Government is taking us a long way down the Road to Serfdom. That doesn't just mean that more of us must work for the government. It means that we are changing from independent, self-responsible people into a submissive flock. The welfare state kills the creative spirit.
F.A. Hayek, an Austrian economist living in Britain, wrote "The Road to Serfdom" in 1944 as a warning that central economic planning would extinguish freedom. The book was a hit. Reader's Digest produced a condensed version that sold 5 million copies.
Hayek meant that governments can't plan economies without planning people's lives. After all, an economy is just individuals engaging in exchanges. The scientific-sounding language of President Obama's economic planning hides the fact that people must shelve their own plans in favor of government's single plan.
At the beginning of "The Road to Serfdom," Hayek acknowledges that mere material wealth is not all that's at stake when the government controls our lives: "The most important change ... is a psychological change, an alteration in the character of the people."
This shouldn't be controversial. If government relieves us of the responsibility of living by bailing us out, character will atrophy. The welfare state, however good its intentions of creating material equality, can't help but make us dependent. That changes the psychology of society.
I'll explore this tomorrow night on my Fox Business show, 8 p.m. Eastern (rebroadcast Friday at 10 p.m.).
According to the Tax Foundation, 60 percent of the population now gets more in government benefits than it pays in taxes. What does it say about a society in which more than half the people live at the expense of the rest? Worse, the dependent class is growing. The 60 percent will soon be 70 percent.
Rep. Paul Ryan of Wisconsin seems to understand the threat: He's worries that "more people have a stake in the welfare state than in free enterprise. This is a road that Hayek perfectly described as 'the road to serfdom.'" (Tomorrow I will ask Ryan why, if he understands this, he voted for TARP and the auto bailouts.)
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