THE TROUBLE WITH SOCIALISM

"The trouble with Socialism is that eventually you run out of other people's money". That, of course, was a famous quote by Margaret Thatcher, former Prime Minister of Great Britain. It was true when she said it and it is true today. One needs to look no farther than Greece or even Spain to see what this quote is all about. In fact all of Europe is in a similar situation.

Let us consider Greece for example. Greece is a prime example of European Socialism. One in five employed persons works for the government. That folks is 20% of the employed work force. Normal retirement age in Greece is 54. Greece enjoys socialized medicine. The Greek billionaires, of which there are several, often pay no taxes on their income or holdings. They hide that income and their assets in off shore accounts. It has been reported that most if not all of them enjoy cozy relationships with the governing officials who would otherwise be after them for their delinquencies. Now it would seem that the chickens have come home to roost in Greece and they are probably not alone in their situation. Spain and others are facing similar deficits in income and cannot pay their debts or fund their many social programs.

The Greek citizens are rioting in the streets and some have even been killed in those riots. World markets are quivering at the possibility of European default. Greek officials have tried to pass austerity programs to help them get back on their feet but the citizens are furious. Just print more money and everything will be okay. Greece, as a part of the European Union, is a subscriber to the Euro as official currency. Greece cannot just print more money. So what is the answer? How will this matter be resolved?

The EU has set aside a fund of one trillion dollars to help Greece and other member states in the event of default. What this is, however, is not a fix. This is a band aid. This is at best a temporary solution. What has to happen is a complete change of philosophy in governing. It is clear Socialism doesn't work. It has never worked. The reason it doesn't work is simple. For an economy to flourish, wealth must be created. Government doesn't create wealth, it only spends wealth and it only spends other peoples' wealth. Government doesn't generate money; it only takes money away from those who produce it. When those who take exceed those who contribute, the end is at hand. As a part of this European bail out, member states must re-align their priorities and become more austere. They must prove to the Union that they will abide by reasonable measures to help cut their debt and internally fund their social programs. Of course, their citizens will not be happy. It would appear that the gravy train has been derailed and the depot is closed.

I am presenting this essay because it is obvious to anyone who would care to look that we are headed down a similar road. I don't believe that we are in as much trouble as Europe, but we seem hell bent on getting there. In our last election, the winners were of the taker side of the equation. The producers either stayed home or they are now so outnumbered that the result couldn't have been changed. It certainly seems that I, and those who think like me, am in the minority. That doesn't bode well for this country or for the world. If this country goes into default, the whole world is in serious trouble.

So, what is the answer? How are we going to prevent this mess from happening? The answer is simple. We absolutely have to elect the right people. We cannot afford to continue electing these free spenders that have held power in the past. I am speaking of both Republicans and Democrats. There truly is no free lunch. It is clear the so-called elite media is on the wrong side as well. That puzzles me also because they will be among the first to be out of business if the left continues its climb to power. There is no place for profit in the Socialist idea of the promised land.

I am about to reach my seventieth birthday. This will not affect me. It will however affect those I love who are charged with the responsibility of fixing the mess. I think it is going to be ugly, but I think it is inevitable.

Ron Scarbro May 11, 2010