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	<title>The Fed&#039;s HR Department &#187; Human Nature</title>
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	<description>The Constitution - Let&#039;s Try To Hold Them To It</description>
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		<title>Taking my Tonka truck and go&#8217;in home</title>
		<link>http://dchrdept.com/archives/89#utm_source=feed&amp;utm_medium=feed&amp;utm_campaign=feed</link>
		<comments>http://dchrdept.com/archives/89#comments</comments>
		<pubDate>Tue, 12 Jan 2010 03:08:06 +0000</pubDate>
		<dc:creator>Shannon Rodgers</dc:creator>
				<category><![CDATA[Free Market]]></category>
		<category><![CDATA[Government Expansion]]></category>
		<category><![CDATA[Associated Press]]></category>
		<category><![CDATA[Borrow]]></category>
		<category><![CDATA[Cadillac Plan]]></category>
		<category><![CDATA[Confiscation]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Health Care]]></category>
		<category><![CDATA[Human Nature]]></category>
		<category><![CDATA[Jobs]]></category>
		<category><![CDATA[Ray LaHood]]></category>
		<category><![CDATA[Socialism]]></category>
		<category><![CDATA[Stimulus]]></category>
		<category><![CDATA[Uninsured]]></category>
		<category><![CDATA[Universal Healthcare]]></category>
		<category><![CDATA[Wealth]]></category>

		<guid isPermaLink="false">http://dchrdept.com/archives/89</guid>
		<description><![CDATA[<p>Think for a minute about Kindergarten.  Imagine the teacher asks her class of 30 students to bring in a stuffed animal to play with.   If they would like, they can bring more than one.  Imagine that the next day, 5 students showed up without a stuffed animal, 20 showed up with one, [...]]]></description>
			<content:encoded><![CDATA[<p>Think for a minute about Kindergarten.  Imagine the teacher asks her class of 30 students to bring in a stuffed animal to play with.   If they would like, they can bring more than one.  Imagine that the next day, 5 students showed up without a stuffed animal, 20 showed up with one, 3 showed up with two, and 2 students brought in three.</p>
<p>Would you expect one or more of the 5 to show up the next day with a stuffed animal, because they did not like doing without?  Do you think that some of the kids would offer their extra stuffed animal to classmates with none?  I would.  I would expect one or two of the 5 who simply forgot, or didn’t take the request seriously or whatever would remember the next day.  That leaves 3 who did not bring a stuffed animal because they could not, for whatever reason.  I would expect some with stuffed animals to share with those who do not have a stuffed animal.  I have a son who routinely shares his most prized treats with others around him.  Some of those with one stuffed animal would bring in another the next day, and some would do so specifically to share with their classmates.<span id="more-89"></span></p>
<p>Imagine however if the teacher felt sorry for the 5 students without a stuffed animal and assumed they did not bring one in because they did not have the opportunity at home.  Imagine that she wants to keep from embarrassing those without stuffed animals by allowing them to play without a stuffed animal or to be at the mercy of the charity of those students with multiple stuffed animals.  Imagine that with good intention, she collects the “extra” stuffed animals and distributes them to the students without one.  Everyone has a stuffed animal.  Perfect, right?</p>
<p>What happens the next day?  What happens if this is continued indefinitely into the future?</p>
<p>Will the 2 forgetful students bring in a stuffed animal the next day, or the next?  Perhaps, but is there more or less incentive for them to do so than if they had been left alone?</p>
<p>Are the students who had 2 or 3 stuffed animals, and had the “extra” collected more or less likely to bring their 2 or 3 again the next day, to have them collected and redistributed to someone else?</p>
<p>When there are fewer than 30 stuffed animals brought in, is it fair for those who brought one or more in to be the one without any, so that someone who did not bring one in can have one?</p>
<p>Does the student’s reason for no longer bringing in a stuffed animal matter to you when answering this question?  For example, does it matter that one student who brought in multiple stuffed animals just days before, only brings in one, and another student does not bring one because she cannot?  Would you take the one stuffed animal from the “stingy” student and give it to the one without any choice in the matter?</p>
<p>Would you expect a child to bring their best or favorite stuffed animal in if they saw another student play carelessly with stuffed animals that did not belong to them?  Would they attempt to protect their favored stuffed animal from confiscation and damage by leaving it at home in favor of a less appreciated toy?</p>
<p>If the teacher attempted to make the stingy students (who stopped bringing in stuffed animals) feel bad, would they bring in lesser appreciated stuffed animals in larger quantities to keep the count up without risking the better stuffed animals?</p>
