Why European Socialism is Failing, despite Austerity Measures

Yesterday, Francois Hollande defeated Nicholas Sarcosy in what can only be described as a big Left turn for French politics.  The narrative being pushed by the main stream media and by socialists is that austerity measures have not worked, and most European countries are mired in double dip recessions.  The left is trying to argue that these "right wing" austerity measures have failed, and that only a return to the European Socialism will fix what is ailing these countries.

The problem with this thinking is simply untrue.  The first is that the austerity measures are to any degree "right-wing."  If right wing is defined as any departure from the central planning models that have dominated European politics for the last two decades, then yes these austerity measures are right wing.  The reality is that "conservative" in the US and conservative among European socialist countries means two different things. And finally just austerity measures are not the only thing that needs to be done.

What is really happening is that Europe is reaping what they have sown.  This is what happens when two or three generations have lived in such a cradle to grave social democracy.  They have a whole generation of people who think they are entitled to a free ride after doing so little.

What is worse is that the social democracies of Europe have reached the tipping point on taxation.  Countries such as the UK, France, Spain, Italy, etc, have tax rates that are close to 50% and that does not even count the 17% minimum VAT tax on everything bought in Europe (Some Countries VAT Taxes are higher).  Austerity will not work, because it is not addressing the real cause of the real problems in Europe, that taxes on  businesses are so high that they cannot generate enough capital to invest or to hire new workers.  High VAT and income taxes take away disposable income from consumers who might otherwise spend their extra cash on goods and services.

The only way for Europe to solve their financial problems, is to cut back on social programs and cut taxes.  The problem is that when the population is not willing to buy into what is wrong, and demand services that a country can no longer afford, that country is ripe for financial ruin.

On Health Care Reform...Part 1

It is naive and ridiculous to equate polls that show that majority of Americans who are in favor of health care reform with the idea that they want an overhaul that includes a single payer socialistic health care system. As a discerning person, if I were asked whether or not the health care system needs to be reformed, I would answer with a resounding "Yes!"

President Obama and the liberal left, believe the only answer to this is to throw the baby out with the bathwater, and essentially scrap the old system with a health care system that will magically provide high quality health care for all while costing next to nothing. Their rhetoric rings hollow, when the details in the health care proposal come out showing massive new taxes for just about everyone. Regardless, they call the "public option" (code for government run single payer health care)necessary to increase competition among private sector health plans.

There are some facts that need to be pointed out.

First, while the American Health Care system needs to be reformed, this very same flawed health care system, complete with its capitalistic incentives, has produced the absolute highest quality of care in the world. (Evil) pharmaceutical companies, because of the incentive to make gobs of money, have invented new drugs that have extended both longevity and quality of life for all citizens. Neither of these two facts are in dispute. The successes of health care and pharma companies has in part led to spiraling costs. People under 50, for the most part don't get sick and don't spend money on health care. As people live longer, it costs more and more to keep them alive, with a decent quality of life. I am not proposing or advocating anything here. I am simply stating a fact.

Second, the rationale for the "public option" that said public option will improve competition is utterly false on two levels. First, is the straw man arguement that there is no competition now. There is, but depending on the state one lives in, that competition is severly limited by laws prohibiting interstate commerce in the health insurance industry. My wife's dilemma is a perfect example of this problem. She works (remotely) for a company in another state, who's parent company is in yet another state. Because she is only one of three employees in this state, health care cost for our family is roughly $700 dollars per month. If federal law allowed interstate commerce among insurance companies, she could be grouped with the hundreds of employees who work in the state where her company's main office is, thus cutting her insurance IN HALF. By simply removing these limitations, the government would be able to increase competition without spending a dime. The second point is the idea that a public option would fairly create competition. The government does have to make a profit to exist. A public health care plan, with the deep pocket of the federal government complete with deficit spending, could spend as much as it wants, undercutting the private sector and effectively killing competition. Make no mistake, this is the precise purpose of the public option.

What I hear from liberals is the argument that it is fundamentally wrong for corporations profits from peoples sickness and suffering. This is anther straw man argument. First I do not believe honest profits are wrong, and in fact the capitalist/free market system is the reason that the United States has the highest quality, and greatest innovation in health care in the world. If this were not so, why then do people, when they are really sick, often seek medical care in the United States. It is my argument that the market forces have been turned off, and it is this very reason that health care costs are spiraling upward. If Congress wants to fix this problem, they need to examine how and why market forces are not keeping costs down, as they do in almost every other industry.

More on this later.

Happy Tax Day!

It is interesting to hear all of these liberals bad mouth the Tax Day tea parties that are going on all over the country. They are calling those who are attending a bunch of red necked backwards thinking hay seed hicks. But what they fail to do is to consider the real reasons and ideas behind these tea parties.

People are angry and scared. They fear for the future of their country. America was founded on the principles of limited government, rugged individualism, and the idea of American exceptionalism. These ideals, coupled with capitalism, is what has made this country the most successful and prosperous country in the world. President Barack Obama's ideas and policies that he wants to impliment are not only destined to fail, but will lead America down a path that it was not meant to go down.

But what the real crime here is that The Obama administration is implementing these policies without a single regard for fiscal responsibility. The fact is...is that America does not have the money for all of these programs and bailouts. The amount of debt being amassed could cause such massive inflation that it will destroy the value of the dollar as a world currency. The debt we are heaping on our children and grandchildren is horribly crippling.

But worst of all, the proposals by this administration could spell the end of capitalism, which is the end of freedom. The American dream is that anyone can come here (legally) and try to make their fortune, and pursue happiness. Is it a perfect system? No! But it is the only one that works and gives people true freedom.

As people consider what this President is doing, trying to take control of the economy, health care and education, I want you to respond to this question.

Name for five things(excluding the military) that the government does well .

Now tell those of us diggin in our heals about this stuff that you really honestly think that that government can do it better(whatever "it" may be)!