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Comment Dated Dec 6, 2008
Privatize The Profits; Nationalize The Losses
Americans are told that Socialism confiscates money from the productive members of society in order to subsidize a parasitical element of freeloaders who contribute nothing worthwhile. It isn't, but the belief is effective in discouraging support for measures by which a society endeavors collectively to take care of its needy, such as the sick, the young, the elderly, and the plain unfortunate. It's ironic, therefore, that the parody of Socialism that we're supposed to sneer at describes precisely the formula that's being turned to when the card houses of capitalism come tumbling down. Numbers made bigger through financial manipulations that are essentially bets and hedges on bets represent no increase of the real wealth of a nation, which clearly can't change by trillions overnight. No more value comes out of a casino than was taken in. But what comes out of a factory is worth a lot more than what went into it. Hence, when the betting slips turn out to be worthless, the paper billionaires can only make good their losses at the expense of the working and professional classes, which is the only place where anything of real value is produced.
Israel Shamir puts it well:
"Now they intend to use their control over the government in order to shift their losses onto ordinary Americans. Whether this act is called 'nationalisation' or 'privatisation' or 'bailout', the bottom line is that many Americans will find themselves poor, and all Americans will have a huge tax burden to bear. But the perpetrators of the pyramid will get off scot-free; they will retire to their castles and to their sure and protected investments as they have always done before."
Full article posted at:
According to the theory of how economics works, working people supply the labor in return for the security of a wage whether the company is making money or not, while the capitalist puts up the front money and takes the risks in return for prospects of a larger payoff. But what we have is a rigged game. If it pays, the proceeds go into private pockets, but if it fails, the tab is passed on to the taxpayer. Such a no-lose situation, devoid of risk, can only result in the kind of irresponsibility and recklessness that are now coming home to roost.
Again, quoting Israel Shamir:
"The Americans are entitled to know who robbed them and their children: these are the men who became so ostentatiously rich during last two decades. They should pay the price of their crime. And if the government, the President, the Congress and Senate, the Democrats and the Republicans are reluctant to enforce it, the ordinary Americans may do as their Connecticut Yankee ancestors did: apply tar and feathers liberally. If this does not help, hang the bastards on the lamp posts."