Either McCain Is Lying Or He Doesn't Know What Socialism Is

One minute John McCain is calling Barack Obama a socialist. The next minute he's suggesting the federal government should buy up distressed mortgages at inflated prices to save home owners from their bad investments. Guess what John? That's a little bit of socialism right there.

None of the candidates is advocating literal socialism, a system whereby the government controls the basic means of production, least of all Obama, who is advised by Warren Buffett, one of the most successful capitalists of all time. If McCain were to suggest that, he should be disqualified from being president on the basis of mental deficiency.

On the other hand, as I pointed out in the opening paragraph, little bits of socialism can be found in policies espoused by all of the candidates. Sarah Palin's stump speech includes the line,"Now is not the time to experiment with socialism." The truth is we've been experimenting with socialism since the republic began.

Capitalism is our way of life. It's arguably the best economic system ever invented. But it's flawed. It needs help. Unchecked capitalism is subject to unchecked greed. And that can lead to problems, such as we experienced in 1929 and the 1980s and are experiencing now. So, over the years, we've built a few checks and balances into the system. Many of these checks and balances might be thought of as socialism but they are integral to the American way of life.

Start with the very idea of taxation. All taxation is redistribution of wealth. The government takes our money, then uses it as it sees fit for the betterment of our lives. The decision was made long ago that the free market could not adequately provide everything we need: defense, police, firefighters, bridges, roads, etc., So the government takes money from individuals and spreads it around society. McCain is proposing a tax break for rich people and a tax refund as part of his health insurance plan. Palin pushed for a windfall tax on oil companies that she then redistributed to the people of Alaska. So, while they attack Obama for proposing a tax cut for the middle class, they are both for redistribution of wealth.

We learned after the Great Depression that we needed to insure people's deposits in the bank. Everyone is happy about the FDIC insurance they get for free from the government. The government agreeing to replace your cash if the bank screws up? Not exactly free market capitalism. We also discovered that we needed to provide for the basic needs of our elderly. Social Security was born. And even though it has the word "social" right in it, very few people, other than folks on the fringe like Joe The Plumber, would like to face old age without it. Another safety net that most Americans would not like to live without is Medicare. Socialism! Wait until Rush Limbaugh realizes he can use his Medicare card to get cheaper pills than he does in the parking lot.

Anyone notice that tiny little bailout that President Bush spearheaded a few weeks ago? The one where the government committed $700 billion to buy up chunks of American companies? The one that both McCain and Obama supported? Yeah, some socialism in that one.

Our next venture into socialism will provide us with needed health care. We already spend more on health care than any nation in the world, yet 47 million people go without health insurance. In addition, insurance companies do not encourage preventative care and can choose to deny coverage even if you've paid your premiums. In 2000, The World Health Organization ranked the U.S. 37th in its list of health systems, behind Costa Rica, Morocco and Colombia, to name a few. That's a pretty low return for our money. When it comes to health care, capitalism needs a little bit of socialism.

More of my writing on the economy, taxes and "trickle down."

Abe The Accountant

McCain Is Not Bush? - The Failed Economics of Reagan, Bush and McCain

Comments

[politicalmo]

Who is responsible for this deregulation mess anyway? Bill Cllinton and the Democrats? Hardly. Clinton signed the bill but it was Phil Graham who wrote and sponsored the bill. The same Phil Graham that brought us energy deregulation. What happened there? Enron. What's happening now with the deregulation of the financial markets? Wall Street bailout. See a pattern? If anyone should be perp walked its Phil Graham and all of his cronies. But no. Phil is working on the McCain campaign. And you want to put McCain in charge of the economy? PLEASE!!!!­!!!!!!!!!!­!

[politicalmo]

I like secretpolitics and some of the others used to buy the baloney about Reagonomics. But I have come to realize that Bush 1 was right..."i­ts Vodoo Economics.­" It doesn't work. Why is it that after the Republicans have control of the government there is always a collapse? The Depression was preceded by 12 straight years of Republican control of the White House. The Banking or S&L bailout of the 1980's was preceded by 8 straight years of...Repub­lican rule. And now this. A total collapse of the world banking system. Preceded by, you guessed it,...* straight years of Republican control of the White House and six years of control by the Republican congress. If this stuff worked we should be rolling in dough. But we aren't. We are dead broke and in danger of taking down the entire world financial system because someone said deregulation is the way to go!!!!

