Saturday, May 20

USA in Transition

 From 1776 until 2000, the USA was firmly entrenched in a Democratic Republic form of government.  There were a few communists and socialists lurking about but nothing to worry about.  However, after WWII, the USA has been gradually moving towards socialism with its:

  1. Public Education (K-12)
  2. Public Transportation
  3. Public Fire Departments
  4. Public Police Departments
  5. Public Water Systems
  6. Public Infrastructure (highways and bridges)
  7. Public Parks and Recreation
  8. Social Security System
  9. Unemployment Insurance System
  10. Medicare and Medicaid
  11. Semi-Public Healthcare (obamacare)
  12. Postal Service

Anything that is considered public is a form of socialism and it is paid for by Taxes...

Now the idea about taxes is that everyone is supposed to pay their fair share for these services; however, the wealthy don't want to pay taxes so they hide their money in off shore bank accounts like in the Cayman Islands...   When taxes go UP, it does not really bother them because their money is sheltered.

Increasing taxes impacts he middle classes mainly...

Now there is talk about the government offering more services to the public which is going to come from TAXES but only on the wealthy.  How is that going to happen, if the wealthy shelters their money away from taxes?

In addition to these services, there is a movement to push for green energy and do away with fossil fuels...  SOUNDS WONDERFUL...
  1. The infrastructure is not there to support EVs
  2. Jet Fuel (fossil fuels) is still needed for commercial aircraft and the military
  3. EV batteries come from China (China is not doing away with fossil fuels as it is too expensive to switch over)
  4. EVs are too expensive for the general public to purchase
  5. When wages increase, the costs of all goods increase proportionally putting us right back to square one

There is really nothing wrong with moving in this direction as long as the infrastructure is there to support the transition....  without the infrastructure it is like putting the cart before the horse. Not really a smart move.

When the USA makes this transition, it is going to make them economically weak at first while the transition is taking place.  With our economy weakened, China could easily surpass us in GDP.  This is not something that we really want to happen as it will remove the USA from the top of the global pyramid on which it now sits.


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