Frauds and Swindlers

by Don Boudreaux on March 20, 2010

in Politics

In today’s Washington Times, Richard Berman understandably laments that “Unfortunately, some of our $300 billion in annual donations [to private non-profit organizations] goes to frauds and swindlers instead of aiding legitimate charity work.”

Berman is right to condemn such shysters.  But let’s keep matters in perspective: Uncle Sam now annually confiscates 12 times the amount that Americans give voluntarily to non-profits.  And not just some, but every one, of those confiscated dollars “goes to frauds and swindlers.”

Moreover, once a private non-profit is exposed as being a nest of con artists, people can choose to stop funding it.  In contrast, Congress routinely displays itself publicly as being a covey of clowns whose irresponsibility would embarrass any town drunk and whose legerdemain is legendary.  Yet persons who see the true nature of the frauds and swindlers on Capitol Hill are imprisoned if they choose to stop funding Congress’s operation.

UPDATE: “Anonymous” e-mailed me a moment ago, presumably after having read this post, and challenged me to provide one “clear example of Congress’s shystering.”  Gee – so much to choose from.  So here: read this recent post from the ever-diligent and careful Arnold Kling.

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  • pylon
    berman runs 18 501c3's. charities. for personal gain. nice source.

    www.bermanexposed.org
  • Gil
    Legerdemain: n. Sleight of hand. A show of skill or deceitful cleverness.

    Ohhh! Fancy that.
  • vikingvista
    From what oblivion did "Anonymous" emerge to even have to ask such a question.
  • Marcus
    There's an even better current example than that Don. Ask "Anonymous" why the House Democrats can't simply pass the Senate version of the health care bill.

    Reason? Because in the House version all the Democrats raided the public trough for all the could get out of it. If the House passed the Senate version, the House Democrats wouldn't get their plunder.

    So clearly, the health bill doesn't have anything to do with the public good. It's about the power elite wanting power and the rest of the representatives using their positions in Congress as leverage to be paid off by the power elite with public money.
  • Tybout
    If you don't like the tax rates you pay for local public goods in your State/locality you are free to move to a lower-tax state. If you don't like the Federal taxes, the lowest in the OECD, then you are also free to move to the Carribbean where you can buy citizenship (and lower taxes) at quite reasonable prices.

    Of course you can and should speak out if you think those tax rates are too high, but you don't sound very serious when you call all taxation 'confiscation.'

    All Taxation is theft the same way that all property is theft.
  • vikingvista
    I'm glad you feel that way. I'll be sending a couple of my boys over to "your" house to get the TV from the living room. Don't worry about getting the door, they have a crowbar.

    Oh, by the way, if you don't like this policy, then feel free to buy a "Carribbean" citizenship.
  • Methinks1776
    then you are also free to move to the Carribbean where you can buy citizenship (and lower taxes) at quite reasonable prices.

    You could before the U.S. government became more tyrannical. Now, it's pretty much as difficult or more difficult to immigrate OUT of the U.S. than to immigrate in. If the government doesn't allow you to renounce citizenship, they tax you no matter where you live in the world.
  • vidyohs
    I agree with nailheadtom, but if you have a case to make you'll have to begin with the definition of property that you had in mind in your equation.

    What would that definition be?
  • nailheadtom
    "All Taxation is theft the same way that all property is theft."
    ______________

    Gets my vote for "Most Ridiculous Statement of the Week".
  • Jason
    Does Uncle Sam actually confiscate 12 times that amount or merely promise to confiscate that amount? A bit of semantics, but while the budget might be over $3T, I don't believe federal tax revenues are anywhere close to that.
  • tomharvey
    The gap between revenue and spending is confiscated by other means.
  • David
    There was recently a story on CBS about how there is an estimated $60 billion worth of fraud every year in Medicare alone, and as taxpayers we don't have a choice as to whether or not we finance that fraud.

    I have to wonder what the number would jump to if we included other government aid programs and things such as defense contracting. The fraud argument seems to, in my opinion, support the case for private rather than "public" charity.
  • Methinks1776
    David, soon the only way to get ahead will be to "get yours" by engaging in fraud yourself. That's pretty much the only way to get ahead when a substantial portion of the economy are controlled by government. Fraud becomes so widespread that people stop seeing it as immoral and the fabric of society frays further.
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