Are We Still A Democracy?

The recent actions of the ECB and the Federal Reserve have driven the final nail in the coffin of Capitalism and Democracy. Both these cornerstones of our civilization have been on life support for years. Central bankers decided last week to 'pull the plug'. Capitalism and Democracy will be replaced with a hybrid economic system combining the attributes of the old Soviet Union's command economy, the Oligarchy's of South America and efficiency and integrity of today's of today's economic system [with a dose of fascism thrown in for good measure].

"Rubbish, you declare", "Poppycock", "More left wing ranting". Fair enough dear reader, at this point in history you are still allowed your own opinion, but before you click away you should consider the following realities.

Capitalism, as defined by Wikipedia is an economic system that is based on private ownership of the means of production and the creation of goods or services for profit. Let us consider the following realities. Only then can we understand how our central bankers performed the 'coup de grace'.

Global spending on Weapons was 1.74 trillion in 2012. For many countries particularly the United States the largest employer in the 'private' industry is the weapons industry. In the United States, if one includes the postal service and the military over 3 million people work for the Federal Government. [Imagine if we included state and local government employees in this number] In every developed country in the world the civil service is by, far the largest employer in the country. The second largest employers are those industries or sectors such as weapons, health care or education that receive their revenue from the government. The developed world is no longer served by government. The developed world is dependent on government spending to maintain, not improve, their current lifestyle. Private ownership of the means of production and the creation of goods or services for profit exists only as curious anachronism in small pockets around the world. One could not possibly argue that worldwide, the automobile, banking, weapons and health care industries exist only at the pleasure of government spending. The survival of these industries is reliant on favorable government support, spending and regulation.

In simple terms most societies in their current form only because our governments borrow money from future generations to keep civil servants employed and captive industries on life support. Competition and survival of the fittest, truisms of capitalism do not exist anymore. The concepts of entrepreneur, merit, hard work, pride, sacrifice, choices, work ethic, patience, effort, pay as you go, integrity, truth, risk reward, moral hazard fairness and equality are, of course, now obsolete. To survive going forward the key will be one's ability to ''get me some of that newly printed money".

Now let us consider democracy. Once again let us use Wikipedia's definition that defines Democracy as 'a form of government in which all eligible citizens have an equal say in the decisions that affect their lives. Democracy allows people to participate equally -- either directly or through elected representative.' Dear reader, surely the death of democracy is not something we need to debate. It is self evident. No, "you still believe in democracy, you still believe that your vote counts". Please consider the following words and phrases carefully. Create an image your mind as to what each word or phrase means the system of government known as democracy: Gerrymandering, Hanging Chad's, QE 1, QE 2, unlimited campaign spending by individuals and corporations, "corporations are people too" Bailout conditions, Operation Twist, QE 3, technocrat government, TARP, Wall Street bailout, lobbying, Greece, Spain Italy, ECB terms and conditions for bond buying campaign. There are more words to help paint this picture but I do not want these disturbing images, that I imagine you created in your mind, to cause you Post Traumatic Stress. These are not words that were spawned in the evolution of democracy. These words evolved as democracy evolved into a more sinister system that left the world with the 'illusion of democracy'.

Let us now connect the dots that connect the death of capitalism and democracy to the recent actions of our central bankers. By announcing in tandem over the last couple of weeks that both federal reserve and the ECB, both led by unelected officials, that they would expand their asset purchasing [ Oh Please can we all just agree to call it money printing]. The central banks have irrevocably committed their respective governments to a course of action that is done without public consent, understanding or referendum. These have enacted fiscal policy disguised as monetary policy that will handcuff the "citizen taxpayer's" ability to manage government finances for, well, forever.

This course of action will cause a misallocation capital of historic proportions. On 'Main Street' the theft [via artificially low interest rates] of retirement income from retirees, who diligently accumulated retirement capital during their working years to provide interest income in their retirement will continue unabated. [In some ways, you have to admire baby boomers for their audacity and hubris to steal from their parents via artificially low rates as well as their children and grandchildren through absurd government borrowing. This is done to maintain the lifestyle boomers have become accustomed to. The boomers are like a Robin Hood from an alternate bizarre dimension. The boomer Robin Hood steals from old and young and keeps the money for himself] 'Moral Hazard' has been removed from decision making process. It has been replaced with a modern version of "I'm all right Jack."

Governments will be able to spend in an unlimited fashion, immorally with no fear of punishment by the bond market vigilantes. Dear reader, 'How could government spending be immoral?' you ask. When our governments spend money we don't have on goods and services we cannot afford or do not need, at prices that are not determined by a free market capitalist system only to leave the 'Butcher's Bill' to our children and grandchildren that is immoral, undemocratic and definitely not how capitalism works.

