Tx. Sometimes it seems like all freepers are just ‘bad-the-fed’ types, but my thinking is that we’re just hearing from the noisy ones. Reality is that there’s a lot to it and the fed’s actual role is minimal.
People that don't work for their money hurt overall production. Normally money is earned and then spent to either raise more money or to increase standard of living. In a re-distribution society that money does neither.
In the short term some builder will make money on the building of public housing but nobody will make money on the rent or upkeep of the housing. The money given to the re-distribution recipients will be spent on food, drugs and others that add little to the economy.
Adding to the economy means something produced not something consumed. When most workers consume something they actually produce more than they consume. The “extra” may go into a bank account or some other savings such as the stock market where the money is used to produce “things”. These “things” make life better and earn the investor more money to either invest or consume.
To governments its all about consumption. They figure if people spend money then the economy is good but it takes more than that and when the government prints fake money it simply means that the rest of us will have to spend more of our money to get what we want and that leaves less for investment and therefore less creation of new “things”.
Governments can spend money that helps growth by spending on infrastructure which enhances everyone’s ability to produce more.
Welfare spending hurts an economy in many ways. If people don't get free food and housing then they are willing to work for less, that promotes more production. When people don't get free stuff and they are already working for less than they think they are worth then they try to make themselves more valuable by learning a skill or being good at what they do so they can get a promotion, both raise production.
In our society we are killing our economy by allowing our government to make too many monetary decisions that are adverse to the health of our economy.
I remember that in the 50’s we spent 75% of the budget on defense spending. Now it is only 24% but 65% goes to re-distribution. It is unsustainable.
FTFY