SOMETHING FOR NOTHING ENDS WITH LESS THAN NOTHING

By Domenick J. Maglio PhD Neo Traditionalist

November 17, 2008

In 1916 Rev. J.H. Boetcker wrote “The Ten Cannots”. These “Cannots” still ring true especially in our current economic meltdown.

   1. You cannot bring about prosperity by discouraging thrift.

   2. You cannot help small men by tearing down big men.

   3. You cannot strengthen the weak by weakening the strong.

   4. You cannot lift the wage earner by pulling down the wage payer.

   5. You cannot help the poor man by destroying the rich.

   6. You cannot keep out of trouble by spending more than your income.

   7. You cannot further the brotherhood of man by inciting class hatred.

   8. You cannot establish security on borrowed money.

   9. You cannot build character and courage by taking away man's initiative and independence.

  10. You cannot help men permanently by doing for them what they could and should do for themselves.

There should be another “Cannot” Number 11, added to this list.

   11. You cannot build national prosperity by giving mega companies and 40% of the citizens something for nothing.

It appears that almost everyone except our national leaders know that when people are given something without earning it they do not appreciate and just waste it. They might have won the lottery or received an inheritance or a substantial job promotion because of their good looks, their friends or ability to con others. Sometimes we even are dumb enough to be envious of what seems to be their good fortune. These people who have not earned and sacrificed for what they have been given, place little value on it. In a short interval they blow the money ending in a worse financial and psychological state than they were before.

AIG, the world’s largest and most notorious insurance company insists on having outrageously expensive retreats in luxurious settings with $87 billion of taxpayer’s money. AIG continues its addiction to non-prudent business practices. It asked for more bailout money because “it is too big to fail.” It has received yet another bailout totaling $150 billion. This is not capitalism it is incompetent socialism.

A small businessman faced with a red bottom line would have to do the opposite of AIG. He would have to review his policies, cut back on discretionary spending, decrease his personal income and reluctantly lay off employees in order to turn a profit. The past reality was if he did not place his business in the black he would be out of business. Even if the business failed, self-reliant people would learn a lesson that would help them be more successful the next time.

In this chaos of bailouts the small entrepreneur would not be able to learn from the “school of hard knocks”. He might hold out hope that the government would give him a present too. A handout would stop innovation plus feed the addiction to other’s money. In the same way people who have blown their lottery winnings or inheritance bonanzas often expect family and friends to subsidize the above-their-means lifestyle. Eventually, like any addict, the people close to them get tired of their whining and back off to let them crash back into reality.

Unfortunately our government is not ready to say “enough.” The corporate and government elites who are directly involved with the embezzlement of our treasury are receiving no criminal or financial consequences under our present approach.  Forty percent of all potential taxpayers, the lower class, do not pay federal income tax and will not care about the destruction of our currency as long as they keep on receiving checks from the government.

We need to get government out of attempting to micromanage the economy by changing the rules as they go along. By not allowing businesses to fail we are encouraging bad business practices and discouraging corrective actions. Our financial institutions, international insurance companies, the automobile industry, state and local governments and our next bailed out industry will continue to have its hands out for more and more money. The lower class will gladly take another stimulus package to spend someone else’s money for their Christmas gifts. Everyone would line up. They are creating a bottomless pit. “Something for Nothing” economic policy will cause many hardworking middle class innocent bystanders to wind up with worthless money and savings. Continuing down the path of printing more money to save undeserving corporations while paying off the poor to keep them quiet and happy will end in an economic collapse.

United States citizens must denounce our present disastrous economic enabling greed. The middle class that has the majority of the tax burden will demand holding our government and corporate elites accountable. The middle class revolt will force our elected and corporate leaders to stop their manipulation of the market.  These elites will no longer be able to protect the poorly run companies from suffering the consequences of their actions. These companies that have discarded their competitive edge will make the necessary changes under Chapter 11 or go bankrupt like any other failed venture. The well-run businesses will not only survive but also grow and prosper.

You cannot build economic prosperity by giving mismanaged entities something for nothing. Stopping government influence peddling for money will unleash capitalist principles to keep our economy free and viable.

Dr. Maglio is the author of Invasion Within and Essential Parenting.  He is a psychotherapist and the owner/director of Wider Horizons School.

Visit: www.drmaglio.com.