Wealth Is Created Not Distributed: Congressman Bob McEwen discusses the difference between free market and socialism and how to create wealth and reverse poverty. He brings simple definitions and real life examples of both scenarios.
Air Date: 2016-12-23
Guests: Former Congressman Bob McEwen (OH)
- Politics Easy as PIE
- WallBuilders | American historical events, founding fathers, historical documents, books, videos, CDs, tapes, David Barton’s speaking schedule.
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Transcription note: As a courtesy for our listeners’ enjoyment, we are providing a transcription of this podcast. However, as this is transcribed from a live talk show, words and sentence structure were not altered to fit grammatical, written norms in order to preserve the integrity of the actual dialogue between the speakers.
Welcome to the intersection of faith and the culture this is WallBuilders Live! Thanks so much for joining us today! We’re discussing today’s hottest topics on policy, faith, and culture all from a Biblical, historical, and constitutional perspective.
Just think about it you pick your issue, pick the topic, whatever it is. If you would take a Biblical approach to that issue, if you’ll step back and look in the context of history and learn from what’s worked and what didn’t work. And then also apply those timeless, constitutional principles that we have. You do those three things, folks, you’re going to find the right position on any issue.
And so that’s the approach we take here at WallBuilders Live. Normally, we’re here with David Barton, America’s premier historian and our founder and president here at WallBuilders, also best selling author and one of Time Magazine’s top 25 most influential American Evangelicals. Also normally joined by Tim Barton, national speaker and pastor. And my name is Rick Green, I am normally here, too. Now, I am not going to be for the rest of the program. So the three of us won’t be on the program today.
Pro Family Legislators Conference
In fact, we’re going to have Congressman Bob McEwen steal the show. Congressman McEwen spoke at the Legislators Conference a few weeks back and as we try to do every year, we have outstanding presentations. We try to bring those to you, our listeners, here at WallBuilders Live.
And so two days ago we started with Congressman McEwen, yesterday got the middle of that presentation, and today is the conclusion. So if you’re feeling a little bit lost, don’t worry even diving right into it like we’re about to do. You’re still going to enjoy today’s program and learn allot.
But I do I encourage you to go to our website, WallBuildersLive.com and pick up yesterday’s program and the day before because it is such powerful information. After today though, we’ll have all three programs right there readily available for you so you can learn from Congressman McEwen as we did at the Legislators Conference. Let’s jump right in where we left off yesterday. Congressman Bob McEwen at the Pro-family Legislators Conference.
Third Party Purchase
Let us suppose that where you work, everybody that comes to work late has to put $5 in the kitty. At the end of the month, they take the money and raffle it off and that’s the way it is. The last day of the month the boss says, “John see how much money is in there and buy something with it.”
And so you go and you count out that there’s $150. And you go to lunch and sort of halfway forget about it. You’re coming back and go, “Oh my goodness, I was supposed to buy something. I don’t have time for this. What am I going to do?”
You look over and there in the store window is a six foot tall, stuffed frog. And you go over and you check the price and it is $149. That’s great. So you buy the frog and shove it in the closet until the end of the day. The boss invites everybody down, lectures them about being late and then everybody draws the numbers to see who wins.
Sally, the new secretary wins the six foot tall frog. “Oh this is so great.” Everyone claps and cheers. She shoves it into the front seat of her car. She drives off with the thing sitting in her car. Everyone thinks it’s so funny. What’s that thing called? That is called the third party purchase.
Purchased With Someone Else’s Money
A third party purchase is purchasing something with money that’s not yours. Therefore, you do not care about the price. If it would’ve been a $100, he would have spent it. If it would’ve been $500, he’d spend that. He didn’t care about the price. It’s not his money.
When you purchase something that you will not personally consume, you don’t care about the quality. Now, as we’ve said that in public speaking, they tell you that when you want to make an important point that it’s vital that you pause for emphasis. And so I am now going to pause for emphasis because because what I’m about to say isn’t Democrat, Republican, conservative, or liberal. This is just the facts, Jack.
