Has big government destroyed the Land of Opportunity


WASHINGTON, April 8, 2014 — About 238 years ago, the leaders of our country gathered to form a new government. The intent was to have this land governed by individuals who were freely elected by the majority of the people. This land would encourage freedom, democracy and fulfillment, by proclaiming that all people had the right to life, liberty and the pursuit of happiness. This would be the land of opportunity.

In this land of opportunity, every individual would be encouraged to contribute to the economic system and would be rewarded according to the value of that contribution. This land would have low rates of taxation and a limited role for government. That would ensure freedom and just rewards for all contributions. This would be the land of opportunity.

In this land, each person was expected to not only reap the vast rewards of a free society, but also to assume the responsibilities of freedom. These responsibilities included providing for those who were, for whatever legitimate reason, unable to provide for themselves. And since, in a free society people tend to be very compassionate, this responsibility was accepted. Yes, this was the land of opportunity.

After about 150 years of this system, America became the most successful nation on earth. We were the greatest producer of output, we had the strongest economy and we strived to be the best at virtually everything. Our success was stunning.

Then things changed.

Government began to grow very large. The original intention for the role of government was to provide a minimum of public services and also to insure that all Americans were provided at least a minimal standard of living. Paying for government services was supposed to account for the vast majority of government spending with the “providing for” function using the rest. But the federal government decided to begin to provide more for those who were in need. To do this, they levied a tax on our income which eventually included separate additional taxes on our wages. Over time the 2% federal income tax grew tremendously and became very progressive.

The special taxes on wages also grew. Then government placed additional taxes on the things we purchased, the house where we lived and special taxes on certain goods like gasoline, alcohol and liquor. This seemed counter to the original idea of low taxation and limited government. This changed the land of opportunity.

As tax revenue increased, government spending increased further especially on “income transfer” programs, so that today the majority of government spending is on these programs. As government grew, they began to regulate more, limiting growth and freedom. This is not the land of opportunity.

Then government decided that those who were being provided for should be provided for with even more. Government also decided that the individuals who made the largest contributions to our economy, and thus received the largest incomes, should carry the entire burden of these new “provisions”. This seemed counter to the original principles and, more importantly, was counter-productive to the economy as a whole. This is not the land of opportunity.

In the 1980’s it appeared that this trend was reversing. The government reduced tax rates, made them less progressive, removed burdensome regulations and began to decrease income transfer programs. The result was a 26 year expansion (except for small hiccups in 1991 and 2001) where opportunity was provided to almost everyone.  The 10% unemployment rate was reduced to 4%, so that there was truly opportunity for all.

For the past six years, though, this has definitely not been the land of opportunity. Growth in the economy has barely exceeded population growth. High achievers, who provide the investment capital the economy needs to grow, see very little opportunity and coupled with the increased tax burden, are reluctant to invest. Over regulated markets add to their reluctance. Workers see little opportunity since the high achievers are not investing to grow businesses. Many workers, even highly skilled and highly educated, are forced to take lesser jobs at lower pay. Unemployment remains high, economic growth stagnant and no new opportunities are being created. This is not the land of opportunity.

Most of the problems we have today can be resolved if we returned to the land of opportunity, so we have individuals finding opportunity and contributing to the system, rather than being provided for. We need businesses to grow and new businesses to be created so that there is a demand for workers who have invested in themselves and are now highly skilled and highly educated. We need a tax environment that generates sufficient revenue with low tax rates, while encouraging all people to follow the opportunities they see. We need a government that is able to efficiently offer the public services required while providing for those who are truly needy. We need a government that encourages the economy to grow so that we all benefit.

We need to return to the land of opportunity.

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  • therain

    Well said.

  • Huck Finn

    I think Government needs to get out of the providing anything!! Their job is to protect and defend! Not provide! We The People can come up with ways to provide for those that actually and truly cannot provide for themselves!! Government does a very poor job at providing, because they don’t have a dog in the fight! So they begin to give out indiscriminately, without verifying need!

    We have private organizations that are non-government, who can and have done a better job! Plus we can set up accountability in these organizations without the federal government getting involved! We could have oversight without government and actually already do have! We need to be wise to scams of course and punitive in our measure to handle scamming, but I truly believe it can be done without The Fed’s Boondoggled mismanagement of so-called welfare that has basically turned in to entitlement programs way beyond the scope of what we can afford!! Something has to be done and something has to be done now!!

  • Matthew Sailor-Mann

    “The original intention for the role of government was…also to insure that all Americans were provided at least a minimal standard of living.” What? Where exactly did you find THAT in our founding documents? To For the government to “provide at least a minimal standard of living” is the antithesis of our founding.