H1N1, the swine flu, spreads fast but is short lived. It is rarely fatal. There is now a vaccine to prevent it. OPM Syndrome is far more infectious and once caught is almost impossible to cure. What makes it more dangerous is that it spreads quickly and stealthily. Most people are unaware that they are infected.
OPM Syndrome is not fatal – at least not in the short run. It is similar to Syphilis. While not a sex related disease, once caught it generates consumptive cravings. Like Syphilis, the immediate effects are relatively mild. In the long run - it destroys. The madness it generates permeates ones personality and alters the infected’s sense of morality. People with OPM Syndrome cause other people to suffer ruin. Ultimately the disease destroys the well-being of those infected.
Those most susceptible to OPM Syndrome are powerful, caring and influential people. This includes politicians, reporters, and government bureaucrats. These people spread the disease exponentially faster than ordinary citizens.
So what is OPM Syndrome? How is it caught? How does it spread? What are its long term effects? Is there a cure?
OPM stands for “Other People’s Money.” The Syndrome is the urge to spend other people’s money. People with power over other people’s money view it as an entitlement. Since its other people’s money, they think, spending it will not cost them. They justify the spending of OPM on the basis that this money is excess. That is, that the other people don’t need or deserve the money, or that those with OPM can put the money to better use. The bottom line is that it is far easier to spend OPM then one’s own money. The syndrome creates the cancerous delusion that there is an unlimited supply of OPM.
Historically, Americans had a great resistance to OPM Syndrome. Principles were built into our Constitution and form of government. Individual rights were protected. We were not a pure democracy where the mob rules; where the majority could simply vote to take other’s property. We had the bill of rights. We had concepts such as self reliance, individual responsibility and personal pride. We respected property rights. We were more interested in earning our own fortune than taking away the fortune of others.
Initially taxes were uniform. Wealthy people paid the same rate of taxes. They paid more taxes because they made or spent more money. When income tax was first imposed it represented a small percentage of a person’s income. Then it became progressive. For years the American people accepted the progressive nature of the income tax believing it was necessary to fund essential programs. American capitalism still flourished because people still held on to a fundamental belief against redistribution of wealth. But the tax code was changed to eliminate a large segment of the population from any obligation to pay income taxes. Then the coup de grace occurred when the income tax itself was used to redistribute OPM via tax credits.
During the last century, people with early onset of the disease felt the urge to spread the infection. They reeducated people, convincing them to give up self reliance and personal pride and accept welfare.
Initially, welfare was presented as a short term remedy to put people with some misfortune back on their feet. For many people welfare morphed into a way of life and an entitlement. Today, entire families go from generation to generation with the expectation that they will “earn” their living via government assistance. Welfare entitlements grew from the poor house to food stamps, to financial assistance to free medical care to subsidized housing to tax credits for people who don’t pay taxes.
The entitlement to spend OPM expanded in the 1990s to home loans. Fanny Mae and Freddie Mac were created and loan standards were established to entitle people without sufficient means to buy homes with little or no down payment.
Those most severely infected with OPM Syndrome are politicians. They mistake their being in government with an unlimited entitlement to spend OPM. Their energy is spent on developing elaborate programs to both spend OPM and to create popular demand to expand OPM spending programs. Their remedy for any problem created by an OPM program is to spend more OPM.
Growing up, many of us had bad experiences with a neighborhood bully. The kid who believed he had the right to take other kid’s property. If he wanted something you had, he just took it. Our government has become the enforcer for multitudes of neighborhood bullies.
To make sure that OPM Syndrome will not dissipate in the foreseeable future, politicians developed programs to get children reliant on OPM programs. Our government now provides OPM to them for food, medical attention and day care. This starts before the kids reach school age. If a child is in foster care, the child is never expected to take on a part time job. The child is entitled to a generous allowance with OPM.
Still there were people who fought the disease. The sick leaders rationalized, “why should the destitute or lower income earners be the only people entitled to OPM.” Great thought was given on how to infect everyone. Politicians invented programs to spread the wealth and give everyone the opportunity to spend OPM. The result is an epidemic spread of the disease to those with the most resistance.
