PHASE ONE, LOOSE ENDS
Part 9 of a Series
August 26, 2004
Phase one of the Reagan Renaissance has been devoted to making as many people as possible aware of the specific problem that underlies almost all of the other myriad problems, both economic and political, that confront Americans today. Socialism is the fundamental problem that lies at the root of virtually every other problem in America. And the biggest threat posed by socialism is its threat to freedom. Because there is no rational economic reason for people to voluntarily choose socialism over capitalism, socialism must be mandated by government and imposed on the people. Because socialism and capitalism are incompatible, the economic threat posed by socialism will eventually and inevitably result in a US sovereign debt default or hyperinflation. For the time being, the term Reagan Renaissance is simply being used to reference a plan designed to completely end socialism in the United States. Once the threat posed by socialism has ended, the ensuing burst of freedom in the United States will poise the country for an unparalleled period of economic growth that will fuel an unprecedented period of peace and prosperity throughout the world. We have some rough waters ahead but are only a decade or two from what will eventually come to be known as the Reagan Renaissance. Before moving on to the second phase of the Reagan Renaissance plan, there are a few loose ends that need to be wrapped up.
The boarding up of our factories or their crating up and shipment to China has not gone unnoticed by anyone. The emailing, faxing, or phoning of many of our service jobs to India is still increasing. The outsourcing of jobs has been a predictable trend and one likely to be with us for the foreseeable future. A related factor has been the progressive lowering of educational standards in America, a trend for at least 50 years. Some of you have no doubt given a considerable amount of thought to this question. Socialism fosters consumption and inhibits savings. My thoughts have had more to do with the missing capital from our deficient savings pool and how it might have been invested in research, education, training and capital equipment to keep America at the leading edge of innovation. Theoretically, nations at the leading edge of science and technology would be positioned to take advantage of the higher paying jobs leading edge technologies provide. A savings short society handicaps itself by hindering its ability to use capital to remain at the leading edge. Intellectual capital and financial capital are symbiotic assets that foster growing economies. The dumbing down of Americans is a double whammy. Profit and competition are the mother and father of progress. Creating a government monopoly on education was silly. While some might argue that both political parties may have contributed to these problems, clearly the political party that sponsors socialism should be held accountable.
I am still receiving emails that discuss third political parties. It is reasonable to make the assumption that most of the members of most conservative third parties are really disenchanted or frustrated former Republicans. As a related matter, I have taken a fair amount of flak about the deficits under President Reagan and about his back pedaling on some of the tax cuts. In truth, there have not been (m)any Republicans that have been willing to confront the socialists head-on about the less prominent socialistic programs, let alone confronting them about Social Security. Not even President Reagan was willing to "touch the third rail of politics". Think for a moment about the magnitude of the symbolism and the power conveyed by that statement. It implies that Social Security has virtually become an impregnable suit of armor for every other socialistic program. Against the Social Security shield, is it any wonder that most Republicans or other conservatives seeking elected office quake at the challenge, "If he is willing to go after school lunches (substitute the socialistic program of your choice), will your Social Security check be next?" Social Security has effectively won every battle for the socialists and then stood guard to protect every other socialistic program from any challenge. In effect, Social Security has become the equivalent of an invincible guardian for socialism much like the mythical Greek warrior, the seemingly immortal Achilles. But therein lies the opportunity to completely end socialism. Like the legendary Greek warrior, Social Security has a vulnerable spot, an Achilles Heel. In fact, there are at least three of them:
- There is no Constitutional authority for socialism.
- In a "free" country, it is a contradiction of reality to have a government mandated (compulsory) retirement scheme.
- There is no rational basis for socialism.
Taking on a formidable opponent, especially in a head-on frontal attack, takes numerical superiority, superior leadership, superior firepower, a superior plan, or some combination of these elements. No third party has any of these elements nor do they offer any prospect of developing them in the foreseeable future, let alone within the next four elections before the Gokhale-Smetters clock runs out. On the other hand, if the Reagan Renaissance plan can be successfully launched, the Reagan Wing of the Republican Party would be fortified and have the potential to confer all of these capabilities on the Republican Party. Social Security is a pyramid scheme, and like all such schemes it can be visualized as an inverted pyramid balanced on the point. Because it is so large and because there are so many people involved in its huge mass, it has a tremendous amount of inertia to overcome. But once tipped, it will crash like the albatross it is. Absent their Achilles, the other socialistic schemes will topple like dominoes.
