Home > Political, Politics, Pre Pulse Ramblings > The Blue-State Meltdown and the Collapse of the Chicago Model

The Blue-State Meltdown and the Collapse of the Chicago Model

The Blue-State Meltdown and the Collapse of the Chicago Model — The American, A Magazine of Ideas.

The blue states are in trouble and have been for years.  Their socialist benchmark, allied with high taxes, unionization, high regulation, and overall assault on industry, has been devastating to these states.  Michigan was in recession early and was the first to hit double digits in unemployment.  Green regulations are choking innovation and productivity and populations are departing blue for red.

But our country elected the blue state model to national power, and so even the success of the red states will be mitigated by the (by my count) 4 tax increases the corrupt politicians of the democrat party have planned for Americans.  They include:  allowing the Bush tax cuts to expire (hence a tax increase), BHO’s proposed budget (full of taxes for all of us), cap-and-trade (a tax on manufacturing and industry), and health care nationalization (at least a quarter of our free enterprise will be socialized and gone forever).

In contrast, Europe is emerging as a place for investors to consider.  Europe’s tax structure is now lower than the United States, and in some areas by a level of magnitude.  In addition, the EU just signed a free trade agreement with S. Korea, something Bush tried to do but a Marxist parliament did nothing to approve the attempt; thus markets that would have been open to our exports remain closed.  This is significant in many ways.  For one, Europe, while experiencing a significantly lower population than the US (220 million vs. over 300 million), has more companies in the Top 100 and 500 than the US and that trend is only going to increase as cap-and-trade, nationalized health care, and higher taxes eliminate US companies from the playing field.  For another, the Euro continues to gain strength, and capital flight from the United States needs SOMEwhere to go, and that somewhere is generally a stable environment, sound infrastructure, and large markets.

As we spend ourselves into financial suicide, we fail to accept that the Keynesian model doesn’t work.  More detrimental is the fact that so far there has not been one single pro-free market policy passed or submitted for consideration by this cabal of corrupt Marxists in Washington.  Even the more pro-business red states may not be able to survive the ruin being imposed by the Democrats.

Fil “Filvis” Rechnitzer

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