How Does This Work Exactly?

SEE HERE There's an old saw of economics that if you tax something you get less of it and if you subsidize something you get more of it. It's just basic economics, but it seems that our liberal elite rarely think about it. They are locked into steady-state, zero-sum-game thinking which supposes that if you subsidize something the subsidized group benefits and everything else is the same and if you tax something that the tax money paid in appears magically and nothing adverse happens.

Neither of those assumptions is true. Giving people things for nothing disincentivizes them from working harder. So they work less. If they were barely working they may stop working altogether. This has been the weak link in all the welfare programs and has caused a permanent underclass to develop that is on the government dole. If you increase the programs you don't end poverty you actually increase it by spreading the welfare mentality further and create larger and larger dependency classes. The people paying for it are the shrinking class of self-starters who are working. However, they are not unaffected so they tend to work a little less and develop their own patterns of partial dependency.

The problems with this ought to be obvious to everyone. In the long run this produces a downward spiral in our economic health as a nation and at some point you've reached a tipping point from which there is no return. The remaining folks willing to work abandon the country and since they were paying for the whole thing the system collapses and since the whole system is dedicated to the proposition that all solutions come from a government that produces exactly nothing and pays by extracting wealth from the productive, the response is to try to squeeze blood from the remaining stone and this accelerates the process of collapse. Then the government tries to intervene by seizing the means of production but they no longer have the management class that organized things so that doesn't work, it just makes government to blame. Finally it either ends in revolution or a sort of steady-state universal poverty where everyone is poor.

Ok — that's the worst case scenario. What are you doing to stop it? If the answer is that you are part of the problem, then perhaps you should reconsider your assumptions.