Presidential hopeful, Bernie Sanders, has some strange ideas when it comes to the economy and economic growth. In this article, I will highlight a few.
Recently, Sean Hannity did a piece on Bernie Sanders titled: SOCIALISM USA! Bernie Says ‘Economic Growth’ Doesn’t ‘Impact the Majority of People’.
You can check that article out here (there is a video you can watch that shows Bernie making a few wild statements).
Here are a couple things Bernie said that I found disturbing.
First, Bernie says that most people are not impacted by economic growth.
Not only is this a ridiculous statement, it’s not even close to being true.
The fact is that most people work in America; most people have to fund their own retirement; and most people won’t have enough for retirement without good economic growth.
To suggest that “most people are not impacted by economic growth” is wildly untrue.
When I say good economic growth, I’m referring to what the stock market has done historically.
Historically, the 30 year return of the S&P 500 has been about 12 percent; that’s a good return (it’s way better than you’re going to get from a CD or bond investment).
The S&P 500 is a good index to measure the overall stock market, or overall economy. If the S&P 500 is doing well, then the economy is also doing well – it’s that simple.
The stock market is one way to measure economic growth.
The reason economic growth is important is because most people’s retirement will rely on how well the stock market is doing – their 401(k)s and IRAs.
To say that most people aren’t impacted by this is to say that most people don’t care about their retirement. It literally makes no sense to anyone who is saving for retirement.
Second, Bernie says that nobody working 40 hours a week should be living in poverty.
I agree! But then again, who doesn’t agree with that?
Everybody does, which is why it doesn’t happen!
Yes . . . you heard me right: it doesn’t happen.
There are policies in place to preclude it from happening.
1. Federal minimum wage
Contrary to what Bernie Sanders says, the minimum wage law in America keeps people out of poverty.
The poverty line in America for a single person (right now) is about $12,500 a year. That is to say – if you make less than $12,500 a year, you are in poverty.
But . . .
Bernie says that nobody working 40 hours a week should be in poverty – that’s correct! Nobody is! That’s because the federal minimum wage precludes it from happening.
Right now, the federal minimum wage is $7.25 an hour. If you work 40 hours a week making $7.25 an hour, you make over $15,000 a year (roughly $2,500 above the poverty line).
Just where is this happening in America, Bernie? It’s not.
Maybe you can sell these talking points to millennials who want to hear it, but it’s simply not true.
By the way, Bernie is proud of the fact that he has millions of donors contributing to his campaign at an average of $18 per person. Bernie is selling lies to millennials and extorting money from their hard-earned allowances and these people are eatin’ it up. Wake up!
Now, someone might say, “Well, what if you have kids, or what if you are taking care of a family of four on one income?”
Even then, you still won’t be in poverty because of other tax credits.
2. Earned Income Tax Credit
Have you ever known a person to work at McDonald’s making minimum wage and get close to $10k back on their tax return? I have!
It’s called the Earned Income Tax Credit (EITC).
It’s designed to incentivize low income families to still work for an income, rather than live on welfare and not work.
What generally happens on the EITC is that working families who don’t make a lot of money end up getting all their tax money back (so they pay zero in taxes), and they also get additional money back for simply working (EITC) and trying to support others on that income.
The EITC is phased out the more you make – but once again, it is designed to bring you out of the poverty, not keep you in poverty. It rewards people who work because they will make more money that way – more than if they didn’t work. It’s a tax credit for earning income.
Sure – if you make too much money you won’t need it – but then again, you won’t be in poverty either.
The EITC is for people who don’t make enough. If that’s the case, the EITC will make it worth your while to keep working, effectively bringing you out of poverty as a result.
For the person or family that doesn’t qualify for this credit because they make too much, there are other credits you get for having kids. It’s called the Child Tax Credit, and it helps working families by lowering the amount of taxes they owe.
3. Child Tax Credit
The Child Tax Credit is designed to incentivize people to have children – you will get a tax benefit from it.
I hear people all the time tell me that they don’t want to have children because they can’t afford it – that’s bogus! At least in America it is.
People like AOC say that people are scared to have kids because of climate change – that’s bogus, too!
These are just lame excuses.
I’m convinced the real reason why people don’t want to have kids is because they’re selfish. It’s for personal reasons, not financial ones.
The tax breaks make it financially appealing to actually have kids. And they should! Kids are important – they’re the hope of the future – our government should do what it can to support that.
Well, those are just a few of the reasons why Bernie is wrong on these issues.
Here’s what Bernie wants
Bernie Sanders runs a campaign on ideas that sound great, but they’re not true.
He gets people fired up about things that aren’t even happening, like the 40 hour a week poverty spiel.
What Bernie really wants to do is change our capitalist free-market economy into a government controlled socialist one.
He wants to force companies to pay higher wages; he wants free healthcare; free college; free everything!
While all of that sounds great, how is he going to accomplish that?
What would he do to the current booming economy?
He already said that economic growth doesn’t affect the majority of people. Bernie doesn’t care about a strong economy; he only cares about a government controlled economy, but that’s called socialism.
There are 100 million dead corpses to show why socialism is a bad idea, but people don’t want to hear that. They like socialism because it sounds good, or they read some ideas on paper. Those ideas may sound good – they may look good – but in reality they are not good. All you have to do is look at the nations that have operated using those idea – they don’t work!
Capitalism has always been the best economic option. No it isn’t perfect, but what idea is? The fact is that capitalism has always caused the greatest prosperity to a nation and its citizens – something socialism has never done!
Bernie is wrong about socialism; he’s wrong about economic growth; and he’s wrong about poverty. He’s just completely wrong.
The implications of his ideas are not only wrong, they’re dangerous.
They sound good, but they don’t work – they never have.
What do you think will happen when companies are forced to pay higher wages and are taxed into oblivion?
- Loss of benefits
- High unemployment
- Stifled economic growth
The list goes on and on. His talking points sound great, but in reality they do more harm than good. Socialism has a wonderful track record of failure – look at Venezuela. Look at all the nations that have tried these “great” ideas that have killed and hurt millions of people – Russia, China, Germany, North Korea.
Bernie Sanders can go around tickling the ears of millennials, but the truth is he’s running on false promises. Not to mention, some of his talking points are straight up lies.
When you offer a bunch of free stuff – funded by crazy taxation – you are going to kill the economy; kill jobs; and kill any opportunity for people to actually flourish in the free market. That is a recipe for disaster – it’s why capitalism has always been the better option.