I'm Rick Kahler, thanks for joining me.
Increasingly in the US, it's becoming more socially
acceptable, perhaps even fashionable, to be anti-wealth
and anti-capitalism. Even identifying as a socialist
is gaining popularity. Today, embracing socialism
is no longer the dominion of the far left. A number of
mainstream politicians, including presidential
candidates are self-identifying as socialist.
According to a February 19th article by Mike Allen
in Google's Axios, polling shows younger Americans
are souring on capitalism and don't find the label
socialist scary or demeaning.
Interestingly, the meanings I see thrown about for
socialism and capitalism rarely agree with the
traditional definitions. Let me give you an example
some self-proclaimed socialists call for higher taxes on
the rich, more funding for massive infrastructure
improvements, and expanding social welfare programs
with proposals like Medicare for all.
Now these are not necessarily socialism but
rather an expansion of social programs.
There is a difference. Socialism is an economic system
in which the means of production and distribution
of goods are owned and controlled collectively
or by the government. It's characterized by production
for use, rather than profit, by equality of
individual wealth and incomes, by the absence of
competitive economic activity,
and by government determination of investment prices
and production levels. Truly socialistic economy has no
privately owned business.
Since all businesses are owned by the government
there is no competitive force serving
to improve services or drive down prices.
And prices aren't set competitively but
by government policy and government boards.
Everyone is economically equal, with no rich or poor.
At least in theory.
Embracing increased taxes on fossil
fuels and more government spending for healthcare
or green initiatives is not inherently a call for a
socialistic economy. It is a call for bigger government
and placing more restrictions on free enterprise,
which is only a step toward socialism.
For example, the Scandinavian countries have massive
social programs. Yet they are not socialistic economies.
Their systems, their economic system, allows for free
markets and private ownership of business
and property, meaning their social programs are funded
by capitalism and free enterprise.
We have yet though to see a society that has tried real
socialism and pulled it off.
Countries that have attempted it, according to Forbes,
are China, Cambodia, Cuba, East Germany, Ethiopia,
North Korea, Poland, Romania, the USSR,
and Venezuela. Even though many of them have
abandoned socialism, the effects are pretty long-lasting.
According to The Economist, of these countries, in 2016
Poland had the highest standard of living
ranking at number 68 worldwide.
Israeli David Rubin, author of the book
Trump and the Jews, says in a February
Yonkers Tribune article, "I must warn my
many American friends to learn some critical lessons
from Israel's socialist past." He points out that
Israel's founders created a socialist based economy
intended to provide financial security
for its new citizens, including millions of refugees.
The country struggled with economic stagnation,
soaring inflation, low wages, high prices, and in the
1980's Israel began a shift to a
free market capitalistic economy,
and today it's economy is thriving.
An idea strongly identified with today's
self-identified socialists in the U.S.
is the "Green New Deal" and it's a resolution which failed
to pass in the Senate. In addition to
the proposals to aggressively reduce
greenhouse gas emissions and require the
use of renewable energy, it also calls for guaranteeing
a job with a family sustaining wage, adequate family
medical leave, paid vacations, and retirement security
to all people of the United States. Imposing stringent
regulations on property owners and businesses,
isn't inherently socialistic.
Although it would raise prices for everyone,
especially the low-income Americans
the proposal intends to protect.
However, guaranteeing a life long sustainable income
for every person in the US and making health care the
dominion of the government, does take a giant step
towards socialism.
Thanks for listening.