Month: January 2019

Democratic Socialism: Who Knew That ‘Free’ Could Cost So Much?

From Investor’s Business Daily.

Socialism: Since the Democratic Party took a turn for the worse toward so-called democratic socialism, the party’s leading lights have laid the promises on pretty thick. Free Medicare for all! Guaranteed income! Guaranteed jobs! Subsidized housing! Free college! Universal pre-school! Wow, and all for free.

Well, not exactly. In a devastating piece that appeared on the left-of-center web site Vox (to its credit), Manhattan Institute fellow Brian Riedl went through the simple math of what free actually costs. It’s a lot.

It’s not just the free aspect, but the fact that the democratic socialists have made so many promises that must be paid for that will make it so tough to swallow for most voters.

Riedl looked at the 10-year costs of all the various promises made by Bernie Sanders, Alexandria Ocasio-Cortez, and other self-described democratic socialists. He was as generous as could be in his estimates, often accepting the democratic socialists’ cost estimate even when it was patently and absurdly too low. It’s quite a laundry-list of promises with enormous costs: “Free college” ($807 billion); Social Security expansion ($188 billion); single-payer health care ($32 trillion); guaranteed jobs at $15 per hour plus benefits ($6.8 trillion); infrastructure ($1 trillion); student loan debt forgiveness ($1.4 trillion).

Net cost: about $42.5 trillion over 10 years, give or take a few hundred billion. To paraphrase the late, great Republican Sen. Everett Dirksen: “A trillion here, a trillion there, and pretty soon you’re talking real money.”

As it is, current federal estimates expect about $44 trillion in tax revenues over that same period, with a deficit of roughly $12.4 trillion. Remember: All this democratic socialist spending comes on top of what we’re already spending.

Long-term, the fiscal picture grows progressively (forgive the term) worse.

“The 30-year projected tab for these programs is even more staggering,” wrote Riedl. “New proposals costing $218 trillion, on top of an $84 trillion baseline deficit driven by Social Security, Medicare and the resulting interest costs.”

Today, Riedl notes, total federal spending typically swings between 18% and 22% of GDP. But with the democratic socialist agenda in place, it “would immediately soar past 40% of GDP on its way to nearly 50% within three decades.” If you include state and local government, the total cost for this federal fantasia would equal 60% of GDP — more than any country in Europe.

Even after massive cuts in other programs, such as slashing defense by half, or adding in phantom savings from supposed cuts in state health spending and anti-poverty programs, you still come up $34 trillion short over 10 years.

To raise $34 trillion, Riedl calculates, would require “seizing roughly 100% of all corporate profits as well as 100% of all family  wage income and pass-though business income above the thresholds of $90,000 (single) or $150,000 (married), and absurdly assuming they all continue working.”

Or, he said, you could go to a VAT tax — a national sales tax on all goods and services. But it would have to be huge: a tax of 87% on everything you buy.  Oh, and by the way, that still doesn’t pay for the $12.4 trillion deficit that’s already estimated and that we discussed above. So you’d need even more taxes.

Those number are scary enough. But we’re not even raising the issues of: a.) massive cost overruns in these programs, which are  inevitable; or, b.), whether these programs will work as described or instead end up ruining our free-market economy.

Not surprisingly, in public socialists say they won’t ruin free-market capitalism. They’ll save it!

Wrong again. As Meagan Day, a member of the Democratic Socialists of America, wrote (also in Vox): “Here’s the truth: In the long run, democratic socialists want to end capitalism. And we want to do that by pursuing a reform agenda today in an effort to revive a politics focused on class hierarchy and inequality in the United States.”

Americans should know that these are the very ideas that have destroyed the economies of  the USSR, Cuba, Nicaragua, most of Africa, North Korea and, as we’re now seeing, Venezuela. And they’re not “democratic” at all. They’re just socialism.

Danger: Socialism Ahead

The bigger point is, these utopian ideas are not fiscally sane. And we mean that literally. They are a bizarre fantasy that should be discarded immediately by any reasonable person interested in an economically prosperous future.

