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The reason why food stamps work and wealth transfers don't is that increasing food production to match the demand that food stamps add isn't all that difficult,
by zjaffee 8y ago
The reason why food stamps work and wealth transfers don't is that increasing food production to match the demand that food stamps add isn't all that difficult, especially given that so much food already goes to waste. A direct transfer of money that could then be spent on things like housing or healthcare doesn't result in an increased production of those goods as it stands today since it won't result in a rapid increase in the number of doctors or the amount of housing available at lower price points.
I keep seeing conservative/libertarian groups propose things such as negative income taxes and UBI, but feeding the beast that is capitalism wont necessarily provide individuals substantially better conditions than exist today without additional major policy changes.
- seibelj 8y agoA free market is the most efficient way to distribute resources and it does this via price signals. Quantifying welfare as a single number, paid for in dollars, is maximally efficient. What you are arguing for is to split welfare into buckets, such as the food bucket (SNAP) and the housing bucket (rent control), but still let individuals spend freely within that bucket. It’s an argument, but I think the simple solution is just to have one bucket and trust that individuals know what they need to spend money on best. The twist you have, that food is a unique resource we grow too much of and SNAP is essentially free because we use food that would be wasted, is very strange and I haven’t heard it before. I don’t think government purchasers buy food from the trash pile, it all comes from the market.
- macintux 8y ago> trust that individuals know what they need to spend money on best Have you met people who struggle with addiction? I suspect placing money explicitly into a food bucket is the only thing keeping a lot of children fed.
- seibelj 8y agoThis is paternalism, and philosophically I think it’s best to let the individual decide what’s best for them rather than society telling people what to buy. You are essentially saying that the poor cannot be trusted to know what they need, whereas I think the poor are intelligent, rational people who will allocate their resources best.
- macintux 8y agoI've helped keep a young drug addict alive for the past several years. I can assure you that good financial planning, and decision-making in general, does not always coincide with poverty. And it's fine to argue that if people make poor decisions, they should be allowed to suffer the consequences, but that downplays the consequences that those around them suffer as well, especially children. It's perfectly reasonable to say the money should be in a single bucket, but don't delude yourself that people are rational actors.
- seibelj 8y agoYou are implying that enough poor people are junkies, or are poor because of some debilitating personal failure, that it is better not to trust any poor person to spend their welfare, in order to save the poor from themselves. Your anecdote does not change my opinion. I trust that most poor people are hard working and honest, not one foot in the grave with dope like your friend.