Thread: United States Abandoning Capitalism for Socialism

United States Abandoning Capitalism for Socialism
Economics / Government Intervention
Jul 30, 2008 - 07:15 PM

By: John_Browne

Over the past few decades, the United States has steadily evolved from a nation of ‘producers' to one of ‘consumers'. The change has been celebrated by politicians and economists as proof of America's arrival at the top of the global economic food chain. In reality, the development has depleted the nation of its hard-earned wealth, and has led us to the brink of ruin.

But rather than encouraging a return of America's productive energy, our government is responding to the growing economic crisis by simply trying to boost consumerism at all costs. Their strategy involves socializing losses among all citizens so that the depletion can't be easily discerned.

Now that the nation has chosen socialism as its economic salvation, it is worthwhile to examine some historic precedents. They are not encouraging. Europe, the former Soviet block and much of Africa and Asia, show vividly that socialism curbs individual freedom and enterprise, and leads inevitably toward economic decline.

America was blessed both with abundant natural resources and individual freedom, the backbone of enterprise. The combination rendered American productivity the envy of the world. Based on the strength of our industry and productivity, the American Treasury became the world's largest.

Why would America swap a history of successful capitalism for a murky future of socialism? The Answer is politics.

When the vast majority of the country's private sector working population is employed in the service sector, then votes tip in favor of consumerism. This is happening in America. Consumer spending now accounts for 72 percent of Gross Domestic Product (GDP), and is viewed as the engine of our continued prosperity.

Over the past decade, when recession threatened to curtail spending, the government pumped hundreds of billions of dollars into the economy. This led to two massive liquidity-driven booms; first in technology, then in housing. During these booms, greed knew few bounds and leverage became a way of life.

But when the merry-go-round stalled, politicians did not, and will not, allow the normally corrective mechanism of a recession to operate. It is trying to take the pain out of capitalism, while leaving only the pleasure. This is impossible.

In the current attempt at a market correction, the government has decided that our bloated financial companies are “too big to failâ€

The only thing I can say good about the former Soviets is that every high school and college student were given a week or two break to go out and pick the cabbages and other crops, i.e., no cheap illegal labor required.
Also, one truism I learned in HS sociology class. As the East moves further toward the West, the West is moving toward the East.

AMERICA IS IN DDEEEEPP TROUBLE

EVERYONE NEEDS TO LISTEN TO: http://www.alipac.us/ftopict-125703.html

IF YOU HAVE NOT ALREADY

It is important to note that these protections were not given to other industries, and were not even extended to the entire financial industry. Those receiving the public largesse are precisely the large institutions most responsible for the mess. It was the financial and corporate fat cats who made the private profits gleaned from massive, irresponsible lending and borrowing. Yet, when it comes to rescue, the ordinary citizen pays.

As always.