Newell-Fonda High School
Newell, Iowa
12th grade
“Free people are not equal.” This is a point made by Lawrence Reed in his Seven Principles of Sound Public Policy. From this statement, it can be concluded that people are free to make their own decisions and may end up with unequal payrolls. This leaves some people in poverty. Poverty is a big issue in the United States.
There is always the question as to whether or not people should advocate compassion and aid for the poor. In his testimony, Lawrence Reed brought up a large number of points about a sound public policy. After reading this, people were left with the question, was Lawrence Reed advocating compassion and aid for the poor? [I suggest that] in his testimony before the U.S. Senate Budget Committee, Lawrence Reed was not advocating compassion and aid for the poor.
[However, Reed shows an understanding of the situation when he states] that confiscatory tax rates “drive the industrious and the entrepreneurial to other places or into other endeavors while impoverishing the many who would otherwise benefit from their resourcefulness.” … [He says] if…differences result from artificial political barriers, then get rid of those barriers. [Reed] also speaks of people being industrious and willing to work. Some people work harder than others, and in turn get a higher pay. Also, people are different in terms of talent. If one person is more talented in a certain field than another, he should get paid more. … Reed makes [a] statement about laying out twenty four million dollars in additional unemployment benefits because of people thrown out of work in certain industries by the higher taxes, [which might be] taken as advocating compassion and aid for the poor. ...
In his testimony, Reed addresses the welfare system. While welfare does present
a large amount of monetary relief to an impoverished family, it also
creates…problems. … People often get away with playing the system. By filing for
divorce and having one parent move to another home, which may be right next
door, a family receives a much larger welfare check. This causes both idleness
and a family splitting up. Idleness is shown in the fact that the family isn’t
working as hard for their money because they are being handed extra money for
playing the system. This is all happening because a family member moved out of
the house. Reed also addresses the fact that welfare is costing taxpayers a
fortune. He says that the welfare state is not much more than robbing Peter to
pay Paul. Welfare money is coming from taxpayers’ pockets to go to the poor. …
He also states that welfare “yielded harmful cultural pathologies that may take
generations to undo.” [and that] the habits that are being formed now may cause
a great deal of problems in the future.
In his testimony before the U.S. Senate Budget Committee, Lawrence Reed was not advocating compassion and aid for the poor. Because free people will never be equal, incomes will be different. Also, there will always be a sore spot about who should be getting the government’s money. ... He says that although some lament and speak dolefully of the gap between rich and poor, he thinks people being themselves in a free society is a wonderful thing. This means that people will be able to make their own decisions, work as hard as they see it best, and earn themselves a respectable pay. Overall, Reed did not advocate compassion and aid for the poor.
Answers To Questions Prompted By The Required Reading
Q1 – Why does Machan use “steal” in his statement: “Private property solves this problem, but was abandoned a long time ago when taxes reached the point where we can steal our way to being provided with all sorts of things we desire, never mind thinking about paying for them or long-range budgeting.”?
– Machan uses “steal” in his statement because people are taking things from the government that the government shouldn’t be forced to supply to the people. People expect the government to provide for them, even if it is something people should be paying for themselves; hence, they are stealing from the government.
Q2 – Machan said: “For that which is common to the greatest number has the least care bestowed upon it.” Give two examples of this from your personal experience.
– Public restrooms are always dirty. No one cares to clean up after themselves there, because it is not their own property; yet, they would be sure their own personal bathroom was kept clean. At our school dance team practice, someone has to go get the boom box from the locker room each day. No one ever wants to be the one to get it. People expect that someone else will do it so they sit around until someone finally takes action to get it.
Q3 – Do you agree with Machan that “…everybody is more inclined to neglect the duty which he expects another to fulfill; as in families many attendants are often less useful that a few.”? Give an objective example of this.
- I agree because if one feels that another person should take the leadership role, he or she may sit back and do nothing. An elderly man with no immediate family, needing care, comes to depend upon extended family. The extended family is large, yet no one feels it is their right or responsibility to make critical decisions. It is left to one or two who have the courage to step forward and assume responsibility.
Q4 – State Kershner’s First Law. Do you agree or disagree and why?
– “When a self-governing people confer upon their government the power to take from some and give to others, the process will not stop until the last bone of the last taxpayer is picked bare.” I disagree, because when something is being taken from one and given to another, there is always a person who will be left with something. No one can ever be picked bare if there is a person receiving the money.
Q5 – What industry was the first to be taken over by government in both ancient Rome and the USA?
– The first industry to be taken over by government in both ancient Rome and in the USA was transportation.
Q6 – Is cheapened money the cause or the outcome of inflation? Explain.
– Cheapened money is initially the cause of inflation, but because of inflation the value of money is lessened. There is an increase in monetary supply, but the prices of goods and services rise; therefore, increased income is required to maintain financial status. Often times, salaries do not keep up with the rise in costs of living.
Q7 – How did the Edict of 301 affect Rome’s economy?
– The Edict of 301 was very bad for Rome’s economy. People no longer went to market because prices were so unreasonable. This increased the dearth, and many died.
Q8 – Lee claims that individuals could be “entirely independent of others” except for what? Explain.
– Individuals could be “entirely independent of others” except for scarcity. People have to interact with one another to get things they need and do not have. It is shaped by the rules of social conduct.
Q9 – Describe the dilemma concerning rules as discussed by Lee.
- Competition could be productive or destructive depending on the rules. If people were free to do whatever they wanted, the strong would overpower the weak, and their freedom would be gone.
Q10 – Why is the concept of private property crucial to freedom?
- Under the rule of private property, one person’s freedom can expand the freedoms exercised by all people. Private property makes it possible to allow people a large amount of freedom because the rule makes people accountable for the consequences of their decisions.
Q11 – Argue both pro and con that in his testimony Lawrence Reed was advocating compassion and aid for the poor.
- Lawrence Reed wasn’t advocating compassion and aid for the poor because he constantly brought up things such as welfare breaking apart families, and cost taxpayers a fortune. However, people could sense an amount of sympathy when he talked about things such as confiscatory tax rates driving the industrious and the entrepreneurial to other places or into other endeavors while impoverishing the many who would otherwise benefit from their resourcefulness.
Q12 – “If people are free, they will not earn equal incomes; conversely, show me a people who have equal incomes and I will show you a people who are not free.” Explain in your own words Mr. Reed’s meaning.
-If people were free, they could work hard and earn whatever income they thought best, or some people may not work hard and receive little income. So if incomes were all equal, that would take away the person’s freedom to better themselves.