What would Democratic Socialism mean for the economy?
Democratic Socialism, a subset of the democrat party, has been thrust into the spotlight recently with the shocking victory of Alexandria Ocasio-Cortez over a 10-term incumbent. Ocasio-Cortez, often referred to in the media as AOC, is a self identified Democratic Socialist, as was 2016 presidential hopeful Bernie Sanders. Despite this new found prominence, the political affiliation is still widely misunderstood, often confused with communism or European style socialism. So what exactly is Democratic Socialism? And how would a Democratic Socialist platform affect your life?
According to the biggest socialist organization in the US, the Democratic Socialists of America (DSA), "Democratic socialists believe that both the economy and society should be run democratically—to meet public needs, not to make profits for a few. To achieve a more just society, many structures of our government and economy must be radically transformed through greater economic and social democracy so that ordinary Americans can participate in the many decisions that affect our lives." This polished and condensed definition sounds good, but it's difficult to grasp what it actually means in practice. To help you understand, we've broken down the four pillars of Democratic Socialism to explore how their implementation in the American government could affect your life.
Workers Control Means of Production/The Importance of Unions
Perhaps most central to Democratic Socialism is the belief that American industry should be controlled by the workers who run it and the consumers who gain from it. Generally, they believe in a decentralized economy, though they think some indispensable portions of industry, like energy and steel, should be government controlled. As the DSA puts it, "We believe that social and economic decisions should be made by those whom they most affect."
In practice, this decentralization would likely mean the fruition of things like workers cooperatives and publicly owned ventures. Essentially, this economic model would mean that it would be much more difficult for a few people to get obscenely wealthy while those on the bottom of the economic ladder remain impoverished. Instead, everyone would have fairly equal opportunity to profit off the success of a business, creating a more widespread sense of ownership over the success of the economy, therefore stabilizing it. Unions are an important part of this pillar, as Democratic Socialists believe unions are essential in order to hold companies accountable to their workers and to empower workers to challenge capitalism as a concept.
Capitalism Promotes Greed and Must be Regulated
Democratic Socialists believe that capitalism has the inherent tendency to keep the rich rich and the poor poor and that capitalist corporations will always act in the interest of maximum profit at the expense of all else. Therefore, private corporations must be regulated by the government in order to ensure that they look out for the wellbeing of workers and lower rung employees. With this kind of philosophy implemented, there would likely be a strengthening of labor laws, a higher minimum wage, expanded parental leave, the prevention of foreign outsourcing to low wage countries, and the prevention of environmentally harmful activities.
A Minimum Quality of Life for All Citizens
This is perhaps the simplest pillar of Democratic Socialism though likely would prove to be the most difficult to fulfill. Essentially, Democratic Socialists believe that all human beings have the right to sustenance, housing, clean water, healthcare, education, and child care, and that the government should ensure these things are accessible to all US citizens. This would likely mean significantly more spending on social welfare programs and expansion of government housing, which would inevitably require higher taxes. Of course, with the implementation of the other pillars of Democratic Socialism, more people would have a better chance of reaching this minimum quality of life even without an expansion of welfare programs.
Importantly, healthcare is an essential part of this equation in the eyes of Democratic Socialists. They don't merely believe in "medicare for all" health care system, but also that medical facilities should be publicly run and doctors publicly employed.
Grass Roots Means of Achieving Power
As mentioned before, the welfare of the community is important to Democratic Socialists, meaning that the election of the individual is also seen as having the tendency to play into the patterns of the centralization of power. A traditional Democratic Socialist would likely reject the concept of election altogether, instead opting for grass roots organization and mass mobilization. But as shown by AOC and all the other Democratic Socialist candidates elected this year, most who ascribe to these beliefs recognize that it's necessary to participate in the democracy in order to insight change, but still maintain that true change and empowerment comes from the mass mobilization of the people.
Who would they affect?
