Nov 8, 2011

Something for Nothing

In conversations recently, Socialism seemed to be the dirty throw-around word and I'm glad about that.

I have always believed that Socialism and Capitalism are separate governing models, but can co-exist within the same model. A dab of socialism is visible in all of the Western European countries and throughout the world, including here.

Wikipedia defines socialism as "a social and economic system in which the economic means of production are owned and controlled collectively by the people. Since the blue collar workers "do all the work", socialists suggest that they should get an equal share of the wealth. A true socialist society would have no private property rights and goods produced in it would be distributed among the citizens--from each according to his ability, to each according to his need."

Obviously we have reigned in the full impact of socialism. Ours is a long-standing *successfully functioning* capitalistic model, so it's hard to measure how the effect of some socialistic elements affect it long term. But there's no doubt the allure is in its organizational power to effect change for a large number of people.

FDR's New Deal and Social Security counter-measures to the Great Depression were socialistic: government supported programs to put people back to work, and establish social security and welfare for a better quality of life. Had it actually been the short term solutions they were intended to be, I am sure Roosevelt would be even more highly regarded than he is. 

Socialism is the basis of any government-run anything for the greater good that is paid for by the people. And with us taxed and taxed and taxed some more,  we know how the government is doling out all these freebies.  It is at work behind unemployment and SSID payments, established retirement ages and guaranteed retirement income for government workers, public schools, Medicare and centralized banking. Overwhelmingly those things have hugely improved America, although not all of us benefit directly.  Come to expect them, even.

I was remembering a comment made from my hero, Thomas Jefferson, who vehemently opposed centralized banking. He warned about its inevitable manipulation and corruption and the potential of it to bring this country down.

We definitely live in a remarkable time. We have Greece as an example of what becomes of a country without sustainable revenue to support its popular and socialistic programs of guaranteed retirement age, healthcare and income. They implemented a lifestyle without enough sustainable income to pay the debt.  Sound familiar?

I wonder if the decline of personal drive and achievement in America is due to the socialism we embrace, as charged, or perhaps just due to poor Leadership. Our country has botched imports/exports to the extent our companies must leave the country to remain competitive on our own shores.  Our national import policy is a disgrace. We do not demand the competing imports the same tariffs as they charge us when our goods are exported there, which essentially gives them the home court advantage. It is indefensible that our leaders do not promote our own goods and services in a free society so reliant that income for our economic health.

Powerful socialistic unions now tell the government how to manage its own workers. We are criticized for a workforce that is less educated and less motivated than ever before. Are we really a less educated workforce or just unwilling to reconnect with our capitalistic roots of hard work and self sacrifice?

One thing is certain. By and large, we have lost faith that the government is willing to protect us from the monsters they have created in the banking / real estate / and healthcare industries. A pit bull without teeth isn't much of a watchdog.

The role of government expands and contracts with each Administration. But we put into office people who reflect the things we want, socialistic dole-outs included. How does it work when we all agree that something must be done, but nobody wants to give anything up?

Capitalism is hard. There are winners and losers. Not everybody gets a trophy at the end of the season. But in a free market there are still ground-rules.

Like we are proud that capitalism is the voluntary exchange of goods and services for the mutual benefit of both parties.  And that makes it vulnerable to fraud because profit is its measure of winning and losing.  It is for the good of our governing model to call out those who rig the outcome. (I pulled this paragraph off the Occupy Wall Street website, by the way.)

What we have is a situation where our financial institutions and Wall Street power brokers have rigged the results with real estate holdings, stock market investments, and long term savings. So I ask you ... if they steal the win, what does that make us?

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