My mom worked harder than anyone I know. She wanted a good life for us. It was a hard life—I remember the Christmas she had to pawn our gifts to pay the light bill—but she made it special for us.

Now I have two kids of my own, and I want them to have every opportunity that other children have.

The landscape is tough out there. Like many Americans, I can’t afford childcare, and finding work that accommodates my need to care for my young children is hard. With inflation, the little income I have doesn’t go nearly as far as it used to.

I’m grateful to have assistance with food, housing, and healthcare through our social safety net programs.

Food programs like SNAP (also known as “food stamps”) and WIC (that’s the Special Supplemental Nutrition Program for Women, Infants, and Children) have literally saved our lives when we’ve been hungry. I wouldn’t be able to feed my children without them. And thanks to Medicaid, we have healthcare.

But I’m sick with worry about the cuts to SNAP and Medicaid that are barreling my way. The so-called “Big Beautiful Bill” slashed these programs last year so lawmakers could slash taxes for corporations and the wealthy, and some of the worst cuts will take place after this year’s midterms.

The uncertainty is causing so much stress. The first change I noticed is they cut off my eyeglasses subsidy. What’s next? Meanwhile, the cost of living keeps going up and up, outpacing wage gains for me and countless others. Our SNAP benefits cover much less than they did a year ago, and that’s before potential cuts take effect.

I feel like I’m waiting for a bomb to drop on me and my kids, and I’m not the only one.

“The average minimum-wage worker must work nearly 116 hours per week, nearly three full-time jobs, to afford a two-bedroom rental home,” the National Low Income Housing Coalition reports. That’s the truth—my own sister works three jobs and still has to live with roommates.

Lawmakers are telling us we can’t have healthcare now unless we work, even in areas with low wages. Yet those making the laws enjoy free government-socialized healthcare and high wages.

They say SNAP benefits can’t be used for a cake or soda for my child’s birthday. Yet no one would stop the wealthy from using their $1 trillion in tax cuts under the “Big Beautiful Bill” to buy their kid a yacht.

Poor and low-income people deserve to be happy too. We deserve healthcare, food, housing, and even a child’s small birthday party. It feels like we’re being punished for working regular jobs—and like lawmakers want to keep us down so we don’t fight back against this inequality.

But we are fighting back.

I’ve started attending our local town hall meetings and hearing the stories of injustice and poverty. I started volunteering with a non-profit organization in my community. I help get goods to people in need, even as I am also in need, because that’s what we do. Poor and low-income people help each other out, because we understand what it’s like to see our kids go without while we work our fingers to the bone.

But we can’t do it alone. We need to demand from lawmakers that instead of cutting our healthcare, food, and housing benefits, we need to expand them to meet the great need in this country. We need a livable wage so we can afford market rent and rising food prices.

And we need to hold lawmakers who make working people suffer to enrich the already wealthy accountable.

A familiar spectre is haunting the nation—that of communism. Or so one might conclude from the Republican Party’s increasingly frantic rhetoric.

Following a string of wins by the Democratic Socialists of America (DSA) in congressional primaries from New York to Colorado to Michigan, even reaching as far as Florida, the GOP is dusting off an old refrain.

“Communism is on the ballot this November,” warned House Majority Leader Steve Scalise (R-La.) at a press conference. President Donald Trump has gone further still, calling communism “the biggest threat to our nation there is, maybe since our founding.”

At first glance, this reads like little more than election-year theatrics. The candidates provoking such alarm are, on the whole, hardly the revolutionaries their critics imagine.

But, try as they might, no amount of fearmongering, surveillance, or censorship will dampen the working person’s dream for a more dignified life, one where their labor is compensated fairly, their dollar stretches further, and their children inherit a secure future.

Many of the policies promoted by today’s democratic socialists fall comfortably within the lineage of the New Deal: strengthening labor protections, expanding access to healthcare, greater investment in public infrastructure, and so on.

That House Speaker Mike Johnson (R-La.) would liken their ascendance to “a nightmare… a trail to certain death,” ought to strike any person of sound mind as patently absurd.

Yet dismissing such a frenzied reaction as mere campaign-season hyperbole risks overlooking what it actually reveals: staggering insecurity.

If the political establishment had any real confidence in their track record, they wouldn’t need to manufacture so much anxiety around their opposition.

It is precisely because they can feel their grip on the public’s trust slipping that they have resorted to reviving the McCarthyist witch hunts of yesteryear—an effort that extends well beyond incendiary speeches.