That some believe that replacing capitalism with socialism makes you better off shows the profound failure of our nation’s education system. Because it’s something that has never happened in the history of mankind. And young people, who are among socialism’s most ardent fans, don’t seem to even know this.

The great economist, social thinker and professor Walter Williams recently summed up the struggle between capitalism and socialism: “Capitalism doesn’t do well in popularity polls, despite the fact that it has eliminated many of mankind’s worst problems, such as pestilence and gross hunger and poverty.”

To vote for socialism is to vote for national bankruptcy, a loss of freedom, a lower standard of living and an end to innovation. And be forewarned: As Venezuelans, Zimbabweans and Nicaraguans are now discovering, once socialists control things, they never give up power peacefully.

The ideas of Alexandria Ocasio-Cortez, Sen. Bernie Sanders or Sen. Elizabeth Warren, whose “Accountable Capitalism Act” would impose Venezuela-style socialism on the U.S., are no less wrong for having “democratic” in front of the word “socialism.”

In socialism, all roads lead to disaster. Or, as Friedrich Hayek, the late Austrian economist, might say, to “serfdom.” All forms of socialism are the same: they replace consent and personal freedom with government power on behalf of the “people”.

Behind the entire idea of socialism is that government isn’t there to guarantee your rights or the rule of law; it’s there to exercise power on the part of the “people.” Anything can be justified.

We should be teaching it to our kids, and remind young people that free markets are vastly superior to any alternative for organizing a workable, growing economy. For free markets to work, you must have free speech. So political correctness must be abandoned.

The Democratic Party seems to be having more then a fling with socialism right now. Guided by far-left leading lights such as socialist Sen. Bernie Sanders, Sen. Elizabeth Warren and DNC Chairman Tom Perez, the party’s moving to the hard left.The latest example of this is Warren’s proposed “Accountable Capitalism Act,” a plan for what can be politely called a federal takeover of the U.S. economy. This is no joke.

This is sad, since it doesn’t have to be. It’s well known that countries that follow responsible free-market policies thrive and grow. In the latest report to show this, a comprehensive survey by the Libek think tank in Serbia of 92 economic research studies around the world, 86 of those studies found a positive relationship between economic freedom and economic growth.

I do think Millennials love capitalism too. Don’t take my word for it, just consider what companies are doing to win their services, plus consider what businesses are doing to win their future patronage. They wouldn’t be bending over backwards to hire and/or cater to the needs of individuals who truly prefer to live under socialism. Socialism is about shared misery, which is the opposite of what millennials want if their actions in the marketplace are to be taken seriously.

Maybe for right now Conservatives should relax. We shall see.

 

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She REALLY Does Feel Your Pain…But Needs Our Help!

Busted! Poverty Warrior Maxine Waters’ beautiful $4,500,000.00 ‘Windsor Square District’  Mansion located at 549 S. Lucerne Blvd., Los Angeles, CA, one block north of Wilshire Blvd.:  Indoor Swimming Pool …Tall walls & gates … Do you Feel her pain?

How can a member of Congress afford a $4.5 million Los Angeles mansion that takes up half a city block in one of the most affluent neighborhoods in L.A. and the country?  Ask Maxine Waters, aka: “Mad Max”.

Now ask her about her other two homes as well, worth another approximate $850,000 to $1.1 million.  Savvy real estate acquisitions for a public servant with a $174,000 House of Representatives salary, free health care & life-long pension.  Whoops, almost left out Maxine’s property in Palm Springs, California.  Add that to her list.

Only one of her homes is located in the gritty Los Angeles congressional district which she was elected to represent.  Her exclusive estate is miles north … well outside her congressional district … far away from Los Angeles street crime, murder and the folks she is supposed to help.  Apparently, Maxine has addressed concerns about help.  A private company maintains her property and impressive manicured landscaping at the mansion.

Oh, we almost forgot this too.  Maxine Waters’ posh 6,000 square foot Los Angeles estate is protected with wrought-iron gates at the front doors and gates for driveways and patios on each side of the Mediterranean-style abode.   And add a long brick wall that protects the side of the sprawling property.  There are some gates and fencing in the back also, near the custom barbecue area and the detached structure that houses Maxine’s newly built indoor pool.  Or is the swimming pool in the main house?  We’ll have to ask the butler.

