In America, we call ourselves a CAPITALIST nation. And we ARE to a great extent. But we were also partly socialist in our political and economic blend. Let's explain.
Four Fifths of our national output is organized through capitalism--large and small private businses owned by individuals, groups of investors, and large corporations. They are composed of home businesses, storefront merchants, and large corporate companies with plants and offices both in the US and abroad.
Most large corporations grew from small operations but they were successful and they added more workers as they sold more goods, or opened more stores and restaurants.
A hundred years ago, Henry Ford was credited with founding a business to make the first cars called horseless carriages. Today there are few horses on the dirt roads and many millions of cars. He innovated a form of mass assembly lines that turned out identical products one after another. Much of the world manufacturing is made by assembly lines of workers, from cars to TV's, airplanes, appliances and most everything.
They were financed with start-up money called 'capital'--put together by wealthy individuals or bank loans or groups of investors pooling their money to start their enterprises. Why did they form them? To build goods or provide services and sell their products at a less cost than their sales prices. The difference between what goods COST and what goods SOLD for, are PROFITS. Sometimes those profits were returned into the business to grow and at some point, were divided up among the investors and sent to them in the form of 'dividends' (their share of the profits based on how much stock they had invested.)
Now the Socialist Part
Government taxes you for infrastructure
Remaining, THE last large FIFTH of our national output. That's the SOCIALIST part of America's economy. The part the GOVERNMENT contracts out on behalf of the public.
The govt collects/seizes taxes from us and then SPENDS it on roads, bridges, public works, water and electric systems, airports, train stations, schools, many hospitals, and protection bureaucracies to oversee private enterprise companies who make food and pharmaceuticals SAFE, oversee aircraft safety, nuclear power safety, build parks, help farmers with subsidies during bad growing seasons, feed the poor, etc etc. Billions and billions of dollars. of good works Americans are very willing to pay for through their taxes. EVERY DAY we see our tax dollars at work, teaching our kids rebuilding roads, fixing potholes, silently making sure there's order, not chaos, to our communications systems.
SOME of that FIFTH is run by government workers, just like the Russians did. Soldiers, teachers, cops, postal workers, some healthcare workers--like the VA, health departments, (For we have a mix of both public and private ownership).
They get paid BY the GOVERNMENT. But the majority, the government doesn't actually produce.
THEY CONTRACT with private enterprise to build them. Govt collects our money and pays private road and bridge-builders, airplane and weapons makers, and yes, to a large part, even farmers. But they own their land and make their products for the PUBLIC.
Republicans are fond if trashing this last FIFTH of our economy. But the taxpayers ARE getting their money's worth. Bridges and highways, traffic signals, road repairs, airport runways, water treatment plants, power grids... these INFRASTRUCTURE INVESTMENTS made by govt with our money are EXPENSIVE. In materials and private contractor salaries!
Four Fifths of our national output is organized through capitalism--large and small private businses owned by individuals, groups of investors, and large corporations. They are composed of home businesses, storefront merchants, and large corporate companies with plants and offices both in the US and abroad.
Most large corporations grew from small operations but they were successful and they added more workers as they sold more goods, or opened more stores and restaurants.
They were financed with start-up money called 'capital'--put together by wealthy individuals or bank loans or groups of investors pooling their money to start their enterprises. Why did they form them? To build goods or provide services and sell their products at a less cost than their sales prices. The difference between what goods COST and what goods SOLD for, are PROFITS. Sometimes those profits were returned into the business to grow and at some point, were divided up among the investors and sent to them in the form of 'dividends' (their share of the profits based on how much stock they had invested.)
Now the Socialist Part
Government taxes you for infrastructure
Remaining, THE last large FIFTH of our national output. That's the SOCIALIST part of America's economy. The part the GOVERNMENT contracts out on behalf of the public.
SOME of that FIFTH is run by government workers, just like the Russians did. Soldiers, teachers, cops, postal workers, some healthcare workers--like the VA, health departments, (For we have a mix of both public and private ownership).
They get paid BY the GOVERNMENT. But the majority, the government doesn't actually produce.