All Government Purchases Are Third Party Purchases
All government purchases are third party purchases made with money that’s not theirs, to purchase things that they will not personally consume.Therefore, will it be wasted in the highway department? You betcha. Will it be wasted in the defense department? You can count on it.
That’s why we believe as Abraham Lincoln said, “The government should do only those things which a man cannot do better for himself.” Why? Because every time we take a dollar from an individual, to save and invest and use to the maximum benefit of themselves and their family and run it through a third party system called government, we are in the process of making the nation poorer.
Greater Freedom, Greater Wealth
You show me what percentage of the GDP has done here instead of there and the principle applies. The greater the freedom, the greater the wealth. The greater the government, the greater the poverty. And that’s what politics is all about. That is what it is about. And we’re gonna go to the next point in the fact that when the guy stands up here and says, “But I am going to give you this, I’m going to give you that.”
Very simply, “And where will you get that money? You will take it from someone like a criminal. Like the mafia. Oh the mafia,“Oh we’re caring for the poor.” Yeah sure you are. So, we do only those things.
Can we build a highway? No. Can we defend the country? No. So, there are certain things that we can’t do. Can I choose the size of my toilet bowl? Yes. Can I choose the size of my light bulb? Yes. Can I choose my own health care? You betcha. And so, let’s take that step number two to explain why “Well Bob, we need government to do some things, you know, ‘cause you understand like right, with health care, we’ve got to help the—”
Ok, fine let’s talk about that. When was the last time you heard someone complain about the price of their home insurance? And if they did, what would you do? You’d say, “Try my guy.” Because– competition. What’s the matter with health care? Whenever you see something wrong in the economy, there’s only one person can do that to you. It’s called the government.
DVD On Common Core
Hi friends! This is David Barton of WallBuilders. The current condition of education in America is abysmal. Not only is educational achievement plummeting, but every year, some 19 percent of high school seniors who graduate is completely illiterate. They can’t read at all but it was not always this way.
For generations, we taught students how to think. But after the progressives took over education in the early 20th century things began to radically change. Education shifted from thinking to learning which made the emphasis on the teachers rather than the students. And that elevated indoctrination above knowledge.
At that time, progressives also made massive changes in the way we tested students. They extended school from 8 to 12 years. They introduced graded education and they added compulsory education. Statistics prove that these changes have harmed education rather than helped it. And now the progressives are pushing common core.
On our new DVD on common core, we give you eight reasons why this current approach is so dangerous to our kids and our culture. We also show you an amazing history of education. So get this new DVD at WallBuilders.com.
Health Care Instead Of A Pay Raise
We have to look back, December 7, 1941. America’s attack and six million men immediately signed up to go to war and politicians, they want to help. So we’re going to say, “While everybody else is sacrificing their life and limb, we at the home front, we should suffer as well. And so, therefore, there should be no wage or price increases. We should have everything steady and nobody should profit from the war.”
Which if you’re a professor or something, that would make sense. But if you’ve lived in the real world you think, “This is going to complicated.” And McDonnell Douglas, once engineer, moved from Illinois to California. You can’t pay me more, why would they want to do that? And organized labor goes into FDR and says, “Whoa, whoa, whoa. You’re telling us that we can’t negotiate any more money? We’re taking money out of their paycheck every week. That’s not good for us. It’s not good for us or good for you.”
And so, being a liberal means never having to say you’re sorry. So what are you going to do to fix this? This thing is all fouled up. And so they decide, “How about if you unions, why don’t you negotiate to have the employer pay for their mortgage for their home?… Well, no that won’t work. How about if you pay for their car insurance?… No, not everyone has a car. How can they pay for their life insurance? No. How about if we can pay for their health insurance? Why don’t you negotiate to have the employer pay for their health insurance? They’ll save the money for buying it. They’ll get a benefit. We will not count it as a pay raise.”