For someone who touts a wall-free society where illegal aliens can roam free, Maxine Waters sure seems concerned about gates and walls to protect her in the Los Angeles mansion.  Perhaps she’s worried the wayward homeless or DREAMers might pool hop or grille a Salisbury steak while she’s busy on CNN railing about President Donald Trump or how she really cares about financially-strapped Americans struggling to make ends meet.

The Maxine Waters estate boasts large scale rooms touted as “perfect for gracious entertaining” in one Los Angeles – based publication.  It includes a”stunning entry with a dramatic staircase…lovely pecan paneling in the   family room…and the guest house too!”

Who keeps an eye on the place when Maxine is on the east coast fighting world poverty and hunger?   Her neighbors include the mayor of Los Angeles, singer Chris Brown, Norman Chandler, the owner of the Los Angeles Times, actor Neal McDonough, Lord Baltimore’s Christian Audigier, among many others including the former Tudor Revival style mansion of deceased oil magnate J. Paul Getty.  The mayor of Los Angeles resides in the former mansion of Getty.  He’s a Democrat too.

And all this time Maxine had America conned into believing she was elected to her Washington, D.C. post to help the downtrodden folks struggling in poverty-plagued inner cities like the one in her backyard.   Well, not that backyard.   That could get dicey.   Those folks might want to get out of the sun and use the air-conditioned indoor pool area.   What … your 100-year-old imported marble floors are too good for the homeless?

“Make America Great Again is racist.”   ~ Maxine Waters

Wait, it even gets more ridiculous.   We found approximately 17 building permits on file since Waters purchased this home in 2004.  Waters had many additions built on the nearly 100-year old property, costing another estimated $1 million-plus, according to our math.   Likely more. She commissioned the indoor pool built and even paid a plumber to pipe hot and cold water, as well as propane gas to her outdoor grilling area and custom kitchen.   She added a pergola too, building records show an additional 15′ X 18′ custom patio cover. Hey, before you judge:  It gets hot in Los Angeles and shade is a premium. Ask any homeless veteran.

Some of the building permits filed on the Tony Windsor Square section home provided details like “Interior remodel in kitchen family room and master bathroom…addition of French doors and windows relocate windows remove interior walls…addition of shear walls and beams at ground floor. Many other permits did not give explanations of the home improvement work.

Maxine Waters’ house takes up the same geographic acreage as two of her neighbors’ properties combined.   That’s an extra-large carbon footprint, especially in Los Angeles.

A typical Democratic phony loaded with multiple homes, cash and the walls and iron to protect them from would-be troublemakers. Maxine Waters, who rails about President Donald Trump’s financials’ and tax returns, filed her most recent financial disclosure form with Congress in 2015.   She lists her approximate net worth in the $450,000 range. That’s a mere fraction of the amount of the home improvements made to her Los Angeles estate.   Maxine Waters lists the mortgage on her Los Angeles mansion at somewhere between $1 million and $5 million. What’s a few million between D.C. friends?

Please tell us again, Maxine:  Who should be investigated and impeached?   Maxine rants about the plague of homelessness and the GOP’s contribution to it. The irony is thick.   Its worth clicking and reading the story while she talks about poverty in America.

Built in 1924, Maxine Waters’ Mediterranean-style estate is worth $4.5 million today.

 

 

 

Deadbolt gates on the front doors, gates on the driveways, patios.

 

 

 

 

So much for carefree border-less living.

Flanked by a long brick and landscaped wall that runs half a city block.

 

 

Main house, guest house, outdoor barbecue island and kitchen are seen here.

 

 

East Coast digs:  Maxines Washington, D.C. pad across street from  Albanian & Costa Rican Embassies.

Just to let everyone know what a hypocritical, crazy crook old ‘Mad Max’  is. How does this looney leftist pay the taxes and maintain all the properties on a $174K government salary?  You know?

“You can’t get rich in Congress unless you’re a crook.”   ~ PRES. HARRY  S.  TRUMAN

 

 

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