Why the Welfare Crisis?
Almost everyone, regardless of ideology, agrees that there is something terribly wrong with the accelerating, runaway welfare system in the United States, a system in which an ever-increasing proportion of the population lives as idle, compulsory claimants on the production of the rest of society. A few figures and comparisons will sketch in some of the dimensions of this galloping problem.
Burdens and Subsidies of the Welfare State
Does the modern welfare state really help the poor? The commonly held notion, the idea that has propelled the welfare state and maintained it in being, is that the welfare state redistributes income and wealth from the rich to the poor: the progressive tax system takes money from the rich while numerous welfare and other services distribute the money to the poor. But even liberals, the great advocates and abettors of the welfare state, are beginning to realize that every part and aspect of this idea is merely a cherished myth.
What Can Government Do?
What, then, can the government do to help the poor? The only correct answer is also the libertarian answer: Get out of the way. Let the government get out of the way of the productive energies of all groups in the population, rich, middle class, and poor alike, and the result will be an enormous increase in the welfare and the standard of living of everyone, and most particularly of the poor who are the ones supposedly helped by the miscalled “welfare state.” [p. 163]
The Negative Income Tax
Unfortunately, the recent trend — embraced by a wide spectrum of advocates (with unimportant modifications) from President Nixon to Milton Friedman on the right to a large number on the left — is to abolish the current welfare system not in the direction of freedom but toward its very opposite. This new trend is the “guaranteed annual income” or “negative income tax,” or President Nixon’s “Family Assistance Plan.” Citing the inefficiencies, inequities, and red tape of the present [p.
Chapter 7: Education
Public and Compulsory Schooling
Until the last few years there were few institutions in America that were held more sacred — especially by liberals — than the public school. Devotion to the public school had seized even those early Americans — such as Jeffersonians and Jacksonians — who were libertarian in most other respects. In recent years the public school was supposed to be a crucial ingredient of democracy, the fount of brotherhood, and the enemy of elitism and separateness in American life.
Uniformity or Diversity?
While current educationists do not go as far as the Ku Klux Klan, it is important to realize that the very nature of the public school requires the imposition of uniformity and the stamping out of diversity and individuality in education.
Burdens and Subsidies
The very existence of the public school system, furthermore, involves a complex network of coerced levies and subsidies, all of which are difficult to justify on any ethical grounds whatever. In the first place, public schools force those parents who wish to send their children to private schools to shoulder a double burden: they are coerced into subsidizing public school children, and they also have to pay for their own children’s education.
Higher Education
With the exception of the effects of compulsory attendance laws, the same strictures we have levelled against public schools can also be directed against public higher education, with one noteworthy addition. There is increasing evidence that, certainly in the case of public higher education, the coerced subsidy is largely in the direction of forcing poorer citizens to subsidize the education of the wealthier!
Chapter 6: Personal Liberty