Thursday, October 16, 2008

Joe The Plumber

Redistribution of Wealth is Socialism. Period.

Yaron Brook, says this:
The Treasury Department, as part of its ongoing assumption of control over the financial industry, is preparing to inject cash into U.S. banks in exchange for preferred shares of bank stock.

“Are we all socialists now?” said Yaron Brook, executive director of the Ayn Rand Center for Individual Rights. “Have we learned nothing from the devastation that socialist policies wrought worldwide in the twentieth century? Government intervention distorts markets and causes economic dislocations, no matter whether Uncle Sam controls private companies by regulation or assumes public ownership outright.

“A crisis doesn’t transform poison into medicine. Over decades, government manipulation of money, credit, and mortgages poisoned this economy and left it dangerously weak. Now Hank Paulson and his comrades are hooking up IV tubes filled with more of the same poison--bailouts, loan guarantees, cheap money, and more burdensome regulations--and hoping we will lie still and trust in their cure.

“But the real cure is capitalism, not more doses of socialism. We should act quickly to put government in its place, by rolling back the interventionist measures that caused the present emergency. Government’s proper role is to punish fraud and enforce contracts, not to own and manage the economy. We cannot achieve financial health unless we are willing to free the markets.”
Unfortunately, the Bush administration, which has long ago totally abandoned true Conservative ideals, has most definitely set this country up for what is about to come. A McCain administration promises "Socialist-lite". An Obama administration would be Socialist. Either way, we will be seeing tons more government spending and tons more government expansion. They will be bankrupting every American into government dependence. The interesting thing is that once one is dependent, there is no incentive to break out of that dependence, and the programs which "help you" are also meant to keep you dependent. We need to stop thinking about how government should "give us stuff" and instead about how we can help ourselves.

Since we have been "so successful " in fighting "wars" from the "war on drugs", to the "war on poverty" to the "war on terror" - Look to see, very soon, the shift to a "war on greed" or a "war on corporatism" or a "war on capitalism" as we wend our way through this financial crisis.

This financial crisis was manufactured by the "universal housing" programs designed to put people in houses they could not afford. Yes, corporations and their CEO's were greedy, and they ended up ruining their well established companies and reputations, but the price to pay was their ruination. Government is now not allowing them to fail and/or ultimately be gobbled up by others in the private sector who might do a much better job. Instead, we are seeing the government move in to take over. It is interesting to see the timing of this all before our national elections and after China announced on September 25, that they would be freezing credit to the United States. It all sounds so very oddly "convenient".

With every move the US government makes to "fix things" they are met with more unease on Wall Street. There appears to me now to be a shift in the investment strategies of many to move from living and doing business in a capitalist financial market to one of a highly regulated and nationalized financial market. Sure we had regulation in our "free market" but now the regulation will be on steroids, even to the point of dictating how much money CEO's can be paid by their own companies or boards of directors. The stock market is trying to assess where we are all going. This is no accident that this comes before November 4th elections.

Barack Obama is a Socialist along with his pals Nancy Pelosi and Harry Reid. If this triumvirate hold the reins of power in the next 4 years there will be Change alright, but it will be Change that robs the wealth from those who have worked and took risks and gives it to those who have not worked or taken risks. We already have seen historically that Socialism doesn't work. It stifles the incentive to grow rich. Treasury Secretary Hank Paulson and Federal Reserve Chair Ben Bernanke, say this bailout move is distasteful but that they have to do it... hogwash. They don't have to do anything that they don't want to do... the fact is that they have made out very well in this deal as it has given them more power then they had before.

As for Joe the Plumber, he and millions of Americans will be the ones ultimately holding the bag - as we are forced to give up the fruits of our labor to pay for everyone else, and "spread the wealth". The question remains, what happens when there are no more rich people, and no one to take the risks or to grow a company? What happens when we are all on the receiving end of government bailouts? After all, as taxpayers aren't we all really "the government"?

"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not." - Thomas Jefferson

Extreme taxation, excessive controls, oppressive government competition with business... frustrated minorities and forgotten Americans are not the products of free enterprise. They are the residue of centralized bureaucracy, of government by a self-anointed elite.” - Ronald Reagan