Minor Thoughts from me to you

The Unrighteous Poor

Today's Capital Times had a heartwarming little article about homeless activists and their endless crusade to wring money out of everyone else.

Members of the Tenant Advocacy Group, or TAG, already know about homelessness. Each was once homeless, or narrowly escaped being out on the street. "We learned these things from the inside out," said Cynthia Travis, coordinator for the group.

That's good. These people are uniquely situated to help the poor and the homeless. Their goals are absolutely praiseworthy. Unfortunately, their methods are not.

The group entered the fray of state legislative politics this year by sending a letter to Secretary of Commerce Mary Burke requesting a $1 million-a-year increase in state funding for homeless shelter and transitional housing services grants. The Commerce department administers the grant program, funding for which has been $1.5 million a year for some 15 years.

They even saw some initial success as Governor Doyle put an additional $1 million into his budget, for their cause. Then action stalled in the Joint Finance Committee:

As Joint Finance Committee actions on other issues proceeded, it unfolded that any additional funds for homelessness services would need to be funded through an increase in the real estate transfer tax. That didn't fly.

They decided to use an appeal to pity as leverage for their demands:

"I slept in a Ford station wagon for six months," Morris King recalled. The way to help unsympathetic legislators get their priorities in order, he said, is to ask them: "Do you want potholes? Or do you want people sleeping on the street?"

Here's the thing. The legislature doesn't hand out free money. Every penny that the legislature hands out has to come from somewhere and someone else. Increasing the real estate transfer tax would make it more expensive for Wisconsin residents to buy a home. Increasing the gas tax would make it more expensive for Wisconsin residents to drive. Increasing the sales tax would make it more expensive for Wisconsin residents to purchase everything. Increasing the ... well, you get the idea.

Every time the government increases taxes, it becomes more expensive for poorer people to survive on their own. For those living the closest to the financial edge, a tax increase may be the difference between survival and failure. Ultimately, these crusades are counter-productive.

It will ultimately prove fruitless to use the government to confiscate the resources of others and redistribute them to your group. You will merely drive up the cost of living in the State leading to an endless cycle of increases in government aid and increases in the cost of living. Focus on creating wealth that you can use to help others, rather than confiscating wealth.