On this episode of the Christopher Scott Talk Show Podcast:
You might not agree with this but I believe the basic reason for the failure of liberal and progressive ideas is because of one thing and one thing only. Financial mis-management typically in the form of free money, sometimes called pensions.
I'm not saying pensions are bad so don't freak out. And this has nothing to do with democrat versus republican. As a matter of fact there's plenty of republicans JUST AS guilty of.
Let me tell you what happens. Government worker unions exercise incredible control over government. Whether it's state local and sometimes even entire countries. Or, it's just liberal policies that push an agenda to give away free money. Programs to help the poor they might say. Nothing wrong with that in of itself.
But when government makes contracts with unions or set's up programs to give away money and there's too much being given away here's what happens:
Government spends more and does less.
This dries up services like road work and police and teachers
Taxes have to increase or the government takes on debt and the interest only compounds the problem
Things fall into disrepair, schools suffer, crime increases all while taxes continue to go up
Businesses leave, ambitious people leave for better opportunities
Cities and neighborhoods deteriorate, physically and socially
There's no jobs, the schools are terrible, the roads are bad
Violence, crime and civil unrest are the result.
I'll give you some examples: Chicago, Detroit, Baltimore, San Francisco, parts of New York, Philadelphia, Oakland, Los Angeles, Memphis, Greece, Venezuela and Russia
It's a very predictable pattern. You don't have to be a political scientist to see this. So my question is where are the fiscal conservatives?
There are some very crafty and intelligent people that blame social decline on all kinds of things:
The jobs dried up. Why did the jobs dry up?
The schools are bad. Why are schools bad?
There's no opportunity. Why is there no opportunity?
It's drugs. Why are so many people trying to escape reality?
It's gangs and violence. Why are people reverting to tribal gangs for protection?
It's all the free money that causes the problems. Fiscal mis-management. All this social issue stuff at the end of the day is mostly just distractions.
It's not because liberal or progressive ideas are bad it's because liberals and progressives always want to give away money and it's an easy sell. Too bad it never ends well. The Liberal Lie: An easy sell that never ends well. It's the great liberal lie. Free money. It doesn't exist! There's no free money!
Specifically I'm talking about guaranteed basic income. Today we typically see that in the form of pensions or retirement benefits. Which is nothing more than age qualified guaranteed basic income. It's all the same thing just a different name. Call it whatever you want it's all the same thing. Free handouts that are costing somebody else a fortune.
If you look at the countries, states and cities where things are going very bad it's because of the welfare programs, or the ridiculous retirement plans or both. It's all the same thing. Free money that's never free.
When too many people are collecting and not enough people producing it becomes unsustainable. It's very simple. Government cuts services but the costs are too high. Infrastructure falls into disrepair, police are less effective because there's less working resources, crime increases. Businesses leave because taxes are too high. Jobs dry up the economy sinks further and the whole thing goes down, down down and people suffer. And, it's all because of financial mis-management.
It's been these so called pensions and retirement plans that have brought down the American auto industry, too many cities and states to count, Greece, and their even rioting in Russia over retirement benefits. And, these are all recent examples. The oldest one being the auto industry but it wasn't that long ago the government was bailing out the auto companies.
All these problems, all these fiscal catastrophes were the result of failed pension plans. I'm going to prove it to you.
Here's a news flash for you in case you're wondering. There's no free money! Like my mother used to tell us when we were kids, money doesn't grow on trees. It's a timeless truth. When I was a kind my mother was raising 3 boys by herself. She didn't go on welfare. She didn't get food stamps. She worked her butt off. 2 sometimes 3 jobs and you know what? We were better for it. By the time I was in 3rd grade I could cook, clean and do my own laundry. I had too. And she taught us a valuable lesson. Money doesn't grow in trees. I never expected anything for nothing. I never wanted anything I didn't earn. I always thought that was the American way.
This is why every liberal, progressive and socialist plan fails and I'm going to give you real, current examples of it. I don't even think in terms of liberal or conservative. I think in terms of basic math. You could call it common sense. But, either way when the math doesn't add it up it doesn't work.
Let's go back in time a second. Money was meant to simply be a means of exchange I make shoes you have vegetables and we would. trade
That's how it was done in the earliest times. Then some crafty person said this is silly I don't need shoes. How can this be better, and in the earliest times they traded beads and shells as a way of counting as a means of exchange. But, on some level everybody had to do their part adding money to the mix didn’t change that basic truth. Money has never been created out of thin air. Now, there's some very, very crafty people that have attempted to create money out of thin air. They print these notes called dollars and they pass them around. The problem is they want them back with interest and instead of creating value it's created a pyramid scheme. But, regardless of how much money they print we can never have more than we produce it's just a basic fact.
