LETTER: Socialism appeals when top 1% hold  33% of U.S. wealth

To Ozaukee Press:

It’s not surprising that many younger Americans favor a socialist economy over capitalism. For nearly 50 years, the wealth disparity has grown to the point where the richest 1% hold more than 30% of all U.S. wealth ($60 trillion) and the top 10% account for 70% of all consumer spending. Even President Trump had tripled his net worth to $6.5 billion since taking office.

Rather than succumb to a failed economic model, it would be preferable if Americans would embrace a society whereby a full-time job used to mean a middle-class lifestyle. That included food security, an affordable place to live and comprehensive health care, and if that job fell short of meeting those needs, a robust social safety net would compensate some of the shortfall.

Currently, we’re experiencing an economy where immense wealth receives favored treatment, while the bottom half faces an austere economy.

We can meet the basic needs of every American by broadening the tax base to raise enough revenue to fund a strong social safety net. This would include eliminating specialized credits and deductions, and repealing exclusions and exemptions, such as pass-through business income and the favored treatment of capital gains. In addition, popular deductions, such as,  mortgage interest, retirement contributions and state and local taxes would be phased out for those earning more than $500,000.     Current defense spending should also be gradually reduced to more than $500 billion annually, and let’s end this immoral roundup and incarceration of hard-working immigrants who have not committed any violent crime.

The total revenue raised and saved by these measures could generate $1.5 to $2 trillion annually and that money would ensure that every American can experience food security and fully restore cuts to Medicaid and the ACA and expand health coverage to nearly every American. Government would be able to jumpstart building the nearly 10 million affordable new homes that will help alleviate the high prices of existing home sales.

Democrats have a real opening to take control of both houses in Congress and even the White House in two years provided they are able to stick to a consistent economic message and offer specific plans that represent the greatest redistribution of wealth since FDR’s New Deal.

Greg Melcher

Port Washington