The theory of economics is based upon multiple waves, the largest being the Kondratiev wave. It is the proposed idea that the economy fluctuates based upon technological advances. Kondratiev waves typically last between forty to sixty years, during which there are four stages our economy goes through. First, there is prosperity, followed by recession, depression, and eventual improvement. According to the cycle, we are currently on the tail end of a recession and about to move into a depression. Why do these constant patterns keep appearing? As a country we should be able to maintain a stable economy, one that will not suffer extreme depressions as in the past. The United States current, capitalistic economy creates unnecessary hardships and needless anger.
Our economy is about to hit another depression, one that could pass the Great Depression as the hardest hitting event in modern times. We as a country can change this fate. The government needs to step in and radically alter our current state. A complete overhaul is needed. I propose for a plan similar to the successful economy post World War Two Britain obtained. Their economy completely changed for the better. Even though taxes were increased, Britain saw rapid economic growth over the next fifteen years. Their industries were nationalized and their welfare state was created, along with national healthcare, pensions, and social security. This socially economic reform could be what saves America from another large and destructive depression. The larger taxes are needed, especially on the rich. Many economists have stated just that, in which the rich need to be taxed more than the poor. Adam Smith, famously stated in The Wealth of Nations that, “It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.” Even those in the time of America’s founding realized this important method of gaining revenue. Warren Buffett has around fifty billion dollars, so much that he cannot possibly spend it all well in his lifetime. That money is better used to spread the welfare of the nation. A redistribution of wealth will conducively fix our nation’s economy.
Luckily for us and the survival of our country, a candidate in the upcoming election is advocating for an economic revival. One candidate will implement the economic policies needed to overhaul our country and make America great again. I am talking of course of Bernie Sanders. He plans to follow the path Britain took after the disaster of World War Two and steadily increase our GDP. A more nationalized economic system is vital to improving America’s standing in the world. Reducing the budget, especially the overly large defense fund, will get us the required resources to jumpstart the program. Sanders is the perfect man for the job, having experienced all the cycles of the Kondratiev wave. He has first-hand knowledge of all four stages. Sanders knows of the uncertainty the nation faces during the trying recession and depression stages of the cycle. With him as our nation’s leader, our gross income will remain a steady increase over multiple decades, rather than the constant spikes of depression and economic wellness.
Our current capitalistic economy may seem excellent on paper, and compared to authoritative administrations, is actually good, but compared to the other “top” economies, ours is statistically weaker. America’s free market capitalism promotes competition but weakens the foundation of the nation. Without a nationalized central economy, America will constantly be behind other first-world nation. Canada and Britain both have universal health care and advanced benefits for citizens while the “Greatest Country in the World” does not. All that would occur to achieve this welfare state is an initial tax increase. While tax brackets across the board will increase, most of the taxes will focus on the rich, those people who can afford to give up more of their income for the greater good. Britain achieved post World War Two success using this economic approach. They experienced a steady GDP increase with no major fluctuations, like the ones we currently face. As Britain’s economy reached a stable high, taxes were cut to their original state. The economy stayed afloat during this tax cut, as it was successfully self-supported. America’s current economy is in bad shape. We can fix this through following Britain’s postwar strategy by making a welfare state. The man who can get this done is Bernie Sanders. He will be able to fix our economy to the point of constant success. -Zach