Socioeconomics: Capitalism and Socialism
Matthew J. Banks
April 20, 2010
Socioeconomics: Capitalism and Socialism
Socioeconomics is as difficult to describe as the supply and demand of air, though seemingly invaluable, it is also not a commodity but an environmental benefice. Defined as its components it attains a moment of clarity, socialism, share and share alike, and capitalism, a barter system. Socialism is the belief that social ownership, asset(s), can be achieved by voluntary and peaceful surrender of their holding by wealthy groups, causing debt bondage and wage slavery. Capitalism is the belief that something more than a promise, will restore society to normal economics. We must discuss the dramatic moves or we will never take the first steps of liberty.
Socialism is a stage in society, transitional between capitalism and communism, and distinguished by unequal distribution of goods and pay according to work done (Merriam-Webster, 2010), tendering nothing for economic growth or employment. Lead by rumormongers, a subsection of profiteering exploitations alongside Capitalism, which thrives in a climate of fear. Socialism is not so much charitable as it once was, as in recent times becoming, entrepreneurial and exploitative. Some will argue that without it, there is no responsibility but with it, the benefactors are not. Right now, the responsible are paying for the irresponsible and the burden is growing, making blind faith in politicians a faulty option. Despite austere warnings, the bureaucratic laws have increased the count of hypocrites, increased taxes to the breaking point and interfered with personal choice, in a country founded in opposition of such aristocracy. Shameful, spend now and tax later, tactics have priority socialist countries in collapse.
At the turn of the twentieth century, society had become one of equality through adversity. In the nineteen-twenties, President Harding with an unlamented economic calamity inherited by his predecessor President Woodrow Wilson defeated an economic depression with record unemployment, massive debt and a bloated federal government (Whitehouse.gov, 2010). This forgotten depression was solved without the governments expenditure of taxes from citizens, just the opposite cutting the federal budget in half, cutting marginal income tax rates for ALL groups, cutting the national debt in half, not the deficit, the DEBT.
His successor President Calvin Coolidge said, "I want the people of America to work less for the government and more for themselves, I want them to have the rewards of their own industry…this is the chief meaning of freedom. (1925)”
Nine years later, new presidents such as Hoover followed by FDR reintroduced a bureaucratic government, massive taxes and spending, causing the great depression. This is the era that gave birth to a government that nears dictatorship, obscene taxes, and the government entitlements, many of which today still repress the economy. These 'New Deals' prolong economic depression, yet again, the goals of those comfortable with a welfare state that say or imply they support free market principles but are willing to commit totalitarianism.
Socialism is humanitarian aid in a relevant outlet for people to crawl out of the proverbial gutter, when they cannot do so alone, to make it through hardships, and to help others to whom they are responsible. Socialism is often disrespected, partially because the immature do not understand its purpose, that in a roundabout way they will be paying for everything and their possessions. Directly funded resources are vital to taxpayers and the taxes they pay, because the stewards are certain of the costs of operation, and of the effects, damage will do to future costs.
Approximately 28% of the population paid zero federal income taxes in 1950; today nearly, 50% do not pay federal income taxes (Internal Revenue Service, Tax Foundation, 2010). With bankrupt cities and states and a national debt of trillions, a GDP in negative fully reversed cannot compensate for the losses of the entitlement programs all run by the government in its current condition (Day, 2010) (Dohmen, 2009) (Internal Revenue Service, Tax Foundation, 2010). This broken system burdens conscientious taxpayers for those who are ungrateful and unwise. Soon, financial stress will fall upon all, every time people accuse and attack those with moral fiber or a functional work ethic there is tragedy. People, who make money, do or do not give to charity, but for sure, many of those dependent on the state believe that people are not charitable, are not themselves and believe people must be compelled to do so in each instance (The White House, 2010).
A side effect has become that tuition has raised as much as five times as much as it was in 1980, rising to more than 100 of a family’s income capability (NATIONAL ADVISORY COMMITTEE ON AFFORDABILITY, 2002), as universities exploit welfare aide grants and loans provided by the government, to pay for expansion and tenure. In 1950, spending on social services by the U.S. government was 33.4% of total federal government expenditures, today it is 61.3, SSI to see payout exceed pay in this year - 56 Million people receive some type of benefit (Chantrill, 2010).
This occurs at state and federal levels (Chantrill, 2010), California is in crisis, making outrageous cuts in education and public services (Lewin & Dillon, 2010), and it is a microcosm of national socioeconomics. From taxes not only of salary but also of individual taxes on specific items in full luster at both state and federal levels, each income bracket pushes closer to the poverty line as the gap between the upper and lower incomes grows. Every dollar charged in taxes is one a worker cannot spend, on their children’s education, vacations, and putting back into the economy, that would be more productive, putting back into economics. It is also possible to flat tax a society without cutting vital programs calling it waste reduction. Half of our country's households do not pay taxes at all. Therefore having little reason to work logistically, as costs saved by the system at any corner congress continues to spend because likely half is not watching those who pay the least often wanting the most.
