5. It reduces the threat of economic cycles.
During the Great Recession years of 2007-2009, many families around the world struggled to make ends meet. Jobs were lost. People were forced to find underemployment opportunities just to pay their bills. Since then, wages have exploded for the upper income tier, growing as much as 230%. For the bottom tier of income earners, some individuals haven’t seen a pay raise since 2007. Democratic Socialism reduces the threat of these economic cycles, making it easier for households to take care of their basic needs while still having income access to pursue opportunities.
6. It creates an economy that is more efficient.
Within the structures of Democratic Socialism, there is no longer a push to sell unneeded goods or services to consumers. That means less money is spent on marketing, allowing for more to be spent on production, innovation, or wage growth. People still receive what they need for comfort and daily living without the constant brand messaging demanding to be heard.
7. It offers more room for value judgments.
Products can be offered in a society based on Democratic Socialism that are based on value judgments instead of profit judgments. Even if production creates a loss, the government can subsidize production to make needed items available to everyone. In a structure based on capitalism, goods and services are based on profits first and value second.
List of the Cons of Democratic Socialism
1. It cedes more control over basic needs to the government.
Even though officials may still be elected, Democratic Socialism is still on the socialism spectrum. That means the government is given more control over how lives can be lived. There may be added benefits to social access, but that requires money, which means higher tax rates. Then there are fewer options available because the government is in control of the competition. At the end of the day, in its extreme form, the government would be telling everyone what they can do, where they can work, and what they can purchase.
2. It could cause a net financial loss instead of gains for families.
Even Bernie Sanders admits that higher taxes are required in such a system, with a 25% tax rate proposed for the median income earner in the United States under his plan. In the Sanders plan, the top tax rate would still be under 40%. That means a greater tax burden, relative to available income, is given to the middle- and low-income earners instead of the higher income earners.