“We renew our resolve that America will
never be a socialist country.”
Someone should alert Trump that America is
now a hotbed of socialism. But it’s socialism
for the rich. Everyone else is treated to
harsh capitalism.
In the conservative mind, socialism means
getting something for doing nothing.
This pretty much describes General Motors’ receipt
of $600 million in federal contracts, plus
$500 million in tax breaks, since Trump took
office. Some of this corporate welfare has
gone into the pockets of GM executives. Chairman
and CEO Mary Barra raked in almost $22 million
in total compensation in 2017 alone. But GM
employees are subject to harsh capitalism.
GM is planning to lay off more than 14,000
workers and close three assembly plants and
two component factories in North America by
the end of 2019.
The nation’s largest banks saved $21 billion
last year thanks to Trump's tax cuts, some
of which went into massive bonuses for bank
executives. On the other hand, thousands of
lower-level bank employees got a big dose
of harsh capitalism. They lost their jobs.
Banks that are too big to fail – courtesy
of the 2008 bank bailout – enjoy a hidden
subsidy of some $83 billion a year because
they have the backing of the federal government.
This hidden subsidy gives Wall Street, giant
banks a huge advantage. In 2017, Wall Street’s
bonus pool was $31.4 billion. So, take away
the hidden subsidy, and that bonus pool disappears,
along with most profits. Trump and his appointees
at the Federal Reserve are easing bank requirements
put in place after the bailout. But they will
make sure the biggest banks remain too big to fail.
When he was in business, Trump perfected the
art of using bankruptcy to shield himself
from the consequences of bad decisions–socialism
for the rich at its worst–while leaving
employees twisting in the wind. Now, all over
America, executives who run their companies
into the ground are getting gold-plated exit
packages while their workers get pink slips.
Under socialism for the rich, you can screw
up big time and still reap big rewards.
Equifax’s Richard Smith retired in 2017 with an $18
million pension in the wake of a security
breach that exposed the personal information
of 145 million customers to hackers.
Wells Fargo’s Carrie Tolstedt departed with
a $125 million exit package after being in
charge of the unit that opened more than 2
million unauthorized customer accounts.
What ever happened to the idea of a meritocracy
-- an economic system that allows everyone
to get ahead through hard work, and economic
gains go only to those who deserve them?
Around 60 percent of America’s wealth is
now inherited. Many of today’s super-rich
have never done a day’s work in their lives.
Trump’s response has been to expand this
divide by cutting the estate tax to apply
only to estates valued at over $22 million per couple.
Mitch McConnell is now proposing
that the estate tax be repealed altogether.
To the conservative mind, the specter of socialism
conjures up a society in which no one is held
accountable, and no one has to work for what
they receive. Yet, that’s exactly the society
Trump and the Republicans are promoting for
the rich.
Meanwhile, most Americans are subject to an
increasingly harsh and arbitrary capitalism.
They need stronger safety nets, and they deserve
a bigger piece of the economic pie.
If you want to call this socialism, fine.
I call it, fair.
What do you think? Do you think the current
system is fair? Let us know in the comments.
If you found this video informative, be sure
to also watch our video on “The 7 Biggest Economic Myths.”
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