Now, with everything I have said about socialism and about liberalism I will only add that our nation is in a fiscal crisis at this time. And when I speak of this I speak of more than our national government. I speak of our State and local governments as well. The debt that these governments have accumulated stagger the mind and politicians are now beginning to understand that they need to get it under control.
Sitting back and watching them struggle with this problem is interesting. We see all kinds of solutions put forth. We see those governments controlled by the left address it from a revenue point of view and those governments that are controlled by the right trying to deal with it from the expenses point of view. Then there are those who are attempting to use both. Which faction will succeed is anybody’s guess.
You can see this same situation on the international scene also. Whole nations, like Greece, seeking a bailout from other nations. And the bailout nations like Germany demanding that Greece address the problem by cutting expenses. Many other nations are facing this same dilemma. France is talking about placing a 75% income tax on some of their citizens.
I will go even farther by asking if it is possible to succeed anymore? Has anyone ever sat down and figured out just how long it would take to pay down the 16 trillion dollar debt of the U.S. national government? Regardless of how you approach this problem all of the people are going to feel the effects in a very real and a very harsh way. Even if you passed a law holding expenses at its present level and raised revenues each year by 10% it still would take generations to pay off the debt. In fact, it would take generations just to get that debt down to a manageable amount in my opinion.
And the thing is we are not even talking of nations that can be said as totally socialistic. We are speaking of nations that believed that socialistic solutions could be used to solve the perceived problems of a Capitalistic society. We are speaking of nations that attempted to augment an recognized imperfect system with programs of another historically recognized failed system with the idea that doing so would result in a more perfect system.
Any unbiased scientist would have to come to the conclusion that this experiment of a mixed society has resulted in a failed experiment. A good scientist would have to come to a conclusion that we live in an universe governed by natural laws. A good scientist would have to come to the conclusion that man cannot bend or break those laws to fit his own philosophy of how life should be.
People need to realize that to be successful in fiscal matters one needs to have control over revenues or over expenses. One or the other is always determined for you regardless if you are a government, business or just a person or family. The nature of economics declares that revenues are always determined for you. That only leaves expenses that are controllable. The problem is that in a socialistic form of an economy expenses are also determined.
Debt is the determinant factor of whether or not you have expenses under control. Lack of control over expenses will always lead to bankruptcy. In a socialistic society bankruptcy will ever be the end result. That is the economic reality of any society.
The idea of a society succeeding in any form of the liberal or socialist mindset is an economic impossibility. The laws of the nature of life will never allow it. And those laws were determined for us. We can only choose whether or not to live in accordance to them. Failure is guaranteed either way. The only difference is the scale of the failures. Only the opportunity to succeed exists. Whether or not a person accepts the opportunities that come his way is up to him.
We haven’t gotten to the point of no return yet but we are close. We as a nation are going to have to make some hard decisions sooner or later and those decisions are going to hurt. It is just a matter of whether we are strong enough to make those decisions and spare future generations of the pain or whether we are to be seen as cowards and leave those hard decisions up to future generations. Either we make those decisions voluntarily or the laws of life and economics will force us to make them. See me for the fool that I am but of this I have no doubts.