The Unintended Consequences Of Government Intrusion
by Stephen Poschmann
Every time the media relentlessly hypes a troubling news story or worrisome trends, it becomes the latest crisis. As a result of the crisis of the moment, there is always a great hue and cry (usually fueled by the media) for the government to do something. And what does government do in response to such calls? Government, that omnipotent busybody, invariably creates new laws and policies intended to help solve the problem. Rarely, do the new policies actually solve problems. It is far more likely the government will make matters worse or create new problems.
Ethanol is a bio-fuel made from corn and other grains. Environmentalists hail it as a tool for fighting the crisis called global warming. The argument is that it reduces carbon dioxide emissions. So now, thanks to a new government policy, ethanol production has been mandated to increase from 6 billion gallons a year to 36 billion by 2022. What will result from this? Well, for one, carbon dioxide will not go down as anticipated; it will go up. Why? We need more farmland to grow corn, which will lead to a dramatic increase in deforestation. Not very green is it? In other words, it means the removal of forests that would have naturally removed the carbon dioxide from the atmosphere. And, I think by now, we’ve all heard about and seen the spike in food prices, which will only continue to go up. When 28 percent of U.S. grains are being used in the creation of fuel instead of food, thereby diminishing the grain available for food production—while developing nations like China and India are demanding more food—food prices can only wildly inflate. What’s worse is that the government is subsidizing this boondoggle using your tax money. One has to ask: if ethanol makes so much sense, why does the government have to subsidize it or pass laws mandating its consumption?
Aid To Families With Dependent Children (AFDC), commonly known as “welfare”, was a federal program in place for sixty-two years beginning under FDR’s New Deal. All nanny-state laws and programs are initiated with the best of intentions, but how could the government allow this incredibly flawed program to continue for over sixty years? It is as if the program was conceived as a cruel joke on the nation. AFDC may have been intended as a temporary hand-out, but it had the effect of keeping recipients on the government dole permanently, even passing from one generation to the next. Because the benefits came with an open-ended timeframe and very little pressure to find work, the program incentivized recipients to remain on welfare. Besides, the welfare payments were more money than the recipients would earn from an honest entry-level job. What may have been the most insidious feature of this program was the effect it had on the families in the inner city (and the ultimately the entire nation) due to the impact of its policy on child birth. The program encouraged childbirth due to the additional and prolonged monetary benefits that would result, especially for single mothers. The result was generations of large fatherless families living in inhospitable environments, no male figure, little discipline and plenty of negative outside influences. The increase in violent crime since AFDC was implemented tracks remarkably with the increased rate of illegitimacy over the same time period. The Republican-led House and Bill Clinton reformed welfare in the 1990’s, but, unfortunately, the effects sixty years of welfare has had on society have been irreversible.
The list big government failures can go on and on. With the many societal and economic challenges unfolding in today’s world, politicians will promise big government solutions to each one of them, often (as with ethanol) running counter to the law of supply and demand. We will be assured that all will be better if we just vote for this person or get behind that government policy. But, just remember, government rarely fixes problems. Government is rarely the answer.
In the words of Ronald Reagan, “The most terrifying words in the English language are: I’m from the government and I’m here to help.”