What does "abolish profit" mean?

[lamsmy]

88. Really bad slogan

Socialism is not communism. Private enterprises are still free to trade and stock markets function exactly the same as in purely capitalist economies.

This slogan was a colossally bad choice of words. If you are scaring the denizens of DU, you have a big problem. "Tax the rich" is more accurate and way more appealing to the average American.

Every nation on earth has both capitalist and socialist policies in play - even North Korea. It's just a matter of degree. Northern European countries have a very high marginal tax rate with no loop holes. The rich pay around 60-70% in Scandinavia.

But there are still rich people. Corporations and family businesses still grow, children inherit the castles of their parents, and private jets are pretty common. Strong socialist policies do not mean not profits - not even close.

When discussing this point with conservatives, it's good to remember a few things:
1. Investing in social projects like education and healthcare is more fiscally sound policy than disinvesting and hoping the free market takes up the slack. For instance, IT companies in the US cannot survive without importing talent from overseas - you simply aren't producing enough STEM candidates. Every inner city kid who drops out of high school COSTS the tax payers. If the child had solid support in the early years and a decent education, he/she is much more likely to get a job and contribute to the tax base.
2. Entrepreneurship is alive and well in socialist countries. In fact there is a much greater chance of a poor person permanently moving up the economic chain in Europe or Canada, or Australia (etc.) than in the US. Knowing your kids will be educated, your health taken care of, and you will be housed if things get tough, makes it much easier to take the leap and start a business from scratch or switch careers mid-life.
3. The US is the worlds biggest beneficiary of free trade but it has also benefited enormously from the strong social policies of Europe and China. High government spending in those countries has been crucial to maintaing strong safe communities. Thanks to the Marshall Plan, the WTO, and other international mechanisms, Europe grew from a war ravaged continent into the biggest market for American goods. Strong social policies allowed West Germany to peacefully absorb an entire country and add those new citizens to the world economy.

Socialism is all around us. It is not necessarily good or evil. But implemented wisely it can do enormous good and be the best fiscally responsible option.