Welfarism 33, Janitor turned lawyer, self-reliance vs welfare-dependence

There is a nice and somehow sensational story this week about a former janitor at the Commission on Elections (Comelec), pursued law studies as a working student, and passed the Bar Exams, results were released last Tuesday.

My lawyer-friend from UP, Comelec Commissioner Luie Tito Guia posted this in his fb wall last Wednesday:

Thank you for the inspiring visit Compañero Ramil Comendador. May there be more of you in this world. It was in this office, then occupied by Comm. Rene Sarmiento, where he started working for Comelec.

Allow me please to incorporate in this post, Comm. Rene's story:

"SPECTACULAR BAR EXAM NEWS! In 2006, he applied for work in my office at COMELEC as utility man/ janitor. I had not met him from Adam but knowing he was from Catanduanes and was very passionate to work with me, I accepted him. He comes from a poor family "Ang sahig nila sa probinsiya ay lupa." While working in my office, he asked me if he could study after office hours and I said yes. He finished his pre-law studies, living a Spartan way of life. Very simple. After pre-law, he asked me if he could study law. I said "Why not?" He received much encouragement from my legal and non-legal staff. His cheering squad. After my retirement from the COMELEC, he contnued his law studies. Today, he is now ATTY. RAMIL COMENDADOR. Today, I say "I bless the Lord. So great is your faithfulness to Ramil!""

Atty. Rwn Caliba was one of the lawyers in the office Comm Sarmiento and he shared this:

"I first met this guy in 2007. We both started working for Commissioner Rene V. Sarmiento at the COMELEC in that same year. While we fussed with legal concerns at the Legal Unit, he was silently and patiently doing his tasks: cleaning our office and doing errands without complaint. While everybody was headed home, Ramil had to rush to his classes.

Almost a decade after that meeting in 2007, his efforts paid off. Congratulations to a good colleague and friend.

Welcome to the legal profession, ATTY. RAMIL COMENDADOR!"
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I think the dispensers of many government freebies -- free healthcare, free cash transfer, free housing (ala Kadamay), free univ. education, etc. -- may be unhappy with self-driven poor people like him. They can get out of poverty with minimal government freebies.

In the literature of endless freebies to "fight poverty", government politicians, officials and consultants do not ask the the micro and personal aspects of poverty, they just throw away tax money to poor and pretending-to-be-poor people. A person who does not want to work, or a person who works 4 hours then complains about work for another 4 hours, or a person who works 6 days a week but also drinks and parties 6 nights a week and have zero savings, will become poor, 101%. Yet government throws endless, no timetable subsidies.

Education for the poor, healthcare for the poor, housing for the poor, tractors for the poor, cash transfer for the poor, pills and condoms for the poor,...

Next will be iPad for the poor, flat tv and jacuzzi for the poor, free universal income for the poor, free electricity for the poor, car for the poor. Whatever, so long as taxpayers are screwed forever, Government (politicians, officials, consultants) will continue the subsidies and create new subsidies for the poor and pretending-to-be-poor. 

Self-driven and ambitious people will quickly reduce poverty and these state officials and consultants may be unhappy with that. Mababawasan ang racket nila.

A friend, DJ Castro alerted me on this person who criticized people who applaud this new lawyer. Very insecure comments, see this.

"Sino bang mahirap ang di nangarap na maging doctor o propesyonal?" -- marami. At maski may pera ka, mahirap maging doctor or lawyer or engineer or physicist, etc. Titigil ka sa kakapasyal sa malls, bars ng madalas. Titigil ka kakainom gabi-gabi, or mahjong, tong-its or karaoke gabi-gabi, kasi madami kang exams and assignments. Madaming tao ayaw maghirap lalo pa intellectual exercises, ke mahirap or mayaman. Mas madali pa-inom-inom, pa-sosyal-sosyal, pasugal-sugal, etc.

Socialists hate successful people, especially the self-reliant, ambitious, non-welfare-dependent, non-state-worshipper people.

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See also:
Welfarism 30: Big Government and Corruption of People's Values, December 06, 2014
Welfarism 31: More CCT and Subsidy Programs Won't Solve Self-inflicted Poverty, February 12, 2016 
Welfarism 32, On forcing restaurants to give their excess food to charities, July 27, 2016 
Cicero, welfarism and fiscal irresponsibility, August 11, 2016

Inequality 32, Free land distribution, free housing Kadamay

Free land, free housing, free education, free healthcare, free cash transfer, and so on. And soon free iPad, free tricycle or free car for the poor. 

If this is done in the Philippines or in any other country, then many people will stop working.Or they may work 6 days a week but also drink and party 6 nights a week and have zero savings. 100% formula to be poor. Then they will be entitled to those freebies that will not be given if they are not poor.

The targetted beneficiaries will expand every year, or every month. When anti-capitalism, anti-inequality NGOs, politicians, academics, etc. advocate that "If you are poor, you are entitled to lots of freebies", then more people will declare themselves poor, they will scream and curse if government does not give them the freebies.

About four decades ago, it was estimated that about 1/3 of the population was poor. Today, it is estimated that nearly 1/3 of the population is poor. And 3-5 decades from now, various measurements will say that nearly 1/3 of the population is still poor. Meaning the endless subsidies and various welfare programs will continue, and gov't will keep expanding the budget and public debt, will further raise taxes or create new ones, because "poverty remains high". Raket na, large scale.

Before, the poor were mostly walking or riding cows, horses and bicycles. Now the poor are mostly riding motorcycles, tricycles, e-bikes, jeepneys. Before the poor were using smoke signals or doves or snail mail to communicate, now they use cellphones with fb, twitter, emails. There is marked improvement in the quality of life of the poor yet by official measurements, "poverty remains high". Raket na, large scale.

I can understand new welfare programs, they are implicit and explicit admissions that some old but still existing welfare programs are not working and simply waste of taxpayers money. So if new welfare programs have to be created like the CCT, some old welfare programs should be abolished and defunded. This is not happening. The racketeers in these non-working programs create endless alibi that they are still relevant, and OP and Congress agree, so tuloy-tuloy ang over-spending, over-borrowing.

Now these two developments -- CPP-NPA-NDF negotiators in Europe who are mostly non-Filipinos anymore and have acquired European citizenship -- demand free land distribution to farmers. And squatters or illegal land settlers have moved further, became illegal housing settlers. And they were rewarded by the President, the houses they illegally occupied is given to them for free.

Many people are demanding for social revolution -- towards more citizen dependence on the state, towards more state worship. Society of batugan, tamad and irresponsibles. A government that's big enough to give everything you want will also be big enough to take everything you have.

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See also:

Inequality 29, More on Oxfam, squatters and a lamborghini, February 14, 2016

Inequality 30, Filipinos in Forbes' world billionaires, March 04, 2016 

Inequality 31, Economics, politics and forcing equality, January 16, 2017 

Pol. Ideology 70, Socialism and the politics of envy, April 08, 2017

Cicero, welfarism and fiscal irresponsibility

Words of wisdom from a Roman philosopher, Cicero (106 - 43 BC) nearly 2,100 years ago. There are minor differences in these two quotes, should be a result of different translations.

The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest Rome become bankrupt. People must again learn to work, instead of living on public assistance. - Cicero, 55 BC

The case of the Philippines on budget balance -- recent years and administrations, it never happened. National budget, P3.0 trillion this year, P3.35 trillion in 2017, perhaps about P0.3 trillion will be borrowed. http://www.bworldonline.com/content.php?section=Nation...

A consequence of always on budget deficit, always borrowing, is high interest payment alone.

PH government debt interest payment alone, principal amortization not included yet, in P billion:

2008, P272.22;  2009, P278.87

2010, P294.24;  2011, P279.00

2012, P312.80;  2013, P323.43

2014, P321.18;  2015, P309.36 

source: http://www.treasury.gov.ph/.../COR_debtservice_monthly.pdf 

Sige, utang lang ng utang ah.

The "freedom from debt" campaigners but have little or no "freedom from (endless) borrowings" philosophy are concerned too about the P6.4 trillion (as of around end-2015) PH public debt.

Living beyond our means is justified in period of fiscal/economic crisis, natural disasters like huge earthquakes, landslides, volcanic eruption, etc. Governments must borrow to replace damaged roads, bridges, etc. In period of no crisis, no disasters, we should live BELOW our means, have surplus and pay back old loans, and build up savings and reserves for future emergencies.

Anywhere in the world today, very few countries and governments do this. Majority are on the spend-spend-spend, borrow-borrow-borrow, tax-tax-tax policies. And that is how almost all governments in the planet are heavily indebted. With public debts of 40%, 100%, 200% of GDP.

Too many politicians, NGOs, consultants, academics, etc. are corrupted by foreign aid -- from the UN, WB, ADB, IMF, USAID, etc. There is endless drama on poverty and inequality so that there will be endless flow of foreign aid.

When poverty was defined as "earning only $1/person/day" many years ago, poverty rate then was high. After 1-2 decades of growth in many countries, hundreds of millions were lifted from poverty, and there was corresponding adjustment to $1.5 or $2/day/person, and so poverty remains high again. When poor people move up the income ladder and are no longer poor based on that definition, foreign aid officials and consultants will likely revise the definition of poverty as earning $3/day/person and conclude that poverty remains high and horrible, and so horrible amount of foreign aid and tax money from rich countries should be needed.

One of my academic friends from UP shared this story with me and other friends. After a USAID-funded poverty research that he conducted, he presented it to USAID officials here in Manila. His opening statement,

"I am not sure about the outcome of these policy recommendations we made. But one thing I am sure of is that before this project, I was somehow poor. After this project, I am no longer poor." And the USAID people were laughing; funny but true.

Add caption

More quotes from Cicero:

1. Laws are silent in time of war... No one has the right to be sorry for himself for a misfortune that strikes everyone.

2. Freedom is a man's natural power of doing what he pleases, so far as he is not prevented by force or law.

3. What gift has providence bestowed on man that is so dear to him as his children?

Welfarism 31: More CCT and Subsidy Programs Won't Solve Self-inflicted Poverty

More welfare and subsidy programs for the poor, are they really needed?

Let us count the existing ones, at least the major subsidy programs:

1. Books and education for the poor, via DepEd, CHED, TESDA, LGUs.
2. Medicines and healthcare for the poor, via DOH, PhilHealth, LGUs, UP-PGH, PCSO/PAGCOR health vouchers, WHO/USAID/WB/ADB foreign aid in health.
3. Housing and relocation for the poor, via NHA, PagIBIG, NHMFC, LGUs, etc.
4. Land redistribution and irrigation for the poor, via DAR, NIA, DPWH, LGUs, etc.
5. Tractors, credit, seeds for the poor, via DA, LGUs, etc.
6. Rural roads and bridges for the poor, via DPWH, DAR, AFP Engg., LGUs, etc.
7. Rice subsidy for the poor, via NFA, DA
8. Train fare subsidy and electric tricycles for the poor, via DOTC, MRT, LRT, DENR, LGUs, etc.
9. Upland and coastal reforestation for the poor, via DENR, BFAR, LGUs, etc.
10. Pension and death benefits for the poor, via SSS, GSIS, LGUs.
11. Condoms and pills for the poor, via DOH, PopCom.
12. Cash transfer for the poor, via DSWD, LGUs.
others.

If these huge and continuing subsidy programs were effective, at least for the first six, there should have been no need for the other welfare programs, especially the conditional cash transfer (CCT) program.

Given this trend of increasing or expanding welfare programs, it will not be far out that soon there will be iPad for the poor and 2nd-hand cars for the poor.

The creation of new welfare/subsidy program means past subsidy programs were either ineffective or failures. If government is less wasteful and more efficient, it should have scrapped or drastically shrank some existing but inefficient subsidy programs, before it invents and implements new subsidy programs.

What is happening now, with the blessings or direct promotion of the UN and its MDGs, is that one welfare after another is being invented and implemented.

People should have more personal and parental responsibility in running their own lives and their households.

Pwedeng painom-inom, yosi-yosi, sugal-sugal, kasi ang edukasyon ng anak at family healthcard ay hindi nila responsibilidad, entitlement nila at dapat ibigay sa kanila? May pambili ng alak at yosi, may pang pusta sa mahjong, sabong at jueteng, pero walang pang contribute sa PhilHealth card?

This is not to say or generalize that all poor people are lazy, drunkards or gamblers. Many are but not all. Poverty can be caused by nature, like a strong typhoon and big flood destroying the house, car/tractor, crops and other assets and investments. Government welfare programs are justified and needed, with time frame.

It is different  when poverty is self-inflicted. Like those who do not want to work, or they work 5 days a week but also party 5-6 nights a week and have zero savings, or spend all of the savings in one or two big party and have nothing or very little left.

In the second case, even if CCT is expanded 10x or 20x what they get now, poverty will persist. Thus, there should be poverty for the lazy and irresponsible, and inequality is not exactly bad as it rewards the hardworking and ambitious and penalizes the lazy and irresponsible.

Meanwhile, this news last week explains why more and forever welfare programs can create moral hazards problem.

http://www.abs-cbnnews.com/video/nation/regions/02/06/15/cct-beneficiaries-told-dont-pawn-cash-cards

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See also:
Welfarism 9: Conditional Cash Transfer (CCT), November 12, 2010 
Welfarism 22: CCT, 4Ps and Central Planning, October 14, 2012 
Welfarism 29: Is Poverty Government Corruption-Created or Self-Inflicted?, October 05, 2014 
Welfarism 30: Big Government and Corruption of People's Values, December 06, 2014

Fiscal Irresponsibility 28: Greece's Public Debt and Populism

The most indebted, most fiscally irresponsible government in Europe, Greece has been hugging international news recently because of its huge public debt, and the huge bail out money given by many governments to  it. This useful chart was sent by a friend, Luz. I think she got this from The Economist, am not sure.

Three years ago, Greece's debt/GDP ratio was already above 150 percent. No sensible economy would dare touch that zone unless the bulk of such debt are domestic, like Japan's.

source: Intl. Business Times,February 25, 2014

Regional economic community (EC) and blocs like the ASEAN EC (AEC) can learn lessons from the case of Greece and the European EC (EEC) so that such mistakes should not be imitated and repeated. Subsidizing a spend-spend-spend, borrow-borrow-borrow economy to protect the regional currency and stability of the whole bloc creates huge moral hazards (dependency, entitlement mentality, related) problems.

source: http://www.bloomberg.com/news/articles/2015-02-02/greece-seeks-third-debt-restructuring-who-s-on-the-hook

(Note: I copied that link and chart this morning. When I checked it tonight, it says "404.Page not found", so Bloomberg took  it down, for some reason/s)

Why is Greece in this deep trouble"

An article from BBC has a good explanation:

Greece was living beyond its means even before it joined the euro. After it adopted the single currency, public spending soared. Public sector wages, for example, rose 50% between 1999 and 2007 - far faster than in most other eurozone countries. The government also ran up big debts paying for the 2004 Athens Olympics.

And while money flowed out of the government's coffers, its income was hit by widespread tax evasion. So, after years of overspending, its budget deficit - the difference between spending and income - spiralled out of control.

source: BBC, Eurozone crisis explained, November 27, 2012

A populist, anti-austerity, socialist-leaning government won last month led by new PM Alexis Tsipras. He talked tough, suggesting that he would call for huge discounts in paying the public debt. But the Finance Ministers of Germany, France, other huge EU lenders countered, "Greece must pay."

With some twist, PM Tsipras agrees to honoring its debt and some spending cuts like "trimming ministerial benefits like cars and selling one of the prime minister's aircraft." Good move then, 

The main problem here and in many other countries is government over-spending, living beyond its means, over-subsidies, over-welfarism and populism. For decades. 

Huge debt is nothing but accumulated wastes and profligacy. If previous spending financed by debt was productive, then the economy should be able to have a balance if not fiscal surplus, and pay back old debt.  

The big question of how to pay that mountain of debt is not so  much addressed to the  new Greek leadership, but the Greek people themselves. Is it too much to ask for huge public spending cuts, especially in  subsidies and  pension, if their government does not have the resources to sustain funding them? If they say Yes, then are they prepared to pay more taxes, more regulatory fees, more mandatory contributions, more fines and penalties?

Most likely people will  say No, or "Yes but tax only the super rich". But the very rich have many ways to adopt. Like negotiating  their way out as they have access to the  best law firms, accounting and  PR firms. Or they can  simply leave the country with their wealth. This already happened in France, when PM  Hollande imposed the 75 percent income tax on people who earn 1 million  Euro a year or more. Many super rich French businessmen surrendered their French passports and  acquired new  ones in Switzerland, Belgium, UK, Russia, etc.

A highly welfarist and  populist government invites lots of corruption. First, in corrupting the people's values, the culture of state dependency and entitlement thinking. Second. in corrupting politicians, legislators and the bureaucracy's values, that over-taxing other people  is ok, it  is  fine,  in  the name of fighting inequality and pampering the culture of envy.

Governments should shrink, spending, taxation and bureaucracies. The public must reclaim their bigger role in  running their own  lives, and the finances to sustain their own lives, their households and communities.
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See also: 
Fiscal irresponsibility 12: More on US debt default, July 28, 2011

Fiscal irresponsibility 17: Cut Spending and Borrowing, September 19, 2011 

Fiscal Irresponsibility 26: On the $1 B Philippine Loan to the IMF, June 27, 2011 

Fiscal Irresponsibility 27: PH's P2.6 Trillion 2015 Budget, June 10, 2014

Pork Barrel 10: Bloated Budget, Wasteful Government, June 02, 2014

Pork Barrel 12: Why DAP is Wrong, July 29, 2014

Welfarism 30: Big Government and Corruption of People's Values

Last Thursday, I went to De La Salle University (DLSU) main campus in  Manila to speak at a class on Development Studies, handled by my wife.

I put here the IPN logo because looking back, IPN  has greatly helped our think tank in guiding us to some policy discussions and advocacies, plus giving us some modest donations. Recognizing their support to us.

Welfarism in my presentation is defined as the political and social belief that individual and parental responsibility should be subsumed or substituted by more government responsibility in improving people’s welfare. So, from education to healthcare, from unemployment allowance to  food stamps, from housing to train fare, from seeds to agri credit, an endless program of subsidies, all financed via high taxes/fees/fines/penalties and endless borrowings.

Welfarism therefore, is giving more powers to governments and their  officials,  elected and appointed. Giving them more spending power and taxation power. Below, an illustration.

Some data, taken from the IMF, World Economic Outlook (September 2014) Database.

Some data on the Philippine government's public debt was also shown. Another illustration below.

Shrinking government -- huge spending on welfarism, taxation, bureauccratism, etc. -- can actually lead to more citizens welfare.

The full 17-slides presentation is available in slideshare. My concluding notes, plus some photos taken by Lee, one of the students who introduced me to the class. Thanks Lee.

1. Welfarism and populism is wrong. Individual and parental/ guardian responsibility should not be subsumed by more government responsibility.

2. Welfarism results in corruption of the people’s values, creates more state dependency and sense of entitlement. The income and investments of hard working people are not entirely theirs, other people are “entitled” to  get a big portion  of it.

3. Governments around the world remain big, or keep expanding. Local, national and international/multilateral government agencies. This means their appetite for more taxes, fees, fines and penalties keep expanding.

4. Existing taxes, fees, fines are no longer sufficient to sustain huge spending by governments. Endless borrowing is  the norm.

5. Almost all governments around the world are indebted, they vary only in the extent of indebtedness. The more welfarist and populist the government, the more  indebted it is.

6. Being indebted is not bad per se. In  cases of  emergencies  and natural  calamities (ex. Big earthquake in 1990, Mt. Pinatubo eruption in 1991), borrow.

7. But  when there are no clear emergencies, governments should have balance budget at least, fiscal surplus if possible and pay back some debt. This is not happening, in most governments worldwide.

8. Fiscal responsibility, governments should learn to live within their means, do not engage in endless borrowings, do not mortgage the future of the next generations.

9. But we must not renege those debt payment, pay them all. The hugeness of the debt and its interest payment is a constant reminder to the current and future administrations that endless borrowing is wrong.

10. Reduce taxes especially personal and corporate income tax, leading to zero income tax. Governments have many other taxes and fees to collect, have many assets to privatize.

11. The promise and hypothesis of “expanding government leads to expanded  welfare” is hardly happening. In most cases, the opposite happens, backward-bending case of diswelfare as government  size keeps expanding.

