At a time of the year when gift giving and charitable good spirit fills the air, please allow me to be the one who rains on the parade: "Yes, Virginia, there is no Santa Claus!"
I don't mean the Santa who comes down the chimney with toys for every girl and boy. This is the Santa who really is Mom or Dad, Grandparent or other family members or close friends who out of their own earned income choose to purchase, wrap and give gifts to those little ones on Christmas morning.
The small child may have been told the fairy story about an jolly, fat man in a red suit who lives in the far north, working with his elves all year long so the toys and other presents are ready to be miraculously delivered to every "good boy and girl" around the world in one night.
But we "adults" all know that is all just a story for the children at an early and gullible age when the fantasy of it all seems possibly real. And many of us cherish those early years of wonder and make-believe, before the reality breaks through that it just does not and cannot happen that way.
The Redistributing and Regulating Political Santa
I mean the Uncle Sam "Santa" that, not just at Christmas time, but year-round is believed by many people to have the ability to bring them many of the good things they want from a mythical North Pole called Washington, D.C., or any governmental capital around the world.
This is the political Santa who delivers subsidies of various sorts to farmers or "alternative energy" manufacturers. The Santa who redistributes vast sums of money for educational expenditures, or public housing, welfare and food stamps, or government defense contracts, and even "bridges to nowhere."
This is also the political Santa who can magically fill the global skies with unmanned drones for surveillance and death, or fund decade-long trillion-dollar wars in far-off lands, or bankroll "friendly" governments in other places around the world while punishing "bad" countries for what Uncle Sam defines as "misbehavior."
This is the Santa who claims the power and ability remake human nature, control human thought and redesign some or even all of human society into various preferred shapes and forms.
This political Santa works hard to create the illusion that prosperity and improvement in the human condition cannot happen if not for the guiding, regulating and manipulating hand of "benevolent" government.
The Political Myth of Something for Nothing
But while almost all children grow out of their belief in a Santa Claus with his home at the North Pole who "somehow" succeeds in manufacturing all those "goodies" that he carries on his sleigh on Christmas Eve, many people go through their entire life convinced of the Santa-like abilities of a paternalistic government that can "somehow" assure many, if not all, of the desired good things of life.
However, just as "Santa" is really Mom and Dad who buy the presents, and wrap them to put under the Christmas tree, governmental "Santa" are those in political office who have no ability to bestow desired benefits on "all" without, in fact, first taking from some to give to others.
Mom and Dad work. They assist in producing goods or in performing services for others in the marketplace, which earns them a salary or nets them a profit. They have had to first produce to, then, through the income they earned, have the ability to consume, including on the goods that their children find on Christmas morning.
The governmental Santa must, first, tax away the income and wealth of some to, then, redistribute it in one form or another to others in the country over which those in political power assert fiscal and regulatory authority.
For the mythical Santa at the North Pole there are no costs for anything he does. The resources, raw materials and tools with which his Christmas goodies are made just appear. The elves work, apparently, for nothing and their food and clothes do not need to be produced, either.
For our political Santa Claus to rain redistributive "gifts" on those he considers deserving and "nice," he must take from those found to be "naughty" and not nice.
Political Santa's "Gifts" Carry High Costs
Our political Santa Claus imposes real and meaningful costs on many in society to do his magical "social work." First, he must appropriate part of the material wealth produced by those productive members of society. People who, in a free market, only earn what they have by peacefully offering to others things those others desire and value enough to pay an agreed-upon price to acquire.
A portion of the intellectual and material effort of real men and women are seized from them through compulsory taxation. The government classifies these net taxpayers in society as having more than they "really" need, and usually don't ethically "deserve."
They get "sack of coal" for being "bad" in the form of being left with less than the full value of their creative and hardworking effort. They are denied the opportunity and the right to enjoy the complete fruits of their mental and physical labors. Their choices to spend what they have honestly earned are narrowed to what the political Santa decides they should have available to spend.
The "good" little political citizens who are given the redistributive benefits, therefore, are the net recipients of what others have produced, and which they have received due the ideological and pressure group power they can bring to bear in collaboration with the political Santa in the municipal, state and national halls of governmental control.
But the costs of political Santa's generosity do not come just in the form of direct redistributions. They also come in the form of regulations, restrictions and licensing requirements that determine who may allowed to compete, work and earn a living in a particular line of enterprise, production and trade.
This "sack of coal" for the "bad" citizens also comes in the form in the inability to start a business or expand and successfully run an enterprise as the result of the regulatory hand of political Santa. The costs also take the form of closed opportunities for those with little or no skills to find work or be hired at a starting wage that would give them a chance at improving their own lives through honest employment in the free marketplace.
