With the Obama administration making its final preparations to take over, there is a lot of discussion about socialism in the future of America. Socialism is a socio-economic system in which a governing body is meant to divide the resources and wealth of the land evenly amongst the people. It is essentially the redistribution of wealth, in one form or another. While it may sound good at first, the long term effects are disastrous to the freedom of the people and to the financial state of the government and/or people. We must fight to stop socialism or we risk creating a very bad situation for future generations.
So why is socialism so disastrous? Because it requires the intervention of government in our lives and the markets, whether it be in the form of taxes, regulations, or restrictions. Everyone is required to adhere to these regulations regardless of whether or not they will actually be benefiting from the redistribution of wealth. Those who don’t benefit are losing their money for no good reason. Advocates of socialism may say that this is fair, since someone who is less fortunate benefits from the redistribution. While this may be the case at first, socialism ends up hurting even the less fortunate in the long run because the burden on the successful grows so much that the help they could provide is also limited. Furthermore, should we really punish the successful in order to level the playing field? Should their hard work go to waste?
The notion of a redistribution will also make some people lazy because they will be receiving everything for free regardless of whether or not they work. This will put all of the monetary burden on the working class, which will slowly begin to diminish as people no longer see the point in working since their profits merely go to the state and they end up with the same amount of money regardless of whether or not they work. Once this idea spreads, the country starts to become poorer and the socialist system eventually goes bankrupt. This in turn makes the government bankrupt, as it backed the socialist system. At this time the government has no money and neither do the people, since they both paid it into the socialist system. There is the end of that government as revolution is sure to come soon. A very prevalent example of this trend is with the social security crisis. The program is on pace to go bankrupt soon, so the government will either have to take massive amounts of debt to pay out to its members or they will have to end the program and virtually steal the people’s promised money. This is why we need to end social security and move away from other such programs.
Not only do they not work, but money is lost in the transition from people and the private sector to the government (in the form of taxes) and back to the people (in the form of socialist programs and welfare) due to the costs of bureaucracy. Also, what happens if inflation takes place? The amount of money won’t change, but what the government can buy with it does. What happens when the government can’t pay for what it promised (yet it still taxed for it)?
As Americans we need to understand the evils of socialism. We need to understand that in the long run socialism creates more problems and questions than it solves. It may seem good at first glance, but in the end it will ruin us. Socialism will not only ruin our economic state, but it will limit our freedoms. Imagine that, massive limits on freedom in the land of freedom.
Socialism is the opposite of capitalism, the economic system which this country and any free country is built around. It hurts the people and the government and through the regulations it places, also business. We need to spread the word that socialism does not work and that we don’t need government to treat us like infants. We can provide for ourselves; we don’t need the government taking our money and placing restrictions on us in exchange for services that we can purchase ourselves.
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We are currently in a state of deflation, meaning that the prices of goods are going down and the value of money is going up. Don’t be fooled by the trend because it isn’t going to last. The only reason that we are currently in a period of deflation is because the news of recession across the globe has led to lower spending and hence, less demand. When demand goes down, so does price.
This trend is not bound to last though because as soon as confidence starts to build once more, demand will go back up and so will prices. Certain nations will be coming out of the recession faster than others depending on their economic climate. As soon as the demand from these nations goes up we will see spikes in prices and countries like us will see inflation. We are bound to be caught in a rough period as we almost certainly won’t be the first out of recession meaning that prices will start to go up while we are still in recession. With all of the money the government has been creating, the dollar will weaken even more than it usually would during inflation and we will face a more drastic inflationary period than most of the world. Big government and its bailouts and massive spending are the force behind that sad truth.
Inflation will of course make the situation even worse for us, but at this point it is inevitable. The best bet if you have extra cash is to invest it in commodities because those prices are only bound to rise with inflation. Almost any commodity is good to invest in including, but not limited to gold, silver, copper, wheat, and natural gas. As the value of the dollar goes down, these commodities will be worth more, meaning that when you sell them you will get more dollars back than what you paid.
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When will we fight up against this injustice? When will the time come when we realize that what we are doing is driving ourselves to our own end? Will it be when the dollar collapses and we are left in ruins?
It is time to take a stand against big government, socialism, and government intervention. It is time to take back our personal freedoms, to fight for what we once stood for, to reclaim our name because if we don’t, we are doomed.
The government continues to print money and ignore the Constitution as it tries to get us out of this mess it has created. The White House recently took money from the TARP (Troubled Assets Relief Program, also known as the $700 billion bailout) to help bail out the big three, something that Congress voted AGAINST. The Federal Reserve continues to regulate the currency, when in fact the Constitution says that CONGRESS should be doing that. It also has the power to set interest rates and hence, meddle with and distort the markets. To add the cherry on top, Ben Bernanke heads the Fed. Who elected Bernanke? No one. So how is he representing the American people? He is not.