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See also:

Welfarism 26: John Mangun on Economic Decline of the West, July 31, 2013

Welfarism 27: On Support for Single Mothers and HIV Patients, November 29, 2013

Welfarism 28: Nanny State Cares Too Much for its Citizens, UK Style, May 27, 2014 

Welfarism 29: Is Poverty Government Corruption-Created or Self-Inflicted?, October 05, 2014

Pol. Ideology 58: Democracy, Coercion and Civil Society

Democracy has many definitions and people can reveal their philosophical and ideological leaning based on how they define the word. The most common or even generic definition of democracy perhaps is “power by the people, for the people.” This connotes or implies that  the people have similar if not monolithic interests and goals in society, which very often is not the case.

Another common definition is that democracy is  “rule and will of the majority/people” in society and such majority rule should prevail over the minority. Critics of this definition call this as “mob rule” where the mob act in behalf of the majority, whether real or imaginary majority.

And still another definition is that democracy means “equal participation” by the people either through direct involvement or elected/representative democracy.

A lesser-known definition is that democracy means “respect and tolerance of minority opinions” so that such minority opinion can be heard and discussed without feat of persecution and harassment by the State or other armed groups.

One indicator if people hate democracy is that they want all things to be legislated and forcibly enforced nationwide. Or if a local legislation, those things should be forcibly enforced province-wide or city-wide. Choice is zero as things have been legislated already, with fines, penalties and even imprisonment for violation.

Most legislations and coercion are done to favor one sector and deny the same favor to other sectors as if they are not citizens or taxpayers of the same country. For example, if a new state college or university is created in one province, only students and faculty, officials of that new university will get taxpayers' subsidy while students, faculty, officials of private universities in the same province or big city do not get the same subsidy, as if they and their parents are non-taxpayers of the country.

Or when a legislation or Executive Order was made to subsidize MRT/LRT passengers in Metro Manila, passengers in Ilocos, Cagayan Valley, Bicol, Visayas, Mindanao are not given the same fare subsidy as if they are not taxpayers of the country. That is why legislation that favor one sector but exclude other sectors should be avoided whenever possible. Such practices are actually undemocratic as a big portion of the country's population are excluded from certain favoritism by the state.

Most majority decisions are done outside of government and legislation. For instance, if people want cheaper clothes, cheaper shoes, toys, food, etc., they do not go to the streets to rally and demand that government through DTI or LGUs or Congress should impose price control on clothes, shoes, toys, food, etc. of SM, Robinsons, Rustans, Ayala malls, etc. Instead, many people go to Divisoria, Baclaran, tiangge-tiangge, etc. where cheap goods and services are available with zero politics and government horse-trading involved.

My good Indian friend, Barun Mitra, is correct in saying that for government "democracy has to be minimal, so that it does not offend or alienate too many people."

This implies that the more vibrant the democracy is, the smaller the government should be, where smaller social actors (the smallest actor is the individual, not a clan or trade union, etc.) are supposed to be empowered at the expense of the government. 

Civil society or self-government can be considered as democratic governance. When a Rotary club or Lions club or Jaycees etc. conduct medical and dental mission and give away free healthcare, free medicines even for one day, it already has high impact on the people of a community that received such civil society action. More self-government means less institutional, taxpayers-funded government. They are all part of real democracy.

Barun wrote correctly, 

"Democracy is not about majority rule, but about recognition of and respect for minority opinions. So that the minority view of today, may enjoy the freedom to peacefully persuade others, and could become a majority opinion of tomorrow."

A friend asked, “Can a state be truly democratic? Or democracy exists as its tenacious opposition?”

I suggested that unhampered democracy can lead to socialism and totalitarianism. If the majority will decide that they should eat, have free or subsidized housing, etc. even if they donot work or work very little, then a law will be passed to reflect the will of the majority. Socialism and forced equality is the ultimate result, and since the middle class and upper class will resist, then totalitarianism and strong arm dictatorship will evolve.

The limit to democracy is rule of law. The law applies equally to unequal people. If people want to eat even if they do not work, then all other people should be allowed to not work also, the socialist government can collapse. It can stay afloat by endless borrowing, and/or selling its land and other resources so it will have money to feed people who do not want to work. That is one proof why socialism will never be successful, but many intellectuals and masa want socialism. They want to be the new dictators.

An unfettered or limitless democracy will ultimately result in socialism and totalitarianism and hence, a negation of democracy. Democracy tempered by rule of law -- the law against stealing and destruction of property, law against murder and harming other people, law against abduction and repression of individual liberty -- is ideal. Socialism and totalitarianism can never prosper in that condition.

Can unfettered democracy be the button of self-destruction to all types of states, or the button for further/endless expansion of states and governments? 

Notice that almost all democratic governments around the world, from N. America to Europe to Asia have an expanding public sector, not only at the national or federal level but also at the local (state, province, city, village/barangay) levels. Before, a lazy or irresponsible person will have no money, now he can get cash monthly from the government on top of free education for the kids, free healthcare. Before, it is relatively easy to put up a shop; now one needs to get dozens of permits and pay lots of taxes and fees to officially start a business.

To conclude, unlimited or unchecked democracy can lead to populism, welfarism and socialism. From books and education for the poor, medicines and healthcare for the poor, housing and relocation for the poor, tractors and credit for the poor, electric tricycles and MRT fare subsidy for the poor, cash transfer and condoms for the poor, all of which are existing and implemented, an iPad for the poor, 2nd-hand cars for the poor will not be far behind in the near future. All in the name of democracy, unfettered, populism and welfarism will expand.

