04/10/2017

23 Ways Big Government Is Hurting The Poor

Daren Bakst, Foundation for Economic Education

Advocates for big government often equate expanding government with concern for the poor. But reality speaks to the contrary: Expanding government often has very harmful effects on the poor.

This reality is precisely what is addressed in a forthcoming special report from The Heritage Foundation, “Big Government Policies That Hurt the Poor and How to Address Them.”

Rather than looking at welfare policy—a usual focus of analysts when discussing policies that impact the poor—the report focuses on economic policy, including regulation.

The authors identify 23 policies and provide concrete solutions that would allow those struggling financially to have more opportunities and a higher standard of living. As indicated in the report, these policies are just the tip of the iceberg.

The authors found three recurring themes that marked the policies they identified:

1. Cronyism

A significant number of the policies are classic examples of cronyism. It’s quite illuminating how government policies supposedly designed to protect allegedly vulnerable workers or consumers wind up, in reality, helping dominant producers or politically favored special interests.

2. Disproportionate Impact on the Poor Through Artificially High Prices

Many of the policies identified drive up consumer prices, such as for food and energy. This disproportionately hurts the poor because a greater share of their incomes go to meeting basic needs, as compared to households at higher income levels (see the chart below).

Read full article



You May Also Like:

At 100-Day Rally, Trump Marks Accomplishments, Blasts Dems And Media Frank Miles, Fox News

Politico Poll Of White House Press Corps Includes Grand Total Of Three Republicans David Rutz, The Washington Free Beacon

Rumor: Roger Ailes In Talks For New Conservative Network? Allahpundit, Hot Air

Obama Gets Fabulously Rich After Keeping America Poor [Watch] Investor’s Business Daily

Peggy Noonan: Democratic Party ‘Blowing Itself Up’ [Watch] Eddie Scarry, Washington Examiner

Elizabeth Warren: A Factory Of Bad Ideas [Watch] Ken Blackwell, Townhall

Why President Donald Trump’s Tax Plan Is Brilliant Politics And Even Better Economics Jeffrey Tucker, Rare

Yes, The Nation Can Afford Trump’s Tax Cuts Tyler Cowen, New York Post

Twitter Proves New NY Times Columnist Bret Stephens Right About ‘Nasty Left’ Matthew Balan, Mediaite

Poll: Tax Burden Linked To Desire To Move Out Of State Stephanie Marken And Zac Auter, Gallup

Yale College Republicans Host Barbecue Right Next To Hunger Strike Thomas Phippen, Daily Caller

British Students: Clapping And Cheering Excludes Deaf People [Watch] Lukas Mikelionis, Heat Street

Report: Megyn Kelly’s First Interview Is With The Kardashians Katie Jerkovich, The Smokeroom

For More go to the Home Page >>>

Search

Bookshelf

SHARE

Some titles recent, all recommended -

Special Video Feature



Voices From The 2017 International Students For Liberty Conference

In Search Of History

SHARE

Keynesian Economics and the Great Depression

Hillsdale College economics professor Gary Wolfram discusses Keynesian economics and the factors that pulled the national economy out of the Great Depression. The story of World War II shows that government spending may produce activity, but not the prosperity of a truly healthy economy.

 

-- Gary Wolfram, Hillsdale College,

Shadow Stats Snapshot


ShadowStats alternate economic indicators are based on the methodology of noted economist John Williams, specialist in government economic reporting.

  • Unemployment:
    BLS: 4.5%
    Shadow Stats: 22.5%
  • Inflation:
    March Year-to-Year: 2.38% (CPI-U*)
    Shadow Stats: 10.1%

*[cpi-u is the Bureau of Labor Statistics inflation rate for all urban consumers]