Thursday, November 25, 2010

Are we on the road to socialism? My two cents

That's a frequent question asked by Tea Party members, many of whom are family members. I can give them some comfort in this answer: absolutely not. See page 5 from The Wall Street Journal, November 24: Company Profits Rise to Record Annual Rate. Not long ago, The Los Angeles Times reported that health insurance companies are making more money now than ever before. Let's also not forget that the Supreme Court not too long ago allowed unlimited corporate expenditures on political campaigns. If President Obama wants to turn America into a socialist country (which I do not believe) he's failing pretty miserably.

In fact, I would argue the opposite: America is moving to the right (granted nowhere as far as some Tea Party members would like). The recently created bipartisan debt commission is calling for tax reform that would simplify the tax code and lower the top rate to 23%. Whatever one thinks of this proposal (I favor it with some misgivings), this is probably not what Karl Marx had in mind when he wrote the Communist Manifesto. The Federal Reserve is getting heat from conservatives and even a few liberals on their recent QE actions. (I'm too lazy to explain in any more detail). Ben Bernanke and the Fed will be questioned like never before when Ron Paul becomes a subcommittee chairman. It's hard to see how America is on the verge of socialism, let alone Communism.

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