A Lesson in Economics for Socialists

One of the most revolutionary concepts to ever impact the prosperity of societies in modern times has been capitalism. This fiscal concept made America a world power in record time, created the most widely realized condition of prosperity for its citizens, and allowed this nation to out produce all others in manufacturing until outsourcing became a corporate strategy to reduce retail product cost through lowering labor overhead. Unfortunately, thanks to a federal government unconcerned with international trade agreements that were fair to the US the American work force was impacted as jobs went overseas. President Trump has renegotiated trade deals with our international partners to address this inequity.

When government becomes a parasite

In 2012 for the first time in American history the cost of running the federal government under the Obama administration exceeded the gross product of the Private Sector Industrial output. America being the largest industrial nation in the world with an annual gross income of 14.2 trillion dollars was eclipsed by the cost to run the US government at 15 trillion dollars while record deficit spending under President Obama exceeded all previous administrations up to the Clinton White House. It took over 200 years for one administration to finally pile up so much debt that it surpassed the greatest industrial output the world has ever seen by the same private sector economy. Let that sink in. The nearest competitor to America’s massive markets is China at a little over 6 trillion annually.

Suffocating a society

As shocking as it seems and with the obvious need to curtail over spending by big government let’s compare the US to the socialist economies of the world to illustrate some facts about fiscal reality. China’s government costs an estimated 20 to 50 times the size of the economic output of its private sector. Why? How is this possible? If it costs that much more to run the government than the available economy can generate than a deficit develops and fiat currency must be printed not unguaranteed by assets such as gold or silver. A Communist regime owns everything. Its people own nothing. Therefore private ownership and business is of a very small percentage and the society depends upon the state to be its economic generator. As a result, efficiency is low, output is stunted. When an industry doesn’t have to be competitive or efficient there is no incentive or pressure to excel, improve, or innovate. China, rapidly failing to provide infrastructure and fiscal feasibility to meet the needs of the people was forced to request the advice of Milton Friedman, the most recognized economist of the 20th Century and Nobel Prize winner. A supply side economics expert, Friedman emphasized production to the Chinese leadership in terms of modernization such as tractors and earth movers rather than simply an army of men with picks and shovels.

The awakening

The Chinese began a slow but steady economic awakening to the increased productivity of capitalism on a smaller scale than the US as the Communist hardliners were too insecure about a rapid revamping of their state owned, state run economy, even though their currency was losing buying power and the long completion time of public works was becoming fiscally prohibitive. Today China is the only nation whose GDP comes close to the United States, yet they are still less than half of America’s output and thanks to the positive growth policy of President Trump that gap is widening as the nation’s output outpaces the rest of the world.

The formula for success

Russia, a product of the old world Marxist formula of state owned and state run economics has a problem. Massive corruption, lack of quality control, and a nation that cannot depend upon its aggressive military tactics to push policy in favor of the “Mother Land” is falling behind. With an economy that is not even the size of the state of Texas, this fact alone should illustrate the great accomplishments of capitalism and how the incentive of profit allows individuals driven by more knowledge, more ambition, and with the creativity to innovate push America’s economy along with increased consumer oriented retail activity that is just one of the advantageous examples of allowing the private sector to do what it does best without the restrictions of government interference!

Fiscal liberation

In complete alignment with our founding fathers, Milton Friedman, President Reagan’s influential economist, America recovered from a Democrat caused recession under President Jimmy Carter whose dismal fiscal performance mirrored that of President Obama, who wanted the federal government to be a strong centralized force that dictated economic policy. As we know now, the central government can never match the cost effective operation of the private sector. The very nature of government is monopoly, inefficiency, and no competition to spur innovation. Once our fore fathers were free of the European central bank families the colonials established a solid economy, profitable export business, and strong currency backed by gold and silver rather than credit. Milton Friedman’s solid equation for supply side economics was much the same-smaller government meant a healthier private sector and successful economic driver.

Government failure!

Unlike government which largely operates to perpetuate itself and to even social engineer by creating a vast welfare state and programs designed to stamp out certain deficiencies, history tells us something completely different. Government programs penalize the taxpayer, are fraught with corruption, are never cost effective, and never include any incentive to balance budgets or be accountable for costs. Examples given: The war on drugs, the war on poverty, the war on cancer. With an estimated 26 trillion spent on welfare alone all that particular problem did with poor oversight thanks to being used as a vote generating program only dependency was promoted. Had it been administered correctly from the beginning disallowing benefits to those who tested positive for illegal drug use, family planning, and job training the welfare state could have been less costly and could have promoted more self-sufficiency rather than generations of dependents unmotivated to work.

How the failure happens

Historically, government programs allocated budgets are quickly eaten up by the cost of the bureaucracy and the infrastructure developed to support their operations rather than the money going to the intended recipients. Like ineffective and corrupt non-profit scams. Then as more and more taxes are consumed to fund the unaccountable government entity the private sector is burdened by the weight of big government with employees whose benefits far outweigh those available to the private sector who must compete in a free market! When government refuses to compete it breeds waste, the entitlement of its fraternity work force, and penalizes the tax payer who does not even ask for or request services from the federal big government tax confiscating machine!

Tragic example

Marxist, class warfare baiting, welfare state mongering socialist systems will crash healthy societies and economies. History points incessantly to the overburden of the state that once in power drives away all incentive to the individual, crushes healthy competition, and through nationalizing destroys fiscal feasibility. Venezuela has the largest oil reserves in the world and once had a thriving economy from exporting its crude oil reserves and its agricultural output. Once socialists began their propagandizing 2 generations ago to the present it was merely a matter of time until the cost to run the state far outweighed the ability of the government to provide for the populace. Now Venezuela is entrenched in food riots, low product distribution, and chaos as state death squads threaten the unrest with murder to uphold the leadership. Russian intervention now converts Venezuela into a Communist regime and a puppet of our enemies. Gone is the former prosperity of a once stable Democracy.

