With the Global Economic Crisis that rocked the world, some of the socialist leaders in the world are claiming it was the “blue eyed white devils” and their capitalism that caused it. This is pretty hilarious, but I kid you not, this is indeed what Hugo Chavez said in a speech in Venezuela and in another one to his Socialist/Communist Club ALBA. He called for all of South and Central America to embrace Socialism and everything would be fixed once and for all.
So, then is Hugo Chavez correct? “Is Socialism the Answer to the Global Crisis?” asks one of my economic paper readers. The answer is; absolutely 100% no. In fact, socialism was actually one of the causes of this great economic crisis, and let me explain. Indeed, it was Socialism type policies and intervention in capitalistic markets which caused the economic housing bubble.
This is because we allowed folks who could not afford loans the ability to take out loans for large homes without having to prove their income. We made laws and rules to make it difficult for banks deny loans, and there were members of the Senate and House, which allowed Fannie Mae and Freddie Mac to take extremely high risks. All this was backed by the taxpayer.
Had those things not happened, along with perhaps Elliot Spitzer’s mistake of forcing Hank Greenberg out of his own company that he built, AIG, our global economic crisis and bubble probably would’ve never happened. Elliot Spitzer if you’ll recall, was not only a Democrat, but also an Ivy League lawyer whose opponents said had socialist tendencies.
Socialism is not the answer for global economics, and the more socialist policies interfere with capitalism, the worse things will get. One only has to read Ayn Rand’s “Atlas Shrugged” to see how the story ends, if our global economic policies are based on socialism. Please consider all this.