The “benefits” of socialism.


Bernie likes to use the northern European nations as examples of “Democratic” Socialism – emphasis on “Democratic” in his speeches, but “socialism” in reality. Interestingly, he fails to mention the many other “Democratic Socialist” states that are basket cases.

These nations are never held up for scrutiny of the “dividends” of socialism. Why, is that, ask you? Because answer I, these nations are left with large and growing populations of have-nots who constantly demand more – when there is no “more” to be had – and refuse to step back from their desire to maintain their “free stuff” — their nation be damned! (Not very “altruistic” – I guess they didn’t get the memo about the socialists’ requirement to be  “altruistic!”) Republican candidates need to talk about Italy, Greece, Portugal, Spain, Argentina, Brazil, Cuba, Venezuela and other socialist, populist, egalitarian “paradises” every time Bernie mentions Denmark – not that Denmarkk is doing so well.

Italy, Greece, Portugal, Spain, Argentina, Brazil, Cuba, Venezuela provided oodles, scads, slathers, and slews of free stuff. Today they are basket cases. They struggle with anemic growth, recession and bankruptcy. Their government bonds have turned to “junk” that no sane investor wants.

[Source: Needed: Economic Literacy 101, by Paul Driessen]

Today, 59% of young Greeks are unemployed. Youth unemployment is 56% in Spain, 42% in Italy, 38% in Portugal. In Brazil, electricity rates soared 51% last year, food prices rose 15% and overall inflation stood at 11% – a vast improvement over its 5000% annual inflation rate (!) in the early 1990s but still awful. In all of Latin America, only Argentina at 27% and Venezuela at 200% had worse inflation.

Millennials are now the largest voting block in the US — outstripping the vaunted “baby boomers.” They surely like the idea of free tuition (currently > $1 trillion in student loan debt). But, let’s look backwards instead of forwards at “free tuition.” City University of New York had that for a while, until 1976, when it ran out of money and the city nearly went bankrupt. Sanders plan would cost $750 billion over ten years. Today, we talk trillions, but 750 billion is still quite a lot of money. A number of states have also tried “free tuition” to college. The results leave much to be desired (particular attention to Louisiana).

Let’s do some simple arithmetic. In total, there are 171.3 million individuals and married couples in the USA — or tax units, as they are defined by the Tax Policy Center. Bernie is after the top 1% in his speeches, but let’s say that he plans to plunder the top ten percent in reality – that equals 17.13 million “tax units.” That means the top 10% of tax units must cough up an additional $438,000 each over the next ten years, or $43,800 per year. The top ten percent of “tax units” earn an average income of $140,000 – not bad.

Screen Shot 2016-02-27 at 7.51.39 AM

However, The top 10 percent of income earners already pay 68 percent of all federal income taxes. But let’s look at the dollars. The chart above shows that the average-top-ten-percenter currently pays $29, 353 in federal taxes. Just to pay for the “free tuition” (forget the other freebees) would add an additional tax burden of $43,800. ($29,353 + $43, 800 = $73, 153). Toss in the additional $19,490 for state income tax (I’m a Californian), Social Security, and Medicare and the total rises to $92,643 (66.2% of total income). And, of course, that doesn’t include property tax, sales tax, fees and licenses. Would you go to work the next day?

Does anyone believe that even Bernie Sanders could push that through Congress. Let’s be serious millennials. It’s never going to happen.

Roy Filly

Advertisements

About Roy Filly

Please read my first blog in which I describe myself and my goals.
This entry was posted in Uncategorized. Bookmark the permalink.

2 Responses to The “benefits” of socialism.

  1. michael bucalo says:

    Hey fellow—- how about a little common sense about this topic? Those northern European countries sited are low in population, have a homogeneous culture, common goals by living in a very hostile environment where collectivism is required to survive the elements. There are no low bearing fruit to pluck from the tree. I traveled through Sweden, Norway, and Finland many times. They are all homogeneous countries with low populations under 10 million– Sweden. about 6 M, Norway, the same, and Finland about 4M. They are so homogeneous that the gene pool expresses rare genetic defects that could only exist with intermarrying of familial populations. That which applies to a homogeneous population living together as a team in a very hostile environment hardly applies to a country of 325 M of very diverse cultures but with one cultural monistic goal. Individualism not collectivism.

    By and large every immigrant who came here left a collectivistic society to be free. Free to work hard and receive just awards. Free of continual government intervention such as trivial EPA laws, endless regulations,onerous taxation that discourage entrepreneurs from creating new technologies such as medical advances, computerization, and other world altering innovations. These immigrants came here so they could to take responsibility for their own actions and not look at the government as Santa Claus. Free to practice their religion, free to bear arms, and most importantly free to receive quid pro quo benefits for hard work or for not working. The goal of everyone getting the same outputs regardless of their input runs counter to human nature and certainly our ancester immigrants. If they wanted socialism, they would have stayed where they were.

    My thoughts to Bernie Sanders are his tenets would work well on a Kubutz in Israel– a cooperative in a hostile environment. But even here, he would find it difficult to preach his income equality nonsense. Ask Mr. Sanders how the government is to continue to be Santa Claus,{ and this is a benevalent analogy in that it would more likely morph to a Stalinistic or neo Natzi comparison over time) when everyone’s disposable money runs out?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s