May
15

Social Programs Create Their Own Demand for Social Spending by Perpetuating Dependence

By Capitalist in Chief

Social programs create their own need and demand for the very services they provide. Here are a few examples:

  • Social Security – Since people know they would be receiving a social security check upon retirement, they are less likely to fully save for it on their own. Why would they? It would be completely self defeating to save for a portion of your retirement if you know it’s going to be covered by the government.
  • Child Welfare Payments – If a mother on welfare receives additional money for every child born, why wouldn’t she have more children, costing the taxpayer even more?
  • Unemployment Benefits – Unemployment benefits decrease the motivation for someone to save and plan for job loss. Why would anyone want to save for 6 months of expenses if given unemployment benefits, they can do with 3? In addition, studies show that job search efforts decrease with increasing generosity of unemployment benefits, and recipients of unemployment benefits tend to step up their efforts as those are about to expire.

Therefore, social programs create more people who need and rely on the government, leading to further demand for social spending. And if you try to cut those programs, then you’re just a big old meanie, because what are old people to do, what are welfare mothers to do, what are the unemployed to do, etc.

However, the very existence of social programs is responsible for much of the need for them.

This self-inflating positive feedback loop, creates a constant pressure for increases in social spending. And you can never spend enough because the more you do, the greater the need to do so becomes.

This leads to an ever expanding class of people who depend on the government for their livelihood. And this situation is just perfect for socialist politicians, because more government dependence means more votes for the politicians who promise to preserve the benefits.



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