Need and Demand: Need and demand are not just short-term influences on the economy. Some policies create need and demand undercurrents that can take decades to culminate in an overall result, like the 2008 housing bubble crash which originated with policies created in the 1970s. Other policy influences can work on a continuing basis under the radar for decades, like the so-called War On Poverty which began in the 1960s and has undermined prosperity for the past 50 years.
Premise: Since creeple created the Great Society welfare programs of the mid 1960s, 22 trillion dollars has been spent on the so-called War On Poverty. In other words $22T of taxpayers money has been spent on need. Because those in need pay little in taxes the $22T came mostly from those who produce demand which produces prosperity. Now, no doubt redistributing that $22T will have freed up money from those who received it to produce some demand, but certainly not nearly as much as if that $22T had been left in the hands of those it was taken from. In effect, there has been a net loss of demand, and therefore, a net loss of prosperity over the last 50 years.
Has it been worth it? In 1959 the so-called poverty rate was 22.5%. When the War on Poverty was initiated in 1964 the so-called poverty rate had decreased to 19%. So, previous to the War On Poverty the rate had dropped 3.5% in the previous 5 years. (The proverty rate was already in a steep decline. The War On Poverty was completely unnecessary.) Now in 2014 at the 50 year anniversary of the War On Poverty the rate is 14.5%. So, in the 50 years since the beginning of the War On Poverty the rate has fallen 4.5%, while in the previous 5 years to the beginning of the War On Poverty the rate had dropped 3.5% without the government having to spend on need with War On Poverty programs.
Question: Again I’ll ask you, has the War On Poverty been worth it?
Conundrum: $22T over the last 50 years has been sucked out the marketplace and spent on need that could have been left in the marketplace and used to create demand. Prior to the beginning of the War On Poverty no money was being removed from the marketplace and then spent by the government on need, and yet the poverty rate was dropping at a rate of 0.7% per year. In the 50 years of the War On Poverty after spending $22T on need the rate has dropped at measly 0.09% per year by their own measure.
[This $22T was spent as a result of paranoia (and deception). Not spending that $22T would have allowed for less poverty and more prosperity, but creeple tricked sheeple into fearfully demanding that government should massively manipulate the marketplace.]
Explanation: Since the poverty rate was falling at a rate of 0.7% per year previous to the War On Poverty, and has only fallen 0.09% per year since the War On Poverty, it is elementary to conclude that the War On Poverty has been a complete and utter failure. The War On Poverty was not necessary in the first place. It is in fact more likely that the poverty rate has fallen only despite the War On Poverty.
Conclusion: Using welfare and all related big-mommy government programs to supposedly fight poverty does not work. And they were never meant to work. President Johnson let the cat out of the bag when he admitted, “I’ll have those niggers voting Democratic for the next 200 years.” Creeple manipulate. The majority of the 4.5% improvement in the poverty rate is as a result of poor whites moving into the middle class. African Americans and other minorities comprise almost all of the poor today. Essentially, the Great Society welfare programs were created to purchase the votes of black Americans while they agree to remain in poverty and enslaved to the government. So far so good. American blacks are what Malcolm X called “chumps” of the Democratic Party.
Need and Demand: Non-productive entitlement welfare and all related programs like Food Stamps (extreme need) are never going to create demand the equivalent of what was lost by taxing that money away from those who would have produced demand with it. The War On Poverty has been virtually established as a permanent fixture in America so that now the American economy must perpetually drag around this ball and chain while attempting to produce prosperity – a $22T ball and chain in the last 50 years and more trillions in the future if it is not ended.