socialism – Page 2 – Sheila Kennedy

Atwater’s Explanation Still Applies

I believe it was Tallyrand who said “Man was given speech to disguise his thoughts, and words to disguise his eyes.” Had he been a contemporary American, he’d have been an enthusiastic Republican.

The late, legendary campaign consultant Lee Atwater once explained how Republicans won the vote of racists by manipulating language:

You start out in 1954 by saying, “Nigger, nigger, nigger.” By 1968 you can’t say “nigger”—that hurts you, backfires. So you say stuff like, uh, forced busing, states’ rights, and all that stuff, and you’re getting so abstract. Now, you’re talking about cutting taxes, and all these things you’re talking about are totally economic things and a byproduct of them is, blacks get hurt worse than whites.… “We want to cut this,” is much more abstract than even the busing thing, uh, and a hell of a lot more abstract than “Nigger, nigger.”

Nowadays, the economic linguistic game revolves around “socialism.” It took me a long time to realize that it’s the same game.

As an article in TNR noted,

to hear Republicans tell it, virtually everything government does is socialism; it is utterly foreign to the United States, and it cannot be implemented without imposing tyranny on the American people, along with poverty and deprivation such as we see today in Venezuela, where socialism allegedly destroyed the country.

It’s necessary to label and distort, to hide the real message, because many of the programs that trigger GOP hysteria over “socialism” are wildly popular: Medicare and Social Security come to mind. (Others are expected government services. As one friend noted on Facebook when it began to snow, “Look out for those socialist snowplows!”)

If GOP pundits and policymakers really wanted to discuss economics, rather than hide their actual motives, they would define their terms. They don’t, so allow me.

Socialism is generally what we call mixed economies where the social safety net is much broader and the tax burden somewhat higher than in the U.S. (Not as much higher as most think, actually)—Scandinavian countries are an example. The terminology tends to obscure the fact that most of those countries also maintain thriving private sector capitalist markets.

Republicans misuse of the term also obscures the considerable amount of socialism enjoyed by wealthy Americans. A system that privatizes profits and socializes losses is hardly free-market capitalism. It’s socialism for the rich and brutal capitalism for the poor.

Socialism isn’t Communism. Communists believe that equality is defined by equal results. All property is owned communally, by everyone (hence the term “communism”). In practice, this meant that all property was owned by the government, ostensibly on behalf of the people. In theory, communism erases all class distinctions, and wealth is redistributed so that everyone gets the same share. In practice, the government controls the means of production and most individual decisions are made by the state. Since the quality and quantity of work is divorced from reward, there is less incentive to innovate or produce, and ultimately, countries that have tried to create a communist system have collapsed (the USSR) or moved toward a more mixed economy (China).

Socialism isn’t Fascism. Some of our dimmer policymakers like to say that Nazi Germany was “Socialist” because fascism was sometimes called “national Socialism,” however the two are very different. In fascist systems, the nation is elevated—a fervent nationalism (MAGA?) is central to fascist philosophy. Although there is nominally private property, government controls business decisions. Fascist regimes tend to be focused upon a (glorious) past, and to insist upon traditional class structures and gender roles as necessary to maintain the social order.

The biggest problem with turning words into epithets, or using them to veil our real meaning isn’t just that it’s intellectually dishonest; it’s because labeling and dismissing avoids the conversations we ought to be having.

For one thing, the use of economic language to obscure real motives has left the U.S. with the most dysfunctional–and expensive– delivery of health care in the developed world.

The basic question in any economic system is: what should government do, and what should be left to the private sector? Another way to put that is: what services should be supplied communally? We “socialize” police and fire protection, provision of most physical infrastructure, and numerous other services–parks, garbage collection, schools, those snow plows–because it is fairer, more efficient and/or more cost-effective to do so. Those decisions don’t turn us into Venezuela.

When you deconstruct it, the GOP opposition to programs they label “socialism” is explained perfectly by Atwater’s admission. White Republican Americans are unwilling to have their taxes benefit “those people.”

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A Broken Record: Socialism and Capitalism

As I often tell my students, we Americans tend to be bipolar in our approach to the world. Events, policies and people are either all good or all bad, other nations are either “evil-doers” (in George W. Bush’s awkward formulation) or “good guys,” regulation is either killing jobs or protecting children.

Everything is either/or.

