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by mikeash 4758 days ago
Why exactly is this worth noting?

Nobody jumps to point out that there's still somebody paying for the "free" tiers of Dropbox or GitHub or whatever. Yet the moment somebody mentions a "free" social program, people suddenly have to hammer on the point that somebody pays for it.

We're not a bunch of imbeciles who think that social programs just rain from the sky....

6 comments

There are plenty of people that think the government has unlimited money and should spend it on the people. These people don't know that it is literal wealth transfer from one person to another with the government acting as middle man. Sure, you may realize that this is the case but many people don't.

It's the same mentality that leads people to believe that insurance companies should pay for everything until they realize that it is other insurance company customers (including thenselves) that actually foot the bill for it.

> There are plenty of people that think the government has unlimited money

Technically, any government that has sovereign control over its currency does have unlimited money. We have examples of governments utilizing this fact to disastrous results, but that doesn't make it less true.

> These people don't know that it is literal wealth transfer from one person to another

This isn't necessarily true. For state governments or governments that don't have a sovereign, fiat currency, it is true, but not for a national government like the USA federal government. If it were true, all wealth would be a "zero sum game."

You're correct about people's misguided perceptions about government spending and insurance companies, but it's also harmful when the pendulum swings too far the other way, and we don't want the government to spend any money because we think it only obtains that money via taxes.

Do any of those people post on HN?
Or exist, for that matter?
If you ever have the misfortune to work near or in social services, then you realize yes they exist and are not an urban myth. Sadly, some government programs encourage the behavior (e.g. "free" cellphones).
"Obama gave me a phone!"
You would be surprised about how many people don't realize that or who choose to ignore it.

My aunt for example really doesn't understand that the government has any limits on their funds at all. She proposed to me that shopaholics should be given money by the government to found their addiction.

> Why exactly is this worth noting?

Because it's one of the best ways to make sure it never happens in the US. Another good way is to call it Socialist.

I disagree, there is a tremendous amount of discussion here on HN about the real cost of "free" services, particularly in light of the recent end of Google Reader, sale of Instapaper, etc.
Reading through the comments on the current front-page stories about Bitbucket and Zynga, I don't see a single comment saying that their free services aren't really "free".
There are many imbeciles who think that social programs just rain from the sky. Maybe not so much here.
Irregardless of your extremely poor attitude, I shall point out the obvious: 'ProcessBlue' himself has stated in capital letters that it is free. I was just correcting that.
Everybody knows what "free" means in that context, so your "correcting" is not actually adding anything to the conversation. Perhaps you think you are informing people, but everyone who reads your comment already knows what you're saying, so it's not informative at all.
Regardless whether or not people are imbeciles, they still have a habit of abstracting away common knowledge, and then forgetting that the common knowledge exists. I see this all the time in the computer industry. It's good to remind everyone now and again that free is not necessarily free.
Thinking about it though, if you are assuming people are operating at that level and don't understand what the "free" means in this context, do you really think a simple explanation will all of the sudden enlighten them?

Using the analogy and talking about common knowledge in computer industry, this is basic enough that's the equivalent of "most computers need an electrical supply to work". If you are talking to someone about building a data center or scaling out a database and then you need to remind them that computers don't work based on unicorns but on electricity not sure if it makes sense to even remind them or continue the conversation.

Why do people only ever bring this up with social programs, and not any of the many other "free" things that are discussed around here?
Because social programs get their money from coercion. GitHub doesn't. (To the extent that you think you can find a private company that can and does use coercion, I object to that too.)

Even as a liberatarian, I'm happy to say some things are well worth the coercion. But it should never be forgotten, because otherwise people do start thinking it's just free money that has no other concerns whatsoever, and start spending it stupidly. We know this by simply looking around at political discourse, to the point that I almost wonder if you're dissembling when you claim that nobody thinks this way. Look harder. We should never forget that social spending is a cost/benefit question that never has zero costs.

I actually personally find it a bit bizarre that people find this an objectionable statement. Realizing that money is not free and should be spent on worthwhile things to account for the coercion should lead to better spending. Defending the proposition that we shouldn't be so concerned about the costs is a recipe for producing less efficient spending, as always happens when costs are misjudged. The fact that this sort of thing has been politicized ought to lead you to wonder who is politicizing it, and what they're hiding behind it.

I don't think any of the people who think taxes are free money post to HN.

Constantly reminding HN posters that "free" government programs actually cost money, like every single other thing in life, just derails the conversation. It serves no useful purpose, because we already know. It's just political grandstanding.

Imagine if every single post on HN about the success of some company included comments like, "it's not really their success, since they used public roads and electrical infrastructure, oh and that whole Internet thing started out as a government program!" You'd probably get annoyed pretty fast at people shoving their politics in your face where it's unnecessary.

