Many Millenials and Gen Z-ers are demanding guaranteed work for everyone, including higher job wages and health benefits. It sounds great, but this plea for social reform disguised as socialism is not practical for a highly entrepreneurial generation.
How Socialism Affects the Free Market
California plans to pass a $15/hour minimum wage increase by 2022, and some businesses are telling employees to head East. Why, you may ask? Increasing the minimum wage was meant to help those struggling in California’s economy to have a more stable income in an already-inflated market, but no one really thought about the consequences this would have on the employment rates. Employment Policies Institute, a non-profit think-tank, studied the trends of unemployment and increased minimum wages and found that a 10% increase in wages resulted in a 5% employment decrease in food and retail corporations.
A 10% increase in wages resulted in a 5% employment decrease in food and retail corporations.
Securing higher wages for every worker does not take into account other serious consequences. The issue with raising wages is that it results in the government having control of the price of goods and services rendered in the public sector. Case in point: Venezuelan president Hugo Chavez’s socialistic policies caused hyper-inflation and spiked the price of consumer goods because the oil reserves were no longer holding up the economy. This forced the Venezuelan people to pay higher prices for goods. Despite having a set income and “promises” of economic security, these poor people took the brunt of greed and a poor use of resources.
Entrepreneurship: The Answer to Socialism
Socialists have failed to see that social democracy is just another way for one enterprise (the government) to have control over the wages of everyone. And as Lenin and Stalin proved with Communistic dictatorships, when one man is in power over millions it often goes to his head and can be tragic - as was the case of 100 million lives taken during the 20th century.
The answer to socializing democracy is not to promise free stuff to everyone, but to promote self-potential and encourage entrepreneurship. Entrepreneurship has been on the rise among 20-35 year olds, and a recent survey found that 66% of this demographic had plans to start their own business. And with options such as crowdfunding and Gofundme, Millenials and Gen-zers have access to generous people who also want to contribute to the economic reform they so desperately want.
The answer to socializing democracy is not to promise free stuff to everyone, but to promote self-potential and encourage entrepreneurship.
With socialism, your $3 gallon of milk can easily become $7 a gallon when funds are allocated by one person in charge, but the beauty of entrepreneurship is that if you don’t like the milk, you can open your own business and sell a better milk (or non-dairy option) if you want.
The Freedom To Be Better
This country was founded on the premise of independence; firstly, independence from the control of the British government, and secondly, on the backs of people who fought for a brighter (and free) future, so that we can pursue the best version of ourselves.
In this country, it's important to have a society that rewards hard work-- instead of suppressing it. It's vital to understand that no one in this country is paid minimum wage for skilled work and that socialism essentially kills creativity.
Socialism essentially kills creativity.
Talented, hard workers, with education and experience (a.k.a. entrepreneurs), don't have to worry about a minimum wage because when there is competition for talent and a drive to better yourself, life becomes more robust and meaningful. If there is no incentive to compete, and everyone is paid the same wages, life becomes mundane. And this is exactly what socialism promotes.
The idea that anyone should be able to make a good living by opening up their own business and getting paid for their hard work is what makes America unique. The answer is not handing over the reins to the government, but to put the key in the hands of anyone who wishes to pursue free enterprise, because that is how you build an economy that works for everyone.