Is America Heading Towards Socialism?

In a word........yes, but not the 'traditional' socialism we've come to know and understand. This brand of socialism is going to be different. Why? In order to understand the new form of American socialism already underway, we've got to know what socialism is truly perceived to be in the first place.

According to the Merrian-Webster Dictionary, Socialism is defined as such:

1 : any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods

Socialism comes into play when capitalism fails. It isn't new to anyone that recently capitalism has gotten a bad rap in America, and rightly so. I myself, having suffered through several capitalism downfalls in 1987, 2001 and 2007 can fully understand the current interest and desire to embrace socialism at this time in American history. Personally, I'm sick of the ups and downs and calamities that befall my financial well-being through no fault of my own. I'd prefer the steady, secure lifestyle socialism feigns to project (if I didn't value my freedom so much). As of this writing, The US Government, under President Obama has taken control of the banks, the mortgage industry, the insurance (AIG) industry, General Motors, 1/6th of the economy through health care reform and recently took over all student lending. Your next question then, would be, since President Obama is directing the country along the typical socialist path (wealth distribution through massive taxes), Obama must be a socialist? Here's where the comparison diverges and the realization that American socialism will be different.

Hard core socialists do not think that President Obama is a socialist. Instead, they consider him and his policies to be that of one who is an 'elitist' and NOT in tune with the struggling American working classes. According to this article from The World Socialist Web Site, entitled No Working Recovery For The Working Class:

To the extent that a slight increase in production in the real economy has occurred, it has been bound up with a massive assault on the jobs, wages, benefits and living standards of the working class. The ruling elite, spearheaded by the Obama administration, is using the economic crisis to effect a permanent reduction in the conditions of workers.

New and lower benchmarks for wages and working conditions are being set that will remain in place. They are not temporary. On this basis, corporate profits have soared despite near double-digit unemployment and depressed consumer spending.

The Obama administration, which has pledged to double US exports in five years, appears to be basing its economic strategy on driving down American labor costs to the point where US manufacturing can be at least partially revived as a cheap labor center for export abroad.
Facing record levels of state debt and budget deficits, the US is seeking to increase its exports at the expense of its rivals, but so are all of the other major deficit countries. At the same time, the emptying of state treasuries to rescue the financial elite has increased the pressure for draconian austerity measures to reduce government outlays. This, in turn, can only further depress consumption, making the competition between countries for export markets all the more ferocious and increasing the likelihood of outright trade and currency wars. Under conditions of long-term mass unemployment, declining wages, growing poverty, record personal bankruptcies and soaring home foreclosures, the entire economy increasingly resembles a house of cards.

President Obama is personally destroying the working classes (that's you and me) while having done nothing to regulate or change Wall Street (capitalism) which is what got us all into this trouble in the first place. I wouldn't be calling America's new path 'The Road Towards Socialism'. Nope, I'd be calling it 'The Road Towards A New Obama World Order'. For the 50 or so, Wall Street moguls, who got us into this pickle, Obama seems intent on punishing the remaining 300 million US Citizens for their crimes.

The US Labor Unemployment rate may show an increase of 162,000 jobs (March '10) but what Obama failed to mention in his 'See, I told you so' speech was that 88,000 of those jobs were temporary and 48,000 were the Census workers. Duh? Underemployment (temporary, part time, no longer looking) is really at 16.9% and 9.1 million people who desire full time work are only working part time.

What's the end game here and what's in it for you and me? I'm sorry, dear readers, I know I get a lot of slack because of my dark outlook on life, but if I am to give out financial advice, we all have to squarely look at what is coming down the pike and we have to prepare for our financial futures. How are we going to survive? How are we going to get through this? How are we going to make it anymore?

We've got crushing, regressive taxes coming our way. Practically every single local, cable or world news show yesterday addressed the possibility of a VAT tax being levied on us in the very near future. That will be an additional 10-20% tax placed on every single consumable item on top of the taxes we already pay. Despite Obama's pledge to 'not raise taxes on 95% of Americans by one dime' Obama immediately started his presidency by passing a cigarette tax to help fund SCHIP. Next came a capital gains tax increase which will affect all our 401K's. There's a Carbon Tax on the horizon. Over 150 European nations already pay the VAT tax. Iceland 24.5%, Norway 19%, Germany 15% and UK 15% to name a few. All of these nations have massive, steady unemployment, productivity is at a standstill and are starting to see a populace exodus (desperate & destitute Iceland citizens flee to Norway for jobs) as more and more people need to escape from their socialistic living hell.

Tell me why, as Europe pulls away from it's destructive socialism and leans more towards the free market system, is America plunging towards a system of power that is 35 years behind it's time?

Is America heading towards socialism?

No. It's heading towards insanity.

If Obama wants to put into place a system that is more fair and balanced, I am all for it! I understand the theory, the method and the need. But there comes a point of no return and a tipping of the scales that leans on the surreal. A regressive VAT tax will obliterate consumption and bring production to an almost complete halt. It will annihilate jobs. It will devastate this country. It will destroy our American way of life. There are no ands, ifs, buts or nors here. It WILL put an end to our freedom, for we will be so entrenched and mired in debt and taxes, we'd barely have the strength or stamina to beg for a breadth a fresh air. Provided they don't tax that too.

And so the beat goes on.