Sometimes, the Democrats leave me scratching my head.
One of the most puzzling names a political movement could choose for itself is “Democratic Socialist.” If their goal was to win over Republicans, it’s hard to imagine a worse choice, since hardly anyone in America is eager to vote for a Socialist.
And. . . .
THEY ARE NOT SOCIALISTS
According to Wikipedia: “Socialism is an economic and political philosophy encompassing diverse economic and social systems characterized by social ownership of the means of production, as opposed to private ownership.
The Democratic Socialists, as they regrettably call themselves, are not opposed to private ownership. But they like certain government programs that benefit those who need help, most.
A democratic socialist is someone who believes that society should be more economically equal and that key parts of the economy should serve the public good, but that these changes should be achieved through democratic elections, civil liberties, and constitutional government rather than through authoritarian rule or revolution.
From Chat GPT:
They generally argue that private markets should continue to exist, but that essential services and major economic decisions should be more accountable to the public.
That is why:
- the military
- the military hospitals
- the U.S. Postal Service (USPS)
- Amtrak
- Los Alamos National Laboratory
- Oak Ridge National Laboratory,
- Argonne National Laboratory
- National parks,
- National forests
- Campgrounds
- Smithsonian Institution museums
- military academies
- public elementary and secondary schools
- public universities
- The Federal Deposit Insurance Corporation
- The Export-Import Bank of the United States,
- The Government National Mortgage Association
. . .plus, many more are government owned, yet very few people complain about them as “Socialist.”
It’s also important to distinguish democratic socialism from social democracy:
- Democratic socialism aims for a more fundamental transformation of capitalism, often favoring greater public or worker ownership of businesses.
- Social democracy accepts capitalism but seeks to regulate it heavily and reduce inequality through government programs.
In the United States, politicians such as Bernie Sanders and Alexandria Ocasio-Cortez are often described as democratic socialists, although many of the policies they advocate resemble those found in social-democratic countries such as Sweden, Denmark, and Norway.
In simple terms: a democratic socialist wants a more equal economy and stronger public services, while preserving democracy, free elections, and political freedoms.
I often have written that one of the biggest problems facing America is the growing gap between the wealthy—the top 1%—and everyone else, the 99%. As the linked reference shows, this widening gap is bad for the economy.
“How much tax did billionaires pay compared with how much richer they became?”
They found: The 25 richest Americans increased their wealth by about $401 billion between 2014 and 2018, and they paid $13.6 billion in federal income taxes. That’s a 3.4% “true tax rate” relative to their increase in wealth.
The reason is that unrealized capital gains are generally not taxed. If a billionaire’s stock rises from $10 billion to $15 billion, the $5 billion gain usually isn’t taxed until the stock is sold.
Bottom line: Relative to increases in their wealth, billionaires often pay very little tax because unrealized gains are not taxable under current law.
A common estimate is that the average American worker earns around $2 million over a working lifetime. Elon Musk is a trillionaire. If he spent each day, what the average American worker earns in a lifetime, it would take him 1,369 years to spend it all.
He has the power to buy any politicians he chooses, which is why Trump allows Musk and his companies so much leeway — leeway that allows Musk to get even richer.
The U.S. federal government is Monetarily Sovereign, meaning it can create U.S. dollars at will with just a few keystrokes. If someone presented a legitimate $100 trillion invoice, the government could pay it immediately without collecting a single penny in taxes.
With a quick tap on the keyboard, the creditor’s bank account would instantly show an extra $100 trillion.
This means the federal government has the financial power to fund:
- The elimination of the FICA tax, which is massively regressive, plus:
- A comprehensive, no-deductible Medicare program for every man, woman, and child in America, plus:
- Increased medical education, research & development, and equipment production to support increased Medicare benefits, plus:
- A far more generous Social Security program for every man, woman, and child in America, plus
- Education aid that would allow more American children to attend college and beyond, to help America compete globally, plus:
- Widespread improvements in America’s crumbling infrastructure, plus
- Any other programs that benefit America, while narrowing the Gap between the rich and the rest.
So no, eliminating FICA, while providing a better Medicare, Social Security and other benefits to the 99% is not Socialism any more than tax breaks for the very rich constitute Socialism.
Strangely, people often say that benefits for the 99% are inflationary, while tax breaks for the rich are not, even though both have the exact same impact on federal deficits. In reality, neither is inflationary. As explained in “The Inflation Myths Debunked,” it’s never about “money-printing” — it’s always about shortages.
Providing benefits to the 99% always has been the core of what the Democratic Party stands for, though some members now prefer that awful label “Democratic Socialists.”
The Democrats have managed to divide the voting public, while the Trumper Party remains united in its belief that the wealthiest 1% should run the country and everyone else should simply do as they’re told.
In short, Democrats are wise about what’s good for the vast majority of Americans, but they are message-stupid about how to get elected.
Rodger Malcolm Mitchell
Twitter: @rodgermitchell
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A Government’s Sole Purpose is to Improve and Protect The People’s Lives.
MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 