Skip to content
Deacon Keith Fournier Hi reader, it seems you use Catholic Online a lot; that's great! It's a little awkward to ask, but we need your help. If you have already donated, we sincerely thank you. We're not salespeople, but we depend on donations averaging $14.76 and fewer than 1% of readers give. If you donate just $5.00, the price of your coffee, Catholic Online School could keep thriving. Thank you. Help Now >

Why Democratic Socialism is coming to America, whether you like it or not, and what you can do about it (but won't)

Free World Class Education
FREE Catholic Classes
Owners keep leaving their workers behind, so there's going to be hell to pay.

America is in more trouble than people realize and here's why. The middle class is becoming poor, and as the ranks of the poor grow, our national politics will change.

Presidential hopeful Bernie Sanders is a self-described democratic socialist. His movement is popular with millennials who are coming of age.

Presidential hopeful Bernie Sanders is a self-described democratic socialist. His movement is popular with millennials who are coming of age.

LOS ANGELES, CA (California Network) - The United States is changing and many people are having a hard time understanding why. Why is it, for example, that nearly 80 percent of American youth think socialism is a good idea for the country? Why are people working more than ever, yet falling behind? How is it that Wall Street has recovered, but Main Street continues to struggle?

The answers to these questions are economic and they are fairly simple. So too are the time-tested predictions of what will happen next, if we do not change course.

Beginning in the late 1970s, wages uncoupled from productivity. From the end of World War II until the late 70s, workers shared in productivity gains. As productivity rose, so too did their wages. Sometime just before 1980 dawned, owners began keeping a larger share of their profits. Today, the inequality between the incomes of owners versus workers borders on scandalous.

Workers in every category are making what they made just a decade ago, and less if you factor in their share of overall GDP. The rich are realizing all the gains and passing none to the workers.

Workers in every category are making what they made just a decade ago, and less if you factor in their share of overall GDP. The rich are realizing all the gains and passing none to the workers.


These statistics don't just apply to minimum wage workers either. They apply to virtually all workers, including the best educated ones. According to federal statistics, even the most educated workers are earning the same as they were nearly ten years ago. In plain language, even the most educated workers haven't been given a raise, relative to inflation, in ten years.

Worker wages continue to decline, to the profit of employers, but the situation has gone too far for too long, and a correction is coming.

Worker wages continue to decline, to the profit of employers, but the situation has gone too far for too long, and a correction is coming.


In fact, workers are being paid less all the time, as a share of GDP.

And while workers are earning less, prices continue to rise.

Income inequality has become so bad that Main Street was left without the extra income to participate in the Wall Street recovery, hence Wall Street has realized significant gains, but Main Street still struggles.

The result of these influences is a shrinking middle class. Last year, the middle class dropped below 50 percent of the national population, making the poor the largest class. As the ranks of the poor grow, so too will their political power.

The poor have one universal political desire, that is, to eat the rich. The rich have one desire too, that is to get richer by eating the poor. This is why rule by middle class is so essential to a free nation. Middle class voters tend to be conservative, and they resist dangerous, sudden, radical change. But with the decline of the middle class and the rise of the poor, the future becomes obvious.

Unless you are in the top 10 percent of earners, your income has declined.

Unless you are in the top 10 percent of earners, your income has declined.


The millennial generation has been blasted as "lazy" and "wanting free stuff." They are almost universally disaffected and disillusioned. The reason for this isn't their fault. We raised a generation of youth on the promise that if they got good grades and went to college, they would graduate with a degree that would unlock good paying jobs. Jobs good enough to wipe out their student loan debt.

Instead, the opposite has come true. Thanks to changes in the economy and runaway costs of tuition, a failure of congress to pass reform and debt relief, students are graduating with tens of thousands in debt which is bearing high interest and can't be wiped out by a bankruptcy.

This debt puts other milestones out of reach. A new car, a first house, even paying for a wedding becomes prohibitive. As a result, people buy used cars, they rent which dives up the cost of renting often above a mortgage payment, and they live together without ever getting married.

And it's not like people aren't working. Compared to 1979, both men and women work, often two jobs apiece. It is literally true that many households have four separate sources of labor-based income, and yet they are still struggling.

Just before 1980, wages uncoupled from productivity. The best way to return to prosperity is to reattach compensation to productivity.

Just before 1980, wages uncoupled from productivity. The best way to return to prosperity is to reattach compensation to productivity.


Millennials, more than any other segment of the population, feel cheated out of the American dream. They have to choose between paying bills and taking a well-deserved needed vacation. They have to choose between keeping up with debt payments and maternity leave. They go to work sick, they forgo doctor visits, even with insurance; an hour at the doctor's office can mean an hour of lost wages.

