Intro

It's time for a reality check ...

Maybe we’ve reached the point of diminishing astonishment.

But I suspect that much of what we’re hammered with every day really doesn’t make much of an impact on most of us anymore. We’ve heard the same stories too often. We’ve been exposed to the same issues for so long without any meaningful resolution. We recognize that reality is rapidly becoming malleable, primarily in the hands of whoever has the biggest microphone. How else can we explain a society where myth asserts itself as reality, based entirely how many hits it gets online?

We know that many of the “issues” as defined are pure crapola, hyped by politicians on both sides pandering to “the will of the people,” which is still more crapola. Inevitably, it’s not the will of all the people they reflect, but the will of relatively small groups of people with disproportionate political influence.

Nobody wants to face up to the realities of the issues. Nobody wants to say what’s right or wrong – even when it’s obvious and there are numbers to back it up. Most of us are afraid to bring up the realities for fear of being accused of being insensitive or downright mean.

So we say nothing. Until now.

It’s time for a reality check on the fundamentals – much of which is common knowledge to many of us, already. But it might be comforting to know you are not alone …

Saturday, June 29, 2019

The democracy and socialism cycle ...

Socialism has a great appeal to many.  That’s why democracy often leads to it.

It’s pretty easy to convince people to vote for politicians promising free stuff. When enough people vote only for their own self-interest, you get socialism. 

Which is weird in itself, since socialism purports to help everyone.  But most often it gets in because enough voters only want to help themselves.  They may rationalize they are supporting socialism for the common good of all, yet it’s really all about themselves.

They don’t want to pay back their own student loans or the loans their kids still owe. They don’t want to pay for their healthcare. They want a higher minimum wage for themselves for what's really a low-skill entry-level job. They want government to subsidize the cost of food, housing, broadband, college tuition, or whatever, because they simply don’t want to pay as much. 

They want government to support them and give them things they want, not because they couldn’t have these things on their own if they tried, but because they don’t even have to bother trying. They don’t have to work harder to get a better paying job. They don’t have to push themselves to learn new skills. They don’t have to pay to feed their own children. Or worry about losing their job because of poor performance or a bad attitude.  Or even getting a job. 

Why not just let your elected leaders handle everything for you? 

It’s very appealing. Not to everyone, but certainly to many.   

The new popular term is Democratic Socialism.  It means – according to people like Sanders, Warren and AOC – that the ordinary voter will still have a say in how socialism works and its scope. Maybe even to decide how private companies are managed, and how they compensate not just their executives, but ordinary workers, among other things. 

If that sounds suspiciously like “dictatorship of the proletariat,” that’s because it’s the same thing. Only without using those words. 

And it simply doesn’t work.  Socialism – which is what Sanders, Warren, AOC, and lately Kamala Harris are actually promoting – always fails.  There are two key reasons. 

Sooner or later, you run out of other people’s money to pay for all the free stuff.

That happens first. 

Government grows bigger to administer the proliferating range of free services, subsidies, and giveaways promised by politicians.  Spending rises but there’s actually less revenue coming in because fewer people are required to pay taxes and more are net recipients of government money.  So it starts raising taxes even higher on an increasingly smaller pool of taxpayers. 

Professionals and business owners who can afford to leave do so, or at least transfer their assets and businesses elsewhere to avoid the crushing tax burden. That depresses tax revenue further and increases unemployment, which means more people are on government assistance.  

Power and water utilities are often bankrupted because politicians essentially give away their services.  Then these utilities are effectively expropriated to keep services going. When that happens, reliable power and water service falters and outages become common because the people who knew how to operate these utilities are gone, replaced by patronage hacks and clueless bureaucrats.   

Government borrows heavily to cover the shortfalls between revenue and spending. It sells assets to cover interest payments, destroying collateral used to back its borrowing.  When that fails, if it can it prints more money, which devalues the currency and spikes inflation. 

Finally, when the socialist government runs out of the ability to borrow more, as it certainly will, and its currency and IOUs are worthless, it can’t afford to provide free stuff anymore. When the free or subsidized stuff stops, the population grown reliant on these suffers.  

The promise of socialism faces cold, hard reality. 

In short, subsidized food isn’t a great benefit when there isn’t enough to feed your family.  Free healthcare isn’t either if there’s little medicine or enough good doctors.  Subsidized power and water don’t help when the lights go out and the taps run dry for hours every day.

Socialist leaders then have two choices. Roll-back the free stuff while raising taxes even higher – which will outrage significant parts of the population and risk a revolution. Or move to the next step for many leaders when socialism completely unravels – double down on government control of everything. And terrify the population with the alternative to that.   

That’s why when socialism in the extreme fails it often leads to authoritarianism. Once the majority of the population is almost entirely reliant on government, voters are afraid to change the status quo. They willingly cede absolute power so the free stuff and subsidies stay in place, even when those start to dry up; they are told things will get much worse if they don’t. 

That’s a very powerful message. It’s how de facto dictators get elected.    

And once some leaders get absolute power, they never want to give it up. They’ll do practically anything to keep power. Including the use of martial law and military force, if necessary. Even when their countries are collapsing around them and their people are starving.     

That leads to totalitarianism.  Elections are rigged.  Opposition is suppressed, sometimes violently.  Already scant resources are redirected to the military and police to maintain control.

Yet, sooner or later, all totalitarian regimes fall.  

What takes their place? Why, calls for more democratic government. 

And the cycle begins again. It may take years, but it almost always happens. 

Look at Cuba. Look at Venezuela. Look at failed socialist states around the world. Closer to home, look at Puerto Rico, the basket-case on our doorstep. 

Don’t forget to look at the United States, too, if things continue as they are.     

Democracy leads to socialism. Socialism leads to authoritarianism.  Authoritarianism leads to totalitarianism. Which usually leads back to democracy in some form.

Unfortunately, that often happens after millions have suffered.   

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