Who Is Paying For It?
In Executive Order 92 310, I believe, the executive order said that, “If you negotiate an increase and had the employer pay for your health insurance, it would not be counted as a pay raise.” So in 1942, 5% of the people in America had someone else purchasing their healthcare. By 1945, 85% percent of Americans had someone else purchasing their health insurance.
Do we care about the quality? You betcha. Finest health care in the world. You’re the prime minister of Canada. You send your sister to America to have her heart transplant. You then you have to stand in line. If you’re in Rochester, Minnesota, one of the finest airports in the world. Why? Because of 747s in the Middle East fly to the Mayo Clinic to get the best health care on the planet.
What about the prices? Prices are all fouled up. One hospital charges this amount, one right across the street charges another. It’s foul. The doctor says, “I want these 10 tests to be done.” You say, “Yes, well doctor how much are they?” He looks at you like a cow looking at a new gate, “I don’t I don’t know how much it costs. I’m not paying for it.”
So there is the situation. What we have done is we care about the quality but we have someone else paying for it so we don’t care about the prices. Now, the prices are all fouled up. In that situation you have two options. One option would be, how about if we give the benefit that currently goes to the employer, give it to the individual. If we believe it’s a proper thing to do, we’ll allow them to deduct it and then let 330 million Americans tomorrow go out and buy health insurance.
It Works In A Free Market… Everytime
You know what would happen? It’s like that little gecko, “I will sell you a little more, for a little less cost.” The phone will ring off the hook. That crazy woman from Progressive she’ll be- — the whole thing. People will knock themselves silly and prices will collapse and quality will go up.
How do I know that? Because it only works that way in a free market, every time. You say, “Well, Bob, with Healthcare it is different.” Ok, there are two things in health care that is not covered by insurance. One is lasik surgery. So what has happened to it? It is now 10 % of the price that it was 15 years ago. And the quality has gone up.
The other is cosmetic surgery. The prices have collapsed. When there’s competition, quality goes up, prices go down. So the option would be, what if we did this. What if we had 330 million Americans purchase it and let the competition…This thing could re-write itself in 24 hours. Or here’s an idea. Oh, this is great. Why don’t we have those good, compassionate folks down at the Bureau of Motor Vehicles take over the health care system? You know the one where you take a number and sit for a month.
That’s Called Obamacare
Why don’t we have Social Security… they’re so good at keeping records. Why don’t we have them do it. And we’ll just take it away from the individual and they’ll get a bill at the end of the month and they can’t choose. And we will have 85 year old Ben pay for prenatal health care… You know government is so good at this. Why don’t we do that. That’s called Obamacare.
And if you think they don’t know what they’re doing, watch this. October 2010, those on the left believe that the only way to fix the system is through a single payer system like Canada’s. And with that they get so excited, they stand on the chair clapping…and we wait for them to settle down — Where we would severely restrict the private insurance market. What happens? Less freedom, fewer choices, and lower standard of living.
The Left Thinks This Is Wise
Where we would restrict the private insurance market and have the government provide coverage for everybody and their side clapped, and your opponents think that’s wise. And lest you think they don’t know what they’re doing. What’s the next sentence.
Let’s Keep The Good Parts Of The Arsenic
On the right, are those who argue that we should end the employer based systems and leave individuals to buy health insurance on their own. Poor little snowflakes. And there’s the two options and that’s where we come in. Because four out of five Republican congressmen don’t understand this. And so they stand up and say the majority leader says, “Well, we want to keep the good parts of Obamacare.”
So the arsenic that we’re putting in the aquarium, we went to keep the good part of the “arsenic.” You know the rat poison that we’re feeding to our babies, we just want the good parts of the rat poisoning. No, no, no. Socialism doesn’t work, ever. It never has and never will.
Freedom and competition works. Every time. Able men fear God, hating covetousness. When God says what He wants, He could name only three things. This was one of them, “Thou shalt not covet.” You don’t want to take what someone else has.
