democratic socialism seems to be a very
hot topic lately I want to make
something very clear right off the bat
for those of you who support democratic
socialism I'm very sympathetic to many
of your grievances and even your
intention I understand just as well as
you do that the system is flawed and
many things need to change the problem
is democratic socialism is gonna take us
in the wrong direction and give us more
of the same
and that's coming from somebody who's
neither a Republican or a Democrat this
is a very in-depth subject but for the
sake of this video I'm gonna focus on
three major flaws with democratic
socialism style over substance the
fallacy of the higher tax rates and the
fundamental flaw with government all
sources will be in the comment or the
description below alexandria Ocasio
Cortez has rocket to stardom as the new
Supreme Leader I mean the face of the
democratic socialist movement
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I think one of the big reasons why
democratic socialism has gotten so
popular is on the surface it sounds
great we need to make public colleges
and universities tuition-free healthcare
as a human right that every child no
matter where you are born should have
access to a college or trade school
education if they start I think that no
person should should be homeless if if
we can have public structures and in
public policy to allow for people to
have homes and food and lead a dignified
life in the United States I believe that
in a modern moral and wealthy society no
person in America should be too poor to
live nobody should be too poor to live
what does that mean and how do you
actually accomplish it that's like me
saying nobody should have to die from
gravity related causes in theory I agree
with it but how realistic is it and how
could you implement it it's important to
remember that poor is a very relative
term in 1820 94% of the world lived in
poverty and 84 percent lived in extreme
poverty 200 years later those numbers
have plummeted and study after study
shows capitalism has lifted nearly a
billion people out of poverty in the
past 20 years and if you think about it
it makes perfect sense look around at
everything that contributes to your
quality of life and your standard of
living I'd be willing to bet almost
everything is provided by a private
company in the free market versus the
government now I know what you're
thinking government provides us with
essential services like more roads
that's a video for another time but
trust me when I say that if the
government didn't have a monopoly on
things like roads private companies that
can land rocket ships vertically could
do it much more effective at a cheaper
cost do we live in a moral world that
allows for billionaires is that a moral
outcome if somebody says it's immoral to
have billionaires in our society shows
me a complete lack of economic
understanding billionaires billionaire
billionaire billionaire billionaire
Killian a zillion ass billionaires
I am not a billionaire I think one of
the things Democratic socialists don't
understand is that wealth is not a
finite amount just imagine how much more
wealth we have today versus a hundred
years ago or two hundred years ago or
five hundred years ago if a person
becomes a billionaire legitimately by
offering a product or service to the
market what people don't understand is
the wealth they create for everybody
else
dwarfs the amount of wealth that that
billionaire has themselves Steve Jobs is
a perfect example this before he passed
away he was worth about ten billion
dollars Apple's current market cap is
750 billion dollars think of how many
jobs Apple has given to people think of
how many families have been supported by
Apple how many people's lives have been
improved by what Steve Jobs and Apple
did last time I checked millionaires and
billionaires provide a lot of jobs
millionaires and billionaires at the
same time imagine if I could go back in
time to 1820 and offer 94 percent of
those people living in poverty
today's quality of life and living
standard there's just one condition they
could have this newfound quality of life
an upgraded standard of living but there
would be some people that would have
even more than them do you think they
would have accepted this deal of
upgraded living standard even if some
people had a lord lavish lifestyle than
they did of course of course of course
of course if you really cared about
people in poverty you to allow
capitalism to continue to do its job and
I am in no way saying that there aren't
problems or rooms for improvement
however the most serious issues we have
right now stem from government having
too much power when the government has
power companies and corporations will
always exploit that power to their
advantage including the government
people always say that real socialism
hasn't been tried well if that's true
capitalism hasn't really been tried the
difference is almost capitalism has
raised billions out of poverty while
almost socialism has killed and
impoverished millions the myth about the
70 percent tax rate coming from
democratic socialists like Bernie
Sanders and Alexandria Cortez is one
that needs to be debunked right away
this kind of tax rate was the norm up
until the early eighties and why is it
was this is not a new idea under
Republican President Dwight Eisenhower
90% marginal tax rate well the idea here
is that the government took in much more
tax revenue rich people didn't make as
much and poor people were helped more
because the government had much more
money it only takes five seconds to
research this to see that the truth is
much different than initial perception
the reality is while tax rates were very
high very few people actually paid that
rate back then nearly everybody filed as
a corporation and almost everything was
deductible federal tax revenues have
stayed consistent since 1946 averaging
at nineteen point five percent of GDP
regardless of the wild fluctuations of
the marginal tax rate this is known as
Hauser's law it's important to note that
even when the marginal tax rate was 92%
governament
revenue essentially stayed flat what has
chases the 50s is the rich have been
paying a higher and higher percentage of
revenue in taxes so when Alexandria
Acacio Cortez says that the rich need to
pay their fair share I'm just over here
like I don't know what the you're
talking about let's look at what
happened more recently when a country
implemented a 75% tax rate that couldn't
be avoided with loopholes and deductions
in 2012 the Socialist Party in France
slapped a 75% tax on people that make
over a million euros a year almost
instantly government revenue fell and
economic growth was hindered while 2.5
million people fled the country to go to
other places that didn't have such a
high tax rate investment capital went
elsewhere and economic growth continued
to stagnate three years later in 2015
the policy had been such a disaster that
it was repealed and the tax rate was
brought down to a normal 45 percent
level but the truth of the matter is we
have a spending problem not a revenue
problem you could take every penny from
every millionaire in billionaire in this
country and you'd have roughly true
trillion dollars or currently what the
government spent in six months in 2018
you could talk about tax the rich all
you want but it's not gonna fix the
problem I want to point out that she's a
socialist she wants senators on tax
rates those are both accurate right the
fundamental flaw with democratic
socialism is the same flaw with
government you're putting your faith and
power in an institution that has proven
to be incompetent time in time again in
oftens corrupt generally speaking the
government does not create wealth it
merely redistributes it or destroy
all organizations entities and
businesses have a natural instinct to
expand and grow the difference between a
private company and government is
private companies have to expand by
voluntary transaction while governments
can expand through coercion and force
liberals sometimes understand this
concept years ago the California
corrections officer union actually lobby
for what is known as the three-strike
rule which at the time meant getting
caught with marijuana three times in a
row could potentially mean a life
sentence now why would a union want to
lock somebody away for possession of a
plant simple its power control job
security and growth I may not like some
of these big corporations but at least I
can voluntarily do business with them
and they definitely can't throw me in a
cage for smoking a plant the issue with
democratic socialism is it's going to
end up hurting the very people it's
intended to help which are the middle
class and the poor every year the
government continues to spend more and
it continues to grow out of control via
taxes regulations and laws I'd argue one
of the main reasons the middle class and
the poor are getting squeezed has to do
with the never expanding role of
government in our lives every time the
government grows it has to be paid for
one way or another and it does that by
taking money out of the private sector
to pay the public sector where do you
think that wealth came from did it come
from government or did it come from the
private sector
the real solution here is to shrink the
size of government and bring this
country back to the principles that made
it wealthy in the first place
backwards in the PLR we the ceiling
really no matter what hey guys hope you
enjoyed the video thank you so much for
watching I'd like to give a shout out to
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talk liberty now until next time