What’s Better than Democratic Socialism?

By Mark Skousen
Editor, Forecasts & Strategies

11/06/2025

— Ronald Reagan

This week, I spoke at the New Orleans Conference about Ben Franklin as the “Father of the American Dream,” how he went from humble beginnings to become a renown publisher, scientist and diplomat.

At the end of my talk, I offered the attendees the exchange of a $100 “Franklin” dollar bill for a year’s subscription to my newsletter, Forecasts & Strategies, plus a free copy of my new book, “The Greatest American,” autographed with a rare Franklin stamp.

Afterwards, over 35 people signed up and had their picture taken with me. It helped that my recommended portfolio has doubled the stock indexes this year (up 33%). Here’s the photo.

A Sign of the Times: Electing Socialists

In my talk, I also commented on Tuesday’s election of an Islamic socialist, Zohran Mamdani, as the new mayor of New York City, with over 50% of the vote.

It was the first time the supercenter of global capitalism has elected an avowed socialist, a sign of the times. A few years ago, London, the other center of global capitalism, elected a Muslim socialist.

Mamdani now has a mandate to push through a breathtaking array of freebies: “free” bus rides, $30 minimum wage, rent control, government-owned grocery stores, free universal day care and higher taxes on corporations and wealthy New Yorkers, which, if approved, would bankrupt the city.

His election demonstrates the high level of economic illiteracy of most New Yorkers.

I would not be surprised if the exodus out of New York City accelerates, and the “Center of Global Capitalism” goes the way of Chicago, San Francisco and Los Angeles.

The Fatal Conceit of Socialism

I told the audience about my talk I give on college campuses under the title, “What’s Better than Democratic Capitalism?”

The title attracts the 70% of students who say they prefer socialism over capitalism, largely because socialists like Mamdani advocate “free” college education, medical care and other valued services.

In my college lecture, I point out that “free” goods are always more expensive through waste, abuse and shortages.

It violates the cardinal principle of economics known as the “accountability” or “user pay” principle. If you benefit, you should pay. If someone else pays — parents, your company, insurance or the government — there is little or no discipline to keep costs down, or to encourage innovation.

Populist socialism never works because it lacks the incentives to succeed. New York and other major cities have fallen in disrepair because of high taxes, excessive regulations and other socialistic policies, and it looks like it’s going to get worse.

What’s Better: Democratic CAPITALISM!

You can’t get rid of a bad idea (socialism) without providing an alternative. Democratic capitalism does the trick. Not exploitive capitalism, but democratic capitalism. Through profit-sharing, stock options and 401(k) plans, profitable business benefits all stakeholders.

Democratic socialism is all about sharing the poverty. Democratic capitalism is about sharing the wealth. Millions of private corporations offer various profit-sharing plans, a much better alternative to raising the minimum wage or imposing confiscatory taxes on the rich.

For more information on democratic capitalism, see my essay: Skeptic » Reading Room » The Economics of Life Made Simple.

“The American dream is dead.” — Donald Trump

“Gone is the day of everyone thinking they could live the American dream.” — Kamala Harris

When Alex Green was writing his compelling and inspiring new book, “The American Dream,” he discovered that last year’s presidential candidates Donald Trump and Kamala Harris had something in common: both said that the American dream is elusive for most citizens. (See quotes above.)

Last week, we had dinner together at Commander’s Palace in New Orleans, and spent several hours talking about the uphill battle he is fighting in his effort to reverse the negative attitude most Americans feel about their future, especially young people.

Alex Green and I exchange book titles at Commander’s Palace in New Orleans.

Nearly 70% of U.S. citizens believe the American Dream — the pursuit of a better, richer, fuller life, regardless of where we start — is no longer attainable.

Blame it on the high cost of living, dead-end jobs, crime in the big cities, global warming, the expense of owning a home and the challenges of raising a family.

Alex summarizes the critics of America: “America is irredeemably racist, sexist and unjust. The economy is rigged. The middle class is shrinking. Violent crime is surging. Pollution is worsening. Climate change is making the planet uninhabitable. And our free-market system — the supposed root of it all — allows a fortunate few to get rich while everyone else gets poorer.”

Now we can add: America’s greatest city, New York, has just elected an anti-capitalist, killing the American Dream for millions of New Yorkers.