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See also:

Pol. Ideology 54: On the Multiple "Death" of Capitalism, March 11, 2014

Pol. Ideology 55: Jules Maaten's Lecture on Liberalism, May 11, 2014

Pol. Ideology 56: Democracy and the Devils, June 11, 2014

Pol. Ideology 57: Radicalism, Islamic Militance and Terrorism, October 03, 2014

Welfarism 29: Is Poverty Government Corruption-Created or Self-Inflicted?

This photo was posted by ANC last July this year, and a friend reposted this in his fb wall. My comments below, plus some comments at the ANC fb page. This is mostly in Filipino, so sorry non-Filipino readers, this is too long to be translated. Nonetheless, the man's t-shirt says, "We are poor, because... they are thieves, Senator, Congressman, Governor, Mayor, Barangay Captain..." 
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Eh bakit naman hingi ng kung ano ano sa gobyerno ang marami sa inyo? Kayo mismo may sabi kawatan halos sila lahat, tapos maski condoms and pills hingi pa sa gobyerno?

Ibang mahihirap, marami naman sa kanila nagta-trabaho. Maski ambulant vendors ng buko, fishball, banana-q, or sari-sari stores, tiangge-tiangge, dumidiskarte sa buhay. Kaso lang, dami permits kailangan. Permit ni Brgy. Capt, permit nila Sanitation dept. and Fire dept, permit ni Mayor, permit ni DTI,...

Pero may iba, gusto lang hingi ng hingi, kasi yon din naman pinapangako ng mga politiko sa kanila. At may problema din madaming intellectuals and middle class. Hindi naman basta hinihingi ng mahihirap, lobby sila ng lobby na dapat daw ibigay sa mahirap. Tulad ng CCT; mga architects and lobbyists nyan mga may PhD in Econ, social welfare, etc. Palakpak naman sila ADB and WB, laki ng kita nila sa CCT loans eh, tig $450 M yata sila na loan each.

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(Some comments at the ANC page. The 2 other photos were posted by other people, I just inserted them here.)

Lui Yuri Lai Lumaki ako sa mahirap na pamilya pero hindi naging hadlang ang aming kahirapan sa aking pangarap na magkaroon ng maganda at komportableng buhay. Nag-aral akong mabuti habang nagsisikap ang aking pamilya na ako ay mapagtapos. Sa awa ng Diyos, natapos ko ang aking pag-aaral. Ngayon, ako ay isang guro sa America. Nakapagpatayo ng magandang tahanan para sa aking mga magulang at ang buhay namin ay maayos at sagana sa mga pangangailangan. Hindi hadlang ang kahirapan sa pag-asesnso sa buhay. Sigasig, tatag ng loob, tamang edukasyon at paniniwala sa Diyos at sarili ang susi.

Questions and comments to Lui and his reply:

1. ang tunay na mahirap, halos hindi makabili ng pagkain... papa ano po kau nkapag tapus ng pagaaral?

– scholarship. I worked hard and studied hard to get to where I am now. I valued my family's effort to send me to school.

2. ok lumaki ka sa hirap nakapagtapos ka nang pag aaral bakit sa America ka nag work? bakit hindi sa pilipinas?

-- Why not? Coming to US to teach is the best thing ever happened to me and my family. It changed my life and the lives of the people I love for a lot better. I taught in the Philippines for 6yrs before coming to US. I have served my country and still doing it a huge favor through my remittances. Philippines is my home and I always love to come back for a visit. But America is the land of dreams and opportunities. And I am reaping what I sow. I enjoy living here.

My family was once poor (when I was growing up) but yet I didn't see my family asked nor blame the government for the life we have. My parents told me and my siblings that "People make their lives. We are the products of our very own life's choices." My Tatang worked day and night to feed us and provide for us. We as a family worked together as a team. We cleaned houses, fetched water for rich neighbors, sold our harvests in the market... My Tatang said "Mag-aral kayong mabuti at maging matalino sa buhay dahil yan ang susi niyo sa pag-asenso. At kapag kayo ay masagana na... Manatili kayong mabuti sa inyong kapwa maging sila man ay mayaman o dukha." I can say na utang ko ang lahat sa aking pamilya na nagpalaki sa akin. Bagamat kami ay mahirap at salat sa maraming material na bagay noong ako ay bata pa, nde kailanman nagkulang ang aking pamilya sa pagmamahal at tamang paggabay sa akin at sa aking mga kapatid... Hindi ang gobyerno o kahit sino ang may hawak ng buhay ng tao... Life is what YOU make it. Your life. Your rules.

