7/15/2012

Socialism does not work


Socialism in Europe and in this country always starts the same way – promise people free health care and free retirement and free housing and whatever free stuff wins political favor and gets you reelected. This is what progressive liberals do and what Obama is doing. And people keep voting for them because they love "free stuff".  They don't care where the money comes from. 

Some claim that the "rich" will pay for it all. But, the rich do not have enough money. They may have enough to pay for the very poor, but not for everyone. So, the socialists borrow the money. That way, they are still giving the populace free health care. But, at some point you can't borrow the money anymore because the people you are borrowing it from realize that they will never be paid back. This is the tipping point at which socialism fails. Past this point, you have to tax the people to whom you promised the "free" stuff in order to pay for their "free" stuff (those people are the middle class).

The people understandably don't want to give up their free stuff  -- or have to pay for it. But, they will have to do one or the other. And, an entire generation will suffer. Have a look at the EU right now and you can see it in all it's gory details. And -- make no mistake -- we're right behind them unless we wise-up real fast.

I have liberal friends who try to tell me that the austerity and pain in Europe today is because of GOP “Policies”. Europe’s pain and contraction is precisely because  20 years of profligate Socialist spending and borrowing is no longer working. When a country’s debt to GDP ratio gets into the 100% range, rating agencies begin to downgrade government debt. It is simple math. Sooner or later, the Piper will be at the door carrying an AK-47.