The purpose of this post is to explain in simple terms why government takeovers will hurt the poor and empower the rich. It is so simple and I have no idea why Republicans and Democrats in America do not understand how Obama’s government takeovers will hurt the poor and give money to the rich. It is the exact opposite effect we all want.

government takeovers cause poverty

Government takeover - socialist republic style - Russian housing today

I have been living in Eastern Europe a good part of my life. I am American with a Master’s in Economics from Trinity. The reason is when there is a transfer of control of labor and capital from the private sector, the rich get richer and the poor get poorer is as follows:

  • After a government takeover you will be working for another man’s wife. No one wants to do this. Do you? The expansion of big government means either higher taxes or debt (future taxes). This equates to your productive day going towards working and paying for your neighbor’s consumption or future consumption, that is you will be working for another man’s wife. There is not other way to look at it.  When this happens clever people find a way around the system and become super rich. This is what I have seen in Eastern Europe. I invite you to come here and see what the nice warm fuzzy secure feeling government is giving you now, will result in.
  • Rich get richer in state takeovers – I have spent a good part of my life in Socialist and ex-communist countries, where I live now.  In every case without exception there are a small percentage of rich and many poor.  The difference between the rich and poor on a whole is much greater than any free market economy. I see the super elite from communist times simply become the new Russian oligarchs. If you think I am a teabagger, please come and live in my neck of the woods for a few years and you will change your mind when you live in gray concrete blocks of flats with public health care with stupid rules.
  • Government always does a poor job – Compare any free enterprise like UPS with a government agency like the post office. A private university with a public. When was the last time a government worker created something innovative like google or Microsoft.

When did a Federal or State takeover make a country prosper?

What worked for America for 250 years to make America great, that is rugged individualism,  has somehow become politically incorrect.  What did not work for the Soviet Union for seventy years, that is state control over health care and markets is in fashion. It is beyond me how the Hollywood movie star elite like George Clooney and Matt Damon, and do gooders who support this type of Federal takeover, consider this helpful to others. You will be hurting those you want to help. You will be empowering those you want to put down.   you do not think so I invite you to leave your American lifestyle and live as I do in Eastern Europe you will see your ideology change.

I will end on a positive note. My friend an American liberal came here five years ago as the biggest supporter of socialism.  She wanted to bring back the revolution. She is now seeing things more clearly and heading back to the land of America with a change view. I personally invite anyone who believes government takeovers are good or a Republican myth, to come live here.