Socialism doesn’t work. It didn’t work in the former Soviet Union (or its satellites in Eastern Europe), it doesn’t work in Red China (which is opening up free trade and encouraging free enterprise in Hong Kong, Shanghai and other cities), and it certainly isn’t working in the last of the Marxist states, namely North Korea (where people are starving) or in Cuba (where there is an infinite amount of shortages in nearly everything, from food to energy).

It certainly didn’t work here in the U.S. Take for example, the "Great Society" initiated by President Lyndon Johnson. It has been estimated that over 3 TRILLION dollars were spent on the "War on Poverty" (more than was spent on every war this country has been in, from the Revolutionary War to the present). The Great Society failed because it never eradicated poverty nor lifted people out of the poverty level. It did make them dependent on government entitlements, however, and it probably provided a lot of votes for the politicians continued to hand out such entitlements.

There are many in the U.S. who insists that socialism will work just fine, all it needs. is to be "tweaked" a little bit. Many will cite the country of Sweden as an example of the perfect "cradle-to-grave" welfare model.

True, on the surface, Sweden seems to be a perfect welfare state. However, it comes at a price. Earned income in Sweden attracts a local income tax of between 26 and 35 per cent, following by the national income tax of between 20 and 25 per cent.

Income from savings is taxed at 30 per cent. The Value Added Tax (VAT) rate is 25 per cent. Even when purchasing books and newspapers, there is a VAT of 6 per cent.

There are nearly 16 excise duties and swinging taxes on alcohol and tobacco. Taking all of this into account, the ratio of total taxes to GDP is just over 54 per cent!

Along with paying income taxes, there are motor-vehicle tax, road-user charges, fertilizer tax, gift tax, waste tax, nuclear-power tax, lottery tax, advertising tax, taxes on most life assurance premiums, a real-estate tax and, finally, there is a wealth tax. This is assuming you have any disposable income left after all the other taxes. What is astonishing is nearly 300,000 Swedes were liable for this tax last year!

There isn’t any doubt that Sweden knows how to tax. An American of Swedish descent who visited Sweden recently commented on the "underground" economy there. He said that many Swedes hide large amounts of currency in safes, under floorboards, etc. When he asked them why, he was told that, if they put it in the bank, the government would know and tax it accordingly.

Now, those favoring socialism may point out to you that Sweden has a wonderful health and welfare system. This may be true but, despite this, or perhaps because of it, more Swedes phone in sick than in any other country in Europe.

And there is a downside to all of this as well. Sweden has a higher ratio of divorce, alcoholism, drug addiction, unemployment and suicide compared to the rest of Western Europe. Along with that, it now has problems with immigrants from Turkey, the Balkans and other countries coming to Sweden and taking advantage of its liberal welfare laws.

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