How To Avoid 'affluenza,' Or Worse, 'entitlemensia' - Insurance News | InsuranceNewsNet

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January 7, 2014 Newswires
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How To Avoid ‘affluenza,’ Or Worse, ‘entitlemensia’

Staff Report
By Staff Report
Proquest LLC

The "affluenza" defense that resulted in a Texas teen receiving only probation for driving drunk and killing four pedestrians has caused justly deserved outrage throughout the country.

The judge gave 16-year-old Ethan Couch 10 years of probation after being convinced by counsel that he was afflicted by a professionally unrecognized mental illness that causes children of wealthy parents to be unable to exhibit socially acceptable behavior. Before they grow up, these children do things like fail classes, skip school and abuse drugs or alcohol. Some would simply call these children spoiled brats. Ethan's, though, was an extreme case of "affluenza," according to his defense counsel.

Some already have begun to suggest that this very regrettable and inexcusable court decision is the result of growing income inequality in the United States. Almost all legal scholars disagree with the decision itself. Regardless, it does afford even greater fodder to those who seek to initiate significant income redistribution policies at the state and federal levels.

It is true that income distribution in the United States today is skewed more toward high-income individuals than at any time since 1928. It is disconcerting, not only because of American views of fairness, but because more evenly distributed income creates greater consumption that also aids economic growth - a tide that, pardon the phrase, "raises all boats."

The inevitable question is not if some income-redistribution policies will be initiated, but how and to what extent it will be done.

Perceived and real income distribution differences often give birth to populist-inspired polemics and policies. Occasionally, more thoughtful and clearer heads have prevailed.

Historically, though, increases in personal and corporate income taxes, and inheritance taxes - while not appreciated by the wealthy - have been phased in and implemented in a somewhat thoughtful manner. In these cases, the policies have not created disincentives to deter the wealthy from creating additional wealth for themselves, their employees and for their communities.

The Great Recession, along with a lopsided House of Representatives and an administration covertly dedicated to income redistribution, has the potential to create the inverse of "affluenza,'' namely "entitlemensia.'' This phenomenon is oftentimes created through the growth in entitlement programs.

The term "affluenza" was first coined by Jessie O'Neill, the granddaughter of the past president of General Motors, in her book, "The Golden Ghetto: The Psychology of Affluence."

The term "entitlemensia" describes the fervency of those who would redistribute income to the unproductive at the expense of the economically productive. Those afflicted with "entitlemensia" forget that before income can be redistributed, it must first be created.

"Entitlemensia" will become pervasive if policies are enacted that shun job creation at the expense of supporting greater entitlements. Some suggest that it already has. There are plenty of examples of entitlement attitudes among Americans, such as Social Security, Medicare disability insurance, subsidized housing, subsidies for corporate farms and many more. The surest way to enhance income inequality is to initiate poor redistribution policies that impede those with capital - and the knowhow to use it - to do so.

Despite most Americans adherence to the principles of fairness, there are those with too much who will occasionally exhibit "affluenza." They should be dealt with, not so much in the courts, but by the parents, schools, colleges, churches and other institutions where social norms should be taught and reinforced.

Dealing with the inevitable policies that will be introduced to address income redistribution is another matter. Let us hope that our elected officials heed the advice of thoughtful and practiced economic and other policy advisors. They then can create fair policies that prevent both "affluenza" and "entitlemensia" and assure faster economic growth to be shared by all.

(Michael A. MacDowell, a Harveys Lake resident, is the past president of Misericordia University in Dallas, Pa. He is the managing director of the Calvin K. Kazanjian Economics Foundation.)

Copyright:  (c) 2014 ProQuest Information and Learning Company; All Rights Reserved.
Wordcount:  641

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