How Would Socialist Policies Hurt America?

Millennials seem to like recent candidate for congress Alexandria Ocasio Cortez and her socialist policies. There are several reasons for this and there are also reasons why socialism will ultimately fail.

Why Millennials Like Socialism

Millennials have different opinions than their parents. A survey last year indicated that 44% of millennials said that they would like to live in a socialist country while only 20% of the baby boomers said they would like to live in a socialist country. The financial problems of 2007 to 2009 have created a lot of mistrust in the financial system. Many Millennials feel that the current economic order is not sufficient enough. Some millennials feel that capitalism is more of a problem than socialism is and this is why they are more likely to embrace socialism. This is why millennials are more drawn two candidates such as Alexandria Ocasio Cortez because they feel that her policies will be better for them and their families in the future. It’s important to note the countries that have embraced socialism have had a lot of difficulty such as the country of Venezuela

Venezuela and Socialism

In Venezuela, the economy in that country has been indecline for several years. The breakdown of their economy has led to the breakdown of society. The medical care system in Venezuela is also deteriorating as well as other government services. This is all a direct result of socialism in that country. The idea of socialism is that it helps the poor but it often has the opposite effect. One cause of the difficulties in Venezuela is that the oil prices have plummeted, and this is greatly impacted the economy of the country. People in Venezuela have seen shortages for basic necessities like toiletries or bread. The country has tried to price controls to deal with hyperinflation, but this policy has not worked. Lowering the price of goods has only caused a run on those goods. The government also had a crackdown on those that they felt or hoarding the cheaper goods. People were arrested because the government thought that they had too much of a commodity which further put a strain on businesses trying to sell goods to stimulate the economy.

Why Socialism Fails and Would Hurt America

The problem with socialism is said it doesn’t stimulate the economy it tends to slow the economy down. Socialism promises equality, prosperity, and security. In reality, it produces misery, poverty, and a tyrannical government. In the early stages, socialism can show success but in the long run, there is always misery and some sort of tyranny. Socialism never works because this is not consistent with the basic principles of our human behavior.

The socialist system doesn’t work because it ignores incentives. When you have capitalist economy incentives are very important. we have an incentive to work at our job, we have private property rights, and we are driven by things such as the market or competition. We get out of the system what we put into it. If we work hard and put forth the effort, we are rewarded for that effort. Those that don’t work and don’t put in any effort, aren’t rewarded because they simply haven’t put in the effort to get the reward in return.

Summary

Socialism lacks the incentives that the capitalist system has. Socialism will ultimately fail because there’s no incentive for people to do their best because they are reliant on the government to do things for them.

 

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