There has been a lot of recent buzz about the idea of a "wealth tax" in the United States, particularly since Rep. Alexandria Ocasio-Cortez of New York appeared on "60 Minutes" and laid out a plan that would tax the richest Americans at a rate as high as 70%, nearly doubling the current 37% top rate. Additionally, 2020 Democratic Presidental candidate and Massachusetts senator, Elizabeth Warren, is reportedly working with UC Berkeley economists Emmanuel Saez and Gabriel Zucman to design a proposal to levy a wealth tax on Americans with fortunes over $50 million. While these numbers may seem difficult to grasp, the kinds of wealth taxes democrats are proposing are not only not as extreme as they sound, but already practiced successfully in other parts of the world.
Firstly, it's important to keep in mind that America operates on a progressive tax system, meaning, as Business Insider puts it, "as a person earns more and progresses through tax brackets, their tax rate increases for each level of income." So while many people balked at the idea of a 70% flat tax rate, Ocasio-Cortez clarified "Once you get to the tippy-tops, on your 10 millionth dollar, sometimes you see tax rates as high as 60% or 70%," she said. "That doesn't mean all $10 million are taxed at an extremely high rate. But it means that as you climb up this ladder, you should be contributing more." Essentially, the rich would not suddenly be destitute under this proposed plan, they would merely have to contribute an increasing amount as their fortune grew. So it wouldn't be the entirety of their $10 million fortune that would be taxed at 70%, but their 10 millionth dollar. While under Warren's proposal, the US would adapt a progressive wealth tax that would levy a 2 percent tax on fortunes worth more than $50 million, and a 3 percent tax on fortunes worth more than $1 billion, meaning billionaires would contribute amounts that are negligible in the context of their total fortune.
This would be similar to France's wealth tax policy, which is triggered at €1.3 million, but only the first €800,000 of this amount is tax free, and taxpayers pay between 0.5% and 1.5% on anything over this each year. This tax has worked successfully in France, despite it being applied to significantly lower amounts of wealth than Elizabeth Warren is proposing. Meanwhile, in Denmark, the highest tax bracket sees about 15% taxation, and citizens report great satisfaction in terms of quality of life and government services. In summary, wealth taxes are a simple and effective way to ensure that wealth does not become too heavily monopolized by a few people, while also ensuring that the poorest people are taken care of by the state.
But some don't see it that way, with many on the right reacting strongly to suggestions of an American wealth tax. House Republican whip Steve Scalise called Ocasio-Cortez's idea a "leftist fantasy program," while more moderate voices didn't react quite as strongly, but still suggested that while income tax laws definitely need to be reformed, a wealth tax is not the way to do it.
But to truly understand the argument, one has to compare what a wealth tax would mean to a real life billionaire, vs. what it would mean for the country. For example, with Warren's plan, only an approximate 75,000 families would be minorly affected, but the United States would earn an additional $2.75 trillion over a 10-year period. If you take the $57 billion fortune of Mark Zuckerberg, and apply this tax idea, he would only be taxed $1.7 billion, and then close to $0 in the following years if his fortune didn't continue to accumulate. For him, $1.7 billion is a small number that would in no way affect his quality of life. But if you think of the social services that would benefit from that $1.7 billion, you would undoubtedly see widespread effects improving the lives of the poorest Americans, making it difficult to argue that an American wealth tax would do anything but help the state of the nation.
This week, Rep. Alexandria Ocasio-Cortez and Senator Ed Markey will be proposing the most ambitious plan to fight climate change yet.
Recycle. Take shorter showers. Turn the lights off.
Over the past several decades, most of us have heard these diatribes repeated over and over, and have perhaps become numbed to these mantras, which promise that tiny droplets of collective action could potentially save the planet from environmental ruination.
It's true that small changes are important, and that each person contributes to the growing levels of waste and pollution that are killing our ecosystems and raising the planet's temperatures so dramatically that Manhattan-size gaps are forming in Antarctic ice. But it's also true that 71% of carbon emissions come from just 100 companies. It's also true that the scale of the crisis has grown unmanageable, and poses an unprecedented threat to human life.
