No. of Recommendations: 1
I knew I was taking a chance at being misunderstood if I entered this discussion.
Yes, I understood your point. I think most people are familiar with it, and it's a good point.
AI
The concept of a subsidy freeing up money to be spent elsewhere is best described by the
income effect and the broader concept of resource reallocation.
My point is that it doesn't bother me if it does that. Some people focus on that and resent the hell out of it.
As for the bum I knew, I think that's a more common tale than we think. He wasn't an addict, just every once in a while did drugs, he said so and didn't like people doing drugs around kids, but he abandoned his kid. Go figure. His wife was trying to get him to come to Tennessee. I think he'd escape labor camp. I can understand mentally ill bums, but he wasn't mentally ill that I could tell. It's rough down there, and many of them know they are one paycheck from living on the streets. They need safety net, capitalism is not fun at the bottom rung.
