Anigav6969 wrote:
We already live in a Social Democracy......40% of the Country are on Gov't healthcare as of right now....some believe we should have medicare for all....kinda like all of Europe, Canada, Japan, Australia, etc....and education for all of our youth is an investment in our future.....after that, I think it's about housing the poor ...etc....they have some interesting points
I haven't the time to contrast Democratic Socialism with Social Democracy, but there is a significant difference.
While I am all for education, health, housing the poor, and a host of other additions to our entitlement structure, my current concern is how we are not coping with the national debt. When the debt reaches about $23 Trillion, it has been calculated that under the current GDP and tax code,
our revenues will only pay for the current set of entitlements and the interest on the debt at that time. There will be no money for anything else. We would have to borrow more money simply to run the government, and most likely at an interest rate much higher than now.
That is ruination for the nation. Were we to have sustained growth of the GDP of over 5%, it would be possible to start retiring the debt in an orderly fashion. The problem with that is our tax and spend nature, where we (congress, especially a democratically controlled one) see a surplus and immediately allocate it to goodies, and not reducing the debt. This process ultimately leads to chaos financially for the nation. I am reminded of the situation after the Vietnam war, where the notional savings from reduced military spending were reallocated to goodies before they were realized.
So all of the new goodies, such as free healthcare, free education through college, and any other nice-to-haves simply should not be afforded now, and cannot be afforded for very long, before we go under financially. That is, until our economy has sufficient continued growth to allow some changes, and we are willing to raise taxes substantially, which seems to occur mostly in a democratic era. One caveat to this is the willingness of other nations to loan us money, despite the deficit spending we have, which, as I said earlier, would probably be at significantly higher interest rates. In which case we would be digging ourselves ever deeper in the hole...