“Bob Burg opens the floodgates to Fort Knox.”

~ Dottie Walters, Author, Speak & Grow Rich

Capitalism vs. Socialism – Understanding Premises, Part 4 (Welfare)

February 26th, 2009 by Bob Burg

(If you’re just joining this series, please read the previous installments.)

Welfare — Has it Helped the Poor? (Part 1)

Or, as Dr. Phil Would Say, “How’s That Working For You?”

Back in the early 1960’s, President Lyndon B. Johnson decided to wage a war on poverty. It was called just that; “The War on Poverty.” He claimed that, within two years, poverty, as we know it, would be wiped out. This would happen by government forcibly taking money from those above a certain income level and redistributing that money to people who were below a certain income level.

The intent was to give the poor a helping hand, leading them out of poverty, and onto a life of liberty, responsibility, and abundance.

Since most of us, as human beings, care about the plight of the poor and genuinely wish to help them, it probably seemed like a good idea at the time.

Yep, it seemed like a good idea at the time. Imagine; just two years … and poverty, as we knew it, would be all but wiped out in our country. Gone. History, No more. Vanquished.

Turn the clock ahead 50 years and what has the result been?

Let’s put it this way; the “War on Poverty” has been just about as successful as the “War on Drugs” … meaning it hasn’t been successful at all and — for all practical purposes — has only made things worse.

Yes, just $9 trillion dollars (that would be $9,000,000,000,000) later, we have just as many people in poverty per capita as we had back then, third and fourth generations of welfare recipients have grown up never seeing their parents bring home a paycheck, their self-esteem is all but shot, and many see no way out. No way out at all. In fact, they are all but trapped within the Welfare System.

Government bureaucrats, as I’m sure well-intentioned as most of them truly are, have a vested personal interest in keeping welfare alive and well. After all, that’s how they make their living. And, government’s rules and regulations on how private charity groups can operate (please understand, these groups are perceived by government to be their competition) have put many of these groups right out of business despite their excellent track records, and have discouraged many other similar groups from even trying. Not to mention, with so much of people’s hard-earned money going to Welfare via taxation, many people who would otherwise give abundantly to the poor will not do so, figuring that they’ve already “done their part.”

Quite simply, government needs to get out of the welfare business.

Does this mean we shouldn’t help the poor? Of course not! If you know anything about me, then you know the answer to that is, “We should definitely help the poor!” We should absolutely make and continue to make a concerted effort to help the poor, both in immediate and long-term assistance. However, the key is that “We” should; we the People, “we” as in individual citizens, groups, charities, etc. NOT government.

After all, we want to actually help the poor; not just “pay lip service” to helping the poor. And government — as is the case with most things they do — has done a terribly bad job at it.

Over the next several installments, we’ll look at how — by getting government out of a job for which they’ve proved to be unqualified (notice we haven’t even brought up that it is not within their legitimate Constitutional functions), and putting this extremely worthy task back into the hands of those who are much more qualified — we can truly make a difference in the “War on Poverty.”

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9 Responses to “Capitalism vs. Socialism – Understanding Premises, Part 4 (Welfare)”
  1. Bob- the core question and issue is this: WHO is responsible for the poor? What personal responsibility for their situation do they have? In many cases, people are poor because of their choices. I have seen this first hand when I worked in a soup kitchen. And those who wanted off of welfare, found that the system was designed to keep them dependent. It’s not a “leg up”.

    I also argue that God has charged people of faith – especially Christian and Jewish people with feeding, clothing and housing the poor – who can not care for themselves. In the Bible- it is not the government’s job, except in times of national disaster – like a worldwide famine.

  2. Bob Burg said at 9:05 pm on

    Hi Karen, Thank you for your input. I believe the key is that when government — an entity that is neither Constitutionally authorized, nor in any way proficient in the area of helping the poor — is removed from this situation, then individuals, organized groups of individuals (including religious organizations of various faiths), businesses and all others that are much better qualified to help those who truly cannot help themselves, will be the answer. It will also mean that taxes will be significantly lower, meaning that the already-generous American public will have even more disposable income to contribute.

    In a future installment, we’ll discus another way in which those who truly cannot help themselves will be helped . . . and in a manner that is efficient and actually helpful, instead of like the current government-run system we have today.

  3. Alice Flanders said at 1:04 pm on

    I totally agree. Especially the part about the bureaucrats keeping their job. As an example. Has anyone noticed that the severely handicapped “work” in jobs where they need helpers to accomplish the job. This makes jobs for many people. The much less severely handicapped (or differently abled if I am offending anyone) sit on welfare. For a lifetime. These are the people who used to tend the field, the children, the old folks and the handicapped. Now we are running out of money paying others to do these jobs while these people stay home. I began my life believing that it was my job to get out there and help these people succeed. Help them get off welfare. My father tried and failed and raised me to take over. I tried. I took families into my home. I provided homes for them. I learned a lot. The biggest lessons were that these people were very happy thank you. No help needed for them to succeed. If, however, I wanted to do and do and do for them. They would take it. some people will read this and condemn me, thinking I don’t understand. I do. alice

  4. Wes Hopper said at 4:47 pm on

    Great series, Bob. My favorite quote on welfare:
    “What tends to do away with poverty is not getting pictures of poverty into your mind, but getting pictures of wealth into the minds of the poor. The poor do not need charity, they need inspiration.” Wallace Wattles
    As you pointed out, the war on poverty created more of it, as one would expect. We now have 3 wars – poverty, drugs, terrorism – each with a large industry dependent on its continued existence. With that kind of a built in constituency it’s gonna be tough to end them. But we have to.
    Cheers to you for this effort,
    Wes

  5. David Faulkner said at 2:55 am on

    Bob,

    You hit the nail on the head, my friend!

    We must never forget that the difference between individual charity and government welfare is the gun that forces the redistribution!

    Thanks again for keeping this discussion going!

    -David

  6. Bob Burg said at 2:38 pm on

    Hi Wes, yes, that line out of Wallace Wattles, “The Science of Getting Rich” is powerful. The one area that I might amend is that there are times when we’ve still got to give that person a fish so he won’t be starving while he’s being taught how to fish. However . . . that fish should come voluntarily from individuals and groups of caring individuals; not by government fiat. Thank you for your comment. Great!

    David, you’re right; that gun IS the difference. And, while many would prefer not to think of it that way, since that is the the ultimate weapon should the individual not comply, that is indeed the actual threat.

  7. Thomas Groelau said at 2:26 pm on

    A most interesting series. I will be using your comments to discuss these issues with my (homeschooled) chldren. I was raised in the public school system and it has taken time to realize the true way of the world. I hope you will also be addressing the “education” system in this wseries as well, because it is key to changing perceptions about how we relate to our government and economy.

  8. bob burg said at 7:41 pm on

    Thank you, Thomas, I’m honored to know that you’ll be using these articles as part of your homeschool lessons. I have so much admiration for homeschooling and homeschoolers.

    The educational system will indeed be a topic of discussion a bit down the road. Thank you again!

  9. Cameron said at 11:16 am on

    Can you just be our next President? or maybe teach a class to our ‘representatives’ and whomever does not pass the final exam gets replaced with someone who understands and vows to uphold the Constitution as it was intended? :-)

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