The COVID-19 Socialist Trap
Written in conjunction with guest writer LRM.
The COVID-19 pandemic seems on its way to becoming all things to all people. Many people see it as unfathomable daemon, but the Democrats, however, see it as a HUGE OPPORTUNITY. The pandemic, they feel, gives them the chance to remake our democracy into the socialist state of their dreams. And they appear not to be at all bashful about admitting it. Representative Jim Clyburn (D-SC), head of yet another House committee to “investigate” President Trump, called the pandemic a “tremendous opportunity to restructure things to fit our vision.” (National Review 3/26/20). New York governor Andrew Cuomo, in his daily briefings, has repeatedly expressed his desire, not just to return to normal, but to a whole new and better (read socialist) society. In his briefing on May 15, 2020 he urged everyone to “reimagine what we want society to be. Let’s use this as a moment to really plan change that we could normally never do unless you had this situation.” The economic havoc the pandemic has created is, for them, a “dream come true.” Their biggest fear, you see, was rolling in to the November 2020 elections with a robust economy that NO ONE except rabid left wingers (Bernie Sanders, et. al.) would want to mess with. An impoverished (and dependent populace) is an answer to their prayers.
And, in order not to let such a golden opportunity pass them by, the Democrats have proactively introduced legislation to keep the ball rolling. Giving it the irresistible title, the “Heroes Act” (who could be against HEROES, after all), they have legislated another THREE TRILLION DOLLAR package. And this is ON TOP OF the nearly three trillion dollars already spent on the pandemic.
Now, everyone knows that a trillion dollars (let alone THREE trillion dollars) is a lot of money, but we hear it bandied about so casually these days (recall, if you will, Elizabeth Warren’s 10 year FIFTY TWO TRILLION DOLLAR health care “plan”), it no longer surprises or shocks. Accordingly, it might be worth while to consider, for a moment, just how HUGE a sum this is. While most people know that a trillion is a thousand billion, many may not know that a trillion dollars is equal to almost ONE THIRD of federal income tax revenue each year FOR THE ENTIRE COUNTRY. And the three and a half trillion dollars revenue is supposed to cover ALL of our nation’s budget; military, roads, infrastructure, supports and entitlement programs, the works. Accordingly, if the Democrat plan were to pass into law, it would add another three trillion to the previous three, and Congress will have spent nearly TWO YEAR’S WORTH of our entire NATIONAL revenue! And they will have done so in half a dozen months. What happens when that gargantuan bill comes due? Nothing good, I’m afraid. And, herein lies the trap.
In order to pay the six trillion dollar bill, the government has only two options: they must either enact massive increases in taxation which will strangle our economy, or print massive amounts of money which will produce staggering inflation. Either scenario fits right in to a “closet socialist’s” playbook.
If increased taxation is chosen, marginal taxation rates of 70% and 80%, or higher, will likely be necessary. This type of taxation (which hasn’t been seen since Ronald Reagan’s bold tax cutting) was responsible for the dismal economics of the 70’s. If enacted, our nation will once again languish, and all will suffer. It would, however, represent “income redistribution” (socialism)
which is, of course, their ultimate goal.
Unfortunately, the option of choosing to print massive amounts of money is no better. In that scenario, the inflationary rise in cost of living makes just about everyone poor (retirees and fixed income people first) or almost poor, all of whom become dependent on the government’s largess (socialism again).
And, there’s yet another socialist “monkey wrench” in the works. The Democrats have slyly inserted an “insurance” clause into the legislation, JUST IN CASE the economy threatens to come back too quickly. They have structured unemployment “relief” such that 50% of the currently unemployed will make MORE than they did while working. (With the federal unemployment of $600 per week plus state unemployment, the average unemployed worker can take home $900 dollars per week. Since the AVERAGE American worker takes home $936 per week, by definition half of the unemployed make more on unemployment than they did while working). Not surprisingly, many of the unemployed are in “no hurry” to return to the work force. The result will be a slower return to a full economy, which is exactly what socialists want.
Now the new stimulus bill will extend current unemployment benefits (which are set to expire in July 2020) for another 6 months until January 2021. The three trillion dollars also includes up to $6000 per family in a direct payment and another trillion to states. Now there’s no question that this pandemic has been devastating to our society and I do not want to begrudge help to desperate people. But we may be in this for a long time and we must not waste money. Pointedly, the money should not be used for a Democratic “wish list” of social change. Senate majority leader, Mitch McConnell (R-KY) has suggested, wisely, that we pause a minute and reassess the situation before any more money is doled out. While we certainly want to help people whose jobs have disappeared, people who can’t put food on the table and people who can’t pay rent, we shouldn’t be ready to quickly shift our whole economy to an one that is dependent on government handouts.
When people do return to work, we need an economy that is robust and not hobbled by massive debt and taxes that prevent the private sector from creating jobs. We do not want to create a permanently unemployed class (as is common in Europe). Prior to the pandemic we had the strongest economy in the world under President Trump. Unemployment was at historic lows, especially among minorities. Wages were finally rising and they were rising the most for workers in the lowest 20% of income. It is hard to see what needs to be improved about that. No society is perfect and ours is no different, but the way forward lies in building on our strong free market economy. People always work harder when they have “skin in the game.” The government does not create wealth but merely redistributes slices in the pie. The free market gives you a bigger pie.
Let’s not fall for “back door” socialism. Our country will get through this as it got through two world wars, the Great Depression and the Cold War. We need to show the same strength and resolve that our parents, grandparents and great grandparents exhibited. We need to keep our democracy and free market economy strong, and not get caught in an oh so clever “socialist trap.”