Socialism… A short essayBy Paul Livingston
December 05, 2018
There are irrefutable laws that determine the allocation of goods and services as defined by the science of economics. Socialism brings politics into the science of economics that has laws above government power and control and will always win out in the allocation of goods and services. They are the law of supply and demand, law of diminishing returns and the law of unintended consequences. Socialism is about controlling the distribution of goods and services, taking from some and giving to others, about picking winners and losers. Socialism is a losing cause with many bad side effects.
The socialist government structure creates an elite power group to manage and control, to become rich and open to bribery and corruption. Some of the rich like socialism as their money enables them to buy into the elitist group to have influence and power. Socialism is a dead end road that consumes wealth and punishes production as it undermines the three individual liberties upon which economic progress depends: 1. The pursuit of self-interest 2. The division of labor 3. Freedom of trade. A basic requirement for socialism is a graduated income tax as it provides government with the taxing power to take. The 16th Amendment in our Constitution gives our government huge power to directly tax us and with it comes the present income/payroll tax system with over 74,000 pages of tax code. Today we are in financial slavery to our government as the 16th Amendment moved the shackles from government and placed the shackles on the people.
Socialism promises a utopia that never happens. History records many disastrous failures like Russia, Cuba, Venezuela and North Korea. These failures include the mass murder of tens of millions, countries in poverty and lack of economic growth with no hope for a better future as dictated by the ruling elite class. The parasitic socialistic governments have bled from the people what little wealth there is and discouraged them from creating new wealth.
The building block for any country is the individual, not the commune. We are each different, have different skills, different interests, different abilities, different personalities, different wants and needs, different morals, different beliefs, different goals, etc. It is the liberty of the individual that drives production and creativity. For success there must be harmony and not division. Business and free trade are both win-win interactions with profits for both parties. It is the rewards, the profits that drive economy progress and a higher standard of living for the country. Within a free market the individual is rewarded, paid based upon their value they add with their differences in skills and experience. Socialism erodes the rewarding process with the taking from some and giving to others and devaluing the individual incentive to do better. Thus the socialist country is going “down a dead end road” while seeking a utopia that is delivered by capitalism.
The benefits of capitalism are exhibited by the many technology and medical advancements created in the U.S.A. and benefiting the World. Look at the Korean peninsula to see how capitalism in South Korea was energized an advanced technology and high standard of living country while North Korea is in starvation with no indication of improvement. China is using capitalistic ideas to unshackle the production capabilities of its people to become a World economic power. A side effect of capitalism is wealth production upon which socialism can feed. Greater wealth energizes the “want something for nothing crowd”, “hate the rich crowd” and those who suffer from envy. To gain contributions, power, votes and re-election politician promise new taxes, laws, regulations and welfare programs. Thus government, which does not know how to down size, continues to grow and the elite political ruling class gains more power and control.
Socialism will persist as long as there is good and evil. The key is to contain socialism and enable the pursuit of self-interest, the division of labor and the freedom of trade. The solution comes with real/true tax reform as proposed in the FAIRtax bill HR 25 / S 18 now in Congress. It is a long term solution that removes the root problem of direct taxation (16th Amendment) and is not a short term tax change. The FAIRtax replaces the old income/payroll tax system to increase tax home pay, solve border taxation and tax evasion and eliminate annual filing, taxes on jobs, tax withholding and the IRS. Move the tax base from production (income, savings and investment) to a tax base on consumption with a two piece solution of a progressive national sales/consumption tax and only one tax break, a monthly tax refund ($233 per adult, $83 dependent), called Prebate, that is of most value to the impoverished and fixed income. The FAIRtax insures more stable funding of Social Security and Medicate while collecting the same total tax revenues as the replaced taxes. The FAIRtax bill has a sunset clause to repeal the 16th Amendment that legalizes direct taxation, the IRS, payroll taxes and tax withholding. Repealing the 16th Amendment will prevent the income/payroll tax system from returning and renew our lost Civil Rights, Freedom and Liberty.
The FAIRtax bill HR 25 / S 18 is good for all Americans, but is hated in Washington D.C. by the lobbyists, special interest, politicians who like power and control, crony capitalists and tax lawyers. This nonpartisan bill now has 52 supporters in Congress and all Republicans.
Once you understand the FAIRtax, you will demand the FAIRtax. It is America’s Big Solution. Learn more, join the tax reform cause, be a difference maker and contribute at fairtax.org, bigsolution.org and #MTFA.
About: Paul Livingston is a board member of the Florida Fair Tax Educational Association
Received December 05, 2018 - Published December 05, 2018
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