Want to Help the Poor? Spend, Spend, Spend!

Published on December 28, 2005 By Gideon MacLeish In Current Events

NOTE: This is a sort of sequel to my article on Christmas materialism. I'm hoping to slowly help you, the reader, to understand the thought processes that were behind my transformation from hardcore socialist to Libertarian.

This is the time of the year when a lot of dicsussion centers on how to help the poor and needy in our community. The holiday season increases our awareness of their presence, and most of us, at the core, want to see the poor among us have a reasonable standard of living.

The best way to help the poor is to buy goods. It's as simple as that. You see, retailer X has a labor cost built into the budget. The more goods he sells, the more he has to spend on salary. He can either provide more jobs or provide better wages for the workers already in his employ. It's as simple as that.

Even big ticket items such as automobiles and SUV's help the poorest wage earners, even though the commissioned sales force that sells them could usually not be described as impoverished. You see, when Joe CEO buys a hummer, the salesman that sold it gets a commission. He takes that commission home, and spends it. The box store workers have jobs because of the money Joe CEO spends. It's the basic pronciple of trickle down economics, which DOES work, despite certain protestations to the contrary.

Consumerism is the fuel that drives the capitalist economy. It's why businesses put out bigger and better products, it's why "New! and Improved!" is a catchphrase that we hear on a seemingly basis. Although we take it for granted, consumerism has made our lives infinitely better.

Probably the best example I can give is the one you're sitting in front of at this moment. I personally have worked around computers for over 20 years now, ever since my dad got his (gack!) TRS-80...cassette loaded back in the early 80's. I have seen computers advance from the point where we were mesmerized by simple loop programs that put pixel "stars" up on the screen, all the way to what you see before you now...and more. My children have never lived in a time where there wasn't a computer in the household, albeit not always online. And those advances have been driven by the simple fact that there were people ready and willing to BUY the better product once it was released.

How you DON'T help the poor is through handouts. Trust me on this. I've had to beg exactly ONCE in my life and I hope to never, EVER do it again. I would much rather have the opportunity to work to earn a living for my family. But I can't work unless there are jobs to be had, and there aren't jobs to be had unless there's money to be made, and there isn't money to be made unless those who HAVE the money, SPEND that money. That's the life cycle of a dollar in a rather small nutshell.

So, the next time someone argues that we can only help the poor through welfare programs, don't buy it. Trust someone who's been there that a FAR better way to help the poor is to help provide jobs through your spending. And enjoy that big screen TV knowing that in watching it, you are creating jobs.

Comments (Page 3)

Gideon MacLeish

on Jan 09, 2006

'You could learn an awful lot.'
Condescension. Plain and simple.

Not at all, Furry. Allow me, please to explain why it's NOT condescension.

I know VERY little about the dynamics of Australian culture. Most of my information is gathered from thirdhand sources (my sister in law, who did graduate work in Sydney, a couple various pen pals, bloggers, texts, and news reports). All of those sources have distinctive biases. As such I really would be a poor source of information on the dynamics of Australian culture, economics, etc. I'm not putting myself down by saying this, it's simple fact.

If you haven't lived in America, or have only visited certain areas of America, you would be similarly ill informed. If you had visited urban centers such as San Francisco, New York, or LA, you would have little knowledge of the rural culture of this country; likewise, if you had lived in rural settings you would have little knowledge of the dynamics of larger communities. Having lived in rural, urban and suburban settings in MANY parts of this country, I can tell you that a view that you would gain from visiting just ONE part would be VERY limited. We are an EXTREMELY diverse country, geographically, culturally, religiously and politically. You will find communities within this country that are as much as 100 years apart culturally. So saying that you could learn a lot is not a matter of condescension, it is a statement of FACT. I guarantee you if I portrayed myself as having extensive knowledge of Australia, you and others would put me in check REAL fast. As you should.

singrdave

on Jan 09, 2006

The people who shop Wal-Mart are the low and middle income families.

What an incredibly elitist thing to say. People who shop at Wal-Mart are just fine, thank you very much. Since when is trying to save a buck on toothpaste a social stigma?

Furry Canary

on Jan 09, 2006

'I guarantee you if I portrayed myself as having extensive knowledge of Australia, you and others would put me in check REAL fast. As you should.'

