The Bankruptcy of Socialism

Socialism is a bankrupt political and economic philosophy. This is not just an opinion but is borne out by history and facts. Let's look at a socialist country such as Italy. In Italy, for example, unemployment in the last seven years has been between 7.5% to 9.10%. What is most disturbing though, is the youth rate of unemployment which usually hovers around 30%. This is devastating to any economy.

Why is this the case? It is very simple. A socialist system such as in Italy, discourages employers from hiring. This is due to the fact that unions have a virtual stranglehold on the economy. You see, in Italy workers are practically guaranteed a job once they're employed. An employer cannot fire them unless there are unusual circumstances. It is not hard to figure out that no employer would hire a worker, knowing that he can never get rid of him/her, so employers do not hire. This in turn has the devastating consequences that follow. In the United States, we just had an example of what socialist policies can do. One of the biggest companies in the world, GM, had to be rescued from bankruptcy by the U.S. government. The main reason for this failure was that the unions strangled GM into bankruptcy. GM was paying nearly full salaries to workers that were laid off - a requirement of the union. What started out as a movement to aid the workers, has resulted in the workers getting shafted by unions. Unions only care about their own power, they care little for the common man.

Despite this glaring example, socialism is on the rise in South America and now in the United States with the Obama Administration. Socialism flies in the face of sound economics policy, yet we keep on going to it. This type of behavior is self-destructive. When will they learn? They never will because socialism is not about sound economic policy, it's about making people feel good, it's an emotion not a reasonable position. Socialists will never understand this. This is what we have coming to America.