We’re too broke to be this stupid

STEYN: Beleaguered taxpayers may finally put a stop to the sheer waste of government spending

by Mark Steyn on Thursday, May 27, 2010 6:58am - 599 Comments

Benoit Tessier / REUTERS

Back in 2008, when I was fulminating against multiculturalism on a more or less weekly basis, a reader wrote to advise me to lighten up, on the grounds that “we’re rich enough to afford to be stupid.”

Two years later, we’re a lot less rich. In fact, many Western nations are, in any objective sense, insolvent. Hence last week’s column, on the EU’s decision to toss a trillion dollars into the great sucking maw of Greece’s public-sector kleptocracy. It no longer matters whether you’re intellectually in favour of European-style social democracy: simply as a practical matter, it’s unaffordable.

How did the Western world reach this point? Well, as my correspondent put it, we assumed that we were rich enough that we could afford to be stupid. In any advanced society, there will be a certain number of dysfunctional citizens either unable or unwilling to do what is necessary to support themselves and their dependents. What to do about such people? Ignore the problem? Attempt to fix it? The former nags at the liberal guilt complex, while the latter is way too much like hard work: the modern progressive has no urge to emulate those Victorian social reformers who tramped the streets of English provincial cities looking for fallen women to rescue. All he wants to do is ensure that the fallen women don’t fall anywhere near him.

So the easiest “solution” to the problem is to throw public money at it. You know how it is when you’re at the mall and someone rattles a collection box under your nose and you’re not sure where it’s going but it’s probably for Darfur or Rwanda or Hoogivsastan. Whatever. You’re dropping a buck or two in the tin for the privilege of not having to think about it. For the more ideologically committed, there’s always the awareness-raising rock concert: it’s something to do with Bono and debt forgiveness, whatever that means, but let’s face it, going to the park for eight hours of celebrity caterwauling beats having to wrap your head around Afro-Marxist economics. The modern welfare state operates on the same principle: since the Second World War, the hard-working middle classes have transferred historically unprecedented amounts of money to the unproductive sector in order not to have to think about it. But so what? We were rich enough that we could afford to be stupid.

That works for a while. In the economic expansion of the late 20th century, citizens of Western democracies paid more in taxes but lived better than their parents and grandparents. They weren’t exactly rich, but they got richer. They also got more stupid. When William Beveridge laid out his blueprint for the modern British welfare state in 1942, his goal was the “abolition of want.” Sir William and his colleagues on both sides of the Atlantic succeeded beyond their wildest dreams: to be “poor” in the 21st-century West is not to be hungry and emaciated but to be obese, with your kids suffering from childhood diabetes. When Michelle Obama turned up to serve food at a soup kitchen, its poverty-stricken clientele snapped pictures of her with their cellphones. In one-sixth of British households, not a single family member works. They are not so much without employment as without need of it. At a certain level, your hard-working bourgeois understands that the bulk of his contribution to the treasury is entirely wasted. It’s one of the basic rules of life: if you reward bad behaviour, you get more of it. But, in good and good-ish times, who cares?

By the way, where does the government get the money to fund all these immensely useful programs? According to a Fox News poll earlier this year, 65 per cent of Americans understand that the government gets its money from taxpayers, but 24 per cent think the government has “plenty of its own money without using taxpayer dollars.” You can hardly blame them for getting that impression in an age in which there is almost nothing the state won’t pay for. I confess I warmed to that much-mocked mayor in Doncaster, England, who announced a year or two back that he wanted to stop funding for the Gay Pride parade on the grounds that, if they’re so damn proud of it, why can’t they pay for it? He was actually making a rather profound point, but, as I recall, he was soon forced to back down. In Canada, almost every ethnocultural booster group is on the public teat. Outside Palestine House in Toronto the other week, the young Muslim men were caught on tape making explicitly eliminationist threats about Jews, but c’mon, everything else in Canada is taxpayer-funded, why not genocidal incitement? We’re rich enough that we can afford to be stupid.

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  • http://intensedebate.com/people/crankyhousewife crankyhousewife

    I am convinced that the worst thing Socialists did for their cause was to allow Mr. and Mrs. Middleclass to feel any economic pain. They will put up with an awful lot of nonsense as long as it doen't result in a diet of mac and cheese for their kids.

