We continue to hear politicians tout buzzwords like equality and equity, as a way to lift people out of poverty. Blame the rich to help the poor, and you’ll continue to get re-elected. Yet, as we’ve seen throughout history countries that have prioritized this socialistic point of view have crushed the middle class, creating large chasms between the rich and poor.
The word socialism is thrown around flippantly in today’s society, yet two proposals, one from the State of California and another from the Federal Government, show that we are on the slippery slope moving from a meritocracy toward a socialist society.
As I mentioned a few weeks ago, California utility companies are in the process of rolling out a new fixed-rate bill proposal. The basics of the proposal are: the more income you make, the more you pay for the flat rate. Then there will be reduced usage charges, subsidized for all households by the flat rate.
Here’s the breakdown of pricing for San Diegans.
- Household income $28,000 – $69,000 would pay $34/month.
- Household income from $69,000 – $180,000 would pay $73/month.
- Household income above $180,000 would pay $128/month.
All these fees are tacked on before using a single kilowatt hour, meaning median-income San Diegans will pay $876 a year in electricity rates, regardless of whether they use any electricity. Also, San Diegans will still get charged these monthly rates if they installed residential solar.
These fixed rate charges have nothing to do with actual energy use (or savings). They are based on household income and everyone will pay them. This will discourage energy savings and increase electricity use in a time where supply is not meeting demand, and people’s health and safety are at risk through summer blackouts.
Two days later, the Federal Government announced a new federal rule forcing homeowners that have earned good credit and can (many times barely) afford a home to pay higher mortgage rates and fees to subsidize people with riskier credit ratings who are also in the market to buy houses.
Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who make down payments of 15% to 20% will get socked with the most significant fees.
The theory behind both of these proposals is “redistributing wealth.” It may sound great in theory, but in reality, it punishes those trying to get ahead. These proposals are not in line with the American spirit. The American Dream is based on the idea that anyone can work hard and make a better life for themselves. The introduction of socialist policies such as these takes that away.
We already have income tax and, by design, the more people earn the more they pay in taxes. The same goes for property taxes- the more expensive the home the higher the property taxes. If this is a priority to the State of California, they should better use the billions of tax dollars already collected to reduce the cost of energy, for example.
It begs the question, where will this stop? Will grocery prices be based on your tax return? Will the price of gas depend on how much you make?
None of this should be a surprise, as a poll last year showed fifty-one percent of young Americans said they had a favorable view of socialism. Handouts and entitlement are the way many politicians are elected and reelected, and the hard work and bootstrap ethic that created America is no longer their expectation.
A concerted effort is happening in this country to crush hardworking and middle-class Americans. Whether it’s charging people more for their electricity based on their income or making homeowners pay more if they have better credit, hardworking Americans are being punished. The new utility and mortgage proposals are the latest examples. These proposals incentivize mediocrity and conformity by punishing those who work hard to get ahead. These socialist policies are destroying the American spirit of opportunity and working hard. It’s time for all Americans to wake up and reject this nonsense.
San Diego County District 5 Supervisor Jim Desmond