I OPINION Page 4 Wednesday, October 27, 1982 The Michigan Daily - - ' 1 - 1 ., - 6 Who really keeps the poor impoverished By Dan Aron off Much debate has taken place recently over what types of government policy benefit the wealthy and what types benefit the poor. Although the Reagan administration has been accused of being a lackey for the well-to-do (a recent study of top administration officials revealed that they were rich. white. and male). it may prove helpful to expose the types of policies that confer wealth and power on the elite and affluent in our society. Here is a partial list of such policies: 1. Guaranteed Student Loans and aid to higher education. The present student loan system benefits the children of the middle and upper classes, since the loans-subsidized though they may be-are still beyond the reach of most poor people. Most forms of aid to higher education are, in effect, a net transfer of wealth from the average taxpayer to more affluent in- dividuals when the future earnings of students are taken into account. 2. Social Security. Social Security is a forced annuity program. It is in no sense an insurance program-individual payments do not pur- chase equivalent actual benefits. It is a com- bination of a particular tax-a flat-rate tax on wages up to a maximum-and a particular program of transfer payments, in which all sorts of considerations other than the amount paid determined the amount received. Hardly anyone approves of either part of the system separately. Yet the combination has become a sacred cow. 3. All forms of welfare state social programs. Instead of simply giving poor people money- like a negative income tax or guaranteed in- come scheme-the welfare state creates "programs," which allow whole armies of bureaucratic administrators to rule over other people's lives. It's like playing chess with poor people-the recipients of welfare state benefits must conform to the ideological preconceptions of their superior elitist administrators. Banish the thought of just giving money to the poor. Our social reformers and moral crusaders will not allow it. And even most of the money that is supposed to go directly to the poor never actually reaches the poor. In fiscal year 1981, something like $250 billion was spend on social programs at the federal, state, and local levels. If all of that money had gone directly to the poor, then every family of four that earned less than the poverty level income would have received bet- ween $54,000 and $57,000 in cash. Obviously, this did not happen. What happened was that somebody else got their hands on the money before it got to the poor. Guess who. 4. Environmentalism. As one commentator put it, "The Sierra Club arranges many kinds of trips, but its speciality is the ego trip." To the rest of us, Sierra Clubbers and other woodsy types are just another special interest group doing their own thing. But they do not view themselves as a special interest group- they see themselves as the guardians of the en- vironment, or the "eco-system." Who appointed them guardians? God? The Constitution? Or has there been some election, referendum, plebescite, proxy vote, coronation, or other procedure investing them with the right to override other people's wishes in favor of their own? Even the most laissez-faire economist will admit that air and water pollution require government action. But there is a difference between taking direct action against pollution and using pollution as an excuse for a massive expansion of a fanatic minority's political power. These people are on the inside looking out. As one cynic puts it, ". . . Sierra Clubbers are overwhelmingly high-incomed professionals. Faded jeans and all, they are monied people using the government to take things from others to satisfy a special interest group." They oppose economic development because they have already reaped its benefits and now want to preserve their ground. Average, grub- by mortals are being kept away from choice property so that our elites can dwell in splendid isolation. 5. Statism. It seems that many of the children of the affluent-the "new class" of socialist- minded intellectuals, professionals, and bureaucrats-and the establishment elites of the business world have convergent goals where the issue of state control of the economy is concerned. The "new class" wants to gain ,control in order to reshape the whole society. Successful business people want to guarantee their continued prosperity by eliminating com- petition and politicizing the economy, so they can rest assured that the government will patronize them. A centrally administered economy-in other words, a coercive authoritarian order-serves the interest of those already at the top. They can assure themselves a niche in the hierarchy of wealth and power (although the whole economy will most assuredly stagnate and decline). These elitists flock to politicians like the neo- socialist Ted Kennedy or the neo-corporate syndicalist (I speak literally here) Paul Tsongas. They tend to favor statist economists like John- Kenneth Galbraith and Lester Thurow. And they think highly of anti-capitalist technocrats from the business community like Lee Iaccoca, and Robert McNamara. Their at- traction is based on crass snob appeal, not in- tellectual appeal. This list of policies benefitting the elite is partial and incomplete. A clear pattern, however, does emerge. The pattern shows that policies generally associated with "campus liberalism" actually grant power to the elite and to those who populate campuses-the rich, the intelligentsia, the social elite, the children of affluence. For those of us who reject this hypocrisy and who want to see a world where life, liberty, and the pursuit of happiness exist equally for everyone, all we have are our ideals. Still, there is hope. The masses of humanity continue to vote overwhelmingly for liberty with their blood and their feet. They fight and leave places like Poland, the Soviet Union, China, South Africa, Haiti, and other places where darkness and brutality reign. They risk life and limb to enter places where the flame of freedom is still lit. There is a name for that social order that protects liberty, promotes prosperity, and gives a reasonable chance to the common man. It is called liberal democratic capitalism. That's right, capitalism. Shocking, isn't it? Aronoff, a studying at Economics. University junior, currently is the London School of Edited and managed by students at The University of Michigan Stewart NIOW ML G "p1- ._,- _--, / .. .