Socialism is not communism; it is a REFORM of capitalism. Basic economics talks about market failures – things that the free market cannot or will not do efficiently, or at a price the citizens can afford. If you pay into Social Security and Medicare, or receive those benefits, then you are a democratic socialist.
During the late 1800’s Gilded Age, Rockefeller and Carnegie created monopolies; railroads fixed prices; the top 1% controlled 90% of the wealth. Progressivism answered the call of the masses to reign in the excesses of our capitalist system. Republican presidents Teddy Roosevelt and William Taft, and Democratic president Woodrow Wilson, are credited for breaking up the trusts and passed amendments for an income tax on the rich, direct election of Senators, and for female suffrage.
Democratic presidents Franklin Roosevelt and Lyndon Johnson created Social Security, Medicare, and Medicaid.
So democratic socialism is not new, however the younger generation wants to expand the social safety net. I think Finland offers an excellent example of their desires. The Finns are usually ranked in the top three countries where their people are most happy. They have a base capitalist system where if someone works more hours than others, they earn more. However, the rich do not have loopholes, and the majority of the working class pay slightly higher taxes than the average American. The higher taxes in Finland pay for their national health program. No one goes bankrupt from medical debt. Daycare and higher education are paid for.
So, most of the expenses that families must address in the United States would be taken care of by higher taxes on the rich. When Mitt Romney released his taxes during the 2012 Presidential race, he was only paying a 14% tax rate even though making millions of dollars in profit. That is because he was only taxed for capital gains. Anyone that makes more than $1 million per year should not have that deduction.
The key to the phrase “democratic socialism” is this – democratic. The reforms and programs are a degree of socialism, but based upon the will of the people when they elect their leaders. No country’s economy is 100% free market or 100% state controlled: they fall on a continuum.
While I agree with most young progressives, I think evolution is better than revolution. The public needs to be more informed about how our economic system actually works. If you do not get the candidates, policies, or legislation you initially wanted, you must rally behind the candidates that most satisfy your ideals.
Todd Zimmerman
Chairman of the Schuylkill County Democratic Committee