Michael Tanner, Senior Fellow of the CATO Institute says “federal projected increases in government spending by the middle of the century, will be 40% of GDP for Social Security, Medicaid, Medicare and 20% to federal employee wages, estimated at bankruptcy by the end of the century. The CBO says that 35% taxes would jump to 88% taxes, to compensate for government, just in federal taxes. The richest 10% of Americans pay 20%, funding almost half of this country.” Tanner estimates tax increases to finance government spending, making predictions based on CBO spending projections, changes of the following income ranges: 35% to 88%, 25% to 63%, 10 to 25%, and the corporate tax rate from 35% to 85%. (Tanner, 2010)
Cutting taxes on employers of the economy is a small boon to the economic growth, keeping employees and promoting personal purchases, but not an economic return to average from recession, or an economic recovery can finance the current federal budget.
If freedom rings with governmental control of choice, with irresponsible and ungrateful social services recipients, the institution suffers. As the inept come to power, more entitlement, less choice, less freedom, fewer rights to work but more cause to pay, stifles innovation. The ungrateful and the naive who consider the waste on them worthwhile are diluting the purpose of government (Ropke, 1962). Our country is in severe debt and every financially combative effort to resolve this problem has been total cost expenditure, from solely a lack of conservative approach. It is a failed business model, further damaged by those involved not concerned with their investment, as this country is our investment, as well as it is one of those still yet unborn. Teachers salaries in California are the highest in the nation, with great benefits and great pensions - teacher firings and dangerous cuts in educational services are avoidable if the entitled would mature and share the burden of taxation. The Nation is soon to follow this more for less mentality. The budget is misallocated, something has to be done soon, short of sweatshops and slave labor with annulments to bans on political dissent.
The diligent receive mandates to purchase health-care, with prohibitions to cross-border purchases and personal purchasing power, increased payroll taxes, fines and penalties (The White House, 2010). The repercussions of underfunding include a decrease in Medicare and Medicaid services, allowable deductions and tax credits and threats to other programs, like the educational system as mentioned, and social security, in measures to reduce costs as new governmental boards, regulations and commissions on cost effectiveness form, funded yet again by taxes (The White House, 2010). These costs effect college tuition rates as well, and the uneducated are defenseless as costs raise and quality of service declines.
The typical attempts to seek adoration without effort is part of the problem, because it entitles people to expect the unattainable, the right to destroy had never been. If you think, a liberal government is going to stop taxing at the rich and the repercussions absent, than you have no sense of history. It never has ended with the wealthy. Limits tighten as the definition of rich gets rewritten time after the next, until social welfare becomes emphatically unbalanced and socialism drains away the income earners. Slowly the slaves attempt to become the master in a feudal state where socialism as a solution puts people to sleep, drip by drip of poisonous political power and corruption. This problem time and again, created self-concerned dictators such as Hitler, Pol Pot, Mussolini, Stalin, Chairman Mao, Napoleon, Caesar, ALL who fought for bad ideas and horrible decisions in the name of a new order of socialism.
Entitlements are exploding with the rich picking up the 'tab'. Housing credits (The Tax Credit Coalition, 2010), cash for clunkers (Car Allowance Rebate System, 2010), green building subsidies (Economists on Environmental and Natural Resources, 2010), all creating an entitlement that builds with people who forget the government thrives on reciprocating taxes and loans from the nation's treasury and Central Bank, to fund social services. Some people are so far gone, they suffer an emotional disconnect, believing that a free ride will never end, but truthfully someone has to pay the fare. Crime is reprehensible, and without funding for police, it will run rampant with fundamentals intent on the state dependency agenda and other bottom of the barrel criminals. If the power and incentive to experiment does release from the dictators to states, schools, and families, the recipients will take decisive action. Things they cannot do, become trades and skills, to be taught in schools.
Federal Reserve chairperson Ben Bernanke said April 7, 2010, "To avoid large and unsustainable budget deficits, the nation will ultimately have to choose, among higher taxes, modifications to entitlement programs such as SSI and MC, less spending on everything else, from education to defense, or some combination of the above,.. But unless we as a nation demonstrate a strong commitment to fiscal responsibility, in the longer run we will have neither financial stability, nor economic growth"
Government results are becoming highly suspect, in 2010; only 81% of dept of education, spending goes back to the states and test rates have been flat since the Dept. of Education’s inception. (US Department of Education, 2010) (National Assessment of Educational Progress, 2010).
“The only way to keep them out of the cookie jar is to give them no choice, which is why whether it is balanced budget acts or pay as you go legislation or any of that... It’s the only thing, if you don't tie our hands, we will keep stealing” --Congressman Tom Picrello, March 18, 2010.
