(TNS)Â Economic Disaster: The President’s Council of Economic Advisers has just released a report detailing just how bad the U.S. economy would become if ‘Democratic’ Socialists like Alexandria Ocasio-Cortez and Sen. Bernie Sanders, I-Vt., ever take control of the government.
“It is unclear, of course, exactly what a typical voter has in mind when he or she thinks of ‘socialism,'” the report states. But economists generally agree about how to define socialism, and they have devoted enormous time and resources to studying its costs and benefits.
“We find that historical proponents of socialist policies and those in the contemporary United States share some of their visions and intents. They both characterize the distribution of income in market economies as the unjust result of ‘exploitation,’ which should be rectified by extensive state control. The proposed solutions include single-payer systems, high tax rates (‘from each according to his ability’), and public policies that hand out much of the Nationâ€™s goods and services ‘free’ of charge (‘to each according to his needs’). Where they differ is that contemporary democratic socialists denounce state brutality,” the report added.
Essentially, the report examines the most popular DSA proposals such as “Medicare for all,” full tuition reimbursement for higher education, housing allowances, and other forms of taxpayer-supported assistance, all of which are government-run and which are hallmarks of what many would define as modern socialism.
So basically, while modern European-centric socialists envision all of the state control without any of the brutality and authoritarianism normally associated with this economic model, the end result would be massively underperforming economies, widespread joblessness, fewer opportunities, far less economic growth — and then, eventually, authoritarianism because the population would grow restive and uncontrollable.
Medicare-for-all alone would cause aÂ 9 percent reduction in real GDP and a 19 percent reduction in household incomes after tax and health spending, the CEA concluded — and that’s before you add in all of the other freebies.
Plus, such a plan would likely not succeed, the report said, because central govenrment-runÂ anything is far less efficient because there is no incentive to provide a better service.
“The historical evidence suggests that the socialist program for the U.S. would make shortages, or otherwise degrade quality, of whatever product or service is put under a public monopoly,” the report concludes. “The pace of innovation would slow, and living standards generally would be lower. These are the opportunity costs of socialism from a modern American perspective.”
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