Local View: Find hand-ups, reject handouts, to win America’s war on poverty

“Eliminate poverty through public policy.” That was the topic of University of Wisconsin-Superior Professor Emeritus Bernie Hughes’ Local View column on Sept. 22. I seem to recall President Lyndon Johnson declaring a “war on poverty” in the mid-1960s. How has that worked out? Half a century later, with ever-expanding rates of poverty, what have we, the taxpayers, to show (or to conclude) relative to the effectiveness of such public policies and the staggering sums expended?
Might there be other ways to address this pernicious poverty problem?How about creating incentives to reward true effort? We have created an entitlement outlook; people have forgotten what President John F. Kennedy said in his 1960 inaugural speech: “Ask not what your country can do for you; ask what you can do for your country.” In other words, old-fashioned values like hard work, aka work ethic, and responsibility still apply.Throwing money at a problem like poverty does not solve it. Welfare, public housing, food stamps, Social Security disability, extended unemployment benefits: while well-intentioned, they all are disincentives for a productive response. And they’re riddled with too much abuse, waste, fraud, and double-dipping.Helping those who truly have a mental illness or who physically are unable to work must continue. But how do we most effectively create a hand up instead of a handout for others? What data do we have on folks who’ve successfully climbed out of poverty? What do they say worked for them? To empower folks, we could revise our federal tax system to get rid of all tax deductions except charitable giving, to create a simplified flat tax so all persons pay something for the privileges we Americans enjoy, and to create policies to favor small business, the sector where most job growth occurs.Small business must be nimble and adjust to market changes; size does not always matter. Incentivize business profit-sharing and/or employee stock ownership. Tie in sweat equity (having “skin in the game”) as a fundamental component of any government assistance - again, with the exception of those genuinely in need.The human spirit has endless potential. We need to rethink and retool our efforts to harness this force and to unleash it productively. Income redistribution and living wages by themselves are counterproductive. But when properly applied with complementary incentivizing strategies, watch poverty levels begin to shrink.Universal or national service is a viable public policy that would help redirect and rekindle a national pride, an esprit de corps, much as the Civilian Conservation Corps and Works Progress Administration did during the Great Depression. Young folks would receive valuable training and experiences away from home, giving them the chance to mix with colleagues while teaching, constructing, and providing community service. They would learn to work collaboratively, their skills and talents applied in a growing jobs market.Whence such jobs growth? Refer back to a revised business tax system that rewards job creation and avoids stringent regulation (something stifling current jobs creation), providing, again, rewards for effort and creativity, That’s in contrast to our current system’s rewards for indolence and claiming victimhood.Such common-sense public policies would help address the poverty victims Professor Hughes cited and create more victors, helping to redress the income-inequality issue. When have higher taxes created  more wealth and/or economic growth? Tom Wheeler is a longtime Duluth-area businessman, civic leader, philanthropist and regular contributor to the News Tribune Opinion page.“Eliminate poverty through public policy.” That was the topic of University of Wisconsin-Superior Professor Emeritus Bernie Hughes’ Local View column on Sept. 22. I seem to recall President Lyndon Johnson declaring a “war on poverty” in the mid-1960s. How has that worked out? Half a century later, with ever-expanding rates of poverty, what have we, the taxpayers, to show (or to conclude) relative to the effectiveness of such public policies and the staggering sums expended?
Might there be other ways to address this pernicious poverty problem?How about creating incentives to reward true effort? We have created an entitlement outlook; people have forgotten what President John F. Kennedy said in his 1960 inaugural speech: “Ask not what your country can do for you; ask what you can do for your country.” In other words, old-fashioned values like hard work, aka work ethic, and responsibility still apply.Throwing money at a problem like poverty does not solve it. Welfare, public housing, food stamps, Social Security disability, extended unemployment benefits: while well-intentioned, they all are disincentives for a productive response. And they’re riddled with too much abuse, waste, fraud, and double-dipping.Helping those who truly have a mental illness or who physically are unable to work must continue. But how do we most effectively create a hand up instead of a handout for others? What data do we have on folks who’ve successfully climbed out of poverty? What do they say worked for them? To empower folks, we could revise our federal tax system to get rid of all tax deductions except charitable giving, to create a simplified flat tax so all persons pay something for the privileges we Americans enjoy, and to create policies to favor small business, the sector where most job growth occurs.Small business must be nimble and adjust to market changes; size does not always matter. Incentivize business profit-sharing and/or employee stock ownership. Tie in sweat equity (having “skin in the game”) as a fundamental component of any government assistance - again, with the exception of those genuinely in need.The human spirit has endless potential. We need to rethink and retool our efforts to harness this force and to unleash it productively. Income redistribution and living wages by themselves are counterproductive. But when properly applied with complementary incentivizing strategies, watch poverty levels begin to shrink.Universal or national service is a viable public policy that would help redirect and rekindle a national pride, an esprit de corps, much as the Civilian Conservation Corps and Works Progress Administration did during the Great Depression. Young folks would receive valuable training and experiences away from home, giving them the chance to mix with colleagues while teaching, constructing, and providing community service. They would learn to work collaboratively, their skills and talents applied in a growing jobs market.Whence such jobs growth? Refer back to a revised business tax system that rewards job creation and avoids stringent regulation (something stifling current jobs creation), providing, again, rewards for effort and creativity, That’s in contrast to our current system’s rewards for indolence and claiming victimhood.Such common-sense public policies would help address the poverty victims Professor Hughes cited and create more victors, helping to redress the income-inequality issue. When have higher taxes created  more wealth and/or economic growth?Tom Wheeler is a longtime Duluth-area businessman, civic leader, philanthropist and regular contributor to the News Tribune Opinion page.