The Inevitable Collapse of the United States Economy

Like many proponents of the Austrian School of Economics, I am pessimistic about the economic future of the US. I believe that we are paving the road for our own demise. I hope people begin to pay attention, because it's your future that's at stake here: that of you and your family. I'll be discussing my economic theory, and will be quoting heavily from Peter Schiff's Crash Proof (Henceforth denoted with "Schiff") along with many other sources.

The Problem

First off, what's the problem with the American economic system? Well, I'm sure most people have heard about our soaring national debt, inflationary policies of the Federal Reserve, and adherence to failed economic theories. As I write this, our current national debt is $12.5 trillion ... Which amounts to $40.6k per US citizen. Counting social security, medicare, medicaid, and other unfunded government liabilities, our debt is estimated at or above $60 trillion. This debt is unsustainable. If we are unable to quickly turn things around and cut federal spending.. We will suffer a depression the likes of which haven't been witnessed in 70 years. Why would anyone hold US treasuries or dollars? Why do you think China will continue to buy our debt?

One reason our deficit is so high, is that we have a trade deficit. Each year, we export wealth to India, China, Japan.. We simply aren't producing in this country.

The popular notion that in the postindustrial service economy money-valued services are an acceptable substitute for goods because both generate money ignores the distinction between money and wealth. Money is a medium of exchange. Wealth is what is received in that exchange. (Schiff, 10)

People seem to think China will suffer the most from selling US treasuries, which consequently devalues the dollar. This theory is far from the truth. To illustrate a parallel, I'll quote one of Peter Schiff's brilliant analogies (Schiff, 14):

Let's suppose six castaways are stranded on a desert island, five Asians and one American. Their problem is hunger. So they sit down and divide labor as follows: One Asian will do the hunting, another will fish, the third will scrounge for vegetation, the fourth will cook dinner, and the fifth will gather firewood and tend to the fire. The sixth, the American, is given the job of eating.

So five Asians work all day to feed one American, who spends his day sunning himself on the beach. The American is employed in the equivalent of the service sector, operating a tanning salon that has one customer: himself. At the end of the day, the five Asians present a painstakingly prepared feast to the American, who sits at the head of a special table built by the Asians specifically for this purpose.

Now the American is practical enough to know that if the Asians are going to continue providing banquets they must also be fed, so he allows them just enough scraps from his table to sustain them for the following day's labor.

Modern-day economists would have you look at the situation just described and believe that the American is the lone engine of growth driving the island's economy; that without the American and his ravenous appetite, the Asians on the island would all be unemployed.

The Asians, and Chinese in particular, would benefit from our demise. As a nation of purely services, we basically exchange services among ourselves (Hence, the American is a customer of himself). The few things we export are easily overtaken by our vast imports. The manufacturing and exporting of Televisions, gaming systems, computer systems, building materials, food, etc... actually involve the exchange of wealth. We are exporting wealth to other nations as we sit on our asses and enjoy their toils. This can't last for long.

My favorite of Schiff's analogies is the "Tale of Two farmers". It's long, so I'm simply going to paraphrase (Schiff, 21-23):

There are two farmers: Chang and Jones. Chang grows only oranges and Jones grows only apples. Each grows only the fruit he produces most efficiently, trading his surplus for the fruit grown by the other. Obviously, this free trade allows both farmers to benefit. They can eat both apples and oranges simply via bartering. Anyway, this process continues for many years until a flood wipes out Farmer Jones' apple crop. Jones proposes that Chang sell him oranges in exchange for IOUs and 10 percent interest in apples for the next year. Since Jones has efficiently grown apples in the past, Chang accepts (Jones has a great credit rating ;-)). Note that the IOUs are a promise to pay, similar to treasury bonds, and do not possess any intrinsic value themselves. Payment cannot actually be made until the next year when Farmer Jones redeems his notes by giving Chang all the apples his IOUs obligate him to pay. Only then can the notes be retired and the transaction completed.

Now, assume similar natural disasters plaque Jones for several more years, and he and Chang make the same agreement each year. Suddenly, Farmer Jones realizes he's eating well without actually farming. He can import oranges without working, and without exporting any apples. He therefore decides to turn his apple orchard into a golf course, and simply play golf all day while enjoying Farmer Jones' oranges. In other words, Farmer Jones now operates as a service economy. (He, representing a single country, is primarily a service economy-- and exchanges services within the country-himself.)

