As I mentioned in a previous article, the pendulum of History makes society swing from individualism to collectivism as opportunities become more abundant or scarce. The antagonism between Capitalism and Socialism remains in full force today. A steep worldwide recession is taking hold and seems to be inspiring most western people to look for a refuge within the group rather than to stand for themselves. With the US presidential race increasingly displaying a standoff between these two social ideals, I believe it is the perfect time to remind everyone what is actually standing behind the apparent compassion of socialist ideas and the seemingly good intentions of Keynesian economics.
You may agree or disagree with the following analysis. However, what you cannot do is question whether that point of view is biased or militant. The following words are not spoken by a theorist. Rather, they come from someone commanded by Natural Law and who has lived through both Capitalism AND Socialism. Someone who experienced both sides of the coin in his actual daily life and who can tell the difference. Someone who witnessed the evolution of the moral values and material prosperity of the people around him as their psyche was affected by and responded to both systems. So because of this unique insight, I believe it is my duty to send a dire warning to anyone believing that relief and salvation can come from a group of men distorting Natural Law and flipping it upside down to benefit their own agenda. It is imperative that people know what to expect if they decide to entrust their well-being with some sort of government-sponsored mechanism. To every one of you still wondering, I am telling you this. Be very careful what you wish for.
So if you prefer to surrender your free will and let the government steal your very lives in the name of a so-called “social justice”, then stop right here. They will take care of you. You will only deserve your fate. But if you still have a spine and want to remain in control of your existence, or if at the very least you wish to break free from delusion and you want to know the truth, then keep reading.
I have witnessed Socialism and Keynesian economics totally annihilate my generation. Quick and simple. In just 20 short years, Socialism handed that last stroke which managed to permanently destroy or at least render merely conceptual everything that had made my nation one of the world leaders in economic, moral and spiritual terms up until the XXth century. As counter intuitive as it may seem, Democracy seems to have a lot to be blamed for down this race to the bottom. Truth be told, before the rise of Democracy, the State had always been thought of as nothing but a coercive power meant to extort and abuse citizenry. Monarchs for example used taxation and physical power to plunder their subjects in order to empower and entertain a largely frivolous and unproductive class of aristocrats and noblemen. The rise of Democracy logically became seen as a long-awaited salvation. It gained its popular support from the fact that elections not only made the power in place undisputable, it also rendered checks and balances on subsequent government policies no longer necessary. Indeed, since power had been taken away from the rulership of one, and since it was granted “by the people” themselves, then it was naturally assumed that it would also be exercised “for the people”. Allow me to rephrase it all here to make it perfectly clear. Because popular elections were considered proof positive that the new power would enjoy complete legitimacy, Democracy was supposedly postulating that political leaders would not restrain individual freedom but rather act to enhance and protect it. In fact, governments were expected to voluntarily act as people’s servants in working towards a so-called ideal social order. Such social order would be a brave new world alleviated from all excesses inherent to the rise of liberal ideas that shaped the economic fabric of the early XXth century. In other words, while Capitalism was doing the heavy lifting in building society through engaging people economically on a free and individual basis, Democracy was considered as the guardian angel of social balance. So in the eyes of the masses, Capitalism, no matter how successful, was seen as potentially coercive while Democracy and public power were seen as naturally well-intentioned. Can you see where I am going here? Democracy was holding in its roots that very belief that the State had become people’s savior. Marx sure did understand it as he proclaimed that “Democracy paves the road to Socialism”. It proved absolutely true. Unlike Socialism, Capitalism does not hide behind a web of ego-soothing lies. It does not indeed promise State-sponsored paradise for everyone. It only promises social justice (more on that crucial concept later) through the coherence of a social and economic system which balance is ensured by keeping collective order and individual interests in line with Natural Law. In providing opportunity for everyone, it does not however guarantee success for everyone. Only Democracy does – albeit through magic and well orchestrated propaganda which we now call Socialism.
