Monday, October 27, 2008

The Cult of Redistribution

New YouTube video from 2001 has Barack Obama on the record advocating the use of the courts for radical income redistribution. Never addressing that little obstacle called the Fourth Amendment, of course.

I am still beside myself when I see how much support these ideas have gained in America. People advocating their own unemployment and poverty. The only thing I keep going back to is how we have failed to educate for so long that Americans have no analytical skills or basic knowledge of history and economic theory. It was another charismatic man, from the 20th century, who said it best...

"It is fortunate for those in power that people do not think."

People are not thinking about how these redistribution plans will actually hurt their own middle class bottom lines.

When Obama pledges to "spread the wealth," he's talking about taking money out of the private sector. This is money that, no matter how spent/saved in the private sector, creates wealth. Yes, some of the new losers will be rich even "filthy" rich. Those filthy rich people create jobs. They save and invest. They use capital in their businesses to grow the economy. This activity is what gives the American middle class the opportunity to make a decent living. As a middle class American, from a very middle class family, I've always accepted that in order for me to make $xx,xxx that there were plenty of people making $xxx,xxx,xxx.

Money in the public sector doesn't create wealth, it creates entitlements. And thus we have the ultimate risk socialism thrusts upon us; it's inefficiencies break down the private sector's ability to create wealth while growing a welfare state that the private sector can no longer support.

The promise that the IRS will only target those making $250,000 or more is an empty one for this very reason, and as history shows, these types of socialist schemes create a slippery slope effect and leadership abandons all of the promises when the scheme starts to fall apart.

This will quickly snowball into a massive redistribution which will require both absolute moral authority (don't question the dictator) and a living tax code. By "living tax code" I mean a way to rapidly change the tax code to seize as much wealth as possible as we descend into poverty as a nation.

Progressive taxation, for "social and economic justice" will assure us several things in the short term...

- Higher unemployment (less capital)
- Lower wages (fewer raises + inflation = pay cut)
- Higher costs of goods and services (tax is a operating cost passed onto consumers)
- Prolonged Depression as wealthy Americans look for tax shelters instead of investing

In the long term...

- Abandon the dollar after complete debasement (taking wealth from tomorrow's Americans)
- Forfeiture of the "right to work" and the right to exchange labor for pay
- Prisons (gulags) to punish those who are unwilling to work without pay

In this chaos we can expect each of our rights protected in the Bill of Rights to be revoked either through judicial activism or emergency legislation. The country will be falling apart and the handful of architects at the top will be desperate to hold it together.

We've listened to people cry about Bush suspending Habeas Corpus for 200 terrorists. Will there be outcry when First Amendment rights are limited to state run media? How about an elimination of the Fourth Amendment to speed up seizure of private property? And let's not forget about that pesky Second Amendment either.

If only history could provide some insight and direction on any of this?!? Has socialism ever been tried before? Does it work?

People just aren't thinking.

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