In the second decade of the 21st. Century, the U.S. has destroyed free market capitalism using a dual approach. The first thrust of the anti-capitalist agenda involved the irresponsible and often illegal actions by the U.S. Government and various state, county, and city governments. Twenty-six states are in violation of federal law by operating their budgets using illegal deficit financing. The federal government is legally allowed to use deficit financing, but the creation of a National Debt that is more than 100% of the yearly U.S. GDP is outrageous.
The second thrust of the anti-capitalist agenda involved the destruction of the U.S. securities markets by turning them into a casino of manipulated speculation that swindles honest investors and greatly enriches a few large institutions and some corrupt governmental insiders. Congress went so far as to pass special legislation that forbids the prosecution of members of Congress for insider trading.
History will note that the destruction of free market capitalism took place on October 3, 2008. This was the day that congress approved the $ 700 Billion ” Troubled Asset Relief Program” known as TARP. TARP was designed while George W. Bush (43) was president. While Bush was essentially in hiding, at the end of his presidential administration, his two assistants, Ben Bernanke and Hank Paulson, duped congress into passing TARP. As bad and as un-needed as TARP was, the free enterprise system probably could have recovered except for the fact that Obama was then elected president.
When Obama assumed the presidency in January, 2009, he defended Bush’s mistakes and extended most of them. The election of Barack Obama institutionalized the anti-capitalist actions of Bush (43). Obama extended and institutionalized the belief that compelling social needs allow the federal government to take federal tax dollars and redistribute them to Wall Street. Under Obama, the belief exists that the federal government can distribute tax dollars as they choose even if there is no legal authority to do so.
With about one-half of all adult Americans paying federal taxes and about one-half of Americans paying no taxes, it should be abundantly clear that those who now pay taxes will pay a great deal more in taxes in the future. Americans will soon see something that has never been seen before.
Just as some state governments were on the edge of bankruptcy, some state governments raised taxes to pay for past irresponsible actions. California is now taxing their businesses and citizens to pay for irresponsible spending from the past. Citizens from California who would be required to pay a large portion of their wealth in state taxes are leaving the state for states with much lower tax rates. This same concept will soon be seen as super-rich Americans leave the U.S. and become citizens of other countries around the world. After a period of time, the rich will follow the super-rich and reside in other countries. When the working-middle income citizens develop an understanding that it does not pay to remain an American Citizen, the U.S. will become one very large Detroit. Empires rise and empires fall. Some people might think that a country the size of America is too big to fail. That was the thinking about some banks in America. The banks were too big to fail. Some failed and others survived with the help of a federal bailout. As the wealthy leave the U.S., the federal government will not be able to steal enough money to continue the Ponzi scheme of Bush and Obama !
R. Van Conoley