Helping the Poor

This was extracted from Liberty Today, a national Libertarian Party publication.

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Helping the Poor

Libertarians want every able bodied person to be able to find work, to be self supporting. We also want the compassion all Americans share for the sick and disabled to mean something, to be effective.

The first step toward helping the poor and unemployed is to repeal all the laws and regulations which get in the way of people who want to work.

Minimum wage laws cause massive unemployment among the poorly educated, unskilled young, particularly minorities. Economists point out that nearly one-third of black teenagers are unemployed primarily due to the minimum wage law. Federal labor laws prevent people from producing certain products in their homes. Zoning laws prevent people from working at home. In Houston, which does not have zoning, the greatest opposition to zoning comes from poor people who run small businesses from their homes. Licensing and other regulations prevent people from offering their services as taxi drivers, hair dressers, nurses and in hundreds of other lines of work.

Day Care

Consider the mother who offers to care for the children of other working mothers in her home. She will run afoul of zoning, building, business, health, welfare, and who knows what other regulations. An effective, voluntary community solution will be shut down.

We must realize that the practical effect of all these laws regulating business is to stifle small business and employment opportunity. If we want to help the poor go to work, we must be willing to repeal all such laws.

Privatizing Welfare

Private charity works. Government welfare doesn't. In his 1984 book, Losing Ground: American Social Policy 1950 to 1980, Charles Murray reviewed all the major federal welfare programs and demonstrated that the groups they were supposed to help were worse off than before the government got involved. The people who benefit most from those programs are the well educated middle class folks who run them. Most of the welfare tax dollars go to welfare workers. So they naturally have an incentive to keep expanding the government welfare plantation. People on welfare are given a similar incentive to stay on rather than go to work and lose the benefits.

Government welfare is demeaning and intrusive. Recipients lose their right of privacy and tend to become apathetic and dependent.

There are thousands of private charitable institutions and groups like the churches and temples, United Way, Red Cross and others which do a much better job helping those who need it. Their overhead costs averages a low 10% of what they distribute to the poor. They tend to be much closer to the people and better understand the actual problems and how to solve them. Private charities are more concerned with helping people become self sufficient.

Saving Taxes

Government welfare costs hundreds of billions of tax dollars every year. Private charities raise over $100 billion per year in money and services from contributors who give voluntarily. If government were to get out of the charity business, taxes could be cut dramatically. That would help the economy and create jobs. Working people would have bigger paychecks every week. With the reforms suggested here, we would all be in a better position to exercise our compassion helping those we choose to help, working with other people in our own communities on real problems close to home. It wouldn't be a perfect solution to everyone's problems, but it would clearly improve on the mess the government has made.