June 4th, 2009 15:47 EST
GM and Socialism: A Recipe for Success?
Is 60 Percent Taxpayer Stake First Step Toward Socialism?
It started with the bailouts " first the banks, then AIG, and now the auto industry. Now, the unthinkable has happened " General Motors has not only filed bankruptcy, but it is spinning off a smaller, leaner company that is now 60 percent owned by taxpayers as a result of bailout money promised to the once-giant automaker. The move may save some jobs, but does this development constitute a big step down the slippery slope into socialism?
Howard Ruff thinks so, and he is ready to shout it from the highest mountain.
Ruff is probably the most influential financial pundit you`ve never heard of. He has been publishing his financial newsletter, The Ruff Times (www.RuffTimes.com) since the 1970s, and has had more than 600,000 subscribers. In 1977, he wrote the best-selling book on finance of all time, How to Prosper During the Coming Bad Years, and Berkely Books just released a new edition with updated information to reflect the new recessionary pressures. In the world of financial commentary, he is old school. Cantankerous, cranky, articulate and brilliant, he never minces words nor dodges his old fashioned traditional values.
An accurate definition of Socialism is government owning or controlling the means of production. " It`s exactly what the U.S.S.R. did when they took over all means of production and everyone worked for the state, according to Ruff
A huge step in that same direction was taken when the Bush Administration gave billions to General Motors, provided that the government could dictate what kind of cars they would make based on environmental dogma, even though those are not the cars people want, " Ruff said. Along with the insane union contracts, it simply guarantees that General Motors will continue to be unprofitable. "
When the White House demanded the CEO of GM resign, it sent a chill through just about every major industry in America, with business leaders wondering if they are next on the hit list. Ruff believes the de facto effect is that we now live in a country where the president can fire anyone in private business he desires.
Granted, the Kremlin was much less delicate about such matters " they`d simply ship anyone who disagreed with them to Siberia, or imprison them indefinitely. However, the principle remains the same. And that principle is called Socialism.
Socialism not only doesn`t work; it never has, and it never will, " Ruff said. Countries that have tried it have collapsed, and we are near the collapse danger zone. The U.S.S.R. collapsed because of socialism, and yet Obama is rapidly galloping into the maw of socialism, converting America from a free-enterprise society into a government-owned-and controlled society. "
About Howard Ruff
Howard J. Ruff, the bestselling author and financial advisor, has re-edited and re-issued his 1978 mega best seller, How to Prosper During the Coming Bad Years, still the biggest-selling financial book in history, with 2.6 million copies in print. He is founder and editor of The Ruff Times financial newsletter (www.RuffTimes.com). There is a free Special Report that tells you how we got into this mess, and whose fault it is. The newsletter is very comprehensive and deals with a broad spectrum of middle-class financial issues and includes an Investment Menu from which you can build your portfolio in this mess they have created. The Ruff Times has served more than 600,000 subscribers " more than any financial-advisory newsletter in the world.
To interview Howard Ruff contact Rich Ghazarian email Rich@NewsAndExperts.com.