That's where the Green New Deal comes in.
Image via The Intercept
"It's the only plan that matches the scale of the crisis," said Naomi Klein of the proposal, speaking on livestream yesterday night to thousands of activists tuning in across America. The livestream was hosted by the Sunrise Movement, a millennial-founded organization dedicated to supporting and fortifying the Green New Deal, especially as it's proposed in Congress in the coming week. Klein is the author of This Changes Everything, a book that argues that impending climate catastrophe actually presents an extraordinary opportunity to revamp the world's economic systems for the better. "I believe we were born for this moment," she told viewers.
Named after FDR's New Deal—which revolutionized the entire country on a tremendous scale, planting three billion trees and establishing hundreds of national forests in addition to catalyzing widespread economic, agricultural, and social reforms—the Green New Deal seeks to implant reforms on an equivalent scale in a time when it seems like there is no other option.
Image via Vice News
The plan has gone through several phases, but the one that's being proposed in Congress this week focuses on several fundamental points. First: achieve net-zero carbon emissions by 2030, and transition to renewable energy on a huge scale through initiatives like the creation of a nationwide electrical grid. Second: institute a living wage for all, in tandem with the creation of unlimited numbers of green jobs. These are the plan's main tenets, but its ideological aspirations stretch much further. It hopes to generate thousands of jobs in the form of start-ups and maintenance, and to start a wave of international trade in the renewable energy sector.
The original plan focused on a switch to 100% renewable energy by 2030, but a recent five-page draft obtained today by Bloomberg didn't mention this point, perhaps as a nod to moderates, though the omission is still subject to change. The draft proposes large-scale investment in green technology, the restoration of threatened lands, waste removal, and "massive growth in clean U.S. manufacturing, removing pollution byproducts and greenhouse gas emissions from that sector as much as technologically feasible."
The term "Green New Deal" is not a new one, though it has been going through different iterations since its inception. It was coined in a 2007 column by Thomas Friedman, and Barack Obama included it in his 2008 platform. Britain also took note, but a surge of Republican/Tory victories stymied its momentum.
Image via theintercept.com
The GND has found new life in Representative Alexandria Ocasio-Cortez, the Bronx electorate whose rise to political success has been accompanied by widespread social media fame. Ocasio-Cortez showed up in person to support a Sunrise Movement sit-in in Nancy Pelosi's office, demanding the creation of a committee dedicated to developing and pushing the GND, and since then she has become one of its biggest proponents. Now she will be proposing it in Congress this week, alongside Massachusetts senator Ed Markey. The plan has also garnered support from Rep. Ayanna Pressley, as well as 2020 presidential candidates Kamala Harris, Cory Booker, and Bernie Sanders.
The Sunrise Movement began in 2015, when it was founded by climate activists Sara Blazevic and Varsini Prakash, and quickly gained momentum, taking notes from the heady drive of the 1963 civil rights protests of Birmingham, Alabama. Its founders gathered activists, reached out to politicians, and pulled together the finer points of the Sanders campaign and other recent social movements; the successful Pelosi sit-in was the product of months of organizing.
The movement is appealing in a narrative sense: the vision of young people fighting against bloated fossil fuel behemoths has a definite draw to it. There's also the fact that science says the fate of the entire world requires unprecedented global change over the next few years, otherwise catastrophes like Hurricane Sandy and the California wildfires will become the stuff of the everyday.
Image via theinsurgent.com
But the GND is still just an idea, and it could remain that way. Its lack of specific policy has been subject to criticism, though an official draft has yet to be unveiled, and conservative news sources have labeled it as a hoax, an amorphous idea without policy to back it.
While the GND might seem like an impossibly ambitious proposition, humans have revamped and reshaped the world before a hundred times over, and we are nothing if not creative and adaptive. We've created technologies that connect the globe and turned empty landscapes to highway-lined cities in a matter of years. Now—unless you like the idea of joining Elon Musk's exclusive Mars colony—it's time to turn all of our collective energies towards the future of the home we share.
