The government decides to try to increase the middle class by subsidizing things that middle class people have: If middle-class people go to college and own homes, then surely if more people go to college and own homes, we’ll have more middle-class people. But homeownership and college aren’t causes of middle-class status, they’re markers for possessing the kinds of traits — self-discipline, the ability to defer gratification, etc. — that let you enter, and stay, in the middle class. Subsidizing the markers doesn’t produce the traits; if anything, it undermines them.
It’s easy to see why. If people don’t need to defer gratification, work hard, etc., in order to achieve the status they desire, they’ll be less inclined to do those things. The greater the government subsidy, the greater the effect, and the more net harm produced.
This law is thus a relative to Murray’s third law in Losing Ground, the Law of Net Harm: “The less likely it is that the unwanted behavior will change voluntarily, the more likely it is that a program to induce change will cause net harm.” But Reynolds’ Law rests on a different and more secure foundation. It focuses on character as fundamental.
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