Showing posts with label redistribution of wealth. Show all posts
Showing posts with label redistribution of wealth. Show all posts

Monday, May 24, 2010

European Socialism, the Darling of the Obama White House, Bankrupting the Euro

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With the near collapse of the Greek economy and subsequent bailout from the EU partners, the IMF (International Monetary Fund) and the US Federal Reserve for a trillion dollars, the nations of Europe might get to catch their collective breath.

If ever there was a need for a clear symbol on what would happen if the Obama redistribution of wealth program got adopted, this is it. Greece goes bankrupt from the deficit burden of the socialist promise of cradle to grave care from the state. Now we find out most of the members of the European Union have far exceeded their allowed deficit and must institute emergency budget cuts.



These are some of the key features of the European style Obamacare being sought by the White House and Democrat controlled Congress.

National Health Insurance
Nationalization of certain insurance, banking and auto industry elements
Nationalization of the housing and commercial mortgage market with Fannie Mae and Freddie Mac already siphoning off over a trillion dollars in taxpayer money
New restrictions on energy industry and increased global warming and environmental pressure
Creation of a futures trading market with Goldman Sachs for industrial carbon credits



There are a lot of other things they want as well but you get the general idea. Obama has often cited the socialized programs of Britain, Germany, Canada, Denmark Norway, Switzerland, Finland and the Netherlands as examples of successful socialized social programs.

For decades demographers and economists warned Europe that social welfare was doomed because of the aging of Europe's baby boomers. With most countries now achieving zero population growth, there are not sufficient youth to pay the cost of benefits to the baby boomers as they retire. Still the social welfare states kept adding to the excessive benefits over the years falling deeper and deeper in debt.



Now the nations of Europe face deep cuts and the first round of cuts came by reducing public payrolls and benefits, the least objectionable. They are not nearly enough to achieve the cuts necessary however so cuts to the social welfare programs are next and they will be painful.

Germany is the financial foundation for Europe and it is facing a $3.75 billion budget cut from it's budget. The only way to achieve it is with cuts to the nation's unemployment program, which just went through difficult cuts 5 years ago. Unemployed people under 50 years of age will get 60% of their last salary before taxes, and the benefit lasts up to a year.



Britain's new government is facing $8.6 billion in cuts mostly to government payrolls. Retirement ages to qualify for state pensions are being raised from 60 to 65 for women, and from 65 to 66 for men. The current system that allows people to remain unemployed indefinitely when not looking for work will change to require people to seek employment.

Funding for Britain's nationalized health program is safe for the time but is scheduled to increase each year until 2015. The current $360 payment to families for every newborn, intended to encourage a higher birth rate but largely unsuccessful throughout Europe will be eliminated and child tax credits reduced.



In France people can now retire at age 60 with 50% of their annual salary. The French intend to raise the retirement age like Britain and are bracing for massive union opposition like occurred in Greece.

Spain is cutting billions of dollars in state salaries next month and the socialist government has frozen increases in pensions for cost of living increases for the next two years. Assistance payments for disabled people is being cut by $375 million, the new baby bonus of $3,124.35 per baby is eliminated and the retirement age for men is being raised from 65 to 67.



Denmark and other Nordic countries have the world's highest taxes and most generous cradle to grave benefits and have moved fastest to address long term needs. As a result they also have the lowest unemployment rates and most generous benefits. Norway, whose benefits are fully funded with oil revenues, has the lowest jobless rate in Europe at 3%.

Southern European countries have the most trouble. In Greece civil servants earning over $3,750 per month will lose two extra months of salary now being paid, one at Christmas and another between Easter and summer vacation. They now have to contribute to pensions for 40 years instead of 37 and early retirement cannot be taken before age 60.



To make their cuts Portugal is raising income, corporate and sales taxes, unemployment benefits will be cut and out-of-work must accept any job that pays 10% more than they earn on unemployment.