Unfortunately for our ability to communicate with each other, life and reality aren’t so neatly divided.

The recurrent hysteria (on the Right) over “socialism” and the ferocious attacks (from the Left) on capitalism are part and parcel of that unrealistic (albeit comfortingly simple) dichotomy. In the messy real world, the pertinent questions are very different–even when the people making the arguments actually are able to define their terms, which they so often can’t.

Much of the current hostility to capitalism, for example, mistakes America’s current economic reality for capitalism. In some localities, it still may be, but nationally– thanks to money in politics, lobbying by powerful interests, outright corruption and a number of other unfortunate systemic fails– what we have is mostly corporatism, or crony capitalism, not the idealized market system to which conservatives and ad agencies genuflect.

Genuine market competition has considerable merits: it encourages innovation and tends to keep consumer prices affordable. If I make a better mousetrap for a better price, my business grows, I hire more workers, and consumers catch more mice for the same money.

Similarly, “socialism” isn’t a dirty word, nor does it imply totalitarian communism. It is simply the communal delivery of services. We socialize police and fire protection, public schools, parks and highways and garbage collection, among other things, because it makes practical and economic sense to provide those things communally.

The question isn’t “should we have socialism or capitalism?” The question is: what sorts of things should a society provide communally–i.e., what services should be socialized–and what goods and services should be provided by the private market?

The question also isn’t: regulation versus no regulation. The question is: what regulations?

We want rules that ensure a level playing field–that prevent a manufacturer from dumping his waste in our rivers in order to keep his costs below those of his competitors, or that prevent a group of businesses from colluding to keep prices artificially high. We don’t want rules that are poorly conceived or unnecessarily onerous–but determining which rules are appropriate and which ones aren’t requires knowing something about the activities being regulated, and making informed judgments.

It requires the sort of expertise that Trump types sneer at as “elitist.”

Too many Americans want bumper-sticker solutions to complicated problems that don’t lend themselves to simplistic approaches. They want black-and-white answers to issues that require recognizing and working within several shades of gray. Too many of America’s loudest voices use terms they can’t define (or often, spell) and fling them as epithets rather than employing them to communicate.

We may disagree about the proper way to deliver certain services–whether we should “socialize” this or that economic or social activity or leave a particular service or function to a properly and deliberately regulated market. Those debates can be productive.

Labelling everything that offends us as “socialism” or “capitalism”–depending upon which intemperate and uninformed end of the political fringe you inhabit– gets us exactly nowhere. It may make the labeler feel superior and self-satisfied, but it doesn’t help solve our complicated problems, and it pisses off the folks at the other end of the ideological spectrum.

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More About Economic Systems

A comment posted to yesterday’s blog noted that I had not defined capitalism. Fair point.

The following description is from my last book, Talking Politics? What You Need To Know Before Opening Your Mouth, in which I included the following descriptions/comparison of capitalism and socialism.

Capitalism is defined as an economic and political system in which a country’s trade and industry are controlled by private owners for profit. It is characterized by free markets, where the prices of goods and services are determined by supply and demand, rather than set by government. Economists often define the ideal of free trade as a transaction between a willing buyer and a willing seller, both of whom are in possession of all information relevant to that transaction.

Understanding the importance of free trade to capitalism is important, because it defines the proper role of government in a capitalist system—as an “umpire” or referee, ensuring that everyone plays by the rules. For example, Teddy Roosevelt reminded us that monopolies distort markets; if one company can dominate a market, that company can dictate prices and other terms with the result that those transactions will no longer be truly voluntary. If Manufacturer A can avoid the cost of disposing of the waste produced by his factory, by dumping it into the nearest river, he will be able to compete unfairly with Manufacturer B, who is following the rules governing proper waste disposal. If Chicken Farmer A is able to control his costs and gain market share by failing to keep his coops clean and his chickens free of disease, unwary consumers will become ill. Most economists agree that in order for markets to operate properly, government must act as an “umpire,” assuring a level playing field.

This need for government is a response to what economists call “market failure.” There are three situations in which Adam Smith’s “invisible hand” doesn’t work: when monopolies or corrupt practices replace competition; when so-called “externalities” like pollution harm people who aren’t party to the transaction (who are neither buyer nor seller); and when there are “information asymmetries,” that is, when buyers don’t have access to information they need to bargain in their own interest. Since markets don’t have built-in mechanisms for dealing with these situations, most economists argue that regulation is needed.