We’ve traveled around the world, people like to run up to you and say, “I’ve been to America, I’ve been to America.” My wife really wants to engage them in conversation, “Was there anything you had a America that surprised you or startled you?” The answer that came back more than anything else is, “In America, you don’t have walls around your properties. You don’t know where your yard ends or where the neighbor begins. There is no place else in the world. Do you not have walls around your property. Once you go across the Rio Grande, not only do you have walls, you have cut glass across the top of it.
America’s History With David.
This is David Barton with another moment from America’s history. Since the Ten Commandments have formed the basis of civil law in the western world for over 2,000 years, an individual is more likely to find a copy of them in a government building rather than a religious one. Yet amazingly, numerous rulings over recent years, now make it unconstitutional to display the commandments in many public arenas.
Consider what Founding Father John Adams said about this. He declared, “The moment the idea is admitted into society that property is not as sacred as the laws of God, anarchy and tyranny commence. ‘Thou shall not covet and thou shall not steal,’ were not commandments of Heaven. They must be made inviolable precepts in every society before it can be civilized or made free.” John Adams believed that no society could remain civilized if separated from the Ten Commandments.
For more information on God’s hand in American history contact WallBuilders at 1 800 8 REBUILD
Do Not Covet
Our good friend went to a prayer breakfast in Costa Rica and we went out to eat. The girls go into the restaurant and we’re standing there talking. I said, “Shouldn’t we go in?” Finally, after a while, a fellow materializes out of the woodwork. He gives him some money and we go in to eat and he has someone watch his car while we’re in the restaurant. And that’s one of the best countries in Latin America.
Because in America, we grew up never coveting what they have. We never said, “I want to take that guy’s car. I want to take that guy’s house.” We sat there under a tree and said, “Someday I want to have a car like that. Someday I want to have a home.”
And we could, under free enterprise, you produce it and you create it. But when you covet, when you take from someone else, that person is diminished the degree to which your benefit. And that destroys incentive on their part. Rewarding you for something you didn’t do, which God said is evil. So if I can name three things that I want you to do in running your government, one of the three things is, thou shalt not covet. Those are the kind of people we want in office.
And so free enterprise, there’s a car going down the road. How do I get money out of that car? There’s only two ways. One of them is called free enterprise. That’s where I lay awake at night figuring out ways to do something good for a person such that they slam on the brakes pull in and say, “Oh I’d much rather have my car nice and clean. And my goodness, can you sweep out the carpet? I’d much rather have that, than have this $10 bill. I would much a pair of shoes than this $50. A GPS, I will never get lost again. That’s worth more to our dollars. That’s wonderful. I would much rather have that.”
The Only Way Wealth Is Created
So under free enterprise, you create a blessing to people, such that they voluntarily make an exchange, which at the end of the exchange, they are both better off. They have created wealth. They are wealthier than they were. And this is the only way that wealth is created. This is the only way wealth is created. I grew up Pentecostal, you say it 3 times. This is the only way that wealth is created. Where I figure out a way to bless another person so that they voluntarily reach in their pocket and make an exchange so we are wealthier than we were before.
Let’s hit it again. You got a farmer with a pile of wheat. You’ve got a baker with 10 empty ovens. The baker says, “If I had his wheat, I could make donuts in the morning.” Farmer says, “I don’t need this wheat. If I had his money, I could put to a new tractor and a roof on the barn.” The two make an exchange in which at the end of exchange they are wealthier than they were before and they have created wealth and that is the only way wealth is created.
So the car is going down the street. I lay awake nights figuring out how to come up with things that are good for them. And so I invent these apps, and I design things, and such that this little 4 % of the population of the world called Americans have more inventions than the other 96 % combined. But there is one other way that I can get money out of that person. And that’s called socialism, where I just come and take it.