We have corporate welfare. Our government gives OPM to bail out banks, insurance companies, auto manufactures and other large business. It subsidizes many “non-profit” organizations. It uses OPM to buy influence with these companies and organizations to insure they will support future expenditure of OPM.
Government bailouts of big business with OPM offended the middle class and small businesses. Therefore new programs were engineered to spend OPM. The Government “gave” us cash for clunkers and tax credits for purchasing homes. We have government programs that use OPM to provide “free” full time employees to small businesses. When the government computed that social security payments would not go up because there had been no inflation, it was only natural to propose an OPM bonus to seniors.
Today, the majority of Americans have OPM Syndrome. The proof of this is not that most Americans are getting some sort of assistance from OPM. For many taking advantage of OPM programs is a way to retrieve some of their own money. The proof of the dominance of the disease can be seen in the results of local elections.
Elections where the majority of the public vote for government assistance program once they determine that it will be paid for with OPM. Typical of this are all the initiatives to fund programs with payments from those who earn more than the average voter. So if someone wants to mandate government assisted child care with OPM they may offer a proposition that it be entirely paid for by a one percent tax on those making more than a million dollars. Tomorrow, people will vote for a program taxing people who make more than one hundred thousand dollars. The trend will continue until there is no OPM.
Today, most Americans believe there is nothing immoral about spending OPM. They support legislation that funds projects they like as long as they are funded with OPM. They believe in redistributing wealth as long as the wealth being redistributed does not belong to them.
OPM Syndrome is on the verge of destroying the Golden Goose – the traditional American way of free enterprise.
Spending OPM almost always requires a government program and bureaucracy. The government middlemen manage to consume a large percentage of monies allocated for any project. The result is that the assistance given back to people amounts to far less than what the government takes. Throughout American history, no one can point to any government program that was more efficient than one run by private enterprise. In the past we recognized certain government tasks, such as national defense should not be run by private enterprise. We became used to cost overruns and outrageous expenses that include things like purchasing fifteen hundred dollar toilets. When government runs a program it does so inefficiently resulting in lower productivity and a decrease in the standard of living.
The government jobs program costs far more to “create” a job than the person earns who is employed by such programs. The money the government takes from people causes far more job loss than is offset by the jobs the government creates.
As the economy suffers, governments are discovering that they are running out of OPM. Even with increased tax rates, collections are down. Still, the government printing presses are operating at maximum speed. National debt and state and local government debt are at an all time high. Local governments are using long term bonds to finance daily expenses. While businesses are having problems borrowing money, the federal government seems to have an endless supply. To fund this obsession we have become dependent on foreign loans and investments.
Ultimately, American enterprises will be foreign enterprises. America’s land, factories, farms and commercial buildings will be owned by foreign governments and foreign enterprises. The U.S. will become an exploited country.
The government’s unrestrained spending of borrowed dollars is akin to someone running up credit card debts. The credit card debtor discovers that a high proportion of his income is spent on paying off interest. Our government will face the financial crunch of paying so much interest on debts that it will not have the money to fund mandated programs.
Since the government can borrow money at fixed rates based on today’s low interest, government may ultimately pursue massive inflation as a cure to reduce real debt. Inflation could reduce the real value of government debt. Inflation is bound to happen either because it is engineered by the government or it is a result of spending too much. In an effort to avoid what is perceived as a middle class tax hike, government can accomplish the same effect by massive inflation reducing spendable income and wiping out savings.
Unchecked, OPM Syndrome will cause the collapse of the American economy. It will turn the U.S. into a third rate and third world country. Those wishing to cure this disease may face an insurmountable task. It’s almost impossible to put the devil of entitlement back in the box. If the majority of our citizenry no longer have moral or legal restraints from taking OPM, then they will continue to take OPM until there is nothing left or what is left is hidden in a corrupt bureaucracy and a black market.
Theoretically, the U.S. Supreme Court could create some remedy. They could make rulings that restrict taking OPM. But that would require a major change in direction. It’s unlikely that the court will save the nation.
So is there a cure to OPM Syndrome? Is there a way to stop the ultimate collapse of the American economy? Frankly, if there is one, it beats me.
L. Rob Werner