<p>Would those who lack the ability (as apposed to those who were forgetful or lazy) be better off in the original situation where everyone felt free to bring their best stuffed animals and share as they felt comfortable?</p>
<p>How does this thinly veiled commentary on free choice relate to current events?</p>
<p>The Associated Press did some homework recently:  http://apnews.myway.com/article/20091029/D9BKMVMG0.html</p>
<p>http://www.cleveland.com/newsflash/index.ssf?/base/national-13/126320409066680.xml&amp;storylist=washington et. al.</p>
<p>First, the jobs created were overstated.  Imagine that, people competing for government grants painting a rosy picture about how well they had used the money.  No surprise, I would expect any program with self reporting to have tremendous reported success.</p>
<p>Second, unemployment did not fair better in areas where a lot of stimulus money was spent relative to where none was spent.  Transportation Secretary, Ray LaHood disagreed and said there were tens of thousands of jobs created in construction with road and bridge money.  After all, how could we spend $400,000 per stimulus job and not hire anyone?  They can’t all be raises for current employees reported as jobs saved.  Is someone lying or stretching the truth?  Perhaps, but both could also be right.  Consider this:</p>
<p>Start with the fact that government cannot create wealth; it cannot give anyone something without first confiscating it from someone else.  So, where did the jobs come from?  In terms of stimulus money, where did the $400,000 dollars come from?  More importantly, how many people would your employer have to lay off, to pay up $400,000?  After all, that is where the money comes from, the economy.  So, we borrow (from the future economy) $400,000 per job, with interest, which will have to be paid back (likely in terms of jobs lost or not created) by that part of the economy left when the new notes come due.  We recently borrowed $290 billion to pay the interest on the next few months of loans we already have.  This was the raise in the borrowing limit to keep the notes from coming due, presumably until the health care bill can pass.</p>
<p>In addition, the economy has to pay the government to operate, pay people to print/collect/borrow the money, as the government does not create anything and cannot pay for itself.  And, the economy must pay for those programs and non-operational expenses of the government, like national health care, should it pass.</p>
<p>So, imagine that you are a potential employer, especially one over seas.  Are you more likely to hire people in America, or somewhere else?  Keep in mine, an employer has to have the money to pay the employee before hiring and for a long enough time for them to pay for themselves.  Are you more likely to bring your best-most-favoritest bear you built at Build-a-Bear to the American kindergarten to be confiscated, redistributed, and played with by careless Americans?  Or are you more likely to take your bear to China/India/Ireland/Dubai or any of hundreds of more bear friendly countries?</p>
<p>The problem with socialism, shared prosperity, social justice, economic justice, or whatever statist-collectivist name you want to put on it, is that it demands that human nature be ignored.  This type of system is only sustainable (let alone prosperous) if the teacher can go into each student’s house and force them to bring in their bears.  In other words, if there is no private bear ownership, if there are no alternatives, if there are no liberties.  Such systems are only sustainable at the point of the proverbial gun.  Such systems are only enforced, not upheld by informed free people.</p>
<p>Consider how this fits in with the current discussion of the day, where you will be forced to buy a particular government specified health insurance from companies who are forced to provide it to you without considering pre-existing conditions, at a government determined “affordable” rate, payable to Doctors who have been forced to accept this amount.  Plans better than the particular “minimum” plan determined by the government (ironically called Cadillac plans, a GM brand owned by the Fed) will be taxed for re-distribution, and Doctors who do not accept the minimum payment or charge cash or provide enough care to be in the top 10% by volume, will be penalized likewise.</p>
<p>Will the currently uninsured be better off with the eventual outcome, or at the mercy of the current system?  Will those from other countries continue to bring their medical dollars here, or will they follow the foreign Doctors to the more bear friendly counties?</p>
<p>Taking resources out of the productive areas of the economy, via healthcare, energy, income, or any other taxes and mandates, to re-distribute to non-producing areas, wastes resources in the re-distribution effort, and scares producers from other countries from producing here.  Job stimulation spending costs us jobs and re-distributive health care reform hinders the availability of health care.  The “stingy” will always have theirs, here or in China.  Those who cannot produce always suffer the worse equality-of-outcome from socialism than the outcome from equality-of-opportunity of the free market.</p>
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