Last month, newly elected Congressional members made their way to Washington, bringing with them high expectations and the promise of a centrally planned, democratic economy that aims to usher in a new age of prosperity. However, rather than focusing on optimism for the future, this Congress seems more inclined to reflect on the disappointments of the past.
In 1875, Karl Marx proclaimed, “From each according to his ability, to each according to his needs.” Echoing this sentiment, the current Congress introduces a revised declaration: “No shirker left behind.”
To fulfill this ambition, laws of economic gravity and arithmetic will have to be swept away by legislation. House Democrats, alongside a significant number of House Republicans, are all too eager to oblige. After all, for voters, the intricacies of debt and deficit often appear inconsequential.
Politicians understand that to win elections and maintain their positions, they must offer promises of free benefits. A politician advocating cuts to Social Security and Medicare risks losing public support quickly. Voters may claim to prefer a smaller government, but in reality, they are drawn to candidates providing enticing handouts through the visible mechanism of government support.
Interestingly, many individuals, dedicated and hardworking, genuinely wish to earn their livelihood rather than rely on government transfers. Nonetheless, they seldom question the concept of government-directed employment; in fact, they often embrace it.
The Purpose Driven Life
The reality of public finance never stands a chance against the tantalizing fantasy that borrowing and spending can restore prosperity. Enthralled by discussions of the latest “New Deal” initiatives—be they green or otherwise—many are captivated by visions of high-paying jobs and a comfortable lifestyle characterized by workfare. What’s not to admire?
Large programs and expansive budgets attract jobs that many market-driven positions may lack. These government initiatives promise not only stability but also a loftier sense of purpose.
The appeal of consistent working hours, regular paychecks, paid vacations, health insurance, and retirement plans entices many, especially when framed as a noble cause, such as combating climate change. These positions are championed as important roles for qualified individuals, often holding university degrees.
A life imbued with purpose is undoubtedly fulfilling, particularly one fueled by enthusiasm and dedication to a public enterprise. Larger projects—such as constructing railway systems across oceans, establishing solar farms, and producing subsidized electric vehicles—typify a government-driven economy. Within these grand schemes exist numerous office jobs where teams of workers contribute to the greater good while sipping endless cups of coffee and analyzing spreadsheets.
Here’s the crux…
The Great Workfare Era Is Here
Jobs produced through government-directed workfare require a substantial misallocation of resources for their survival. This means that billions must be borrowed—or outright created—and funneled into areas that the market does not support. Simply put, these jobs cannot sustain themselves through their own contributions.
Most people know that a tomato is classified as a fruit, yet many wouldn’t include it in a fruit salad. Similarly, a major distinction is often overlooked regarding productive work versus workfare jobs among government officials and employees.
Workers who rise early with energy and enthusiasm might give the impression of productivity. However, if they’re heading to workfare positions, their efforts are not generating wealth; rather, they are draining resources. Workfare jobs thrive on deficits and currency devaluation.
Moreover, extensive debt-driven stimulus initiatives have a hidden downside. Much like welfare programs, workfare creates a vast dependency class reliant on government support for their livelihoods. When funding ceases, they are left vulnerable.
We are currently on the brink of what could be a significant economic default. The new Congress seems intent on pushing us toward a fate adorned by grand government programs and stimulus—one that garners bipartisan support.
Indeed, the great workfare era has arrived. Like all schemes built on unsustainable foundations, it is destined to end in disappointment.
Sincerely,
MN Gordon
for Economic Prism
Return from The Great Workfare Era Is Here to Economic Prism
