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Quick Analysis

A candid discussion on American socialism

Do progressive policies actually accomplish solid results?

As several presidential candidates ask Americans to seriously consider an openly progressive agenda, it is appropriate to examine how that concept has fared in actual practice. The goals of the hard left are in line with President Obama’s desire to “fundamentally transform” America.

Throughout most of its history, the United States has experienced unprecedented economic growth and mobility though an essentially capitalist philosophy. Market conditions which encouraged growth and entrepreneurship allowed vast numbers of Americans to advance economically into the middle class and beyond.

As a possible reaction to the poor results of the Obama presidency, free-market advocates or conservatives have, according to the Gallup polling organization, outnumbered both moderates and liberals since 2009.

However, as presidential candidate Senator Bernie Sanders has openly identified himself as a socialist, and his Democrat opponents Hillary Clinton and Martin O’Malley have for the most part agreed with his policies in an attempt to solidify their support with the left wing of their party, the question of “fundamentally transforming” America from a free market to a progressive/socialist economy has risen to the forefront.

The progressive concept, which is essentially been the mantra of the currently ascendant left wing of the Democrat party.

Progressive policies can be distinguished from other programs such as Social Security and Medicare, which are essentially funds taken from individual paychecks then returned to the taxpayers at a later date when eligibility sets in. Progressive policies center on the concept of “redistributing” wealth from those who have earned or produced it to those who have not.

The late British Prime Minister Margaret Thatcher once remarked that ““The problem with socialism is that you eventually run out of other people’s money.”

As Geroge Will “America’s national character will have to be changed if progressives are going to implement their agenda…consider the data Nicholas Eberstadt deploys in National Affairs quarterly: America’s welfare state transfers more than 14 percent of GDP to recipients, with more than a third of Americans taking ‘need-based’ payments. In our wealthy society, the government officially treats an unprecedented portion of the population as ‘needy.’ Transfers of benefits to individuals through social-welfare programs have increased from less than one federal dollar in four (24 percent) in 1963 to almost three out of five (59 percent) in 2013. In that half-century, entitlement payments were, Eberstadt says, America’s ‘fastest growing source of personal income,’ growing twice as fast as all other real per-capita personal income. It is probable that this year, a majority of Americans will seek and receive payments. This is not primarily because of Social Security and Medicare transfers to an aging population. Rather, the growth is overwhelmingly in means-tested entitlements. More than twice as many households receive ‘anti-poverty’ benefits than receive Social Security or Medicare.”

It is appropriate to note that as those entitlement programs have soared, including a 41% in the supplemental nutrition assistance program (food stamps) social security benefits for seniors have suffered, enduring the lowest amount of cost of living increases on record. Indeed, the social security program itself is facing bankruptcy, since funds that should have gone to insure its solvency have been diverted to progressive programs.

A study of American cities and states where progressive concepts have been used provides an important glimpse into what results the growing trend towards socialist government can be expected to yield.

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Newt Gingrich, quoted in Front Page , has noted that “Every major city which is a center of poverty is run by Democrats. Every major city. Their policies have failed, they’re not willing to admit and the fact is it’s the poor who suffer from bad government.” Since 2013, of the large American cities with significant poverty rates, only Miami has had any experience with non-Democrats hands.

A study by United Way, “Struggling to Get By,” takes a hard look at how progressive policies have fared in California.  Among the key findings:

“One in three California families lacks income adequate to meet their basic needs.  One in three California households (31%) do not have sufficient income to meet their basic costs of living. This is nearly three times the number officially considered poor according to the Federal Poverty Level. Families falling below the Real Cost Measure reflect California’s diversity. One in five (20%) struggling households are white, so while poverty is often portrayed in our media and culture as primarily a problem for minorities, the reality is that families of all ethnicities struggle.”

By contrast, notes the American Legislative Exchange Council, (ALEC) “States that have adopted pro-growth policies have generally witnessed their economies grow, offering greater wage growth and more opportunities for citizens. Yet, despite years of empirical evidence supporting free market policies, some states choose a different path. …

“The empirical evidence and analysis … makes clear which policies lead to greater levels of opportunity and which policies are obstacles to growth. … This … concludes that pro-growth tax policy, that avoids picking winners and losers, provides a fair and competitive environment for all hardworking taxpayers. There are many policy obstacles that lawmakers face when trying to create a competitive economic environment… tools include lowering or eliminating the corporate and personal income taxes, reducing overall tax burdens, reducing or eliminating state death taxes, simplifying tax codes and supporting worker freedom. State policymakers [must] fix their budgets and address long-term pension liabilities.

“Generally, [ALEC’s latest] rankings show that [free market-oriented states]Utah, Wyoming, North Carolina, Florida and Texas are economic hotspots for growth. Furthermore, many of the no income tax states such as Nevada and South Dakota are also economically promising. On the other hand, most states in the Northeast and some states in the Rust Belt are facing economic decline. In the Rust Belt, Michigan, Indiana and Wisconsin deserve major credit for positive pro-growth reforms they have recently enacted after decades of poor policy choices. Additionally, Minnesota and Illinois both face significant fiscal challenges. the Northeast are even worse.”

Internationally, socialism has harmed the prosperity of the nations and peoples who have adopted it. The Foundation for Economic Freedom (FEE) notes: “Socialism is the Big Lie of the twentieth century. While it promised prosperity, equality, and security, it delivered poverty, misery, and tyranny. Equality was achieved only in the sense that everyone was equal in his or her misery.”

The latest example is Greece. Jake Novak, writing for CNBC  eports “while Greece’s epic debt problems have dominated the news, I haven’t heard very much about who is to blame for what’s happened in that country. When any bank or other capitalist entity fails, the news media and the general public seem to name their favorite specific villains almost instantly. The word “profit” becomes dirty somehow and public figures start pining away for a more giving society that never was. But where is the condemnation of socialism and the failed politicians who peddled a proven failure of a system not only to the Greeks but to the half billion people who live in the E.U.? Where is the recognition that when the Greeks recently elected an even more leftist and socialist government, it sped up the path to collapse?”

The problems are not limited to the Old World.  In contrast to the largely capitalist USA, Latin America economies have been far more government-centered. Despite the inherent wealth of resources, many nations in Latin America fail to prosper. Daniel Wagner and CJ Post, writing in Huffington point out that “Even when times have been good, Latin America’s socialist countries have still failed to deliver meaningful political and economic reforms or effective public spending programs.”