First, in this post, he argues that we need a guaranteed minimum income. Here’s the meat of his argument:
A guaranteed minimum income, funded by radically progressive income and wealth taxes, and replacing all other existing government entitlement programs, is the only way to keep the economy from collapsing. It will also be more efficient and more fair than the existing welfare state, which is why that well-known Marxist radical Milton Friedman was a proponent of it. Production without consumption is as worthless as a mouth without an anus, and with automation destroying more jobs than are being created, options for maintaining balance are running out.
Production without consumption may or may not be worthless, but my money is on Kipling:
In the Carboniferous Epoch we were promised abundance for all,
By robbing selected Peter to pay for collective Paul;
But, though we had plenty of money, there was nothing our money could buy,
And the Gods of the Copybook Headings said: "If you don’t work you die."
Anyway, there are two theories about the effects of massive welfare programs, and they are as follows:
Blue Pill: Welfare programs help the poor and reduce social strife.
Red Pill: Welfare programs keep the poor in poverty and purchase the political support of the poor and allow the elites to use the poor to ensure the elite’s policies are implemented.
While Ferdinand makes fun of libertarians, conservatives and liberals, it’s worth pointing out that all mainstream members of each group believe in the blue pill version of the effects of welfare. Only fringe elements of conservatism and libertarianism (both descendents of the Old Right) believe that welfare is specifically designed to purchase political support from and impoverish it’s recipients. These elements have been completely marginalized for the last 50+ years.
In addition, if you understand HBD, you understand that such a massive welfare program in a diverse country, is a recipe for increased strife, not less strife. A guaranteed income program in a diverse nation is a program under which certain racial groups will – for all intents and purposes – be guaranteeing the incomes of people in other racial groups. This is not a recipe for stability.
This point brings us to Ferd’s other piece that I have a problem with. Here’s the meat of this post:
The fact of the matter is is that if you really, truly have accepted the reality of human biodiversity and IQ, you have to support some kind of welfare state. How big a welfare state is debatable, but if you aren’t simply parroting hereditarian viewpoints because you want to be edgy and shock your parents, you have to think about this carefully. An effective government is the only tool capable of keeping morons from doing moronic things and impacting the lives of us non-morons.
Again, as I just wrote, this is nearly perfectly wrong. In a diverse society, stability is not achieved by taking money from one racial group and transferring it to another – which, if you accept HBD, is the likely outcome of Ferd’s policy. Here’s another dose of reality:
Blue Pill: in a diverse society, stability is achieved by programs designed to promote equality
Red Pill: in a diverse society, efforts to promote equality will backfire due to innate differences across groups, thus stability can only be achieved through strong but small government
A strong government and free-markets are not incompatible. In fact, a non-welfare state, a strong government, and mostly free markets may be the only way to achieve stable government in a diverse society:
The state’s attitude can be simply put: being poor here is your own fault. Citizens are obliged to save for the future, rely on their families and not expect any handouts from the government unless they hit rock bottom. The emphasis on family extends into old age: retired parents can sue children who fail to support them. In government circles “welfare” remains a dirty word, cousin to sloth and waste. Singapore may be a nanny state, but it is by no means an indulgent nanny.
Do read the whole article. In Singapore, if the Chinese had to subsidize the Malays on an ongoing basis, the results would not be pretty.