Economists and others often disagree about the need for particular regulations, but most do agree that an absence of all regulatory activity undermines capitalism. Unregulated markets can lead to a different system, sometimes called corporatism. In corporatist systems, government regulations favoring powerful corporate interests are the result of lobbying by corporate and monied special interests that stand to benefit from them. You might think of it as a football game where one side has paid the umpire to make calls favorable to that team.

Socialism is the collective provision of goods and services. The decision whether to pay for certain services collectively rather than leaving their production and consumption to the free market can be based upon a number of factors. First, there are some goods that free markets cannot or will not produce. Economists call them public goods, and define them as both “non-excludable” –meaning that individuals who haven’t paid for them cannot be effectively kept from using them—and “non-rivalrous,” meaning that use by one person does not reduce the availability of that good to others. Examples of public goods include fresh air, knowledge, lighthouses, national defense, flood control systems and street lighting. If we are to have these goods, they must be supplied by the whole society, usually through government, and paid for with tax dollars.

Not all goods and services that we provide collectively are public goods. Policymakers have often based decisions to socialize services on other considerations: we socialize police and fire protection because doing so is generally more efficient and cost-effective, and because most of us believe that limiting such services only to people who can afford to pay for them would be immoral. We socialize garbage collection in more densely populated urban areas in order to enhance the livability of our cities and to prevent disease transmission.

Getting the “mix” right between goods that we provide collectively and those we leave to the free market is important, because too much socialism hampers economic health. Just as unrestrained capitalism can become corporatism, socializing the provision of goods that the market can supply reduces innovation and incentives to produce. During the 20th Century, many countries experimented with efforts to socialize major areas of their economies, and even implement socialism’s extreme, communism, with uniformly poor results. Not only did economic productivity suffer, so did political freedom. (When governments have too much control over the means of production and distribution, they can easily become authoritarian.)

Virtually all countries today have mixed economies. The challenge is getting the right balance between socialized and free market provision of goods and services.

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Labels Versus Definitions

Yesterday morning, I was on the treadmill listening to “Morning Joe.” Scarborough was interviewing the Governor of Colorado, John Hickenlooper, who is one of the thousands of Democrats running for President. (Okay, maybe thousands is an exaggeration…) Hickenlooper was a successful entrepreneur before becoming Mayor of Denver and then Governor, and Scarborough asked him if he considered himself a capitalist.

When Hickenlooper responded that he didn’t like labels–that he focused on solving problems–both Joe and one of his panelists repeatedly pressed Hickenlooper on the issue, since they both said– falling neatly into a semantic trap being set by Republicans–the Democratic Party is split between good old American capitalism and a “socialist” flank.

I wish Hickenlooper had been more artful in his response. He might have pointed out that all western democracies are what we call “mixed” economies. (He did note that Social Security was originally opposed for being “socialist,” which of course it is.) We need capitalism in those areas of the economy where it clearly works well, and state-sponsored systems in areas where markets fail.

He also might have made the point that Elizabeth Warren has repeatedly made: as a capitalist, she wants to rescue capitalism by reinstating the regulatory rules that mandate the level playing field that is essential if markets are to work. (As I have noted in previous posts, America no longer has a genuine market system–capitalism has devolved into corporatism.)

In our highly polarized politics today, words like Socialism, Fascism and Communism are used more as insults than descriptions. So let me offer a few definitions.

Socialism may be the least precise of these terms. It is generally applied to mixed economies where the social safety net is much broader and the tax burden is correspondingly higher than in the U.S.—Scandinavian countries are an example.

Communism begins with the belief that equality is defined by equal results; this is summed up in the well-known adage “From each according to his ability; to each according to his needs.” All property is owned communally, by everyone (hence the term “communism”). In practice, this meant that all property was owned by the government, ostensibly on behalf of the people. In theory, communism erases all class distinctions, and wealth is redistributed so that everyone gets the same share. In practice, the government controls the means of production and most individual decisions are made by the state. Since the quality and quantity of work is divorced from reward, there is less incentive to innovate or produce, and ultimately, countries that have tried to create a communist system have collapsed (the USSR) or moved toward a more mixed economy (China).

