The Entitlement Society – Definitely Not a Solution to Poverty

Written by William Pauwels on August 21, 2018

In their desire to alleviate the poor and less fortunate in the USA, it is unfortunate that the Entitlement Democrats rarely emphasizes the primary cause of poverty, i.e., the lack of employment and productivity of poor people in our free market, free enterprise, free trade, competitive, constitutional, law-and-order economy. And this is happening even while there is an acute shortage of workers in our booming economy.

The Entitlement Democrats emphasis is almost always on the redistribution of wealth from those who’ve earned it and own it – to those who don’t. They usually propose higher tax rates and some have even suggested a high of 90%! Trump has done the opposite by reducing taxes and business-inhibiting regulations.

Needless-to-say, a safety net for those who cannot provide for themselves is necessary and justifiable. However, long term government handouts to able bodied citizens is a mistake that only encourages sloth and the loss of self-esteem and happiness.

The prosperity of a nation and its people comes from work, entrepreneurial effort, investment, specialization, trade, law-and-order, personal property rights, honest government, proper use of time, and competitive, free enterprise. By deploying these factors – by its development of the American-Way* (See below) – the United States has achieved the highest standard of living, for the greatest number, in the history of the world.

When necessary, Democrat-Entitlements for the poor have only a short-term, transitional, positive effect. In fact, over time they enhance strategic poverty by encouraging dependency and sloth.

While most people understand these fundamental laws of economics – these cause-and-effect relationships – it is discouraging when highly intelligent Entitlement Democrats fail to rise above their parochial understanding of the basic causes of poverty and prosperity.

Obama, Hillary Clinton, Chuck Schumer, Nancy Pelosi, Elizabeth Warren, Bernie Sanders and their fellow Entitlement Democrats often speak in disparaging terms about businessmen/women and their profit motive. They say businesses should be focused on job creation for the poor. Frankly, that’s the wrong emphasis. Businesses should focus on serving the needs, wants, and expectations of customers and clients – at a profit (surplus for “non-profits”). Without profit and/or surplus, the funds are not available to foster growth, entrepreneurialism, jobs and strategic prosperity. Fortunately, Pres. Trump and the Republican Party fully understands this and are acting to foster one of the biggest job booms in American history.

For a clear understanding of its causes and effects, read The Poverty of Nations – A Sustainable Solution by Dr. Wayne Grudem and Dr. Barry Asmus. In plain understandable English these Christian scholars explain the economic, sociological, political, Biblical, and leadership factors that account for poverty and prosperity – and that have a strategic positive effect in our country and throughout the world.

*The American-Way ― *The American Prosperity Machine: Traditional Judeo/Christian principles and values . . . the right to life, liberty, and the pursuit of happiness . . . freedom of speech, action, religion and family governance . . . an educated and informed society . . . freedom from gender and racial discrimination . . . affordable healthcare . . . the rule of Constitutional Law . . . the peaceful settlement of disputes . . . honest elections and presidential and congressional leadership . . . patriotic, truthful, checked-&-balanced, limited government . . . a strong military . . . cost-effective national defense . . . secure borders . . . the right of citizens to own and bear arms . . . free, competitive markets and institutions . . . properly-regulated free-enterprise . . . balanced trade . . . private property rights . . . low cost, domestically supplied energy and natural resources . . . controlled immigration . . . individual responsibility and ingenuity . . . entrepreneurialism . . . businesses and enterprises that exist to meet the needs, wants and expectations of customers, suppliers, employees, and communities . . . a strong work ethic . . . full employment . . . fair pay . . . appropriate safety nets . . . low taxes . . . a strong, reliable currency . . . financial availability, mobility, and responsibility (balanced budget, minimal debt) . . . Competitive, Free-Market, Free-Enterprise, Constitutionally Limited Government . . . and American Exceptionalism.

In God we must trust . . . but we must always do our part – to secure and promote the truth and a better way – to protect our freedom and interests – and to defend the Judeo-Christian American-Way.

Image: CCO Creative Commons; Excerpted from:

William Pauwels
William A. Pauwels, Sr. was born in Jackson Michigan to a Belgian, immigrant, entrepreneurial family. Bill is a graduate of the University of Notre Dame and served in executive and/or leadership positions at Thomson Industries, Inc., Dow Corning, Loctite and Sherwin-Williams. He is currently CIO of Pauwels Private Investment Practice. He's been commenting on matters political/economic/philosophical since 1980.