That Stimulus Sickness

EVERYBODY now knows what happens when the government decides to give everyone “affordable housing.” It takes a while, but eventually it takes down the whole financial system. That’s because, Virginia, when worthy Democratic voters that don’t pay their bills get mortgages, banks and Fannies and Freddies end up with toxic assets and nobody knows if they are worth anything..

So now our Democratic friends are proposing to stimulate the economy with a spending bill that, wait for this, increases the subsidies for health care. That’s according to the Wall Street Journal edit page.

The more we dig into the pile of spending and tax favors known as the "stimulus bill," the more amazing discoveries we make. Namely, Democrats have apparently decided that the way to gun the economy is to spend even more on health care.

The intriguing thing about all this is that experts now agree, both from the left and the right, that life-style is the key ingredient in health and life expectancy. This means that when the government increases the subsidy for health care they are gunning the engines on the national cigarette boat. So now we are heading towards the sound of the next big economic waterfall, the point at which government will have to cut back on health care, even faster than before.

The provisions are innocent enough. The Feds are going to increase the federal share of Medicaid reimbursement. They are going to offer Medicaid to the unemployed. They are going to subsidize Cobra benefits for people laid off. This is all very compassionate and thoughtful. Except for one thing:

When you subsidize people not to work, you get more nonworkers.

That’s the problem with the whole welfare state. People work because they have to. They work for food, for housing, for health care, for transportation. When the government subsidizes it then more and more people, especially the low-skilled, low-paid, decide against work. You can’t blame them. Who would work unless they have to?

We’ve been saying here for a while that the only way we are going to reform the welfare state is after it “hits the buffers.” We have mixed feelings about this. Good people, ordinary people are going to be hurt. And even people that never gave into the temptation of the welfare state are going to be hurt.

On the other hand, if you believe that “free” health care or “free” education isn’t going to cost you in the end, we’ve got a bridge we want you to look at.

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Christopher Chantrill blogs at www.roadtothemiddleclass.com. His Road to the Middle Class is forthcoming.

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Action

The incentive that impels a man to act is always some uneasiness... But to make a man act [he must have] the expectation that purposeful behavior has the power to remove or at least to alleviate the felt uneasiness.
Ludwig von Mises, Human Action

Chappies

“But I saw a man yesterday who knows a fellow who had it from a chappie that said that Urquhart had been dipping himself a bit recklessly off the deep end.” —Freddy Arbuthnot
Dorothy L. Sayers, Strong Poison

China and Christianity

At first, we thought [the power of the West] was because you had more powerful guns than we had. Then we thought it was because you had the best political system. Next we focused on your economic system. But in the past twenty years, we have realized that the heart of your culture is your religion: Christianity.
David Aikman, Jesus in Beijing

Churches

[In the] higher Christian churches� they saunter through the liturgy like Mohawks along a string of scaffolding who have long since forgotten their danger. If God were to blast such a service to bits, the congregation would be, I believe, genuinely shocked. But in the low churches you expect it every minute.
Annie Dillard, Holy the Firm

Civil Society

“Civil Society”—a complex welter of intermediate institutions, including businesses, voluntary associations, educational institutions, clubs, unions, media, charities, and churches—builds, in turn, on the family, the primary instrument by which people are socialized into their culture and given the skills that allow them to live in broader society and through which the values and knowledge of that society are transmitted across the generations.
Francis Fukuyama, Trust

Class War

In England there were always two sharply opposed middle classes, the academic middle class and the commercial middle class. In the nineteenth century, the academic middle class won the battle for power and status... Then came the triumph of Margaret Thatcher... The academics lost their power and prestige and... have been gloomy ever since.
Freeman Dyson, “The Scientist as Rebel”

Conservatism

Conservatism is the philosophy of society. Its ethic is fraternity and its characteristic is authority — the non-coercive social persuasion which operates in a family or a community. It says ‘we should...’.
Danny Kruger, On Fraternity

Conservatism's Holy Grail

What distinguishes true Conservatism from the rest, and from the Blair project, is the belief in more personal freedom and more market freedom, along with less state intervention... The true Third Way is the Holy Grail of Tory politics today - compassion and community without compulsion.
Minette Marrin, The Daily Telegraph

Conversion

“When we received Christ,” Phil added, “all of a sudden we now had a rule book to go by, and when we had problems the preacher was right there to give us the answers.”
James M. Ault, Jr., Spirit and Flesh

Democratic Capitalism

I mean three systems in one: a predominantly market economy; a polity respectful of the rights of the individual to life, liberty, and the pursuit of happiness; and a system of cultural institutions moved by ideals of liberty and justice for all. In short, three dynamic and converging systems functioning as one: a democratic polity, an economy based on markets and incentives, and a moral-cultural system which is plural and, in the largest sense, liberal.
Michael Novak, The Spirit of Democratic Capitalism

Drang nach Osten

There was nothing new about the Frankish drive to the east... [let] us recall that the continuance of their rule depended upon regular, successful, predatory warfare.
Richard Fletcher, The Barbarian Conversion

Education

“We have met with families in which for weeks together, not an article of sustenance but potatoes had been used; yet for every child the hard-earned sum was provided to send them to school.”
E. G. West, Education and the State

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