John Stossel on How Government Creates Poverty

Fifty
years ago, President Lyndon Johnson declared “War on Poverty.” And
at first it seemed to work. The poverty rate dropped from 17
percent to 12 percent in the programs’ first decade. Unfortunately,
few people noticed that during the
half-decade before the “War,” the rate dropped
from 22 percent to 17 percent. Without big government, Americans
were already lifting themselves out of poverty. 

Now, despite trillions of dollars and 92 different government
welfare programs, poverty stopped declining. Government’s answer?
Spend more! But well-intended welfare programs and minimum wage
hikes often end up exacerbating the problem, John Stossel argues.
The free market will sort this out, if politicians would just let
it. Left free, the market will provide the greatest benefit to
workers, employers, and consumers, while allowing charity as
well. 

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