Democrats, Economics, and Me

I noticed something last night. Hillary Clinton doesn’t even know what capitalism is. Really. When asked a question, she went on about small businesses. Those are entrepreneurs, not capitalists.
Bernie Sanders calls himself a ‘Democratic Socialist’, but to be honest, he favors the social safety net, not socialism.
As for me, you’re going to have to find a new description. I’m not socialist, I’m not capitalist. But at the same time, I’m not totally against either of these, so long as they’re only part of the economic system. Part, because there are advantages to be gained from those, and other systems.
Begin with private enterprise, AKA entrepreneurship. Someone sees a need, starts a business, begins making a living. Maybe they even hire an employee or two. Pretty much every candidate at least pays lip service to this, even if they don’t know what it is.
Toss in capitalism. If the opportunity is large enough, that entrepreneur can take in a partner who has money, or several thousand ‘partners’. They’re using surplus money to earn more money. Set up a means of selling or buying the shares they own in a company. Now you’re using ‘capital’, and this is ‘capitalism’. So far, so good; but like communism, unrestricted capitalism must be regulated lest it gain control of the entire system.
Restricted capitalism works fine. It earns money for investors, but isn’t allowed to damage the economy. We need more of that. When a capitalist company moves jobs offshore, because that way they make more profit, they damage the economy. We need a system of regulating this, but short of a major tax overhaul it won’t happen. We can’t keep a corporation from relocating to where it will, either to increase profits or to shelter income from taxes; what we can do is tax each corporation based on access to the American economy. You sell here, you pay taxes here, regardless of where you claim to be based. It’s called a gross-receipts tax system, and it can cancel the advantage that corporations currently have.
Meantime, regulated capitalism works well enough for domestic corporation that can’t offshore, things like the gas company.
Finally, there’s socialism. Socialism can be part of the social contract, part of the social safety net. Socialism is direct government ownership or investment in part of the economy. Socialism does what capitalism won’t do, it funds non-profit activities. Used properly, socialism can be the ‘governor’ that regulates the economy. Make the government the employer of last resort. Lose your job? Work for the government. Do what the CCC and WPA did during the 1930’s. All the money paid to workers is immediately spent, generating more economic activity. When the economy picks up, people take better-paying jobs. But no one has to fear going homeless because he/she can’t find a job. And we’ve surely got things that need to be done in this country.
Education and healthcare are two fields that are currently capitalist, but that need to be socialist. Simply put, they’re too important to be provided only to those with money.
So how do we pay for socialist enterprises and the social safety net? Simple: Quantitative Easing, the same system that was used to bail out the big banks at the end of the Bush presidency. It’s how the Fed creates money, electronically. No printing of currency, just an electronic message generating a balance that banks can use. Or, for that matter, the Social Security Administration can use. Or a new Civilian Conservation Corps. The only thing the Fed needs to keep an eye on is inflation. Economists such as Paul Krugman have written that we need MORE inflation to stimulate the economy.
Unlike efforts such as the Trans Pacific Trade Agreement, this doesn’t rely on any other country to help us keep our economy stable. We can do it ourselves.
So: I favor a balance of private enterprise, capitalism and regulated capitalism, socialism, and a social safety net for individuals.
Not socialist, not capitalist. I think you’ll need to come up with a better descriptive phrase for me.

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