[David-In-Los-Angeles]

Do not choose our leader at a Time when leadership has never been so critical to our way of life because of your contempt of the current administration. This is a country of checks and balances and while the current administration is lead by a republican, Congress is led by Democrats. The blame of our plight is not the result of one party or the other it is the blame of all in Government and on all of us who allowed them to remain. I too wish for change but change is not found in a candidate's party affiliation but in the spirit and integrity of the person standing at the podium.

Senator McCain spent his Time serving our country in war, serving his men and fellow prisoners as a beacon of hope and strength as POW and serving the citizens of this great country as a leader of change in government. Senator McCain selflessly chose to sacrifice his Time in a POW prison so that others who had spent more Time could be released first.

Senator McCain has a reputation of going against the grain because he believes in an issue and for this he has earned a reputation as being a Maverick and standing on his principals rather than caving to the popular vote. Only great people understand that principals only really mean something when you stand up for them when it is not convenient.

[premenos57]

I commend McCain for his service but that doesn't automatically say you deserve to be President. Anger doesn't lead to sound decisions, in no way, shape or form.

[MrThizzle]

Yeah, Democrats have led Congress for two years, but refer me to the same advantage that Democrats have had of years past in contrast to Republicans majority and threatening to use the nuclear option to press their agenda. You come talk to me in 6 years when Democratic time in the majority is comparable. Don't hide behind a ridiculous comparison to justify your argument.

I love when Republicans tell us to bow down to McCain's war experience when they weren't the slightest bit concerned with Kerry's experience in 2004. Anyone find that odd?

Voting with Bush over 90% of the time certainly is a maverick, a low and middle class maverick.

[SonofLiberty1]

It's just more of the same I'm afraid.

David, I am willing to bet that you have a nice job.

A heck of a lot of folks are out of work because Republicans have shipped our jobs overseas.
That goes against the grain of what America is.

That's why McCain will be bad for America.

[barnettkyspr]

The trouble with Obama's wealth reditrubution plan, however you want to label it, is that it has been tried before and it failed miserably. In theory, it sounds great, take from the wealthy or successful and give it back to the poor or unfortunate. For example, during the Carter Administration, the legislature instituted a "Windfall Profits Tax" on the more successful corporations and business. While this added to the Treasury's coffers, it hurt the very prople it intended to help. Prices went up on the necessities that people bought such as food, medicine, etc. Inflation went up over 10% and over 10 million Americans lost their jobs. The businesses saddled with the higher tax rate just passed that cost on to the rest of us or, they simply moved their operations offshore.
The fact is, tax breaks or penalties based strictly on income levels don't work.
I feel, a better plan would be targeted tax cuts and penalties. For instance allowing a 100% deduction for those investing in alternative energy sources for their homes or businesses. I feel it is amatter of utmost national security. I also have no problem with providing tax breaks for businesses, regardless of their size, for putting Americans to work. Likewise, I feel that those who waste excessive energy or ship our jobs overseas should pay a substatial tax penalty. Americans doing things to help other Americans should be rewarded. Americans doing things that ultimately hurt us all should be penalized.

[Danny]

barnett --" wealth redistribution plan"!! Excuse me, but it was Bush 2 who took from the poor and gave these huge "tax cuts" to the already wealthy (so they could contribute to republican campaigns). Obama wants to restore the fair balance between taxation and services provided for by the GOVERNMENT -- not a dirty word-- for the common good. So that bridges don't collapse as you drive on them, the water you drink from your tap is safe, the air you and your grandparents and children is not toxic, health care becomes a right not a commodity, infrastructure is rebuilt where needed, education at all levels is no longer just for the rich. As for the" wealth redistribution plan" of Bush 2 failing miserably, YES it has failed miserably for the already miserable but been a great success with the already rich. I'll take a chance on Obama's economic plan, a Democratic one, as opposed to "McCain=Bush"'s proven fiscal irresponsibility, and class warfare.