- Vol. XCIII, No. 42 420 Maynard St. Ann Arbor, MI 48109 Editorials represent a majority opinion of the Daily's Editorial Board Winning through inanity i BEFORE THE obligatory round of election endorsements begins, we'd like to give a hearty round of boos to one election issue that has reached new heights of stupidity-television. campaign advertising.r This year sprouted such classic elec- tion commercials as Sen. Donald Riegle's televised stroll through his hometown. Viewers got to meet Don, Don's wife, Don's parents, and Don's old neighborhood (full of }wholesome, healthy, just plain folks like you and us). And that's the dignified stuff. Republican candidates Richard Headlee and Philip Ruppe prefer to sling the mud, not the sap. Ruppe charges that his opponent Riegle is the most disliked man in the Senate (gee, and his family looked so nice). Headlee, in his titillating race for governor, places a nice, smiling pic- ture of good ole Dick next to a dour, frowning portrait of opponent James Blanchard. Blanchard, by the way, is looking away-just like he ducks those issues, right Dick? Then a Michigan mitten comes on the screen and gives Blanchard the big thumbs down. Proposal D-now there's an insight- ful, probing commercial. A forlorn fac- tory worker glumly gives a spiel something like, "D is dumb. D will make me lose my job. D will drive business out of the state." D will do everything, it seems, from kick your dog to dig your grave. Just what is D? A rash proposal to turn over top state offices to the Hells Angels? You'd never know from the ad. It never men- tions anything about changing procedures on utility rate increases- D must be too dull to explain. These commercials are innocuous and inane. That's their strong point. They insult the eyes, the ears, and the mind-not necessarily in that order. They never bring up an issue, those complicated things that voters can't deal with. But they do have lots of nice photography and state-of-the-art graphics. They let voters choose can- didates just like they choose bleach- by the pretty label. Things are looking up, though. Those high-priced TV rates are driving some candidates out of the market. Ruppe recently had to cancel $60,000 of TV spots-something that may wind up winning him a few votes from ad- weary citizens. But from the rest of the representatives and proposals and judgesand county commissioners,the ads keep on coming. Thank goodness for November 2. It'll be nice to watch Johnny Carson again without sitting through all those special prepaid political guests. I UNIVERSITY S A U t A. r o lO c o y -A IVRAL 5CgDt1G, i / 1 / f f r t, _: __ _ _ _ __ --. - - -- --.---- .__ _ - -.e=. " r 5 rI . fe A V4 J Y J ... -. - LETTERS TO THE DAILY: The ignorance of miitary research I To the Daily: Let's salute America, Peter Ford. In your article (Daily, Oct. 20) supporting military research,+ you successfully spouted the arguments of our country's + militarists for technologically advanced armed forces. You seem to consider the U.S. military faultless with its grand + designs of building stronger and + stronger "deterrent" forces through the support of university 1 research. You also claim that to question this research is ignorant An importa To the Daily: There are several reasons that I would like to share with your readers as to why the upcoming election is important: * For the first time in our history, we as citizens will be able to express our opinions on the nuclear arms race. The nuclear freeze proposal will cer- tainly let our Washington policy makers know whether we want the present ever-continuing and liken it to a crime against the state. To put the academic-military connection in that perspective is itself ignorant and, for an engineer and ROTC cadet as yourself, dangerous. You correc- tly named some technological advancements that were developed through Department of Defense support. It is probably true that without military sup- port, these innovations would still be on the drawing boards of researchers. nt election basically anti-government. He makes complicated issues sound simple and offers solutions which sound good when first heard but when examined more closely are bound to be porous. His support of the 1980 Tisch tax proposal, which would havedruined our state's fine higher educational in- stitutions, makes his candidacy unacceptable. We are going to elect Lana Pollack to the state senate for the However, the few beneficial projects developed with defense department funds are negligible compared to the many weapons grants funded at universities. The useful findings of military researchers do not rationalize nor justify the basic thrust of military support, namely the development of better equipped, more potent "deterrent" forces. Studies have shown that the majority of DoD-supported and directed research conforms to specifications incompatible with civilian technological needs (Glanz & Albers, Science, 1974). Now Mr. Ford,does the military always act in the best in- terests of the civilian population? One look at this year's federal budget should answer you. Mr. Ford, you claim opponents of military research are ignorant of military goals and strategies. Come now, your plans really aren't that complex. On the con- trary, it is through open, con- structive criticism by civilians that the safety of the United States can be maintained. It is thinking like yours, an inability to listen to ideas from others than your superiors, which has brought this country to its state of near nuclear destruction. Come on Mr. Ford, who can claim ignorance? -Henry Rice October 21, 4 The Liddy/Leary con To the Daily: What do the Michigan Theatre and the Ann Arbor News have in common? Both have con- tributed to the cultural enrich- ment of our community and both have seemingly run out of creaveideas. As one who has provided hun- dreds of top speakers to univer- sity campuses across the nation, I realize the drawing power of well-known names. But a little ingenuity could have produced a high quality program and brought more net proceeds to the