[quote]hlss09 wrote:
TB: in your opinion, what is wrong with socialism, and what is your idea re how to rebuild the American middle class. [/quote]
It’s hard to know where to begin, and it’s even harder to be brief, but in a nutshell - it’s completely (1) incompatible with human nature and (2) completely unsustainable. And, (2) results because of (1), basically.
Socialism is based on a false premise, namely that economics is a zero-sum game where “shares” of an economic pie are finite and one person’s increase of the pie results (unfairly) in the decrease of another person’s portion. It doesn’t work that way.
Moreover, socialism has an inherent flaw in that it cannot resolve the free-rider problem.
There’s plenty of other criticisms of socialism, but that’s a start. At its worst, socialism simply the gospel of envy, a gullible ideology that leads to a worse set of problems down the road because, as they say, “you always run out of other people’s money.”
As for the middle class, first make huge cuts to the entitlement state. If we don’t do something about this now, the middle class will see huge tax increases to pay for the Baby Boom effect. You think the middle class is squeezed now? If we don’t drastically rearrange our entitlements scheme, the middle class will be asked to help pay for it. The biggest thing we can do for the middle class is to get it out of the tornado-like path of the entitlement state, which will crush the middle class in twenty years.
Next, gut the ossified regulatory state that does nothing but kill small businesses. An strong, independent middle class needs an equally strong, independent small business sector. The bloated regulatory state - which imposes enormous costs (with no concomitant revenue raising for the government) and provides a smorgasbord of rent-seeking from big businesses - is strangling this crucial component of the middle class.
Next, stop artificially holding interest rates down. The middle class has been hard-hit by asset bubbles in both real estate and student loans.
Next, reconsider free trade agreements with countries that don’t share our values.
Next, reform education. Many people in the middle class hold next to worthless degrees/diplomas, not simply because they can’t get a job with the degree/diploma they have, but they aren’t educated worth a damn by the education they do get. A smart middle class generates more dividends than simply “good jobs”.
These would be a start. We need real reform - not a doubling down on the policies that got us in this predicament in the first place.