Passive and Active Mooching

print
Not all mooching is the same. Passive mooching draws ridicule. Welfare mothers are passive moochers? A passive moocher does not lobby for benefits but uses current law to take advantage of existing opportunities. Not once in history have the poor lobbied Washington or begged to be taken care of.  The poor will accept food stamps, medicaid and welfare but have had no role in causing laws to be passed.

Active mooching is another story. For active moochers, mooching is a full time effort. Active mooching means going to congress constantly to get laws passed which increase one’s income and wealth.

Federal Reserve policy is what it is because of relentless active mooching. Zero interest rates give corporations a huge ongoing discount on everything they buy. Stock prices are driven higher, real wages are kept low and higher prices tax everyone else through inflation. Home buyers get mortgage rates for about 2% less than what the free market rate would be. This comes out of grannies retirement savings. So that active moochers can have low interest rates granny get little in earnings on the money she saved.

Government spending always favor groups who are huge campaign contributers.

Active mooching is not just aggressive. It is ruthless. Wars are fought for profit.

A favorite activity of conservatives is that of working up into a sanctimonious frenzy and pointing fingers at food stamp recipients and others getting passive benefits. That might be a lot of fun but it doesn’t help solve the country’s economic problems. With all of the active mooching going on in Washington, the absence of the passive moocher might not even be noticeable.

The rich never lobby for less spending or smaller government. They benefit from increased spending and large government. Otherwise they would.

At the very top of the income scale, virtually all wealth and income is gained by active mooching.  The benefits derived from active mooching become less and less moving down the income scale. The lower middle class and the poor get no benefit at all but actually contribute to the wellbeing of their more prosperous brethren.

Some examples of low end active mooching are government employees, all of whom are paid more than they would earn for the same job in the private sector. Incomes in the healthcare industry are elevated. There are man others.

About Fantasy Free Economics

James Quillian is an independent scholar and economist.
This entry was posted in Daily Comments. Bookmark the permalink.