Basic Economics: Milton Friedman- What’s Wrong With Welfare?: What The Purpose of Welfare Should Be

Other People's Money

Other People’s Money

Source: Basic Economics: Milton Friedman- What’s Wrong With Welfare?

Welfare becomes a problem when it puts the responsibility on government to take care of the people. And takes that responsibility and power away from the people. And I’ll give you an example of that. Let’s say there’s someone on Welfare Insurance which is money for people who are not only not working, but do have the skills to get themselves a job that they need to live independently and in freedom. So they collect Welfare Insurance which comes with cash, but also things like Food Assistance, Medicaid, Public Housing and other things. That people need to have their basic needs met. And Welfare becomes a problem when it tells people collecting Welfare that they no longer need to try to take care of yourself, because government financed by the people who do take care of themselves will take care of you. Govern,eat tells them that they’ll take that responsibility away from people and take care of them. When Welfare becomes a charity and is just in the business of meeting peoples’s basic needs for the people, then Welfare becomes a problem. Because instead of helping people get the skills that they need to take care of themselves, government will leave these people dependent on government instead.

The purpose of Welfare should be to serve as a social insurance system that people collect from when they need it. But not something they collect from indefinitely because as they are collecting this financial assistance, they are improving themselves and get the skills that they need in order to be able to take care of themselves. So as someone on Welfare is collecting cash assistance, Medicaid, food-assistance and so-forth, they are also involved in job training, education, job-placement. And if they have kids they are also getting assistance for childcare so someone is there to look after their kids as their kids parent or parents, are improving themselves so they can get a good job and be able to afford to take care of their kids well, have a good job, start making some real money and able to leave poverty all together. That’s what Welfare should be doing, empowering people who can’t to be able to take care of themselves. Having more people living in freedom and fewer people living off of public assistance bringing down our unemployment and poverty levels in this country and expanding the middle class.

Government can do good with other people’s money as long as they spend that money well so it benefits everyone. And Welfare can be an example of that if that money is use to have fewer people on Welfare and more skilled workers. And more customers with money to spend, more tax-payers which would allow us to bring down taxes on everyone. And more skilled workers and more people with money to spend which is better for business’s and everyone involved.

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About Ederik Schneider

Blogger on a whole host of subjects.
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