Socialization, It’s Already Here. Why Not Go All the Way?

so·cial·ize (sō’shə-līz’) Pronunciation Key
v. so·cial·ized, so·cial·iz·ing, so·cial·iz·es
v. tr.
1. To place under government or group ownership or control.
2. To make fit for companionship with others; make sociable.
3. To convert or adapt to the needs of society.
v. intr.
To take part in social activities.
so’cial·i·za’tion (-shə-lĭ-zā’shən) n., so’cial·iz’er n.
The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2006 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.

In the United States, some companies in defense, education, agriculture, auto and banking have received either government (a.k.a taxpayer) subsidies or in the case of banking money directly for capitalization.  And in general, these businesses are receiving tax payers’ monetary assistance so that they can adapt to the needs of society.  We have so many regulations of industries and now that we have direct control over some of them like the banks that received TARP money, then why not call it what it is, socialization.  Whatever happened to taking responsibility and ownership?

The reason we don’t is because you must first examine who’s benefiting the most by not calling it socialization?  Well, the owners of those companies because they will lose control.  And the lost of control means less money for them.  We know approximately 50% of Americans invest directly or indirectly in the stock market.  But let’s face it, the top 20% own more of it then the remaining 80% of Americans.  But if it’s taxpayer money then shouldn’t we all be owners?

Now this gets even more interesting with the banks.  If I as a taxpayer is issuing money to the banks via the US Treasury under TARP in order to capitalize the banks, and in addition, I keep my cash on deposit at the same bank with the FDIC insuring my bank deposits, and further the banks borrow from the Federal Reserve in order to lend money to me in the form of a mortgage, then why am I bothered with paying interests on my mortgage to the bank since practically I am part owner of the bank?  I am essentially paying bank management and its employees to lend my money to myself in addition to paying 50% of Americans who are possible shareholders.  But keep in mind, these banks already lost their equity and capital, and were on the verge of collapse prior to taking the TARP money.

Why not just socialize the banks and eliminate the inefficiencies in the banking system.  Lower the interest on all mortgages within these banks that accepted TARP.  This will create immediate discretionary income for all mortgaged homeowners and help them keep their homes which will stop foreclosures which will help stabilize the real estate market.  But since this will make mortgages originating from banks under TARP more attractive than those that did not accept TARP money, there will be a flood of refinancing forcing all non-TARP banks to either come under TARP or face losing customers.  So might as well make every bank part of the same institution and nationalize the whole banking industry.  Some banks or financial institutions are already asking for more second round of TARP money.

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