  • Ben

    The Western World is spending TRILLIONS of dollars on the invasion and occupation of Iraq. An invasion and occupation which Mark Steyn cheered on endlessly.

    If conservatives are so concerned about overspending, how about we stop funding stupid wars?

    • TJC

      For the last 4 years it has been the Democrat congress funding the wars. Since January 20, 2009 It has been obama’s war. Try and keep up with the news….

  • http://intensedebate.com/people/Oakley Oakley

    Amen Mr. Styen! We've had it, up to our earlobes! Enough of the BS. The Government works for us, NOT the other way around.

  • http://intensedebate.com/profiles/mymusemoviesmusicbooks Patrick

    How stupid do you have to be to have forgotten already that the current financial crisis was created almost whole cloth from a combination of two factors? Those two factors? Military adventurism in Iraq with the sole intention of furthering American hegemony in the Middle East. And, more significantly, economic adventurism by the the wealthiest sector of our society, who were in turn protected — even rescued — from the consequences of their greed.

    Instead, Steyn meticulously and maliciously trots out conservatism's favourite whipping boys: the poor, gays, environmentalists, climate change, Islam, unions. Particularly transparent is the all-too prevalent practice of blaming the global victim: the poor. If we divide our rlatively wealthy and powerful Western society into the sectors of rich, middle-class and poor, then only one sector is growing (the poor) and only one is growing richer (the rich), both at exponential rates. Moreover, the poor are getting poorer, and the rich fewer.

    I'll make just one specific point, because Steyn himself so belabours it in this hack job of journalism Macleans deems to be an op-ed: the most essential external possession of a person seeking work, seeking a way out of the hell-hole of poverty, is a telephone number. Do I need to spell it out for you, then, Mr. Steyn, why a homeless person would have a cell phone? Or are you too stupid even to understand that?

    • http://intensedebate.com/people/JimMcVeigh JimMcVeigh

      You are correct to cite government protection and rescue as the root of the problem. I would submit that the solution is to have a totally unregulated market, which is to say that banks or brokerages have to hold onto the mortgages they write, not fob them off onto Fannie and Freddie (which are curiously absent from the Dodd financial bill).
      There should be no targeted level of home ownership; therefore what business is it of government to aim for a level of home ownership?

      If a bank had to hold the paper it wrote, and had to assume the risk itself of whether the person before them could repay the loan, much of this would have been avoided.

      • http://intensedebate.com/profiles/mymusemoviesmusicbooks Patrick

        Hey Jim,

        Actually, I didn't cite government protection and rescue as the root of the problem. I cited the greed of bankers and high-profile investment agencies as the root of the problem. I implied that the very wealthy people at the top of the food chain who engineered the conditions of the collapse, escaped the harm of it by continuing to collect their 'performance bonuses' while taxpayers bailed out the institutions their performances had destroyed.

        Ironically, countries which more highly regulate their banks' behaviour, such as Canada, side-stepped the worst fallout of the global economic collapse. Most of the negative economic affects in Canada have been due to having an economy so closely entangled with the US, whose economy was eviscerated by unchecked financial adventurism.

        The banks had assumed the risk in a largely unregulated market — by most other responsible nations' standards — and ignored the possible negative outcomes in favour of massive profits. In fact, several large ones collapsed out right at the beginning of the whole mess. However, faced with total economic armageddon, the US government made a pragmatic choice: bail out the banks and other financial institutions, or sink the whole ship.

        • http://intensedebate.com/people/JimMcVeigh JimMcVeigh

          Implicit in the banks' behavior was the backstopping by Fannie and Freddie. Without the government guarantee, those loans would not have been made, those CDO's would not have been invented and sold, etc etc etc.
          AIG was bailed out not to save it, but rather so that it could give its bailout money to Goldman in order to make Goldman whole.

          Fannie and Freddie were being run into the ground (figuratively speaking, as they have nor will they face any real world consequences) by Franklin Raines, who took something like $90 million out of the place during his tenure at the top. While the collapse was entirely predictable (and regulation WAS attempted during the Bush years), Barnie Frank is on record in the House saying that those GSE's would not cost the taxpayers a cent.

          I would speculate that at least part of the reason that Canada escaped the bank meltdown is that we don't have quite as thriving a Race Industry as exists in the US, ie, Sharpton and Jackon, ACORN, CRA, Andrew Cuomo, etc etc etc etc.
          I am not sure of the specifics, but I tdon't think there is a secondary market for mortgages, which is to say that the bank and writes the mortgage has to hold onto it and not fob it off onto someone else.
          There is no profit–massive or otherwise–to be had in selling a product to someone who has no ability to pay for the product, whether that be a car or a house or whatever.
          There are, however, massive losses to be had, which is how it should be.

          • Ogallalaknowhow

            I don't really see what race has to do with levels of debt between USA and Canada. Household debt in Canada is close to that in the USA, and significantly worse other western countries. That is because all of our mortgage liabilities are tied up in the CMHC, so the argument that Canada doesn't have the 'secondary market for mortgages' isn't entirely accurate.

            This is from the CMHC wiki: "[in 2007] the Conservative government launched a radical policy that allowed CMHC, AIG & GE to insure 35 year amortizations that were coupled with 0% down payments. A few months, but before 2008 — this was expanded to 40 year amortizations."

            An interesting blog-post on Canada's comparative debt ratio to European countries. http://americacanada.blogspot.com/2010/05/canada-…

          • http://intensedebate.com/people/JimMcVeigh JimMcVeigh

            Thanks for the link; that is good info.

            As I said, I was just speculating about the race thing, but my comment was based on the sights of Jackson and Sharpton heading up protests about "redlining;" and surely the fact that the black community votes largely Democrat had something to do with Dem policy over the years to increasingly lower the bar for home ownership…?

            I dont' really pay too much attention to the specifics of mortgage qualifications these days (being mortgage free thanks to a bit of luck in buying in before the prices here went stupid a few years ago), but I seem to recall that there was a higher down payment requirement at the time, as well as something about the mortgage not being more than 30% of your gross (net?) monthly income….?

            What I DO know is that I am thankful for having it drilled into my head as a youngster (by parents who grew up in the Depression) to not buy stuff you can't afford, to save for a rainy day, to live within one's means, and most germane to Steyn's article, not to expect a free ride.

          • Ogallalaknowhow

            I think your correct in speculating about a relationship between race and high-risk mortgage lending. As usual, its difficult to even know where to begin to place the blame. On individuals and families who probably should have known better; or the mortgage-backed financial sector that obviously targeted low-income groups as a potential market?

            Politicians and other state actors of all political stripes played a role in distorting housing markets through various policies emphasizing home ownership and backing mortgages through quasi-corporations like Fannie and Freddie (analogous to Crown Corporations in Canada – our Canada Mortgage and Housing Corporation). Home ownership has in many ways become the cornerstone of being middle class on this continent, and I think a lot of the bad lending practices that were structured along race were extensions of this; a mortgage means disposable income and the status symbols that come with it.

            It is unfathomable how much our respective nations' economic health have been dependent on insurance and real estate… we need to return to a sounder understanding of free markets. One that recognizes that there needs to be a continuous effort on the part of government to stop monopolies and other anti-competitive activities (especially in finance). Trust-busting used to be a standard platform of conservative parties across the Atlantic. It remains a common platform between old conservatives and progressives. And I think could be the basis for a true and defendable populist political movement.

  • radha

    Harper needs to impress the world I have the most powerful country in the world financially (weathered the recession) – I can spend that kind of money and as The Conservatives say we need to spend this money to ' stay on the world stage' – for what? James Travers states that at the least it is questionable rewards any country gets for hosting or participating. And volatility is a heartbeat away! And the big question is how many of those thrown out of a job in the last 11/2 years have it back the P.M. quoted 300,000 plus and the EI has run out!.

  • radha

    The jobs lost in the recession are being replaced by low paying jobs- todays Winnipeg press – Is that what the P.M. Harper was talking about in the 300,000 plus jobs created since recession? So the economic quamire is still there especially with volatility seems a weekly occurrence.

