Communist Creep

Flow Chart for Communistic Thought Process

            Charles Schumer (D-NY) said “Old fashioned capitalism has broken down, Adam Smith has lost his way amid these big corporations.” The thing I hate most about this statement is that it is partially correct. Free market capitalism has lost its way and big corporations have helped it along. I do not blame the corporations though, they are acting just as they should, and trying to make the most profit they can. The problem is that government has put its foot on the scale of the market. The free market solution would be to limit the government and allow competition to thrive and regulate the market place.

            Each new regulation hurts the small businesses and the poor and lower middle class people. The small business cannot afford to keep up with the new regulation and goes out of business or has to lay people off. While the regulation may hurt a large corporation a little at first, most are usually large enough to absorb the cost right now for the increase market share they gain when there smaller competitors go out of business. This decreases the amount of competition in the market so good do not improve as much or reduce in price as much. This means the goods and services the poor and lower middle class want slowly move out of reach. It also means less jobs as more businesses move away or shut down.

            Schumer and House Minority Leader Nacy Pelosi (D-CA) announced their party’s new economic agenda called “A Better Deal” hoping the echo the New Deal under Roosevelt. They hope that this agenda shows that the Democrats are the party “on the side of working people.” And that their main goals are “higher wages, lower costs and the tools for a 21^st century economy.” (C-SPAN). Schumer goes on in an Op-Ed he wrote in the New York Times to call for $15 minimum wage and providing paid family and sick leave.

            The problem is that he does not say who is going to pay for this. Of course he wants the government to pay for it, meaning hard working people like you and me. To people like Schumer the government is the answer to all the problems of society. He wants to set wages and lower costs, and I doubt he wants to use the free market to do so. The Democrats are starting to sound more and more like Socialist/Communists rather than free market personal choice European liberals they claim to be. The government only has one way to lower prices, the use of force. Centralizing prices is a disastrous idea not only for business owners but for consumers as well. It causes shortages and forces businesses to go under because they cannot adjust prices to help meet costs.

            The minimum wage increase is the worst. A $15 minimum wage will only help the large corporations who can absorb the costs and make it up in the increase in the market share when competitors drop out. It also hurts low income people who may not have the time or money to go to college or trade school by denying them the ability to sell their labor at a lower cost. It takes the liberty away from the worker to determine the value of their own labor. It prices the low skilled laborer out of the market by denying them the chance to work for less now and learn a skill that they can use to increase the value of their labor in the future.

            This is thinly vailed Communism. If the government is lowering the prices and setting wages, they pretty much own the means of product at that point. The only hope I can offer is that the internet, the place the younger generation such as myself get their information from, is pretty good a pointing out socialism and how it is a failed system. Will the American people see through this Communist creep or will they be taken in by these utopian delusions?

 

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