For hope, they look to the social democracies of Scandinavia and socialist candidates like Bernie Sanders. In those countries, governments have found a way to provide high wages, universal health care, paid leave and vacations, as well as higher education. Their citizens are happier and better off by all indexes. And America's millennials have enough education to understand the data. They aren't afraid of the socialist boogeyman because they understand that socialism is a spectrum of political philosophy. Socialism is not always atheistic, communistic, and oppressive. Socialism can include free-market capitalism and a great degree of individual freedom.

So our future is one of change. In the near-term, things may remain quite the same, but not for long. Democratic socialism is all but inevitable in the United States. Owners will be forced, quite mercilessly, to pay most of these costs. The old canards about layoffs and how owners won't be able to afford to stay in business will not find sympathetic ears. Capitalist bigwigs to small business owners can save their tears. The composition of Congress will shift to the left. Conservatism will change with today's moderate Democrats becoming tomorrow's Republicans. The youth are fed up and if the old capitalists can't adapt, that's all the better. New entrepreneurs with a better sense of social responsibility will replace them, just as they have in Scandinavia.

The only way to stave off this inevitable change will be to give every worker a raise, right now. And that raise will need to be linked to overall worker productivity as it was decades ago. If workers feel their bosses' success is also their own, they will have less appetite to eat their bosses.

However, Wall Street and the bosses have never had it so good. While we may all agree the gravy train is about to run off a cliff, nobody dares to hit the brakes, and that's why we're doomed.

---

The California Network is the Next Wave in delivery of information and entertainment on pop culture, social trends, lifestyle, entertainment, news, politics and economics. We are hyper-focused on one audience, YOU, the connected generation. JOIN US AS WE REDEFINE AND REVOLUTIONIZE THE EVER-CHANGING MEDIA LANDSCAPE.


Comments


More Business & Economics

Making a Difference: Catholic social teaching's message to the national budget

Image of All people have a right to participate in the economic life of society.

Thirty plus years ago, the U.S. Catholic bishops wrote a very challenging pastoral letter titled "Economic Justice for All." In their ... continue reading


Recession looms, what should we do? Watch

Image of Knowing a recession is coming will allow us to prepare.

For the past 60 years, the Federal Reserve's yield curve has predicted recessions. Now, as the yield curve shows signs of inverting again, ... continue reading



Disaster looming? Market flashes warning, worst April since Great Depression Watch

Image of The stock market is in decline. Is recession looming?

Markets have suffered their worst April start since the Great Depression, led by Amazon which lost 5.21 percent of its value in one day ... continue reading


Stock market tumbles, is a recession on the way? Watch

Image of The stock market took a tumble yesterday but may recover today. Nobody is certain of what's next.

Global markets have dropped for the past few days, and just this morning have rebounded. It remains to be seen if the recovery is ... continue reading


Is free money a Christian solution to economic problems? Watch

Image of Is there a Christian solution to our economic problems?

The world is richer and more productive than ever before in history. Yet, income inequality is growing the poverty is on the rise. Middle ... continue reading


Deacon Keith Fournier Hi readers, it seems you use Catholic Online a lot; that's great! It's a little awkward to ask, but we need your help. If you have already donated, we sincerely thank you. We're not salespeople, but we depend on donations averaging $14.76 and fewer than 1% of readers give. If you donate just $5.00, the price of your coffee, Catholic Online School could keep thriving. Thank you. Help Now >

Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Information
Learn about Catholic world

Catholic Online
Inform - Inspire - Ignite

Catholic Online Saints
Your saints explained

Catholic Online Prayers
Prayers for every need

Catholic Online Bible
Complete bible online

Catholic Online News
Your news Catholic eye

Daily Reading
Today's bible reading

Lent / Easter
Death & resurrection of Jesus

Advent / Christmas
Birth of Jesus

Rest of Catholic Online
All Catholic world we offer

Services
Products and services we offer

Catholic Online Shopping
Catholic medals, gifts & books

Advertise on Catholic Online
Your ads on catholic.org

Catholic Online Email
Email with Catholic feel

Education
Learn the Catholic way

Catholic Online School
Free Catholic education for all

Student Classes
K-12 & Adult Education Classes

Support Free Education
Tax deductible support Free education

Socials
Connect with us online

Catholic Online on Facebook
Catholic social network

Catholic Online on Twitter
Catholic Tweets

Catholic Online on YouTube
Enjoy our videos

Catholic Online on Instagram
Shared Catholic moments

Catholic Online on Pinterest
Catholic ideas style inspiration

Catholic Online Logo

Copyright 2019 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2019 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.

Catholic Online is a Project of Your Catholic Voice Foundation, a Not-for-Profit Corporation. Your Catholic Voice Foundation has been granted a recognition of tax exemption under Section 501(c)(3) of the Internal Revenue Code. Federal Tax Identification Number: 81-0596847. Your gift is tax-deductible as allowed by law.