Farmer Chang, by contrast, is so busy growing all those oranges that he never gets a chance to play Farmer Jones' course. In fact, he has been accepting IOUs for so long, he no longer remembers his original reason for doing so. Though, knowing no other life style, he is content. Chang now counts his wealth based solely on his accumulation of Farmer Jones' IOUs. Since Farmer Jones has such a good reputation among all the other farmers (credit rating), Farmer Chang is able to exchange those IOUs for the goods and services of other farmers. However, as a result of Farmer Jones' good reputation, no one notices that his apple orchard has been turned into a golf course. His IOUs are essentially worthless since he no longer possesses the ability to redeem them with actual apples.

Some might argue that the entire community now depends on Farmer Jones and his worthless IOUs, and that Farmer Chang and the others will simply accept them indefinitely to avoid acknowledging the reality of their folly. Of course, were these revelations to occur, the unfortunate holders of Farmer Jones' IOUs would officially be forced to realize their losses. However, their true financial situations would improve, as any future accumulation of worthless IOUs would end. As for farmer Jones, without a viable apple orchard or the ability to buy oranges on credit, he would starve. It would take years to transform his golf course back into an orchard, and regain his knowledge of farming, and replace his obsolete and dilapidated farming equipment (IE transformation of a services economy back to an industrial one). In the end, Farmer Jones' only alternative might be to sell his golf course to Farmer Chang and take a job picking fruit in his orange grove.

What a wonderful analogy, no? He writes them much better than I.

Finding the Source of the Problem

Where can the beginning of the demise of our economy be traced back to? 2000? It's all George Bush's fault, right? To the contrary, FDR and his socialist policies wrecked havoc on the Free Market system. The eventualities of social security, medicare, and medicaid plague our current financial system with enormous cost.

But, that's another issue. I'm mainly looking at the creation of the Federal Reserve in 1913 and the replacement of the gold standard for Federal Reserve Notes and a fiat monetary system. Since the Federal Reserve Act of 1913, the purchasing power of the US dollar has fallen by 95.41% (the data can be found all over the web):

• US Dollar Purchasing Power


• The Long Goodbye: The Declining Purchasing Power of the Dollar


• US Inflation Calculator

You heard me correctly: 95%!! If you had taken $100 and buried it in your backyard in 1913.. You'd uncover that 2088% inflation made that $100 equivalent to about $4.57 of today. Or, in other terms, an item in 1913 costing $100 would cost you $2,188.76 in 2010.

The US was on track to recovery after the market crash of 1929 (Another Great Depression? By Thomas Sowell)

The Vedder and Gallaway statistics allow us to follow unemployment month by month. They put the unemployment rate at 5 percent in November 1929, a month after the stock market crash. It hit 9 percent in December-- but then began a generally downward trend, subsiding to 6.3 percent in June 1930.

That was when the Smoot-Hawley tariffs were passed, against the advice of economists across the country, who warned of dire consequences.

Five months after the Smoot-Hawley tariffs, the unemployment rate hit double digits for the first time in the 1930s.

This was more than a year after the stock market crash. Moreover, the unemployment rate rose to even higher levels under both Presidents Herbert Hoover and Franklin D. Roosevelt, both of whom intervened in the economy on an unprecedented scale.

My point being, the recovery was abruptly halted when FDR made it illegal for US citizens to own gold.. He essentially repealed the gold standard in place of a fiat currency.. A currency that the government could control through the federal reserve, and thus, "tax" the people through inflation.

Since then, the value of our currency has plummeted as the Federal Reserve has devalued our currency. There's no doubt the government is doing much more harm than good. The only solution is to replace Federal Reserve notes with something that actually has intrinsic value.. Something that all people agree has value.. something that will NOT diminish nor fall to control of government. IE) Gold.

The bottom line is that rather than representing legitimate IOUs redeemable in specified weights of gold or silver, US Federal Reserve notes became IOU nothings, mere pieces of paper that bearers were free to circulate themselves, but which did not constitute any liability on the part of the issuer.

What that meant was that any value the dollar had would depend purely on its purchasing power, which in turn would depend on the financial strength of the US economy and how the supply of dollars was regulated. (Schiff, 54)

That pretty much sums up the extent of government involvement, and its destructive power over our economy. Through regulation via the Federal Reserve, the US government is able to control inflation, and dwindle the purchasing power of the dollar. All for what, you ask? Why, simple. When the dollar loses value, the interest and payments made on bonds and other government loans are also much less. In a way, the government is able to tax its people through this tricky tactic. The people are not even aware that their dollars are losing value, and that the money paid through bonds and other securities may actually place the investor at a loss due to high inflation.

