Quote:
Originally Posted by Nebe
Bank bailouts and stimulus to rescue large too big to fail companies, which result in bonuses is nothing more than socialism for the rich.
Posted from my iPhone/Mobile device
|
Actually, it was just socialism. It is redundant to say socialism for the rich. Under socialism, as it is practiced, the rulers are rich. Everyone else is "equal." But not rich.
Banks that exist under socialism are its system of controlling the amount and flow of money. So they have to be supported by government (bailed out). In a free market capitalist system, banks are not an arm of government, but purely private entities, and would cease to exist if they were not profitable.
Big companies under socialism are the means of production and are the conduit for which "workers" are employed and paid. So they, also, must be supported by government (bailed out). In a free market capitalist system, companies that are not profitable, no matter their size, would go out of business.
Government stimulus of the economy is socialism's attempt to maintain its control and regulation of its system of social welfare without having to resort to armed force and rationing. Controlled economies generally fail due to lack of the motivational element required for humans to do things without being coerced to. In a free market capitalist economy, work and productive innovation is stimulated by self motivation in order to survive and thrive. The more that motivation is replaced by government regulation, the more government must stimulate for an economy to work.