It would take little more than $50 billion to raise every poor person above the official poverty line, yet the percentage of the population classified as poor hardly budges, while annual welfare spending amounts to four times that much. Where's the money going?

Notwithstanding what some regard as the institutionalization of compassion, the transfer society quashes genuine virtue. Redistribution of income by means of government coercion is a form of theft. Its supporters attempt to disguise its essential character by claiming that democratic procedures give it legitimacy, but this justification is specious. Theft is theft, whether it be carried out by one thief or by a hundred million thieves acting in concert. And it is impossible to found a good society on the institutionalization of theft.

The beginning of political wisdom is the realization that despite everything you’ve always been taught, the government is not really on your side; indeed, it is out to get you.

Recipients of transfers set a bad example for others, including their children, other relatives, and friends, who see that one can receive goods, services, or money from the government without earning them. The onlookers easily adopt an attitude that they, too, are entitled to such transfers. They have fewer examples of hardworking, self-reliant people in their families or neighborhoods.

Without popular fear, no government would endure more than twenty-four hours.

Of course, political leaders are much more ambitious than gangsters. The latter are content to take your money, whereas the former, besides taking far more of your money, have the effrontery to violate your just rights whenever their convenience dictates.

Government spending either is completely wasteful, merely transfers income, purchases an intermediate rather than a final good, or purchases valuable final services whose value cannot be ascertained because the transaction is not made by private parties exchanging their own resources in a market setting.