The CPI and government numbers are actually quite inaccurate, so your loss may even be more than if you calculated using CPI numbers. In any case, we're delving heavily into economics.. From here, I suggest you pick up Peter Schiff's "Crash Proof", read up on the Austrian school of economics, or other means of self-education. The concepts of macroeconomics, including inflation, the business cycle, the gold standard and fiat currencies are too complex to adequately discuss here, and this post has gotten long enough already. Perhaps at a later time :-)

A Few Words on Keynesianism

Before I leave you to wander the interwebz in search of Peter Schiff and Ron Paul videos, I'd like to touch on another root cause of our current dilemma: You.

The Keynesian ideas of spend, spend, spend are greatly flawed. Savings is truly key. The invention of consumer credit has greatly hampered our economy. Previous generations lived below their means, saving wealth for retirement or the occasional big purchase. I believe government involvement and especially social security have given people a false sense of security.

Now, people are taking out second and third mortgages, ramping up thousands of credit card debt, and essentially spending well above their means. The purpose of credit was to make an investment that you believed would net you a nice return. People and businesses took out loans and used money they did not currently possess to make investments that were thought to earn them enough money to pay off the original loan and interest, as well as plenty for their own profits. IE) College education, purchase of capital goods-- Say, stoves for cooking companies, renovation, etc.. were all investments in which a return was anticipated. Nowadays people take out loans to buy cars when they have perfectly functional vehicles.. Purchase big screen TVs and gaming systems to keep up with the Joneses.

You see, when you make those "investments", you end up paying more for those purchases through interest. Sometimes, a whole lot more. So, why not be patient and buy the item when you can afford it? You end up paying much more for it, just to have it sooner. This overspending cannot be sustained. Eventually, like in the housing crisis, something you depend on for income will vanish. Then what?

What happens if there's a natural disaster or some other emergency? Whatever happened to saving for a rainy day? Savings, and the wealth accumulated through interest paid to you through investments (stocks, bonds, etc..) will result in much higher gross wealth than those who overspend. Blessed are those who are thrifty and live at or below their means :) These people are predominantly those in Asia. Their patience will be rewarded. Our demise is their resurrection.

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The Time is Now!

If we don't take some drastic measures now, then we are doomed. The world reserve currency status is the ONLY thing keeping us alive at the moment. As previously discussed, our overspending and high debt will eventually lead to other banks and countries to dump the dollar for something more credit-worthy. Federal Reserve notes are nothing but fiat currency, essentially dependent on the growth and prosperity of the United States.

But, if we cannot recover from our deficits, we will no longer be prosperous, or have a perfect credit rating. The dollar will fall... And I'm not talking 5-6%, I'm talking hyperinflation. Why would anyone own Federal Reserve notes when the US economy isn't even producing anything? Our golfing has run its course.

Again, we are saved by one thing: World Reserve Currency status. Other national banks are required to keep dollars on hand to trade in commodities. This creates artificial demand for the dollar -- a demand that would not otherwise exist. Hence, as long as other countries accept this and want dollars, we will be fine.

However, I would not count on sheer ignorance for long. We will eventually be found out, and the dollar will fall. Your investments, retirement plans, and life savings will be worth nothing. The only true hedge is to invest in gold, silver, or some other precious metal-- Something of intrinsic value. Once the shit hits the fan, gold will appear to skyrocket relative to the dollar (I like to think of gold as the standard, and any movement of the price of gold in dollars as movement of the dollar. The price of gold is fairly stable.).

And my favorite video of all time. A clever "rap" pitting Hayek and the Austrian school of economics up against Keynes and Keynesian economics. Enjoy :)

(Original Publication: Pedbsktbll; Edited by: HPB)

Health Care: Right or Privilege?

Since the Health Care bill has passed both houses of legislature, and the draft of the final bill for Obama to sign is in the making... I wanted to comment on the significance of its passage.

Over the months, I've stressed my many reasons as for why I believe this bill is despicable-- The horrid service it will bring, the inexplicable tax burden on most Americans, its social injustice and direct attacks on freedom, etc.. However, one key issue is always overlooked.

