Saturday, May 5, 2012

I can find lots of places to invest YOUR money

Capitalism works because people and organizations are held accountable. Socialism does not because no one is held accountable. Example: Fraud in the Medicare and Medicaid programs are estimated between $60 and $100 billion a year If a company were losing money like this, they would be bankrupt and the executives facing jail time. (Office furniture would become cheap for a limited time.) This is because they (The politicians and bureaucrats) are spending someone else’s money. We don’t even know how much fraud is occurring, just estimates. If this was YOUR money, I am certain that you would track down what the hell was happening and not just accept reports issued by group. Heads would roll simply because no private person or organization COULD afford to allow this to continue on this type of scale. Only government could absorb this kind of losses without dramatically effecting the entire organization. The money is accountable in business because of the check of profits. The losses are such that they would impact profit, if not eliminate it altogether. The company, person or organization would go bankrupt or make changes to stop the losses immediately. They simply could not afford NOT to take drastic action, or else have drastic action taken against them. (Not just by bankruptcy, but prosecution by the legal system) Whereas in government, all they need to do is raise revenue. The threat of prosecution is slim to none. The threat of bankruptcy is non-existent. It is the people’s money after all. And the services are important enough to provide those who administer it jobs and income of their own. (At least this is the justification) Not exactly why companies exist although the side product of capitalist activity is just this. The overall point is that capitalism works better than any other economic system simply because the system itself provides the accountability of resources that is lacking in socialist and communistic economic systems. (Government allocation of national resources) In other words, I can find lots of places to invest YOUR money. Places that no way in hell would I put my own resources into.

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