The Social Democracy

The "Social Democracy" or the "Nordic Capitalism" is a large and reformist labor movement that emerged in 1868 in Germany, which I call ”The Human Capitalism” or thus ”The Modern Capitalism”.

Social democracy is an agreement between socialism and capitalism. A third path in between the political left and right paths that aims to reform and taming capitalism for the benefit of the people. Hence, social democracy, also known as Nordic capitalism, should not be confused with "democratic socialism", which is a democratic version of the socialism and is fundamentally at odds with capitalism.

The main characteristic policy of the Social Democracy

One of the central and specific policies of Social Democracy is the policy of redistribution of wealth, which is based on a fair and progressive tax system. This means that every real and legal person who has a higher income also pays more taxes, and the accumulation of these taxes in elimination of the poverty and abnormal inequality is distributed among individuals and sections of society who need financial assistance.

The policy of redistribution, which takes money from the affluent section of society and distributes it among the needies, causes the society to get vaccinated against the phenomenon of money and capital, and human and humanistic standards to be among the first values ​​of society instead of money and capital.

Tax or sort of a premium to governmental insurance

The citizens of such a society, by paying fair taxes pay indeed an insurence premium first and foremost for themselves, then their loved ones, and finally their community, to a governmental public and universal insurance which is backed by governmental resources. In this way, individuals and society are freed from the chain of economic fluctuations and are uttermost secured.

While the private ownership is respected from the point of view of social democracy, at the same time it has a certain scope. It is not following a direct diagram that more capital always will generate more profit at the same rate. Rather, capital reproduction is better represented by a summarized sine diagram so that the profitability of capital is affordable only in a certain range. (Explanation of the sine diagram and the direct diagram is explained at the bottom of this post)

This goes back to the progressive and fair taxes. The more profit capitalists have, the more tax they pay. What justifies this is that the production of capital’s gains is possible with the collective nature of the society. A small profit by each member of the society accumulates a huge final profit in the end. Therefore, it is logical and fair that capitalists pay their debt to the same society so that abnormal inequalities do not occur in the that society so that it gets corrupted and destroyed.

Tax is a tool of the regulation

It is a regulation of the power and influence of the capital in the society, carried out by the progressive tax and the policy of redistribution of the wealth. As is the case in the Nordic countries, and thereof the reputation of quality and pervasiveness of welfare in their communities with high quality and among all walks of life, as well as comprehensive development and a democracy that is world famous.

Therefore, the provision of citizens beside the creation of the jobs by the government should not be left to the primitive method of traditional benevolence of the charities, which is limited to kind of personal tastes and abilities. While it is far more stable, secure, effective and modern that this mission be a governmental duty which also ensures the protection of personalities of the individuals.

In other words, an optimal minimum governmental welfare standard, such as in the Nordic countries like Sweden, is necessary in order to everyone in any condition be economically secure and supplied and thus prevent the anomalies created by the power and influence of the money, as in societies that have been and still are governed by an old capitalistic system like what is in progress in countries like Iran and even to some extent in the United States. That Nordic standard is a necessity and an inevitable cure for the roots of abnormal inequalities and heart-breaking poverty followed by extensive criminality that are a large part of communities with old capitalism. Not to forget that in Nordic countries the government is indeed an extension of the people themselves who serves them, not an authoritarian sir above the head of the people who is their master and very often is highly currupt.

The policy of strengthening the influence of employees in the working life

Another policy of Social Democracy is to strengthen the influence of employees in the way and form of working life, and especially the amount of reasonable and fair wages, which is possible by strengthening the right to strike along with strengthening the organization of employees.

With the liberation of all citizens from their basic material needs under the guise of a progressive and active economy in which the security and interests of all are guaranteed, the opportunity to address and highlight human qualities and the spread of Iranic humanism is recognized beyond any personal belief. Citizens who, by objectively touching on the benefits of such a community, will find the desire to make effort for the development of themselves, their loved ones and their community. An important event that promises a new era of human civilization. The era of "The Practical Equality" and spread of "The Iranic Humanism".

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Explanation of the direct diagram:

Direct Diagram

In a direct diagram, the more we move from the left to the right (ie move forward), the slope of the graph is always ascending higher, and theoretically, if we go to infinity, the direct diagram climbs to infinity too.

The same thing happens with very high incomes when modern progressive taxes are not in place. The more income there is, because there is nothing to stop it, so whoever has wider roof, the more snow there will be.

