Editor,

The form of socialism “lite” defined by Matthew Johnson (“A new kind of socialism” in the Aug. 30 edition of the Daily Journal) doesn’t change the fact that socialist-leaning Europe has lower wages and much higher unemployment than the capitalist United States. Over the past five years, gross domestic product in the United States grew at 2.4% while the European Union grew at 1.6%. Sweden only grew at 0.56% a year under socialism since 1981, and its 62% personal income tax rate has caused it to start reverting back to capitalism.

Capitalism flourishes in the United States because our Constitution protects the rights of individuals and limits the power of government. In contrast, socialism allows the power of government to grow unchecked which leads to corrupt and authoritarian governments (i.e. Cuba, Venezuela, etc.).

Capitalism has done far more to raise living standards in the world than any other economic system. While socialists decry the rich, the richest 1% in the United States pay 37% of all taxes collected. The richest 50% pay 97% of all taxes. The rich also donate over $400 billion a year to charity, which is close to half of what government spends on welfare. Charitable giving in EU countries is 80% lower.

Rather than “walking us over a cliff,” capitalism and entrepreneurial freedom provide the best hope for developing new technologies to save the planet. Margaret Thatcher nailed it when she said, “The trouble with socialism is that eventually, you run out of other peoples’ money.”

Ed Kahl

Woodside

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(4) comments

JME

The United States has had the world’s largest economy for about 140 years, and it roughly accounts for 22% of global GDP. However, in recent times China has overtaken the US by at least one measure of total economic strength, which is GDP based on purchasing power parity (PPP)


Dirk van Ulden

JME - you may recall that the only reason China has become a major player is that Bill Clinton allowed them to become a member of the WTO. This was predicated on China becoming more democratic and being less aggressive in military might. Of course, now we all know that Clinton and his gang were going to profit handsomely from this agreement and we are being ripped off daily as China has violated just about every rule that the WTO specifies. We finally have a president who has the guts to stop this madness and put China in its place. Currency manipulation has played a major part in what you are addressing in terms of PPP. We are suckers no more.


JME

Blame Harry Truman vs. General MacArthur and President Eisenhower too?



You didn't mention Nixon's famous trip to China. why not?



I thought manipulation of the economy was only for socialist governments. .


Christopher Conway

and that is why we need to support President Trumps trade war with China, a half billion dollars in trade deficits annually than another half billion on stolen technology and property and you are talking about some serious money leaving our country every year.


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