Mar112019

money matters You Will Run out of Other People's Money

You have to admit. The socialistic movement is growing. After the Bernie Sanders run, we are now greeted with 29 year old Congresswoman Alexandria Ocasio- Cortez (D- NY) whose moniker is commonly shortened to AOC.

With the charisma likened to Obama, her call from everything to clean energy to workers’ rights has resonated with the left side of the aisle and as usual, there are many unanswered questions as to how we might pay for all of these “not so new” ideas. I say not new because the socialistic agenda has its methods and that method is to offer up lots of grand ideas with little substance and an even littler idea about how to pay for it all.

Socialism is, or so they think, the magic blue pill to many. Appealing to an ever growing constituency of the low income earners, the deep but seldom talked about psychological allure of such an agenda centers around one easily digestible idea:  one’s plight is not the fault of him or herself but the systems. 

Ah, we knew that all along now didn’t we?

The central theme of the socialistic free dinner bell is that the flawed system we have called Capitalism is a horrible system and the greedy, uncompassionate rich take advantage of everyone who’s not part of it.

Those are the reasons I’m broke, unhappy and can’t seem to get ahead and it has nothing to do with the fact I don’t like to get up early, decided to be a tennis pro instead of a banker, screwed around in high school and didn’t get good enough grades to get into college or just didn’t want to.

You have to appreciate a good con.

Not that everything one does leads to riches, fame or the food bank. Luck has something to do with it of course, and I’m not putting down tennis pros or sleeping in. It’s just that you have the right to do what you want, and if what you decide to do doesn’t make you happy or rich enough, don’t come asking me to cover your shortsightedness in career choice or degree of luck you might of had. It's called life, deal with it.

I’ve always believed good luck is when preparation meets opportunity. So good luck is not a given but you want to give it every chance that when you do see some, you are prepared to take advantage of it.

However with AOC and Sanders, Warren and a host of other dreamers of a utopia conclusion, comes what some might say is the evitable slow grinding progression of the wheel of socialism, or at least some hybrid of it.

From the New Green Deal, which in actuality is not new, to an ultra-rich tax , to single payer health care, the allure of such things to some is too great to resist and too good a dream to want to wake up from.

So awake, yet in a perpetual dream state, the proponents of such ideas march on, swaying their protests signs to and fro, always gathering more followers, like the proverbial rolling snowball getting increasingly bigger with each rotation.

Don’t get me wrong, there is not a sane person on the planet that wouldn’t want everyone to be comfortable in a warm bed till noon, with a fridge full of food, a brand new car in the driveway and house of their own they can call home, although some of us would still get up early.

The difference is what is obtainable and what is not. Call us realists but there just isn’t enough stuff in the world for everyone to sit on a pile of plenty. In economics is called the assumption of scarcity, and Quora defines it as:

Scarcity refers to the condition of insufficiency where the human beings are incapable to fulfill their wants in sufficient manner. In other words, it is a situation of fewer resources in comparison to unlimited human wants.

In plain English, is means there simply isn’t enough stuff for everyone. It may be unfair, and some may call it unjust, but realities don’t bend to opinion. They are simply realities. Trying to attach blame to a reality is ignorant, trying to alter it is foolhardy.

For instance, single payer healthcare is estimated to require a 36% increase in taxes for every American (Weiss and Associates).

Meanwhile the Mercatus Center at George Mason University published a rigorous analysis that pegged the price tag of single payer at $32.6 trillion over ten years. Considering the U.S. government spent 4 trillion total in 2017, its simply too expensive. Like WAY too expensive.

But realities like this don’t stop the sleepwalkers. It makes sense, because in dream state there are no reality, only fantasies.

In conclusion, all of us can dream and indeed want a world where there unlimited possibilities and everyone is one big fat and happy family, holding hands and singing Kumbaya.

But that kind of world is promised only in the afterlife, not in the here and now.

That won’t stop the dreamers from trying however, and should they attempt to make their dream a reality, instead of some sort of heaven they strive for, it will be more like the other place.

This article expresses the opinions of Marc Cuniberti and are opinions only and should not be construed or acted upon as individual investment advice. Mr. Cuniberti is an Investment Advisor Representative through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Marc can be contacted at SMC Wealth Management, 164 Maple St #1, Auburn, CA 95603 (530) 559-1214. SMC and Cambridge are not affiliated. His website is www.moneymanagementradio.com. California Insurance License # OL34249

fShare
4
Pin It