Acton Institute Powerblog

Trickle-Down Welfare Economics?

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icon_22372Over at NRO, Thomas Sowell takes on what he calls the “lie” of “trickle-down economics.” Thus, writes Sowell, “the ‘trickle-down’ lie is 100 percent lie.” Sowell cites Bill de Blasio and Barack Obama as figures perpetuating the “lie,” along with writers in “the New York Times, in the Washington Post, and by professors at prestigious American universities — and even as far away as India.”

But we should also note that “trickle-down theories” get a mention in Evangelii Gaudium, too: “some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world.”

In the midst of his discussion, Sowell asks the following penetrating questions:

Why would anyone advocate that we “give” something to A in hopes that it would trickle down to B? Why in the world would any sane person not give it to B and cut out the middleman?

Whether or not there is such a thing as “trickle-down economics” in the discussions about the market economy, isn’t there something akin to what Sowell asks about at play in usual redistributive welfare programs? Don’t we “give” something to governmental bureaucracies and agencies in the hopes that they will in turn redistribute it (hopefully in more than a trickle) to the poor?

And as for the “trickle” part of trickle-down welfare economics, Juan de Mariana long ago observed that “money, transferred through many ministers, is like a liquid. It always leaves a residue in the containers.” So why not give directly to the poor and cut out the middleman, as Sowell wonders?

That’s precisely the discussion that’s been going on over at the Bleeding Heart Libertarians blog, among other places, about direct cash transfers to the poor instead of bureaucratic welfare programs. Head on over to the BHL blog to check it out.

A Treatise on the Alteration of Money

A Treatise on the Alteration of Money

 Mariana explains how government, if given control of other forms of private property, would also debase the values of those forms and use them according to its own interests.

Jordan J. Ballor Jordan J. Ballor (Dr. theol., University of Zurich; Ph.D., Calvin Theological Seminary) is a senior research fellow and director of publishing at the Acton Institute for the Study of Religion & Liberty. He is also a postdoctoral researcher in theology and economics at the VU University Amsterdam as part of the "What Good Markets Are Good For" project. He is author of Get Your Hands Dirty: Essays on Christian Social Thought (and Action) (Wipf & Stock, 2013), Covenant, Causality, and Law: A Study in the Theology of Wolfgang Musculus (Vandenhoeck & Ruprecht, 2012) and Ecumenical Babel: Confusing Economic Ideology and the Church's Social Witness (Christian's Library Press, 2010), as well as editor of numerous works, including Abraham Kuyper Collected Works in Public Theology. Jordan is also associate director of the Junius Institute for Digital Reformation Research at Calvin Theological Seminary.

Comments

  • Simple Man

    The trickle-down effect is in full play with the FED’s QE programs which are pumping billions to the banks while the average Joe gets no help. The rich get richer under the guise of ‘economic stimulus’…