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Reply #24: If only he were a Friedmanite [View All]

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salvorhardin Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-12-10 09:01 PM
Response to Reply #12
24. If only he were a Friedmanite
Milton Friedman was the originator of the idea of the negative income tax. You may recall that both Nixon and Moynihan championed replacing welfare programs with a negative income tax that would be enough to raise a person or family above the poverty line. Of course, what we got instead was the much watered down compromise of the Earned Income Credit.

Market forces can accomplish wonderful things, he realized, but they cannot ensure a distribution of income that enables all citizens to meet basic economic needs. His proposal, which he called the negative income tax, was to replace the multiplicity of existing welfare programs with a single cash transfer say, $6,000 to every citizen. A family of four with no market income would thus receive an annual payment from the I.R.S. of $24,000. For each dollar the family then earned, this payment would be reduced by some fraction perhaps 50 percent. A family of four earning $12,000 a year, for example, would receive a net supplement of $18,000 (the initial $24,000 less the $6,000 tax on its earnings).

Mr. Friedmans proposal was undoubtedly motivated in part by his concern for the welfare of the least fortunate. But he was above all a pragmatist, and he emphasized the superiority of the negative income tax over conventional welfare programs on purely practical grounds. If the main problem of the poor is that they have too little money, he reasoned, the simplest and cheapest solution is to give them some more. He saw no advantage in hiring armies of bureaucrats to dispense food stamps, energy stamps, day care stamps and rent subsidies.
http://www.nytimes.com/2006/11/23/business/23scene.html



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  -So is Obama a closet conservative or poor negotiator? Still a Democrat  Dec-12-10 07:23 PM   #0 
  - Closet?  Edweird   Dec-12-10 07:24 PM   #1 
  - Exactly...  NorthCarolina   Dec-12-10 07:33 PM   #5 
  - He is neither, IMO. n/t  elias49   Dec-12-10 07:24 PM   #2 
  - he's a compromised politician  fascisthunter   Dec-12-10 07:25 PM   #3 
  - He is miles from liberal.  yourout   Dec-12-10 07:29 PM   #4 
  - He's a good negotiator  alcibiades_mystery   Dec-12-10 07:37 PM   #6 
  - Deleted message  Name removed   Dec-12-10 08:35 PM   #21 
  - At this point  Sherman A1   Dec-12-10 07:39 PM   #7 
  - The label doesn't matter  Blecht   Dec-12-10 07:44 PM   #8 
  - Closet?  Better Believe It   Dec-12-10 07:47 PM   #9 
  - I do not believe that Obama is a poor negotiator.  Laelth   Dec-12-10 07:48 PM   #10 
  - When he campaigned he said he would look into NAFTA. Still  B Calm   Dec-12-10 07:56 PM   #11 
  - He's a Friedmanite Chicago School neoliberal.  scarletwoman   Dec-12-10 07:57 PM   #12 
  - Yep, you nailed it.  bemildred   Dec-12-10 08:03 PM   #14 
  - He appears to be succeeding.  Edweird   Dec-12-10 08:09 PM   #16 
  - yep.  Little Star   Dec-12-10 08:57 PM   #23 
  - If only he were a Friedmanite  salvorhardin   Dec-12-10 09:01 PM   #24 
  - Open conservative/closet regressive.  TheKentuckian   Dec-12-10 07:58 PM   #13 
  - Openly conservative/ closet neoconservative. nt  Lorien   Dec-12-10 08:07 PM   #15 
  - Clearly he's out of the closet now. nt  TBF   Dec-12-10 08:19 PM   #17 
  - Not Closet...Overt. We been had....  lib2DaBone   Dec-12-10 08:20 PM   #18 
  - He's not liberal enough to negotiate well.  rucky   Dec-12-10 08:29 PM   #19 
  - Why not both?  leeroysphitz   Dec-12-10 08:33 PM   #20 
  - He believes politics is the art of the possible?  stray cat   Dec-12-10 08:43 PM   #22 
 

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