Saturday, September 5, 2020

To avoid revolutions the Optimal Socialism/Capitalism ratio should be around 2/3.

 Science measures, as a scientist I define S/C as a share of consumption made by persons or society. 

USA has Socialism/Capitalism around 3/7, Sweden 1/1, Germany 2/3, USSR had 3/1, Russia has 1/4, China in 1970 had 10/1, now China has 1/1, Japan 2/3, Israel 1/1. 

These are my arbitrary estimates because I do not see a well established index. 

S/C of USA may be estimated by the tax rate plus property tax and a part of insurance spending. Socialism part pays school, police, roads, insurances, ecology, and a part of defense. 

My advice to prevent socialist revolution is to move to socialism and to prevent capitalist revolution is to move capitalism. To prevent the minor danger of socialism in USA  we have to accept some socialism reforms. 

To prevent a danger of capitalist revolution, which had happened around 1990, the USSR had to move to a reasonable S/C ratio.

To prevent a significant danger of a socialist revolution in Russia we have to introduce a big tax on inheritance, 0 in Russia and around 50% in USA and most of the world. Oligarchs should be taxed in some other ways. 

The USA have a reasonable S/C ratio, but a tuning will be useful.