Saturday, April 13, 2019

US Capitalism vs Socialism


A clear view of history, economics and human behavior reveals best practices versus sure-fire disasters in government. Democracies failed when freedom, property rights and individual self-support gave way to forced communitarianism and “free stuff”. Dictatorship took over and dissolved for lack of cash. The end of these “democracies” results in famine, death and human misery.

The Founders knew that government must be prohibited from the kind of overreach that results in sovereign bankruptcy. They codified their limited government in the US Constitution and over the years we ignored these limits. The Founders were clear in their warnings.

The US was established as a meritocracy where individuals and families were free to own their businesses.  Families had clear property rights and government was established to protect these rights. Government established laws to allow individual merit to determine individual and family prosperity. Families were free to help each other, but were not forced to do so.

Local governments immediately sought to support commerce with roads to get goods to market. The connection between industries and legislatures was immediate.  Protections for individuals and families had already been established and voters supported government interest in improving commerce.

The US made the transition from home-based to factory-based manufacturing in the Industrial Revolution and established railroads, bridges and canals from 1820 to 1900. Government revenue was limited to tariffs and fees. There were no taxes on corporate revenue or individual incomes. Based on the meritocracy model, individuals and families earned great wealth.

The Communist Manifesto published by Karl Marx in 1848 shined a spotlight in the plight of the worker during the industrial revolution. Business owners were busy inventing tools and processes to improve yields. Many jobs were dangerous and wages were based on supply and demand. Labor was a commodity. Unions formed and legislatures responded to worker rights issues.

In 1913, government ended property rights and ended the meritocracy. Income and inheritance taxes were imposed and incentives were destroyed. Technology was being developed by industries to reduce workplace deaths, but illness due to years of exposure to harmful substances required decades to determine. Politicians took advantage of this and went for a power grab.

The US illegally implemented unconstitutional socialist policies starting in 1872. The World Wars in 1914 and 1941 further consolidated power to the federal government.

Common sense tells us that we as individuals are primarily responsible for our own health, education, occupational choices and defense. Government has usurped these responsibilities and now these needs are no longer controlled by the laws of supply and demand. Consumers do not control the prices and current costs are unsustainable.
The 2020 elections will determine if the US will reverse socialist systems or double down to become Venezuela.

Norb Leahy, Dunwoody GA Tea Party Leader

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