Articles are available for reprint as long as the author is acknowledged: Domenick J. Maglio Ph.D.

Friday, February 26, 2010


“You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.” Andrean Rogers

The vigor of the middle class is derived from its own free and independent initiative. People who are secure that they can keep their profits and property are incentivized to work. Those who have the majority of their profits and property siphoned off through ever increasing taxes and regulations lose the motivation to struggle to better themselves financially. They either never form their dreams or give them up.

The growth of big government in any nation is a natural enemy of the independent middle class. Government devours it through taxes. The middle class is like the canary in the mine, it is the first to realize the impact of taxes and regulations on its livelihood and well being.

Government does not produce any wealth. Wealth is generated by business. The growth in power of central government has to be financed by the private sector. The redistribution of the assets of the haves to the have-nots with a large slice going to growing and greasing the bureaucracy is a predictable destructive process.

For government’s growth to occur it is easier to start at the top and work down in a progressive tax system. By scapegoating the wealthy class as selfish and greedy it is easy to convince others to confiscate a larger and larger percentage of the wealthy class’s property over time. As the government appetite continues to grow it drops down the social ladder to increase the taxes of the rest.

At the same time one class is pitted against another, corporate welfare is used to solidify economic power of a too big to fail international corporation. The corporate world’s privileged incentives are directed towards carefully selected companies. The money and power flows both ways enhancing the pockets of each.

Regulations and tax incentives are offered to some but not to others. Those selected corporate execs and elite politicians meet behind closed doors to hammer out corporate social welfare for the few willing to “pay to play.” The government sets the regulations dictating the way the industry will be run while the chosen companies are protected and granted federal dollars as others are frozen out. The revolving door connection with people in high office insures the money flow through government contracts and even bailouts with political kickbacks.

The financial success of these corporations is distributed to political cronies through lobbyists, donations to assist their elections and benefits to enhance their life styles. This money exchanges are hidden from the public through backroom deals. There is no transparency in the development of these relationships. Once the new political structure is solidified, the middle class will be absorbed.

Two classes will be left standing, the unconnected poor class and the politically connected wealthy and powerful one.

The reality of an all-powerful government is established with the crushing of hope and the spirit of the nation. Everyone except the politically connected enter the world of enslavement through dependency. A centralized government without constitutional restrictions and protection has the power to confiscate privately accumulated wealth which de-incentivizes entrepreneurs. Innovators will have no opportunity to compete with the corporate world and will turn into disillusioned, bitter people on the dole.

China, Russia and other centralized governments are choosing to decentralize economic power. They have swallowed the bitter pill increasing the freedom of people to engage in unrestricted free enterprise. These central control governments have reluctantly given up political power to stimulate the economy. The willingness to hand back certain liberties that will limit central power has brought and always will bring economic prosperity. Yet our own nation is taking the opposite path.

Now Americans understand that hope and change of any administration can be a nightmare instead of the traditional American dream. Americans are learning there is no free lunch without losing freedom and property. We are finally waking up.

Government handouts and over 40% of citizens not paying any federal income taxes has to be reversed for the sake of freedom, liberty and our children’s future.
Paraphrasing Alexis de Tocqueville, the less citizens are dependent on government, the healthier the nation.

Let us preserve the engine of our prosperity: the middle class, and stop bailing out international corporations that are too big to succeed. Removing government regulations, public and corporate welfare and redistributing wealth to special interests will ignite our nation’s middle class competitive juices.

Dr. Maglio is the author of Invasion Within and Essential Parenting. He is a psychotherapist and the owner/director of Wider Horizons School.


Post a Comment

<< Home