The United States of America is a socialist government. What does this mean?
It means that Communal Money is stripped from the Private Citizens (Household Sector) through taxes and policy initiative by the Government and then redirected towards projects, goals, classes, of its own choosing.
The major means of policy initiative to control the creation and flow of money in a socialist government is the CENTRAL BANK. The second most important means is Taxation.
Do we have a central Bank? Yes we do. Therefor we are socialist.
Do we have Taxation? Yes we do. Therefor we are socialist.
Whom does the central bank Benefit?
In other words to whom does the Central Bank direct the flow of money - and at whose expense?
The Central Bank directs the flow of money through the Member Banks that OWN the Central Bank: Chase, Bank Of NY, Goldman Sachs, ETC ETC. These banks then distribute created money to preferred clients (like Ted Cruz and Hillary Clinton) and Corporations closest to the Banks.
This is Socialism that benefits the Banking and Corporate Sector - at the expense of the Household Sector.
How is the Household sector taxed in this system?
The Household Sector receives money only at very high interest rates compared to the low rates charged by Banks to their preferred and corporate clients. Moreover, Savers of the Household Sector are essentially taxed through Negative Real Rates or Negative Rates on their savings that subsidize the banks and corporations.
Second, other policy initiatives that foster stagnant wages in relation to productivity also tax the Household sector while subsidizing the Corporate and Banking sectors. The United States is rife with many such policy initiatives (preferred treatment for stock options, capital gains, earned interest, repatriations from offshore accounts etc etc) which is why wages have been lagging productivity for over 40 years.
True, on the Taxation Side we have a mildly Progressive Rate the subsidizes the Household Sector. But endemic policy fostered Loopholes largely destroy that subsidy.
This is how American Socialism benefits the Banking and Corporate Sectors: and their powerful private clients like Ted Cruz an Hillary Clinton.
Any politician who receives FUNDING in the form of Speaking Fees - LOW INTEREST LOANS - or Direct Contributions. is SIMPLY AN EMPLOYEE OF THE BIG BANKS. And as such any such candidate is a SOCIALIST.
LIKE TED CRUZ. And Hillary Clinton.