The Redistribution of Wealth in Obamacare

Posted by PITHOCRATES - December 30th, 2013

Economics 101

“Wait a tic.  Blimey, this redistribution of wealth is trickier than I thought.”

Monty Python is a British comedy troupe.  Starting off with a television show in 1969.  And ending their run together with a movie in 1983.  With some other stuff along the way.  They became about the biggest stars ever in comedy.  They redefined comedy.  And have influenced some of the biggest names that followed them.  Part of the reason why Monty Python is so funny is that they are so serious when being silly.  And they are very well educated.   With some members having degrees from Oxford and Cambridge.   Which helps make their humor different.  Such as their take on Robin Hood with a character they called Dennis Moore.

Dennis Moore, Dennis Moore
Galloping through the sward
Dennis Moore, Dennis Moore
And his horse Concorde
He steals from the rich
And gives to the poor
Mr. Moore, Mr. Moore, Mr. Moore

This is the opening verse of a song in the sketch Dennis Moore.  The character steals from the rich who have more than they need.  And gives it to the poor who don’t have enough.  A classic example of redistribution of wealth.  Something the American left is all about.  Being Dennis Moore.  Or Robin Hood.  But in the sketch Dennis Moore takes it to the extreme.  Stealing so much from those who were originally rich that they have nothing left but their underclothes.  While those who were originally poor have everything the rich had.  And the formerly poor (now rich) get ever more demanding of Mr. Moore for better stuff.  As he rides off to please these formerly poor (now rich) we hear the following verse.

Dennis Moore, Dennis Moore
Riding through the land
Dennis Moore, Dennis Moore
Without a merry band
He steals from the poor
And gives to the rich
Stupid bitch

Dennis Moore halts his horse.  And asks the chorus to repeat themselves.  To make sure he heard what he thought he heard.  They do.  Mr. Moore then says, “Wait a tic.  Blimey, this redistribution of wealth is trickier than I thought.”  As he discovers some of the inherent flaws in the redistribution of wealth concept.  Excessive redistribution can take large sums of money away from some.  Which doesn’t help them.  It only punishes them.  And if you’re okay with punishing the rich to help the poor note what happens to the poor when they get the rich’s money.  They become exactly like them.

Buying Votes to Win Elections works as long as you Tax the Few to Spend on the Many

This sketch is funny.  Because it’s true.  You’ve heard the expression “beggars can’t be choosey?”  Well, when it comes to the redistribution of wealth, they can.  And are.  Choosey.  They can become very demanding.  And the more they get the more they want.  And the more like the people they hate and envy—the wealthy—they get.  Mr. Moore learned that.  Where the poor he was trying to help with a hand-up didn’t use it for a hand-up.  They just used the rich’s wealth to enjoy the good life without working and earning it over time.

People may look down on those born into money but that’s only because they weren’t.  This is why poor people buy lottery tickets.  To get rich quick.  Because they don’t want to wait to have money.  They’d like to have it when they’re young.  And not wait until they’re old.  After working 20 years or so.  Which is why selling the idea of wealth redistribution is so easy.  And helps politicians win elections.  Because there are more poor people than rich people.

President Obama said those who could afford it should pay a little more.  Taxes.  To balance the playing field.  To offer a ‘hand-up’ to the poor.  This is the message of the Democrats.  Tax and spend.  Tax the rich.  And give it to the poor.  And the young.  Such as free birth control, tuition assistance, Obamacare subsidies, etc.  Things they tax the rich for.  To get the poor to vote Democrat.  It’s a working formula.  Buying votes.  As long as you tax the few to spend on the many.  Because you need the many to win elections.

Obamacare won’t Work because the Welfare flows in the Wrong Direction

The welfare state taxes the few/rich/old to spend on the many/poor/young.  Which is why it worked.  You angered a smaller group of people than you pleased.  And if you can keep doing that you can keep winning elections.  As long as you keep playing Dennis Moore.  Without being a stupid bitch.  Which the Democrats did well.  Until Obamacare.  The Affordable Care Act.

Obamacare will fail because unlike other welfare programs Obamacare is unique.  For it does not tax the few/rich/old.  It actually taxes the many/poor/young.  To pay for the health care of those who have more money than they do.  The old and sick.  Leaving the young and healthy with less money to start their families.  As they help the old and sick who already had their families.  And something just isn’t right with this picture.  The old and sick are fine with it.  While the young and healthy are calling someone ‘stupid bitch’.  Figuratively, of course.

Young people don’t have a problem with tax and spend.  As long as they are the recipients of those welfare transfers.  So they vote Democrat.  And they also vote Democrat because they are the opposite of their parents.  Who never tell them they can’t do this or that.  But, instead, tell them they should do whatever they feel like doing.  Which they like.  A lot.  But the Affordable Care Act is a whole different animal.  Where Democrats are being like parents.  Telling the young Democrat voters that they can’t do everything they want to do.  Because they’re forcing them to buy something they don’t want.  Which isn’t their parents’ welfare program.  From the few/rich/old to the many/poor/young.  But more of a welfare program for their parents.  Making it more difficult for the young Democrat voters to embrace Obamacare.  Which is why they aren’t.  And why the math won’t work for Obamacare.  Because the welfare flows in the wrong direction.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , ,