Niki was right!

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The “quote” from Nikita Khrushchev to the UN on September 29, 1959 is yet again circulating the web and e-mails. Aside from there being no evidence he actually said it, at least not directly (and the banging of his shoe is complete fabrication) I have no doubt the sentiment has always been there. Some reliable evidence suggests his quote was more indirect. In fact, I would suggest it was (and is still) their (Russians in this case) plan A. Plan B (a simultaneous action) being a slow, methodical (but more obvious) military takeover of the world. Plan B is not going quite as well as desired at the moment. Plan A? Well you decide…

For those that remember well all the pontifications about it at the time (no, I was not around!) and remember laughing at what he said… I bet you’re not laughing anymore! At least I HOPE not.

Here is the more reliable “quote” as circulated at the time (and since):

“We cannot expect the Americans to jump from capitalism to Communism, but we can assist their elected leaders in giving Americans small doses of socialism until they suddenly awake to find they have Communism.” – Soviet Leader Nikita Khrushchev, 1959

Personally I think Socialism is worse than Communism but that is for another time.

Now I’m not suggesting any particular politician (I’ll leave it to Nikita to call them “leaders”) were (are?) assisted by Russia. I’m just say’n…

Per the Oxford Dictionary of English, Socialism is: “A political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.” [bold, italics mine] A sub definition [ibid]: “Policy or practice based on the political and economic theory of socialism.” [again, bold, italics, underline mine].

Apparently Bernie Sanders believes we are there. And who am I to argue with a U.S. Senator (at least when they are right).

On the other hand, according to Mises Institute, “Sanders is wrong about the New Deal ‘putting people to work’ since their government-funded activity did nothing to create wealth or end the [D]expression. The Depression lasted until 1945. And the New Deal certainly isn’t ‘the foundation of the middle class’ which grew and thrived in the second half of the 19th century. However, when he classifies the New Deal programs that dominate US policy today as “socialist,” Sanders is absolutely correct.”

It always sounds good on paper, especially when the liberal media adds its two-cents. But it never actually works out that way.

The Mises Institute also states: “To get a sense of what has constituted socialism, historically speaking, it is a mistake to rely on Marxism as the benchmark. Marxism was just one type of socialism in the 19th century, and it failed to gain traction in western Europe. Part of this is because, by the mid-19th century, it was already becoming clear that the predictions of Marxism were wrong. The ownership of capital was not becoming more concentrated. It was becoming more diffuse. The working classes were not descending into a wretched proletariat in western Europe. They were experiencing gains in their standard of living.”

It was for a time also the case on “this side of the pond”; further research showing the application to the U.S. as well. However, we now ARE getting that more concentrated capital (although not to the extent Marx predicted – YET). But the concentration is being caused by the power brokers implementing SOCIALISM, no longer allowing for the diffusion created by CAPITALISM. Why? Well… interestingly enough:

“But socialism isn’t just about cash transfer payment. It’s largely about government regulation, which is where the New Deal was most revolutionary. As political scientist Theda Skocpol pointed out years ago in her research (most especially in her book Protecting Soldiers and Mothers) the US has had “welfare” going back to the 19th century. What was most different about the New Deal — other than its scale — was how it took a largely unregulated economic system and imposed a massive amount of new regulation on property owners in the form of laws related to wages, labor, prices, and more. Arguably, this sort of regulation is far more damaging than mere cash transfers since it directly impedes the creation of wealth before it can even be redistributed.” [ibid]

So, our current state of Socialism? Let’s take a look…
*Medicare, *Medicaid, *Social Security, *Healthcare (ACA as only the latest example), *Public schools funded by the Federal government, *Government college grants, scholarships, and loans, *FDA, *EPA, *HUD, *EBT/ Food stamps, *Minimum wage, *Unemployment insurance, *40-hour work week, *Deposit insurance, *Job programs, *etc. etc. etc. (actually this is just the short list – the VERY short list.)

Hey, what said we combine both redistribution AND massive regulation and see how many lives we can destroy.

Don’t get me wrong. People, from time to time need help. However, I think if we mention that to the “more than 1.5 million nonprofit organizations [that] are registered in the U.S.” [according to the National Center for Charitable Statistics (NCCS)], we might get the problem solved without government involvement (and might I add bureaucratic expense and interference?).

While I completely agree that government has its place, in the United States of America that place is supposedly (used to be) defined by the Constitution. Leaving aside the completely absurd argument that the Preamble defines the responsibilities of the Federal government (i.e., the results of suggesting “…in Order to form a more perfect Union, … promote the general Welfare….” defines ANYTHING the fed is allowed to do), the Constitution defines specific enumerated responsibilities (defined in Section 8 – the remainder primarily defining how it is to do them). Unfortunately, “…promote the general Welfare…”, while intended to explain the WHY of the Federal government vice the WHAT, apparently allows for anything and everything the Federal government wants to force upon us.

Welcome to Socialism. I think we are there. And a sad state of affairs to be sure…

>>> The day is at a close, the night is drawing in and my cigar awaits – ’til next time…

Parable of the Broken Window

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Bastiat’s original parable of the broken window from Ce qu’on voit et ce qu’on ne voit pas [That Which is Seen, and That Which is Not Seen] (1850) – translated by Patrick James Stirling

Have you ever witnessed the anger of the good shopkeeper, James Goodfellow, when his careless son has happened to break a pane of glass? If you have been present at such a scene, you will most assuredly bear witness to the fact that every one of the spectators, were there even thirty of them, by common consent apparently, offered the unfortunate owner this invariable consolation – “It is an ill wind that blows nobody good. Everybody must live, and what would become of the glaziers if panes of glass were never broken?”

Now, this form of condolence contains an entire theory, which it will be well to show up in this simple case, seeing that it is precisely the same as that which, unhappily, regulates the greater part of our economical institutions.

Suppose it cost six francs to repair the damage, and you say that the accident brings six francs to the glazier’s trade – that it encourages that trade to the amount of six francs – I grant it; I have not a word to say against it; you reason justly. The glazier comes, performs his task, receives his six francs, rubs his hands, and, in his heart, blesses the careless child. All this is that which is seen.

But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to break windows, that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, “Stop there! Your theory is confined to that which is seen; it takes no account of that which is not seen.”

It is not seen that as our shopkeeper has spent six francs upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his six francs in some way, which this accident has prevented.

The key here is that each of us only has so much money.  Relative to my post on 31 March 2013 – giving my wife’s money to the Federal Government so they may distribute it at will to whomever they please may sound good on the surface.  All those “poor” people so in “need” of our help. However, this creates problems on two fronts.  One, we have less money to give to charities of OUR choice.  Individuals that would benefit from our contributions must now look elsewhere – the consequence therefrom means there are even MORE people that look to the government for assistance.  This is not to mention the expensive bureaucracy created to redistribute all this wealth.  Bureaucracies without which most charities seem to be able to operate just fine.  Second, we have less to spend on those things WE may need or want.  Lacking things we need creates problems for others (grocers, power company employees, etc.), but even more of a problem for us (food, water, lights, heat, etc. are important to us… go figure).  Lacking those things we want creates problems for others as well.  Just as in the parable above, the six francs that went to the glazier are six francs we cannot give to the carpenter for a new chair or table, or the shopkeeper for a new lamp or television or whatnot.  I don’t care if it is of the yacht builder we speak.  Billionaires that own yachts contribute significantly to the economy.  Yachts are expensive to buy (not to mention to operate).  Consider all those men and women that build and operate yachts and support systems therefore, they have families too!

I could go on and on about this concern.  Suffice it to say, from a total economic picture, money is NOT limited (as some would have you believe).  Yet, on an individual level it is.  The more government takes from its people the less they have to support their fellow citizens.  Allowing us to spend according to our individual need/want creates an economy that will support all.  Taking and creating a dependent underclass only depresses the economy and our country that much further.  It is your choice.  Consider it next time you have a decision to make regarding who will run your country.

>>> The day is at a close, the night is drawing in and my cigar awaits – ’til next time…