Note: Tax cuts and social spending have one outcome in common – they generate government deficit spending. These deficits are financed with government debt and these debt securities become de facto monetary equivalents. In turn, the prices of most asset classes rise in value and become more expensive for the average person. This, in turn, creates the catalyst for more social spending. The more socialism, the more expensive living becomes. Those with the assets benefit whenever the government sinks further into the red.
Despite calls to the contrary by many in the alt-financial media, socialism is alive and well. In fact, according to research polls a growing majority of Americans support social programs that would have been rejected 10-20 years ago. As long as the governments and central banks work together going forward to finance their deficit spending needs, socialism will grow in popularity. The people want it.
From government-mandated paid maternity leave to tuition-free college, the CNBC All-America Economic Survey reveals a surprising American appetite for some very progressive policies.
In a survey of 800 Americans nationwide, with a margin of error of plus or minus 3.5 percentage points, the CNBC survey finds majority support for five of six proposals that have been percolating in the national debate mostly, but not entirely, from the Democratic side. On some of the issues, the survey even found majority Republican support.
But on the issue of maternity leave, 84 percent of the public approve of a federal requirement that employers provide paid maternity leave, paced by 94 percent support from Democrats, 83 percent from Independents and 73 percent from Republicans. Increased federal funding for child care is supported by 75 percent of the public, including overwhelming support from Democrats and Independents but also majority support from Republicans.
Socialism guarantees higher deficits; People want others to pay
Talk about double-mindedness…
When it comes to paying for these proposals, Americans are not shy about supporting higher taxes on the wealthy but they balk when it comes to taxing themselves. Only 46 percent of the public supports repealing the 2017 tax cuts and just 30 percent want to eliminate all deductions, such as for home mortgages and charitable giving.
However, in what looked to be somewhat contradictory findings, Americans also lean towards more free market and less government when it comes to issues like reducing income inequality and increasing worker pay. In fact, 37 percent of the public say that increasing worker pay should be handled by the free market, compared to 11 percent who say it should be entirely the responsibility of government. Thirty-two percent say it should be only somewhat the responsibility of the government and 14 percent say mostly the government.
The bottom line; You and I are part of a small minority. Socialism is alive and well and the governments and central banks have “discovered” ways to pay for it. As long as the central banks stand ready to buy up the surplus supply of government debt, socialism will become the painless choice for a growing majority of Americans. Socialism will not collapse; the more the younger folk get left in the “net worth” dust the more they will embrace socialism. They may pretend to reject socialism, but if they believe they are getting something that someone else is paying for, they will embrace it.
My opinions on socialism do not matter. All I know is that it will grow in popularity and the central banks have developed programs to pay for it. The costs of living are now guaranteed to continue spiraling higher. So if you ask me when’s a good time to start buying income-generating assets, I will say that now is a good time. Do not fight this trend. The heathen do not understand economics and how socialism works. They are not concerned where the money comes from as long as it doesn’t come from them. Accept it and move forward. Invest accordingly.