Wednesday, June 27, 2007

US Class Warfare – Euro Style

Pilfer the Rich and Steal Capital

by StFerdIII

As Churchill once commented ‘humans are unteachable from infancy to the tomb’. America, far from being the red – in – the – tooth atavistic free market jungle, is in reality a mercantilist - over taxed, populist manages state. Unable apparently to learn from Europe, American politicians seem hell – bent on attacking wealth and capital. Class warfare, with all its maniacal Marxist dissembling, is gripping US politics, and especially the ‘democratic’ party. Turning the US into a giant Canada is the last thing the western world needs.

The democrats won the 2006 elections based on a set of false promises. Lying left wing populists are not a big surprise. But what is alarming is that the democrats are positioning themselves as a mainstream EU–socialist party for the 2008 elections. In Canada the Democratic Party would be declared ‘centrist. Its shrill anti–war; anti–rich , anti–capital; and pro–government sloganeering is a portentous and frightening signal, that US politics is veering sharply left towards. These were not the policies that allowed the democrats to regain control of the house or senate.

The republicans are not much better. Bu even as the American nanny – state grows ever – larger, the republicans still posses some desire for cutting taxes; prosecuting a necessary war; and (for the time being), supporting some form of ‘fair’ trade. These differences however meager in total are vital to sustain the US– politically and economically.

The democrats are fast becoming a political and social menace. The Marxist – socialist elements of US society have coalesced around an anti–American; anti–capital and anti – trade program. The democratic leadership from Hillary Clinton, to Obama, to Pelosi and Reid, is actively pursuing these Marxist– socialist groups to aid in branding the democrats as caring populists. Dedicate to social injustice, peace at all costs, and redistribution. The Democratic are pushing U.S politics to extremes.

There is a good chance that democratic populism and naked ambition to ‘equalize’ America will fail. This will depend on how republicans react. IF the G.O.P. resorts to populist messaging to buy votes and media support, then the growing power of the U.S. state already too massive and corrupt, will reach E-U levels within 15 years if the G.O.P. defends the truism that lower taxes, smaller budgets and capital accumulation benefits all ‘classes’ then American exceptionalism will (for the time being) be saved.

Contrary to media spin, the democratic program is nothing less then the creation of a euro – welfare state. Using Orwellian logic the dems want to raise taxes in capital, income, investments, and corporations, as well as limit trade with China, and insert more government into energy, health and food processing markets. The populist desire to rule, coerce, tax and spend would cause a recession.

The democratic attack on capital and business would be the worst set of economic initiatives since the great depression the disastrous decade of the 1930’s was caused by higher taxes, reduced trade and banking illiquidity. Government not ‘capitalism’ caused the depression current populist itching to limit capital, reduce liquidity and war on the rich, satisfies Marxist emotionalism, but it does little to and societal development.

The markets reflect this reality. Stock indexes which mirror capital and investor sentiment are selling – off in anticipation that democratic anti – capital populism might win out. The 2008 political season means that rational policy setting will not be set aside, as vote and headline grabbing policies come to the fore.

None of this is good news for any ‘class’. In 2006 US disposable income grew by 3% after inflation. All by the bottom 5% saw income gains. Strong stock markets, reduced dividend and investment taxation and expanding corporate profits, had let to a boom in US personal wealth. Raising taxes does not lead to more government revenue. Lowering tax rates does. Since economic activity and taxable incomes will rise.

Assaulting capital and profits is insipid. Capital liquidity is a necessary factor in economic and by extension social development. By increasing taxation and government power, populists only ensure that all ‘classes’ will get poorer. The last thing the world needs is another EU– Styled mommy – state hollowing out the US economy. Let’s hope that the average voter realizes this in 2008.