Saturday, November 20, 2010

Has Capitalism Come To An End In America. Part III

In Part III of this series on the end of Capitalism in America we take a look at how arch enemies have been united despite their struggle to overcome the other.

The highlighted segments are excerpts from a book by Thomas G. Reed,  The Fallen Eagle 

The Enemies Unite But Not By Choice:

One only need look at our Western European friends to see a perfect portrait of Marx’s state controlled economics.  After years of infiltration, most of Europe is now dominated by socialist polices and governments. I might add that in recent months and weeks we have seen the peeling of the paint from the portrait of  the Utopian promises brought about when one falls for the idea that one can use “cheap  watered down paint” instead of good oil paint for a long lasting portrait.

Europe has fallen but America has not yet experienced a total conversion to socialism not withstanding the decades of relentless socialist attacks.  Nevertheless through our democratic processes she has adopted enough of Marx’s theories that countless demands have been placed on her once-free economic process, Social Security taxes, minimum wage standards, unemployment compensation, employee quotas and other benefit packages have helped convert private enterprise into an unwilling sponsor of socialism.  The socialist have legislated, with great success, their arch rival into a rather effective ally. Our recent election of such Marxist inspired leaders have greatly accelerated the process.
Along with the legislation has come the taxation. By taxing producers and donating the proceeds to non-producers, the state, as an errand boy for socialism, redistributes huge chunks of this country’s corporate (and personal) wealth. In just four decades, the government’s war on poverty has cost American taxpayers trillions.

Honest Americans realize the outrageous cost of these government social programs and are sickened by them. These same Americans were disheartened and disgusted for the most part, by the reluctance and ineptitude of elected officials to make changes even though it has been proven time and again through studies that these pet projects of politicians are wasteful, ineffective(even harmful to the participants) or destined for bankruptcy.  Perhaps our recent Congressional elections have shown these entrenched politicians, living on the power as if some kind of drug, that the American people are finally tired of this spending and it can either be reigned in, cut, or their supply of  “power drug” can be taken away at the ballot box. One can only hope that it is not too late. 

One of the most recognized of these programs, and a seemingly untouchable one, is the social security system, which when conceived was a commendable idea, but nonetheless an expensive pyramid scheme.

When it’s fraudulent nature appears , and that is fast occurring, the system will collapse and the latecomers will lose. Before that happens, payroll deductions will continue to escalate as the ration of workers to recipients steadily declines. And, as the number of retirees (and with them, cost) goes up, rivalry between the generations will increase, creating further social divisiveness.

Another such program and an example  of misguided government intervention is minimum wage laws.

Those on the left screamed that such laws were necessary to protect the “downtrodden” from the likes of the “Big Mac” cookeries, the evil Wal-Mart's, and other such “big box” stores who hired the unfortunate and then oppressed them through low wages and long hours. In other words the left attempted to paint a portrait of the 19th century sweat shops using cheap watered down paint and now the paint is peeling and the portrait is proving to be nothing more than a canvases with muddled patches of untruths spoken in order to gain another foothold in a group of uninformed individuals for the purpose of producing votes for their agenda. In all the program has done nothing but have a negative effect on those workers at the lower end of the marketable skill level. The program has resulted in cost increases wen employers raise prices, increase productivity levels and often fire or refuse to hire workers in the minimum wage category. In addition, minimum wage laws decreased competition that higher skilled workers face from the lower-skilled, creating a situation of unfair advantage to the skilled worker. The unskilled remain unemployed and the skilled grow steadily more affluent.  Yet those who demand such programs continue to decry the results and demand increased wages despite that facts prove their agenda to be wrongheaded... Ahhh but it buys votes.

There are more such programs that have done little to nothing to aid those for which they were intended such as the food stamp program, assistance for medical treatment (and we have seen the introduction of the biggest of these doomed for failure programs introduced as Obamacare within the last two years), housing projects, which have become nothing more than “welfare havens” for non-producers and baby factories for illegitimate children produced by unmarried women who find it more economically rewarding to remain unmarried than to marry. All such are supported by Welfare which has done more to keep people in poverty than any other known program produced by the government. But yet the cycle continues uninterrupted because of the thirst for power by greedy politicians who in fact could care less about the people that their programs adversely effect. Those on the left will never allow the “plug” to be pulled on such programs for it will sound the death knell for their control and power.  As the Communist use the proletariat, political poverty pimps use the poor as a devise to assume and retain power.

The capitalist system capitalized on the socialist redistribution efforts. The economy grew , the people had more money to spend and spent it, wisely and unwisely. The law of supply and demand drove prices up and business prospered. Prices climbed after trade unions extracted increased wage and benefit packages from reluctant profit[conscious corporations. The never-ending spiral of increased costs followed by higher prices generally favored the corporation. In essence, capitalism has shared enough of its bounty with the working class to buy them off while it rebounded from near collapse in the most prosperous haven of private enterprise ever.

Sadly to say, the die is cast and until the end, American economics is destined an unholy mixture of philosophies espousing material blessings on the one hand and altruistic welfare on the other. 

In the next segment I will present a look at What’s Wrong With Capitalism from the author of  The Fallen Eagle  perspective which uses both political and biblical outlooks to as a basis for his outlook.  

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