What many fail to realize is that it was market intervention that created this mess and it is intervention that will create a bigger mess. Alan Greenspan’s policies created bubbles and it is partly his actions that have led us to where we are today. We are in a recession. We must accept it and let the market fix it. It may cause hardship temporarily, but we must suffer for what we have done to ourselves. If we continue to intervene and distort the markets even more all we will do is create a bigger problem that will not only hurt us later on, but it will also hurt our children and our grandchildren. Look at what we did after the stock market crash of 1929 and how that turned out. There was a massive spike in government intervention and all that did was create and prolong a decade long depression, which only ended because of a World War. Do we want it to happen again? Is it fair to us or our grandchildren?
We must act now if we want to save our nation from a long term disaster. It is time to tell our leaders what we, the people, want. Your voice does make a difference and it is not hard to be heard in this age of information. Send an email to your local leaders, to your governor, to your Congressman, to the president (and president-elect.) All it takes is a little bit of typing and a click. We must let ourselves be heard and stand up against the big government monster. It is time to let our leaders know that we don’t care about the politics. They need to forget the rivalries and the feuds. They need to unite for the nation, to do what is best for the people. We must tell them to stop thinking about reelection and start thinking about fixing our nation. This means listening to the people, not the corporations, not the lobbyists, not the unions, but simply the people. It is our country, it is our future, and it should be our government.
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Bernard Madoff’s infamous scheme is all over the news, but as details about how it was run continue to surface it is evident that there are certain similarities to the way our government is currently running themselves. Is America going to be the next Madoff?
It certainly is possible. What Madoff did was take the money of his investors, offering extremely high returns of 10-15%. The offerings sparked interest in his hedge fund globally, with investors across the globe lining up to join in on the action. Madoff didn’t invest any of the money, simply paying the old investors with the new incoming money. On the outside it looked like he was just making brilliant investments, but he obviously wasn’t. Only the original investors got money back and all of the later investors lost a total of about $50 billion.
So how is this like our country’s financial situation? Well, with a debt of over $10 trillion, we certainly don’t have much money, but we do have many investors including countries like China who have bought billions of dollars in bonds. What happens when these countries and other small investors decide not to buy new bonds? We will still have to pay them returns on the previously purchased bonds, meaning the government will need to get money from somewhere. Of course since its the government they have more power than Madoff and what will end up happening is they will either directly tax the people or simply print the dollars, hence decreasing the value of all existing dollars and indirectly taxing the American people. The country will bail itself out by stealing from us, the citizens. Is this just? You tell me how we are different than Madoff.
We must stop this absurd trend of deficit spending if we want to steer away from this nightmare coming true. Next time you support a government program or bailout, please think about all the cirucmstances and whether or not we can really afford it.
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The debate for the “big three” bailout for American automakers is currently in full swing and thus far the majority of us have said “no”, but some may start to budge as these companies try to persuade people by showing them that they will cut costs and wages and push more environmentally-friendly products. All of these are just cries to try and get money to support their failing businesses. In reality, these companies aren’t sure whether a bailout will prevent future such collapses, they are just trying to survive another day. You can’t blame them for this because they are just looking for what’s in their best interest. It is how corporations run and we can’t criticize them. They are there to make money and that’s it. On the flip side, what the government can do is refuse them help in order to protect what’s in the best interest of the government and the people.
What’s best in this situation is just denying them the bailout. It was the companies’ fault for not making enough sales to be competitive with companies such as Toyota and Honda, who have appealed more to consumers. It is the companies’ fault that they misspent money on luxuries such as corporate jets and it was their fault that they agreed to absurd demands by the UAW, the United Auto Workers union, which represents many of the employees of these companies.
The UAW has also asked Congress for the bailout to save the workers’ jobs, but we can’t be too sympathetic with them either. Making demands of full pension for anyone who has worked for 30 years (regardless of their age) and wages of over $100/hr for jobs as simple as screwing in a light bulb, just aren’t reasonable.
GM, Ford, Chrysler, and the UAW need to realize that this mess is largely their fault and they will need to pay for it. They tried competing in the market and their failed. It is not the government’s fault or the people’s fault. It is theirs; it’s as simple as that. We need to say “no” because they really had this coming. Companies failing is a natural part of the free market and we must accept that. Also, bailing out even more corporations (especially irresponsible ones such as these) sends a bad message to other companies who are seeing declining profits. It tells them that the government will be there when they are in trouble. We can’t send this message because it only leads to more carelessness on their part.
It is time to realize that the whole bailout idea is flawed. We should let the market solve the problem naturally, instead of meddling because that will only make things worse. Look at companies like Toyota and Honda. Their American divisions are doing just fine due to better products that consumers want. It is all about the consumer in the free market and Ford, GM, and Chrysler simply failed to deliver.
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