Often, you hear people debate whether or not health care is a right or a privilege; Despite the claim that this is only a moot point, I seek to argue that it is not, and in fact, this is the best argument against the future health care system.

I wish to quote a passage from a popular 20th century novel, "Atlas Shrugged":

"Do you know what it takes to perform a brain operation? Do you know the kind of skill it demands, and the years of passionate, merciless, excruciating devotion that go to acquire that skill? That was what I would not place at the disposal of men whose sole qualification to rule me was their capacity to spout the fraudulent generalities that got them elected to the privilege of enforcing their wishes at the point of a gun. I would not let them dictate the purpose for which my years of study had been spent, or the conditions of my work, or my choice of patients, or the amount of my reward. I observed that in all the discussions that preceded the enslavement of medicine, men discussed everything-- except the desires of the doctors. Men considered only the 'welfare' of the patients, with no thought for those who were to provide it. That a doctor should have a right, desire or choice in the matter, was regarded as irrelevant selfishness; his is not to choose, they said, only 'to serve.' [...] I have often wondered at the smugness with which people assert their right to enslave me, to control my work, to force my will, to violate my conscience, to stifle my mind-- yet what is it that they expect to depend on, when they lie on an operating table under my hands? [...] Let them discover the kind of doctors that their system will now produce. Let them discover the kind of doctors their system will now produce. Let them discover, in their operating rooms and hospital wards, that it is not safe to place their lives in the hands of a man whose life they have throttled. It is not safe, if he is the sort of man who resents it-- and still less safe, if he is the sort who doesn't."

Wow. That just sums it up perfectly, doesn't it? Similar to "Atlas Shrugged", we have allowed the looters to take hold of us, to transcend our own moral codes and trick us into believing that it is for "the greater good". I say, do not let them take our freedom! Do not allow the looters to spread their filth, and contaminate everything they touch; this is just the beginning. Why do we have a right to a service? Who are we to demand that the doctors exist for out own need? The thought is utterly despicable.

We have no right for health care, same as we have no right to dental care, rent movies, watch television, fly on airplanes... And why should we? The free market system has provided us with a service. There is a cost, should we wish to purchase the service. We are lucky to have such a service offered to us at all. I am not denying the claim that millions cannot afford health care. However, since when has need demanded payment? In accepting this bill, we are accepting the idea that the looters have a right to demand other's earnings on the behalf of the needy. A certain slogan comes to mind, doesn't it? "From each according to his ability, to each according to his need" Since when have we abdicated our freedom to the looters and men who wish to enslave our bodies and minds? Why should we accept their idea that need constitutes tribute? What world do we wish to live in?

As we look to the future, what do we see?

What prospects do we have for the future? Assuming the Liberals are allowed to continue their destruction of the America our forefathers fought long and hard to protect... what can we expect to see?

It's revolting how this administration has absolutely no regard for the constitution whatsoever. I mean, Obama never even released his birth certificate, a prerequisite for becoming President. He has trampled the damn thing since he's been in office as well. I mean, he has a team of fucking czars. Czars! This term is known most from the emperors who ruled Russia-- So, Obama sees himself as someone who transcends Kings? But of course, most of MSM will tell you he is the messiah... So, "God" may not be a title far off.

So, what? He decided to appoint a team of "Kings" with unlimited power to do his bidding. Does that sound like America? How about the idea of telling you how much money you are allowed to make? His pay czar is already enforcing such policies with banks and financial institutions. Who the fuck are they to tell you how much money you can make? Whatever happened to the free markets? Innovation? The concept that if you work your ass off, then the sky is the limit? Well, not anymore. Obama sets the limit well before take-off.

How about this new proposed health care plan? A team of government-appointed "professionals" (We know those two terms can't go together) to decide whether or not you get health care. Now that's scary in and of itself for many reasons. Mainly, the restrictions on free-speech. It's rather quite ingenious. Instead of coming out and straight-up limiting free-speech.. The government will seize control of the media by bashing those who oppose (such as calling Fox News 'not a real news organization').. They will gain control of the papers through bailouts that they've already said are plausible. You thought the Times was left-wing now, just wait until they're receiving checks directly from Obama and his media czar. It's despicable the amount they are allowed to restrict free speech.. You think Glenn Beck's family would be treated the same? Would they be able to receive a life-saving operation if it was needed? The fact you have to sit and think about it, is sickening.