Republicans are fond if trashing this last FIFTH of our economy. But the taxpayers ARE getting their money's worth. Bridges and highways, traffic signals, road repairs, airport runways, water treatment plants, power grids... these INFRASTRUCTURE INVESTMENTS made by govt with our money are EXPENSIVE. In materials and private contractor salaries!
All western countries use socialist arrangements to collect and contract with private companies for infrastructure, safety nets, and more. People who came out of poli-sci college classes thinking capitalism is a religion are the ones not so smart.
Profits or Public Service?
Republican politicians love to cut taxes, but when they do, they cut services Americans want. Services guaranteed by government, but NOT SO by private companies who might, or might not continue them, especially if they're not profitable. Imagine if there were a half dozen competing fire departments in your town. Which one will you contract with to put out your house fire? Which police department will protect you on the roads? Which ambulance service will come if you're hurt in a wreck?
Will you stop to pay tolls at 3 separate tollbooths to drive on private roads to get to work? What if these companies decide they can't make enough money so they just CLOSE their roads, or fire stations?
Profits or Public Service?
Republican politicians love to cut taxes, but when they do, they cut services Americans want. Services guaranteed by government, but NOT SO by private companies who might, or might not continue them, especially if they're not profitable. Imagine if there were a half dozen competing fire departments in your town. Which one will you contract with to put out your house fire? Which police department will protect you on the roads? Which ambulance service will come if you're hurt in a wreck?
In private enterprise, they'd be free to invest their money in other things. How would you get to work if they don't maintain the roads they built and you had to pay them to drive on?
When the government decides to cut children's food programs at school, the kids don't eat. Who suffers the most? Ordinary families or those working for low wages, not the rich. They save on their taxes but they have enough money to feed their own children.
Imagine if one man owned the city's only water well and decides to charge ten times what he used to charge for water? After all, he owns it. Well society through government regulation won't let him gouge us. Similarly, we have federal agencies to protect consumers from greedy capitalists cutting costs with substandard materials--cheap plastics, even dangerous paints. No one complains about those protections except the Republican politicians--who get their campaign funding from such greedy corporations!
So we have an intricate blend of capitalism and socialism---and we have the most stable economy with this BLEND of public and private and we've built the best economy in the world. Hillary was right. IT TAKES A VILLAGE. How could a businessman sell goods without government organized roads and utilities to get his goods to market, and customers to his/her store?
Political ACTIVISM
This is an important election on November 5th... some call it ROEvember 5th. Here is a list of well over a hundred links (News, Progressive, and Conservative web, facebook and Twitter pages wher eyou can keep up on this critical election that has our very democracy at risk. Just read, or participate in these groups. This is a rare and comprehensive list and if you want to help your nation, make good use of it.
Click this link to see the BOOKMARK/FAVORITES file, which you can import into your browser program or just open this bookmark file in your browser and PRESS the SMALL STAR on the address line to save it in your favorites. It will not disturb other favorites you have already created. You may wish to copy this link on your OWN Facebook page to share it with your activist friends.
Back to BEST LINKS
Imagine if one man owned the city's only water well and decides to charge ten times what he used to charge for water? After all, he owns it. Well society through government regulation won't let him gouge us. Similarly, we have federal agencies to protect consumers from greedy capitalists cutting costs with substandard materials--cheap plastics, even dangerous paints. No one complains about those protections except the Republican politicians--who get their campaign funding from such greedy corporations!
So we have an intricate blend of capitalism and socialism---and we have the most stable economy with this BLEND of public and private and we've built the best economy in the world. Hillary was right. IT TAKES A VILLAGE. How could a businessman sell goods without government organized roads and utilities to get his goods to market, and customers to his/her store?
Political ACTIVISM
This is an important election on November 5th... some call it ROEvember 5th. Here is a list of well over a hundred links (News, Progressive, and Conservative web, facebook and Twitter pages wher eyou can keep up on this critical election that has our very democracy at risk. Just read, or participate in these groups. This is a rare and comprehensive list and if you want to help your nation, make good use of it.
Click this link to see the BOOKMARK/FAVORITES file, which you can import into your browser program or just open this bookmark file in your browser and PRESS the SMALL STAR on the address line to save it in your favorites. It will not disturb other favorites you have already created. You may wish to copy this link on your OWN Facebook page to share it with your activist friends.
Back to BEST LINKS
