Socialism And Utopia

Socialism: The Truth Behind the Utopia

Socialism is looked upon, and favored by many millennials and young adults in Generation Z. It is a good idea on paper, like many ideas, but when you put such ideas into the real world, they don’t turn out as good, because you have to read between the lines and dig deeper into what would make such a machine work. In Socialism, everybody is equal, everybody is living the same life, the life which the government controls. What isn’t said is that everybody is riding the poverty line, everybody is equal in terms of economy and way of living, but everybody is poor.

Man Versus the State, by Herbert Spencer, is a book claimed to be “one of the most powerful and influential arguments for limited government,

The government regulates how many hours for work, what the cost of products are, and what the pay is. The businesses don’t decided anything. This is much like slavery, with the owners being the government, and the slaves being the citizens. The government essentially owns everything dealing with the economy, they are a dictator of the country’s economy. Socialism takes away the liberty to decide how you wish to spend your money; it assumes you are not smart enough to decide what you need. With a central government owning all, or any, means of production and distribution means there can be no competition, profits, losses, market prices or even a market. However, profits, losses, and prices serve to guide scarce resources to their most highly valued means. The fact that socialism is inefficient compared to free-market capitalism can be seen as the answer to an empirical question. History has answered this question: nations such as the former USSR, Vietnam, Cuba, and North Korea are great examples; these nations were not

Socialist countries have a high tax rate. In fact, Scandinavian countries are known for having high taxes on income. “According to the OECD, Denmark (26.4 percent), Norway (19.7 percent), and Sweden (22.1 percent) all raise a high amount of tax revenue as a percent of GDP from individual income taxes and payroll taxes.” Compare this to the 15 percent of GDP raised by the United States through its individual income taxes and payroll taxes. In order to raise a lot of income tax revenue, income tax rates need to be high. Denmark’s top marginal effective income tax rate is 60.4 percent, Sweden’s is 56.4 percent, and Norway’s top marginal tax rate is 39 percent. Comparing these to the United States’ highest tax rate of 46.3 percent. In the United States, there are different tax brackets for the citizens, and the tax bracket you’re in depends on the income you have. This is different for these Scandinavian countries, who have a flat tax rate for most citizens, no matter the income they make. The top marginal tax rate of 60 percent in Denmark applies to all income over 1.2 times the average income. For Americans, this means that all income over $60,000 (1.2 times the average income of about $50,000 in the United States) would be taxed at 60 percent. In the United States, the top marginal tax rate of 46.3 percent kicks in at 8.5 times the average U.S. income, around $400,000. Few taxpayers in the United States