by Karl Denninger, Market Ticker:
Cut the crap folks.
America is a Socialist Nation right now.
What is “socialism”? It is a political system in which government owns or regulates the means of production and distribution of goods and services.
This in turn means that one may receive without producing as the community dictates collectively, and one is obligated to produce without receiving, or will receive only as the community dictates collectively.
he simplest means of determining whether or not a government is in fact socialist is whether government employees receive, on a like-for-like basis for their labor, greater or lesser total compensation than private sector employees.
Because a government employee is employed at the pleasure of the collective population, and not market forces. Therefore their risk of becoming unemployed is always lower than someone with a similar job function in the private sector.
If, in aggregate, said employees at a local, state or federal level have a higher total compensation then the government is socialist since in a market economy this is impossible; one’s compensation includes the risk of losing one’s job.
With all other things being equal therefore in a market economy government always pays less.
Incidentally socialism always collapses because when someone receives without working someone else must work without receiving. But you can’t force the latter person to do actually do so at anything approaching their ability. They can and will either “slow walk” production or simply quit and choose to receive without working.
This is the lesson of history and it happens every time.
We have six years, at best, before the downward spiral occurs right here. Once it gathers that amount of speed it will be nearly impossible to stop except by extreme violence.
In other words grow a set now or consign our nation to the status of Venezuela.