At the heart of Communist ideology is the idea that wealth should be distributed equally among all people. In theory, the redistribution of wealth would reduce large gaps between the rich and the poor. The Soviets used the state-run command economy to reduce the economic gap. However, this method failed to provide a stable economy and, along with huge military spending, was the major cause of the collapse of the Soviet Union. But in capitalist economies the gap between rich and poor still exists, and in some places the gap is widening. Should capitalist countries try to narrow the income gap? Why or why not? What kinds of policies do you think would work? What are some of the effects of poverty? Can you see evidence of the income gap in your community?
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capitalism can cause – inequality, market failure, damage to the environment, short-termism, excess materialism and boom and bust economic cycles.
What should be done?
1. Level the playing field by supporting small businesses - part of the Biden/Harris agenda for 2020.
2. Progressive system of taxation should be implemented
3. Avoiding privatization of governmental institutions. For example Trump's team suggests privatizing the USPS to fuel in more cash to rich people.
4. Government FUNDING!!! (ref. taxation - point 2)
5. Increase wages proportional to time and strengthen such provisions.
6. Consolidate extreme conc. of wealth.
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