3. Batang Logan lahat ng tao may ambition! pero ang taong nagsasabing mahirap sila patunay lang walang ambition sa buhay...ang gusto nila "magic agad".pero taong may ambition sa buhay,hindi hadlang ang kahirapan para matupad ang pangarap....

desesyon ng tao kung bakit gusto nya mag abroad.iyan ay opportunidad nila,diskarte nla yun,labas na ang gobyerno dito..nasa tao naman kung gusto nya mag umasenso sa buhay na hindi umaasa sa gobyerno at hindi lahat nag abroad umasenso mayron din naghihirap pero sa daming dahilan ,kung bakit?...sa totoo lang para sa akin, Ang buhay ay parang sugal ,mapanegosyo,mapa politika,magsaka o kaya pag aabroad lahat ito may puhonan,kailangan lang sipag at tiaga para umasenso sa buhay.kaya wag natin isisi sa gobyerno kung bakit may naghihirap na pilipino sa bansa natin.cguro tamad maghanap ng trabaho o kaya marami umaasa sa palad ng politiko o kaya sa jueting lords.iyan marami hindi nila naintindihan ng mga kababayan natin mahihirap .na tao din nagdadala ng gobyerno kaya kung ang ibinoto mo ay magnanakaw na politiko natural magnakaw iyan dahil babawiin ang puhunan nila sa election .kaya ang masasabi ko mula noon pang martial law hanggang ngaun ay may magnanakaw parin sa gobyerno.pero kaya kailangan sa susunod na election bomoto ka ng tamang politiko para hindi ka magsisi sa huli.dahil ako hindi ako nagboboto after 1998 election hanggang ngaun.kahit 10yrs na wala akong trabaho noon as in tambay ,kahit halos kamag anak ko nakaupo sa pwesto sa lugar namin hindi ako himihingi ng tulong o umasa sa kanila...

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See also:

Welfarism 25: Centenarians and Populist Legislators, May 30, 2013 

Welfarism 26: John Mangun on Economic Decline of the West, July 31, 2013

Welfarism 27: On Support for Single Mothers and HIV Patients, November 29, 2013

Welfarism 28: Nanny State Cares Too Much for its Citizens, UK Style, May 27, 2014

Welfarism 28: Nanny State Cares Too Much for its Citizens, UK Style

A welfare and nanny state will ultimately over-extend its "care" for the citizens. Spy, stop and penalize them because it cares for them so much. This is from a Filipino-British friend living in UK, he wrote this yesterday.

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We now have a heavy police presence. There are frequent checkpoints with teams of maybe 10-20 police, their vans, cars and motorbikes spread out along the road. They randomly check motorists to make sure their papers are in order. I have never seen this as part of normal police procedure in the UK. Now it's like an every day thing.

The other day they stopped two buses and had police checking IDs and questioning passengers. It's difficult to describe how unusual this is if you've never lived in the UK. But people don't seem to care. I'm sure they are comforted by it. You have to understand that these are not like Philippine checkpoints. They have mobile computers linked to their databases where they can check your details and past history.

Last month we were all in the car with my dad driving. We were stopped because the policeman saw that my daughter wasn't using an approved child car seat. The policeman took photos of the whole car with everyone in it. He crawled around (yes, crawled around the car!) inspecting underneath, checking tire pressure and looking for other violations. (Do you see a Philippine cop doing that?) He then put my dad's ID into his computer and found a tax violation. The tax on our car had expired the week before and my dad had forgotten to renew it. Bam...two fines and a warning for a soft tire. Total cost: £160 (appox. Php12,000). You can pay online. Further, he made us to go to the nearest car shop to buy an approved child car seat before we could continue with our journey.

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I told my friend that it's indeed discomforting. As societies modernize, the degree of individual freedom -- freedom to be wise or unwise, to innovate or commit mistakes -- should expand, not decrease. Here. freedom of mobility of people is curtailed, they can be stopped by the police anytime anywhere even for no apparent traffic violation. It would seem that those in the Philippines and other developing countries have higher degree of freedom in this respect.

Two friends made these comments when I posted this in Government and Taxes, Liberty and Responsibility fb group.

(1) technology minus liberalism = orwell's worst nightmare.

a step-by-step strategy, the ultimate aim of which is to treat all citizens as potential law breakers and to criminalise as many citizens as possible? the more of this i see, the more radical my libertarian convictions become

(2) Am surprised to hear that from a brit--I've always known that compared to the US, UK has always had tighter "monitoring" of its citizenry & residents. Even pet dogs' barking is controlled in Central London!

If even a Beatles' impromptu rooftop concert at a city building was cut short by London police as it was causing some commuter distraction (not even traffic), it's not surprising that things have come to this. And these are just visible physical signs of police presence. In London, all TV and cable is registered--one cannot simply install one's own unregistered device without being found out. Even immigration keeps a close tab of all foreign residents & visitors--overstaying without being penalized is practically unheard of in this country. These are less visible signs (am not even talking about Snowden's revelations) but definite proof of tighter & more sophisticated control in a seemingly free world.

More news links that my British-Filipino friend posted. (1) From The Guardian last February 7th.

Police stopped nearly 250 drivers during a crackdown.

A total of 242 vehicles were pulled over by the police, two of which were seized, during an operation on Wednesday, February 5, in Sutton.

One driver was arrested for drink driving, one received a cannabis warning and two are due to be summonsed to court for having unroadworthy vehicles.

Another driver was fined and received penalty points for having a bald tyre and one was fined for not wearing a seatbelt.

Officers used automatic number plate recognition to target uninsured, untased and unregistered vehicles. Safer Neighbourhoods Insp Ian Hicks said: "This operation and others like it are all about catching criminals, deterring criminal activities and keeping the streets safe. These operations will continue and you will be caught if you don't have insurance or the correct insurance."

(2) From The Guardian's youtube clip, Stop and search: police battle for controlof London's streets. My friend made these two observations:

(1) As expected, the community, even while they were victimised, supported the powers as a necessary thing. Just listen to them and the cognitive dissonance is glaring.

