There are a number of values that contribute to the foundation of American society. Christian ideas helped build the country, democratic beliefs progressed it and modern developments allow it to continue to thrive. However, there is one main aspect that drives American society: money. In the richest country in the world, our capitalist system promotes constant competition that supports economic growth, but leaves many behind. So despite the country as a whole thriving, we at The Tower consider how one’s gain being another’s loss calls for solutions for the heightening inequality in our country.
A key factor contributing to our economy’s success is the consistent growth of our gross domestic product (GDP). For example, since 1978, our GDP has increased a whopping 1,142 percent according to the World Bank. As impressive as this is, it is essential to take into account the change in the distribution of wealth. Over the same time span, a study by the Economic Policy Institute has found that the pay of CEOs has increased 1,085 percent, while the typical worker’s income has only increased by 24 percent. Where wealth is directed is just as important as its pure existence. As our economy flourishes, in most cases, only the top of our society feels the benefits. For hundreds of years, Americans have subscribed to the notion that the United States will reward hard work with opportunity. Now, it is nearly impossible to work from the ground up economically. We at The Tower see these American ideals fading away as few climb while millions make unlivable wages.
Large corporations support the economy because of their opportunity for mass production, low-cost expansion and the billions of dollars that they contribute to the GDP. However, this comes at the expense of consumers, small business owners and the middle class and below. The Federal Reserve Bank of Philadelphia examined how the increased market power of big businesses has decreased competition and given them pricing power, allowing for further exploitation of consumers. Small businesses are also victimized by this, as corporations have the resources to beat the prices of smaller businesses to either absorb them and/or effectively run them out of business, and then raise prices again once their competition is reduced. This takes away jobs, livelihoods and severely damages local economies for cities. Even in Grosse Pointe, ownership of small businesses is not diverse, with many of them being owned by the same groups. While this ensures our city’s economic stability, it takes away opportunities from others to grow businesses here.
As we’ve established, capitalism does not come without its flaws. When potential solutions to those flaws have been presented, the American people have been resistant to them, labeling them in a way that scares people. As Zohran Mamdani, New York State Assemblyman and Democratic nominee for New York City mayor, has gained national attention, so has the fear of his socialist policies from moderate left and right politicians and voters. While his policies to redistribute wealth differ from what we have seen from our major politicians, those types of policies would be far from the first we have seen in America. Social security, Medicare and Medicaid are among the United States’ most respected policies by both parties; they are also some of our most socialist policies. Instead of fearing change and using buzzwords to prevent it, we at The Tower advocate for listening to plausible solutions to undeniable problems.
Critics of socialism argue that it has and will never work as an economic system in the United States and that capitalism is a proven, successful system. We at The Tower do not claim that capitalism isn’t necessarily the best economic system for our country, but call for others to recognize its flaws and be open to solutions that help everyone gain from America’s growth. A country that only allows a minority to thrive is not a thriving country, and we have a moral obligation to support the hard work of those who do not reap the benefits of it.