As I often like to point out, one of the axioms in the Universe is that one cannot be a Socialist AND coherent at the same time. I could as well have put it differently by saying more straightforwardly that one cannot live in contradiction with Natural Law and expect something good and sensible to come out of it. Perhaps the most telling sign illustrating this fact is that to function properly, one has to assume that each individual has become totally altruistic and has lost both his survival instincts as well as his ability to proceed rationally. In other words, to be viable, a socialist society assumes that its citizens will perpetually go against Natural Law which has governed our species and universe since the dawn of times. As if it was not sufficiently insane to assume such an impossibility, in 1936, a British Economist named John Maynard Keynes decided in his “General Theory of Employment, Interest and Money” to produce a formalized blueprint for such utopia. His guidebook laid out the governing principles that legitimated the rationale for governments worldwide to spend other people’s money on funding arbitrary interests by running unlimited deficits. In the process, Keynes had no choice but to destroy the pillar of monetary sanity as he got rid of honest money altogether i.e. the gold standard.
So with all checks and balances now out of the way, Keynes encouraged political intervention on the premise that due to “investors irrationality”, a market economy was inherently unstable, unpredictable and created too wide fluctuations in macroeconomic cycles to ensure prosperity. So there you have it folks. The State is more rational than all individuals taken as a whole. And freedom creates alienation and chaos. Keynes’ corollary is that the economy should therefore be made linear. And this manipulation of the real-world will be achieved by controlling paper currency printing. That’s the plan. In the end, productive inputs and outputs need to be sterilized by a centralized authority in order to pull people out of…. well, reality. The USSR tried it for a while. We know how well that worked out. We also know that Keynes relied on a dubious assumption when it comes to currency printing. He assumed that confidence in fiat money will never fail in this experiment, which we all know is absurd as History provides countless examples of hyperinflation and currency collapses. No matter what, governments are expected to stimulate the economy during recessions and run surpluses during expansions. The problem with it is that such macroeconomic approach revolves around concepts such as aggregate supply and demand. It therefore cannot possibly go further than an essay in theoretical economics since it denies the very essence of people’s rationality which it pretends to subvert. It overlooks the microeconomic dynamics that push people’s relationships to create trades, that is a disagreement on value but an agreement on price. Keynes mistakes this disagreement on value for irrationality. However, two people can remain perfectly rational and yet have antagonistic interests driving the same trade at the same time. Keynes in fact lacks context in his approach of rationality. He chooses to ignore the fact that no matter its cost to produce, the same object or service might be extremely more valuable for one person over the other if it caters to, say, an urgent need. Such disagreement is not irrationality, it is merely related to context. But now with Keynes stepping in and perpetually distorting price by dislocating money supply, people can no longer rely on price as a fair scale with which to conduct trade. Such outside intervention necessarily leads people to either over or underpay for what they believe something is worth, or to simply hold off on trading since value can no longer be assessed. In the end, this absurd misconception of macroeconomics leads to more and larger bubbles creating ripple effects of deflation and inflation that are left with no time to self-regulate. This is a major reason why Socialism does not and cannot work as a substitute for individual rationality.
But beyond the rational look at whether or not Keynesian economics would work (which we know they do not), the actual debate is the definition of what it would actually mean for an economy “to work”. Some would say that it is an economy which aligns with Natural Law through a process of creative destruction allowing winners to win and losers to lose. Some would say that it is an economy which seeks to achieve a utopia where equality and linearity are seen as social harmony, no matter how delusional and out of touch it is as regards humans’ very psychological design.
