First World Destruction of Entrepreneurship - Welfare vs. Production

With the growing welfare programs in “advanced” economies, what happens to the desire to produce value? What’s the point in striving to get ahead when all effort results in losing any ground gained to reduced benefits?

In countries without rampant welfare programs, people find ways to produce value. It might simply be entertainment, but that’s better than sitting and holding out a cup.

Here are vendors set up along Reñaca Beach. Back by the bar you can see someone has various goods laid out on the short wall.

This is one thing I absolutely love about Chile. There is a constant free market all around, dependent upon others voluntarily compensating them for their service. You can't walk around in a busy area without seeing someone offering some sort of entertainment for tips. Here's Los Porteños.

Los Porteños was at the park in Viña del Mar. I bought three CDs from them and love to listen, even though my Spanish stinks and the camera wasn't the best. But they still sound great! Here's a picture of me with two of them.

Which system is better: One that steals from those who produce in order to give to those who do not? Or one that leaves people to find a way to produce value in order to be compensated?

Here are some things to expect on the streets in Chile.

- I very rarely see someone begging with a cup in Chile, other than the occasional elderly or crippled person.

- Some perform tricks, gymnastics, juggling or other forms of entertainment at busy intersections. You hit a red light, then kick back and enjoy the show. When they’re done they walk among the cars with hands ready to receive voluntary donations.

- Bus stop assistance. This is something we in the US are not used to considering. In Viña del Mar there’s a man who stands ready to assist people in finding the right microbus. If you’re not from the area, this can be incredibly important. As I was showing a visitor around the area, we were assisted in getting on the right bus. I told my guest that he was waiting for a tip. My client’s response? “Fat chance.” You see, he was conditioned to think that the guy was paid to do this. But he relies on the generosity of those he helps to put food on the table. After tipping and boarding the bus, I explained to my guest how the system works. He had no idea.

- Entertainers – They’re common to see on the streets and even on metros and buses. They’ll board at one stop, play a few songs, get donations, then get off and go to another bus or metro. Sometimes they sing, tell jokes, do skits or play instruments.

- Provide convenience – You’re driving along when you see a man standing in the street with some beautiful strawberries. Knowing that your wife loves strawberries, you pay a little extra for the convenience. Anything from candy bars to produce to electronic gadgets are offered by these enterprising individuals who are providing real value.

Here's Juan in Valparaíso, selling jewelry that he made.

- One thing that would strike Americans as odd is the lack of public restrooms. In fact, from what I understand, until a few of the big box stores showed up, there really was no such thing as a free public restroom in Chile. Even in the bus station and other such places, you must pay in order to use the restroom. Here's a sign I saw when walking along the beach in Viña del Mar. It sure beats taxing everyone to maintain it.

Rather than sitting around shuffling paper in order to appeal to some bureaucrat to release tax dollars to help put food on the table, these people are providing a service to others. Whether it’s convenience by providing a tangible good, entertainment, an opportunity to take a much needed leak or some other service, their goal is to provide value and receive compensation for their efforts.

How much better for a society to have such a structure than one that robs ingenuity and productivity in order to reward laziness? When the latter exists, there is no incentive and the culture begins to break down and crush itself, which is exactly what we see happening in the US today. Even if someone did take the initiative to do these things, the draconian system of regulation would preclude their ability to do so legally. And the asinine minimum wage laws inhibit many people who could otherwise produce value from being able to find state approved employment.

Chile has some of this idiocy too, like minimum wage laws for nannies. Perhaps all countries do, to one extent or another. But hopefully the bureaucrats won’t intrude any further into the freedom the people enjoy in producing value in order to put food on the table.

And, next time you see someone adding value to your day, try not to take them for granted and consider a tip… a monetary one.

Steemin' on,
Another Joe