Bailout Law Embraces Socialism

Our economic crisis is the result of excessive credit and a collapse of inflated property values. Difficult economic times like this provide the temptation for America to reject its capitalism/free-enterprise system and embrace socialism. The bailout law recently passed by Congress and quickly signed by President Bush is geared to turn our economy into socialism.

When the government bails out those who suffer economic losses—it socializes the economy’s losses. And when the government taxes the successful businesses at extra high tax rates—it socializes the profits. Put the two of these together, and you’ve got socialism.

The stimulus package passed by Congress and the President a year ago—where the government paid over a thousand dollars to thousands of taxpayers—this is also a brand of socialism. And now there’s talk of another stimulus package. The problem with all these programs is that we don’t have the money to pay for them. The bail-out and the stimulus package are funded by DEBT. This means they provide a short-term fix, and that our children and grandchildren will be paying back this debt for the next 30+ years.

Of course, debt applies to both capitalism and socialism. But socialism solutions will make the situation worse. Rather than allow the market to correct itself, the government has rushed in and secured a .7 trillion dollar loan to attempt to fix the problem quick. The Bailout law will spread the loss around so that all taxpayers will pay for it, and non tax payers will reap the benefits. Then, if Mr. Obama gets elected, he proposes to tax the dickens out of the rich, so that he can spread their wealth around. That’s what socialism is—spreading the losses and the profits around so that we can become one, big middle class. But it is NOT the role of the federal government (under the Constitution) to provide for the people and to use the force of law to equalize incomes and assets. And just as importantly, it is economic suicide for a government to attempt this. Socialism has failed every where it has been attempted. That is because rather than rewarding creativity and productivity, socialism punishes them!

Mr. Obama’s campaign has been founded on SOCIALISM. His speeches appeal to the poor and the suffering; Mr. Obama promises to provide for every need and to solve every problem through government programs. To do this, he promises to tax the rich and to spread their wealth around to all the suffering masses. This pathetic appeal will undermine our economy. It may attract voters—to promise to provide for them—but it takes from the producers and gives to the unproductive. THIS IS NOT THE ROLE OF THE FEDERAL GOVERNMENT. Mr. Obama wants to change America from being a land of opportunity to being a land of entitlements. That is socialism!

We cannot continue to pretend that it is the role of government to be the provider for the people. That is socialism. That is Mr. Obama’s campaign message. It is wrong. It may win him an election by appealing to the weaknesses of the electorate. But it will eventually prove the downfall of our economy if it is not stopped and corrected.

A bi-partisan majority of Senators and Congressmen approved this bail-out package, and both Senators Obama and McCain supported it. So if this bail-out makes things worse, both parties will share the blame. When we make our government become the provider for its people, and when we eliminate the risks of capitalism, we abandon the limited government set up by our founding fathers. When a majority of voters transform the federal government into a provider of entitlements, we will have discarded the free enterprise system and embraced socialism. Only if we cut back on the role of government can we rescue our free enterprise system.

Look friends (as Senator McCain would say), the long-term solution to fixing this crisis is to wean our nation from too much reliance on credit; individuals, businesses AND governments need to do this. The stock market crash of 2008 was caused by excessive credit and overly inflated property values. The greed that fed this disaster is not limited to the fat cat executives, but includes all the people who over-extended themselves and bought houses that they could not afford. When the majority of a nation lives beyond its means, financial disaster is bound to strike hard and extensively.

With the establishment of responsible fiscal policies in homes, businesses and governments, we will survive the crash of 2008 and the Bailout law. We must re-establish our economy on principles of fiscal responsibility and hard work. But in our haste to solve the problem, let us not embrace socialism, for this will kill the incentive to be innovative and productive. Remember socialism tends to provide the same benefits for all people, regardless of who works and who produces goods and services. This, in turn, discourages initiative and investment, and tends to drive them overseas—to other economies that do reward them. That is why socialism has consistently failed, wherever it has been practiced. The law of the harvest is the foundation of a strong economy. Socialism is not the law of the harvest. In socialism, the goal is to level the playing field so that everyone reaps what other workers have sewn. Socialism is class warfare that operates through the force of law. Socialism doesn’t trust the people to care for one another. Not only does socialism use force to accomplish its purposes, but it is both inefficient and subject to abuse, as it is administered. That is precisely what happened with the financial failures that hit Fannie Mae and Freddie Mack. When the government went overboard in its goal to provide affordable housing to the poor, it abandoned principles of fiscal soundness and promoted irresponsible programs that (1) extended credit to those who should not have qualified and (2) secured these bad loans with property having grossly inflated values. Again, this is the recipe for financial disaster.

The socialism bailout package that Congress just passed is a mistake; it will only exacerbate our financial problems. We must reverse this socialistic trend by reducing government spending and debt. We cannot continue to increase government spending every time we try to solve economic problems. We must repeal and/or revise laws that are killing our free enterprise system. If we abandon our capitalism/free enterprise system, we will kill capital investment, stifle productivity, and ruin our economy.

Despite the need to curtail government spending, Senator Obama is calling for multiple new entitlement programs to spread the wealth around. Senator McCain, on the other hand, opposes creating new entitlement programs, and he is calling for a freeze on ever-escalating government spending. Senator McCain’s approach would be best for the nation.

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