Don't Fall for Class Warfare

The most used tactic of the Left, whether Communists, Socialists, Maoists, Stalinist, Nazis, Fascists...or American Liberals/Progressives, is class warfare. Class warfare is simply a tactic of pitting different groups against each other for the purpose of polarizing or rallying segments of population around a cause or to the side of a group vying for political power.

One of the most extreme examples of class warfare was the Nazis. The Nazis pitted a large majority of the German people against the Jews, blaming all of the country's economic and social problems on them. With their lies and propaganda, the Nazis turned the Jews into sub-human monsters in the minds of their people. Because they were viewed as evil, the Jews could be treated in any way the Nazis saw fit. Anyone who had any dealings or sympathy for the Jews were also demonized. Being branded a "Jew lover" could result in ostracization, loss of your job or business, or freedom...or worse.

The Nazis effectively used the Jews as scape goats for all their problems. More than that, they turned them into Boogie Men who had to be stopped at all costs. This led some to become active Nazi henchmen...and many others to turn a blind eye and become passive contributors to the holocaust.

The sad truth about the Nazis was that none of it had anything to do with the Jews, or the good of the German volk (people). None of the escalating actions against the Jewish people, or the Jewish sympathizers, did anything to improve the plight of the common German...not that this would have justified their atrocities. It was only ever about increasing the power of the Nazi party and their Fuhrer. The Jews were only the Boogie Man the Nazis needed to divert attention from their true totalitarian intentions...despite their populist rhetoric. Their Jewish Boogie Men even gave the Nazis cover for aggression against other countries simply by labeling them as Zionist collaborators.

Well, that was in the past. That could never happen in our modern age, right? While American Leftists have not gone to these violent extremes, they do use the same basic class warfare tactics. The American Left has some different Boogie Men...some of these are Racists, Corporations, Wall Street and Insurance Companies. Instead of offering viable solutions or data to back up their positions or policies, they only need to divert attention...they need only cry, "Look out! Boogie Man!"

From the beginning of the Obama campaign, the racist Boogie Man was evoked for anyone who dared to question his ideas or qualifications. This Boogie Man is also often present at discussions of race relations or illegal immigration. These are topics that we are not allowed to be debated in the public square. You can only agree with the "politically correct" stand of the race-based groups or...look out! Racist...Boogie Man!

Corporations and Wall Street are also often made out to be Boogie Men. Even though most Americans benefit from corporations through jobs or services, the purveyors of class warfare demonize corporate America. They want corporations caged through excessive, and might I add unconstitutional, regulation. They want to bleed companies dry through taxation and corporate fees. If you dare point out that their policies destroy jobs and drive corporations to seek refuge in countries who do not punish them for success...they say that you are just in league with the evil corporate Boogie Men. And as far the Wall Street Boogie Men...how are your investments working out since the Democrats have been in charge? And yes, they were in control of the House and Senate during the administration of Boogie Man Bush.

No one is saying that there is no racism...that corporations, Wall Street or any other target of class warfare are perfect. But the sad fact is that since class warfare has been escalated in this country, things have not gotten better...they have gotten worse. It has only served to feed populist fears and biases and to accrue power to the would-be Boogie Man slayers. But, of course the Boogie Men can never be slain...they are too valuable a source of power for the Leftists.

The goal of class warfare is never to improve things. In fact, when things do improve, as in race relations, the Left changes the rules. Where Martin Luther King Jr's. very worthy goal of racial equality was beginning to become a reality, the goal was changed to "diversity." With diversity, instead of judging a person by their character or abilities, as King promoted, we are now to just make sure we have the correct balance of color, religion and sexual preference. Has "diversity" improved race relations...no, it has caused division. And if you speak out against the tactics, once again the racist Boogie Man serves them well.

Class warfare does not promote debate. It resists the free speech of its enemies. It does not have to show success because it blames it's failures on the Boogie Men. It's policies do not have to be based on sound economic or legal theory because the ends of defeating the Boogie Men justifies their means. And always, we must trust the intentions of the noble Class Warriors.

Class warfare counts on an uninformed and under-educated population. The way to resist class warfare is to know what you believe and why. You must stand on sound principle and historical evidence. You must insist on transparency and open debate. And, you must be aware of the true motives of those who would seek to be your rulers. As you hear the populist rhetoric of politicians and other political groups, ask yourself if it is based on truth. Don't fall for class warfare. Don't fear the Boogie Man.

