I appreciate your intent; your analysis is in error.

Reader comment on: Thomas Peterffy on America, Hungary, and Socialism

Submitted by JB (United States), Oct 13, 2012 18:59

Dear Mr. Peterffy, I appreciate your concern about socialism. Your conclusion that socialist tendency has caused the current economic problem is incorrect i one point and correct in another. (1) Part of the problem derives from structurally distorted capitalism where incentves are skewed to reward those who did not earn it, taking from those who earned it.

(2) You are correct that socialism is playing a part in this problem, but it is not the socialism of people failing to strie for success. Rather, it is the socialism of guaranteeing the finance sector's success: if they fail, the taxpayer will rescue them. Take note that, when there are problems on Wall Street, the "self-corrections" expected of the sector only take place when the FED guarantees to protect them from risk, and usually inputs capital as well. This is the socialism of which you should speak.

Some people achieve great success by earning it. We applaud them. Some achieved material success by taking from those who earned it. I know no one who is "badmouthing" sccess. I only know people who want the structural distortions orrected so capitalism can work as it is supposed to.

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