Last year, President Trump issued National Security Presidential Memorandum 7 (NSPM-7), directing federal agencies to expand policing of social movements linked to “anti-Americanism, anti-capitalism, and anti-Christianity,” among other ideological strains, ostensibly to “identify and prevent potential violent activity.”

NSPM-7 has, in turn, become the legal backbone for an aggressive crackdown on dissent, seen in the Department of Homeland Security (DHS) issuing “warning notices” to those who have criticized the actions of Immigration and Customs Enforcement (ICE), whether that be through social media posts or email correspondence.

Recent reporting even uncovered a sweeping probe, dubbed “Operation Puppet Master” by DHS, into a number of left-wing groups in Minnesota after the killings of Renée Good and Alex Pretti by ICE and Border Patrol agents, respectively, earlier this year.

The probe included, among other things, the subpoenaing of financial records from various labor unions and nonprofits, as well as “spying operations conducted by undercover agents who posed as activists and surveilled community activities.”

It is little wonder that such egregious actions have since been compared to COINTELPRO, J Edgar Hoover’s illegal pet project designed to infiltrate, surveil, and discredit civil rights and anti-war activists who caught the ire of the federal government.

This, paired with the White House creating its own blacklist of journalists and influencers on its official “Media Offenders” page, many of whom are cited for such severe transgressions as “Left-Wing Lunacy,” suggests that the hysterical talking points GOP leadership have taken to heart are the vehicle for a broader crusade of political repression.

Such heavy-handed surveillance is undoubtedly born out of a deep-seated panic among those in power. This latest Red Scare is, at its core, a reaction to the working-class rightfully demanding its fair share of the economic pie.

The rise of the DSA, and of the left-wing ideas it propagates, owes much to the fact that its members speak plainly about the financial woes of the everyday person.

Take, for instance, New York City Mayor Zohran Mamdani, who has striven to take an honest accounting of the financial hardship faced by New Yorkers, and in turn offer tangible remedies like free childcare and a rent freeze.

In contrast, Trump administration officials are desperate to pull the wool over the eyes of the people, with Kevin Hassett, director of the National Economic Council, recently claiming that the economy “looks amazing,” despite nearly 80% of voters feeling otherwise.

In fact, public confidence in capitalism broadly has fallen to 54%, according to Gallup polling released last year, the lowest level since the organization began tracking the question. At the same time, socialism commands comparatively steady support, especially among Democratic voters, roughly two-thirds of whom view it favorably.

The generational divide is even more striking. A survey conducted by YouGov and the Cato Institute found that 62% of Americans under 30 hold a favorable view of socialism, while 34% say the same of communism. Of course, each of these labels mean different things to different respondents, but the overarching trend is difficult to ignore.

For many Americans, especially those on the younger side, capitalism is synonymous with constraint, and it’s not hard to see why.

While billionaires’ assets have surged to preposterous heights, the cascading inflationary shocks of war have steadily eroded workers’ purchasing power.

Cornerstones of the American Dream have been priced out of reach for working families, with 62% of Americans now viewing homeownership as unrealistic.

Meanwhile, more than 40% of American households have persistently struggled to cover the cost of basic necessities on their current income.

Yet, rather than confronting the economic frustrations driving millions of Americans to question the status quo, the Trump administration has chosen to paint a target on the backs of those who offer the public a meaningful alternative.

But, try as they might, no amount of fearmongering, surveillance, or censorship will dampen the working person’s dream for a more dignified life, one where their labor is compensated fairly, their dollar stretches further, and their children inherit a secure future.

And it is for this reason that yet another Red Scare is an altogether futile, albeit dangerous, distraction meant to blind us to the real struggle of our time: the fight against a rigged economy.

If those in power must conjure ghosts to terrify the people, it is surely because their earthly defenses are failing.

This Labor Day, workers across the country are sending a clear message: They want a greater voice on the job. A near-record 71% of Americans approve of unions, and surveys show over 50 million nonunion workers would join a union if they could.

At a time when many are struggling to afford basic necessities, it’s easy to understand why. Through unions and collective bargaining, workers have more power to win higher wages, better benefits, safer working conditions, and a fairer share of the wealth they create. Unions help build a strong middle class, reduce inequality, narrow racial economic disparities, and boost participation in our democracy.

Yet only 1 in 10 US workers are in a union today—a sharp decline from the more than 1 in 3 workers who belonged to a union in the 1950s. That drop did not happen because workers stopped wanting or needing unions. It happened due to relentless attacks on unions and collective bargaining, and lawmakers’ failure to fix the broken labor laws that have allowed those attacks to succeed.

