Socialism Comes to America

Ten years ago, a whopping majority of Americans (90%) would definitely agree that a free market economy is the better economic system to espouse a democratic political structure. Today, more than half of Americans (about 60%) still support capitalism, but a growing number of millennials say they would rather live in a socialist country than in capitalist America as presently practiced.

With the rising number of discontented in America questioning the current economic model and rationale for existence, it is no surprise that the meteoric rise of the likes of Bernie Sanders and Alexandria Ocasio Cortez, purveyors of democratic socialism are indeed gaining ground and attracting increasing widespread support. They have arrived to challenge a system that has made America’s 1% vastly richer and the rest either stagnant or poorer.

Yet we ask, who or what is to blame for America’s changing of heart. The answer: It is the actions of the Federal Reserve that has turned the tide against American capitalism, with a monetary policy that has by its nature divided the haves and the have-nots. Thanks to Chairman Ben Bernanke’s leadership 10 years ago, he avoided another 1930’s style debt deflationary crash, but the tradeoff is that it has sparked a new generation of socialists especially among the millennials.

We are now very familiar with Bernanke’s quantitative easing (QE), where the Fed printed more money to fund its deficits and finance economic expansion. But cheap money was only made available to its friends in Wall Street – investment bankers, CEO’s of multinationals, fund managers and the privileged elite who get the frequent invitations to dine at the White House. Cheap money did not trickle down to the average American all the way to the bottom. Even worse, if Wall Street f...ks up, it's now almost guaranteed the Fed will bail the Street out.

These actions have continually widened economic inequality more than ever before. It has created a spike and a sense of disgust for the rest of America against the current political environment at Capitol Hills that seems to only favor the rich. This is exactly what Bernie Sanders has been saying for the past 10 years at least.

While the Bezos, the Buffets and the Walton family of Walmart enjoy subsidies and tax breaks; young Americans are trapped with insurmountable amounts of debt from a student to mortgage homeowner [that’s if they can get one].

Imagine, graduating from college and all your life you are working just to service your student debt alongside trying to balance your finances that you get from a low paying job. No wonder that Generation Z and millennials are embracing socialist policies and principles more than ever. As a new Harris / Axios poll reveals, more than 50% of younger Americans favor socialism in the same fashion as practiced in some Nordic countries, more than capitalism.

This generation will be 37% of the electorate in 2020 and more than 75% of the workforce by mid-2020. This is the same generation that wants universal healthcare, free college education and the abolishment of ICE.

If the young generation of America is to mold what the future is to be – then in the next 30 to 50 years we will see the capitalist structure disintegrate thanks to leaders like Ocasio Cortez and Bernie Sanders. For this to happen, the next president of America will have to be a democratic socialist. It may not happen in this election or the next, but it will happen unless some major and dramatic policy directive takes place to address the underlying unfairness.


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