Wouldn't mind a little socialism thrown in. If it's good enough for banks, why can't automakers, mom-and-pop stores, teachers and landscapists try it too?

[laxmimary]

McCains family wealth exceeds 120 milion-8 houses& 13 cars. 2/3 of Americas make less then $50,000-Maverick your complaining about class warfare-make you and your cronies-American corporations particularly those who ship jobs overseas pay their fair share. Or the corporations that have off shore offices like Haliburton so they do not have to pay taxes.2/3 of large corporations pay Nothing in taxes on over 20 trillion in profits. " NO BANKS LEFT BEHIND' ANY PAY CUTS IN WALL STREET OR BANKS WE BAILED OUT?

[jcmanthey]

Is Obama a socialist? Let's see. He basically wants to nationalize health care, so what Medicare and Medicaid have done to screw up health care can be expanded. His "tax cut" is really a tax increase to redistribute income from taxpayers who are a positive force in the economy to the 40% of Americans who are not taxpayers. He basically takes orders from the AFL-CIO including card-check organizing. He doesn't seem to think there is any problem the government can't solve with more taxes and spending.

Yes. I would say he is a socialist. If you wouldn't vote for Ted Kennedy for president, why would you vote for Barak Obama? For that matter, why vote for a rookie like Obama?

As a resident of the proud and ridiculously corrupt State of Illinois, I can share with the rest of the country that Barak Obama has yet to win a contested election in the two (count them, two) elections in which he has run. In one, he got all his opponents thrown off the ballot through nominating petition technicalities. In the second, for the US Senate, he basically ran unopposed after his Republican opponent self-destructed a month or so before the election.

[premenos57]

In case you don't realize it, Social Security and Medicare are both socialist programs. Don't understand socialism? Might want to look it up. The Wall Street bailout is of the socialistic variety. I, too am from Illinois, and in case you have forgotten, George Ryan's corruption led to the death of a family because of the "License to Bribe" scandal. And what party is he? I wonder???

[PanosTheGreek]

People love to throw words around because they sound so bad for their opponents. Here is a dictionary definition of socialism: " a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole. " Socialist? Please! So, you might as well try to find another "scary" word. Here is an other way of approaching this issue: How are Senator Obama's policies that different than President Clinton's? Where was the socialism there?

[jcmanthey]

As long as we're talking about Illinois politics, here is a question for you. Why did Chicago Mayor Richie Daley throw the Democratic candidate for governor under the bus when George Ryan was running for governor? Democrat or Republican, it's just one big happy political family in Illinois.

[saritou]

Socialism is very simple its when you take someones earnings and share then with others. This is America why should i share with anyone what i earn???? I want to keep as much of what i make as possible. Poor Joe the plumber was criticized by the media and O s people for just asking a question, He wants to work save his money and be able to have his business, he never asked to go to Hollywood, drank champagne and mix with those liberals or go to Germany or France and mix with the socialits of those countries. Wake up America soon if O is elected you will not be able to have savings , you will be taxed more on your capital gains because that money will be given to some zho does not pay taxes, like O said to spread the wealth. And you will not be able to own a gun to defend yourself against criminals, car highjackers, robbers etc....Jus­t say adios to some of your rights,

Saritou

[premenos57]

Poor Joe the Plumber was a victim of the McCain campaign. It was McCain, after all, who used him as his debate poster boy. And then Joe complained about media attentio, but he continued to talk to them and go on talk shows. And this deal about guns, people are ignorant about that. It is illegal guns that are the target. What's wrong? Do you have your own armory? And if you're concerned about capital gains, then you must be a millionaire. And adios to our rights, they left with this current administration. Or did you forget?