  • Doom

    Of course, at some point, they will decide they cannot afford to be stupid. But the race is on and probably already lost. When they realize the problem, they may very well be too late to do a thing about it. Even if elections are not pretty well fixed at this point, which I believe they are, one way or another, in Europe and in the US, they are still too far behind the eightball to know who can lead and then take the consequences of that, by necessity, painful path. The difference between intelligence and wisdom is knowing and doing. I doubt not just the wisdom, but the intelligence, at this point.

  • donkeyodie

    I implore everyone to read "The Law" by Frederic Bastiat. Study it, break it down. It's only an essay, but explains much. Share it with friends.

    http://www.constitution.org/law/bastiat.htm

  • Michael Pelletier

    Oliver wrote:

    Greece looks like it's done for but Germany is doing rather well for itself.

    That's because Germans have a world-renowned work ethic, one so legendary and strong that they're willing to work hard even while carrying half of Europe's moochers on their backs. That can't go on forever, though.

  • http://intensedebate.com/people/ClaireSolt ClaireSolt

    I have noticed that there are some adamant supporters of the welfare state whose only claim to being good is that support.They don't even actuallly do anything or even know anything about the people they claim to care about. They vigorously oppose any reform of programs funded by their employers, not them, because they need the social problems to prop up their own self worth.

    Recently representatives of a broad coalition to end homelessness announced some success. They had actually reduced the problem for the firsst ime by, (get this) getting people into homes. Callers on c-span were iratete. My daughter in law was annoyed. They needed the homeless to make themselves feel good. How dare anyone suggest that their occasional volunteering at a soup kitchen or giving a can of beans to a food drive were not good enough.

    • http://intensedebate.com/people/ClaireSolt ClaireSolt

      The main drawback to government welfare is that it delegates to government the duty to actually love thy neighbor. People can pretend that they care about others they don't even know. Then government workers can put their feet up and watch porn in their offices. No one willl ever know, because no one is watching. The needs of the poor go unmet.

  • John Leonard

    "The great sucking maw of . . . public sector kleptocracy." A catchy phrase, but spoiled by the provenance of "kleptocracy," a word that was coined in reference to Mark Steyn's disgraced and imprisoned private sector boss.

  • Daniel

    "Poor old BP" Are you f*cking kidding me?

  • Alec

    It would take too long to explain, but you’re an ignorant bigot.

    • Jeff

      @alec
      You are probably one of these, who are sucking budget dry.
      Explaining to you is pointless.

  • Kimberly

    only people that need to drive ,smoke and drink soda will be taxed.

  • http://www.baitandswitchtv.com Lee McDermid

    Time, then, for a satirical reality-check:

    “Banking On It,” “Subprimal Scream Therapy,” and “Superfrauds: The Injustice League” http://www.baitandswitchtv.com/comedy2.html

    “Stificil” erectile dysfunction commercial parody http://www.baitandswitchtv.com/comedy1.html

    And for financial crisis stress relief: “A Federal Reserve Crap$hoot” online game
    Click on the popup banker's head to accrue points but dont forget to click those coins created out of thin air for your ammo! http://www.baitandswitchtv.com/games1.html

  • Middleman

    I agree with much of what you say but quoting Fox is a sure way to lose credibility with anyone who has a brain. It always strikes me as interesting that writers with your slant never mention corporate welfare or the billions poured down the rat hole of what President Eisenhower labeled the military industrial complex. I know that we need a strong defense and I believe that the USA has the best form of government on the planet to the extent is is not owned by Wall Street, big pharma 'defense' and the insurance lobby, but If you want to reach the independents who actually pay attention to the news and are not mesmerized by the propaganda from either extreme you will have to mention the warts on your own side of the issue.

