Monday, October 09, 2006

Socialism Is A Ponzi Scheme

A government report in Spain determines that Spain will need 4 million new immigrants by the year 2020:

BARCELONA — Spain will need at least 4 million more immigrants - between 16 and 64 – by 2020, according to a study. The report, prepared by the regional government of Catalonia, looked ahead to the situation in 2020. It said the nation's relatively low birth rate was not sufficient to provide Spain with the workers it would need in the coming decades.

Project coordinator Josep Oliver, a professor of applied economics at the Autonomous University of Barcelona, said this was the minimum number of immigrants needed to keep the economy growing at the pace of the past decade.

The report also said a minimum level of social and educational policies should be maintained to ensure that as many native Spaniards as possible enter the labour force.

Oliver said immigration was "unavoidable and necessary" because "if no one else enters, there will be a significant aging of the population," and, as a result, a lack of workers, so "if we do not have them here, they will come from outside".

In calculating the number of immigrants needed, researchers factored in annual workforce growth of 2-3 percent and gross domestic product growth of 3 percent annually. "Workplaces produce the call effect" since "we need immigrants," but if a large wave of immigrants arrives it could create a "worrisome clash, given the problems seen with integration in other European countries," Oliver said.

Realistically, a country only needs to employ its own working age people. If everyone has jobs, then they can feed their families, clothe and house their families, and that's what we expect out of an economy.

So then theoretically, wouldn't an economy with fewer people be easier to run? I mean, if you have fewer people then you have fewer people to employ, right? It doesn't really matter how big the pie is as long as there is enough to go around.

No, but that isn't true in a socialist economy, where a large percentage of people are living off government welfare programs of various kinds. Such an economy requires ever more workers to pay taxes in order to fund the ever growing social programs.Here's a little blurb on Ponzi Schemes from Wikipedia:

A Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The high returns that a Ponzi scheme advertises (and pays) require an ever-increasing flow of money from investors in order to keep the scheme going.

The system is doomed to collapse because there are little or no underlying earnings from the money received by the promoter.

Yes, and the socialist governments of Europe are going to collapse as well, if Europeans do not wake up and start voting for leaders who will cut taxes and welfare rolls.

Ponzi schemes are against the law for good reason. They leave the lives of innocent, naive people in ruins. I wonder how long history must progess before the people awake and government run Ponzi schemes are outlawed.