All this fuss about the Democratic Socialists taking over the Democratic Party is simply a recognition of when capitalism gets out of control, when it gets un-democratic, there is a reaction in this county. It happened in the late 19thCentury with the rise of organized labor as a result of corporate greed, and it happened in the 30’s with the New Deal, with massive failures in our banking system. In both cases, a huge disparity in wealth distribution was a major concern.
Recently, Justin Wolfers, the University of Michigan economist who makes frequent TV appearances, and who makes a lot of understandable common sense of the topic, simplifies thusly: The benefits of all the economy’s activity are a pie, divided between its two elements, Capital and Labor; that is, owners (shareholders or private owners) and workers. Currently, he says, the labor part of our population, which is associated with the vast majority of citizens, is now receiving just 51% of the benefits. As a further manifestation of how things have gotten out of kilter in our particular economy, recent stats show the ratio of US CEO salaries to those of the average worker is 285:1, while those in S. Korea (19:1) and Norway (11:1) seem much more rational.
These are among the roots of the seeming inconsistency of a booming American economy that sees most of its people hurting financially. So, it shouldn’t be a surprise to anyone that, just as the Tea Party arose out of anger over financial issues and took over the Republican Party, now the pendulum has swung and it’s the establishment Democrats who are feeling the heat.
If those center and left-of-center were able to get together and looked at what Americans really expect of their lives, instead of dwelling in a land of slogans, conspiracy theories and the outlandish and impractical past statements of some of their principal adherents, they might be able to agree on a more sensible system. I’d call it Democratic Capitalism.
Recently Donna Brazile quipped on TV that if a communist has two cows, he gives both to the government. If a socialist has two cows, he keeps one and gives one to a neighbor. But a capitalist sells one and buys a bull with the proceeds. Kind of clever, but it underscores the way most people view these terms–a black and white view with no shades of grey.
Take a look at this chart, which throws Fascism into the mix. While it really isn’t totally accurate or complete (where’s Mao?), it does illustrate the fact that the elements of any given political/economic system can look more like a menu than a blue-plate special. I don’t think you could pick any country which fit neatly into just one of those columns. Vietnam is called a “communist” country, as is China. But capitalism seems to be thriving in both places. And the Scandinavian countries often cited as the “happiest” countries in the world, are generally thought of as socialist. But the socialism part only to applies to their robust social safety nets. Economically, capitalism flourishes there as well.
Most Americans can agree on any number of basic societal/economic issues, including more equal wealth distribution, universal access to healthcare, the rule of law, secure borders, money out of politics, free and fair elections, and, above all, that capitalism is far and away the best system for allocating resources to power economic growth.
But, not unbridled capitalism. So, let’s start by getting the money completely out of politics. Establish term limits. Ban politicians from owning stocks and bonds, even in trust. Aggressively police political corruption. Make public service a temporary honor, disincentivizing it as a career, and ensure that the people representing us are truly doing so, instead of lining their own pockets and those of their corporate contributors. Nobody should get rich being a public servant. Not Donald Trump. Not Nancy Pelosi. Not your local Congress person. Once we get the democratic part sorted out and can more directly participate in establishing the societal objectives and guard rails against excess and corruption, we can let the capitalistic rubber hit the road.
While we desperately need to replace our current, self-destructive Un-Democratic Oligarchy, we don’t need the impracticalities of Democratic Socialism to do so. Democratic Capitalism is a much better fit for the American Dream.
©2026, David B Bucher
SoEast 