The Change to Socialism

Last week we heard how Washington had solved all of our financial problems by passing a government takeover of much of the free market. It's been great this week since the solution has been found hasn't it? I mean isn't it great that the market is back up and everyone's savings are safe? Everyone who wants to borrow is able to borrow again. Businesses are flourishing and all is well with the world. Right?

Of course, not right. When all of this was suggested, I blogged that this was the wrong answer. I was shocked that a supposedly conservative President was going along with it. I'm sorry; Socialism is never the answer to ANYTHING in a free market economy. Those who do most of the money making and strengthening of the economy are free market capitalists. When the government steps in and begins to invade their territory, they pull their money out because they know better than anyone that the US government has no idea how to deal with ANYONE'S money. If left to the federal government to make a profit on anything, we would all be miserably and utterly penniless. The private sector knows how to make money and they know that the federal government does not.

Each time the government has "intervened", the markets have sharply dropped. Why? Well, the evil capitalists (democratic opinion) are greedy and don't want the government to "regulate" their industry (the democrat says). The reality is (sorry those who believe in class warfare and want to paint the rich as evil greedy people) that those who know how to make money are those who have the most to lose in the stock market. They are also the ones who make the middle class 401k, or in my case 403b, go up in value on a regular basis. They have been demonized by those on the left and now even some so called conservatives have been buying into it. These are the people without whom we would fall into another great depression. "Hey, let's punish the rich, the business owner, the man" the politician says. But just look at who is being punished. It's the retirement age woman who lives down the street from me who barely has enough in her retirement account to live on for her twilight years who has lost more than $12,000 in an already thin IRA. Is the rich man hurt, no, but he's not leaving his money in the market because he doesn't want the feds telling him how to manage it.

Oh, was there wrong doing in lending practices and so forth that needed to be addressed? Absolutely and those folks needed to be punished, but how our free market turned into a socialist nightmare, I will never understand. Let's just tax everyone who makes over a certain amount of money. Let's go in and take over all of their industries. Let's take over mortgages and give the federal government complete control over the majority of our economy. (sarcasm intended)

When we raise taxes on those who create jobs, they are not hurt, the middle class and the poor are hurt because jobs are cut and wages are cut and benefits are cut to make up for the additional taxes. When the government takes over investments in the stock market, those who drive the market take their money out and invest somewhere else, like precious medals and bonds and the ones left holding the bag are the middle class and the poor who see their retirement and college funds dry up. Look where the market is right now if you want to know what that looks like. When the government takes over the real estate markets, we are no longer free and our banks have to bow to the federal bureaucracy and loan values and property values all lose value. It’s not the rich who suffer from this. They have plenty of money (thus the title “rich”) It is the small guy who suddenly has a house that he is trying to sell that is no longer even worth what he paid for it. It’s the little guy who now can’t get a mortgage or a loan to buy a car. It’s you and it’s me that gets hurt. We are staring directly into another great depression if this socialist takeover is not stopped.

Now, I will say, neither Presidential candidate seems to have a good grasp on how to get us out of this, however, one candidate will greatly exacerbate the situation with his increased taxes on "the rich" (those who created your job) and increased business taxes. John McCain will not make the situation worse. He won’t fix it either, someone else will have to step in and start making some sense of all of this. McCain will, however make a large aspect of this crisis better by relieving those who create jobs with lower business and capital gains taxes. This will free up some monies to help create jobs and increase industry and GDP. Obama will simply make this situation much worse by raising taxes on those who created your job, those who invest in the market and make your retirement account worth more. He will force small businesses to pay for health care when they can’t afford it and fining those who can’t. Small businesses (those with 500 employees or less) are the major source of jobs in our country. His policies will drive many who provide jobs for you and me out of business. What will we do then? Oh yeah. Let’s stick it to the man. Really? Hmmm… It seems that when we “stick it to the man”, we are the ones who end up hurt. Do we really want that? People have been yelling for change. I for one do not welcome THIS change. This is nothing new. It’s what we defeated when we brought down communism in Eastern Europe. Are we now going to be the next great socialist experiment? I say, “Please no”.

What do we need to do? We need to write our Congressmen and Senators and let them know that we are not happy with this socialist take over. This is the democratic majority and unfortunately our President going seriously off course and taking us down a slippery slope which will indeed end up in our complete loss of freedom. Mark my words; we may be in the last days of freedom in this nation. This has to stop. Make as much noise about it as you possibly can.

Watch the following to see which party is at fault with the mortgage crisis. Did they need a takeover or oversight?

http://www.youtube.com/watch?v=VgctSIL8Lhs&eurl=http://www.ace.mu.nu/

Until Later,

Don