Of Taxes and Villains

It's all over the media right now...evil Republicans are apparently working with Corporate Villains to send YOUR JOB overseas. According to many of the election ads from Democratic candidates, their Republican opponents have voted for and pledged to protect "tax breaks for companies that ship jobs overseas." In the current economic downturn, this is certainly dastardly doings...but wait...what's the story behind this election-cycle rhetoric?

Well, as with most anything that comes from politicians, this claim is not what it seems. The first clue should be that the exact phrase, "tax breaks for companies that ship jobs overseas" is used over and over again in ads, debates and by the usual political hacks. This is a sure sign that the Democrats have issued a talking point...believing that they can count on the ignorance of the voters to believe their populist drivel.

But there must be something to this claim, right? Well, there is a tax break that these claims are based on, but we must understand the background of the issue before we can judge where the villainy lies. According to an article by William Melick, professor of economics at Kenyon College:

Part of the problem is that taxes are just too high: the U.S. has the second-highest corporate tax rate in the developed world.  And soon we will be number one in a race nobody should want to win, as Japan reduces its corporate tax rate. In the past twenty years every single country in the developed world reduced its corporate tax rate.  But not the United States - it actually increased its tax rate.  The effective U.S. corporate tax rate is just below 40 percent, while the average of the other developed countries is now well below 30 percent.

Corporations are formed to create profit for their owners, whether private or public stock holders.  These profits provide incentive for the owners to produce products or provide service. Profit also attracts investors and allows a corporation to reinvest in their business to expand and develop new products.  A very important side-benefit of corporations pursuing profit is the jobs and benefits provided to their employees.

For corporations to be healthy and growing entities, they must attempt to maximize profit while remaining competitive in their markets.  To do this, they must control their production costs.   Taxes are a cost of producing products.  To control this cost, corporations are often willing to spend millions of dollars to move from one State to another.   This is a major reason that States like California, Pennsylvania and other high tax states have lost many businesses to other, low tax states.

In today's global economy, companies must also compete in the world market. As if to add insult to injury, U.S. tax code, unlike all other developed countries in the world, requires corporations to pay taxes on profits made overseas. Melick gives an example:

The high U.S. corporate tax handicaps our firms when they compete.  When Goodyear, based in Akron, sells tires in South Korea, it pays taxes to South Korea at its 20 percent rate and more taxes to the United States.  Every other country has changed its corporate tax laws to encourage domestic companies to compete in foreign markets.  The result: their firms pay only the 20 percent rate to South Korea.

The evil tax break that the Democrats are trying to make so much political hay from is simply a compromise acknowledgment that something has to be done to help U.S. corporations maintain some level of global competitiveness.  Instead of removing the double taxation on foreign profit, like all other countries, Congress at least provided a deferment.  This "break" allows companies to delay paying taxes on foreign profit until they bring that profit back into the U.S.

The deferment has been painted by the Democrats as an incentive for corporations to export jobs...I see it more as an incentive to keep these corporations from relocating their headquarters to countries who treat them better.  If Goodyear moved their headquarters to South Korea, along with the THOUSANDS of jobs that entails, they could still sell tires in the U.S. market...but would only pay taxes once for this "privilege."  As the disparity becomes larger between countries, this will be a more attractive option.

So with this uncompetitive tax structure and the devalued dollar that makes profit in U.S. dollars worth less and less, the Democrats want to squeeze the evil corporations more so they can continue their own unprecedented spending spree.  They also want to place a higher regulatory burden on companies.  The results of their incompetent, totalitarian policies is the unemployment rates, corporate failures and wrecked economy we have today.

So, who are the villains, the ones who have attempted to provide some relief from the burdensome double taxation imposed on U.S. based companies competing overseas, or the power-hungry bureaucrats who never met a tax they didn't like?  Through years of social training, in government run schools and through government-influenced media, many American have come to believe that corporations are evil and it is only your government who truly care for you and look out for your best interest.  We have come so far from our founding principles that people think higher taxes are a good thing...while the founding generation went to war against this very thing.

No, it is not those who are trying to lower taxes to maintain world competitiveness who are the villains.  They have actually not gone nearly far enough.   It is not the corporations, without whom most of us would not have jobs.  The villains are the tax and spend ruling class who wish to control every aspect of our economy through their onerous tax codes.  These, big government oligarchs care only for their own power. It is they who need to be kept in check and guarded against.

So next time you hear one of those ads, just remember who it is that produces wealth in this country, and who it is who tries to steal that wealth away.