Michael Savage, the fiery host of “The Savage Nation,” recently appeared on Newsmax, calling for a return to true capitalism and rejecting the current state of “pro-big business crony capitalism.” Savage’s impassioned plea wasn’t merely a nostalgic nod to the past but a clarion call for systemic change, aimed at reversing what he sees as an erosion of genuine market principles in favor of government favoritism and political alliances. “Capitalism is about open competition,” Savage declared. “When poor decisions are made, losses should be felt. Instead, we see bailouts for the powerful while Main Street suffers.”
Savage further highlighted the similarities between President-elect Donald Trump and Senator Bernie Sanders in acknowledging that the economy is “rigged.” However, their solutions diverge sharply. “Comrade Bernie thinks we need even more socialism. And, unfortunately, a lot of young people agree with him,” Savage noted. “Donald Trump and I believe exactly the opposite. What we need is more capitalism, as opposed to the pro-big business crony capitalism that we have now.”
What is True Capitalism?
True capitalism thrives on free markets, competition, and minimal government intervention. It rewards innovation, efficiency, and hard work while allowing market forces to determine winners and losers. In contrast, crony capitalism—what Savage criticizes—favors entrenched power structures, where large corporations and government entities form mutually beneficial alliances. These alliances stifle competition, inflate costs, and create monopolies, effectively rigging the system against small businesses and everyday Americans.
As Savage pointed out, “Pro-business and capitalism are not the same thing. Capitalism, as we know, has open competition, and poor people suffer losses when they make bad decisions. What we have now are sellout deals that restrict competition and bailouts whenever the gamblers make a bad bet.”
Healthcare: An Anti-Capitalist System
America’s healthcare system stands as one of the most glaring examples of anti-capitalist structures masquerading as free-market solutions. While pharmaceutical companies and insurance giants rake in billions, consumers face opaque pricing, inflated costs, and restricted choices. Programs like Medicare and Medicaid dominate healthcare spending, with taxpayers footing an overwhelming portion of the bill. Government negotiation of drug prices, while seemingly beneficial, risks creating artificial price controls that distort market dynamics.
Over the past year alone, Americans spent $3.4 billion on prescription medications, while Medicare shelled out over $50 billion. Savage sees this as a deeply flawed system propped up by socialist policies. “Government officials…will soon conduct their first-ever price negotiations for 10 prescription drugs,” noted Gretchen Jacobson of the Commonwealth Fund. While the goal is to lower costs, the move also brings significant risks. Pharmaceutical companies have already launched lawsuits, claiming the negotiations violate constitutional rights.
Insurance processes further exacerbate the problem. Providers are forced into pre-negotiated pricing structures with insurers, and patients are often unaware of the true cost of their care until long after receiving treatment. In a truly capitalist healthcare system, transparency and competition would drive down prices and improve outcomes. As it is, prices are passed on to consumers through insurance premium hikes and higher taxes.
Mortgage Insurance and Creeping Socialism
Mortgage insurance has also begun to mirror the pitfalls of a pseudo-capitalist system. Initially designed to protect lenders from high-risk borrowers, mortgage insurance has transformed into a mandatory financial burden on homeowners, even as lenders continue to benefit from government-backed programs like FHA loans. In essence, taxpayers and borrowers bear the risk, while financial institutions reap the rewards—a hallmark of crony capitalism.
This arrangement creates a moral hazard, where the risk of poor lending practices is passed onto the public while profits remain privatized. Savage warns that such trends create long-term economic instability and fuel public resentment towards capitalism itself.
Other Examples of Socialism in the U.S.
Beyond healthcare and mortgage insurance, socialist policies have quietly infiltrated numerous sectors:
- Housing Policy: Government-mandated zoning changes and “affordable housing” initiatives often prioritize political objectives over market efficiency. Programs aimed at “housing justice” frequently result in bureaucratic red tape and increased costs.
- Education: The ease of getting untenable student loans for questionable degree programs, reduces incentives for institutional accountability. Universities build more buildings and pay professors more and more without the rise in education quality or student benefit. They simply raise tuition, which the student pays in higher and higher student loans.
- Energy Policy: Massive subsidies for renewable energy projects distort markets and often lead to inefficient allocation of resources. At this point, there are no, i.e. zero, energy storage systems at the utility scale that are profitable without subsidies, all systems are being propped up by subsidies, providing no incentive to meet market demands.
Savage views these policies as an extension of government overreach. “The assumption behind this action was that any neighborhood nicer than any other neighborhood is inherently racist,” he said, referring to Obama-era housing policies.
These policies share a common thread: they centralize control, discourage competition, and create long-term dependencies on government programs.
Why Socialism Never Works
History offers countless examples of socialism’s failure. From the Soviet Union to Venezuela, socialist economies have consistently collapsed under the weight of bureaucratic inefficiency, corruption, and resource misallocation. Even milder forms, like those seen in Western European welfare states, have led to stagnation, high taxation, and dependency.
The fundamental flaw of socialism lies in its inability to account for human incentives. Without profit motives and personal ownership, productivity declines, innovation stalls, and scarcity becomes the norm. As Savage aptly points out, socialism promises equality but often delivers equal misery.
Savage further warned, “All revolutions are similar, in that they promise the people something they want, but will never get.”
How Do We Counter the Socialist Tide?
Savage suggests a multi-pronged approach:
- Educate the Youth: Teach the principles of free enterprise, personal responsibility, and property rights.
- Promote Transparency: In healthcare, housing, and finance, true cost transparency must become the standard.
- Reduce Government Overreach: Limit the power of bureaucratic agencies and return decision-making to individuals and local communities.
- Empower Small Businesses: Level the playing field by eliminating subsidies and special privileges for large corporations.
- Encourage Open Debate: Civil discourse must return to American politics, allowing diverse ideas to be examined without immediate vilification.
A Return to True Capitalism?
Michael Savage’s call for true capitalism is more than just political rhetoric—it’s a roadmap for restoring economic freedom and reversing the creeping tide of socialism in America. As history has shown, free markets are the most effective drivers of prosperity, innovation, and individual empowerment.
