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Government Greed
· Wednesday, October 13, 2010
Those who are always accusing people in the private sector of "greed" almost never accuse government of greed, no matter what it does. Indeed, the question of whether the government is greedy almost never comes up, so most of us probably never think about it.
The first time I was forced to think about it was some years ago, when a bank notified me that the government was about to seize a bank account of mine, unless I took action. Since I didn't owe the government any money, and was not accused of any crime, I was baffled.
What had happened was that I had received a private grant to help finance international travel in connection with my research into racial and cultural issues in countries around the world. Since the money was not for my personal use, I opened a separate bank account to hold that money until I was ready to go overseas.
Such a trip would obviously take a lot of time, so I had to get my other work and commitments cleared up before I could take off for a few months. That was easier said than done, so the bank account with the travel money in it just sat there, with nothing being added to it or taken from it.
There are escheat laws, under which the government can seize the assets of someone who has died and whose heirs have not claimed those assets after some period of time. The theory is that there is no reason why banks should get that money. On the other hand, there is no reason why politicians should get it either, but the politicians write the laws.
Like other laws, escheat laws have some plausible rationale. And, like other laws, what is actually done can end up going far beyond those rationales. The period during which a bank account can be dormant before the government moves in has been shortened to a very few years.
Those few years had elapsed before I had an opportunity to take an extended trip overseas, so the government would have seized the money-- and my personal papers in a safety deposit box-- if the bank had not warned me and I had not gotten there first.
The government doesn't have to prove that you are dead. The fact that your bank account had nothing added to it or taken from it for a few years is enough. Apparently politicians cannot imagine how someone would have money and not spend it, unless they were dead.
Escheat laws are just one of the ways governments seize money. Income tax rates have been as high as 90 percent in the top brackets. Even after you have paid the taxes on your income and saved or invested part of what is left, the government comes back to take more of that same money, after you die, with estate taxes.
Perhaps one of the most unconscionable acts of greed by government is confiscating people's homes, in order to turn this property over to other people, who are expected to build things that will pay more taxes.
The Constitution allows the government to take private property for its own use, provided "just compensation" is paid. That way the government can build reservoirs, bridges, or highways, for example, even if that requires displacing some people. But judges over the years have expanded this power to include taking private property just to turn it over to some other private individual or business.
There are various ways in which the money actually paid to homeowners can be less than the market value of their homes. Moreover, since these homeowners had not chosen to sell their homes in the market, the value that they put on their homes obviously exceeded the market value.
Destroying a neighborhood is more than destroying the physical structures there. Valuable personal, professional and business relationships, built up over a period of years, are also destroyed when the people are scattered to the winds.
The biggest beneficiaries are the politicians who get a larger amount of tax money to spend in ways that will increase their prospects of getting re-elected. Seldom, if ever, are the people whose homes are destroyed, and whose lives are disrupted, among the affluent or rich. Urban renewal may go through the South Bronx, but not through Beverly Hills.
And no one calls it greed.
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Stuart (Austin, TX)
Dr. Sowell:
Let me start by saying that I am an admirer and devotee of yours. I would like someday to put a statue of you in my front yard to inspire my children and neighbors. But I find myself having to correct your grammar for a simple mistake that I would never have imagined you capable. The term is "SAFE deposit box," not "safety deposit box". Please forgive my impertinence in pointing that out.
-- Stuart
Posted October 13, 2010 at 1:22:29 PM
Joseph W.
Stuart (Austin, TX),
I too am an admirer of Dr. Sowell and he was not mistaken in his grammar. According to Webster's New World College Dictionary either use is correct.
Posted October 13, 2010 at 1:54:34 PM
Clarence De Barrows
Ah, Dr. Sowell, right on again! "Destroying a neighborhood is more than destroying the physical structures there. Valuable personal, professional and business relationships, built up over a period of years, are also destroyed when the people are scattered to the winds."
A classic example is Richmond, California. Years ago the "iron triangle" and downtown area were picture perfect examples of the traditional middle class American small town lifestyle. Then the local political elite decided that "redevelopment" was called for and all the property in that area was acquired under the rules of eminent domain. The Richmond of today is the result. 'Nuff said.
Posted October 13, 2010 at 2:58:16 PM
marvin m.