Thus in societies where old capitalism that is the primitive type of capitalism and in which modern tax structures have not been established, capital and the following favoritism which are usually limited in size, is monopolized by a few.

Therefore, in such a jungle economy, millions of people have to fight brutally with each other for the most basic needs, give in to any circumstances, and ultimately get sacrificed in ignorance, deprivation, regret, backwardness, and possibly some debt in order to a few of the oppressors or bullies reach prosperity in this jungle.

A structure in which the quality of inequality is very abnormal and the percentage of oppression, all kinds of corruption and crimes are very high and money, as a comprehensible qibla for everyone, usurps the place of the most high values.

Description of the sine diagrams:

Sinusoidal Diagram

In the sinusoidal diagram, as we move from the left to the right (ie move forward), the ascent of the wave slope is not always ascending, but somewhere the ascent is flattened and then descends.

The progressive tax does the same with very high incomes (for very high incomes, please see the note after this one). When the income becomes too high, the tax stops it from rising, and if the income increases again, the tax also increases, is deducted from the income, and what is left of it becomes more declining.

Thus, the accumulation of wealth is no longer cost-effective, and this means a kind of control, regulation. But those taxes are distributed among individuals and businesses in need, and society is insured economically. The company or person who had a very high income, if goes bankrupt for some reason or the business stagnates, like any other person or company, is insured and receives help.

A healthy, prosperous and insured society will ensure the security of all, is support and encouragement for all, not disappoint them, and at the same time increase solidarity and humanity in society. What gets frustrated is the bullying and the unlimited power of the capital corruption, the supremacy of the devil gets disappointed.

Of course, for a person accustomed to primitive capitalism, the illusion may arise that by controlling high incomes, it is essentially planned to plant a tree and use its fruit, but as soon as the tree has grown and its fruits have grown, it will Uproot, with the aim of replanting and watering it to bear fruit.

In response to this illusion, it can be explained that no, when the fruits of the tree increase, the fruits and not the tree are picked so that the stems of the same tree do not break, and if a pest strikes the tree, preparation of an anti-pest medicine with the money of the fruits will prevents the tree from dying.

Tax is not a pest, it is a tool to control and regulate the weight of the fruits of society, which prevents the destruction of the same enterprises and individuals when a pest occurs or the definite fluctuations attached to the market structure strikes on

Abnormal inequalities corrupt and damage society, crime and fraud increase, society eventually falls, money- and force centeration will replace the humanism and society becomes the jungle of the powerfuls and the tyrants of capital.

Modern and progressive taxes prevents this unbridled disintegration, and by regulating and controlling the market and capital, they plunge the devil into the bottle.

A Note:

In Sweden, which has a social democratic structure, the aim of tax policies is to focus more on incomes such as the large incomes of industrial plant owners. It should also be noted that according to statistics, in Sweden, more than eightytwo percent of the total tax paid by a Swedish citizen during his lifetime is reimbursed in the form of services and allowances.

For more information on Swedish taxation, please refer to the article "I’m an American living in Sweden. Here’s why I came to embrace the higher taxes." by Tom Heberlein, Professor of Sociology at the University of Wisconsin and Visiting Professor at the Swedish University of Agriculture. In his article, for example, he acknowledges:

• On average, a Swede pays 22% of his or her income tax. Exactly the same amount that Betty and I paid about American (state and federal) income tax. Critical Americans claim that Swedes pay 56% - that way, the government takes more than half of your money before you spend it.

• This is not the case: 56% of the tax rate is called the marginaltax, which means that high-income people, when their income exceeds a certain amount (currently SEK 615,000 per year), have a higher amount of tax [only] on the part of their income that Excess on the ceiling is set to pay. But the amount that is set below the ceiling is always subject to about 30% tax. Only 15% of all Swedes pay that higher tax. Our total Swedish income tax amounted to 31%. Yes, our income tax in Sweden was higher than in the United States, but we still paid less than a third of our income in taxes.

• We also found that Sweden's income tax is much more progressive than that of the United States. I only paid 7%, because I was receiving $ 18,000 for part-time teaching. Betty earned about five times as much as I did that year, and her total tax was 35 percent.

• When Betty "retired" and her working hours were cut in half, I was surprised to find that the amount that went into our bank account was not cut in half. Her tax rate was also reduced from 35% to 18%. By comparison, our gross income has fluctuated $ 85,000 over the last three years in the United States, while we paid 21 percent, 25 percent, and 21 percent in income tax. In the year we earned the most, we faced the lowest tax rates. There was no progressive mode.