Education, trade and illiteracy make a necessity for the state of humanity to progress through education, a system of currency, and eventually charitable society, and yet still some cannot afford to educate themselves into independence as the process continues. What will the irresponsible do, when comes the flood, will they take to higher ground, refuse social programs, raise taxes, if there was a higher ground, there would be not the unsustainable debt, there would be no flood. Student loans by government, salary and payment of student loans for those who are a federal employee, is indentured servitude.
When entertainment mixes with politics, the result is science fiction, untested, improvable captivating results for burgeoning fortunes with cash in hand. So many are convinced they must fight the government's downhill spiral battle for them, without knowing the truth, the causes and effects of supporting a cause for publicity have come to falls in the quality of federal programs, including pensions, health and education coast to coast, both publicly in budget and privately in the knowledge base of the consensus. Sufficing supporters are often debutantes and lunatics, crippled by vanity, trying to alter reality. When politics mix with science, you get just conjecture.
Negative and positive are always the same, and we must “hold these truths to be self evident,” (U.S.A., 1776) , and consider our options and not simply rediscover our “better angels.” (Obama, 2009) (Lincoln, 1861) What is more important, a resume or a credit-score?
There is a revenue problem. Civility and humanity must remain, as supporting proponents of social services and we cannot ignore or denounce the truth. Every year people lay victim to poverty due to natural disasters, a diminutive economy, ill-considered family structure or some combination of each, more and more as the gap between the upper and lower incomes widens, as they themselves do not contribute, eventually resorting to extremes. Those who want the oppression and ensuing tyranny, change the topic by demonizing the conservative opposition, growing prominence as threats of our societies collapse becomes apparent and looming. The damage only worsens as news reports come from entertainment companies.
Some people take jobs that pay less because it makes more sense to make a lower salary in a lesser tax bracket rather than work harder and longer only to bring home the same pay after taxes. The middle class squeeze is less hospitable to the forms of higher taxes, college aide, to the tune of 70%. (Forbes, 2010) Lest we forget new taxes hurt jobs, as a society of reverse morals keeps taxing and spending more without more action, causing deficits and new taxes. To understand the cost, while providing assistance based on quality and not quantity, under a government that trusts the aristocracy more than the people, we must remind ourselves we are free to work hard, save smartly and to pass on a lasting legacy of the values and wealth of prosperity, not dependency, to the offspring who must succeed.
It has been commonplace for much of time, to plant the largest seeds, and not the smallest. Wealthy philanthropist George Soros warns Europe of collapse as violence in Greece grows due the problems the United States is currently creating for itself, debt and entitlement. (Tett & Giles, 2010) Severe consequences as entitlement only increases debt can only be avoided if projected cost estimates must be accurate AND Congress cuts spending, neither of which have yet been done. The current administration also said that unemployment would not go above 8.5%. Throughout known history, pioneers have had no money, nor safety net, nor guarantee of health-care, these are what people want, but will they sacrifice liberty and freedom to be a Pavlovian dog of the government. If a government creates a dependency, disappointment and revoked liberty ensue. In a country devoted to states sobriety when there is none, often on both sides, lie, cheat and steal to repeat the like, an invalid, incompetent, welfare state, labor and appreciation for production, yet there are so many paid to avoid innovation.
People, who want the high-income earners to pay more taxes, do not realize that the high-level income families earned that money legitimately. Like many children, if they spent as much time working as they do complaining, things would already be finished working. It is better to serve your survival, than to serve the weak, because society is one that gratefully as well as inherently serves all, tandem to the price of freedom. Most people may enjoy this charity, because it is not their money and rightly so, but people lose their humble climate if someone else pays, assuming there is not an ultimate cost. Congress has excelled at spending for several decades. The openly projected national debt is to reach 20 Trillion in the next 10 years (Associated Press, 2010).
There have been bad people in the financial sector and bad people in our government who made bad deals for all of us, but because the central bank has deep pockets, society pays and all problems, fictional or not, are financially supported by taxes. If they make the most, as they contribute the most, as in the forfeit of taxable income, they further soon may not contribute by either means of asset depletion or subterfuge of payment, just as anyone in poverty, math does not change if the number is bigger. This is an information age, driven by twenty-four hour media, fueled by loquacious hopefuls, who concern themselves with trivial things. Often in groups, they throw the occasional fact to their audience for the sake of information entertainment, under the auspices of journalism, between their attempts to marginalize their opposition, brainwashing our future leaders. Waste, fraud and abuse of power and money, in both are very similar, if not the same a small price for theoretical safety, emotional comfort and lackluster and sparse information at its finest.
"When the people fear the government, there is tyranny. When the government fears the people, there is liberty.” --Thomas Jefferson.
