DAILY TOL: Tree of Liberty

The law of unintended consequences is one of those immutable things that generally creates havoc with even the best laid plans.  When looking at the recently passed $800 billion spending package, I think there are few who would argue that it was a well laid plan, so the previously mentioned law is only heightened in its affect.  As a brief aside, I really like the Obama Administrations commitment to additional transparency, as evidenced by their commitment to having new legislation published 48 hours prior to a vote.  I like that even more than the promise not to have lobbyists serve in senior positions.  I’m less excited and more than a little disillusioned that over the past three weeks both promises were broken on multiple occasions.

But back to the point of this post.  I’m a bit on the horns of a dilemma.  What does one do when faced with the very real prospect that doing the personally responsible thing is not the best thing for their family?  I honestly believe that the recent “stimulus” legislation and the upcoming housing legislation will place people in that situation.

I don’t really have answers here, but do have some personal experiences to relate on which others may ruminate.  All the examples below are real situations that either I or those around me are dealing with.  As with most things I will post in this forum, I don’t see them as partisan but rather ideological.  IMO, People often ascribe a party to ideology when they shouldn’t.

Example 1:  Stay at home mom reluctantly re-enters the workforce to help cover a child’s college expense.
Governmental Consequence:  If this mom stayed home, their family could qualify for grant assistance under last week’s bill.  In addition, under a similar provision in the upcoming housing bill, her family could qualify for a reduction in interest rate, mortgage principle, or both.
Question:  Why not just stay home and let the government pick up the bill?

Example 2: Family 1 has on multiple occasions, deferred the purchase of new cars to keep debt and cash flow at what they believed were responsible levels.  Their neighbors, Family 2 have replaced both vehicles within the past two years and have done so with cars priced 40k+.  These neighbors are now faced with reduced bonuses at work and are having difficulty making mortgage payments.
Governmental Consequence:  Under proposed housing bill such people are considered under distress and eligible for having the terms of their mortgage reset by the courts.
Question:  Why shouldn’t Family 1 roll the dice and enjoy new and safer cars every couple years and if things go south, just have the government reset their mortgage.

Example 3:  Wife 1 is working in a job that she tolerates but is not her passion.  She is the primary breadwinner so works diligently at here current job while exploring other options.  Wife 2 believes she is entitled to have work that fulfills her completely, so quits her current job.
Governmental Consequence : Under current law, if someone quits their job or is fired for cause (stealing, violence, etc) they are NOT eligible for unemployment benefits.  Under the bill passed last week, employees CAN receive unemployment benefits even if they voluntarily quit their job for a compelling reason.  A list of compelling reasons is not provided by the legislation and instead a “reasonable” test is used.  I’ll insert some personal bias here in positing that most people could come up with a “reasonable” explanation for why they quit their job.
Question:  Given that unemployment benefits have now a) been extended through December 31st, b) been enhanced with 60% subsidized COBRA insurance during that time, and c)  been increased in monthly payout, why shouldn’t Wife 1, follow in the footsteps of Wife 2?  Going back to my first example, why shouldn’t that formerly stay-at-home mom just quit her job.?  By doing so, she did she would get:

• College grant for her child
• Refundable tax credit for her family to cover incidental expenses not covered by the grant
• 60% subsidized COBRA insurance
• 10 Months of enhanced unemployment payments
• More time with her family

So I am back to where I started?  Why should any of us live responsible and thrifty lives?  Why not buy that new car?  Why not put that new TV on your credit card?  Why not quit that job you don’t really like?

Someone help me out here, ’cause I’d like a new car, perfect job, and a home theatre system.  After all, aren’t we entitled to that?  

I will close with a quote from my namesake, the founder of the Democratic Party:

I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.

Discuss…