The consequences have been enormous. As union power has declined, workers have seen less of the gains from the economic growth they have helped create. Since 1979, productivity (how much average value workers produce in an hour of work) has grown 2.8 times as much as pay for typical workers.

This Labor Day, let’s recommit to putting more power in the hands of working people.

New Economic Policy Institute research makes clear just how much working people stand to gain by rebuilding union power to 1950s’ levels.

Tripling union membership would raise the pay of the median worker by more than $7,700 a year, or nearly $270,000 over a 35-year career. That’s enough to more than cover the cost of sending two children to a four-year public university, for example. Crucially, both union and nonunion workers would see these gains because stronger unions raise standards across the labor market.

Scaled across the workforce, tripling union membership would shift an estimated $1.2 trillion to the pockets of working people every year. This is enough to reverse roughly one-third of the increase in inequality since 1979.

Stronger unions are also good for businesses and the broader economy. When workers earn more, they have more money to spend in their communities, strengthening consumer demand. Businesses would benefit from lower worker turnover, higher productivity, and workers who have a greater stake in the success of their workplaces.

Tripling union membership won’t be easy, but it’s far from a nostalgic pipe dream. It will take continued nationwide organizing and decisive policy action that makes it easier for workers to unionize. Federal lawmakers can start by passing legislation that expands collective bargaining rights, closes loopholes in existing law that allows employers to suppress worker organizing, and holds employers accountable when they violate workers’ labor rights. Further, state lawmakers should provide all public-sector workers with collective bargaining rights and repeal so-called right-to-work laws that weaken workers’ ability to organize and bargain collectively.

This Labor Day, let’s recommit to putting more power in the hands of working people. That means giving more workers the freedom to organize. And it means setting an ambitious goal worthy of the moment: tripling union membership and building an economy that works for working people.

Last March, I wrote an essay providing evidence of the inherent exploitation and undemocratic constructs in our economic model burdening working people.

This essay compliments that work and will show a fundamental reason why our economic model is structurally limited by attempts to reform it.

History

Our economic model is plagued with a history of periodic recessions and depressions.

That history is recorded by the National Bureau of Economic Research (NBER). Recessions and depressions are clinically presented as normal components of the “business cycle.” The NBER does not report the chronic instability and destruction of communities and working people’s lives by the “business cycle.”

Political democracy demands economic democracy. We have statutes, laws, regulations, and rules to protect the common good. Why not apply the same principles to the relations of production?

Many economists, psychologists, and journalists have attempted to rationalize the chronic crisis in our economic model. These fanciful assertions are thoroughly inadequate. As Leo Huberman chronicled in Man’s Worldly Goods, some experts actually attributed the chronic crises to radiation from the sun or the path of the planet Venus.

Despite rapid advances in technology and financial instruments, chronic crises remain inherent in our economic model.

Competition is a significant component that contributes to these crises despite the stifling dominance by a few giant corporations in most industries. That structure contains one essential component which plagues all businesses.

It is the tendency of the profit rate to fall.

Profit Rate Basis

The tendency of the profit rate to fall is the basis of why our economic model cannot be meaningfully reformed.

The owner of a business must convert the expenditures that initiate and maintain the business into a profit. Profits are what remains after a business pays all of its costs.

Simply, the profit rate shows how many cents of profits are retained from every dollar earned. It is more important than aggregate profits because it measures efficiency of a company in comparison with other businesses.

A decline in the profit rate forces businesses to close doors and decimate the lives of their employees across states and communities.

Business Basics

The following is a simplified explanation of why profit rates tend to fall:

The process begins by establishing a business. The owner must allocate resources for primary expenditures (CapEx) to acquire space, a plant, machinery, tools, hardware, software, technological advances, and raw materials. This includes legal registrations, licenses, permits, and financial services.

The business owner must then add another cost which are secondary expenditures.

Secondary expenditures (OpEx) consist of wages or salaries paid to the employees who do the mental or physical work with their labor power. This creates profits for the owner including extra profits. Extra profits are what remains for the owner once wages or salaries are paid to the employees.

It is imperative that the owner continually spend more resources in primary expenditures for the business. This is due to competition with other business owners.

Primary Expenditures Increase

For the owner, the cost of primary expenditures usually increases as costs for goods and services increase. These increases can be the result of monetary policy, growth of the economy (GDP), corporate price gouging, misplaced tariffs, or a scarcity of certain goods.

Some products may even see a temporary drop in prices due to technological advances.

However, the supply of goods and services that comprise primary expenditures invariably rises to the dismay of business owners.

Cost of living calculations also present data that strongly supports the assertion that primary expenditures for owners will never decrease in our economic model.

Primary expenditures are required to increase the amount of the product or service created by the employees.

