Hence the increase in household debt.
The more services you cut that actually help the people the more they hurt.
Certain services cannot be for profit, however if such services are privatized then profit motivation will generally force up prices.
eg utilities cost, medicine and medical services, education etc. Everyone need them except that the propotion of such shoul and must not be the entire household income ( Refer Elizabeth Warren Video and changes and trend in how American spend their household income - just too lazt to look for it )
Of course with an increasing share of the income they end up paying more. Bush tax cut cannot be extended. In fact the taxes must be raised to maintain the services. Yes it is bailing out the people. If bailing out the financial sector is so easy why should bailing out the people be any different.
Ask him to watch this for the end game.
Very very simple explanation of why USA is in do do land.
As for socialism being a bad word.
Cheaper education, cheaper health care, cheaper food, cheaper utilities bills, cheaper transportation etc reduces household expenses .... debt. For profit equal 100 of millions in bonuses Minimum wages means bigger profit bigger bonus