THE SOVIETS

Joe Bakewell.

THE SOVIETS.

I’ve been inspired to write this by reading about the history of the Soviet Union. Starting with a revolution that brutally suppressed all attempts at governing other than the Bolshevik ideology, the Bolsheviks attempted to put in place a system in which every detail was controlled from the top. It was so complex that bureaucrats were required in every nook and cranny. These bureaucrats got and held their jobs by sucking up to superiors who maintained control by defining the ideology to suit themselves. Human nature took over and objective of the entire bureaucracy became the preservation of itself.

A study of history would have predicted what happened next. There has never been a country or region governed by a single ideology or religion that did not end in corruption. Recent examples are, in addition to the Soviet Union, Argentina (now doing better) and Venezuela.

What we have is dueling ideologies, each seeking to convince the rest of us that adherence to their ideology will result in good (read responsible) government. Meanwhile, our politicians practice Populism wherein they spend irresponsibly in an effort to give ‘the people’ what they want—or at least what the politicians and bureaucrats think is good for them.

Are you beginning to see some semblance to The Soviet Union?

Contrast this to a business:

A business is an entity that creates more resources than it consumes. New businesses typically fall short but are financed by investors in the expectation that they will eventually produce more than they consume.

Calling these unconsumed resources profits is an oversimplification because of the many uses of these resources. For example: investing in growing the business (a very complicated subject), or paying taxes. I could go on, but I want to make a particular point.

For our country, we need to bear in mind that these resources pay for everything except expenditures funded by debt.

Individuals, businesses, and responsible local governments borrow to fund worthwhile projects with the full intention of paying off the loans as agreed.

Our federal government borrows without any connection to paying back except by borrowing more (rolling over the debt).

So what’s the problem? Suppose we required the feds to play by the same rules as the rest of us, borrowing only to fund investments that pay back at least as much as was borrowed—no printing money to make up the short fall. All other expenses to be paid by taxes.

The impossibility of doing this is just one more example of the grip of corruption in DC and the loss of our democracy.

Again, The Soviet Union provides an example of how not to do it. When the Soviet Union broke up, corruption was so entrenched that it was able to crush any attempt at democracy. The Russians wound up with an autocratic oligarchy in which a small percentage of individuals own almost all wealth. Putin’s job is to keep it that way.

Going back through history, even to the Roman Empire, one finds many examples of countries that have perished due to corruption not ideology. Think of Iran today.

I continue to argue that in order to achieve good government we need to first rid ourselves of the corruption now so well established in DC. Until that happens, we’ll continue to suffer the effects of populism and dueling ideologies.

Those who do not learn from history are condemned to relive it.

Joe Bakewell.

https://joebakewell.wordpress.com/