*Sigh* I'm going to have to repeat myself here: 'There is nothing in any of my posts specific to the USA, but obviously one is not entitled to an opinion about poverty unless one is directly acquainted with the American 'model'. Thank you very much Gideon for your overwhelming condescension.'

i.e. Your original blog makes no claim to being specific to the USA. And I have made no claim to 'extensive knowledge' of the USA. When I dared to suggest that you hadn't provided data to support your argument, you countered as follows: 'If I'm not mistaken, furry, you don't live in America, do you? If you don't, may I ask if you've ever BEEN to America, if you've ever seen our conditions for yourself? If not, I invite you to come. You could learn an awful lot.' And THAT is condescending.

PJ_

on Jan 09, 2006

singrdave, since when is being a low or middle income family a social stigma?

PJ_

on Jan 09, 2006

I wouldn't call it condescending, but you're right about the rest of it. Gideon, what does knowledge of American culture have to do with this discussion?

Dr Guy

on Jan 09, 2006

I wouldn't call it condescending, but you're right about the rest of it. Gideon, what does knowledge of American culture have to do with this discussion?

I think it is a given, that once you know the nationality of a blogger, and they write an article about a political institution or an economic one, they are talking about where they live. Unless they specifically state that it is about another country. If we are to have to continuously qualify every statement we make, it will destroy the writing, and the message. When Champus or Toblerone or even PhoenixBoi write an article, I assume it is about Australia, since that is where they live. But when Gideoon or Moderateman or Singrdave write one, i assume it is about America. And then it makes sense and I dont have to pick nits.

Latour is writing about elections right now, and he does not qualify every one with "in Canada". And if anyone were to mistake that he is not talking about Canada, a simple perusal of his blog site would find he lives in Chile - No, just kidding - Canada, so he is writing about what he knows about first hand.

There is a category for fiction (actually several) here at JU. Unless the blog is posted there, assume the writer is writing first hand, and not extrapolating their views to another country, unless they specifically state as much.

cactoblasta

on Jan 09, 2006

I think it is a given, that once you know the nationality of a blogger, and they write an article about a political institution or an economic one, they are talking about where they live.

This article though I assumed was more general than just America; after all it references nothing that is uniquely American, and there's no reason why aspects of it don't apply to other countries as well. I think when someone's dealing with an abstract or universal issue, like this blog, it should be possible to make a comment if you come from somewhere else. What is the point of putting your view out there if you don't want to get replies from those of different backgrounds, who might have different views?

COL Gene

on Jan 09, 2006

Yes it will be their fault. The problem is that will impact spending and will have a depressing effect on the economy. We are not talking about a few families. This is the very same thing the Fed is doing by spending $500 billion more per year then it taxes.

Gideon MacLeish

on Jan 12, 2006

.e. Your original blog makes no claim to being specific to the USA.

You're quite right on that point. I'll have to take my forty lashes there. My argument was meant to address the debate on poverty within the US, not globally, but I didn't clarify it within the content of the article. I should have clarified within the article, at least, that within the US, we are winning the war on poverty (The article was meant as a response to those who complain about their status within the US). That is why most of my stats referred to US incomes, not global incomes. I apologize for the confusion, and with the lack of clarification as the FOUNDATION for our disagreement, the rest of the back and forth is largely irrelevant, so I won't address it.

It was not my intent to be condescending, furry. I have found many outside the US who criticize conditions among the poor within the US with little or no knowledge of the facts. The facts are simple: all but the very poorest within the United States have a better standard of living than 95% of the rest of the world.

When you speak on a global level, as you do, you are 100% correct. And that is actually why I wrote this article: to point to the fact that, in the United States, we've practically won the war on poverty, and thus need to focus our efforts elsewhere. Although you and I would almost certainly disagree on the strategies for improving the lives of third world laborers, we would be in complete agreement that something needs to be done.

All that being said, my point about inviting you to come remains. I think there are many myths spread about the US abroad right now that I would like to see debunked.

Gideon MacLeish

on Jan 12, 2006

Right, cacto. While I referenced uniquely AMERICAN statistics, I failed to clarify that I was speaking of the war on poverty within the USA, not globally. I misfired on that count. Thank you and furry for bringing that to my attention (also: see above).

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