> people shoving their politics

How is pointing this out politics? If pointing it out is politically conservative, ignoring it is politically liberal? I don't get it. It's one of the few economic absolute truths we have.

> "it's not really their success, since they used public roads

That happens already. You didn't build that! http://en.wikipedia.org/wiki/You_didn%27t_build_that

Despite a set of politicians views, that wouldn't be the logical conclusion.

The services provided by the government are paid for by the people (citizen and non-citizen) as taxes, foreigners as duties, or debt. The logical conclusion is that a person or company is paying for those roads and infrastructure. It is just another service, no more sacred than the cellular contract or rent on office space. We don't generally attribute the rent to our success.

'Imagine if every single post on HN about the success of some company included comments like, "it's not really their success, since they used public roads and electrical infrastructure, oh and that whole Internet thing started out as a government program!"'

Errr... I don't really have to imagine. That happens pretty frequently. I sort of agree that it's a grandstanding distraction either way.

  Because social programs get their money from coercion
Language matters, and the verb 'coercion' in this context, to me, is actually repugnent.

Here's what Wikipedia has to say (http://en.wikipedia.org/wiki/Coercion):

"Coercion /koʊˈɜrʃən/ is the practice of forcing another party to act in an involuntary manner (whether through action or inaction) by use of threats or intimidation or some other form of pressure or force,"

I don't see taxes (and I pay a fairly significant share) as our evil government squeezing out our hard earned cash by threatening, or intimidating us.

Quite the opposite: taxes are our entrance fees to a civilized society, to a working infrastructure, to good and fair education and to umpteen other things that make up a society.

You may argue how the public money is spent and how much of it should go into social programs and how deeply the state should get involved. Interesstingly, more equal societies, like the Nordics, seem to provide generally a higher quality of life for their citizens.

You can see taxes as a necessary evil, or hate them, but defining taxation as coercion is pretty loaded and rather close to Orwellian newspeak.

"You can see taxes as a necessary evil, or hate them, but defining taxation as coercion is pretty loaded and rather close to Orwellian newspeak."

In addition to what refurb said, I feel you're exactly backwards. We should always remember that taxes come from the threat of imprisonment if you don't pay and coercive force. There are things that are worth this threat. Civilization is a big deal. It's a good thing. I'm rather Hobbesian on my view of Nature; in that sense I'm probably more enamored with civilization than the average liberal who believes in the inherent goodness of man. I think we have much farther we can fall than such a person would. But people should not casually use this power. To wipe away the fact that taxation is coercive is to encourage attitudes that spend your time and energy on irrelevant, if not downright wrong, purposes. That's not something we should overlook.

Taxation is a big deal. It's intrinsically coercive. It should only be used on really important things, not for things like shutting up some interest group somewhere, or buying votes, or lining the pockets of your buddies, or worthless administration (and please note the word "worthless" isn't superfluous there), or any of the other myriad of ways government can coercively spend the fruits of our precious, precious time on this planet.

That said, by the way, I think this particular thing is a solid use of taxpayer dollars. Or at least it is, provided it's somewhat efficient; if they're managing to blow $10,000 a box or something, as the US government would probably find a way to do (a snipe at our particular government today, not the concept of government in general), that's less true.

Also, if you do not today agree with me, wait three years. When a Republican is President again, it will once again be a popular notion that we shouldn't have to pay our taxes blindly to the government and we should think really carefully about how we're spending on things. I'm just ahead of the progressive curve here, that's all.

Taxation is a big deal. It's intrinsically coercive. It should only be used on really important things, not for things like shutting up some interest group somewhere, or buying votes, or lining the pockets of your buddies, or worthless administration (and please note the word "worthless" isn't superfluous there), or any of the other myriad of ways government can coercively spend the fruits of our precious, precious time on this planet.

That's a very good point. I, for one, consider taxation to be theft, plain and simple. But yet I don't try to defend myself from this theft via force, for pragmatic reasons (they employ more men with guns than I do, for one). So, I grudgingly tolerate a certain level of coercion, even though it is extremely distasteful to me.

BUT... I maintain that if you're going to steal my money and spend it - nominally - in my name, then you better damn well spend it wisely and on something important. This is one reason government agencies piss me off so much.. I see so much waste and inefficiency and fraud and other shenanigans, and it just enrages me that they are taking my money and blowing it on idiotic shit, or - worse - things that I'm fundamentally morally opposed to.

"Coercion /koʊˈɜrʃən/ is the practice of forcing another party to act in an involuntary manner (whether through action or inaction) by use of threats or intimidation or some other form of pressure or force,"

I don't see taxes (and I pay a fairly significant share) as our evil government squeezing out our hard earned cash by threatening, or intimidating us.

