Tuesday, January 5, 2016
The Primaries Are Coming ...
The presidential election of 2016 is already in full
swing. The field is crowded, in particular on the Republican side. All
candidates want your vote, and they all promise that their policies are better
for you.
As I listen to the electioneering, I am overcome by
confusion.
I like some things, and not others. I suddenly realize
why my liberal friends think of me as a conservative, and why my conservative
friends think of me as a liberal. I am one of those guys who look at ideology
as one column in the menu of ideas. By habit or by personality type, I am one
of those guys that often select items from both columns, A and B.
This propensity of picking and choosing drives true
believers nuts. They accuse me of being wishy-washy, unable to make up my mind,
lacking strong convictions, and so on. Some will come to my rescue suggesting
that maybe I am an independent. Independent from what?
I decided to do a little research on the ideology of
both extremes of the political spectrum: socialism and capitalism, mindful that
I am skeptical of anything that ends in -sm. I learned years go that all –sms have two sides. On one side, they seduce
you with all the benefits the ideology has to offer; on the other, they
minimize the negative consequences.
For the two major parties, it is not an all or nothing
choice of these two opposing philosophies, but a more or less combination. Folks
in America do not like being called socialists or capitalists, choosing
progressive (liberal) and conservative (right wing) as desirable substitutes.
One group demonizes the other by referring to its
adversary as extreme -- extreme from their position, of course, but not
necessarily from middle ground.
A cursory review of these two political movements …
Socialism
It came about in the mid to late 1700’s out of “the
general concern for the social problems associated with capitalism.” Over the
years many forms of socialism have emerged. Central to all is the degree to
which to rely on markets versus planning, how should the economy be managed,
and how to distribute goods and services.
A common thread throughout is that the state should
own most, if not all, property. Lately, socialists have adopted a variety of other
causes and social movements, such as environmentalism, feminism, social
justice, pay equity, and liberalism.
Socialists tend to be internationalists. They desire a
world where class differences are minimal, all countries have an equal say over
collective issues, and where one country should not necessarily be better than
another.
On May 1st, socialists celebrate Labor Day.
The hymn they sing during the festivities is called appropriately Internationale, a hymn crafted during
the rise of the Soviet Union.
On the negative side, socialism is often criticized
for its “one size fits all approach.” Although we are all created equal, some
folks will argue, we differ in ambition, capability, and motivation. Many see
the lofty goals of social equality as utopian and far from practicality. Attempts
by many states to plan economies have been utter failures. Government
intervention tends to distort markets, ignore consumer needs and preferences, thus
creating artificial barriers. Critics
suggest that heavy government intervention fosters crony capitalism as political
“oligarchs” choose the winners and losers.
Capitalism
Capitalism is an economic system based on private
ownership of the means of production and the creation of goods and services for
profit.
It all started in Florence, Italy, when wealthy Florentine
rulers began to loan money to the warring rulers of Europe. They did so for
profit (interest). Central to capitalism
is ownership of private property, capital accumulation, and competitive labor
markets. Investments are to be determined by private decision. It is the parties
to the transaction that need to agree on prices at which they will sell or buy
assets, goods, and services.
The degree of competition in markets, the role of
government intervention and regulation, and the scope of state ownership vary
across different models of capitalism. Capitalists will point out that they are
more efficient at producing products and services consumers want.
Capitalists tend to be nationalists. Their primary concern
is for the country in which they live. As a result they promote robust defense
policies, preferential trading rules, and a less intrusive government. In the
U.S. many believe that America is exceptional and blessed by a manifest destiny.
The left scoffs at this assertion and the arrogance they associate with it.
On the negative side, capitalism has been criticized
for its heartless and often greedy and predatory practices. Some suggest that
the notion that markets are free is an invention, and that private property
rights should not trump social needs. Another criticism is that wealth provides
few privileged lives. Other criticisms
are that money can corrupt the political system and that capitalists lack
concern for the environment.
The reality is that most economies are a mix of state
and private ownership. In defense of
socialism, supporters will bring up the Scandinavian example. Indeed, socialism
has thrived there and is accepted as the norm. There are many unique factors
that make the system work in these Nordic countries, e.g., community
solidarity, common values, and a higher degree of interdependence. The rest of
the world is not Scandinavia, critics point out.
Fascism
A few words on this ideology might help since it has
become fashionable to hurl charges of fascist to the opposition, especially to the
extreme right.
Fascism is a form of “radical authoritarian
nationalism that came to prominence in early 20th century Europe.”
National unions in opposition to liberal market practices, Marxism, and
anarchism promoted and influenced fascist ideas in post-WWI Europe.
Its most famous advocates were Mussolini and
Hitler. They were both staunch
socialists. Stalin, although a committed communist, used fascist methods to
rule the Soviet Union by mobilizing the entire country under a strong leader
(dictator) in order to forge national unity and maintain an orderly and stable
society.
History has shown as that both, the left and the right ,of the political spectrum have used fascist methods.
Fascists advocate a mixed economy, protectionist and
interventionist economic policies. They reject assertions of violence
automatically being negative in nature and view political violence, war, and
imperialism as means to achieve national rejuvenation.
In post-WWII years, few parties will describe themselves
as fascist. Political opponents often accuse the opposition of non-democratic
or dictatorial methods, usually using the term fascist pejoratively.
The Middle
Class
Here is a term that you will hear a lot during the
political campaign.
In a not very class-conscious America, it has come to include
just about everyone who is not poor or rich.
If you ask any American in what economic class they belong, most, if not
all, will say middle class, even though they might be poor or wealthy.
CNBC’s survey of millionaires identified 4% of the
respondents as wealthy or rich, while 44% were classified as middle-class. This
leaves 45% in the working class and about 7% in the poor category.
Democrat leaders consider middle-class as anyone
earning less than $ 250,000. The IRS tells us, on the other hand, that 95% of
earners make less than $ 167,000 per year. The cut-off in order to be in the
top 50% is roughly $ 35,000. The
most recent census showed that the average household income was $ 53,637. It was also reported that the
median income was $ 88,800.
These numbers are stubborn facts that no politician
can change. However, that will not stop
them from manipulating them.
So the argument that the middle class, once the
strength of the American electorate, is shrinking is a fact. Tax policies can
narrow the gap between the classes, and avoid using cut-offs or brackets designed
to protect voting blocks.
Some
Interesting Questions
I include this list because you often hear it during
heated debates. You might want to add to this list.
· Does it make
sense to ask those people who do not pay or pay just a few dollars in taxes
whether someone else should pay more?
· Is it easier
to redistribute someone else’s income than your own?
· Why cities
with the strictest gun control laws have the highest crime?
· How can the
rich rob from those who have nothing?
So What?
The electorate, by and large, is not educated to make
the vital choices to cure the nation’s ills. Politicians feast upon this
ignorance! They will appeal to our darkest fears, imagined or real injustices
and grievances, racial inequities, and class envy to get our vote.
Proceed at your own risk!
This worries me a lot. How about you?
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