Monday, February 8, 2010

We've Seen This Movie Before ...but Ema Nymton (Notmyname) refuses to believe it!*

One Man's Thoughts

Cry For Me, Argentina

In the early 20th century, Argentina was one of the richest countries in the world. While Great Britain ’s maritime power and its far-flung empire had propelled it to a dominant position among the world’s industrialized nations, only the United States challenged Argentina for the position of the world’s second-most powerful economy.

It was blessed with abundant agriculture, vast swaths of rich farmland laced with navigable rivers and an accessible port system. Its level of industrialization was higher than many European countries: railroads, automobiles and telephones were commonplace.

In 1916, a new president was elected. H ipólito Irigoyen had formed a party called The Radicals under the banner of “fundamental change” with an appeal to the middle class.

Among Irigoyen’s changes: mandatory pension insurance, mandatory health insurance, and support for low-income housing construction to stimulate the economy. Put simply, the state assumed economic control of a vast swath of the country’s operations and began assessing new payroll taxes to fund its efforts.

With an increasing flow of funds into these entitlement programs, the government’s payouts soon became overly generous. Before long its outlays surpassed the value of the taxpayers’ contributions. Put simply, it quickly became under-funded, much like the United States ‘ Social Security and Medicare programs.

The death knell for the Argentine economy, however, came with the election of Juan Perón. Perón had a fascist and corporatist upbringing; he and his charismatic wife aimed their populist rhetoric at the nation’s rich.

This targeted group “swiftly expanded to cover most of the propertied middle classes, who became an enemy to be defeated and humiliated.”

Under Perón, the size of government bureaucracies exploded through massive programs of social spending and by encouraging the growth of labor unions.

High taxes and economic mismanagement took their inevitable toll even after Perón had been driven from office. But his populist rhetoric and “contempt for economic realities” lived on. Argentina’s federal government continued to spend far beyond its means.

Hyperinflation exploded in 1989, the final stage of a process characterized by “industrial protectionism, redistribution of income based on increased wages, and growing state intervention in the economy…”

The Argentinean government’s practice of printing money to pay off its public debts had crushed the economy. Inflation hit 3000%, reminiscent of the Weimar Republic . Food riots were rampant; stores were looted; the country descended into chaos.

And by 1994, Argentina ’s public pensions — the equivalent of Social Security — had imploded. The payroll tax had increased from 5% to 26%, but it wasn’t enough. In addition, Argentina had implemented a value-added tax (VAT), new income taxes, a personal tax on wealth, and additional revenues based upon the sale of public enterprises. These crushed the private sector, further damaging the economy.

A government-controlled “privatization” effort to rescue seniors’ pensions was attempted. But, by 2001, those funds had also been raided by the government, the monies replaced by Argentina ’s defaulted government bonds.

By 2002, “…government fiscal irresponsibility… induced a national economic crisis as severe as America ’s Great Depression.”

************************************************************************* * *

In 1902 Argentina was one of the world’s richest countries. Little more than a hundred years later, it is poverty-stricken, struggling to meet its debt obligations amidst a drought.

We’ve seen this movie before. The Democrats’ populist plans can’t possibly work, because government bankrupts everything it touches. History teaches us that ObamaCare and unfunded entitlement programs will be utter, complete disasters.

Today’s Democrats are guilty of more than stupidity; they are enslaving future generations to poverty and misery. And they will be long gone when it all implodes. They will be as cold and dead as Juan Perón when the piper must ultimately be paid.


And this from the mail bag...

We've seen this movie before. The politician's populist plans NEVER work, because power corrupts and government bankrupts everything it touches. For those that will listen, history shouts over and over that we cannot sustain the wild spending and government takeover of business, banking, health care, and continue to inflate unfunded entitlement programs! Like history tells us, it will be an utter and complete disaster!

Today's politicians are guilty of more than arrogant stupidity; they are enslaving future generations to poverty and misery. And they will be long gone when it all implodes. They will be as cold and dead as Juan Perón when your children and grand children must ultimately pay for the blind arrogance of politicians!


PS... while working America cuts back... Congress just increased government expenditures by 12% in the "Omnibus" another spending bill of nearly half a TRILLION!

Last year there was ONE person in the Dept. of Transportation making over $170,000! This year that Dept. has 1690 people making over $170,000! Is your company, or ANY company, doing that well? AND, this bill has 5,224 earmarks totaling $4,000,000,000! The U.S. unfunded mandates including Social Security, Medicare, Medicaid and the National Debt Now exceed 69 TRILLION DOLLARS.

(How is that Hope and Change working for you,

and don't forget your Country, too)


Courtesy Ad

(For friends of Storm'n Norm'n)


*Ema Nymton comes by occasionally to comment on various posts. Ema is a irrational person who fails to see the forests for the trees are in the way. ~ Norm



Chad T. Everson said...

Normin you really outdid yourself again! Great Post! If you would, flesh this out and submit it for the Temerity Magazine that comes out Feb. 29th this month! I tweeted it out to our twitter followers just now! Great Post as Always!

Storm'n Norm'n said...

Ref: "Feb 29th" I'll have a birthday sometime between this month and next...check your calendar! (LOL)

ps How do I submit it for Temerity can call me about this but not right now, I'm preparing to go on the radio at 5 CST PM this can catch it on the Internet here: and then click on "Click HERE to listen to 24 Hour LOCAL Programming" ...and don't be afraid to call in and plug you website and magazine. Toll Free 1-888-318-9379


Findalis said...

A lot to remember when talking about Obama and crew. Left unchecked Obama and the Democrats will rob everyone (but themselves) blind to make the US into a Utopia.

LewWaters said...

Unfortunately, the greedy entitlement class does not care. They will continue to demand more and more, even after it all implodes.

They have no idea how to care for themselves and government will be unable to.

It ain't gonna be pretty I'm afraid :-(

Storm'n Norm'n said...

Ref January 24th comments...

I was wondering why you left comments on this post (its almost two years old) when I re-checked the email I sent... there was a link in one of the words but it was not put there intentionally... the reason for the email was for the attached power point slide show.
Sorry for the confusion.