Yet Alex Green, bestselling author and financial guru at the Oxford Club, does not give up easily.

I admire Alex’s skill and determination to fight the dismal economists. And every time he speakers or debates the doomsayers, he wins!

Debating a Denier at FreedomFest

In his delightful guide, he recounts the time he debated Harvard-trained economist Gregory Clark at FreedomFest. Clark claimed that Americans no longer move much, that they are stuck in their own neighborhood and that any improvement in their lives is mere luck and skill. Most now live “lives of quiet desperation,” to quote Henry David Thoreau.

Alex countered with a slue of statistics showing that the lives of most Americans have improved tremendously over the past 100 years, similar to ones he cites in his new book. Most Americans are living longer… crime is actually down in most U.S. cities… air and water pollution are way down… racism is on decline… It’s easier than ever to invest in the booming stock market… Life is getting better in many ways.

Green concludes, “Raising a family, owning a home, living well and retiring comfortably is entirely possible for anyone willing to work, save and invest.”

After the debate, I asked the audience who won, then Alex won the entire crowd over. Not a single hand went up for Dr. Clark’s position! I don’t think it has ever happened before in FreedomFest history.

Reading Alex’s book, you can see why. He has the statistics to support this thesis. He has excellent chapters on how to invest, buy a home and develop personal habits that will lead to success in life.

One thing I especially like about his book is that he avoids name-calling and the divisive rhetoric of Left and Right, but addresses the critics’ arguments rather than labeling them, whether it’s Paul Erhlich, Bernie Sanders or Noam Chomsky. Green has written a book that can bring America together again.

You can pre-order his book at The American Dream: Why It’s Still Alive… And How to Achieve It: Green, Alexander: 9781394361663: Amazon.com: Books, or buy in Barnes & Noble bookstore on Nov. 11 (see below my special announcement).

Green reminds me of two other incurable optimists in history: Benjamin Franklin and Adam Smith, the father of free-market economics.

See chapter 20, “On Doomsayers and Fear Mongering,” of my book, “The Greatest American,” where Franklin never wavered in his optimism about the new nation. When he lived in Philadelphia, an older man frequently told Franklin that the city was about to collapse, and he should sell his property; Franklin ignored his advice, and several years later, real estate prices rose significantly.

When serving as ambassador in France, he wrote one year: “We had a terrible winter in France… Yet I was still alive, the sun started to return, the days to lengthen, the spring to come, the trees and gardens to regain their vendure, all nature to laugh and to me, happiness.”

Adam Smith wrote this positive view in “The Wealth of Nations” in 1776:

“The uniform, constant and uninterrupted effort of every man to better his condition is frequently powerful enough to maintain the natural progress of things toward improvement, in spite both of the extravagance of government, and of the greatest errors of administration.”

Special Event on Veteran’s Day, Nov. 11, with Mark Skousen and Alex Green

I’m happy to announce a special event taking place this Tuesday, Nov. 11, in Orlando. I’ll be speaking at the local Barnes & Noble bookstore on my new book, “The Greatest American: Benjamin Franklin, the World’s Most Versatile Genius,” followed by Q&A and an autograph session. Each copy will receive a rare Franklin stamp, making it a collectible, such as the rare 1/2 cent Franklin stamp and the “Washington-Franklin stamp,” one of its kind.

Good news! Alex Green will be joining me at my Barnes & Noble book signing.

It turns out that the official publication date for Alex’s new book, “The American Dream: Why It’s Still Alive and How to Achieve It,” is Nov. 11, the same day as my book signing.

The book signing will take place at the Barnes & Noble Bookstore on 2418 E. Colonial Dr. in Orlando, Florida, on Veteran’s Day, Nov. 11, starting at 6 p.m.

I encourage you to join us for a lively discussion. Space is limited. Come early and find a seat! You must reserve a spot for this event at Mark Skousen Author Event.

Tuesday Nov. 11 will be a most memorable occasion to celebrate Veteran’s day and one of our country’s greatest veterans, Dr. Benjamin Franklin.

Hope to see you there.

And if you can’t make it, you can buy “The Greatest American” at a discount at www.skousenbooks.com. I autograph each copy and mail it at no extra charge inside the United States. I also include a rare Franklin stamp.

Good investing, AEIOU,

Mark Skousen
Doti-Spogli Endowed Chair of Free Enterprise, Chapman University
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