Do we have socialist influences in our economy and should we follow them?

With the death of Fidel Castro and the end of an era, thoughts turned to the failure of his brand of socialism within Cuba.  In announcing his death, the left in America’s media downplay his brutality against political foes and his economic failures thrust upon the Cuban people in their reporting. This oversight is intentional and is taken as to not diminish Castro’s legacy and their desire for America to become more socialistic in a similar manner of Castro.

Few in the media offer opinion as to what will happen in Cuba going forward and Cuba’s future direction is anyone’s guess, but the Cuban people will likely continue to demand more economic and political freedom.  If this happens, information will be kept beneath the surfaces as it does not fit the lefts’ message for America.

In America, those in the media and on the far left side of the political spectrum seem to have a romantic view of Castro and continue to target the benefits of state controlled economies despite documented failures.  This is their continuous attempt to move America and its economy away from free markets and into the arms of the state.

This dash towards the state is ever evolving but for the foreseeable future, it appears America will not quickly adopt a ‘pure socialist’ ‘Castro like’ society however, our nation has been drifting towards an intermediate step called Democratic Socialism which is a more palatable variant of socialism to the many American people who adhere to the left’s view and even to many who do not but are becoming alienated by America’s current crony capitalism.

Democratic Socialism is well understood and has been documented by academics and in the common mass media as a panacea for all those who experience it.  In the later, the mainstream media thrusts Scandinavia forward as model America should and must follow if we as a nation are to achieve something akin to Maslow’s  Self-Actualization for our nation.

Democratic Socialism can be defined as:

the term indicates, combines democracy and socialism. Politically, it involves a commitment to popular, constitutional rule and the protection of basic rights. Economically, it involves an equitable distribution of the community’s wealth. Democratic socialists maintain that key aspects of economic life must be publicly owned or socially controlled to ensure this equitable distribution. Socially, democratic socialism involves the belief that all human beings, in a cooperative community, should have the opportunity to fulfill their good and creative potential. There are many sources of democratic socialism, including the Judaic-Christian tradition’s concern for the poor, the nineteenth-century utopians, Marxist thought, revisionists of Marxist thought, the Fabian socialists in England, and the trade union movement.1

Reading this definition one can easily see Democratic Socialism at work today entrenching itself deeper within America’s economic and political systems. For example, government forced redistribution of income and wealth is common and growing. Millions of lower income Americans are treated to a plethora of publicly funded government programs and have become dependent on these programs for their very existence. A headline form the US Census Bureau states how large this Democratic Socialistic practice already is:

21.3 Percent of U.S. Population Participates in Government Assistance Programs Each Month

Democratic Socialism is also well entrenched and controlling large sectors of our economic system.  Our medical, education, transportation, and energy industries come to mind as they are already highly controlled by the state.    The the factors of production in these economic sectors are regulated and controlled. Obamacare is a prime example of the states’ hands in healthcare.

Land, Labor, Capital, and Enterprise and managed by the state in other areas and its grip within these areas are growing rapidly.  During the last eight years, government regulation of our economy has grown significantly:

see https://libertarian57.wordpress.com/2016/11/17/is-this-democracy/  for details.

The question America must ask given the reality of Democratic Socialism’s penetration  within the nation is do we want to continue down this path or is there a better alternative.
1. Riemer, Neal. “The Challenge of Politics: An Introduction to Political Science, 3rd Edition.” Barnes & Noble. Cqpress, n.d. Web. 26 Nov. 2016.
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Is this democracy?

In this highly charged political season, there are many Americans asking why our economy cannot seem to grow enough to keep the nation’s families income rising. During the Obama administration, even a 3% growth rate has been unattainable.

united-states-gdp-growth-annual

This lack of economic growth, has led a decline in real median income for average Americans since 2007.  This is real pain for American families.

median-f-income

One reason for this failure is the statists’ desire to regulate and control the private sector economy. Look at the amount of new regulations placed upon the US economy by non-democratic means over the last two decades.

It is no wonder our economic engine cannot perform.

regulations

A tool of the statists

One method or tool the statists use to reward their friends and punish their enemies is through the US Tax Code or more officially know as U.S. Code: Title 26 – INTERNAL REVENUE CODE . This seventy-five thousand plus pages of rules and regulations is a plethora of tax breaks and loopholes for friends and punishment for those, who for whatever reason, are not fiends of the ruling oligarchy.  Wall Street Bankers, Hedge Fund Mangers, Oil Companies, Alternative Energy Providers, the non-producers of society, and the ever growing non-profit industry are some of the Oligarchy’s friends that readily come to mind.

The main enemy of the state are the working person who derives an income from a W2 reported salary and forced to surrender a large portion of it to the state. That theft along with deficit financing provide the resources to keep the state going.

Murry Rothbard said, “taxation is theft, purely and simply even though it is theft on a grand and colossal scale which no acknowledged criminals could hope to match. It is a compulsory seizure of the property of the State’s inhabitants, or subjects”.1

Rothbard was correct and if this crime by the state could be stopped we would become a more free, fairer, and prosperous society.

  1. Rothbard, Murray N. The Ethics of Liberty. New York: New York UP, 1998. Print.

Let the market determine interest rates

In the past several years, there is much discussion by the medias’ financial pundits and prognosticators as to what the Federal Reserve will do regarding interest rates (federal funds rate) after the 2016 presidential election. This speculation is troubling in itself as it hints of political shenanigans by the Federal Reserve.  Rates have been at historical lows since 2008 as one can see by the chart shown below. One could ask the question what has this blatant manipulation given the average American?  Not much in terms of rising incomes and increased productivity however the equity markets and other malinvestments have prospered.

united-states-interest-rate

How about an entirely different model. Dissolve the Federal Reserve and let banks and other lending institutions lend money based upon free market forces. Interest rate discovery will then be driven by complex market forces which would cause interest rates to rise and fall as the demand for credit increased or decreased. In this free market model, the invisible hand would protect our economy from artificially inflated bubbles and the corrupt politics of the ruling statists.