It is official. eIndia has entered the official stages of socialism. I know, I know, I shouldn't be running my mouth off because it's only going to upset the majority of you. Well, I'm not going to keep shut on this one.
When I first came here, I noticed the large number of government owned companies. I am not completely sure if they are funded by the government, but all I know is that they are owned by the government. This set some alarms off in my head. Later, I realized that they were simply set up to keep the market prices from skyrocketing. But as I read in David Forde's latest article, OFFICIAL PRESIDENTIAL STATEMENT, I found myself to be correct. By using government funds to increase everyone's salaries and regulate the market; that is socialism.
According to Dictionary.com, socialism is defined as-[A] theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole.
I believe that this definition perfectly suits the current state of this eNation, or if the 'scheme' goes into effect. If government funds have already been used and are being used to support the government owned companies, it is already a socialist state.
This plan is basically is one big short term gain. In the long run, it will drastically weaken the state's authority as well as deplete it's funds. In this 'scheme', the government will be giving out a ton of money. This will basically act as a stimulus package, which eIndia doesn't need because the economy here is already growing. Once the money goes to the people, it will go to a couple of different places. First it will go to companies. Obviously, some people will save it and keep it for a while, but eventually they will spend it. Once the company receives the increased income, it will probably raise the pay for all of it's employees (notice this is the short term gain). Due to the increased demand on products, the company will then spend a larger amount of money on raw materials. Where do the raw materials come from? Foreign countries. eIndia doesn't have a single high resource in it. If it did, then some of the money would be staying here and it might work. But since we don't have any raw material companies, the majority of the money will be leaving the country. Plus, domestic companies can get the raw materials way cheaper in foreign countries because there is more competition. This will basically send most of the money out the window to foreign economies. In the end, the government will be receiving less money from taxes, because the money has left the country. This will mean, either less money for them to give out, or they will scrap the program altogether. This will eventually bring salaries back down to where they were or drop even lower. It will also make everyone more dependent on the government for cash.
Please re-think this plan David! I am writing this not to get a ton of comments, but to warn of the ending disaster this will cause. Oh, and if you haven't voted on weather I should stay or leave, you can vote here.
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