USA: Socialism Gone Wrong

socialism
From SOTT.net

In every country there is a hint of socialism. Without socialism we do not have roads, schools or even armies. Those items which are too complicated or expensive to purchase as individuals are the items funded by society for the good of all. There is no doubt that socialism is necessary. The arguments occur over where the line of too much socialism is drawn and crossed by the government.

In the United States we do it wrong. The key word in socialism within a competitive free market is ALL. Projects like NASA, interstate highways, and national parks benefit us ALL. Too often spending is focused on special interests, a.k.a. not all. When money is funneled away from everyone to special interests it artificially diverts it away from the general population for the benefit of a few.

We cry out loud when we feel someone is “sponging” off the system because they are lazy and poor. Where is the outrage when annually those that have plenty skim double the amount from the top of the US Treasury? This isn’t jealous bitching. It’s a fact. The results are tangible. The middle class is shrinking, the number of poor is growing, and the rich are getting richer.

Trickle down economics was the biggest fallacy ever sold to the American public. The rich don’t spend in the same proportions as a thriving middle class. How can the 3 million or so people in the top 10% spend as much as the 198 million in the middle class? They can’t. Because trickle down doesn’t work the top 1o% are getting richer while the middle class shrinks and are squeezed financially.

The secret is out. People are upset on the left and the right. The popularity of Bernie Sanders and Donald Trump signifies the attempt to resolve the disparity through political means. The American public has written the ad for our upcoming presidential vacancy and it reads “Washington Outsider Wanted.” The status quo is no longer working.

We can’t just willy-nilly take money from one side and hand it back to the other. This needs to be an organic process where the laws that swung the pendulum so far to one side are swung back towards the middle without killing the economy further. The process starts with ending crony capitalism and corporate welfare. It makes sense that high achievers are going to make more than lower achievers, but at what point is the game rigged? It’s like asking when does a picture of a naked women turn from art to pornography. Somewhere along the spectrum it changes but we can all agree at the far end of the spectrum that it’s pornography.

The same has happened in US economics. Somewhere along the line the scales tipped away from the middle class. The exact point the system stopped working for all Americans can be debated, what can’t be debated any longer is that the scales are completely tipped and the general population is getting screwed.

Every candidate for president is calling for job creation yet they always talk about bringing big companies back from overseas. They are not coming back.  Rebuilding the middle class is the only way to make that happen. The largest number of jobs are created by new, innovative companies not older companies whose sole purpose is to drive profits through increased efficiency and moving jobs overseas to decrease costs; a natural function in the business world.

It sounds like I’m demonizing larger corporations; I’m not. A tiger will do what tigers do. But if tigers eat jobs, I’m not going to invest in more tigers. It’s counterproductive to what is best for all; which is what we do when we invest in subsidies for larger older corporations. Newer, bolder corporations are where jobs are created.  Subsidizing older established corporations only lines their pockets.

We’re doing socialism wrong. We need to get back to doing socialism right by only investing in what benefits us all and those investments should be few and far between. The government should not interfere with business other than to prevent those actions that create imbalance in the system. Older corporations regardless of size should be allowed to fail to reinvigorate the market with fresher, newer companies that create jobs.

 

 

 

 

 

 

 

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