Friday, May 28, 2004

Welfare system - whose welfare?
The expansion of the so-called "welfare system" in Western countries is a remarkable phenomena and really a good example of how things should not evolve. This system is designed to do what? Yes, help those who for some reason can't help themselves, whether it's for a short period (the unemployed, the temporary ill or the mentally down) or a long period (the critically ill, the mentally challenged or the permanently handicapped). This, of course, has been a function which people have carried out without government interference for a long time. The Red Cross was founded by kind-hearted people and funded by kind-hearted people. Charity-hospitals have existed since hospitals in general have existed. Volunteer-work to help those who need help plays an important role in many peoples lives in many countries. We buy lottery-tickets and donate money on regular basis to support some good cause. But why all this government getting in the way?

Before Word War I and II, governments in Western countries were more or less small and had very limited but important jobs of protecting human rights and upholding the law. But with many years of bad economic-control and a number of hugely expensive wars, this changed. This is especially true for World War II which more or less crippled most of the major-economies in the world. Here is a little summary in that respect. Governments found themselves with destroyed markets and had to take some action. Some, like Germany, followed the guidance of free-market promoters like Hayek and Mises and quickly recovered. Free-trade alliances were formed between "friendly" countries during the Cold War and created large wealth and huge prosperity, while others hung on to socialistic means and showed good results in the short run, but devastating ones in the long-run. We all remember the Soviet Union don't we?

But although the free-market was given space to create prosperity and longer and better lives, most countries made the mistake of holding on to their "temporary" welfare-systems, and those systems continued to grow and continue still. The result is that countries like Sweden, which started out good, have now declined in huge steps, and even in Sweden the socialists have been forced to swallow their pride and privatize many of the governments functions to allow for some forward-movement.

Now the situation is that the public welfare-system in most Western countries is in fewest cases helping those who really need help. Do we want to help people educate themselves, have good health, get good jobs and stand on their own feet? Yes, I would think so. But does that happen by allowing the government to hold most of the major functions in society in its grips? No. Not at all. But why is that the case then? It's because what started out as a small-scale temporary means of getting back on track after years of devastating wars and failed government-economic control has now resulted in an over-grown ever-thirsty government blackhole which sucks in the time and energy of everyone, so that everyone is in need of help.

The situation is bad. It's bad for those who really need help, and it's bad for those who are forced to hand such a large share of their income to the government that they become needy of help. Every day we are told that the government needs to fund this and support that. We should ignore such lies, and better yet, demand that the government does less and focuses on doing well what it does now. That's the only welfare most of us need - the welfare of being left alone until proven in need for something else.

No comments: