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Apr 30

Government subsidies to help the poor actually harm the poor by causing prices to rise

The above chart was generated by the American Enterprise Institute (AEI) and published on Marketwatch.com. It shows the overall price changes of certain products between 1997 and 2017.

As you can see, government-subsidized goods (college tuition and books and medical treatment) have increased at rates much higher than inflation.

Meanwhile, ‘tech’ products such as TVs, cell phones and computers, which are not subsidized by government, have gone down in price relative to inflation.

Government subsidizes college tuition, college textbooks, and medical treatment to help the poor (supposedly). Yet such programs greatly harm the poor.

Meanwhile, the corporations producing tech products are often demonized by government trusters. Yet their products are more easily obtained by the poor than in the past.

There are loud voices proclaiming that corporations are controlling American politics–and advocating the elimination of speech rights for corporations. (The goal of these voices, generally, is to empower government to push more socialistic programs like the programs that produce the high prices of college and health care.)