Socialism: The Redistribution Of Wealth
Now, let’s say the farmer has created wealth. He says, “You know if I can employ somebody, I could do another 200 acres. I could make even more.” And so as he creates wealth. The only way you can create a job. He then hires someone to create more wealth, was then able to create more. That’s the only way jobs are created. It’s the only way wealth is created.
So, I said there were two ways to do it. So the fellow shows up and has gone down the road. He stops at the street light, a fellow comes up, puts a gun in a car window says to this women, “I want 50 % of everything in your purse.” Question number one, has the criminal created any wealth? No. Has he redistributed wealth. Yes. From her to him. But hasn’t increased wealth because the degree to which the criminal benefits is the degree to which she’s diminished.
Socialism: The Degree To Which One Is Increased Is The Same Degree To Which Another Is Decreased
So if you have a cash for clunkers program and you take money and you buy all these cars. You stand out in front of the GM and in Detroit say, “Look at all the jobs we created.” No you didn’t. Because that money was going to go for a refrigerator, it was going to go for a bedroom suite, was going for a college education. You have just simply stolen and redistributed. You didn’t create anything.
So therefore, it can a criminal create a job? No. Can a criminal create wealth? No, so let’s not call them criminals. Let’s call him a city councilman. So you’re driving. You’re going through Detroit. You have the audacity to stop in Detroit. A city councilman comes up, “You’re stupid enough to do business here. I’m going to take half everything you’ve got.” Has he created any wealth? No. Has he redistributed wealth? Yes he has.
Wealth Can Only Be Created Not Distributed
What did Democrats talk about? Redistributing wealth. Wealth is not distributed. Interstate 70, Columbus Ohio, you drive west. You go through Iowa and you see corn, hour, after hour of corn. In Nebraska, you see wheat, hour, after hour. You go to Colorado, you see cattle, cattle, cattle. You get to Denver and you’re a liberal. So you stand up and say, “It’s really terrible the way corn is distributed in this country. And it’s so offensive the way wheat is distributed in this country. And you elect me and I’m going to redis-”
No no no. Wheat is not distributed wheat is grown and created. Corn is created. It’s not distributed. Wealth is created. It’s not distributed. It has to be created and you can’t distribute something if it’s not first created.
Politics and Economics In Summary
So when you punish the producer and reward the non producer you reward negative. Government punishes good behavior and rewards bad behavior. Free enterprise punishes bad behavior. You get cold cup of coffee and a waitress with three day growth of beard you’re going to be out of business in a week. Free enterprise rewards good behavior punishes bad. Government punishes good behavior and rewards bad behavior. The more government you have the more poverty you have.
Bring A Speaker To Your Area
Hey, This is Tim Barton with WallBuilders. And as you’ve had the opportunity to listen to WallBuilders Live, you’ve probably heard a wealth of information about our nation, about our spiritual heritage, about the religious liberties, and about all the things that makes America exceptional. And you might thinking, “As incredible as this information is, I wish there was a way that I could get one of the WallBuilders guys to come to my area and share with my group.”
Whether it be a church, whether it be a Christian school, or public school, or some political event, or activity, if you’re interested in having a WallBuilders speaker come to your area, you can get on our website at www.WallBuilders.com and there’s a tab for scheduling. If you’ll click on that tab, you’ll notice there’s a list of information from speakers bio’s, to events that are already going on. And there’s a section where you can request an event to bring this information about who we are, where we came from, our religious liberties, and freedoms. Go to the WallBuilders website and bring a speaker to your area.
America’s History With David.
This is David Barton with another moment from America’s history. Often today, it seems that the federal government has become too intrusive in the local matters and federal micromanagement has now, unfortunately, become the norm in education, law enforcement, religious expressions, and even on what is and is not moral.
Strikingly, the Founding Fathers had intended that the federal government never intrude into any of these issues as Thomas Jefferson explained, “ Taking from the states the moral rule of their citizens and subordinating it to the federal government would break up the foundations of the Union. I believe the states can best govern our home concerns and the federal government our foreign ones.”