I really believe this is why immigration is being allowed to run rampant all over the world. It defies basic logic right? We see Europe being overrun, we see the United States being overrun. Everywhere the free money flows seemingly freely we have politicians standing by and letting their countries be ravaged by foreigners. Why? It defies logic unless you look at how the money works and the fact that without a fresh flow of ever increasing population the whole pyramid scheme comes crashing down.
But, I want to stay on point which is this:
- Liberal, progressive and even some socialist ideas aren't bad in of themselves.
- The failure of those ideas and I'll prove it, is solely because of pensions and welfare programs.
We can call it pensions, retirement benefits or basic guaranteed income it's all the same and it's failed every time.
Here's the real examples I'm going to give you right now:
- Protests in Chicago calling for Rahm Emanuel to resign.
- Protests in Russia.
- And a massive swing in Sweden where they looking to elect a conservative.
Look at Chicago. It's liberal central.
Here's something I'll bet you don't know. Rahm Emanuel has been mayor of Chicago since 2011, so 7 years. His salary as mayor of Chicago is $216,210. You thought all the money was in the federal government that's not so. He makes more than a Senator. He makes more than a lot of governors. Not bad except it doesn't explain how he's worth $11M.
Another career politician with a long history of corruption, deleted emails and a giant bank account. And, now a city that's dyeing a slow painful death under his leadership. It just keeps happening over and over again.
If I were president I would order and immediate study of political finances. I would have compare the salaries and net worth of politicians to other industries with similar salaries. Then I'd have them investigate where all the money came from. You want to talk about cleaning up the swamp.
But if you look at the problems in Chicago it's because the taxes are getting gobbled up paying for government worker pensions instead of being invested in the city and look what's happening! The people are revolting. Their demanding Rahm Emanuel step down and he just announced he won't be running again. This is a guy who was the poster child for the democratic party. He was like Obama's son. And now people want him out. Why? Not because they don't agree with his liberal, progressive ideas but because he failed to deliver.
People are protesting in Russia. Home of democratic socialism. The retirement age is 50 and it's crushing the government and whole economy. The government wants to raise the retirement age and look at what happens. The people revolt. They so quickly jumped on board for that free money but when the money dries up they'll fight to the death.
How many times do you hear liberals talk about Sweden? Why can't we do it the way Sweden does it? Why can't we have socialism the way Sweden has it. Everything is free in Sweden. Nothing is free anywhere. It's a pipe dream and now even the people of Sweden have had it. The government has allowed the country to be overrun with refugees. Why would they do this? I think it's a desperate act to prop up the population to keep feeding the Ponzi scheme. Now the people have had enough and there are conservative candidates that are very popular. We'll see what happens in Sweden but my guess is the people have had enough of the madness.
It's the same story in every place we see these problems. Look at what's happened in Greece and Venezuela. The free money has dried up. And we don't have to look that far. Look at California and Puerto Rico. Baltimore and Detroit. Yes, the jobs dried up but the government workers are still getting their pensions. It's unsustainable and it always follows the same path. It's a path of fiscal mismanagement due primarily to overpaying pensions which leads to over taxing with fewer services and less investment in the city which leads to civil unrest.
This is why liberal policies fail. It's not because liberal or progressive ideas are bad. They're not, and for people that say automatically say liberal ideas are bad they don't fully understand them. It's the financial mismanagement that kills all good ideas. I don't care if it's liberal, socialist, conservative or libertarian. Ideas from each of these ideologies has their place, but the math has to work. If you think I'm crazy for saying that you might consider that several of the founding fathers including Thomas Paine supported an early idea for guaranteed basic income. They didn't believe people could just go out in the wilderness and survive without some kind of financial support.
I'm not saying retirement plans are bad. Retirement plans are good but the math has to work or everybody suffers. The tax payers suffer under crippling taxes and the people receiving the benefits suffer when the whole system comes crashing down and nobody gets anything.
So how do we build fair, sustainable pension plans?
You want to offer a 20 year pension great. But you can't start collecting it until a certain retirement age. I joined the Marine Corps when I was 17. I could have retired and started collecting a pension with full medical benefits at age 37. If I lived to 77 I'd be collecting for 40 years! You can't have some working 20 years and getting paid for 60. And on top of that most the retirement plans are passed on to a spouse when the employee dies. It's like it never ends. You have people that work in government for 20 years and retire. Then they turn around and work another government job for 20 years and they collect 2 pensions! It happens all the time.
Raise the age but allow people to buy years. Here's what I mean. The retirement age based on current lifespans probably needs to be 70. You want to retire sooner? Fine. You have to contribute some of your pay every week and you buy down the number of years. If you don't want to pay you work longer. Plain and simple.
The bottom line is this. They key to a healthy government is efficient, effective government. When that gets out of balance, when the government costs too much or doesn't provide enough value the society suffers, the economy suffer and the people suffer.
So where are the fiscal conservatives?
News & Politics Podcast: Common Sense, brought to you by Christopher Scott.
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