Remember the summer GOP national convention when socialism was the hot topic?
“Democrats have chosen to go down the road to socialism," said Republican National Committee Chair Ronna McDaniel. “If we let them, they will turn our country into a socialist utopia," railed South Caroline Sen. Tim Scott. "Their vision for America is socialism,” said Former U.N . Ambassador Nikki Haley. “And we know that socialism has failed everywhere."
President Donald Trump wrapped up the socialism charges in his closing speech saying, "This election will decide whether we save the American dream or whether we allow a socialist agenda to demolish our cherished destiny.”
How ironic that Trump is presiding over a great new plunge into economic socialism that subverts free market capitalism.
“Where free markets and the magic of the invisible hand were always the fundamental pride and strongest weapons of the United States in the fight against communism, America now appears to have abandoned its core principles and is leading the charge toward financial socialism,” read an analysis in the Japan Times. “The role of government in America’s economy is surging and the bigger it gets, the lower the credibility of free market capitalism gets around the globe.”
Former Republican Sen. Judd Gregg told The Hill that Trump telling America companies to stop doing business in China “is a startling blunt exercise in socialism.” He added that the “explosion in the size of deficit spending now and for the foreseeable future” under Trump “can only be labeled for what it is: a form of socialist fiscal policy.”
A report in Reuters described the CARES Act as “an example of contemporary socialism.” It noted that “income redistribution is at the very heart of socialism” and said the CARES Act “passed by Congress and signed by Trump provided $2.2 trillion of that.”
The Denver Post described Trump’s farm bailouts as a “socialist endeavor.” Going further the Post said of the farm bailouts plus other efforts to influence free markets, e.g., the coal industry, “You would be hard-pressed to find better recent examples of the U.S. government trying to exert influence, if not outright control, over the means of production, both domestically and abroad.”
But the most pervasive socialist move may be the Federal Reserve Bank nationalization of government and corporate bond markets in response to Trump’s demand to keep interest rates low.
“’Nationalisation’ of bond markets helps calm nerves,” reported the Financial Times. “The Fed and other central banks effectively ‘nationalized’ the market for government and corporate bonds, strategists at Bank of America said in a note to clients in mid-July, helping lead to ‘irrationally’ high stock prices," reported Axios.com. “Free market enterprise no longer exists,” Scott Minerd, chief investment officer of Guggenheim Partners, told Axios. "The Fed by essence of what it's doing has taken control of the market."
The American Conservative publication last year warned of America’s drift “to the silly socialism of the 21st (century).” Now that drift has become a plunge, a major shift its Republican instigators choose to ignore.
“Woe to you, teachers of the law and Pharisees, you hypocrites” – Matthew 23:13 et al.
» BILL CRAWFORD is a syndicated columnist from Jackson.