[mtmd34]

i want to know how this universal healthcare will get paid for without paying higher taxes. people are saying we should be like the british or canadian system but what they dont know is that their tax base is 50% or higher to cover the costs and healthcare is rationed there. we are used to having procedures done immediately and in britain and canada there may be several months wait for needed procedures. when you get to a certain age in canada or britain, you cannot get bypass surgery,dialysis, etc.if medicine becomes socialized, how are you encouraging people to endure 100+ thousand debt of medical school? medical schools would need to be subsidized. how will this affect research? people say md's make too much but the ceo of united healthcare got a 150 million bonus last year and cigna ceo in the 20 million range.that is a lot of healthcare dollars to one person's pocket. i wont see that in 20 lifetimes. be careful what you wish for....

[zamo]

not true - UK base tax rate is 20%.

There is no age limit on treatments unless there are medical reasons not to start or continue treatment. True there is a certain amount of prioritisation occurring - who gets the bypass first: an otherwise healthy person who had a heart attack or a chain smoking, obese couch potato who would probably have another heart attack anyway. They will both get treated but the first guy will probably get his bypass first..

Dialysis is for life - not when your insurance runs out.

Medical schools are owned by the state - as are the majority of hospitals.

UK system isn't perfect but everyone has access to a decent service which won't bankrupt them.

Now if you want a top notch service then try the French health service - but there you will pay even more tax for it.

[secretpolitics]

They state "Unchecked capitalism is subject to unchecked greed" My reply is Bullsh*t. Capitalism when governed by a fair set of regulations to weed out predators, and watched by people who don't sit on there hands, can be permitted to grow without restraint. Fannie Mae and Freddy Mac would not need a bailout if our elected officials had done there job, and need I remind you congress is controlled by the Democrats who did nothing for two years! Why is it the news has nothing to say on this topic! Let me say that it's quite a coincidence that both these organizations failed right at election time and the Democrats have the balls to blame the Republications. I believe the American people should institute a class action RICO lawsuit against the government to bring the true culprits to justice and parade them in front of the cameras for the world to see. Just like they did for Enron. But if Obama's elected that will never happen, Don't wonder why, you know.
And by the way for all those people that bash President Bush, I need to remind you that the economy has been growing for the last 71/2 years, and even today we have not officially entered into a recession. The destruction of our economy has been by the inaction of the Democrats in congress. They need to be "perp walked"

[laxmimary]

fFreddie Mac paid DCI Doug Goodman to kill regulation 3 years ago. He is another campaign chief for the Maverick. Rick Davis Macs campaign manager got a million to help keep Freddie and Fannie from regulation­.The demos were in charge of both Fannie& Fredie-but in 2004 Repubs took over. Enron was caused by dereulation of energy- thanks to Gramm mcCains financial guru. But Gramms wife Wendy walked away with millions from Enron.

[secretpolitics]

Point 2 The free market does provide everything we need and it is not by redistribution of a person's individual wealth. Taxes are levied on the free market for the need of the country, the first being it's defense. State and local government handle police, firefighters, sanitation etc. The very idea that when a person reaches a certain level of income he should be required to spread the wealth around is un American. Even the bible says "you reap what you sow" (Galatians) or "If a man does not choose to work, neither shall he eat." ( 2 thessalonians} The bigger government proposed by Mr. Obama will need to be financed by higher taxes, and a lot more than what he suggests now. The part I believe you forgot about our government is that it is supported by the people and for the people. The people control the government through there representatives, and we have never instructed our government to take our money and "spread it around society" as some suggest we should. Obama says McCain is proposing a tax break for rich people, the truth is Obama fails to state that McCain proposed a tax break for all people, that's right, even the rich, because it's fair and the American way. We don't penalize our people for their success.

[secretpolitics]

Point 1 The need to buy back mortgages stem from the democratic party's failed social experiment with the Community Reinvestment Act. Which penalized banks for not making loans to people who clearly could not afford it. Signed into law by Democratic president Jimmy Cater, strengthened by Democratic president Bill Clinton and the Democratically controlled congress did not properly regulate even though they were told by Republican John McCain two years ago and had repeated warnings by Republican president George Bush that over site was needed. The Democrats sat on there hands and did nothing.

