So Glad We Are Becoming A European Socialist State

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Joblessness in the socialist EU among 17 countries has hit its highest level since before the euro was introduced in 1999. It is averaging 10.4%.

There is a gap between the wealthy countries and the poor in the EU. While Germany, Austria and the Netherlands have low unemployment (4% – 6%), unemployment in Spain is at 22.9% and in Greece, joblessness is at 19.2%. Unemployment reached 13.6% in Portugal in 2011. So much for collectivism.

Especially alarming is the dangerously high unemployment among the youth. In Spain, half of the youths are unemployed. Read more: Reuters

We have a serious problem of youth unemployment in the United States, particularly among minorities. It won’t end well if things don’t change.

The EU situation is similar to ours. We are all using the same failed policies that Japan has used unsuccessfully for the last dozen or so years. We keep printing money, raising taxes, increasing regulations, adding to the debt and deficit, and providing endless bailouts.

We are growing the government so that business can only survive by forming an unholy alliance with D.C.

And what about those bailouts, huh? The United States didn’t bailout on a one time only basis. We are on the hook for the bailouts for years to come. The United States sold out the next generation.

We are still owed $132.9 billion from the financial bailout. GM likes to claim they paid us back but it’s a lie. In fact, we grossly overpaid for the company when we bought into it. It was never worth the $55 a share we paid and it still isn’t – it was worth $24 yesterday. Therefore, we can’t sell our shares, certainly not in an election year.

Then there is AIG, the banks…the list goes on and on –

WASHINGTON (AP) — A government watchdog says U.S. taxpayers are still owed $132.9 billion that companies haven’t repaid from the financial bailout, and some of that will never be recovered.

The bailout launched at the height of the financial crisis in September 2008 will continue to exist for years, says a report issued Thursday by Christy Romero, the acting special inspector general for the $700 billion bailout. Some bailout programs, such as the effort to help homeowners avoid foreclosure by reducing mortgage payments, will last as late as 2017, costing the government an additional $51 billion or so…

…It will also be challenging for the government to get out of the 458 companies as the market remains volatile and banks struggle keep afloat in the tough economy, it says. Read more: Newsday via AP

Bankrupt companies are still paying off their CEO’s with hefty bonuses despite all the government intervention and their boasts of their increased regulations.

The WSJ reported on it this last Friday. The companies cited by the WSJ did emerge from bankruptcy and the statements from the companies say that these bonuses make sense to help facilitate emergence from bankruptcy. THEY DON’T MAKE ANY SENSE TO ME.

Paying for failure hardly seems fair to shareholders and rather than call it capitalism, cronyism sounds a more apt descriptor. It is not free enterprise when corporations, big political donors by the way, are cheating shareholders by rewarding failure while negatively impacting the stock market.

We have all these little corporate kingdoms in bed with D.C. who are bleeding the economy dry.

Let us not forget the subsidized companies – all those Solyndras. It is not so much their failure we should be concerned about as the fact that we are subsidizing them in the first place.

Remember the Tonopah Solar company in Reid’s Nevada and the $737 million loan they received from the Obama DOE?  The project will produce 110 megawatts of power (not much – typical power plant is 450 megawatts) and it will employ 45 permanent workers. That is $16 million a job and I think taxpayer money could be better spent paying off the debt. However, that’s not the real story.

The real story is that one of the investors is Pacific Corporate Group and it’s executive director is Ron Pelosi, Nancy Pelosi’s brother-in-law. That would be the Nancy Pelosi of insider trading fame. Ron Pelosi is also the uncle of California’s Lt. Governor Calvin Newsome.

We need to get away from the notion that crony capitalism has anything to do with free markets or real capitalism. It’s a variation of socialism where the wealth is shared among the “chosen.”

Crony capitalism describes an economy in which business succeeds based on the closeness of business people and government officials – favoritism, special breaks, etc. When political cronyism enters the business world, the self-serving relationships corrupt the public-serving economic and political ideals.

Socialism allows the political sector to have too powerful an influence over the economy as compared with a free-market system where the government is small and there is less opportunity for business to seek political favors. The larger the government budget and the more economy is regulated, the more opportunities for cronyism exists.

We have reached that point.

It’s not regulations that are needed, it’s less government intrusion.

Market socialism and crony capitalism, as we see them operating today, are basically the same.

 

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