US presidential Democratic hopeful, Bernie Sanders is no stranger to the political fray. He is an anti-establishment candidate, and his views are as dramatic as his opposing number on the GOP ticket – Donald Trump. But what makes Bernie Sanders such a remarkable candidate is his bold approach to tackling hard issues. He makes no bones about it: He’s a socialist. This places him further to the left of establishment types in Hillary Clinton and possibly even Joe Biden. But for some reason, 2015 is a year of voter discontent with Washington pork. The Wall Street fat cats that control Washington DC and their lackeys in the capital have lost favour with the voting public.
This places us at a rather interesting time in American politics. It is the season of the anti-establishment candidate, and that’s precisely why people like Bernie Sanders, Ben Carson, Carly Fiorina and Donald Trump are surging in the polls. For his part, Bernie Sanders is riding the wave of his own popularity – due in no small part to his radical financial policies which equates to wealth redistribution and maximum reliance on government programs to rebalance the scales. Make no mistake about it: Bernie Sanders is gaining traction with a large base of Democratic voters, and as Hillary Clinton’s e-mail scandal saga continues – Bernie Sanders will only rise in the polls.
What is his Financial Plan for America?
As a ranking Senator, Sanders has it all worked out in his head. His 12 point plan has been well articulated on his website and it contains the following initiatives (in no particular order):
Rebuild Infrastructure
Reverse Climate Change
Increase Minimum Wage
Equitable Pay for Women
Affordable College for All
Create Worker Cooperatives
Increase Trade Union Membership
Tax Wall Street Corporations More
Guarantee Healthcare for Everyone
Implement Wide Ranging Tax Reform
Social Welfare Program for All Americans
Protect American Workers with Trade Policies
It is clear from his pre-stated intent that Bernie Sanders is seeking dramatic change to the way the America of the future will operate. In terms of infrastructure development, he is seeking to plough $1 trillion in investment in the hopes that 13 million jobs will be created. On the issue of climate change, Bernie Sanders toes the line with the Obama administration and is seeking to radically transform the US energy system by way of sustainable energy and energy efficiency. He is anti-fossil fuel development and wants technology to be used to protect the environment, provide for America’s energy requirements and create a multitude of high-paying jobs. On the issue of minimum wage, Bernie Sanders gains most traction with his Democratic base of supporters. He wants to ensure that anyone who works a full week – 40 hours – can afford to live well. Currently the Federal minimum wage is $7.25 p/hour and it is insufficient to provide for the basic needs of American families. When it comes to equal pay for women, Bernie Sanders’ campaign is waging war on those employers who do not pay women the same wages as men. Currently Sanders claims that women earn 78% of what their male counterparts earn – that is something he is seeking to address.
Education for the Nation
One of the most pressing concerns for millennials and those who are only now entering college is the issue of university tuition, affordability and repayments. Currently the cost of university education is extortionary in the US. With many single-parent families, even married couples, the cost of sending children to college is prohibitive. Sanders is seeking a complete overhaul of the fee structure that US colleges impose upon their students. This initiative has strong grassroots level support. On the issue of worker Co-op’s, Sanders and his team are looking to develop economic models that will cause a spike in productivity and job creation. He is also looking to reward US corporations that do not send jobs overseas to emerging market economies. Sanders is looking to provide relief to US citizens and residents who buy their own businesses (or parts of businesses) and manage their own operations in the US. Even those workers who have an interest in a corporation tend to be more productive according to Bernie Sanders. This is a big part of his socialist vision for the US.
As one of the big trade union guys, Bernie Sanders is looking to expand the movement to include many more workers who are not part of the trade union. The reason that he is in favour of trade unions is the collective bargaining power of the movement. Bernie Sanders is pro-worker and anti-subjugation of the worker. Nowadays, many US corporations refuse to employ workers who are part of a trade union movement. He wants to do away with that and allow anyone to join a trade union movement in order to increase their collective bargaining potential when it comes to working conditions, wages and worker rights. In much the same way, Sanders wants to hold Wall Street accountable by way of structural reforms. He cites statistics that say that 6 Wall Street institutions control 61% of the assets that generate the GDP in the country. This is yet another issue that has tremendous support at grassroots level. In much the same way as President Obama, Bernie Sanders wants healthcare to be available to anyone and everyone. More importantly he wants to reduce the cost of health care and create a single-payer system to make it affordable, and accessible to all Americans who need it.
When it comes to tax reform, Bernie Sanders wants to hold Wall Street corporations responsible. He cites statistics claiming that over $100 billion annually is lost as a result of loopholes in the tax system allying the wealthy to hide their money from the IRS. In this vein, he is calling for a tax overall and increased taxes on executives with high earnings. Being a socialist, it makes sense that he would opt for sweeping changes to Social Security, Medicaid and Medicare. He wants an expansion of these government-run programs to assist everyone and anyone that needs them. To protect American jobs further, Sanders is looking to bring more work back to the US instead of farming out operations to countries like China, India and other emerging market economies.
What are the problems with Bernie Sanders’ socialist vision for America?
The most important critique of Bernie Sanders’ financial policies is that they are expensive. Socialism costs money, and somebody has to foot the bill for all of these government-run programs and wealth redistribution initiatives. Whenever government assumes responsibility for the provision of increasing infrastructure growth and development, raising minimum wage, ensuring health care, social security, unemployment benefits, safeguarding jobs and expanding the role of trade unions – something has got to give. America is already $19 trillion in debt, and massive government expenditure – even for a wealthy country – is a recipe for disaster. It has been proven time and again that taxing corporations more does not necessarily impact on those being targeted. In other words it is the workers and everyday consumers that end up footing the bill for increased taxes since we are all part and parcel of the same economic system.
When a company’s cost structure increases, this is ultimately the burden of the consumer who ends up paying more for the same goods and services. The short-term benefits for socialist programs appear to be noble and equitable, but the long-term costs can prove disastrous to the economy at large. By placing undue pressure on those with resources, it is ultimately those without resources who bear the burden. A ‘Robin Hood Tax’ on speculators would have a detrimental effect on overall US economic activity. By shrinking this component of Wall Street, the entire economic system shrinks and the resultant declines in tax revenue would offset any benefits that Bernie Sanders hopes to achieve with his policies. Still, there is plenty of merit in his noble and ambitious objectives and with the right economic team advising him, there are ways to generate more revenue for everyday Americans while growing the economy and keeping big business flourishing. And clearly Bernie Sanders is winning the hearts and minds of a large and growing voter base.
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