Excellent post and excellent point! Here's what came to mind while reading your post:
Guard dogs need a certain amount of food to serve & protect the family. It seems logical that, as the family grows and prospers, more protection is needed - and so we have allowed the dogs to breed unchecked. Now the pack has grown so large, ravenous and wild that the dogs longer obey their masters – rather, they live only to feed.
No work can be done efficiently when two people are required to fight back the feral beasts, so that one can accomplish a day's labor.
The farmland is fertile, but the fields are sparse. Livestock not slaughtered have been chased through the fence to raise their young in safer pastures where the beasts are not as ravenous. Oxen tied to the plow are easy prey, so the spring planting has been forsaken. Survival of the family depends entirely on food from the few rugged, determined volunteer plants that have pushed up through the untended and weed-filled soil, where fields of abundance once grew...
As the pack size and appetite increased, it found the children to be easy prey – that future generation that is out of sight and without protection (to our shame).
The solutions of current leadership are this:
(1) they have drastically INCREASED the size of the pack…
(2) they are processing the old and the sick people to become food for the pack as well…
...the dogs are running the kennel.
….
A dog or two will earn their keep. A pack produces nothing, but destroys everything that breaths.
Posted October 13, 2010 at 3:26:13 PM
karl anglin
The spirit of liberty, is the
spirit which is not too sure
that it right.---B. Learned Hand
(1872-1961)
Posted October 13, 2010 at 3:46:39 PM
Brian
The biggest abuse of eminent domain occurs when the property owner doesn't wish to sell, and the government condemns the property in order to steal it for a much lower price than would be paid even under eminent domain.
Posted October 13, 2010 at 8:02:00 PM
daryl
time to shoot(vote to retired and fire) most of them, 30% reduction of governmental employees, 30% reduction of electeds pay and benefits, including staff and all other costs....lets see how serious they are about reducing costs...or how serious we are about taking the garbage out for good....by the way, no retirement for them....and they can start figuring out the way they will repay us for all the damage done to us.
Posted October 13, 2010 at 11:03:18 PM
Dexter60
There can be no greater greed than is found in governmental materialism. To quote myself.
I am in total accord, sir, suggesting only this one item as an addition.
An excellent form of alternative energy:
The complete distillation and combustion of all lawyers and politicians, at standard temperature and pressure as sustained by their incandescent stupidity, until the supply of both has been exhausted.
After which life can naturally continue as normal.
As any new lawyers or politicians happen to spring up in their place, they can be sent to the furnaces as well, before they introduce their characteristic problems, to keep the air and water clean and fresh.
The costs of all other forms of energy will then fall to their appropriate levels.
Posted October 14, 2010 at 1:17:03 PM
BT
As to the misuse of imminent domain for the purposes of theft;
"It is appalling to see how few politicians are hanged".
G.K. Chesterton. (1923)
Posted October 14, 2010 at 6:02:31 PM
BT
Correction - Eminent domain
Posted October 14, 2010 at 6:07:44 PM
john
Most people don't know it, but insurance claim checks that are never cashed are turned over to the state. This amounts to many millions of dollars each year that could be credited back to the policies and would then result in lower premiums for the public. But no, somehow the states feel it should go to them..I'm sure that there are a lot of other similar low-key, devious ways that funds are confiscated from the public.
Posted October 14, 2010 at 6:55:50 PM
Bob Brown
On the Mount, Jesus said, Blessed are the 'confused', [Aramaic] for theirs is the Kingdom of Heaven.
That is because He knew that virtually all the greatest pain and suffering throughout history was perpetrated by those who were absolutely certain of what they were doing - and that all others must conform.
This is the core of the problem of the Obama/Pelosi/Reid troika and Friends. They aren't the only ones like this, just the most obvious.
The liberal/Socialist left has so much contempt for the capabilities of individuals to build a successful life for themselves that they 'know' they must do it for them, . . . and take away more of the freedom of all in the process.
Those like them, who believe government is the solution to all social problems would fight a forest fire with flame throwers. They simply don't know what they don't know this ignorance is drowning the nation in debt and strangling it in regulation.
Unless it is specifically stated in the Constitution, the federal government must be kept out! We have 50 states for a reason, one of which is to prevent tyranny by an omnipotent national government.
Have you had enough of them yet?
Posted October 15, 2010 at 1:35:31 AM