Welfare & The Republican Party

CandA · Site Admin Joined: 08 Mar 2008 Posts: 22

The Democratic party is widely considered to be the compassionate, benevolent political party, in contrast to the GOP, which is seen as the proxy of corporate interests and the rich. As Democrats are typically proponents of government welfare programs and direct aid to the less fortunate, they have developed a reputation as humanitarians. While these efforts do in deed provide some benefit to the needy, economically they cause more harm than they do good. Republican fiscal policy, although commonly regarded as favorable only to the wealthy, in fact, promotes the general welfare of the low and middle income classes much more effectively, albeit indirectly.

The Democratic approach toward promoting the welfare of the American public is a sort of forced charity, a policy of redistributing wealth from the rich to the poor. The Republican approach is to implement measures and adopt policies which facilitate saving and investment (i.e. a low capital gains tax). Saving and investing provide the capital needed to create and expand businesses. A direct result of this activity is the creation of the jobs needed to run these new and expanded businesses. Key to promoting public welfare is the creation of jobs. Under a redistributive system, the capital needed to fund this expansion is spread thin, diluting its economic power.

Consider this:
If you had three million dollars, you could redistribute it across America, or you could invest it. If you chose the former, each person in America would receive less than one penny each. Not enough to change anyone's life and certainly not enough to lift anyone out of poverty. On the other hand, if you chose to invest that $3,000,000, you could create jobs in one of three ways. One, you could start a business, directly creating the jobs needed to run it. Two, you could invest in another business, providing it with the capital needed to expand, which would in turn result in more jobs. Finally, you could put the money into a savings account, providing the banking system with capital needed to grant business loans, which, as was already explained, will result in increased jobs. These jobs certainly have the potential to lift many people out of poverty.
The point illustrated by this example is simple: The further a sum of money is spread, or redistributed, the further is its power to benefit the less fortunate lessened.