatherlessness and the destruction of the nuclear family.
3) We receive all things we have because of the market. You seem to have the view that the State brings with it liberty – which it does not. Capitalism is what grants the State the ability to live parasitically off of others; and the more socialist democrat programs that you support, the weaker the host becomes. It is not a symbiotic relationship; it is one based on parasitism.
Some questions I’d like you to answer;
1) If liberty is a value judgement, how can you defend the notion of using force against certain people who do not agree with your views? Shouldn’t people be allowed to decide, for themselves, how they want to live?
2) I’d like to see an ethical argument on why we owe – through the threat of physical violence – others our money. Why? And if so, what grants the State the ligitimacy to pursue these ends, and not the common man? What if my family becomes impoverished, and I decide to lay claim to all the money that you have earned. Should I do this?
3) Roads, water, and military defense has been handled through the market. Exactly why do we need to have the State to supply these ‘public’ goods?
4) Why is it more moral to use force to accomplish things that we can do without force? If, without taxes, we are capable of providing for education, retirement, and other options, exactly how is it more moral to justify using the business end of a gun to force other people to do this?
5) The State does not bring prosperity. Here is the crux of why your views are backward; the State can consume wealth, but it cannot create it. There is an overwhelming body of literature that points to the workings of the State as inherently clumsy – and some economists such as Mises have made the assertion that without prices and profit and loss, the State is flying blind, making decisions arbitrarily and not knowing how to use goods in the most effective way.
6) The prosperity you see in cities such as NYC is the result of capitalism. Do you really think that the State created these cities? Or that the market is not capable of providing services such as police force, roads, etc that the State does? One is incorrect, and so is two.
7) You call yourself a social libertarian, but you’re actually a Socialist Democrat. I don’t think you are fooling anyone on this board with your claims.
8) If you believe that liberty, unrestrained by property or the basic respect of human life is the ultimate highest goal, rather than liberty restrained by property rights and right-to-life, you are a nihilist and moral relativist.
9) If we all have certain rights, why can the State do what I cannot? What argument do you have for me not stealing money from you through the threat of a barrel of a gun? Democracy? What if the majority of people voted that you should be converted to sound moral and economic theories by force; namely the theories of Austrian economics and ethical intuitionism, while being hung upside down? Would this be reasonable and ethical?
“you are a nihilist and moral relativist.”
Wow you are good!!!! I am and I am damp proud of it. I am not going to address all of you questions, it would be a gross waste of my time, I’ll try to address some of them.
“There is an overwhelming body of literature that points to the workings of the State as inherently clumsy ”
Yes, yes, and there is also an overwhelming body of literature that said that intervention and welfare programs can be beneficial. Lets remember what rescued the senior citizens from poverty. While it’s no other than SS.
“The prosperity you see in cities such as NYC is the result of capitalism. Do you really think that the State created these cities?”
Didn’t I say these are not mutually exclusive? The Welfare State and Capitalism can work hand-in-hand.
“Or that the market is not capable of providing services such as police force, roads, etc that the State does?”
NO, NO and NO. That would be a scary notion. Having a private police is scarier than having the Mafia as your protection. I know something about Mafia, especially the Russian mafia, very lively in my parts.
“You call yourself a social libertarian”
I do and I am. I don’t think that state should interfere with my personal life, but I don’t mind paying taxes if the money is spend worth while.
“Roads, water, and military defense has been handled through the market.”
They could, again not mutually exclusive. We’ve seen the industrial-military complex that the state has created over the years. Now that’s a scary trend.
“Would this be reasonable and ethical?”
Always bringing up the rule-of-the-mob as your backbone. Ohh no, democracy is so scary, please don’t give people power to self-determination.
“What argument do you have for me not stealing money from you through the threat of a barrel of a gun?”
Sometime power has to be exercised for the sake of liberty, i.e., enhancing everyone liberty at the cost of the few. That’s my argument. Clear, coherent, and to the point.
“Shouldn’t people be allowed to decide, for themselves, how they want to live?”
Sure, first you establish some-kind of order or a “social contract” where everyone can agree on some basic economic and social issues. Than, if you don’t like the outcome you can vote with your feet or you can try to take action through political means.
“Shall we decide matters of mathematical theory by arm wrestling?”
I think its pretty fooling to compare mathematical theory to economics or ethics. According to the Austrian argument, the most you can know in econ can only be derived from deduction. But if you cant use induction or empirical evidence, than how do you know you are right. Maybe the “devil” if f*ing with you and purposefully leading you to the wrong conclusion. Logic is liberating, I agree, but it’s not absolute and never complete according to Gödel. So can one know that their theory is better than the others? This all could be a grand illusion…..
At least you can admit that you are a nihilist – as I suspected.
Quote:
“Yes, yes, and there is also an overwhelming body of literature that said that intervention and welfare programs can be beneficial. Lets remember what rescued the senior citizens from poverty. While it’s no other than SS.”
Where are you getting this? Interventionism creates problems while it ‘solves’ others. One of the problems of welfare is that it subsidizies lazy workers because… why? There is not a problem of finding jobs on the free market.