1984. People have said such a dystopia could not happen, because Americans would not allow it. I cannot help but to laugh.. Do you think socialism occurs all-of-a-sudden when its people oppose it? Don't be a fool. We receive just a pinch at a time, until the public acknowledges and grows to accept the Change. This is what America has been exposed to over the past several decades.. Since FDR. However, what happens when the people have a love interest in their President? That's when we have problems. Look at Hitler-- He was a great orator. Hitler was able to get the people on his side.. They loved him, and would do whatever he said. This is _dangerous_. We don't want people to cede their minds to the elected. We don't want people to even trust those with power. We want all policies, all proposed legislation to be scrutinized extensively. Changes in government and the amount of power the entity has is not to be taken as a grain of salt.

However, this is what has happened. People loved Obama's message of "Hope and Change". They refuse to acknowledge the fact that he hasn't done a fucking thing. Obama is the worst president in history, and it hasn't even been a year yet. He can do whatever he wants, and he is not challenged. No one stands up to him, no one challenges the constitutionality of his czars. Americans are more concerned with their "American Idol" or some other idiotic television series. People need to wake the fuck up before it's too late. I fear for the future. If nothing impedes Obama and his Liberal cronies, he will destroy America. He will destroy what our forefathers fought so gallantly to achieve-- A country free of tyranny.

The State of the Union

I've been intending to write a new post on this blog for a while now, especially since I ran across this in Google Reader. I've many thoughts circling my head, and so I shall try to organize them in this post-- Though, it will be one of much less substance and cited sources.. and more of just me.

So, I've been following Obama *very* closely over the past year. I am not searching for flaws and failure, but I see it every which way I turn. It seems the more that is discovered about this man, who was a nobody a few years back, the more I cringe. While our troops fight gallantly and require a commander-in-chief to lead them, he is absent; While our economy falters and uncertainty lay ahead, he is nowhere to be seen; While the Democrats blame Bush and play petty politics, gambling with our wealth and future, there is no Great Compromiser. Our leader is absent.

As myself, and many others predicted, Obama has done very little in this past year. He won the Nobel Peace Prize, but for what? Afghanistan and Iraq are in the worst shape in many years and our Generals have begged Obama to send in more troops. Around the world, Americans are no better liked-- The Russians, I feel, have been much more aggressive in foreign policy and have been met with appeasement from our administration. Obama has not been able to quell resistance in the Middle East nor the fighting between Israel and Hezbollah. Ironically, the only Liberal president who did well internationally and probably deserved the high honor, has never received it.

Now I shift to health care once more. Again, I highly suggest you read the article I linked earlier-- It debunks most, if not all the claims that the left have made about our current health care system. It clearly shows our health care system is not the worst-- We have had low costs, pharmaceutical spending, and high life expectancy rates relative to the rest of the world. True, our health care system is not the best.. but that is simply because government is already too much involved in the way of medicare, medicaid, social security, etc..

HHS Secretary Kathleen Sebelius issued a "gag order" prohibiting insurance companies from informing Medicare-plus enrollees that the health plan would result in a discontinuation of their private secondary insurance. Additionally, the leadership in Congress has refused to post the working bill online. What are they hiding?

You want to know how to make our system better? *LESS* government involvement, not more. A few months back I attended a Town Hall Meeting, where I brought this up-- The fact that medicare and medicaid have socialized medicine enough. They set prices which private insurance companies must follow in order to stay competitive. We must look to eliminate such government involvement in health care as well as into tort reform. Why not restrict frivolous law suits which are filled by loved ones who are (understandably) frustrated? Doctors aren't miracle workers. Also, why not allow companies to compete across state borders? These regulations on free market capitalism are ultimately destroying it. The answer is less regulation, less government involvement.. Why the hell can't politicians see that?

People may argue, though, a purely deregulated system is flawed and evil. Not everyone can afford health insurance. For one, make sure you understand what insurance is.

I frequently hear people ask, "how can someone with an illness obtain insurance?" If you think about this for a moment, the question doesn't make any sense. It would not make sense for an insurer to insure someone who already had incurred the insured risk. What the sick person needs is care, not (necessarily) insurance.

it is not clear a priori that the cost of care would be too great for the ill person to afford. Current prices for care are quite high, but the prices of health care as they are now have a lot to do with the four-party system. This has resulted in a system where prices are high in part because we have insurance, yet we must have insurance because prices are so high.

