Faced with the onslaught of fascism and nationalism, finding a well fertilized situation in current economic trends, the question arises as to what we should do. Increasing the minimum wage in such a situation seems a bit too little, too late. Increasing the minimum wage would hold the same effect as to throwing a bucket of water onto a home engulfed in flames. Sadly, we do need a revolution to fix the numerous problems in our system. We need an entirely new way of thinking through our economy. We know the problems rest with greedy CEOs increasing their pay while keeping worker wages stagnate. We know the problem is that if the workers threaten to strike or unionize in order to obtain better wages, the jobs will just ship overseas to near-slavery conditions.
Increasing taxes on the wealthy – while necessary – doesn’t promise that we’ll distribute the wages. After all, while increasing taxes in the 1950s worked well the world wasn’t nearly as globalized as it is now. Globalization almost takes away the impact of increasing taxes on the wealthy as jobs can still be sent overseas in order to increase profits, a way to make up for the increase in taxes. Increasing the minimum wage is just ineffective. Capping CEO pay also makes little sense as any cap would be quite arbitrary. Plus, one might be the CEO of a company, but also be the only employee of that company (which can happen if one is a consultant to other companies). So can we really cap that individual’s income? Such an argument makes little sense.
There’s the other issue that while some forms of Democratic-Socialism have shown to lower income inequality, it also creates a high tax burden and does tend to make workers less productive. For instance, Financial Times reported back in 2014 that productivity in the Nordic nations had dropped and that cracks were beginning to show in its welfare state. Part of the problem is that people have such a huge safety net in Nordic nations that there’s little incentive to work harder. It’s why the Nordic nations have some of the highest income inequality in Europe, but also have the strongest middle class – the government essentially props up the middle class with little effort required from businesses. Such a model, while admirable and a good temporary solution, is not sustainable and will eventually need to be revamped.
So what do we do? How do we create a system that averts the problems of nationalism and fascism? How do we improve our economy to the point that people see no need for a revolution or to radicalize? I can see two options. These options presented are by no means comprehensive and are barely an introduction to the two potential solutions. Likewise, these solutions are not mutually exclusive – both could be put in place and I’d recommend both be put in place. They are way outside of the box, but that’s what we need. We need a system meant for the modern era and we have to stop pointing to past solutions for modern problems.