The owner might consider borrowing funds from a financial institution to pay for primary expenditures. This can be problematic because financial institutions may decline to lend the money or advance at a glacial pace to finalize a loan.

The reason why the owner must continually increase spending on primary expenditures is directly related to the profit rate.

Profit Rate

The profit rate is obtained by dividing the total primary and secondary expenditures by the extra profit. (Multiplying by 100 converts a decimal into a percentage).

Example: Suppose the employees created $100 worth of total profit and are paid $40 in wages. That means the extra profit is $60.

Add the primary expenditures to the secondary expenditures and divide by the extra profit. In this example, the profit rate is 60%.

Now to show the tendency of the profit rate to fall, increase the primary expenditure to $60. Suppose there was a sale on tools at Home Depot and the owner purchased $10 worth of tools by transferring funds from the secondary expenditures to the primary expenditures.

The profit rate is now 55%. This is a significant drop despite the profit amount remaining the same. The owner increased the primary expenditures by transferring funds from the secondary expenditures.

The owner’s increased spending on primary expenditures in the form of new tools or machines may maintain the extra profits. They may even increase the production of each employee. The product or service may then be sold as less expensive. This is wonderful for the owner, but the crisis remains driven by competition.

Temporary Remedy

Other business owners are captured in this business model. Competition from other businesses drives the accumulation of primary expenditures and a decrease of secondary expenditures. This decrease results in cuts to employees’ wages, salaries, or job losses. A falling rate of profit means outside investment is less likely to occur signaling a crisis for the owner.

The owner must either increase primary expenditures to increase profit rates to compete with other businesses or increase secondary expenditures to allow employees to maintain themselves and their families.

The owner cannot do both. It is an inherent contradiction.

The remedy for the owner is to freeze or offer insufficient wages or salaries in order to maintain extra profits for the business. Without a militant union to fight with the employees, owners will deny employees’ requests for fair compensation and benefits.

The tendency of a profit rate to fall leads to the eventual closing of the business or the business moving to a location without employee rights, union rights, or environmental regulations.

Real Remedy

Thus, our business model results in chronic exploitation, deprivation, and immiseration that cannot be eliminated by reform. Working people's lives and their families are severely damaged, often forever.

The organization, production, and distribution of goods and services must be transformed into a democratic model.

One version of this model can be seen in the Mondragon Corporation in Spain. It is a highly successful conglomerate created in 1956 by a Roman Catholic priest. It is based on democratic principles that are agreed on by the employees.

Economist Richard Wolff wrote that the important questions of what and how we produce are fundamental to the economy of any country. “Where” to produce as also a question within the organization of an economy. The employees who create the profits must have a voice in the production process. A democratic construct can vary according to the model selected but must begin at the ground level.

Transition to a Democratic Economic Model

There are several methods that might serve as a guide to how such a transition may be realized in our economic model:

New companies may be based on the principles of worker cooperatives. Also, when a company fails, it must first offer the employees an option to purchase it. Lastly, owners who are retiring must offer the employees the first opportunity to purchase the business.

A transition to a democratic economic model must begin by political parties actually representing working peoples’ interests. Many progressives assert that democratic socialists must win elections as the way to dominate governments at local, state, and federal levels. They assert that democratic socialism may be realized by means of evolution, not necessarily revolution.

If progressive critics are able to dominate the government, it could pave the way for a transition to a democratic socialist model with American characteristics. Since our history is replete with democratic goals and objectives; a transition would be less problematic.

Political democracy demands economic democracy. We have statutes, laws, regulations, and rules to protect the common good. Why not apply the same principles to the relations of production?

Implementing a democratic model will be met with an avalanche of ruthless, corporate lies to deceive and frighten working people.

Progressives have historical lessons to learn from the failures of countries that attempted a form of socialism to replace the miserable economic conditions inherent and inevitable in our economic model.

There are many forms of socialism that can be realized.

The former USSR is a petri dish of such failures. Government must work to organize economic production democratically from the ground up, not from the top down that doomed the Soviet model to largely failure.

The government under democratic socialist control will transition to a new economic model that will facilitate the positive development of various components of our culture. The voice of working people will make the economic decisions rather than a handful of spiritually vapid, wealthy oligarchs. These oligarchs ignore Christian, Jewish, Islamic and Buddhist literature that advocates for various forms of democratic socialism.

Polls from The Wall Street Journal, CNN, Gallup, and Fox News demonstrate that Americans are increasingly discontented with our economic model.

Working people can and must do better for themselves and their families. Recognizing the limits of economic reform is a beginning.