German public education, which was free until 2005, now allows tuition fees of up to $1,250 per year. All German students pay no more than that to attend state funded universities, including the most elite schools.



The most expensive and elite universities in Britain like Cambridge, charge $4,720 per year which is far less than the elite USA schools like Harvard that charge $35,000 per year.

These are just some of the problems being faced by the social welfare states of Europe and by the way, yes, through the Federal Reserve we are helping to bail out these countries for their excessive socialist spending. Does Obama really think after we underwrite the bailout of the European socialist nations and their failures in redistributing wealth, will we really have any wealth left to redistribute?

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Friday, August 07, 2009

New Jersey Governor's Race - A Referendum on the Result of the Redistribution of Wealth Obama Style

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In spite of the efforts of Democrats and the White House to downplay it, the governor's race in New Jersey has far more national implications than the media or national pundits want you to know. This race is a public referendum on the results of the redistribution of wealth in America, the centerpiece of what President Obama wants for the nation as a whole.





Some say it is about an unpopular governor, Jon Corzine and widespread corruption in the Democratic party in the state. I spent eight years as a former member of the Governor Tom Kean's administration and it comes as no surprise that corruption remains alive and well in New Jersey. Even though corruption has never thrived like it does today politicians have survived the taint of corruption in the past.

What is the defining issue is the result of years of redistribution of wealth that has driven New Jersey from one of the most prosperous states in the nation to one with the highest taxes in the nation as the state fell deeper and deeper into the control of the advocates of redistributing wealth in accordance with the wishes of the present and former democratic governors of the state.

For a 50 year period until the 1990's New Jersey was the fastest growing state in the northeast as it had been home to the wealthy New Yorker's since the mid 1800's. But in an ominous sign of the practical impact of Obama's redistribution of wealth, the so called hidden socialist agenda, New Jersey has progressed farther left than any state in the union.





As wealth in New Jersey was redistributed by the Democratic party officials and office holders the financial base of the state withered away in response. At the same time the proponents of wealth redistribution became politically entrenched and ignored the economic signs and warnings. Greed and power were cleverly protected from the will of the citizens and people no longer had a role in the future direction of the state.

In a thoughtful and provocative study of the politics of wealth redistribution in New Jersey titled The Mob That Wracked Jersey by Steven Malanga published in The City Journal he documented "How rapacious government withered the Garden State." It is a must read for students, taxpayer victims and even those caught up in the glamour of a program that claims to steal from the rich to help the poor like the Obama gang wants to do. You can read the article at the following link:

http://www.city-journal.org/html/16_2_new_jersey.html

Now the citizens of New Jersey are stuck with a choice of voting for an incumbent whose early endorsement helped Obama get elected, the hand picked and financed candidate for president by Goldman Sachs. An incumbent whose embracing of the Obama redistribution of wealth concept is driving jobs and employers out of the state in record numbers, whose spending and deficits have made Jersey the most taxed state in the nation and whose years at Goldman Sachs are yet to be fully explained.





His Republican opponent is a former US Attorney Chris Christie on the conservative side whose crusade against corruption landed over 100 dirty officials in jail though an anti-corruption platform does not address other major problems facing the state. It remains to be seen how he would undo the politically charged groups that are responsible for the redistribution of wealth debacle that plagues the state.





A third and Independent candidate, Chris Daggett, may be a sleeper in the race as he was a distinguished head of state and federal environmental programs and served under Governor Tom Kean when New Jersey had the most successful environmental agenda in the nation. Daggett is running as an Independent in the first year in our nation's history that there are more registered Independents nationally than members of either major party. He is also the first Independent candidate for governor of New Jersey to succeed in qualifying for state matching funds.

Jersey voters can be quite independent themselves and this time those who believe there is little difference between the two major parties and want a viable choice will have the opportunity to make a statement that neither party represents the future. Perhaps voters have been taken for granted by the politicians for far too long and it is time someone without the baggage of a party platform is given a chance.

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