"It has been said that democracy is the worst form of government except all the others that have been tried", or so said Winston Churchill. But democracy cannot be that bad, can it? To answer let's take a short walk through democracy in America.Who is eligible to vote?

In theory democracy is simple enough. One person, one vote and the majority wins. But politics make democracy hard in practice. Start with the fundamental question - who has the right to vote? Originally that was only adult white males (the Constitution didn't require property ownership). With time ex- slaves (15th amendment, 1870) and then women (19th, 1920) received the franchise. Our current voter profile was finally set when the residents of Washington DC gained Electoral College votes (23rd, 1961) and the franchise was guaranteed to 18 year-olds (26th, 1971).

Actually there is more. Ex-felons' right to vote depends on where they live. If you don't think that matters consider the 2000 Presidential election. It's possible that, if Florida had let ex-felons vote, Gore would have been the President.

If you have the right to vote, does that mean you will be able to?

A putative constitutional right to vote doesn't guarantee your ability to vote; states have and continue to put hurdles on the way to the ballot box. Before the Supreme Court struck them down, literacy tests and poll taxes disqualified the poor and uneducated. (In a cynical exercise, some states 'grandfathered' voters if they or an ancestor was eligible to vote in 1867 - before blacks got the franchise).

People in power will rarely cede any advantage. When one means of suppressing votes is barred another will spring up. In states dominated by one party, the primaries are the election. Some state political parties barred blacks from voting in these primaries arguing that as private entities their primaries weren't subject to federal election law. Today ID requirements and cumbersome registration practices serve to restrict the vote.
Physical impediments can lower turnout. Targeted precincts may have fewer voting machines or longer journeys to a voting site. Voting methods or the ballot itself can confuse the voter. (2000 introduced us to the now infamous 'butterfly ballot' and dangling, swinging and pregnant chads.)

When the fox guards the hen house

Independent management of voting would solve these problems, but voting conditions are controlled by politicians. It is hard to pretend that democracy is legitimate when the 'ins' have significant influence over the process that keeps them 'in'. Florida 2000 is once again an egregious example. Katherine Harris, who as Secretary of State was responsible for elections, called a halt to the recounts with George W. Bush 537 votes ahead. Fair enough. Except that in addition to her state position she was also co-chair of Bush's Florida campaign.

Populations increase and decrease, people move. Every ten years the census counts these changes and congressional seat allocation by state is adjusted. Congressional districts are redrawn to account for the adjustment and the movement of people within the state. Five states have independent or ad-hoc committees to redraw the boundaries; Florida (ironically) has some rules on redistricting. But, as long as the process doesn't impact minority rights, in 44 states the party in power has carte blanche to redraw the districts.

The election map is distorted to lump opposition voters together in a few districts while leaving allies a majority in the bulk of them. This political adventurism is as old as the Republic. Its name, gerrymandering, is a legacy of a Congressional district drawn by Elbridge Gerry's party in 1812 Massachusetts that reminded some of a salamander.

The process and how it renders many voters irrelevant

In the US representation is 'first past the post'. The make-up of Congress is based on a district by district result and not the overall vote. (In 'proportional representation' a party is awarded seats based on its percentage of the popular vote.) Voters who live in 'safe districts' are therefore irrelevant. It doesn't matter if their representative is elected with 62% or 92% of the vote, it still just one seat, with no additional national significance.

Our political system was created to balance the rights of small and large states which leaves voters from small states with a disproportionate amount of influence. 564,000 Wyomingites have the same clout in the Senate as 37 million Californians.

This disparity in influence is compounded in the general election. The President is elected, not directly, but by a vote of the Electoral College. And because each state's electoral votes is equal to its number of Representatives plus two Senators, voters in small states again profit. Each of Vermont's 3 Electoral College votes represents 208,000 Vermonters; each of Texas's 38 votes represents 661,000 Texans.

Adding to this disparity is the custom of giving all of a state's electoral votes to the winner. The citizens of states that consistently vote for the same party have no role in electing the President. Massachusetts last voted Republican in 1984. Kansas last voted Democrat in 1964.

Democracy in America

Democracy in America is compromised by disenfranchisement; it is compromised by political interference; it is compromised by the very design of our government. But the greatest damage to our democracy comes from a self-inflicted wound. Half of us don't vote. And of those that do, many don't pay much attention.
Winston Churchill was scathing: "The best argument against democracy is a five minute conversation with the average voter".

Jefferson however had a solution: "Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty."Which might explain why many politicians are so strident in discrediting teachers and the media; if you cannot stop people voting then at least keep them uneducated and ill-informed. By Pitt Griffin

True democracy should be about unity at the core, and balance. Democracy is about the people determining what is best for their nation as a whole. The people have the power and they must insure the unity and balance is not taken from them... for this could happen unexpectedly.