Side by side proof

North Korea is another prime example of what socialism and its implementation has done to a nation of peasants under the feet of a tyrannical state. If one evaluates the contrast between South Korea, a capitalistic economy with a Democratic government and North Korea, a throwback to the Communist Regime concept post WWII, the difference is breath taking. South Korea is a world leader in electronics export, possesses a thriving economy, and provides an excellent standard of living for its population. While North Korea has a largely starving population, the cost of running its military literally steals food from the mouths of its peasant masses, and an estimated quarter of a million North Koreans suffer in concentration camps.

Method of deception

North Korea is typical of Communist regimes who use indoctrination to mesmerize by the use of occult of personality of their leaders.  A ruthless family that have been descendants of the same clan for decades. Poor education, government sanctioned oppression, and the influx of brainwashing controls a population who look enviously to the west afraid to admit it. Just as in the Democrat Party in America constant manipulation of the truth through a state owned media ensures that they can generate votes through lies and distortions of the truth while allowing their own leaders to flaunt the law and the US Constitution. Educational policies such as “Common Core” are politically influenced and designed to promote under achievement. Today, a Democrat Party influenced federal government wants the dumbed down student incapable of recalling history and the repeated mistakes that the left has committed in order to keep this form of corrupt government elected. Critical thinking is literally discouraged.

Intentional suppression

During his administration President Obama did everything in his power to restrict a free economy, refusing to sign permits on the Keystone Pipeline, cutting off Texas offshore drilling permits using the EPA to administrate without a vote, even when Texas was accounting for 48% of the employment under the failing economics of a Democrat economy that limped along at 1.8% GDP. Yet, just like a classic Marxist state Obama authorized 10 trillion in deficit spending while expanding the size of the federal government. As a result the worst economic recovery since 1949 ensued while labor participation rates dropped to 1978 levels, and unemployment for Blacks and Latinos sagged at double digit quantities. An identical formula to that of the Bolsheviks. Stifle a healthy economy to promote dependency on a big centralized government and use the lack of self-sufficiency to influence the voting to remain in power!

Irrefutable wisdom

What is the lesson here? That capitalism with smaller government has been the winning formula to economic growth and prosperity every time. That the public should never be victimized by economic policy simply to keep a particular party in power. That the party who effectively promotes a healthy economy independent of government political interference keeps America on the right footing and well ahead of its global competition. President Obama and his minions wanted to impose globalism upon the US by trying to hold back US economic prestige in order to allow third world nations a chance to emerge. America does not have an obligation to others if it creates debt and job loss. That’s not the responsibility of America to victimize its own citizens in order to allow the suffering of the national work force and to threaten the sovereignty of the US though the politically motivated fallacy of “Open Borders”. In reality, when America prospers the global community also benefits. This is the essence behind President Trump’s motto, “America First.”


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Comment by cheeki kea on March 10, 2019 at 4:07am

Good comments all. Poverty and disharmony's the name, destruction's the game. However their biggest fear is getting called out for it in public. They get their UN kudos by keeping it all together, and a Fail in this area is not acceptable to them. We need to remind them We Are Alive, We Live and Breathe, and We are Mad as Hell. 

Comment by Doc Vega on March 8, 2019 at 12:14pm

Marklar Human nature is si self destructive there is no way to overcome it and the big lie of socialism is that it tried to level the playing field to create a utopia which is merely shared poverty fro all while the autocracy sits on top of the dog heap paying indoor games! Mankind will never create a utopia and capitalism is the only game in town with less of a loaded deck.

Comment by Marklar's Ghost on March 7, 2019 at 6:02pm

All economic models devolve into a steaming pile of failure eventually because all economic models are prone to the manipulation of the psychopaths that grab hold of them. Get rid of psychopathy in the human population and all will be better than it ever was before though all of mankinds stupidity will still exist on some level.

Comment by Doc Vega on March 7, 2019 at 12:53pm

Diana, you are so right. You and I are always on the same page.

Comment by Diana on March 7, 2019 at 11:00am

The problem is that socialism is about envy and selfishness and facts don't matter.  "Free" shit (Which must be paid for by those who made the sacrifice to make themselves worth more than minimum wage - "because it's all about fairness") = Government dependency and Government Control (Loss of freedom).  Which works fine for those too lazy to put forth the effort, because they're probably too lazy to think for themselves anyway.  So they're good with the government making the decisions as long as the Nanny State promises "entitlements" like free healthcare.

They're for the ideas like $15 minimum wage, because they don't want to think about the reality of where it leads:  Loss of work hours and cost of product increase - Budget for labor will not increase dramatically to cover minimum wage hike, so fewer hours for workers - Higher cost of production passed on to cost of final product.  So workers (who are able to keep their job) will bring home about the same amount (or less) and the value of the dollar will go down (That dollar will not buy as much.).

A report from the University of Washington (UW), found that when wages increased to $13 in 2016, some companies may have responded by cutting low-wage workers' hours. The study, which was funded in part by the city of Seattle, found that workers clocked 9% fewer hours on average, and earned $125 less each month after the most recent increase. 

NYC Restaurants Slash Staff over $15 Minimum Wage

Jan 20, 2019 · New York City restaurants, feeling the pinch of trying to make ends meet, are slashing their staff after a state law that took effect at the end of 2018 is mandating restaurants with 11 or more workers to pay a $15 an hour minimum wage.

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