Before I went to the fifth week of Biblical Principles of Government, I had the big task of reading the constitution. There are two main ways to control government, and frankly many other things. One is to give it a to-do list, and make sure that the government doesn’t do anything that’s not on the to do list. Two is to make a list, a very long list of things the government can not do. Guess which one will be shorter? The to-do list. And a to-do list the constitution is. However when the constitution was presented, some people didn’t think it was enough. They wanted wanted to make a list of things the government can’t do. So the first 10 amendments of the constitution are what’s called the bill of rights. The bill of rights are a list of things that the government cannot do. So we have a list of things a government should do and a list of things a government should not do on the constitution. While the bill of rights is not necessary, it is not a bad thing. Now the government in the United states has overstepped it’s authority. For example, have you heard of executive orders, the orders that the president make? Well many presidents have used it to make laws, republican or democrat. However it is unconstitutional for a president to use executive orders to create laws.
Now back to economics. There are two economic systems the free market and socialism. In a free market, everything is voluntary. There is not interference from the government. So if you want to work for someone for $1 voluntarily then you can. The basis of the free market is, no one trades if they don’t see value in it. With socialism there is a lot of government interference. The government decides what that thing sells for. You can’t work for that guy for $1. And there are many involuntary transactions both ways. From rich to poor or poor to rich. The basis of socialism is that the government measures value. But the thing is, there is no certain measure of value. If you pay $30 dollars for a pair of shoes it could be worth it or not worth it. You could have hundreds of pairs of shoes and those shoes could still be useful. Or you could have two pairs of shoes and not be satisfied with the deal. We have some degree of socialism if either of these two things exist.
- Government control of capital
- Forced redistribution of wealth
Is the government taking from the rich and giving to the poor? Yes. Is the government taking from the poor and giving to the rich? Yes. Does the government have control of capital? Definitely. So what about communism? Communism is when the government owns capital.
Obviously I think socialism is wrong, but why? So imagine there are ten families on an island in the middle of nowhere. They have tried using currency but it hasn’t worked. So one of them says “let’s try out socialism.” So they try it. There are ten families, each family works ten hours, and each family makes one of whatever they are making each hour. At the end of the first day everybody puts all their products in the middle and everybody takes 10 things home. The next day one guy and his family gets smart and says “I’m gonna rest during the hottest hour of the day.” So that night everybody gets together, but now there are only 99 things in the middle. For the sake of socialism they grab 9.9 of the things in the middle each. That family worked one hour less but got 0.9 units more. The next day another family says “Well if they can rest so can we.” So now there are two families making 9 units a day and eight families making 10 units a day. So that night there are 98 things in the middle. Everything is split up and everybody gets 9.8 things. That second family gets 0.8 units more for one less hour of work. You get the point. Eventually everybody’s gonna get smart and think about their personal gain. However the more who rest the less is produced. You see that island of people will starve to death because of socialism. Unless that is they are forced to work.
There are two types of economic losses. Motivational losses, A sort of “why work” thing in which there are two types. Working people who lose their hard earned rewards. And lazy people who won’t bother to work because they are being provided for by the hard working. For example the island happen to notice that a family is better off then the rest of them, they will take some from that family and give it to the family that is not that well off. However if that family continues to be well off they won’t just let their produce be taken from them, so they hide their assets. And on the flip side there will also be people pretending to be poor so they gain more. Because of this the island decide to have one person take some from the well off and give to the not that well off. Which brings is to our second economic loss, distributional loss. That family that is now distributing wealth is not working anymore. The less of something there is, the more it will cost. So now the poor family can’t buy anything because everything costs a lot more. And if you think that the distributional loss is only so great because the island has only ten people. Our current government has about 25% of it’s workers distributing wealth. If those people were to get jobs and make things everything would cost 30% less. Socialism is causing poverty. Because our government has so many people that could be doing something else, working distributing money. Everything costs a lot more for the lower class increasing the poverty in America. So who’s gonna provide for the poor. Christians are told if you have extra give to the poor. This way it’s voluntary. And if you adopt a free market, those who work distributing money will go and get other job which will make everything cheaper. Which is less spent by the christian which means more to donate.