The Perfect Storm
Americans are not going to be able to avoid all the ravages of Jim Puplava's Perfect Storm. Events that have already occurred have already ensured that it is unavoidable. Crises and tragedies also create opportunities. And every adversity or danger offers an opportunity to minimize or avoid the worst of the dangers or damages. There are almost no problems facing America that cannot be fixed or significantly improved by completely ending socialism once and for all in the United States. Gokhale-Smetters absolutely predicts that socialism is inevitably coming to an end in the United States through sovereign debt default or hyperinflation. There are no free lunches forever and you cannot get something for nothing forever. Properly explained, this is something that anybody with an IQ higher than room temperature can, and will understand. How and when socialism comes to an end, is what the Reagan Renaissance plan is really about; sooner and by choice with the creation of new opportunities, or not much later in an involuntary catastrophe.
Balancing Cash Flows is a Medicare Myth
Picking up Part 8 where we left off with regard to Professor Kotlikoff, "I would tend to take issue with any solution directed at simply balancing cash flows." There is no doubt that future projected cash flows can be made to appear as though they are balanced in a spreadsheet by varying any number of assumptions. Debating mathematical or economic assumptions is playing the socialists' game and playing on their turf. I would raise two points. First, Congress has no Constitutional authority for Social Security. Second, Social Security is a mandatory program. Mandatory is the very antithesis of freedom. We must demand that Social Security become a voluntary program giving each person the right to choose whether or not they want to participate in Social Security. If Social Security is the universally popular and wonderful program that Democrats believe, then Democrats should have no objection to giving every American a one time choice to opt out or to opt into Social Security. If Democrats are correct about the merits of this program, they should have nothing to fear. Practically every American would choose to participate while those opting out would be free to sail their economic ships on a separate course fending for themselves for their retirements. For those Americans opting into Social Security, accurate balancing of projected cash flow assumptions would become an issue of paramount importance tangentially related to our discussion of Medicare below. One final thought, if Democrats refuse to allow making participation in Social Security an individual voluntary choice, the lies and the myth will finally be exposed for anyone to see.
Without socialism, the Democratic Party is a vacuum with no reason for existence. With rare exception, almost everything the Democratic Party believes or stands for is wrong because their principles are based on the flawed premises of socialism. Current law mandates that the catastrophe we face under Gokhale-Smetters is going to come to pass. Medicare is a double-barreled tragedy in the making. There is no medical, political, or economical solution possible nor is there any combination of the above that can actually fix Medicare no matter how it can be made to look in a spreadsheet. Medicare must be ended before the boomers become the iceberg that threatens to puncture the United States. One barrel, debt default, would be the equivalent of attempting to swim to safety in the frigid waters of the North Atlantic. The second barrel, hyperinflation, would be choosing a lifeboat with no paddles. The United States is facing a brush with death and the die will be cast before we reach the election of 2016. Our best shot at avoiding this fatal collision is a combination of melting the Medicare iceberg coupled with a major course change, doing an about face by making Social Security a matter of individual choice.
The leaders of both parties have seen the battle ahead coming, but both have been hoping that Greenspan's "magic" elixir would keep on working long enough to just get through the next election. The first priority for a "professional" politician is to remain in office. Out of office, you have no power and are no longer a player able to effect the outcome. This fact, coupled together with the "third rail" mentality, partially explains the Republicans' negligence in not discovering the magnitude of the problem and their continuing negligence in not making the public aware of what we are facing.
Medicare is by far the more dangerous threat, but I believe that tackling Medicare first would be a mistake. There could easily be enough Democrats who believe in the illusions of socialism and whose defense of Medicare would delay making the essential changes for too long. If the socialists' Social Security armor were to hold long enough, we will hit the Medicare iceberg based on our momentum. Once we have passed the Medicare point of no return, a collision becomes inevitable. Once passed the point of no return (2012 plus or minus a year or two), making the right choices will be too late and no longer matter. It is important to never lose sight of the fact that Medicare can not be fixed; Medicare must be ended. Once the crisis has safely passed, there will be plenty of time to explore and find reasonable ways to deal with health care financing.
