Building Capitalism for the People

Part 3 of the “Why We Vote” series

Five Economic Problems We Can Solve

To make capitalism work for us, we must use Representational Democracy to deal with five core problems:

1. Large corporations control Congress through large campaign donations and lobbyists. Solution: Nominate candidates who will work for us in the primaries of both parties. Our Voters Resource page will help you check the candidates on your ballot.
2. Large corporations control markets through monopolies and oligopolies. Solution: Stronger antitrust laws with vigorous enforcement.
3. Fractional reserve banking causes inflation when the money supply grows faster than economic output. Solutions: Deficit reduction and vigilant financial regulation.
4. Recessions are common because financial sector regulation is weak. Solution: Vigilant financial regulation.
5. Debt, the net federal deficit (12/31/2024) was $27.5 trillion, close to 97% of GDP.^[1] Solution: Reduce deficits.

Long term Solutions:

Multi Party Election Reform and campaign finance reform.
 

The Key

We must prove to politicians that working up for us is a better way to win elections than using campaign contributions from the donor class. This is why we need your help to spread the word about the Voters Army. We must grow large enough to be imitated.

Debt: Who Pays - We Pay

The interest on public debt moves wealth from us to the financial sector, wealthy bondholders, and foreign countries. Foreign governments and their citizens hold 30% of our debt.

Debt is also a drag on our economy. An increase in federal debt can spur inflation and raise rates on Treasury bonds, pushing up rates for mortgages, business loans, and consumer credit.

To avoid drowning in debt, we must keep interest rates low and reduce the debt to GDP ratio. To keep the rates low, we need a strong, stable economy. We need to avoid larger deficits and a nasty trade war. It is a bad look, and a poor strategy, for the nation that holds the world’s reserve currency to start a big chaotic trade war. We will suffer substantial inflation if the dollar loses its status as the primary currency of international trade. Calm markets are good for us.

The Results

We suffer from the wealth inequality of a third-world dictatorship. The inefficiency is worse; the real economic pie is shrinking for most Americans.

Distibution of Family Wealth - Source: Urban Institute calculations from the Survey of Consumer Finances 1983 – 2022.

Not Working for Us

Many members of the upper class want to lower the deficit by cutting healthcare and social security. We disagree. The tax cuts for the rich and large corporations have not delivered the promised prosperity. Time to reduce the deficit by canceling their cuts.

Recently, the US House of Representatives voted to cut healthcare for workers and poor people so they could keep taxes low for the rich and corporations. 214 members voted for the measure; they should be primaried.

Republicans: Revive America by nominating one social conservative in every district who will stand for working Americans.

Democrats: Opposing the “One Big Beautiful Bill” (OBBB) was easy. More arduous tasks await when you return to power. To return to power, you must nominate one social liberal in every district who will stand for working Americans.

How to Stop Big Money

Our political system is drowning in money. If you are an elected officeholder in the habit of accepting donor class donations, you can be redeemed. All you need to do is tell your donors that you have changed your mind on key issues. Do not offer refunds! If enough politicians stiff enough donors, the donors will stop donating. Problem solved.

Can We Slow Down Big Money?

Closing the floodgates may require a constitutional amendment, but we should be able to slow it down and improve transparency through legislation. Politicians must live with campaign funding, expenditure, and transparency rules. We want to hear their ideas for reform.

Fix the Economy

The productivity of our labor has risen through technology, education, and the use of capital, yet our living standards have been in decline for 50 years. The two major parties only recently noticed. For this reason, we no longer trust the political system.

We need to increase taxes on the rich and large corporations to reduce the deficit. No excuses; we should primary officeholders who refuse.

We need vigilant financial regulation and the enforcement of strong antitrust laws. Bad things happen when we let the money changers do as they please.

To avoid vigilant financial regulation and strong antitrust law, the financial sector has deployed an army of lobbyists and a navy of SuperPACs. We must find candidates who can resist temptation.

Our only hope is to elect people who will regulate the banks, enforce anti-trust law, and make damn sure the wealthy and large corporations pay their fair share in taxes. We must nominate strong candidates in the primary elections of both parties.

No short cuts. We need to vote in the federal, state and local primaries, and the general elections.