Tuesday, July 18, 2017

Socialism Must be Financed

Social benefits will FAIL in the US, if they are not financed properly. With the attempt to Socialize Health Care, the Obama administration failed miserably. Thorough financing was necessary to succeed. In other words they wanted to provide Health Care to All (as a Right), without first building the structure necessary to sustain it.

Lets take a look at Socialist France

Nationalization dates back to the 'regies' or state monopolies organized under the Ancien Régime, for example, the monopoly on tobacco sales. Communications companies France Telecom and La Poste are relics of the state postal and telecommunications monopolies.

There was a major expansion of the nationalized sector following World War II. A second wave followed in 1982.
  • 1938 Société Nationale des Chemins de Fer Français (SNCF) (originally a 51% State holding, increased to 100% in 1982)
  • 1945 Several nationalizations in France, including most important banks and Renault. The firm was seized for Louis Renault's alleged collaboration with Nazi Germany, although this condemnation was without judgement and after his death, making this case remarkable and rare. A later judgement (1949) admitted that Renault's plant never collaborated. Renault was successful but unprofitable whilst nationalized and remains successful today, after having been partially privatized in 1996. France increased its 15% minority share holding in Renault to 19% in 2015.
  • 1946 Charbonnages de France, Electricite de France (EdF), Gaz de France (GdF)
  • 1982 François Mitterrand's alliance with Jean-Pierre Chevènement's Socialist Party faction CERES, committed France to an explicitly socialist ‘rupture with capitalism’. Full nationalization (100%): the Compagnie Générale d'Electricité, the Compagnie Générale de Constructions Téléphoniques, Pechiney-Ugine-Kuhlmann, Rhône-Poulenc, Saint-Gobain-Pont-à-Mousson, Thompson-Brandt. Partial nationalisation (51%+): Dassault, Honeywell-Bull, Matra, Roussel-Uclaf, Sacilor, Usinor. Thirty-nine banks, two financial houses, and the remaining 49% of the SNCF were also nationalized, taking the size of the French state to unprecedented levels within a year of Mitterrand's election as President in 1981.
  • The Paris regional transport operator, Regie Autonome des Transports Parisiens (RATP), can also be counted as a nationalized industry.

How about Nationalizing in the US ?

Good luck on that one. The previous administration knew very well that a Mighty opposition would have risen, if they had dared go that route. I think they somehow did it at a small scale, covertly. One example was the deal started by Harry Reed concerning land in Nevada.
So what companies would guaranty funds for Social Benefits?
  • Apple
  • Google
  • Microsoft
  • Amazon
  • Facebook
  • Exxon Mobil
  • Johnson & Johnson
  • JP Morgan
  • General Electric
  • Ford
  • Boeing
Are there any Nationalized companies in the USA?
Here is an extract of Government dealings:
  • 1917: All U.S. railroads were operated (but not owned) by the Railroad Administration during World War I as a wartime measure. Railroads were returned to private ownership in 1920.
  • 1939: Organization of the Tennessee Valley Authority entailed the nationalization of the Tennessee Electric Power Company.
  • 1971: The National Railroad Passenger Corporation (Amtrak) is a government-owned corporation created in 1971 for the express purpose of relieving American railroads of their legal obligation to provide inter-city passenger rail service. The (primarily) freight railroads had petitioned to abandon passenger service repeatedly in the decades leading up to Amtrak's formation.
  • 1976: The Consolidated Rail Corporation (Conrail) was created to take over the operations of six bankrupt rail lines operating primarily in the Northeast; Conrail was privatized in 1987. Initial plans for Conrail would have made it a truly nationalized system like that during World War I, but an alternate proposal by the Association of American Railroads won out.
  • 1980s: Resolution Trust Corporation seized control of hundreds of failed Savings & Loans.
  • 2001: In response to the September 11 attacks, the airport security industry was nationalized and put under the authority of the Transportation Security Administration.
  • 2008: Some economists consider the government's takeover of the Federal Home Loan Mortgage Corporation and Federal National Mortgage Association to have been nationalization (or renationalization). The conservatorship model used with Fannie Mae and Freddie Mac is looser and more temporary than nationalization.
  • 2009: Some economists consider the government's actions through the Troubled Asset Relief Program with regards to Citigroup to have been a partial nationalization. Proposal was made that banks like Citigroup be brought under a conservatorship model similar to Fannie Mae and Freddie Mac, that some of their "good assets" be dropped into newly created "good bank" subsidiaries (presumably under new management), and the remaining "bad assets" be left to be managed under the supervision of a conservatorship structure. The government's actions with regard to General Motors in replacing the CEO with a government-approved CEO is likewise being considered as nationalization. On June 1, 2009, General Motors filed for bankruptcy, with the government investing up to $50 billion and taking 60% ownership in the company. President Barack Obama stated that the nationalization was temporary, saying, "We are acting as reluctant shareholders because that is the only way to help GM succeed"

What about countries like the UK and Germany?

The UK has a list of Nationalized companies that is triple than France.
Germany on the other hand had much under the control of Government, and have gradually re-privatized most. Partial privatization of Deutsche Bahn (the railways) is currently underway (one of the last ones).

America, Social cannot be done without funds!

WE can either remain Americans, or ...... become like Europe, nations legislated by un-elected technocrats, and Kiss Liberty Goodbye.

No comments: