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The Libertarian View On Poverty.
In 1996, JoAnne Cornwell decided to open an African hair-braiding salon in San Diego. Cornwell, an African-American, had learned a unique technique for hair-braiding from her grandmother. She wanted to use her skill--and her love of her African heritage--to start a new business.
California bureaucrats had other ideas. The state's Department of Consumer Affairs brusquely informed Cornwell that she would have to attend 1,600 hours of schooling at a cost of $5,000 to obtain a cosmetology license from the state. This was the law, even though African hair-braiding was not taught in cosmetology classes.
Cornwell was lucky. She found a public interest law firm willing to help her. After two years in court, she finally won the right to open her hair-braiding shop.
Others aren't so lucky. A myriad of regulations, licensing requirements, taxes, and fees keep thousands of poor Americans from starting small businesses and lifting themselves and their families out of poverty.
Since President Lyndon Johnson declared a "war on poverty" in the mid-1960's, the United States government has spent $5.4 trillion** on programs to help the poor. Despite this outpouring of cash, the official poverty rate has been stubbornly stuck at about 14% for the last 40 years. However well-intentioned these programs may have been, they failed in their most fundamental task: to lift Americans out of poverty.
Libertarians believe there are better ways to help people rise above the poverty line. We propose to tear down the barriers to work and job creation by repealing any government regulation or tax that cuts the bottom rungs off the economic ladder and makes it more difficult for poor people to find jobs and start businesses.
We also propose to establish a dollar-for-dollar tax credit for contributions to private charities. With Americans being the most generous people on Earth, our contributions of $125 billion annually would swell with a 100% tax deduction, allowing charities like Habitat for Humanity and the American Red Cross to provide services to the poor.
Lastly, we would propose an end to the federal welfare programs. Private charities are better positioned to meet the diverse needs of people in their communities by providing aid, counseling, career training, and support services that are relevant to their local residents.
** Note: How much is $5.4 trillion? If you drove seven days a week, twelve hours a day, and averaged 65 miles an hour while moving, it would take you more than 1832 years to drive past 5.4 trillion dollar bills laid end to end.
If you know a story about governmental regulations preventing the opening of a small business
, e-mail us.
Re-Printed Courtesy of
MCLP.
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