Hysterical rubbish is exploding around the candidacy of Bernie Sanders in the US presidential election. It’s led off here today by an apoplectic Greg Sheridan:
Could Bernie Sanders possibly be president? He’s 78, a self-declared socialist who wants a revolution in US politics, a left-winger who wants to abolish private health insurance, make tertiary education free and forgive all student debt, who wants to raise taxes, who damns all fossil fuels in the crusade against climate change.
He recently had a heart attack and has never been a member of the Democratic Party. He went to the Soviet Union for his honeymoon and extolled the Soviet system’s strengths. Sanders is the American Jeremy Corbyn. A Sanders presidency would be disastrous, geo-strategically and in every other way.
Could he, nonetheless, become president? Probably not, but most people (myself included) thought Donald Trump could not become president.
The US needs higher taxes, better health care, climate change reform and forgiven student debt! All of these items will fight the class war hole in the heart of the US economy.
That’s the thing about Sanders. He a genuine class warrior. In a time of massive wealth imbalances, that is precidely what is called for, not the useful idiots of the PC left that have no idea what real resistence looks like.
To be clear, I am no lefty. I’m a classic liberal. But I recognise that without a genuine left to push against the excesses of liberalism it goes wrong. Capital overruns labour in the political economy power balance and everybody but a very few billionaires suffer for it as middle and working classes are hollowed out.
The end result is what we have today:
- massive demand shortage;
- massive oversupply and deflation;
- chronic low wages and inflation;
- debt stagnation as nobody get inflated upwards.
Sanders’s platform – from student debt forgiveness through to protecting workers form migrant competition – will all help address this.
Bernie Sanders is also a much better geopolitcal option for Australia. He is a China hawk, just like Trump, and will use tariffs in the same way. But he will be much more multilateral in his approach and will restore faith in the rules based order.
Sanders is also socially liberal so he is one of the few candidates globally that can bridge the divide between the traditional class warriors of the left and the pansy poltiics of the social Marxists.
Economically, Sanders represents a major shift from policy supporting markets towards policy supporting the economy. That may, or may not, help inflate markets given it is much more inflationary. But it will most definintely support the economy and living standards, especially of workers.
In short, for investors it will present a whole range of new opportunities not some doomsday scenario. A Sanders US is definitely an investment I would consider in terms of a major lift to domestic demand.
Perhaps most importantly, Bernie Sanders is the only Democrat capable of beating Donald Trump. He can win back the worker base that Trump stole from the pansy left cultural Marxists. He is an outsider and can tap into the same exasperated spirit that elected Trump.