Senior citizens have a higher cost of living than they used to because of inflation and government spending and regulations – the same ones that you enjoy so much. Lastly, SS will be bankrupt in about forty years, and the average senior citizen is entitely to only 200$, average, on SS benefits.
You still haven’t answered my legitimate moral claim on why the young should be forced to pay for the old.
Quote:
“Didn’t I say these are not mutually exclusive? The Welfare State and Capitalism can work hand-in-hand.”
Incorrect. Capitalism is reduced whenever taxation or especially destructive programs such as welfare are brought in. The two don’t go ‘hand in hand’ as the number of people on welfare tax those whom pay their welfare checks – and the more people on welfare necessarily means an economic drain on the market – and, paradoxically, a drain on the welfare receivers as well.
Economic theory 101: Taxation distorts the market and stops money from being spent on market endeavors. Welfare is even worse, as it is both a taxation on the market, and an incentive to no longer work in the market; a double sucker punch to the same economic system which allows nihilists and socialists to live so comfortably.
Quote:
“NO, NO and NO. That would be a scary notion. Having a private police is scarier than having the Mafia as your protection. I know something about Mafia, especially the Russian mafia, very lively in my parts.”
How is the Mafia different from the State? You never did answer this question. Both take money for profit, instead of earning it voluntarily like the market does.
Have you read any literature on the history of private police? They are notoriously better at stopping crime, and they do it without the bad moral aftertaste of using the business end of gun to start their businesses (like the State, and the Mafia).
Quote:
“I do and I am. I don’t think that state should interfere with my personal life, but I don’t mind paying taxes if the money is spend worth while.”
You don’t want the State to interfere with your personal life, but you think it’s okay for people who don’t want to be included in your social works programs to have their lives interfered with? Do you think that you have some rights that others do not?
You don’t mind paying taxes if the cause is worthwhile. How about we take this to the logical conclusion; people don’t pay things to causes that they think is not worthwhile. This is called libertarianism.
Quote:
“Always bringing up the rule-of-the-mob as your backbone. Ohh no, democracy is so scary, please don’t give people power to self-determination.”
Again I see your logic falling by the wayside. If group A, the majority, votes for something ridiculous (like welfare) that minority group B doesn’t like, exactly how are the people in the minority group exercising their ‘self determination’? Lastly democracy is the rule of the mob – the majority.
The only sense of self determination that we can have without violating intristic rights is the right to own ourselves, our property, and respect for human life. This is called market anarchism, not democracy, where the needs of some necessarily cost the minority to lose in some way, either politically or economically.
Quote:
“Sometime power has to be exercised for the sake of liberty, i.e., enhancing everyone liberty at the cost of the few. That’s my argument. Clear, coherent, and to the point.”
Not very clear, certainly not very coherent. Any system of ethics that sanctions the suffering of a few for the sake of many is engaged in a dangerous and disgusting display of ant-hill ethics and communism. It is not your place to decide how people are to live.
Quote:
“Sure, first you establish some-kind of order or a “social contract” where everyone can agree on some basic economic and social issues. Than, if you don’t like the outcome you can vote with your feet or you can try to take action through political means.”
Congrats – you just described market anarchy, minus the ability for some people to parasitically vote themselves as the rightful owners of monies that have been collected by rich people.
What you have not described is democracy, which is the iron fist rule of the majority over the minority.
You can continue advocating more socialist democrat policies, but keep in mind that every time you do, you are destroying the same wealth and honorable citizens that have enabled people such as yourself to live off of money that you feel they owe you. At least have the basic human decency to realize this, if not the moral courage and guilty conscience to admit when you are wrong.
“At least you can admit that you are a nihilist – as I suspected. ”
I really don’t see any other way to live. I am very proud of my believes in nihilism and secular humanist. I do not run away from ever admitting this anyone.
“you are destroying the same wealth and honorable citizens that have enabled people such as yourself to live off of money that you feel they owe you”
I don’t know what you are talking about dude, but I work as an IT professional and I do no not live of the welfare state. And I disagree that it always destroys wealth. Besides, you are not always entitled to what you create. I wish that was true. I think you are stuck in the wrong century, your argument would of been much more effective and respect if you lived during Medieval Times. Let me remind you that we are living in Postmodernism.
“if not the moral courage and guilty conscience to admit when you are wrong.”
How can I be wrong when I am right? Remember I am nihilist I don’t carry regrets of whatever is that you call “guilt.” From that vantage point in order to be wrong there has to be a right. But again, I refer you back to my nihilism for the answer to that question.
“How is the mafia different from the State?”
I came across an interesting answer to this question in a book by French liberal economist Simonnot (“L’Invention de l’Etat”, unfortunately not translated into English): the State differs from the mafia in its ability to tax EVERYONE on an entire territory, something a mafia does not achieve. And once a mafia achieves this, it effectively becomes a State. Simonnot also demonstrates that any attempt to define the difference otherwise fails.
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