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 1^st, socialists celebrate Labor Day. The hymn they sing during the festivities is called appropriately Internationale, a hymn crafted in France around 1880 and popularized during Soviet times.

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 20^th 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 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?