Perhaps democracy is only a dream today, or more like an illusion; a ghost of what once was. We believe in democracy, in America, because we want to. In the same manner as a faithful person wants to believe in God. The idea of a loving creator is nice to imagine, just like the idea of a political system uniting humanity and bringing an end to tyranny may also be a pleasant thought. Seeking after philosophical ways of making logical sense in how a loving God governs a world like ours; people can debate for years on such an issue. Neither side can prove though, without a shadow of a doubt that there is, or is not, a loving God. How could people prove democracy is more than a dream today, more than an illusion?

Like America, Rome was a Republic with democratic values. The Roman model of governance inspired many political thinkers, and today's modern democracies imitate the Roman and Greek models. The major difference from the Roman Republic model, (and one of the primary reasons our modern day democracy may be so flawed), is the fact our present political leaders are paid millions of dollars for being in their positions. In ancient Rome the political leaders chose to serve their nation without payment. They earned their money by other means while viewing their job as senators to be an honor, since they were able to serve those less fortunate. In the days of the Republic, before Julius Caesar shook things up, the people knew the senators cared about helping to bring a balance to Rome.

The political, cultural, and economic forces which held the Roman Empire together were removed because of Economic fragmentation, eventually leading to the Dark Ages. Following the economical mistakes made in Rome the empire continued to digress because of the crumbling of political, military, and other social institutions, along with invasions from outside peoples, and usurpers from within the empire. The Roman Empire held onto their particular values in politics for a time, but eventually they allowed outside influences to change these values, and wash away the foundations of the Republic. Rome started to lose their identity as others came in from foreign lands and started to change the Roman individuality. In summary, the economy collapsed, outside influences started to change Rome, and eventually too many wars, attacks, and dependence on the crumbling government brought about the ultimate fall of Rome... The loss of democratic values was subtle at first, and then by the time the people depended unequivocally upon the power of their leader, or government, their leaders had little to offer. The damage from all the mistakes made in Rome drained the economy, and helped make the populace an ignorant people who depended too much on the "elite" for help. Soon the Dark Ages followed after what was left of the empire crumbled...

Today America is the great empire, or as the world believes, the great democratic nation. the march on Wall Street, the fact that more than six in ten Americans oppose the U.S. war in Afghanistan, (according to a new national poll), the protests against government spending, and our government officials being unable to unite so as to solve our present economical woes; these problems should not face a properly ran democracy. If the people want the issue resolved in a Democratic Nation, then the issue should be resolved, or else this is not a system of government based on the principle of majority decision making.

Instead of tyranny and a dictatorship, democracy provides opportunities for the people to control how their nation is ran. The political "leaders" should work for the people, and the people can oust them without need for violence, or any sort of revolution. Why are the people ignored today by their political leaders' in America? If the people declare, "we want to stop fighting. We want the war to end", then the soldiers' should be brought home. Despite the argument on whether something may be a good idea or a bad idea; the people determine what will be done. For better or worse, they should receive what they demand, or else face the truth that they no longer live in a truly democratic nation. If the leaders ignore what the majority want and they decide to do what they feel is best, (despite what the citizens want), then how can such a nation still be defined as democratic?

The idea of democracy and the importance of this political ideal can be summarized in the word "unity". Democracy is supposed to be about something bigger than one's self. Democracy is bigger than ones culture, ones past, one's personal desires. Democracy is supposed to be a balanced system where what is best for humanity as a whole is focused on instead what may be best for an individual or a group of a select privileged few. If our motive is love for something greater than ourselves, no ingratitude will hinder us from serving our fellow man. Democracy should be about love for humanity and equality. There is an idea that one's love for self is most important. Conclusively an individual will end up hurting themselves and those they love if they only depend on their selves. Every individual is flawed and their emotions lead to more trouble. Democracy was meant to unite a nation and preserve freedom and justice for all. It's quite clear in our nation's history that the founding fathers' wanted those in our democracy to believe in something greater than self. Sadly most live for themselves first in our nation today, and unity doesn't last... A house divided will fall.

The people believe in democracy in America, because we want to... Is this a democratic nation or a crumbling empire where the people place their allegiance in the leaders more than in the values their nation was founded upon? We are surely not united and balanced today. The political leaders cannot even unite to fix our economic crises. The people can't seem to unite and succeed in receiving what they ask for. Is democracy an illusion, a ghost of what once was? Ultimately if democracy has failed in our nation, this is because we, the people, have failed our nation.
By L. L Brunk

Does Socialism work? To find out the answer to this question, all we have to do is visit the nearest Native American reservation. While it is fashionable to blame high unemployment rates, economic stagnation and ill-health on the effects of being a conquered peoples, I maintain that it is due to Native peoples adherence to the socialistic tribal structure, both culturally and economically.

