Saturday, July 14, 2012

Socialism and other Social Marketplaces

Socialism is basically a centrally controlled Social Marketplace owned by government.

There are many forms of centrally controlled Social Marketplaces that don’t fit the classical definition of Socialism — Obamacare, for example, isn’t strictly socialized health care because the private sector carriers administer the programs the centralized federal bureaucracies largely define. The taxation/cost shifting to support coverage of those with lower incomes is in part paid for by redistributing overpriced premiums paid by those with middle to higher incomes. The overpriced premiums are basically a hidden tax on middle income folks on up, collected and managed outside of ‘normal’ government revenue and spending channels. Socialism it’s not, but a centralized social marketplace it is. At least it’s not the Mandated Employer Subsidized Socialism (MESS) that HillaryCare was all about.

Home financing via Fanny and Freddie are similar examples of federally centralized Social Marketplaces that have run amuck with a mix of private and public sector financial enterprises being puppeteered by federal bureaucracies and politics. The fiscal malaise we are currently stuck is in directly related to the failure of this Social Marketplace AND the continuing denial of the federal government playing the key role in it's bubble bursting.

There are plenty of other examples of centralized Social Marketplaces in the US and around the world that don’t fit classical Socialism but should be treated with equal distain. Then there’s public schools — they are basically socialized education save for how the funding is mixed between local and federal sources — trending towards more federal control, at least until the feds figure out they don’t have the money…

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