One Answer

  1. Its main drawback is that it tries to imitate “socialism” within the framework of a capitalist economy, which leads to a simple and inevitable “cycle”, which can be conceptualized as follows::

    1. The people are dissatisfied with neoliberal policies, reduced benefits and social benefits, unequal access to education and medicine-and choose the Social Democrats.

    2. Social Democrats come to power and increase taxes on businesses, increase social programs, reduce inequality, and at first everyone is happy except businessmen.

    3. Gradually, it turns out that raising taxes on businesses leads to the fact that in conditions when more than 50% of the economy is in the private sector, it ceases to develop, because there is no incentive, anyway, what is above a certain level is taken by the state and redistributed to everyone through taxes. In addition, there is an increase in unemployment – because businesses have stopped developing jobs in the absence of profit, and the population is growing.

    4. After a certain period of time, it turns out that the government's budget is being reduced, because there are not enough taxes, there is a moderate commodity deficit, against which deflation begins, and the economy is stagnating. The discontented population chooses liberals for power.

    5. Liberals come in, cut social programs and spending, increase inequality, revive business, lower taxes – the economy begins to develop and grow, but inequality also grows. The population is gradually becoming dissatisfied – and hence point 1.

    As they say, ” on a coke mochalo-start over.” That's why the Social Democrats can't hold power anywhere for a long time, and where they do, they try to expand the public sector to get around the problem, but it doesn't help, because unemployment is still increasing. The solution is either a full planned economy and normal socialism, or the suppression of workers and fascism, or democracy and an endless vicious circle.

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