Arguing to redirect inefficient government spending towards populist policies like free buses is a trap. It doubles down on a broken system by replacing one form of poor allocation with another, ultimately accelerating economic decline rather than fixing the fundamental problems.
Populist leaders often correctly identify public suffering but propose solutions that worsen the problem. This is compared to Steve Jobs' fruit juice diet for pancreatic cancer, which accelerated his illness by feeding the tumor carbohydrates. Similarly, policies focused on punishing the wealthy rather than fixing root causes are catastrophically counterproductive.
Both Democrats and Republicans avoid the boring, complex solutions to inflation—like housing density, healthcare reform, and aggressive antitrust. Instead, they opt for politically palatable but ineffective measures like tariffs (Republicans) or short-term subsidies (Democrats), ensuring the core problems remain unsolved.
A bureaucracy can function like a tumor. It disguises itself from the "immune system" of public accountability by using noble language ("it's for the kids"). It then redirects resources (funding) to ensure its own growth, even if it's harming the larger organism of society.
Deficit spending acts as a hidden tax via inflation. This tax disproportionately harms those without assets while benefiting the small percentage of the population owning assets like stocks and real estate. Therefore, supporting deficit spending is an active choice to make the rich richer and the poor poorer.
According to James Burnham's "Iron Law of Oligarchy," systems eventually serve their rulers. In government, deficit spending and subsidies are used to secure votes and donor funding, meaning leaders are incentivized to maintain the flow of money, even if it's wasteful or fraudulent, to ensure their own political survival.
Rising calls for socialist policies are not just about wealth disparity, but symptoms of three core failures: unaffordable housing, fear of healthcare-driven bankruptcy, and an education system misaligned with job outcomes. Solving these fundamental problems would alleviate the pressure for radical wealth redistribution far more effectively.
The government often creates economic problems (e.g., through money printing), then presents itself as the solution with "free" programs. This cycle causes the public to misattribute their financial struggles to the failures of capitalism, rather than recognizing the government's role as the problem's source.
Well-intentioned government support programs can become an economic "shackle," disincentivizing upward mobility. This risks a negative cycle: dependent citizens demand more benefits, requiring higher taxes that drive out businesses, which erodes the tax base and leads to calls for even more wealth redistribution and government control.
When a service like public transit is made free, it removes the financial incentives for efficiency and innovation. Without the pressure to compete for customers, bureaucracies swell, quality degrades, and problems like safety issues increase, ultimately making the service worse for its intended beneficiaries.
Government money printing disproportionately benefits asset owners, creating massive wealth inequality. The resulting economic insecurity fuels populism, where voters demand more spending and tax cuts, accelerating the nation's journey towards bankruptcy in a feedback loop.