24 Feb
Government welfare systems were created to help the poor, sick,
elderly, and unemployed. Politicians believed that transferring
resources to these groups would end poverty and make society
more equal.” (Kristian Niemietz)
Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is his own advantage, indeed, and not that of society which he has in view. But the study of his own advantage naturally, or rather necessarily leads him to prefer that employment which is most advantageous to the society…. By pursuing his own interest he frequently promotes that of society more effectually than when he really intends to promote it….(Professor Brozen of the Graduate School of Business, University of Chicago, delivered before the Mont Pelerin Society, Tokyo, Japan, September 9, 1966.)
According to Adam Smith, in his paper Wealth of a nation, he said and I quote
“Economics has been characterized as the dismal science. However, the two main questions occupying economists believe that description. Classical economists concerned themselves with the means for enlarging income — with the causes of the wealth of nations — and with the determinants of the distribution of income. Neoclassical economists focus somewhat more narrowly within these larger questions on the causes of waste and how to improve welfare by eliminating waste.
The classical group did not neglect the analysis of the causes of waste. They dealt with the welfare consequences of state intervention in international trade — the effects of the imposition of tariffs and of trade and navigation acts. They also pointed to the welfare consequences of state intervention in the internal economy — interventions such as the creation, by royal grant, monopolies of soap, playing cards, salt, and so forth.
The fact that classical and neoclassical economists thought progress possible — that the lot of men could be improved by enlarging resources and by better utilizing the available resources — makes economics an optimistic science. It was the discussion of Malthusian demographic propositions that led to the characterization of economics as a dismal science.
So I go by the way of Kristian Niemietz’s belief that If the state must have a role in welfare, it should be limited to modest cash transfers, enabling poor people to purchase insurance services themselves. Governments should not use their powers to prevent private companies, voluntary associations and
charities from playing a leading role.
Criticism of welfare states is often confused with a lack of sympathy for the poor. In fact, the poor stand to gain the most from free-market reforms.
When government welfare fails, rich people are least affected. They can always afford better alternatives. It is disadvantaged who deserve the chance to experience the benefits of choice and competition.
-Dotun Famoriyo
According to Adam Smith, in his paper Wealth of a nation, he said and I quote
“Economics has been characterized as the dismal science. However, the two main questions occupying economists believe that description. Classical economists concerned themselves with the means for enlarging income — with the causes of the wealth of nations — and with the determinants of the distribution of income. Neoclassical economists focus somewhat more narrowly within these larger questions on the causes of waste and how to improve welfare by eliminating waste.
The classical group did not neglect the analysis of the causes of waste. They dealt with the welfare consequences of state intervention in international trade — the effects of the imposition of tariffs and of trade and navigation acts. They also pointed to the welfare consequences of state intervention in the internal economy — interventions such as the creation, by royal grant, monopolies of soap, playing cards, salt, and so forth.
The fact that classical and neoclassical economists thought progress possible — that the lot of men could be improved by enlarging resources and by better utilizing the available resources — makes economics an optimistic science. It was the discussion of Malthusian demographic propositions that led to the characterization of economics as a dismal science.
So I go by the way of Kristian Niemietz’s belief that If the state must have a role in welfare, it should be limited to modest cash transfers, enabling poor people to purchase insurance services themselves. Governments should not use their powers to prevent private companies, voluntary associations and
charities from playing a leading role.
Criticism of welfare states is often confused with a lack of sympathy for the poor. In fact, the poor stand to gain the most from free-market reforms.
When government welfare fails, rich people are least affected. They can always afford better alternatives. It is disadvantaged who deserve the chance to experience the benefits of choice and competition.
-Dotun Famoriyo
This is a useful post for finding broken links within the website, what about links pointing outwards that are broken? I can use a free web service but wondered if this was possible.
Great tool! I am using a redirect plugin to send all my 404’s to my home page but I think it’s slacking sometimes.