Wow - Something Smells Bad in D.C.

Nationalization, is the act of taking an industry or assets into the public ownership of a national government or state. Nationalization usually refers to private assets. The motives for nationalization are political as well as economic. It is a central theme of certain brands of 'state socialist' policy that the means of production, distribution and exchange, should be owned by the state on behalf of the people to allow for rational allocation and operation, and rational planning or control of the economy. Socialism refers to various theories of economic organization advocating state, worker or public ownership and administration of the means of production and distribution of goods, and a society characterized by free and equal access for all individuals with a fair method of compensation.Socialism is NOT a political system; it is an economic system distinct from capitalism. Many socialists believe that public ownership enables people to exercise full democratic control over the means whereby they earn their living and provides an effective means of redistributing wealth and income more equitably.

Nationalized industries, charged with operating in the public interest, may be under strong political and social pressures to give much more attention to externalities. They may be obliged to operate some loss making activities where social benefits are clearly greater than social costs - for example, rural, postal and transport services. As an example, the United States Postal Service is guaranteed its nationalized status by the Constitution. The government has recognized these social obligations and, in some cases, provides subsidies for such non-commercial operations.

Enter the Obama administration, money in the banking industry and a special advisor (czar);money into the auto industry and a special advisor (czar); money into some banks, and a czar and now the prospect of intrusion into yet another private industry health insurance. In each and every case just as in the past, government has placed its own parameters shaped by those influential in government around the provision of services.

Since the nationalized industries are state owned, the government is responsible for meeting any debts incurred by these industries. The nationalized industries do not normally borrow from the domestic market other than for short-term borrowing. However, if profitable, the profit is often used as a means to finance other state services such as social programs and government research which can help lower the tax burden.

One of the most famous examples of nationalization was in post WWI Germany. In the early twentieth century they attempted to recover from a severe recession by way of social spending. Germany began creating transportation projects, modernization of power plants and gas works,and insurance companies(beginning to sound familiar?) These were all used to battle the increasing unemployment rate. Social spending was rising at an unbelievable rate and deficits skyrocketed.

All of us must learn from history, and not repeat failed experiments of the past. Many individuals will press for the passing of increasingly liberal legislation with the passing of the “Lion of the Senate”. While he did in fact have huge impact on legislation for generations to come, his death CANNOT become a rallying point for programs and policy that cannot sustain the ideals of our country, our people and our founders. Democracy, and those charged with the representation of the populace such as the Democratic and Republican Parties must not permit this to happen.