Targeting Achilles' Heel
Unlike Medicare, the problems caused by Social Security can be solved. The Cato Plan to voluntarily privatize Social Security based on every individual American's personal choice is basically sound, and can very likely even be improved. This is not only Social Security's Achilles Heel. It is also the Achilles Heel for the Democratic Party. Stripped of their armor, the Democrats will have no defense for socialism. Without socialism, Democrats have almost nothing else to offer.
The maturing liabilities of socialism, already cast in concrete by law, will lead to bankruptcy by debt default or end the United States through hyperinflation. Many current authors are blaming Greenspan and the Federal Reserve for the growing debt and inflation problems. Greenspan and the Fed are simply reacting to America's actual underlying fundamental problem, socialism. Socialism was mandated for Americans through laws passed by socialists found primarily in the Democratic Party. Lacking Constitutional authority, FDR and Congressional Democrats created Social Security by Act of Congress and made Social Security mandatory for working Americans. Lacking Constitutional authority, LBJ and Congressional Democrats passed the Medicare Act making Medicare taxes mandatory for working Americans and Medicare the health plan for most Americans over the age of 65. It might not be naive to believe that Democratic voters can be informed and educated to recognize socialism as being the evil that it is. But I think it is a virtual certainty that "professional" politicians in the Democratic Party are going to defend the delusions of socialism to the death because socialism is the sole source of power for politicians in the Democratic Party. If we are going to change the existing law, Americans that love freedom and Americans that believe in capitalism are going to have to take action. Phase two will be centered on discussing actions that offer the best chances for making the Reagan Renaissance a reality.
If the Reagan Renaissance plan fails and no other effort is able to rationally revise our laws, socialism will carry us past the Medicare point of no return. Once past the Medicare point of no return, the United States is destined for the ash-heap of history. And it will happen just as quickly as the collapse of the Soviet Union. If we are to avoid this tragedy, every American must be urged to exercise their remaining freedom and demand the right to choose whether he or she wants to participate in Social Security. Voluntarily privatizing Social Security along the lines of the Cato Plan will expose the illusions of socialism for what they are. Medicare and any other residues of socialism in the United States can then be ended quickly once the illusions have been exposed and everybody is finally able to see through them.
Phase Two of the Reagan Renaissance is about to get underway. Finding the path to the Reagan Renaissance will require some tour guides and some white knights. Have you contacted your friends and families? Have you sent a link to these articles to Republican office holders and candidates that represent your district? Have you informed them of your views on socialism and that you are Pro-choice? Are you a New Yorker or going to attend the Republican Convention? Create some BZZZZ at the Convention-Print this article and make a few hundred copies to pass out as leaflets on the convention floor. Please email a link to this article and one to the Reagan Renaissance Archive to your favorite conservative third party, web site, political analyst, talk show host or any other conservative organization that might have an interest in turning up the heat in order to melt the ice. One man standing on the dock pushing on the bow of the Titanic will eventually push the ship away from the dock. Avoiding the iceberg in our future is going to take a lot of hands on deck. And time is of the essence.
© 2004 Reagan Renaissance
The Reagan Renaissance is being moved to the launch pad. It will not be long before we are ready to begin the count down. Have you contacted friends, family and other interested parties? Leveraging the power of the internet will be a vital part of the rocket fuel needed to power our engines to overcome gravity and reach escape velocity. Please send your friends, family and people that you know that are conservative, or to anyone who wants to restore the Constitution's limits on government or to end socialism, this link to the Reagan Renaissance Archive. Please post links to the Reagan Renaissance Archive at internet forum groups, on internet bulletin boards, and internet newsgroups. How far and how wide you spread the word about the Reagan Renaissance will be a major determinate for its success. My thanks again to Financial Sense Online and the Puplavas for allowing me the opportunity to make these views publicly available.
Corpus Christi, Texas