70 leading Democrats have signed on in support so far, and momentum is building for its official proposition. The Sunrise Movement is planning on facilitating office visits to congress people across the country this week, as well as a rally in Washington on February 26th.
In an age of doomsday threats and constant headlines about plastic oceans and refugee crises facilitated by environmental droughts, the idea of a Green New Deal—something that could actually, genuinely make a difference that touches every aspect of life—seems like a light at the end of the tunnel. Now it's just a matter of getting there.
Image via radioopensource.org
Environmental crisis affects the poor and vulnerable at disproportionate levels; it catalyzes mental and physical illness, economic decline, and overall devastation. Irreparable damage has already been done—but the fight is not quite over yet, though time is running out.
Eden Arielle Gordon is a writer and musician from New York City. Follow her on Twitter at @edenarielmusic.
It was an election night of firsts.
While the midterm elections didn't bring the overwhelming blue wave Democrats had hoped for, they managed to win an important moral victory, electing several representatives from demographics that had never before been represented in Congress.
In the 2018 midterms, the U.S. elected its first Muslim congresswomen, Ilhan Omar of Minnesota and Rashida Tlaib of Michigan, both Democrats. Kansas and New Mexico elected the nation's first Native American women to join congress, Democrats Deb Haaland (KS) and Sharice Davids (NM). South Dakota and Maine elected their first female governors, Tennessee and Arizona sent women to the Senate for the first time, and Massachusetts and Connecticut elected their first-ever black women to the House. These milestones are joined by America's first lesbian mom in congress (Angie Craig, Minnesota), the first openly gay man elected as a state's governor (Jared Polis, Colorado), and the youngest woman ever elected to Congress, twenty-nine-year-old Democrat Alexandria Ocasio-Cortez (NY).
As NPR reports, "record numbers of Native Americans, Muslim Americans and women, including many women of color, ran for office in 2018. A 'rainbow wave' of LGBTQ candidates also sought office. And after the ballots were cast, all those groups notched notable firsts."
These candidates can likely thank a record turnout by women and young people for their victories. The polls found that voters under 30 favored Democrats by a 35-point margin over Republicans, compared with an 11-point margin in 2014, and women chose the Democratic Party by 19 points — the largest margin in the history of US midterms — compared with their margin of four points in 2014, according to network exit surveys from CNN.
Despite these Democratic victories, Trump can take comfort in the fact that Republicans managed to retain control of the Senate, exposing an America deeply divided. As CNN points out, the midterm results "underscored a political and cultural gulf among diverse and affluent liberals living in big cities and their suburbs and the mostly, white, working class and rural conservative bloc of voters for whom Trump remains an iconic figure." The midterm elections proved that the extreme polarization of political leanings, to which many attribute Trump's 2016 election, are still alive and well in America.
But even with consistent support from his base, this new influx of progressives to Washington spells bad news for the Trump administration, as Democrats are prepared to closely scrutinize Trump's policies on immigration, education, and healthcare. But progressive leaders have also made it clear that they don't plan to immediately pursue impeachment, as former House Majority leader Nancy Pelosi said that a call for impeachment "would have to be bipartisan, and the evidence would have to be so conclusive."
Despite this, Trump has already begun threatening Democrats with retaliation if they move to investigate him, tweeting:
If the Democrats think they are going to waste Taxpayer Money investigating us at the House level, then we will likewise be forced to consider investigating them for all of the leaks of Classified Information, and much else, at the Senate level. Two can play that game!
— Donald J. Trump (@realDonaldTrump) November 7, 2018
Senate Majority Leader Mitch McConnell (R-Ky.) has also picked up this defensive tune, telling reporters Wednesday morning that he cautioned Democrats against engaging in "presidential harassment."
In response, Democratic Rep. Jerrold Nadler, the likely leader of the House Judiciary Committee, cautioned Republicans that the election was about accountability for Trump. "He's going to learn that he's not above the law," Nadler said.