And what if you decide that you have a better idea of how to spend your money than the State, and stop paying "your taxes"? Do it long enough, they send men with guns to arrest you, and put you on trial and (probably) put you in jail. If you resist any portion of this process, you will probably be shot to death by the men with guns.

How is this not "use of threats or intimidation or some other form of pressure or force"?

All State power is ultimately rooted in the use of force. Just because many (even most?) people happily pay "their taxes" out of rote habit, or because they've grown to accept a certain measure of coercion as acceptable, doesn't change the underlying principle.

I guess it is not coercion due to the fact that no one is preventing you by force from packing your bags and leaving the USA.
Different strokes for different folks.

Taxes are certainly not voluntary. If you do not pay them, you will be coerced into doing so. Hence the use of the word.

You say that using the word "coercion" is repugnant, and then quote a definition that perfectly fits taxation? You've got some nerve. You can see it however you want, but if you don't pay taxes, someone will come and physically haul you off to jail whether you like it or not, someone who is prepared to escalate to deadly force. Sure sounds like coercion to me.

Taxation might make sense as an "entrance fee" if someone asked you whether you wanted to participate, and gave you an honest chance to say no, but we don't really have that. You usually can't even just hide out on your land and not interact with anyone except dealing with trespassers, because of property tax, a form of coercion I find particularly repugnant.

Yes, language matters, which is why "coercion" is the perfect word for taxation.

It is a curious thing that you object to this.

Are you not also being coerced to conform to virtually every other societal norm? Try walking out naked down the street in broad daylight. See if you're not jumped by the police. Try hunting some deer in the non-hunting season for food, -- because afterall you're hungry and the meat would do: you'll meet the heavy side of law.

You're seeing things from a libertarian-lens I think. Human society is built on a social contract, that pretty much basically boils down to an agreement of certain rules and guidelines so the collective fares better in the end. It's a thing to avoid a tragedy of the commons. We recognize that the unprivileged are not given the same opportunities as the privileged ones (their children are not going to schools where their peers are supportive/smart, they don't have the right role models, they don't have access to the same resources), and we decide that it is only fair that they receive a little help from the privileged. You can choose to stop paying taxes and in the end be left with a deteriorating society with unable customers... but you don't want that do you? What is so hard to understand about this?

> You can see taxes as a necessary evil, or hate them, but defining taxation as coercion is pretty loaded and rather close to Orwellian newspeak.

By your own copypasted definition, how can they be anything but?

Even if you love taxation and government spending, this is factually true.

Because social programs get their money from coercion.

Garbage. I quite like paying taxes, because it suits me to outsource some money allocation to the government. You have a vote, and presumably when you benefit from things you voted for you don't go around feeling guilty at how you've coerced other people into going along with it.

Defending the proposition that we shouldn't be so concerned about the costs

You're focusing only on the costs, while ignoring the potential savings. Finland spends this money because it expects to get something in return: lower infant mortality, and its correlate, lower rates of infant ill-health and negligence. Bringing a baby to term and delivering it only to have it die represents a massive loss of productivity, and that loss is not confined to the grieving or irresponsible parents, it ripples out through society, both via spending by the parents' relatives and friends and through loss of economic productivity from illness, despression and so forth, not to mention that underprivileged children who do survive are more likely to suffer from mental illness, fall into crime, become homeless etc.

This notion that social programs are just a cost and deliver no benefit is asinine. It's highly economically efficient to provide new parents with the essential tools for looking after a baby, and a great more productive than issuing homilies about the (tiny) marginal increase in taxation that results.

"You're focusing only on the costs"

Bollocks. I'm saying we should talk about the costs, not ignoring the benefits. I actually think this is a net good move on Finland's part. I know you're projecting, since you've imputed claims to me I actively disagree with.

Well, why is it so imperative that we talk about the costs if we're in a agreement that there's a net benefit? Perhaps I am projecting, but generally when people are at pains to point out that things are not free and there's a cost, what they mean is that there's a net cost to society (or think that there is) and that the money would be best spent somewhere else or not collected at all. When you lead off with a complaint that the money from social programs was extracted from you by 'coercion' the implication is that you're being forced to pay for something people should have to finance themselves.

I really don't get how you think this is a net good move but couch your argument in the form of a complaint about the government taking your lunch money. By definition, a net good is economically less costly to provide than to withhold. Even over the very short term (ie within the same fiscal year) I suggest that the opportunity cost of supplying the baby box is no more, or possibly lower than the costs of autopsies and lost productivity resulting from a higher rate of infant mortality.

This is far from unique to social programs. In the US defense spending is ridiculously over the top stupidly high because in large part because there is little cost benifit analysis just how much can we increase it. The same can be said for targeted tax breaks, capital gains being taxed at 15% shafts everyone that does not have significant investments.
"You keep using that word. I do not think it means what you think it means."