(2) The motorist stops I described above must obviously be an extension to the 'Stop and Search' protocol. They tried it, liked it, and wanted to extend it into other areas. Anyone who says that the slippery slope fallacy is an invalid argument probably have never slipped down that slope themselves.

Meanwhile, another new development in UK. From WUWT.

UK’s only climate skeptic party crushingly wins the EU election

By Christopher Monckton of Brenchley

The United Kingdom Independence Party, the only climate-skeptical party in Britain, has scored a crushing victory in Sunday’s elections to the Duma of the European Union.

Britain’s most true-believing party, the Greens, won one or two new seats, but the second most true-believing party and junior partner in the Children’s Coalition that currently governs at Westminster, the “Liberal” “Democrats” (who are neither), were all but wiped off the map.

The European Duma, like that of Tsar Nicholas II in Russia, has no real power. It cannot even bring forward a Bill, for that vital probouleutic function is the sole right of the unelected Kommissars – the official German name for the tiny, secretive clique of cuisses-de-cuir who wield all real power in the EU behind closed doors….

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See also:

Welfarism 24: Comments on the Kasambahay, Solo Parents Bills, December 03, 2012 

Welfarism 25: Centenarians and Populist Legislators, May 30, 2013 

Welfarism 26: John Mangun on Economic Decline of the West, July 31, 2013

Welfarism 27: On Support for Single Mothers and HIV Patients, November 29, 2013

Globalization, Mobility and Inequality, February 18, 2014

Welfarism 27: On Support for Single Mothers and HIV Patients

Two stories here illustrates why state welfarism causes adverse selection problems. This problem shows when the things that are supposed to be avoided come out as a result of the government intervention.

Case one is giving long term child and family support for single mothers, USA. So more young women turn up getting pregnant with no husbands. Case two is giving monetary support plus other healthcare benefits for HIV patients, so some people injected HIV virus in their body to be entitled to these benefits.

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(1) From Capitalism facebook page:

An emergency room physician told me that a woman in her late 20's came to the ER today with her 8th pregnancy.

She told the first doctor she saw: "My Mama told me that I am the breadwinner for the family." He asked her to explain. She said that she can make babies, and babies get money from the State for the family. It goes like this:

The Grandma calls the Department of Child & Family Services, and states that the unemployed daughter is not capable of caring for all of her kids.

DCFS agrees, and tells her the children will need to go into foster care.

The Grandma then volunteers to be the foster parent, and receives a check for $1500 per child each month in Illinois.

Total yearly income: $144,000 tax-free and nobody has to go to work!
In fact, they get more if there is no husband/father/man in the home!

Not to mention free healthcare (Medicaid), plus a monthly card entitling them to free groceries and a voucher for 250 free Obamaphone minutes each month. This does not include WIC and other welfare benefits...that they are "entitled" to. Indeed, Grandma was correct that her fertile daughter is the "breadwinner" for the family.

This is how the liberal politicians spend our tax dollars. When this generous program was invented in the '60s, the Great Society architects forgot to craft an end date... and now we are hopelessly overrun with people who vote only for those who will continue to keep them on the dole....

No wonder our country is broke!

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(2) From RT, November 26, 2013, http://rt.com/news/greece-hiv-euro-benefits-298/

…The WHO report ‘Review of Social Determinants and the Health Divide in the WHO European Region’ concludes that the staggering levels of unemployment and mandated financial austerity have hit European citizens hard, especially those in Greece, where the jobless level stood at 27 percent in September.

The economic crisis that began in 2008 has “exacerbated” health problems in parts of Europe, exposing “stark social and economic inequities within and between countries.” Greece is the hardest hit, with the country’s economy shrinking to the point of nearly knocking it out of the eurozone completely.

The report published last week says the HIV rates in Greece have risen “significantly” since 2008. It estimates about half of new HIV infections are self-inflicted “to enable people to receive benefits of 700 euro per month and faster admission on to drug-substitution programs.” 

However, The Press Project has pointed out an inaccuracy in the WHO report, saying the organization was not correct while quoting a 2011 study published in the Lancet, which “described accounts of deliberate self-infection by a few individuals,” but did not give exact statistics -  “about a half,” as stated in the recent report. 

An hour later same day, this news from the same RT came out.

The WHO has mistakenly over exaggerated the data in its recent report on Greece, stating that half of new HIV cases are self-inflicted to receive benefits. The organization has apologized saying it was due to an editing error.

“The sentence should read: ‘half of the new HIV cases are self-injecting and out of them few are deliberately inflicting the virus’,” the WHO (World Health Organization) said in its correction. 

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While the goal of the policy is noble, to help those who are suffering from HIV disease, it is an opportunity that some people, desperate or not, can grab to make money. When you support or encourage something, more takers will come. If you discourage something, less takers will come. One more reason why BIG government and state welfarism is inefficient.

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See also:

Welfarism 23: Letter to Sens. Cayetano and Pangilinan on Solo Parents Welfare, October 23, 2012 

Welfarism 24: Comments on the Kasambahay, Solo Parents Bills, December 03, 2012 

Welfarism 25: Centenarians and Populist Legislators, May 30, 2013 

Welfarism 26: John Mangun on Economic Decline of the West, July 31, 2013

Pol. Ideology 51: Liberalism is Not Welfarism, September 17, 2013