Armstrong Economics Blog/Politics
RE-Posted Oct 2, 2017 by Martin Armstrong
I have warned that we are in a period where SOCIALISM is collapsing – not CAPITALISM. The distinction is manifest in rising retirement ages, reduction in social benefits, and rising taxation. This is also evident in politics. The Democrats really have no face to put forward as their leader. Hillary lost and even Elizabeth Warren is way out of touch for the average American.
Nevertheless, we are seeing this trend where socialists in politics are in a major decline. The Democratic Party in the USA has been declining ever since FDR won the first election in 1932. Each time the Democrats win, it has been with lower highs and the declines are always making lower lows. Looking at the map of Democratic states with governors, it is shocking to say the least. This is why the press is fighting so hard against Trump and the Democrats are desperate to keep the proposition that Hillary should be president and was prevented only by the Russians. Of course, there is no allegation that any of the emails released from the Democrats were forged. So the info was real regardless of who hacked the Democrats.
Looking around the world we see the same trend, In Germany, the SPD is losing seats. Everywhere we look, Socialist parties are on the decline. Der Spiegel published an article highlighting the same same we have been forecasting that there is a decline of socialist parties in Europe as well. Der Spiegel noted that even a strong socialist candidate in Austria still struggles with the baggage of the “old, sclerotic social democracy.”
We have tagged this past year as the Year from Political Hell. We have witnessed BREXIT, the election of Trump, and the decline of Democrats throughout the USA. In Germany, the socialists were part of the government in 10 out of the 15 countries within the European Union (EU). Der Spiegel suggested that there was a real chance that German Social Democrats will no longer be part of Chancellor Angela Merkel’s coalition following the German vote. The AfD has been rising and soared a major victory winning seats for the first time illustrating the shift to the right.
We are witnessing the same trend in Italy and this too could be an upset in early 2018. If Italy turns away from the socialists, then center-left parties could collapse and hold only 6 EU member states out of 28. That means the socialists would be reduced to the periphery: Malta, Portugal, Romania, Sweden, Slovakia and the Czech Republic. Even the left-wing Syriza alliance in Greece has proved to be a joke failing to do anything for Greece whatsoever.
In the Netherlands, the Labor Party captured only 5.7% of votes in the last election. French Socialist Party candidate won only 6.4% of the vote, and his party went on to receive a miserable 9.5 percent of the vote in parliamentary elections a short time later. In Poland, the Social Democrats lost everything and no long hold even a single seat. In Norway, the Labour Party lost to the conservatives. The only place where the socialists gained was in Britain. There the Marxist/Socialist Jeremy Corbyn won among the youth with promises that could never be kept.
All of this warns that society is turning more to the right because the socialists have reduced economic growth, jobs, and the living standards by raising taxes. The words of King Oscar II of Sweden seem to be coming true.