Socialist Capitalism

Oxymoron? Maybe, but a very good way to describe the state of the American economy version 2008/09. So what does that mean and how does it work and is it bad or good or what. Well, let me tell you, if you are one of the big boys, running big companies, banks or funds there is no better way to have it. If you're a regular American citizen, which 99.9% of us are, this is a bad deal.

I'm sure you know where I'm going with this. Capitalism has underlying principles of competition and free markets, that lead to constant innovation, development, growth, improvements, increased productivity or a failure. Failure is part of the game, survival of the fittest product would be a good way to describe it as this is what capitalism is all about. And failure is what's missing in the Socialist Capitalism. The government has decided that it is ok to use the taxpayers' money for ubiquitous now bail-outs of big companies, banks, money market funds, car makers, you name it. Basically if you operate one of those outfits, you are failure-proof, courtesy of my paycheck tax deduction.

Giving money to GM and the likes to keep them afloat is ridiculous. Those behemoths are too big, filled with stale business strategies and all out of fresh ideas to keep their business running. They need to file for bankruptcy and start anew with different management and a new direction for how to run an auto business in 21 century. Loss of jobs is used as a reason to keep them going and giving them more cash, but it only delays the inevitable. Jobs will be lost regardless of how much cash is piled into a business that is losing money.

Socialist Capitalism is redistribution of taxpayers wealth between big business. And I'm not even going to start with the irony of Republicans' love for big business and hate for anything that has the word social in it.

A question that comes to mind is — how are we being sold on this? Answer is simple and elegant as ever — fear. Scare tactics, use of words like Fail, Recession, Great Depression, Unemployment, Inflation, Deflation, Foreclosures, all those make people buy into the program and not even ask for the receipt. It's the same fear that changes or keeps powers in government. Republicans stayed in office for 8 years by selling American people fear of terrorism. Democrats have just successfully sold the voters on fear of our economy going down the tubes. Why is it, you think, we now have the Dow ticker on CNN screen 24 hours a day? Did everyone just turn into an investor? Markets are volatile and go up and down, it's normal. Regular folk shouldn't think or worry about that, yet it's a great tool to make people constantly nervous. Just like that threat level that W used to keep people in check.

It's very simple, people vote and choose with their primal instincts. With their heart. People want to be safe and comfortable, they don't like being scared, and if they have to pay for it, they will pay. And the big guys will keep collecting their bonuses for making failed products.