Marxism Unmasked from Delusion to Destruction.pdf 7471KB

AviNCt, INVetTMENT. AND ECONOMIC CALCULATION
productivity of the worker and conscqucndy d)c higher die wages
the employer can pay. The more capital accumulated—other things
bcmg equal—ihc morr wotken can be employrd at the same rates, or at
higher rates.
Two bufinewnen—j. Howud Frw |1 882-1971) of Sunoco, and lr\ing
( )kk (1887-1963) of U S. Sceel—havr cned. wiUkhii too much success.
10 explain to other butmewmen the eifect of mHation on their capital
u (.umubtion. immtories. deprrctation. and so forth Intlation raises the
I utinessnicn % selling prices, crraiing the illusion that thc\ are nuking
fofits. The government then taJtes and uses for current expenses these
J
ipparrnt "profits" which would otherwise hasr been used for imrsuneni
or set aside for deprrciaoon and rrplacemeni
If an tndisidual lakes out a polir>' uith a pris'aie insurance company.
tlic insurance cimipam' tmrsts this nKmes- I^ter. of lourvc. \shcn the
iti%urance has to be paid out. it has lu disimrsi IndisiduaU loinc to the
I
lint where they must distnvrsi. but imuraiKc lumpanies expand fn>nt
ar lo year. u}d as there is capital atiumubtion taking place in the whole
• "uncry. the insurame companies as a whc4e do tnH hasr to disimrst
Ic IS differrnt with the Social Se(urif> s>*aem I he ginrrnment talks
Ahou actuarial statiaics but this dcx^ not mean wlui it means to an
insurance cctmpany What the inthvtdual pa>-s. the gtnrfnmeni spends for
< urreni expenses Ilie gmrrnmeni then gisrs to the "VkuI Securir>'
i und" an lOU which it calls a "botsd" thus the gtnrrnmeni "imrsts" in
^tnrrnment boncK When the gosnnment cc»Uects "VkuI Security" taxes.
11 says."givr me >\Hir mone>- to spend xnd in rrtuin I pn>mise that in .V)
or 40 years the uxpa>rrs %^ill be willing to pj> back the delx sshich \st
have incurred loda>-" Therefore the SchuI Security »>-neni i* M)nicihing
\Tr>' diHereni fiom pris-aie insurance It doeui't man wiinething has
Inren uvrd On the contrarv*. the sastngs i»< individuals are lollectcd bs*
^ovrrnment for "social security" but they are used lor current expenses. I
tin fully convinced the gosrrnment w\U pa>-. but the question is. in what
kind of dollars? The whole thing depends on the readiness of future
C'ongresses and the future public tc» pas- in good money ll jH-opIc don'c like
the paper UHiney. the>' s%\)n't use it K>r instance. C.alifornu stasrd on hard
currency during the C jsil War era i.y( the greenbacks
Bunurck s idea of social security \sas tlut he wanted e\-er>body to
receive something fiom the government He compared the situation with
that of the French, many of whom owned gcnrrnmcni bonds and received
interest. He thought that was why the French wrre so patriotic; the>'
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