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| Leon Cooperman |
Then he got serious.
“The Democratic Party seems to be leaning towards the left on policies, which is very harmful for the economy. I don’t like the shift to the left,” he explained to CNBC, adding that the market, of course, will open, but it won’t be pretty.
“It would be a bear market and they go on for a year and go down 25%,” he said. “You don’t make the poor people rich by making rich people poor.”
Actually, Cooperman should be considered an optimist.
If the Democrats hit the trifecta and keep control of the House, gain control of the Senate and Warren ends up in the White House, we are going to see a dramatic shift toward socialism.
Warren will attempt to tear apart capitalism and redirect capital into the bureaucratic coffers of government to the degree she can.
This won't be a business cycle bust, it will be a semi-permanent, if not permanent, shrinking of capitalism and the capitalist base.
The shrinking of the capitalist base, pure and simple, means the shrinking of products and services created. It will mean a dive in the standard of living in the United States.
-RW
Big corporations with their crony connections to big government will do just fine under socialism. However, small business owners like me will be hosed.
ReplyDeleteBig Corps will do just fine for a few years. Then their assets will be "nationalized" and their bosses and owners taken out to the woods and shot when the more radical (and violent) fraction inevitably takes over weak-minded idealists. The lefties are too dim to learn from history.
DeleteSmall businesses which are roughly half the economy: https://sbecouncil.org/about-us/facts-and-data/
ReplyDeleteBut the overall disincentive to invest in any company would be so strong it would effect every business.
Do socialists want the poor to suffer? Who do they think actually gets hurt with that kind of reduction in overall wealth?
Socialists just want power. They use their "care" for the poor and less-privileged to get access to the levers of power. That's it.
DeleteMichael is absolutely right. Socialism is simply about power over others. The early socialists weren't shy about saying that openly. Just read Lenin or Mao.
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