I am always amazed with people who advocate socialism as a solution to the problems facing us. I would venture to say that those individuals have never lived or worked in a socialistic society. If they had, they would see that socialism only can work on a very limited and small scale.

In Atlas Shrugged, Ayn Rand tells a story about a motor company in which the credo, "From each according to their ability, to each according to their need", was applied. In this story, it shows how the company deteriorates because people soon learn that the get what they want, they have to prove how needy they are. Each person has to show that "their" need is greater than another's, and those with ability end up working more and more to provide for the "needs" of others. In other words, they were slaves to the "collective".

Aguste Comte, in his Catechisme Positiviste, said that "[the] social point of view cannot tolerate the notion of rights, for such notion rests on individualism. We are born under a load of obligations of every kind, to our predecessors, to our successors, to our contemporaries. After our birth these obligations increase or accumulate, for it is some time before we can return any service.... This ["to live for others"], the definitive formula of human morality, gives a direct sanction exclusively to our instincts of benevolence, the common source of happiness and duty. [Man must serve] Humanity, who we are entirely."

"The social point of view cannot tolerate the notion of rights." This sentence needs to be burned into our souls.

Altruism also has been defined as, "serving others through placing their interests above one's own."

When the state decides to put altruism into practice the method used is socialism.

I was raised in what Indian's call the "dominant" society of the 1950's and 1960's in a small logging town in Oregon. At one time I asked my father why we did not live by the old reservation around other Indian's and he replied, "I didn't want you kids raised with the belief that somebody owed you something". He also was adamant that we work for whatever luxuries we wanted. At the time, I thought he was just mean and cheap.

The last 16 years I have lived on our small reservation. I have also visited and studied many other reservations in America. Most of them have attempted to use socialism as their economic remedy. If you want to see how socialism works all you have to do is look at Native American reservation's. They still have the highest un-employment. The poorest health, lowest standard of living and highest death rate pro rated.

What I have observed is people are grateful when some of their needs are being met via a socialistic entity; then people start expecting their needs too be met; and then they start demanding their needs be met. They not only expect what was already given, but demand even more benefits.

Intellectually, socialism sounds wonderful. In reality it creates slaves. Some individuals are slaves by providing the benefits to and for others, and some are slaves to their neediness.

Here is a quote by Frederic Bastiat...... (This was written in the 1840's, about 100 years before FDR. Since the 1940's, most of the problems Mr. Bastiat foresaw have occurred in the U.S.)

"[The socialists declare] that the state owes subsistence, well-being, and education to all its citizens; that it should be generous, charitable, involved in everything, devoted to everybody;...that it should intervene directly to relieve all suffering, satisfy and anticipate all wants, furnish capital to all enterprises, enlightenment to all minds, balm for all wounds, asylums for all the unfortunate, and even aid to the point of shedding French blood, for all oppressed people on the face of the earth.

Who would not like to see all these benefits flow forth upon the world from the law, as from an inexhaustible source? ...But is it possible? ...Whence does [the state] draw those resources that it is urged to dispense by way of benefits to individuals? Is it not from the individuals themselves? How, then, can these resources be increased by passing through the hands of a parasitical and voracious intermediary?...

Finally...we shall see the entire people transformed into petitioners. Landed property, agriculture, industry, commerce, shipping, industrial companies, all will bestir themselves to claim favors from the state. The public treasury will be literally pillaged.

Everyone will have good reasons to prove that legal fraternity should be interpreted in this sense: "Let me have the benefits, and let others pay the costs."

Everyone's effort will be directed toward snatching a scrap of fraternal privilege from the legislature. The suffering classes, although having the greatest claim, will not always have the greatest success." from Journal des Economistes

I have witnessed the harm done by socialism. I have seen it sap the integrity, motivation, honesty, and dreams of individuals. I have seen it create slaves. I have seen its seductive promises induce people to betray family members and friends.

I have seen socialism create the entitlement mentality. I have watched my sons accept the false premises that we are put on this earth to expend our lives, talents and ability to the "collective".

I have attempted to talk with them. I have tried to explain why they should not accept the fact that they will work over one half of their lives for the benefit of politicians and the government. However, as many of you know who have children, parents do not know much.

It saddens me. I told my oldest son that one of the reasons I sobered up 30 years ago, was because I was not going to be a bum on society or my family. I am not going to sit idly by and let our government institute programs and policies so my children will be slaves to me even "after" I am dead.

This issue is "not" just an interesting debate or intellectual exercise. Socialism kills, not just individuals but all the things that make an individuals life on this earth worthwhile.

Don't believe me?

As I suggested, just do a little research on the conditions on most reservations in this country.

http://rblacketer.ipower.com/