According to Thomas Jefferson, the original plan was for the federal government to direct foreign affairs. But for the states and local communities to direct the domestic and the moral ones.
For more information on God’s hand in American history contact WallBuilders at 1 800 8 REBUILD.
All Wealth Is Created By 3 People
All wealth, just for kicks, is created by 3 people. All wealth is created by 3 people. You have a saver, an investor, an entrepreneur, and a producer. And so you have an entrepreneur that says, “I want to start a shopping center. It’ll create 500 jobs. So he goes to a banker or an investor of some sort and he gets the money in order to create the 500 jobs. And that’s the way all wealth is created.
And a person in free enterprise is rewarded, not because of who he is but what he does for others. In free enterprise a person is rewarded by what he does for others and the greater the contribution, the greater the wealth. Five thousand cups of coffee, 4 million cups of coffee…so wealthy people in a free enterprise system are rewarded because of what they do for others.
There are people who benefit who live off of them. They are rewarded not because of what they’ve done but because of who they are. And so they have power. So this fellow says, “I’m going to own a shopping center.” This guy with his rusted out 20 year old Volkswagen says, “No, no, no. I want a duck pond in the middle of the green space, in the middle your parking.” But there’s no place to park. He doesn’t care. He has power, not because of what he has done but because of who he is. These people live off of these other people.
We Went to the Precipice. Our God Pulled Us Back
In America, they often go to the arts. “If this country cared about the arts the way I do, I should be able to… Let those peons go to work down there, but I should be cared for-” So now, the other place that they go is non-Biblical, religion. And other places to go is education. One big word, not because of what they do in other places – welfare or just flat out, “I’m entitled to it, here I am.”
Now you would think that these people would honor these folks. But everybody who took biology knows the parasites always end up killing the host. And you show me where they are, you are engaged in a noble effort. Our nation is as critical a moment as it was in Christmas of 1776. And which if they didn’t win the battle of Trenton at Delaware, it was as George Washington wrote to his cousin at Mount Vernon, “I fear this thing is about up.”
We went to the precipice and our God pulled us back. We have a chance. We have we have a chance to do it. You’re engaged in a noble effort. Our opponent, spiritual and physical, will be aware of that. The battle is the Lord’s. Keep your eye on the goal. Blessed is the nation whose God is the Lord. The people that voted for you are counting on you to do it. He will give you strength. God bless.
Pro Family Organization.
That was Congressman Bob McEwen speaking at the Pro-family Legislators Conference. It was actually the conclusion of a three part series that you can get right now on our website at WallBuildersLive.com. So if you joined us in the middle of the program today or maybe for the first time listening today and missed yesterday and the day before, all three of those programs available at our website. So you can hear Congressman McEwen’s entire presentation.
Powerful information. You don’t want to miss it. It’ll educate you, equip you, and inspire you to do more as a citizen to help preserve the freedom that we have. So it’s not just for the legislators that he was speaking to. It’s for everyone of us as citizens.
I also when encourage you to get more of Bob McEwen‘s information and get his “Politics Easy As Pie.” And you can get that one right there WallBuilders.com. Have him come in and speak to your group. I am telling ya, incredibly powerful. You will learn. People will be inspired and it will make a difference.
Tell Your State Reps And State Senators Know About ProFamily.com
Really appreciate him sharing at the legislators conference this year. And before I let you go today actually, the legislators conference is a great opportunity for you to get better government in your particular state. So make sure your state rep and your state senator know about the legislators conference go to ProFamily.com. That’s our Pro-family Legislators Organization.
And then take that link and send it to your state rep and state senator and encourage them to attend. They will be encouraged throughout the weekend. They’ll have an opportunity to hear from great speakers like Congressman McEwen and and Dennis Prager and Frank Turek and so many others. But they’ll also be encouraged just by the iron sharpening, the countenance sharpened that they will get with these other legislators.
So check out that website today as well: ProFamily.com. Thank you so much for listening today. You’ve been listening WallBuilders Live.