  • raul

    MOST of you – including the author of this piece – are being deceptively disingenuous. First of all, socialism has not failed. Ask Goldman Sachs. Ask George Soros. The billionaires are very happy to engage socialism because their biggest moneymaker if government. The reason the government is so broke is because the ultimate welfare kings and queens have stolen the money and carted it off to Tel Aviv. They have used monstrous sums of money to pay for the unbelievable amount of wars, invasions, overthrow of democratically-elected governments and bailouts for billionaires. Do you know how expensive it is to bailout multi-billionaires? Start the figuring in the trillions. Do most Americans know that the government of the USA funded Osama bin Laden to the tune of 6 Billion (with a capital B) dollars? Do they know that 100 million was allocated specifically for the destabilization of the Iranian government? Do they know how much the Iraq war will wind up costing? Who gets all that loot? Who lands the contracts? Well, those who have paid their bribery invoices to the appropriate legislators. One government contract can make someone a multi-millionaire – even a billionaire. ONE GOVERNMENT CONTRACT. Remember the beach bum fukup down in Florida who's uncle set him up as CEO of some fly-by-night company and who landed a contract to supply the troops with bullets and the bullets turned out to be 50 years-old bullets – many of which would never fire – putting the troops in grave danger? Did they make him give back the money? Did he even get charged with anything? Nope. Not a nickel of the 122 million dollars. I am sure the money is very safe in an Israeli bank today. Make no mistake about it, a nation such as the US cannot afford open-ended capitalism. Capitalism isn't democracy. In fact, capitalism is the complete opposite of democracy. The ultimate goal of the ultimate capitalist is to win ALL the money. Sharing is a dirty word in a capitalists vocabulary.

    But the author is trying to blame the financial situation on multi-culturalism, forgetting, naturally, that his ancestors came from another place and brought their culture with them.

  • plistna

    Wow, do you always rant so incoherently? Canada enjoys one of the highest living standards in the world, and has survived the economic meltdown quite well due to some very reasoned regulation. Yet you think that some right-wing fantasy, dog-eat-dog, intolerant society would be better? I think you need to find something productive to do, rather than whine about people who happen to look different from you. You are the one with blessed with unfair advantages. If you lost all your privileges, and had to start from zero like most of these hard working people, they would eat your lunch – and you would have to get a real job, instead of writing whiny columns.

    • Jeff

      “due to some very reasoned regulation”
      Are you kidding?
      Canada survived crisis for the same reason Australia and Brazil did.
      Canada is a humongous natural resources dump.
      That’s all.

  • McLovin

    The welfare state UK,Paki's Pikey's and Pissheads love it.Thats why i vote BNP.

    • Jeff

      I think I saw you last Friday wasted in my local pub.
      Tattooed, dirty and drunk beyond recognition … no wonder you vote BNP, your type is their average voter.

  • Leon

    The whole article is simplistic. Corporations, business in general… wants the working class to have money, so that they can pay for mobile phone use, internet connections, iPads etc… Deny the unemployed and low income people the ability to spend, and business will fail. Business can't survive on only serving the 5% of well off people.

    If unemployed people are spending their wellfare money, then it's going back into the economy, so it's not like they're saving the cash. It's stupid to act like wellfare money is free money, that people stash away in bank accounts.

    Give poor people a break. Yes, some poor people bring poverty upon themselves, but most are just victims of social systems. To have a totally negative view of poor people, unemployed people and wellfare, is very ignorant and negative.

  • stalin

    I thought the debit was 'cus the banker's ran out of money, so they borrowed loads of many western governments?
    Did I miss something? Was it really the communists and single mothers?

    • Jeff

      “borrowed”?
      well … that’s one way to put it

  • max

    Mark Steyn is probably the best living breathing example of "we can afford to be stupid"

  • Nick Danger

    Blaming the poor, are we? What fatuous elitism. Strip the ill-gotten gains of the 500 richest people in any country and the problem is solved. The wealthy are responsible for creating an environment conducive to employment. If they do not meet the responsibility that comes with their rank and privilege, then we find ourselves here – at the very bitter end of Capitalism. The problem is not that people don't want to work. The problem is that there is no work.

    • Crocodile Dundee

      Any evidence that the wealth of the 500 richest people was ‘ill gotten’? Nope, just another tired lefty cliche.

      “The wealthy are responsible for creating an environment conducive to employment.” Since when?? If Stephen Harper announced massive gov’t spending cuts because the ‘wealthy’ would create employment you’d be at the barricades shouting about him being in the pockets of the rich.

      “The problem is not that people don’t want to work. The problem is that there is no work.” So you would agree that there should be no immgrants allowed into Canada until such time that there are jobs for them. Or would that be ‘racist’??

  • Jude

    Am I expected to take seriously an artilce that leads with a photo of Bono? LMAO.

  • Theobald

    Can I suggest you have a look at this site.
    http://realitymoney.page.tl/

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