Response to email: Socialism will only help those with the assets

Hi Chris,

Thanks for your writings. Keep it up….

Is socialism the real enemy? I am concerned about the far left socialists taking over. What should we do?

Tom – Las Vegas

The more socialist a nation, the more expensive its housing

This table ranks house prices of nations in the Americas, based on price to household income ratios. We can observe that the more socialist the national mindset, the less affordable their housing is to their residents.

One can only wonder; does Socialism raise the costs of living or do high living costs result in Socialism? I conclude that it is a self-generating mechanism. Social programs are introduced to ostensibly benefit the population, which raises the costs of life. These costs are the catalyst to introduce more programs, which just raises the costs higher. Eventually, as the decades pass, the government is intervening in every aspect of our lives with programs and legal codes to help alleviate the escalating costs of everyday life. Socialism ends with a sceientific dictatorship and the only way to stay ahead financially is to eschew personal debt and own income-generating assets.

As we can see from house prices in the United States, we have it pretty good. Sure, having the global reserve currency helps us with housing costs. But imagine a scenario where housing costs in the United States were as expensive as in Canada. There would be blood in the streets. House prices would have to effectively double.

So, if we want to see how housing costs will trend over time, I would analyze this socialist trend. Socialism creates massive budget deficits and these deficits only help those who own the real assets (real estate, stocks, bonds, etc.) at the expense of those who do not.

There is nothing we can do to change this trend and if you are afraid of socialism taking over the United States (it has already to a large extent) then I would try to acquire these assets over time. Don’t exert your energy tapping on the keyboard and getting angry. That’s the learned helplessness that the globalists hope to produce. Beat them at their own game.