Wednesday, March 23, 2016

Connection between Politics, Greed and Rape of Social Justice



What happens when you couple Tammany Hall with social justice? Tammany Hall was the Democrat Party’s political machine.


Tammany played a major role in controlling New York city and state politics by providing social justice to immigrants, most notably the Irish, from 1864 until 1933. Tammany Hall became a facilitator for immigrants, helping them become naturalized citizens.


During the Tweed regime, naturalization committees were established, made up of Tammany operatives. They did the paperwork, provided witnesses, and advanced the fees required for citizenship. Public officials were bribed or otherwise compelled to cooperate. In return, immigrants dutifully supported Tammany candidates.


As a “Mick” myself, it’s hard for me to get too upset with the state doling out money to deserving Irishmen -- like myself! I can easily see that what Tammany did for the Irish was sage politics. A lot of Irishmen, just off the boat, got a lot of help for the meager price of their vote.


So just how, does Tammany Hall corrupt something as noble as social justice?


Imagine that every year, for five years, as an act of Christian charity, you donate $10,000 to your church, but that in the sixth year, you make no donation. Your church, however, has become
dependent on your annual donation. Without it, it will be forced to cut important programs. Does your church have a right to sue you to force you to donate $10,000 in year six? If your annual donation is a “gift,” the answer is, “no.”


Social justice is the Catholic Church’s effort to extend the duty of Christian charity beyond the individual to the society. The state (society) should provide “the conditions that allow ... individuals to obtain what is their due.” Society should act so that “each should receive what he needs from others.” The state should “reduce ... economic inequalities” and eliminate ‘sinful inequalities.” But what exactly is their due? Their needs from others? Excessive economic inequality? “Sinful inequality?


The state’s primary tool to ensure that each receives what he needs from others is income redistribution via taxation. Taxation is also the primary tool to reduce excessive economic equality, and to “eliminate sinful inequality.”


But taxation involves taking money from the one who earned it, and giving it to one who didn’t earn it. And while taxing to provide what is truly needed or to eliminate excessive income inequality can be justified as social justice, taking one cent more is plunder.


There is a selflessness inherent in Christian charity which is soon lost in Social Justice. The state, unlike the individual, has no soul -- has no expectation of heavenly reward. Accordingly, the political parties rather than looking for eternal reward, look instead for something temporal -- votes. Votes may not be a formally bargained for “consideration” -- but votes, as in the case of Tammany, quickly become the anticipated quid pro quo.


Politics and greed sadly have a corrosive effect on social justice. Rerum Novarum never contemplated employers paying living wages to workers who opted not to work. Leo XIII’s encyclical does not deal with society’s duty to provide perpetual welfare benefits to the able-bodied who chose not to work. (I am not referring to the disabled).



What came to be known as a living wage required reciprocity; the worker had a co-relative duty to fully and faithfully perform the work which has been freely and equitably agreed upon.


There are obvious problems with social justice income redistributions. If the state has a duty to make redistributions, the recipient seems to have a co-relative right to receive them. In time, that right comes to be understood as inalienable.


What is due or necessary, in time, always comes to mean more. What is excessive inequality, obtains a more expansive definition as the recipients increase in political power. And the worker is despoiled of the fruits of his labors.


Christian charity is an act of loving one’s neighbor. Today’s income redistribution aspect of social justice has little in common with love of neighbor. It has become the tool with which cynical politicians use other peoples’ money to buy votes.


Jack Kennedy told us, “ask not what your country can do for you; ask what you can do for your country.” Bernie Sanders and Hillary Clinton, 50 years later, say, “Vote for me and your country will give you free everything.”


Posted March 22, 2016 QCOline.com


Copyright 2016 John Donald O'Shea

Friday, March 11, 2016

Why America needs another Jack Kennedy

The nation is $20 trillion in debt. What is the best way to cut the deficit, while funding necessary government programs?
Bernie Sanders wants to raise taxes on the rich and on wealthy corporations. Jack Kennedy espoused cutting personal and corporate income taxes across the board.
                           (Note: This op-ed assumes existing tax rates.)
Assume a corporation has net income of $100,000, and pays taxes at the rate of 25 percent. If you increase it to 30 percent, you will seemingly increase government tax revenues. That's Sanders' idea. In that example, he would leave the corporation with $70,000 after-tax income as opposed to $75,000. But every dollar of net income taken for taxes is $1 less available to the corporation for expansion, hiring employees or paying dividends.
Sanders is demanding the wealthy and large corporations pay their fair share (i.e., more) in taxes. But he would reduce corporate net incomes by increasing the federal minimum wage to $15. He would further reduce net income by requiring employers to provide at least 12 weeks paid family and medical leave, two weeks paid vacation, and seven paid sick days.
Additionally, he promises to invest $1 trillion to put 13 million people back to work. And another $5.5 billion to provide jobs for disadvantaged youth. He would spend unspecified billions, providing Medicare  as a right of citizenship. He'd provide free universal health care, prekindergarten programs and college tuition.
Jack Kennedy, believed lower tax rates would create substantial increases in corporate net  income. The government would take in substantially greater tax revenues because it would be taxing on substantially larger net incomes. Expanding businesses hire more workers who pay income tax. If you hire 40 of the 96 million unemployed, and if they each pay $1,000 in income taxes, that results in increased government revenues, and decreased welfare payments.
President Kennedy, speaking to the Economic Club of New York (Dec. '62), said:
 "There are a number of ways by which the federal government can  [encourage] ... economic growth.
 "The most direct and significant ... is to make possible an increase in private consumption and investment demand.
"The ... best means of strengthening demand among consumers and business, is ... an across-the-board, top-to-bottom cut in personal and corporate income taxes ...
"Our present tax system ... siphons out of the private economy too large a share of personal and business purchasing power ... It  reduces the financial incentives for personal effort, investment, and risk-taking.
"To increase demand -- lift the economy, the federal government's most useful role is not to [increase] in public expenditures, but to expand the incentives and opportunities for private expenditures.
"Consumers are spending between 92 and 94 percent of their after-tax income ...  After-tax income could and should be greater  .... When consumers purchase more goods, plants use more ...  capacity, men are hired instead of laid-off, investment increases, and profits are high."
President Kennedy concluded:
"The lesson of the last decade is that budget deficits are ... caused by ...  slow economic growth and periodic recessions ... (and not by lower tax rates).
"Our practical choice is not between a tax-cut deficit and a   budgetary surplus. It is between two kinds of deficits: a chronic  deficit of inertia, as the unwanted result of inadequate revenues  and a restricted economy, or a temporary deficit of transition,   resulting from a tax cut designed to boost the economy, increase  tax revenues, and [ultimately] achieve ... a budget surplus.
Mr. Sanders blithely promises everything to everybody, seemingly unaware  there is no free lunch, oblivious to the fact that reduced corporate net income" equal reduced federal tax revenues -- the very revenues he needs to play Santa Claus.
Every dollar siphoned off for taxes or  new benefits is one less dollar the corporation can expend on hiring, plant expansion, modernization or dividends. Dollars paid to new employees,  expansion laborers and dividends, all increase income tax revenues.
Moreover, if corporate taxes are raised too high, plants close, workers are laid off, no dividends are paid, there is no net income to tax, and government revenues decline.
It is an undeniable truth that "the power to tax, is the power to destroy." If man earns $1, and the government takes that $1 in taxes, the man has nothing left. So why would the sane man work to earn a second dollar?
Want plant closures and more unemployment? Vote for Bernie. Want a thriving economy, vote for the next Jack Kennedy.

Posted: March 10, 2016. QCOnline.com
Copyright 2016,  John Donald O'Shea