EXAMPLE American style capitalistic program for college: If you pay (average) $20,000 annually for four years of college, that will total $80,000 + interest for student loans. The interest you would owe could easily total or exceed the $80,000 you originally borrowed, which means your degree could cost in excess of $100,000.
EXAMPLE European style social program for college: Your college classes are paid for through government taxes. When you graduate from that college and begin your career, you also start paying an extra tax for fellow citizens to attend college.
Question – You might be thinking how is that fair? If you’re no longer attending college, why would you want to help everyone else pay for their college degree?
Answer – Every working citizen pays a tax that is equivalent to say, $20 monthly. If you work for 40 years and then retire, you will have paid $9,600 into the Social college program. So you could say that your degree ends up costing only $9,600. When everyone pools their money together and the program is non-profit, the price goes down tremendously. This allows you to keep more of your hard earned cash!
Health care is another example: If your employer does not provide health insurance, you must purchase a policy independently. The cost will be thousands of dollars annually, in addition to deductible and co-pays.
In Holland, an individual will pay around $35 monthly, period. Everyone pays into the system and this helps reduce the price for everyone, so they get to keep more of their hard earned cash.
In the United States we are told and frequently reminded that anything run by the government is bad and that everything should be operated by for-profit companies. Of course, with for-profit entities the cost to the consumer is much higher because they have corporate executives who expect compensation packages of tens of millions of dollars and shareholders who expect to be paid dividends, and so on.
This (and more) pushes up the price of everything, with much more money going to the already rich and powerful, which in turn, leaves the middle class with less spending money and creates greater class separation.
This economic framework makes it much more difficult for average Joes to ”lift themselves up by their bootstraps” and raise themselves to a higher economic standing.
So next time you hear the word “socialism” and “spreading the wealth” in the same breath, understand that this is a serious misconception.
Social programs require tax money and your taxes may be higher. But as you can see everyone benefits because other costs go down and, in the long run, you get to keep more of your hard earned cash!
Democratic Socialism does NOT mean taking from the rich and giving to the poor. It works to benefit everyone so the rich can no longer take advantage of the poor and middle class.
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