Opinion

The bigger the government, the wider the wealth gap

The President unilaterally gutted welfare reform. And education law. And drug law. He doesn’t like some immigration laws, so he chooses not to enforce them. And sues those that do. He imposes the DREAM Act — even though it has never actually passed Congress.

Presto-ing law out of thin air is a favorite trick of this president. Cap and Trade never passed — but he’s tried to enact it anyway. So too Card Check. He engaged us in military action in Libya without Congressional authorization, and it looks like Syria is next.

The president’s influence has been particularly pernicious in the technology sector.

He imposed “Spread the Wealth Around” cell phone network-sharing mandates. He’s recently mentioned a new unilateral $5-per-cell-phone-per-year tax in hopes of increasing Internet speed in government schools. This despite the fact we already have for years been paying a now 15.5 percent cell phone tax to connect schools and libraries, and 98 percent of Americans already have broadband-speed access.

Still open is an Obama Federal Communications Commission (FCC) order to reclassify the Internet. Which would unilaterally move the now lightly-regulated Web into the landline phone uber-regulatory superstructure. A huge power grab — including the administration granting itself the power to tax the Net.

Then there’s Network Neutrality, an all-encompassing Internet imposition the Obama Administration illegally granted itself on December 21, 2010. This despite a previous FCC attempt to inflict it that was unanimously rejected by the D.C. Circuit Court.

(This same court on September 9 hears oral arguments to undo this unlawful iteration. Here’s hoping….)

Let’s put all these micro actions into macro perspective. This is the government again and again usurping huge new swaths of authority. Without any pretext or predictability. The private sector never knows when the next anvils are going to fall — so they stop, frozen in regulatory, anticipatory amber.

The people with money sit on it. They don’t start new businesses, or expand existing ones. Many start downsizing. Their amassed, inactive fortunes accrue ever so slightly. The rich get ever so slightly richer.

(If the Federal Reserve is pumping $85 billion a month in fake money into the stock market — as President Obama’s is — the rich do better still.)

The people without money pay a far greater price. To advance their lots in life, they need the people with money to start and expand businesses. The government-induced idleness hurts the rich some, but the un-rich much, much more.

The have-nots’ economic status rapidly deteriorates. The greater the depth and length of the government’s hyperactivity, the more of these regulatory victims fall below the middle class fault line into poverty. And the less chance the impoverished have of advancing their way up and out. The poor get poorer.

Government is a wedge driven between the wealthy and everyone else. The bigger government gets, the wider gets the gap between the haves and the have-nots. The haves stay about the same, or advance a little. Meanwhile more and more of the have-nots have less and less. Just the opposite of what the social justice do-gooders intended. You want proof? Here:

Census: Rich-Poor Gap Widens

Rich-Poor Gap Widens to Most Since 1967 as Income Falls

Obama Calls Income Gap ‘Wrong’ – After Widening It“Research by University of California economist Emmanuel Saez shows that since the Obama recovery started in June 2009, the average income of the top 1% grew 11.2% in real terms through 2011. The bottom 99%, in contrast, saw their incomes shrink by 0.4%.”

The road to middle class evisceration and greater poverty is paved with good intentions.