Skip to main content

California financial woes---is this symptomatic of America's slide into socialism?


Courtesy of Wikipedia





Renowned poet, Maya Angelou , once noted, “History, despite its wrenching pain, cannot be unlived, but if faced with courage, need not be lived again.” History books, replete with stories of the rise and fall of many nations, demonstrate that despite lessons learned, future generations merely cast the past aside, only to revisit the same painful lessons.

In the 1950ties, communism was an ideology that landed many American on either a permanent black-list or in jail. Although previous perceptions of communist infiltration often bordered on paranoia and hyper-vigilance, in contrast, fifty some-odd years later, many U.S. citizens appear completely indifferent to the possible threat of totalitarianism.

Accordingly, communists ascribe that workers unite in a goal to commandeer control of factories and business as a means of redistributing resources among the masses. People who used to privately own land, factories, and other parts of the economy (what socialists and communists call the "means of production") are then forced to share their resources with all people.   

The estimated cost to U.S. taxpayers of paying for just the births to uninsured mothers was $1.7 billion in 2002.   New statistics from the Department of Public Social Services, January 2008, reveal that illegal aliens and their families, in just Los Angeles County alone, collected over $37 million in welfare and food stamp allocations in November 2007 – up $3 million dollars from September.  These figures were announced by Los Angeles County Supervisor Michael D. Antonovich

In 2001, the top 5 percent of taxpayers paid more than one-half (53.3 percent) of all  individual income taxes, but reported roughly one-third (32.0 percent) of income.  The top 1 percent of taxpayers paid 33.9 percent of all individual income taxes in 2001.  This group of taxpayers has paid more than 30 percent of individual income taxes since 1995.  Moreover, since 1990 this group’s tax share has grown faster than their income share.  Taxpayers who rank in the top 50 percent of taxpayers by income pay virtually all individual income taxes.  

Interesting concept, about which most tax-paying American’s are quite oblivious, is the individual income tax is highly progressive – a small group of higher-income taxpayers pay most of the individual income taxes each year. According to the U.S. Office of Public Affairs, in all years since 1990, taxpayers in this group have paid over 90 percent of all individual income taxes.  In 2000 and 2001, this group paid over 96 percent of the total.  Add onto that total, corporate tax and property tax, and sales tax for the top fifty-percent of the nation and the numbers are staggering.

KPMG , a leading accounting firm, found that the United States has the fourth highest corporate income tax rate in the 30-nation study. According to the Organization for Economic Co-operation and Development, combined U.S. federal and average state rate of 40 percent is almost 9 percentage points higher than the average OECD top corporate rate of 31.4 percent; only Belgium, Italy, and Japan have higher rates than that of the United States.

Under a communist regime, workers are united in a goal to commandeer control of factories and business, as a means of redistributing resources among the masses. People who used to privately own land, factories, and other parts of the economy(what socialists and communists call the "means of production") are then forced to share their resources with all people. “As an economic theory, socialism calls for redistribution of wealth through taxation of private wealth, coupled with "progressive" social policy or public ownership of property without compensation to its owners. Wage earners suffer under Socialism, as it is hard to get paid in a system that discourages private persons from accumulating income,” states F.A. Hayek, author of “The Intellectuals and Socialism.”

Talk of socialism, mounting toward a communist regime, may sound bizarre, until we face the fact that our U.S. government has just taken over majority ownership of General Motors. The juxtaposition of emerging capitalist markets against a backdrop of socialist endeavors suggests that government generally comes full circle, much like a dog chasing its own tail. 

In 1965, Congress passed the Medicare Act. In the 20 years before the Act, a one-day stay in the hospital increased threefold. In the 20 years following the passage of the Medicare Act, a one-day stay in a hospital increased eightfold. Full socialism doesn't work, nor does semi-socialism. Government involvement in health care and private industry increases cost, decreases innovation and reduces accessibility.

Great countries have risen and fallen on the sword of “free” rides, while resisting the struggles of free enterprise. Communism and socialism prove, if you feed an animal at the back door every night, he’ll no longer feel the need to hunt. “The Socialists, on the other hand, believe that it is possible to make the transition from capitalism to socialism without a basic change in the character of the state. They hold this view because they do not think of the capitalist state as essentially an institution for the dictatorship of the capitalist class, but rather as a perfectly good piece of machinery which can be used in the interest of whichever class gets command of it. No need, then, for the working class in power to smash the old capitalist state apparatus and set up its own—the march to socialism can be made step by step within the framework of the democratic forms of the capitalist state,” stated renowned Marxist and socialist writers, Huberman and Sweezy, authors of "Introduction to Socialism."