The reality is that in most countries around the world, including the US, Keynesian economics have already shown their limits. Worse, I contend that they are coming to their bitter end through a massive implosion that will likely hasten the need for a new world order. In the US for example, that one may debatably consider is not even close to being a socialist country, welfare plus mandatory interest payments on the Federal debt already gobbles up about 60% of all national expenditures. As I mentioned earlier, from my personal experience in living in officially-declared socialist economies, I learnt that welfare is a process that keeps snowballing and that can never be reverted back to sanity by anything else but pure financial ruin. You have to understand that because socialist politicians thrive on promising and providing handouts, lobbies make it their duty to get the most out of this conflict of interests by expanding their entitlements, then diverting wealth redistribution their way, and finally twisting regulation on income streams to permanently lock in the said handouts. Unions for example will stop at nothing to blackmail governments into giving in to their demands. And since there is nothing that politicians love more than the status-quo, socialist governments, of course, will always bend over backwards to buy that status-quo with more handouts. They will systematically resist any diminution in spending or intervention since doing so would mean cutting financial perfusion and therefore would imply losing their votes. That is why socialist governments place money redistribution as a primary weapon to service their success. They realize that addicting citizens to money-for-nothing is the straightest path to breed mass docility and assert their power. The more they redistribute, the less people will be willing to let go of the hand that feeds. Pretty primal thought process if you ask me but incredibly efficient since most people will never grow the backbone to admit that their demands are as fraudulent as these politicians willing to respond to them. So as your country evolves into a socialist hell hole, you will witness your middle-class split up into two classes. Those who work for a living, and those who vote for a living. All of a sudden, half of the population that did not use to rely on anything but itself for subsistence in the past will find itself caring about politics and worrying about how much more taxes the State will extort from them. Whereas the other half will pressure for more handouts on increasingly more dubious grounds. Dare you oppose such process, you will be deemed an “extremist”. The accepted norm will become that Keynesian economists and socialist politicians are entitled to a boundless redistribution of your income to any group they please, without consulting people, and no matter the fact that they have no legitimate right of property on it. Every new benefit program increases future control over their recipients as well as over the people constrained to finance it. What is more, handouts are self-perpetuating by distorting social relationships and especially by leveling down social standards entirely. In the end, the net value that comes out of the socialist redistributive pipe will be substantially less than what initially came into it. Take Obamacare for example. These insane programs end up creating their own demand. The more free shit people get, the more they depend on it. The more bloated the system is, the more undermined traditional values become, and the more people’s self-esteem is squashed, until the moment when society gives its fate away to the State and becomes enslaved to the system. Welfare is a political multiplier. Socialists know it. And yet, while people get tooled over and over, they like to believe that there are such things as good faith handouts. Henry Louis Mencken accurately described Democracy as a masquerade within which “every election is a sort of advanced auction of stolen goods”! I could not agree more. The more politicians promise to give to some people, the more they entitle themselves to steal from everyone else. Likewise, in 1748, Montesquieu noted that “It is impossible to make great largesses to the people without great extortion”. In a socialist country, you will see EVERY reform, every political decision come along with a new set of taxes. Socialist politicians do not know how to do anything else but to increase blood-sucking out of productive people. In a socialist country, everything gets “resolved” with and through higher taxes. Always. Period.
Let me pause here for one second because I need to get this point across to the communist lowlifes of the world that may stumble into their article – in case they made it this far. Conveniently, you refuse to admit that whatever handout is given to you seemingly for “free” is in fact NOT FREE. You view it as if you were entitled to it. Truth is you are not entitled to anything unless you EARN it first. And get this. For every handout that you receive, someone else out there got ROBBED to finance your god damn sense of entitlement. Someone else out there worked FOR NOTHING else but the privilege to waste hours of his life that he will never get back for your selfish benefit instead of his family’s. All of these efforts rendered useless for the sake of compensating your lack of responsibility and catering to YOU who is stealing their very LIFE away.
When it comes down to it, Socialism fosters indirect corruption of the masses through the Democratic process. There is no other way to put it. See, perhaps one of the most important advantages that comes with Capitalism and its self-reliant citizens is that it prohibits politicians from buying one person’s vote with another person’s paycheck. It prevents governments from willingly dress the robbery that is taxation by misleadingly making it look like a scheme implemented “for the common good” of the people. This way, Capitalism is virtuous in preventing socialist dishonesty which is to make a wrong (organized theft) look like a right (welfare). But the socialist cynicism does not stop here. Socialist politicians have the guts to blame the current recession on Capitalism. The fact of the matter here is two-fold. First, true-to-the-letter Capitalism has been long gone from Western countries since the end of the XIXth century. Look at tax levels, overwhelming regulations, nationalized healthcare, centralized politics, mass control on every level, what else do you need? Second, structural stagnation combined with government-induced bubbles are the cause for today’s cataclysmic debt fiasco. Once and for all, allowing failure and reconstruction is the basis for Capitalism. Capitalism acknowledges the random and cyclical nature of life in general and economics in particular. It not only allows but recommends for bankrupt businesses to fail so that more efficient entities eventually replace the old ones. Today’s so-called centralized “Capitalism” prevents failures and creations. Bailouts anyone? Indeed, today’s so-called “Capitalism” fosters stagnation. Therefore today’s system is NOT Capitalism. It is unequivocally, completely and accurately Socialism! Authorities render everything stale to the point that the system never cleanse itself and cycles get artificially and unnecessarily prolonged. This in turn makes recessions get even more painful. Keynesian economists want regulation of economic cycles at all costs. They believe that they are smarter than the markets, that the natural mechanism of price discovery can be distorted forever, at will, and that running infinite deficits, money printing and ever higher taxes is the solution to all problems. How could destructive creation take place under this doctrine? How could reality be positively affected in any way? And especially, how could Capitalism be blamed for the flaws of a system that it is no longer taking a part of?
