Maggie's Farm

The very good Whittle video we posted this morning revealed that government in the US provides an average of $65,000 annually  in funds, "benefits," and entitlements to poor families in the US. (Little or none of this is counted as income in calculating US poverty stats, as far as I know, nor, of course, does it take into account off-the-books cash income which seems pretty common these days.)

That's roughly the yield of a $2 million trust fund invested at a safe 1-3%, if my assumptions are correct. It's not a hard sale to convince people to vote for their own $2 million trust fund delivered by magic unicorns.

(The current fad for easy Disability and food stamps - anybody can get these things right now and I receive calls daily asking me whether I do Disability forms - is a whole new arena for free stuff, but a different topic. No, I do not do Disability forms on principle because I believe everybody is capable of dignity and self-respect. Speaking of cash, I have been offered good hard cash to fill them out for people in the last couple of years. On the phone "Doc, I'll pay you $1000 cash to complete my form for me.")

I have had plenty of experience with trust fund people, and am even fortunate enough to be the recipient of a very modest one myself, far less than $2 million in capital due to generational dilution. While some use their trust fund luck for productive purposes, many, it seems to me, lead relatively unproductive if not decadent, purposeless, and unstructured lives. People with meaningfully-sized trust funds, and families on the dole, have more in common with eachother than either has with the middle class.

As we often say here, real life is scary and challenging for almost everybody else. I am not convinced that that is a bad thing. It's the nature of real life and helps bring out the best in us. People spend money for lottery tickets just to enjoy the momentary fantasy of security and ease. Security and ease are infantile fantasies in this world which presents one problem after another.

Here's a piece on the psychology of dependency which echoes some of my own views: Infantilizing Leftist Morality

Progressivism, in the Marxist and post-Marxist forms that have been swallowing the world for a century, is, in its methodology, nothing but the moral infantilization of mankind. It seeks the establishment of a population dominated by the childish fear of facing the world alone. Its pretty slogans are all variations on this theme. From "Workers of the world unite" to "It takes a village," the message is always the same: you can't face this "dog-eat-dog" world without the safety of the herd, which means without material security provided by political force. An all-powerful mother government must always be there to protect you from the ever-present monster, which is just life itself. And such security is not "charity"; it is your right. You are entitled to it, as any child is entitled to his parents' protection.

Today's ever-expanding "entitlement mentality" is literally shamelessness elevated to the status of a moral code. Progressivism has created an entire euphemistic vocabulary to justify the unabashed demand that others sacrifice their liberty to save me from my childish fear of facing life as an adult. "Positive rights," "social justice," "redistributive justice," "creative individuality," and so on, are all part of the leftist lexicon of cowardice.

Read it all. My view is that every American kid is born with a trust fund: their body, mind, soul, opportunities, and the remarkable free culture at hand. Amazing gifts which are rare on this planet. With all of that, nobody needs to lead a life which wastes his talents and capacities, or neglects his spiritual development.

I should add that I have no problem with trust funds per se (and have doubts about the whole idea of inheritance taxes too, which hit small family farms and businesses but never the very wealthy. America should welcome and ecourage family wealth-building, which reduces dependency). Similarly, I have no problem with the safety net for the very poor and/or dysfunctional. I do find it remarkable that American poverty benefits net out higher than the average American worker's income, which, like a good-sized trust fund, can be a perverse incentive for the weak in spirit. That's a shame, but people make their choices and not all Americans, unfortunately, have absorbed the American "Can Do" attitude.

Governments are marketing the "You Can't Do" attitude. It sells.