January 2008 information from the Department of Public and Social Services reported that in 2004, between $1.03 trillion and $1.53 trillion was redistributed downward from the two highest income quintiles to the three lowest income quintiles through government taxes and spending policy. Overall, we find that America's lowest-earning one-fifth of households received roughly $8.21 in government spending for each dollar of taxes paid in 2004. Households with middle-incomes received $1.30 per tax dollar, and America's highest-earning households received $0.41. Government spending targeted at the lowest-earning sixty-percent of U.S. households is larger than what they paid in federal, state and local taxes.

Analysis of birth records, published in “National Vital Statistics, Births: Final Data 2002,"  shows that in 2002 almost one in four births in the United States was to an immigrant mother, legal and illegal, the highest level in American history. National Vital Statistics reports that "The enormous number and proportion of children from immigrant families may overwhelm the assimilation process, making it difficult to integrate these new second-generation Americans. At present, the U.S. government automatically gives American citizenship to all people born in the country, even the children of tourists and illegal aliens and someone has to pay for these new “citizens.”

While California issues IOUs to its citizens, for money owed out of its empty coffers, twenty-five percent of all welfare and food stamps benefits are going directly to the children of illegal aliens.

Illegal residents collected over $20 million in welfare assistance for November 2007 and over $16 million in monthly food stamp allocations for a projected annual cost of $444 million.  “This new information shows an alarming increase in the devastating impact illegal immigration continues to have on Los Angeles County taxpayers,” said Antonovich.  “With $220 million for public safety, $400 million for health-care and $444 million in welfare allocations, the total cost of illegal immigrants to County taxpayers far exceeds $1 billion a year – not including the millions of dollars for education.”   

The obvious result of such polices is simply to take from the so-called “rich” or tax-paying citizen and “give to the poor. “ During debates over the recent distribution of tax refunds, redistributing money to those less fortunate, politicians coined this methodology as a “rebate. “You have to be a taxpayer in order to get a tax rebate,” said Representative Paul D. Ryan, Republican of Wisconsin and a member of the House Ways and Means Committee. Politicians look to masses and masses look to politicians to give them what they want.  

History is clear; the first ten amendments to the Constitution were adopted to secure certain common law rights of the people against invasion by the federal government. Thus, it is no coincidence that the danger of run-away spending, at the whim of a voting public, was aptly warned against by such notables as Alexander Tyler in 1871, as “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasurer. From that moment on, the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship.”

Frederick Douglas once wrote of progress, “[i]f there is no struggle there is no progress. Those who profess to favor freedom and yet depreciate agitation...want crops without plowing up the ground; they want rain without thunder and lighting. They want the ocean without the awful roar of its many waters....

Power concedes nothing without a demand. It never did and it never will.” Vast capital markets facilitated by the use of high-speed networks require immediacy in deal-making.  Assets are no longer static holdings, but increasingly fungible streams of free enterprise, driven by insatiable appetites for a return on investment.

Development is housed in high-rise disposable containers of steel and glass.  Real property holdings have become the new fungible asset; a seamless foundation from which world market financiers churn profits-- build-destroy and rebuild. Romantic concepts of small town roadways, byways and historical relics become mere obstacles in a path of progress; hopefully, it is not inalienable property rights which will distort into such relics as merely a distant romantic ideal."


  • MadMommy 5 years ago

    Illegal immigrants want the benefits of citizenship without any of the requirements of becoming a citizen.

    They just want to show up and climb aboard the gravy train.... They're willing to have a baby to get their ticket to ride the train for life, but that's the limit of their commitment to our country.

    They expect all the government forms to be translated to Spanish for them. They expect all the schools to teach their children in Spanish too. Television, magazines and newspapers all are produced in Spanish for them. Advertising agencies just for them. They require grocery stores with only Spanish store signs and music for them.

    They march in our streets waving Mexican flags and demanding the civil rights earned by generations of American citizens.... and they expect every social program that was set up for American citizens to be available to them.

    I think we've already done too much to encourage their presence here, how about you?

  • LJ 5 years ago

    Madmommy, The problem is, we are so busy helping out the rest of the world that we now are jeopardizing our own well-being. What is worse, the rest of the world doesn't really seem to appreciate the assistance.

    With this tough economy, it is time to resurrect the policy, "charity begins at home!"