Welfare State Meets Mr. Bond Market: Rising Yields Put Socialism's Promises On Borrowed Time

All-In Podcast hosts Chamath Palihapitiya, Jason Calacanis, David Sacks, and David Friedberg recently discussed the "socialism point of guaranteed return," a troubling threshold at which economic deterioration drives voters to reject socialist policies and embrace free markets.

They pointed to rightward shifts in South American presidential elections as evidence of that political shift, with Brazil likely to flip right in the runoff election later this month.

The hosts suggested France may have already crossed the threshold (See EU bond market meltdown), while warning that the US remains in a phase where progressive policy failures generate demands for more and more government spending rather than a change in direction.

All-In's David Friedberg explained:

So, the theory is called the socialism point of guaranteed return. Let's shorten it to SPGR. This is a play on a point of no return. The thing that happens with socialism is that because socialism is so bad as a concept, it literally removes human agency.

It removes the capacity for human progress and it basically takes something away from everyone. Ultimately, socialism always fails. That is like the zeroth law of socialism: it always fails.

First Law of Socialism

The first law of socialism is that you have to cross a threshold before you realize that it has failed.

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Originally reported by ZeroHedge News

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