Socialism For The Rich, Free Markets For The Poor

 

These are not my words.  They were the words of Adrian Woodridge of The Economist on “Fareed Zakaria GPS”, broadcast on CNN.  John Médaille has written a similar post on his blog < http://distributism.blogspot.com/2007/08/socialism-for-rich-capitalism-for-rest.html>. There was a commentary in a Los Angles Time blog and another at alternet.org. <http://www.alternet.org/story/92426/the_u.s._economy_is_socialism_for_the_rich/>They are so very true.

 

The George W. Bush administration has done an outstanding job of giving breaks to the rich at the expense of the rest. 

 

The most glaring example is the income taxes paid by the wealthy of Wall Street (or wherever they live).  These people receive their pay in the form of capital gains <

http://whippersnapper.wordpress.com/2008/05/11/capital-gains-facts/ >.  Capital gains are taxed at 15%.  The consequence is that a couple earning $100,000 per year as the result of wages pays taxes at the 25% rate.  That same couple earning their income from capital gains pays 15%.

 

From the Citizens for Tax Justice:

• In 2005, the wealthiest 1 percent of Americans received almost 70 percent of all long-term capital gains—and paid 72 percent of the tax on these capital gains.

 

• The wealthiest 10 percent of taxpayers enjoyed 90 percent of the capital gains eligible for this special tax break.

 

• The poorest sixty percent of Americans, by contrast, collectively received just 2 percent of the capital gains eligible for the lower capital gains rates.

 

 

This situation is nothing compared to the bail out of big corporations.  Bear Sterns is the best example of an action by the government to protect all of us less fortunate.  Freddie Mac and Fannie Mae might well be saved by the government buying stock in those companies.  In all three of these instances it was the Federal Reserve and the Treasury Department contending that they are saving home owners and other small investors from a crisis that will make their actions seem well worthwhile.  There has been talk of saving General Motors and/or Ford if the U.S. government finds it necessary.

 

Then there are the federal subsidies.  The U.S, government subsidizes many industries.  Farming is one of the oldest.  The government subsidizes corporate farmers as well family farms. There are subsidies going to oil companies for adding ethanol to gasoline and the latest are the subsidies for renewable energy.  I once worked for a company that manufactured solar panels and they received a federal subsidy.

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Feb 7,2011

Another blog on the same subject

http://distributism.blogspot.com/2007/08/socialism-for-rich-capitalism-for-rest.html 

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The answer is a new kind of federal government that really does concern itself with the rest of us.  The problem is that most Americans believe in their government.  They believe the U.S. government can do no wrong.  That is probably the reason that John McCain will be elected president.  He seems like one of us.  He seems like a good guy.   He has government experience too.