Economic progressivism
Encyclopedia
Economic progressivism is the name given to the economic views of social democrats
and progressives
. These views are often rooted in a strong sense of social justice
. At its most basic, economic progressivism supports a mixed economy
an economy that features both a significant public sector
and a strong private
one.
Specific policies that fall under the category of economic socialism include: progressive tax
es and income redistribution aimed at reducing inequalities of wealth, a comprehensive package of public services
, universal health care
, public education
, social security
, minimum wage
laws, anti-trust laws
, legislation protecting workers' rights and the rights of trade union
s, and a welfare state
. Economic progressivism is based on the idea of free and fair markets. In particular, progressives believe that current markets are unfair because they have large corporation and the wealthy. Most human characteristics (e.g., personality, IQ, physical traits and abilities) follow a normal distribution which suggests that a fair market should create a normal distribution of wealth. In most countries, income distribution among individuals and corporations is highly skewed toward the wealthy. Another example of this phenomenon are social mobility tables. In a fair market, a parent's socioeconomic status should not be a strong indicator of the child's success. However, most experts have noted an astonishing level of prediction based on parents socioeconomic status. Economic progressives believe that fair markets must allow upward mobility to far greater degree than is present in even the U.S. which has the most fluid social mobility tables. Progressives believe in taxes based on use of government services. Progressive taxes, tax wealthy people more because they use government services more. For example, if you own more land then you make greater use of government services (e.g., street cleaning, surveyors, public utilities, tax services etc. ...). Progressives believe in using economic innovation that history or science has demonstrated works best. For example, many progressive support universal health care
because countries with universal health care have higher life-expectancies and pay less than for-profit health care. In contrast, social democrats attempt to even the playing field for groups that have less upward social mobility than the general population. Progressive economics tends to focus on creating fairness for all which they believe will create upward social mobility for segments of the population. For example, social democrats tend to pass laws against racism in the workplace to create upward mobility for minorities. In contrast, progressives would be more likely to pass laws that limit arbitrary decision making/bullying by employers to eliminate unfairness in the workforce. In both cases, the idea is based on the principle of free(Everyone gets to participate) and fair(rules are used to ensure fair competition ) markets are more efficient. In contrast, libertarians emphasize the free in "free and fair markets" and define free differently. They define it has free of government involvement/regulation.
The economic theory that underpins most of the policies listed above is Keynesian economics
. However, many organizations that promote economic progressivism can be characterized as anti-capitalist and include principles and policies based on Marxism, Libertarian Socialism, and other leftwing schools of socio-economic thought. The Transformative Studies Institute
is an example of a leftwing US educational think tank that is based on the principles of economic progressivism.
Social democracy
Social democracy is a political ideology of the center-left on the political spectrum. Social democracy is officially a form of evolutionary reformist socialism. It supports class collaboration as the course to achieve socialism...
and progressives
Progressivism
Progressivism is an umbrella term for a political ideology advocating or favoring social, political, and economic reform or changes. Progressivism is often viewed by some conservatives, constitutionalists, and libertarians to be in opposition to conservative or reactionary ideologies.The...
. These views are often rooted in a strong sense of social justice
Social justice
Social justice generally refers to the idea of creating a society or institution that is based on the principles of equality and solidarity, that understands and values human rights, and that recognizes the dignity of every human being. The term and modern concept of "social justice" was coined by...
. At its most basic, economic progressivism supports a mixed economy
Mixed economy
Mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies. Most mixed economies can be described as market economies with strong regulatory oversight, in addition to having a variety...
an economy that features both a significant public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
and a strong private
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
one.
Specific policies that fall under the category of economic socialism include: progressive tax
Progressive tax
A progressive tax is a tax by which the tax rate increases as the taxable base amount increases. "Progressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from low to high, where the average tax rate is less than the marginal tax rate...
es and income redistribution aimed at reducing inequalities of wealth, a comprehensive package of public services
Public services
Public services is a term usually used to mean services provided by government to its citizens, either directly or by financing private provision of services. The term is associated with a social consensus that certain services should be available to all, regardless of income...
, universal health care
Universal health care
Universal health care is a term referring to organized health care systems built around the principle of universal coverage for all members of society, combining mechanisms for health financing and service provision.-History:...
, public education
Public education
State schools, also known in the United States and Canada as public schools,In much of the Commonwealth, including Australia, New Zealand, South Africa, and the United Kingdom, the terms 'public education', 'public school' and 'independent school' are used for private schools, that is, schools...
, social security
Social security
Social security is primarily a social insurance program providing social protection or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:...
, minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...
laws, anti-trust laws
Antitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
, legislation protecting workers' rights and the rights of trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
s, and a welfare state
Welfare state
A welfare state is a "concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those...
. Economic progressivism is based on the idea of free and fair markets. In particular, progressives believe that current markets are unfair because they have large corporation and the wealthy. Most human characteristics (e.g., personality, IQ, physical traits and abilities) follow a normal distribution which suggests that a fair market should create a normal distribution of wealth. In most countries, income distribution among individuals and corporations is highly skewed toward the wealthy. Another example of this phenomenon are social mobility tables. In a fair market, a parent's socioeconomic status should not be a strong indicator of the child's success. However, most experts have noted an astonishing level of prediction based on parents socioeconomic status. Economic progressives believe that fair markets must allow upward mobility to far greater degree than is present in even the U.S. which has the most fluid social mobility tables. Progressives believe in taxes based on use of government services. Progressive taxes, tax wealthy people more because they use government services more. For example, if you own more land then you make greater use of government services (e.g., street cleaning, surveyors, public utilities, tax services etc. ...). Progressives believe in using economic innovation that history or science has demonstrated works best. For example, many progressive support universal health care
Universal health care
Universal health care is a term referring to organized health care systems built around the principle of universal coverage for all members of society, combining mechanisms for health financing and service provision.-History:...
because countries with universal health care have higher life-expectancies and pay less than for-profit health care. In contrast, social democrats attempt to even the playing field for groups that have less upward social mobility than the general population. Progressive economics tends to focus on creating fairness for all which they believe will create upward social mobility for segments of the population. For example, social democrats tend to pass laws against racism in the workplace to create upward mobility for minorities. In contrast, progressives would be more likely to pass laws that limit arbitrary decision making/bullying by employers to eliminate unfairness in the workforce. In both cases, the idea is based on the principle of free(Everyone gets to participate) and fair(rules are used to ensure fair competition ) markets are more efficient. In contrast, libertarians emphasize the free in "free and fair markets" and define free differently. They define it has free of government involvement/regulation.
The economic theory that underpins most of the policies listed above is Keynesian economics
Keynesian economics
Keynesian economics is a school of macroeconomic thought based on the ideas of 20th-century English economist John Maynard Keynes.Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and, therefore, advocates active policy responses by the...
. However, many organizations that promote economic progressivism can be characterized as anti-capitalist and include principles and policies based on Marxism, Libertarian Socialism, and other leftwing schools of socio-economic thought. The Transformative Studies Institute
Transformative Studies Institute
The Transformative Studies Institute is an independent 501 nonprofit educational think tank based in the United States. It “was created to provide an inclusive educational space for research and practice for social justice by academics, community organizers, activists, and political leaders”...
is an example of a leftwing US educational think tank that is based on the principles of economic progressivism.