Socialists and Keynesians are anything but pragmatics. They base everything off of ideology. And when they keep hammering out the same rhetoric about guaranteed everything, free handouts and equality for everyone in wonderland, this is where the brainwashing is the most ravaging on populations. Everything that kept individuals standing for themselves begins to crumble. I have seen it happen over years and years. It is truly depressing to see your people willingly bury themselves into this ideological sink-hole. Yet it happened. And this is what I will get to now.
Politicians are the scam artists of Keynesian economics. They are the ones setting mind control and cultural shift into motion. By the way, are you aware of what the word “government” actually means? “Gobernare” means to control in latin. Likewise, “Mens” means “mind”. So there you have it. Mind control. Through government, politicians are out there to control the masses’ minds. And make no mistake about it, they are in for the long haul. Such a long-term view is only possible if they manage to create a large-scale cultural shift, one that will make the populace totally dependent on the government. You see, Democracy creates that blind faith in Socialism. It nurtures that delusional belief that someone in control of the power in place out there is worried about you and your well-being. It taps into people’s most deeply buried psychological flaws which all stem from childhood, that is either “Mommy issues” (need for caring) or “Daddy issues” (need for protection). The apparent schism between Democrats and Conservatives is therefore an illusion. They still both cater to the same socialist, government-centric, psychopathic plan to control the masses which is to subvert people into believing that they are better off delegating some or all of their freedom to the government. It leads people into believing that the few in political control will act as your oh-so-caring mother or oh-so-protecting father to make YOUR life better because somehow they place your interest and that of the Public Thing (Res-Publica) above theirs. But from either standpoint that you look at it, whether you picked the Democratic or Conservative prism to peek through, you are always setting the government in the middle of your life. No matter how much of a liberal-inspired Democrat or a tough-spoken Conservative you want to portray yourself as, you are still willingly surrendering your very individual freedom to the socialist State. And you believe you rightfully do so. People voting for Socialism indeed believe in this bad fairy tale. But I am here to tell you, socialist leaders are cynics that DO NOT LIKE YOU. They just tool the population into believing that they are out there for them by promising a world of smoke and mirrors. All the while, they set in place the very conditions that will undermine people’s lives and render them dependent on subsidies. These psychopaths have no other plan but to rule you by leading you into slavery.
And so after many years, the logical outcome came to light. I saw the general addiction of my people to public handouts become a self-fulfilling trend. After a while, the cultural landslide is such that governments no longer need to push the idea anymore. People have become so belittled and treated as child that they cannot even fathom relying on themselves for subsistence. They cannot fathom standing for themselves, their property and their freedom. In fact, they view slavery as freedom. So much so that the real challenge to change things no longer is to put an end to the various government programs, but rather to reverse the cultural shift that leads to the popular demand for ever growing fiscal redistributive Socialism as a natural, entitled, God-sent privilege. Just try giving a candy to a kid every day for 3 months. Then, all of a sudden, stop doing it and watch the reaction. Nasty kicking and screaming incoming. This is what happens with Socialism. The moment that you no longer give people what they have come to think they deserve, you will see all sorts of strikes, demonstrations, violent riots and political stalemate that invariably render the whole system unmanageable and thoroughly locked up. Because just like it was not justifiable to give away these handouts in the first place, it is no more justifiable to take them away now. Unless a miracle, there is basically no turning back once Socialism settles in people’s mind. Pulling out of Socialism requires a strong and articulate revival of the culture of individualism. But what an endeavor it is!
To be continued in Part 2…