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Posts Tagged ‘GDP’


Socialism may be coming to a country near you soon.  Yes, if Senator Obama and the Senate and House Democrats win, it will be the end of the trail for capitalism.  The secular progressive movement, led by George Soros and his minions, has been funneling money into the Democratic Party and to its candidates for some time now, with the intent on building a slate of Senators and Representatives who are decidedly socialists by nature.  The crowning achievement for the movement was the support provided a Senator chosen early on for his socialist beliefs to run for President, Barack Obama.  Read: Soros poised for payback on his political investment an editorial from the The Examiner.

George Soros will now have a superhighway to Change – Socialist Change.  We will see wealth redistribution on a grand scale – Obama said it himself recently when he told a hard working self employed plumber that he will experience wealth distribution – his wealth will go to some one else.    We will see the single largest growth in government in the history of this nation.  We will expand the culture that people are not accountable to themselves or to others and that regardless of their actions, government will attempt to take care of them, albeit in a grossly inefficient manner.  Who will be the arbiter of just how much wealth will be redistributed at any time?

There are basically three economic systems found in the world.  Communism, Socialism, and Capitalism are the three, but no one is practiced in its purest sense.  We might ask why an economic system is important.

“…a country’s economic system determines the allocation of the nation’s resources of labor, land, machinery, materials, etc. between their alternative possible uses.” “… a country’s economic system determines the distribution between the individuals in the nation of that which is produced using the nation’s resources.”  “We need to know how an economic system attempts to solve the problems of allocation and distribution before we can see why there is unemployment, inflation, poverty, and so on.” These quotes were taken from an old text book  “Introduction to Economics” by John Craven.

Socialism is chosen by some as an artificial means of controlling unemployment and poverty.  The problem with this noble effort is that time after time, in national experiment after experiment, it actually creates more unemployment and more poverty.  The key element of socialism, redistribution of wealth, actually reduces the incentive for those who create jobs by growing businesses and making wealth for themselves.  When the incentive is removed, as there can be no success in business, the effort dwindles and the economy shrinks.  The shrinking economy fosters more government programs, and greater protectionism.  More government programs means taking more from those who “have it” and giving it to others, until the loss in incentive becomes a vicious cycle.  As protectionism grows, the cost of imported goods rises, and the ability to export diminishes, further restricting jobs, increasing unemployment, and increasing the price of goods and services.  The vicious cycle continues.  By now you get my point.

Socialism is a misguided effort by those who do not learn very well from history.  Read “Disillusioned with Socialism: South Asia experiments with free enterprise.” Europe has toyed with socialism.  Just look at their GDP and unemployment rates – they are far worse than the capitalistic United States.  Europeans have learned that once you start the wealth re-distribution project for those who are either not motivated to contribute to society or have been unsuccessful, you have spread the proverbial toothpaste into the culture and that toothpaste cannot be placed back into the tube easily.  Europeans are paying the socialism price now – yet we do not learn from the failed experiment.  Be careful of what you seek.

What we do have here is a lawyer, an avowed socialist masquerading as a populist, supported by the George Soros machine.  Barack Obama is about to achieve an ignoble change in our economic system by taking income from hardworking productive people – medium and small business owners – job creators,  and redistributing it to those who either have been less fortunate or are simply not as productive.  If he is elected, we shall see just how effective this lawyer’s theory is: reduce the incentive of hard workers to work hard; forcibly share what they have worked for; and grow government to create jobs.  The theory fails to take into account that without the medium and small business job creation machine; jobs will be lost, not created.

Remember, the man, Barack Obama, has never run anything, managed anything, or built anything, in his life.  He is a lawyer turned socio-economic theorist.  Remember that his espoused social plan has not worked in the past and will not work now.

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