Social Programs Reduce Poverty | Notice
In Sanderson Smith’s letter, “Beware of Socialism,” published in the CVN last week, he blames unemployment benefits for the failure of companies to find willing employees. There is no supporting data. More likely, it is the lack of child care, the risk of Covid-19 or other factors.
As long as billion dollar companies evade taxes, “giving away money our nation doesn’t have” will be problematic. Trump’s tax donation increased the deficit by nearly $ 4 trillion.
The middle class grew considerably after World War II with the graduated tax rate, when rising incomes resulted in higher rates, with the marginal rate exceeding 90%, until 1963. Since then , the tax burden has shifted from businesses and the wealthy to the middle class. , leading to the shrinking of the middle class today.
His discussion of socialist countries is a red herring. Almost no country embodies socialism or pure capitalism. The definitions are in order: socialism is a political and economic theory of social organization which advocates that the means of production, distribution and exchange be owned or regulated by the community as a whole, while under capitalism, a country’s commerce and industry are controlled. by private owners for profit, rather than by the state.
In reality, the United States and most of the developed world are a mixed market economy. Police and fire departments, river basin districts, and all community social programs are examples of socialism. Other examples are Social Security and Medicare. Social Security has reduced poverty among the elderly more than any other program.
Biden does not support free college or free health care. Its national agenda is rather in line with its campaign platform. Rather than proclaiming “socialism is bad,” we need a measured approach that assesses each potential program on its merits. This is the current state of the Universal Basic Income (RUB) which, after multiple successful pilot programs, is increasing the number and scope of pilot programs. Google “UBI” and “Tubbs”.