These companies are offering you a service that they don't have to. Insurance isn't delegated in the constitution as something that must be provided to citizens. It's a privilege. Those insurance companies need to make a profit too, else YOU will lose coverage. Besides, without the government sticking its big nose in the industry, companies will finally be able to actually compete in a capitalist system-- Which will result in much lower prices.

Now, for the biggest dilemma affecting the administration... the economy. We absolutely CANNOT continue the way we are, spending without any regard to the consequences. Politicians fail to understand a simple truth that my 11-year-old brother knows-- money doesn't grow on trees. But do they care? "Ah, hell.. this is the US economy.. we'll recover." Fallacy. Just because we have yet to fail does not mean we will live on indefinitely. And fail we will. Zimbabwe's inflation troubles are nothing compared to what the US will face. Our national debt is well over $12 billion, with even more planned spending. This is a very serious problem which poses some serious consequences. Now is the turning point. If we don't soon cut spending and attempt to recover from this deficit now, then we never will. There has already been talk of dumping the US dollar as the Reserve Currency-- which would result in more liquidation of US dollars on the market.. Not to mention the affects should China realize that a US investment is no longer a AAA rating investment. Peter Schiff and Ron Paul say it best when they warn of a collapsed dollar. I've invested in the markets for quite some time, but recently I've begun shifting away from anything that is held in dollars. Why, you ask? The Dow is back to 10,000, so what's the trouble? Well, that's wonderful-- The Dow could hit 100,000, but if the dollar aint worth 1/100th its original value then you've just made a terrible investment.

Our government is drunk on power, and greedy for whatever you will allow them to take. They no longer require your vote for power; Obama has demonstrated time and time again that he will simply do whatever he wishes. As with his czars, Obama is socializing America... taking freedoms one at a time until you wake up to find that Orwell's dystopia was only several decades off. I fear for the future. Wake up America... Wake up before it's too late.

Healthcare Part 2: Obama's plan for the elderly

On my way in to work this morning I was listening to Talk Radio, and they mentioned a point which has been discussed before-- Obama's "death panels" and how they would effect the elderly. The Mainstream Media has laughed down these discussions, and I even had to turn off "The Daily Show" this week because of the extreme liberal propaganda... The truth is, bureaucrats will be deciding your loved one's fate. It's a paramount part of every socialized, government-controlled healthcare program.

Let me run down the basic logic for you:
Those who contribute most to society-- The young and those in the work force will be priority one. The government needs these people to survive, since that's where their income is coming from. The elderly, terminally ill, and people suffering mental ailments which limit how they can work will be expendable. By a logical Utilitarian argument, this all makes sense: It's for the greater good of society. Those who are old should be euthanized or refused medical treatment since they're about to die anyway, and they are just wasting resources. However, is that really what we want? As Palin said, this plan is downright evil.

The United States of America is not a democracy; We are a republic. The difference being the former requires only a majority decision. If the majority of the population want to kill all people once they hit 65 years of age, then it is legal. A republic system of government is centered around rule of law, and protection of minority rights. Regardless of what the majority of the population desire, the basic law is upheld for all. Thus, in our system it should _not_ be legal for other people we do not even know to make life and death decisions about us. It's complete bullshit. I refuse to stand before a judging panel and try to make my case for why I think I should receive medical treatment. I refuse to stop caring for the elderly. I refuse to surrender my freedom of choice, to the government.

All Aboard! ObamaCare: One Step Closer to World Peace

President Barack Obama promised "Universal Health Care" to all during his campaign.. and now, it seems that the Democrat-run Legislature intends to carryout his wishes. But what does this mean for you? Will this health care bill really do what Obama and the media say it will?

SOCIALISM

Absolutely not. First of all, let's analyze what "Universal Health Care" really is. It's government-run health care, right? The government will nationally own and administrate hospitals, doctors, pharmacies, etc.. Hmm.. That sounds a bit like..

1: any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods"

AKA Socialism. So, if firing CEOs of car companies, buying car companies, buying banks, appointing czars, etc.. doesn't prove that Obama has a socialist agenda, then you've got to admit that "socializing" medicine is.. well, socialist.

This is completely antithetical of how democracy.. how capitalism functions. It's a well-known FACT that capitalist systems are much more efficient and democratic than are command economic systems, in which resources are allocated by a central government. So, why should we expect Obama's socialist Health Care Reform to be any different?

