Is America becoming socialist?

The Times of India ^ | 21 Sep 2008 | Swaminathan S Anklesaria Aiyar

[vietvet67]

Socialists, like Hugo Chavez in Venezuela or Indira Gandhi in India, are famous for nationalising the biggest corporations. But the US government has taken over three of its biggest corporations within two weeks. Has the US turned socialist?

American right-wingers moan that this is indeed the case. Meanwhile, Indian leftists are stunned at nationalisation in a country they view as pitilessly capitalist.

Two of the nationalised corporations, Fannie May and Freddie Mac, are by far the biggest mortgage lenders in the world, with $5 trillion of mortgages and loans on their books. That’s five times India’s GDP, to put their size in perspective. The third corporation, AIG, is the biggest insurance company in the world. No nationalisation in professedly socialist countries was ever so big.

Leftists suspect the US takeovers aim to rescue rich shareholders. Not so. The government will acquire 79.9% of the shares of these companies at virtually zero cost, pushing down the share price close to zero. So, rich shareholders have been wiped out, and the bosses of all three corporations have been sacked.

This is not a rescue of the rich. It is a rescue of ordinary people who need mortgages and a functioning housing market, which would have collapsed had Fannie May and Freddie Mac gone bust. The takeover of AIG will save millions of insurance policy holders from losing their coverage and annuities. The takeovers aim to prevent financial panic from spreading and dragging down the whole economy, as happened in the Great Depression of the 1930s.

The usual procedure in a capitalist welfare state is to let mismanaged companies go bust, penalising the shareholders and managers, and then provide safety nets to those adversely affected.

[FlingWingFlyer]

Yes.

[unixfox]

Just think, with the government owning AIG we will have a good start with "universal" healthcare!!

[CommieCutter]

Next up: Nationalized Oil!

[unixfox]

Yep, the frog is boiling.

[TheNewPundit]

Yes and no. It really depends on proper management of these takeovers. I believe the intent is to use funds to soak up ownership until they are out of the water, then place the stock back onto the public marketplace.

Of course, we all know what happens when the government intends to do something on a small scale. Social Security had similar beginnings.

[Dr. Ursus]

No, we’re an Oligarchy,Thank You.

[cripplecreek]

Sure looks that way to me.

[ChildOfThe60s]

No. We are already Socialist.

[yongin]

The truth is when many fiscal conservatives talk of cutting govt, what they really mean is cut pork projects in other states but not in my community.

[Hattie]

Genuine Americans aren’t ever going to be socialists. Many visitors and idiots are.

[Lurker]

Becoming?

Hell, we've been rushing headlong into Socialism for the last 45 years.

L

[ripley]

the correct question is; “when will america stop being socialist?”

IMHO

[Emperor Palpatine]

Is this guy Catholic?

[Emperor Palpatine]

We have been since FDR and his ^*$$%#)% New Deal.

[Scutter]

Of course it is! Why would you think anything else? Let's think for a moment why:

1. The Constitution hasn't served as a limit on Federal Government power for over 50 years. Congress does what it wants, and the Supreme Court even invents "rights" that aren't there
2. A large percentage of the population doesn't pay any taxes at all, and in fact some even get "tax credits" - a tax refund for taxes they never paid. A majority of the population thinks its OK to take money from one group and give it to another.
3. Our electoral system lets any idiot vote, and the press and many independent groups make it a goal to to enroll as many of these idiots as possible. A large number of these idiots can't even tell you who the current VP is.
4. Once elected, politicians have no incentive to do anything other than spew partisan rhetoric and negotiate deals to bring pork back to their states. The electorate enthusiastically votes these self-serving, pork-laden, partisans back into office year after year.
5. Congress routinely passes a budget that spends more than it takes in. This is a "hidden" tax on future generations.

Quite frankly, with all that going for us, I'm surprised things aren't worse than they are.

[Silly]

Becoming?! BECOMING?!

[villagerjoel]

You’re absolutely right. Everyone’s too comfortable for anything to change for a long time.

[LiberConservative]

I’m not an expert, but these recent buyouts are scary. I think it might be a little worse than the US becoming socialist. We are headed towards financial disaster. I hate to be doom-and-gloom, but this weekend our economic future has never looked darker. And the more government owns and controls, the less power we have to allow capitalism and the free market to correct itself. We are left with the government running the show.

[libh8er]

“Swaminomics” ? Lol.