SOCIALISM, CAPITALISM AND TRUMPISM

The phony debate at the moment is about whether the future of America is going to be Capitalist or Socialist. Before getting involved in sorting that out the more critical choice is really between whatever and Trumpism. The latter has no consistent economic or political philosophy and his behavior is just sheer naked totalitarianism or rule by tweet only modified by his narcissism.  

The main reason that the 2020 Presidential battle is being framed in the form of a choice between economic systems, is that it has been labelled as such by none other than the Tweeter in Chief. The POTUS has claimed that the threat at the moment is that the Democrats want to turn America Socialist or as clarified by the philosopher - king, Trump, into Venezuela. There will be and more of this refrain as the polls indicated that the only Democratic candidate that the electorate would not favor against Trump would be a “Socialist”. The irony is that this erratic President has in his unfulfilled promises to the electorate veered towards policies that are more “socialistic”, especially on trade, than anyone else in the current Republican Establishment. 

THIS PHONY DEBATE BETWEEN THE “ISMS” IS NOT A JOKE

This would all be a joke but the POTUS’S faithful forty percent are not yet laughing. So Jay H. Ell will provide a ready primer for the faithful that are open to listening. 

Firstly the reason this is resonating at all is because several in America have not emotionally accepted that the Cold War is over. Russia has gone crony capitalist and so has China. In any case they both purported to be Communist but were, (and still are), merely repressive totalitarian states. Secondly Bernie Sanders said he was a socialist Democrat even though Robert Reich, the political analyst and former Clinton Labor Secretary and a big supporter of Bernie in the last election cycle told him that he wasn’t. (The Russian bots that supported Sanders over Hillary  in the last election played up his “socialist” credentials). Bernie since has become a millionaire cashing on what he condemned Hillary for cashing in on - political fame. Consequently he has been somewhat muted this cycle. 

But all this is besides the point.

 WHAT ARE THE ISSUES?

The point is that every Democrat, to a lesser or greater extent, is going to run on decreasing financial inequality, increasing the tax rate for the rich, expanding the number covered by one or other form of healthcare delivery system, infrastructure projects, student debt, and widening the safety net for the disadvantaged. The Democrats would like to continue where they left off with Obama in putting into place regulations that don’t allow a repeat of the financial crisis of 2008. In a nutshell Elizabeth Warren who has articulated it best wants to control the excesses of the market while sharing some of its successes.  

The point too is that Trump will not be running against the existing “socialist” policies in the present government welfare institutions such as Medicare, Medicaid, Social Security and the like. He will ensure the VA that their healthcare system, which is more “socialist” than the British or Canadian systems, will remain intact. He will be once again promising higher wages for non existent manufacturing jobs, reopening the coal mines, better healthcare than Obamacare, infrastructure projects and other benefits that one might expect from a State’s Administration taking responsibility for redressing societal imbalances. All these false promises are arguably from the “socialist” playbook although he can truthfully maintain that he has really no intention to enact them as he has already proved.

No -one, not even Bernie, is going to promise to take away property from individuals, hand the means of production from companies to the State or centrally control all the economy and social activity, which is broadly the definition Socialism.  Mind you come to think of it the Republicans, led by Trump, are aiming to take control of women’s bodies and reproductive rights just like Communist China did before they became Capitalist. The Chinese have now an age and gender imbalance that is going to result in an even lower birthrate than they had in the past with a fraction of the population supporting the aging population.

 CAPITALISM

The principles of unbridled capitalism akin to socialism have been modified. In its rawest form Capitalism claimed that the market would sort everything out making no or very little allowances for the inequities inherent in society.  Friedrich Hayek was the most famous modern day advocate of capitalism believing that unhindered market forces with no intervention even in times of depression was the way to go. Margaret Thatcher and Ronald Reagan were Hayek’s greatest admirers. In fact had they read him comprehensively they would have noted that even he advocated some form of social umbrella in the form of universal health care coverage as well as unemployment insurance. 

It is fair to comment that Capitalism is superb at creating wealth. If any proof is needed as to its effectiveness of lifting billions from poverty look what has happened in China. Modern day Capitalism’s central problem is the distribution of the wealth that it has created.

It is also fair to argue that Capitalism, markets and trade have been responsible for incredible advances as well as venturing into projects that have served important social and economic benefits for individuals and society. 

What recently struck Jay H. Ell was the neglect of one of the mandatory obligations of society. tertiary education, which has become more and more scarce, competitive and expensive. The answer lies is the internet but Governments, Universities and Colleges have not led the way, in making training and valid degrees available on line to the masses that need them. There is an international for profit organization 2U that has taken on this essential project on a global scale. It is uphill - battling with the logistics, the isolationism and conservatism of the ivory tower just being a few of  the challenges. The company has made inroads on three continents including Africa where their headquarters with seven hundred employees is in Cape Town, South Africa. A number of prestigious universities have joined but there is a long long way to go. The problems are immense and include for example the setting up of electives and the training component where applicable. The Universities are totally responsible for standards and course content. In one instance in California a renowned institution made a real hash of the task and fell into financial trouble. 

There is something that sticks in the crawl about this being a for profit undertaking when it is obviously a societal obligation but that is the fact. The company is deeply in debt at the moment being run by a visionary who left other simpler ways of making money. There are very few who wouldn’t wish him success. 

TRUMPISM AS AN ECONOMIC PHILOSOPHY.

Well what is Trump offering? His movement has been loosely labelled “populism”. Thus far he has not delivered on narrowing the wealth gap. Studies show that over forty percent of the population could not sustain a sudden expense of $400. Nor has he delivered health care as promised. His chaotic trade policies are if anything anti capitalist as are all his policies attacking companies whom he just happens to disagree with. He has delivered a massive tax cut which has largely benefited the rich and once again “trickle down” economics was just that - a trickle.. His ill thought out trade policies are threatening a far higher cost of living, Truth be told he has no coherent economic philosophy. He appears to be making it up as he goes along. Some have argued that his principle objective is simply to benefit himself. Then he has no coherent anything but that is a story for another day. 

AT THE END OF THE DAY

The issue is not about the “isms” on the economic front it is about equity. Then it is not only about economics it is about values, sharing, integrity, dignity, coexistence, tolerance and respect, all of which Trump is a bit short on. Hopefully the electorate will not fall into the trap of yet another nonexistent bogeyman that Trump might create. He is the world’s number one salesman who is highly inventive at persuading the customers what it is essential to purchase. Ironically many of his unfilled  promises are all based on the “socialist” principles he is railing against. He has more in common with the "socialist" Venezuelan leadership’s corruption than any other politician on the American scene. 

The apparent stupidity of Trump leads so many to underestimate his genius at the con game. Even those Republicans like Mitt Romney who called him a conman have been conned into buying the Trump narrative. By every precedent Trump will be dumped on the trash heap of history but there is long way to go and no certainty that all America won’t be dumped with him.