HEALTH CARE MONOPOLY

What would happen if the referee of a football game decided to play? What if he played on the other team? Would you speak up, and complain that it's not fair?

This parallels what ObamaCare will do to private companies and health insurance. Right now, the government regulates health care-- referees. If they jump in the game, not only do they get to set the rules of the game, but since it's government-run, they don't have to make a profit. How is this fair for private industry? It isn't. Most health care providers WILL get shafted. That's right. You will lose your job. Who can compete with someone who makes all the rules and doesn't have to turn a profit?

Link: Obama Healthcare Plan Will Destroy Insurance Industry
Another Perspective
How about a Doctor's take?

INEFFICIENCY AND POOR SERVICE

What government-run agency is efficient and/or quick to get through? Ever been to the DMV?

If you seriously think ObamaCare will be "better" than what you already have now, then you're in for quite a surprise. First of all, the only people who benefit from this bill (Yes, there are a few) are the extremely poor people who cannot afford any health care... because ObamaCare will be free of charge. So, about how many people is that?

...even the liberal Kaiser Family Foundation puts the number of uninsured Americans who don't qualify for government programs and make less than $50,000 a year between 8.2 million and 13.9 million.

Whoa! That's a staggering 3.33% of the US!

Okay, fine.. So it's more like communism.. I actually do want to work hard, and pay for those who sit on their ass all day popping babies out every 9 months. But, what will the service be like?

Well, let's think logically.. In the private sector, doctors strive to be the best.. Why? Well, we're still a semi-capitalist nation.. Hard work typically ushers in success, more patients, and a larger pay-check. Basically, if a doctor can save your life, then he makes more money. His pay is directly proportionally to how hard he works, and how well he does. Not so much in a socialist system... In a government-run system, mediocre doctors will be hired, doctors will be paid less, and service will be much worse. The government employees will all be paid the same.. regardless of whether you live or die.. In fact, they will probably try to rush you in and out as fast as possible.. overlook a few minor details.. which in turn could lead to cancer or other life-threatening circumstances. But, enough of me ranting.. why don't you see for yourself?
Here's a cool two minute video that sums it up with legos!

ObamaCare: A real-life trip to a country with socialized medicine.

ObamaCare bill tells seniors to "drop dead".

OKAY THE SERVICE IS BAD, BUT MOST AMERICANS FAVOR THE BILL ANYWAY, RIGHT?

Oh?
53% of Americans oppose ObamaCare

Why are Democrats Rushing to Saddle America With an Unwanted Health Care Overhaul?

Wake-up. Think for yourself, and stop letting the media run your life.

WHO BENEFITS?

As I said earlier, the 3.33% of Americans who cannot afford health care will benefit from this plan, as YOU will be paying for their healthcare as well. The middle class will be most affected. 83 million would lose private coverage. Taxes would need to be raised to afford such a massive transition into socialized healthcare.. Not only federal income taxes, but also state taxes as well.. We're in the middle of a recession, mind you.. One that Obama promised to fix, and create new jobs within months.. but that's a completely different issue. Anyway, YOU will get shafted. The majority of Americans. Why? Because, you will be paying for the healthcare through taxes.. and the few private healthcare providers that survive will be extremely expensive (Due to the loss of clientele, rise in prices of materials, etc.) and only the super-rich Americans will be able to afford it. So, basically.. You will be paying more for a crappy system which takes forever, has terrible service, and you will be unable to do anything about it. What are you going to do? You wont be able to afford private health care anymore.. And do you really want the government telling you what you can go to the health clinic for? Yearly checkups? Don't make me laugh. You will only be admitted if you're dead or dying, and still you will have to take a number and wait.


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So what's this all mean for you? Well, Obama is trying to run his bill through congress as fast as possible so you can't stand up for yourself and voice your own opinion.

What are you still doing? Think for yourself, dammit. Don't let the Mainstream Media think for you. You're an intelligent human being. Think for yourself-- Understand that your president is forcing socialism down your throat.. If you're okay with socialism, and you don't mind busting your ass so others can sit on theirs, then you have nothing to worry about. Change is indeed coming. Otherwise, you need to do something. Notify your congressman, spread the word, or something. Don't just assume someone else will-- What if everyone thinks like this? What if everyone just steps back and waits for other people to take the initiative? No. Stand up, spread the word, and let people know that this is a terrible idea. Don't let Orwell's dystopia become reality.

