Medicaid is a program for people who can't afford health insurance. Social Security is a program to provide retirement for seniors. Medicare is a program to give health insurance to seniors. Public schools is a program providing education for kids K-12. Smaller programs help the poor with housing and other basic needs. Now, congress is trying to make healthcare the next huge entitlement. As we slide deeper into a welfare state, is this a good thing?
A welfare state is when a country assumes primary responsibility for the welfare of its citizens. At a minimum, it is a "safety net" with varying degrees of welfare. Some would say that its the middle ground between communism and capitalism.
The best example of a successful modern welfare state is Denmark. Citizens in Denmark have healthcare provided for them, retirement, education, and much more. Education is paid for all the way through graduate school. Studies reveal that Denmark people are happy with their system. They have low unemployment since 38% of the people work for the government.
The big negative to any welfare state is taxes. Denmark has the highest taxes in the world. They have a 25%VAT (Value Added Tax) tax. This is a 25% tax on everything you buy. Income tax is 40-60% depending on how much money you make. The automobile tax is 180%. Add the VAT and the taxes on a $10,000 car is over $20,000. Gas is $10 per gallon because of taxes. Not surprisingly, most people take public transportation or ride bikes to get around.
Before you think that the US can join in this fun, let me remind you of some differences between the 2 countries. Denmark is a geographically small nation with a total population equaling about half that of Chicago metro. Economically, they produce their own oil and export about 6 times more than they use. They don't spend much on military. In WWII they surrendered to Hitler in the first 2 hours of the invasion. I doubt they will be much help against any threat today.
The real cost of a welfare system is economic freedom. Most of your money will go to the government for redistribution to its citizens. People in the US want the benefits of a welfare state, but without the cost. We must be willing to sign over our checks to the government, trust them to provide good services, and submit to their decisions regarding personal issues. I oppose this and it explains why conservatives are against a national healthcare plan.
I also believe America is unique. Liberals despise that attitude. America has been the most successful capitalistic enterprise in the history of the world. Where would Europe be today without the capitalism of America? It provided the resources necessary for a victorious campaign in WWII and the Marshall Plan, paid for by Americans, to rebuild Europe after the devastation. If Hitler had won, where would Denmark be today?
We don't want any citizen to go hungry or live with inadequate healthcare. I believe the answer is capitalism. To get the full benefits of capitalism the government needs to start with tax reform. Instead of our complex, outdated, and unfair system we could do something like Denmark's VAT. Do away with all taxes and then establish one tax with no loopholes. It would be a consumption tax paid at the point of purchase of any product or service. Proponents of this "FairTax Plan" say that to pay for current government expenses it would take around 25%. As people and businesses prosper they will buy more and the government will have more money.
Honest capitalism should raise that standard of living for every citizen and even foreign business partners. Instead of traveling the world and apologizing for America, Obama needs another summit to study what made America great. Obama campaigned on the promise to grow the welfare state. Is this really what we want?
Check out Bill's blog at http://www.questionsbybill.com.
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