Double Shock – Socialism Fails!


Following yesterday’s impressive news from Ford Motor Company of their $1 billion profit in the third quarter, one may have wondered how the two government run American automakers fared by comparison. The answer was not long in coming, as following immediately on the heels of Ford’s news was a very dire report that GM, Chrysler are struggling mightily, and that their eventual demise was very likely only briefly delayed by the government’s intervention including the wasting of $75 billion of the American taxpayers’ money.

Analysts quoted for the story agreed that both companies are far from profitability, are still at great risk of failure and are likely to need at least one if not multiple additional rounds of federal bailout funds in order to overcome their current predicament. Of course, the problem with this is the federal government has no money to invest, already owns a large percentage of these “dead” companies and would simply be throwing good money (taxpayer money) after bad.

In slightly more than 24 hours we have been reminded of the lesson we long since should have learned from watching the second half of the 20th century. Capitalism works; Socialism, Stateism, Fascism fail. For those who are slow learners, this lesson will continue to play out for years to come in the quarterly reports of Ford versus GM and Chrysler, of Geico versus AIG, of J.P. Morgan Chase versus Citigroup and on and on. if someone out there is still not convinced perhaps a review of the performance of Amtrak, the U.S. Postal Service or the Department of Education would clarify things for them. Despite monopolies in both passenger train service and mail service, the federal government can’t profitably run Amtrak or the post office! And since the federalization of the American education system our world ranking has declined at a statistical rate that borders on impossible.

The government has never, can’t now, nor will ever be able to successfully run anything. The sooner the American people get this fact through their collective heads,  the sooner priorities can be adjusted to getting government out of the way of business resulting in the best environment for the potential prosperity of the greatest number of Americans.

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3 Comments

Filed under Financial, Government

3 responses to “Double Shock – Socialism Fails!

  1. David Gunn

    Given the annual losses endured by airlines and highways, why do you imagine a passenger railroad would operate at a profit?

    • MAC

      David,

      There’s absolutely no correlation. First, highways are not businesses and more importantly would only strengthen my argument as they are also government run train-wrecks (pun intended) with bloated payrolls, governing boards, poor management, etc. Second, airlines such as Southwest and JetBlue are profitable almost every year. The other airlines don’t do as well, but still often make a profit (American Airlines lost $74 million in ’08 but posted a $2.56 BILLION profit in ’07 and a $2.25 BILLION profit in ’06 for a three year total of $4,000,000,000 profit – I’d take that!). Keep in mind also, these airlines have competitors for their service while Amtrak does not.

      Hope this helps!

  2. Just to bring it to your attention, your site doesn’t show up great in the r-crow browser. Anyway, keep up the great blog.

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