When pundits take to the fainting couch over leftists who call themselves Democratic Socialists, they are (intentionally?) confusing socialism with communism. That doesn’t necessarily mean that we shouldn’t analyze and debate proposals to “socialize” added areas of the economy–but that analysis ought to rest on accurate definitions of the terms being used.

What about the other end of the political spectrum?

Fascism is sometimes called “national Socialism,” but it differs significantly from socialism. The most striking aspect of fascist systems is the elevation of the nation—a fervent nationalism is central to fascist philosophy. There is a union between business and the state; although there is nominally private property, government controls business decisions. Fascist regimes tend to be focused upon a (glorious) past, and to uphold traditional class structures and gender roles as necessary to maintain the social order.

Three elements commonly identified with Fascism are 1) a national identity fused with racial/ethnic identity and concepts of racial superiority; 2) rejection of civil liberties and democracy in favor of authoritarian government; and 3) aggressive militarism. (Sound familiar?)

If Hickenlooper’s appearance on Morning Joe is any indication, Americans are in for two years of empty posturing over economic terminology bullshit.

Maybe I can just hide under my bed until 2020 is over…..

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What’s In A Name?

Paul Krugman’s recent column in the New York Times was titled “Trump versus the Socialist Menace,” and the tag line beneath the title warned that commies were coming for your pick-up truck.

The title alluded to Trump’s most recent effort to generate fear in his base. Krugman reminded us that we’ve seen this movie before, when the horrible threat of Medicare was looming, and the AMA hatched a plan to defeat it.

Here’s how it worked: Doctors’ wives (hey, it was 1961) were asked to invite their friends over and play them a recording in which Ronald Reagan explained that socialized medicine would destroy American freedom. The housewives, in turn, were supposed to write letters to Congress denouncing the menace of Medicare.

Obviously the strategy didn’t work; Medicare not only came into existence, but it became so popular that these days Republicans routinely (and falsely) accuse Democrats of planning to cut the program’s funding. But the strategy — claiming that any attempt to strengthen the social safety net or limit inequality will put us on a slippery slope to totalitarianism — endures.

It sure does. It’s fed by America’s bipolar, “either-or” approach to policy and ignorance of economic systems.

In the real world, there are very few countries where either socialism or capitalism characterizes the entire economy. Virtually all democratic nations have a mixed economy, meaning that certain things are socialized (i.e., provided communally, through government and paid for by taxes) and others are left to the market.

The actual question facing policymakers is which approach is appropriate in a given situation.

America already “socializes” police and fire protection. Most cities “socialize” garbage collection. Our streets and sidewalks–and interstate highways–are “socialized.” (In a recent Facebook post, a friend warned that a “socialist snowplow” was coming down his street.)

One way to think about this (although “thinking” is apparently a difficult assignment for many folks) is that government is a mechanism through which societies provide infrastructure. Some of that infrastructure is physical–bridges, roads, etc.–and some of it is social. Police and firefighters, Social Security and Medicare and a variety of social welfare programs are part of the social infrastructure.

Market capitalism, properly regulated, is incredibly successful in providing goods and services when buyers and sellers are operating on relatively equal terms. Economists tell us that markets work well when there is 1) a willing buyer and a willing seller both of whom are in possession of all relevant information, and 2) government has ensured a level playing field.

Quite obviously, there are areas of the economy in which markets don’t work. (Utilities come to mind–when did you last take bids from companies wanting to supply your water or sewer?) In those areas, government gets involved, either through stringent regulation or –gasp!–by socializing the service.

It is perfectly reasonable to debate whether a given service or economic area should be left to the market or provided communally–and if the latter, how that should be done. It is both unreasonable and dishonest to pretend that every decision to socialize a service is a step toward totalitarian communism, but as Krugman says, that’s this administration’s rhetoric.

You say you want free college tuition? Think of all the people who died in the Ukraine famine! And no, this isn’t a caricature: Read the strange, smarmy report on socialism that Trump’s economists released last fall; that’s pretty much how its argument goes.

Ironically, these hysterical descriptions have actually made the word “socialism” less off-putting. Recent polls show a significant number of voters approving of socialism (including a majority of those under 30). They’ve evidently accepted conservative labeling that “describes anything that tempers the excesses of a market economy as socialism, and in effect said, “Well, in that case I’m a socialist.””

When words are used as invective, they no longer communicate anything of substance. I think that’s where we are with both capitalism and socialism, and that really impedes rational policymaking.

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