- "Avoid investing in those countries with a high level of socialist or government regulation of business. Business growth depends on a strong free-enterprise system." - John Templeton
- "Successful preservation of capital must overcome the handicaps of socialistic governments, supposedly to help the masses." - Gerald Loeb
Today we hear much about "Democratic Socialism." What is it? How does it work? Is it a more equitable way to govern our country? Who makes the decisions? is it based on freedom and self-determination? Does it provide basic human services as a entitled right? Should the government take over Healthcare and Pharmacies so that every american may be covered?
Lots of questions and a multitude of media coverage and opinions on these topics. The following is some of my personal view on this. I do not expect everyone to agree with me and I am not running for any political office.
Let me start with the first questions. What is the description or definition of Democratic Socialism and how does it work? : According to Wikipedia. "Democratic socialism is defined as having a socialist economy in which the means of production are socially and collectively owned or controlled, alongside a democratic political system of government. Democratic socialism can support either revolutionary or reformist politics as a means to establish socialism." It is a belief that the State or Government needs to intercede on behalf of the citizens to address the social inequalities, and suppress the economic inequalities, of capitalism. An example would be the government takeover of healthcare or "healthcare/medicare for all". People in favor of this type of administration of the healthcare and medicine systems point to the Governments success with the Social Security System, and the Medicare Systems, for those recipients. Social Security was enacted to supplement the aging individuals personal retirement savings to provide an income benefit, with medicare added to provide for catastrophic medical needs. Everyone is to pay into the systems and everyone is to benefit from the systems. There are some abuses, and some exceptions, but overall the System works. Over the years, for many, Social Security has become their primary source of retirement income and Medicare covers virtually every citizen over 65 (Except some Government workers and other exceptions). It is a supplemental social program, never was it a takeover of an industry.
If the government takes over the Healthcare insurance industry and everyone is on the same medical "plan" there would be between 870,000 and 1.25 million workers that would be put out of work within the Healthcare insurance industry. In place of Healthcare insurance/coverage being provided by "for-profit" and/or "Not-for-Profit" corporations, who insure 85% of Americans, They would come under the control of government agencies. Most of the Healthcare providers are Not-for-profit organizations who would then be providing and billing their services through those government agencies. I think it is a formula for disaster. Medical care and choices would become government agency mandated. The decisions and directives could become political and arbitrary.
I do not know what the solution is to assist in the medical care of the 15% of Americans who need to be insured and get medical coverage. I believe there are a lot of very intelligent people in the healthcare industries that can come up with solutions that are beneficial to us, and profitable for them. The Government can and should continue to provide regulatory guidance. I do not believe in a government takeover of the healthcare industry and a government agency that will make decisions for us, based on its premise of what is best for us, and make it mandatory for all individuals to be under that system.
If you have any questions or comments please contact us. We will try to address issues that are current and based on your needs.
The information and opinions presented are for general information only and do not necessarily reflect those of Waddell & Reed. 10/19