The 13th amendment is the abolishment of slavery except for punishment, what was the crime committed that allowed Washington, D.C. to mandate the purchase of a good or service, which is conscription. People may become corrupt if never taught ethics without entitlement. With any situation the first offense is circumstance, the second is happenstance, and the third is enemy action, to which the result is a reversal of the blind following of taxation without representation and the indictment of our politicians' character, soon followed by civil unrest. With a total unending dependency, there is a loss of freedom for every person to make intelligent choices without guidance, interference or compulsion by captors, some might call this codependency. There are areas of personal choice, which are of no import to the government, its lack of socialism of morality, or its environment of adolescence.
Moody's, a credit rating agency, made a statement, “preserving debt affordability at levels consistent with AAA ratings will invariably require adjustments of magnitude that, in some cases, will test social cohesion" and "the severity of the crisis will force governments to make painful choices that expose weaknesses in society." Former CBO Director, Doug Elmendorf said, “The nation’s fiscal path is simply unsustainable.”
The world is on edge, there will be civil unrest because when they reckon the looted treasury and a different future for their children lies in route, they will not sacrifice taking the easy path, not relinquishing entitlements. Those that flaunt their possessions remand all, with ungratefulness to the eyes of the rest of the world. Because the majority rules, does not mean they are correct, we have rights that come from experience and history and not from any politician. State dependent fiends cannot live independent, so could not possibly govern a society that must function independently.
If investors know that taxes are going to go up at the end of a year, they are going to sell off, and any recovery will be short lived, as an economic system slowly stops, just as if a population burst has occurred, or the price of a valuable commodity such as oil were to dramatically increase. As those who donate to charity at the end of a strong work ethical day, having no issue with socialism, are bullied by those who believe it does not yet offer enough, who themselves give nothing or not enough, a government in any number of shades of corruption is nationalist and not patriotic. To insist on problems without facts, without knowing the effects of your actions, and to blame those that want to conserve the ways of functional society that have been in place since its inception, is alarmist and illogical. The problem ensues as both sides of exploitation continue the same conflicted mindset, as the charlatans attack the pride of the hard working, a neoconservative oppression, designed to elevate the new fascists to elite status, as long as it remains new, or they will discard it as soon as they lose interest.
The capitalist system is dying on the vine as tax revenues are drying. Canada has never had a federal department or ministry of education, getting higher test scores in international comparisons, than the US, and Canada has more school choice, more voucher programs, more charter schools, and more innovation, because decentralized innovative local school boards do better than a federal department of micromanagement (Edwards, 2010), which speaks wonders for state sovereignty. Awhile Chicago is one of many major cities in the United States, closing schools, packing pupils to capacity and experimenting with ‘pay to pass’ programs (USA Today, 2008), big establishments do not prove well for innovation and individuality, they have a rigid mindset which they bestow on their drones.
Wall Street is Main Street, Enron, AIG, Goldman Sachs, and others have been fraudulent over the years, but that was not Wall Street and Main Street, it was Wall Street and Capitol Hill. Credit will get tight as Wall Street gunslingers take back control of Main Street from evil Uncle Sam, despite the agenda, capital is king. If taxes do not come down, Wall Street will stop funding the cults who attack capitalism to fund bureaucracy, regardless of opinion. There will always be a balance where the next generation philanthropists will end the vanity of the welfare state, to bring liberation to freedom and responsibility.
The free market and common sense are the good solutions to complicated problems that will rule the day. The adoration and expansion of government programs without removing the overall waste, fraud and abuse, is an allocation of excess. Gratitude and respect both increase when fleeting items and cherished wealth are earned, entitlement programs often do not protect the vital resources used in operation, food commodities are regulated but only cattle are given free food. Countries cannot afford to keep walking people through the darkness or they will never learn to see, they will never learn to elect someone to illuminate the situation, to end the taxes that kill jobs to pay for unemployment in a return to an economic fluidity dream. A nation of entitlement cannot keep holding the hands of the innocent or they will not leave the luxury of the government dole.
A severe political division and sharp rhetoric, on one side, red blood carrying life to vital organs returns to its source to do good again, the adverse blue blood, seeks to control more life, only carrying waste, requiring more, taking the breath out of the livelihood of the country, a bankrupt culture and the checkbook to match. Existing costs will consume every tax dollar raised or lowered, why not promote a growing economy that society can partake. Like in electronics, a signal makes a degradation trip, sent across a wire, only able to go a certain distance before a repeater. Money cannot be as effective when first taking a trip to Washington for allocation to its original purpose before arrival.
This easy money cannot go on forever, or the government will inflate another easy credit bubble, the debt of the government has replaced the debt of the private sector in just the last year, and without a plan to reduce the fiscal deficit in the years to come, to avoid default they will create a monetary inflation. Legislation alone will not solve the problem; together people need to teach others the benefits of success and the flaws of socialism.
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