[lili37]

Capitalism should have worked well for all people. But it fell prey to greed, control and manipulation. Capitalism is not working for most people anymore. Socialism in theory, just as capitalism in theory, is quite impressive on paper. When we add the human condition to them, well the result will ultimately be a broken system that works for only the few. Out system is now very broken. What really needs to change is the basic structure of the human condition. That is the only way that we will not create another mess built on greed and manipulation

[Kingsrook45]

This election year we have a choice between a Republican who calls the Democrat a socialist and the Republicans who are socializing the Wall Street debt. While this debate continues, Rome is burns as Nero plays on. Dam, I am having a hard time determining who the socialist is. But the last time I looked at my 401k I know we have a bunch of thieves in Washington and Wall Street. I think they are known simply as traders! In the working world if I failed to do my job I would get fired. Maybe that’s what the American people need to do, fire the whole bunch and hire some new ones. I am going to vote Independent this year, they can’t be any worse than what we have now.

[didlysquat]

I do know that in my lifetime it's the Democrats and Republicans that have brought this country to where it is today.

[TEDVAILL]

Who is the biggest "Socialist" on the national Political scene today? It is George Bush, practically nationalizing Wall Street and the banks (as well as AIG). Good job, George, with the economy over the past eight years. Now Barack Obama and Joe Biden will have to deal with this mess over the next eight years.

The new word thrown at Obama and the rest of his supporters, including myself, is "Communist". A few weeks ago, I posted on YouTube a nine minute video I made entitled "John McCain Not Qualified for Presidency". It has gotten many thousand views, through YouTube and passons, and a lot of positive feedback, and a few right-wingnut comments, like to one calling me a Communist. (I used to be a Republican­.) Check it out, and Arianna - post it on Huffington Post if you want. Ted Vaill

[daw07552]

I am a wealthy american. I am not ashamed of it. I came from a poor background, educated myself and made my money honestly. I live well within my means matter of fact well below my means. Displaying your wealth is not something that is important. The problem is not the Dems or the GOP - they are using us equally. We are a country of excess and want. Everyone lives well above their means. You as consumers are greedy - I can afford a $100K car with cash and won't even notice it in my accounts. However I drive a 4 year old Volvo. I think you get the idea. When are people going to get smart and ask themselves - ghee getting a 110% loan on a house ins;t really smart - no kidding!

Ploiticians , both Dems and GOP, get free health care, free contributions into their personal campaign funds - I.E. the Citizens for X politician. Any of you ever wonder why someone spends $4 million to get a $150,000 a year job? Their retirement plan is their full salary not what you and I get in the Social Security system. I will make it through however I feel for the masses and all I'll do is take less out of my business, invest in equipment, and fall below the $250,0000 a year limit and have assets to live off of for at least 30 more years - by then things will evolve again.

Wake up

[trep]

ditto. thanks for responding so perfectly. However, I do not feel for the masses who are now going through foreclosure because when faced with hardship myself, I did not choose the $110% refi loan option, instead I stuck though it and pulled myself into success rather than all the others who bought and invested unwisely in 2005. It ails me that people and banks can use such poor judgment in the name of green, then get away with it, and gain from it on my tax & 401k dime.

[shapiro567]

I am afraid I am confused about your strategy "I will take less out of my business and invest in equipment". Weather you take the funds out of your business or re-invest them, they are still taxable earnings, right? Either way, you pay higher tax on your business earnings weather that reduces your cash payment to your self or your reinvestment in your business, your choice, but it gets taxed either way, right? Higher taxes will stifle your business growth, right?

[miaczynski46]

Sen.Mccain is suppose to be smart.He better check The Merriam-Webster Dictionary for the real meaning of socialist is.Not what comes out of his feeble mind.

[Tyler T]

I don't think McCain is lying, nor do I think he doesn't know what socialism is. There is no pure political theory in practice in much of the free world, most of it is a mix of different political theory. The socialism being talked about is more of an economic theory than that of a political theory. Socialist political theory along with most theory is very broad and it's silly to lump them into absolutes. If you’re looking for a single distinct identifier, you will never find one.

The argument should be this: Does our country identify more with socialism or capitalism?

Also Bruce, don't try and define a person by the people he uses as advisors or whom he chooses to associate himself with, especially Barack Obama. You used Warren Buffet. We wouldn't want to drop another name like Jeremiah Wright would we?