The failures of American democracy

As a libertarian, I am a strong advocate for individual freedom. Democracy is perhaps the most efficient form of government in our world today. There are many different forms of democracy.. the United States is technically an indirect constitutional democracy. We elect people to represent us in government. Looking at it from this perspective, one can easily infer that this system is much more fair than oligarchies, monarchies, dictatorships, and socialist states. Our laws are basically agreed on by the majority of the population, right? I had always been taught that democracy is the greatest form of government- and fair to all. So, what could possibly go wrong?

The founders of this great nation actually foresaw the potential blunders of such a drastically different system of government.. Many were naturally skeptical.. And in fact, our forefathers did not trust the average man; It was not intended for all people to participate in the election of government officials. They only wanted the intelligent Americans to vote, and thus devised a clever deceptive system known as the electoral college. Also, certain measures were set in place to discourage some people from voting- taxes, tests, registration, etc.

However, much has changed since then.. the judicial branch now has the power to "interpret" the constitution.. congress can easily pass laws, the electoral college has little affect in the presidential race, there's a two-party political system, corruption, etc.

The most obvious failure of democracy is also its most powerful... the rule of the people. Democracy makes a huge naive assumption- that the people as a whole are intelligent enough to vote and make decisions on their own. Such an assumption, however, is laughable. Most Americans, most people in general, are idiots. The media can easily swing American support on certain issues.. so many people are just so damn gullible. There are all these dumbass Liberal protests of global warming, environmental pollution, etc. which make unsubstantiated claims. Yet, people just gobble that crap up. People are enticed by advertisements or the mainstream media or persuaded to join some "cause" which has obvious political undertones. Face it: the general public is stupid. Can we really trust one another in government? No- not all people have the same capacity to think logically or even make decisions without help from someone else.

Which brings me to my next point.. politicians. What exactly are they? What is a degree in political science? Well, previously we had professionals who ran for president. People who were lawyers, doctors, experts on government and economics, etc. But today.. our presidential candidates are nothing more than celebrities. Barack Obama is the perfect example- he is the media's beloved. We have made a complete mockery of what our founding fathers once considered "democracy"- it is now nothing more than a popularity contest. Democratic elections remind me of cheerleading elections we had back in high school.. The candidates are given very little time to show off their actual talents, and basically no one gave a shit. We all just voted on the prettiest looking girl regardless of her skills.

And with the birth of politics, we have corruption. Most politicians today are scum. We put these people in direct contact with big businesses and corporate agendas which will gladly pay them huge sums of money in return for favors... That's what democracy is today: An oligarchy of the rich since only the rich can afford to pay off politicians. All this pork barrel spending, lobbyists, special interest groups, and "campaign contributions" make corruption extremely tempting and rewarding for most politicians. We must seek finance reform... Candidates which are allocated certain budgets by the federal government can cut out all this bullshit. It should be 100% ILLEGAL for any person, business, or government to contribute freely to specific campaigns. This will free up the politicians time for actually campaigning instead of wasting time trying to raise enough money just to compete with the other guy. This will also completely eliminate most if not all corruption in public office. If candidates are not paid by special interest groups, then they would not feel obligated to vote in the interests of said group. I also believe that we can reduce corruption by making these elected officials more accountable for their actions. At the end of each year, we should be given a list of what the incumbent has accomplished in office and then we vote on a salary (For example either he did poorly and he gets a specified lower salary or he did average and gets a slightly higher salary, etc).

Now on to the media... As I've previously discussed, the mainstream media plays a major role in most people's lives. The news we watch, the movies we see, the papers we read... And today, stories which take on a negative attitude always make the news. We see articles about how global warming is destroying the planet, how economic recession is imminent, and doomsday is only days away. We NEVER see anything regarding how well our military is doing overseas, or how security organizations have stopped terrorist attacks from occurring, or how we've discovered a cure for some ailment. The mainstream media takes on a negative tone, and is responsible for increasing the public's interest in scrupulous new "movements" which seem to fight some nonexistent enemy.

In conclusion, democracy in America has failed because of its people. Democracy dies in the cries of its people, and the people have spoken. America shifts left, and becomes more socialist due to its citizens. Most people are incapable of making coherent, intelligent decisions. Thus, they are subject to the manipulation of the media and others. Democracy fails because it presupposes people are intelligent, but the very contrary is true.