Passive and Active Mooching

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.

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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.