It also costs the consumers who find their choices and options are more limited or nonexistent than the free market would have provided, if only the government had not imposed these barriers, walls and hurtles in the way of those who merely wish to be left alone to go about their private and personal affairs of life by offering new, better and less expense goods and services to their fellow men through honest, peaceful and mutually agreed terms of trade.
The "good little citizens" in this case are those on the supply-side of the market who are sheltered from the competition of real or potentially more efficient and productive rivals. Their larger market shares, greater profit margins and costly inefficiencies are protected by the political Santa's regulatory power; he, in turn, receives the campaign contributions and implicitly bought votes on election days that keep him in office.
The Myth of Needing a Political Santa for Life
For political Santa to pursue his mythical game in governmental plunderland, he must do all in his power to persuade and convince his citizen "children" that they do not have a right to their own life and to live it in their own chosen way. They must be indoctrinated to either passively accept the role of life-long dependent upon the political Santa, or to serve as the self-sacrificing elves who must do the work to produce all the goods and services in the world that will be redistributed out of the political Santa's sack of taxed and regulated benefits.
Santa will educate you; he will see that you have a job and that you receive a "fair" wage. He will make sure that you are safe and satisfied by controlling what is produced, how it produced and the terms under which the "bad" business children under his regulatory supervision market and sell many of those "goodies" to you.
When sick or disabled, political Santa will give you medical care; and he will guarantee you a retirement free from the need for planning for these things yourself.
All you need to do is accept your status as a lifetime adolescent needing supervision, care and oversight in everything and in all things that you do. The spirit and psychology of being political Santa's dependent was captured in that government website cartoon during the first Obama Administration called "The Life of Julia."
"Julia" needed government to supply the hospital in which she was born; to provide the pre-school education with which her political indoctrination began; too see that Julia was given not only a government high school diploma, but got taxpayer subsidies and special quotas to make it into a preferred college or university; to see that gender affirmative action laws guaranteed a "fair chance" to a good paying job and career that she otherwise could never get on her own; and to see that in later years Julia has the safety-net of government Social Security, without having to bear the responsibility of carrying for this herself.
Self-Sacrificing "Elves" to Serve Political Santa
The other side of political Santa's plunderland is the indoctrination of the productive and producer "elves" who are needed to do the work that supplies all that government can give away. This requires convincing everyone that "society" comes before the individual; that anything that the individual has is not due to his own effort and his peaceful and voluntary associations with others, or as President Obama asserted, "You did not built it."
Instead, what you have is due to the collective efforts of all, so that you cannot claim a right to anything or any more than what the collective deems you to deserve. And it is political Santa who represents and acts for the social collective in determining what shall be expected from you and in what form, and what you shall be allowed to have from "society" (or that you are allowed to keep) as bestowed by the government's redistributive and regulatory activities.
But just as there no Santa at the North Pole, there is no political Santa in society. Political Santa is really those who run for political office to gain and retain governmental control and power over other people's lives. Political Santa is really all the special interest groups who wish to use the halls of governmental power to obtain through regulation and taxation what they cannot honestly earn in the open competition of the free marketplace.
Ethical Benevolence vs. Political Immorality
Benevolence and voluntary charity, and a properly understood spirit of "giving" to those you value and love at Christmas time are right and virtuous sentiments of free people in the open society.
But belief in and actions based upon the idea of a "political Santa" only succeeds in weakening and finally destroying the spirit and ethical health of a free and prosperous society.
So, yes, Virginia, there is no Santa Claus. Neither a North Pole Santa who comes down the chimney in a red suit, nor a political Santa who can give people "something for nothing" in a world in which all that people want and desire must be creatively produced by someone before it may used to satisfy those wants and desires.
What makes the mythical belief in a political Santa far worse than the short-lived childhood belief in the North Pole Santa, is that the idea of a political Santa challenges and destroys the spirit of individualism upon which the good, free and prosperous society ultimately rests.
Note from Dr. Ebeling:
In this radio interview on "The Jerry Doyle" show on December 18, 2014, I explain why Federal Reserve interest rate policy is a form of "monetary socialism," in that manipulating interest rates down to near zero has basically undermined the existence of a functioning banking market. Listen here, at Epic Times.
Interest rates are the intertemporal prices that coordinate the choices of income earners to save with the investment decisions of entrepreneurs and enterprises to borrow. Interest rates are supposed to keep savings and investment in proper balance, and to determine which investments, with what time horizon, are market-based profitable.
By, basically, abolishing much of the price mechanism of an essential element of the financial markets, the Federal Reserve has introduced a high degree of economic irrationality into savings and investment decision-making.
We should not be surprised if the Federal Reserve's monetary central planning has led to a new round of misdirection of resources and labor, and mal-investment of capital that will result in a future economic downturn, when these mis-matches will have to be corrected and rebalanced.