Socialism in America

Working in academic research, I am all the time surrounded by the class of individuals that John C. Calhoun would describe as the "tax consumers" (as opposed to the "tax payers"). Without coincidence I am sure, these individuals who rely on government subsidy for their livelihood are also prone to furiously defend large government institutions; I am still searching for a libertarian friend within my field of academia. 

While my situation as the lone defender of liberty can be daunting at times, it grants me a unique opportunity to put forward the well-reasoned libertarian arguments against coercive government. I have the opportunity to make these arguments not to the choir of libertarian individualists, but to the big-government beneficiaries and enablers - the court scientists, economists, and historians. 

In a recent conversation over current events of which I do not recall, I was condemned by the opposition for being "paranoid of socialism." I was informed that it is only common knowledge that America currently operates in a free market economy, void of socialistic tendencies. Furthermore, we are many decades away from anything resembling socialism. Government is only put in place where there are failures in the market. This is for our own good and democracy will keep us safe from communism and tyrannical government. The few instances of necessary intervention will not lead toward socialism, and we are all the better off because of the benevolent acts of regulation and wealth redistribution by the wise bureaucrats in DC.

As the good libertarian knows, this argument is highly flawed and almost laughable. Yet this is a serious argument presented by the other side and as far as I can tell, these beliefs reflect the common misconceptions of the general electorate. The most important misconception to set straight is that our current economic system - which is largely comprised of corporatism (a form of socialism) - is NOT a free market system. Also, there is no good logical basis for holding the position that markets provide efficient services in a particular sector of the economy, but in other arbitrary sectors (roads, electric power, money, etc ... ) the markets have inherent failures and need government rescue. Furthermore, while we are not a socialist nation (yet), we have taken what Ludwig von Mises calls the middle of the road policy (a.k.a. interventionalism), which must eventually lead to socialism or complete nationalization of industry. [read Mises' essay for free online via the Mises Institute] 

To point out how far we have strayed from a free society, I thought I would construct a list of the ways in which America is becoming socialist. While I have only listed the first 10 examples of American socialism that come to mind, there is no doubt that many more examples exist. Indeed, we have taken many steps down that road toward more government intervention that will inevitably lead to the chaotic breakdown of society that is socialism.

1. Government has achieved nearly every plank of the 1928 American Socialist Party platform. It is nice to know that in the end, the socialist party won out over the visions of Thomas Jefferson and the other founders.

2. Government has socialized money by creating the Federal Reserve system and abolishing the gold standard. Karl Marx, in his manifesto, insisted that the "advanced countries" must have a central bank to monopolize money. It looks like our current Federal Reserve system would make Marx proud. [see Karl Marx Manifesto of the Communist Party. At the end of Chapter II, the 5th enumerated characteristic of the advanced country calls for a central bank].

3. America has road socialism since government owns all the roads. [listen to Walter Block discuss road socialism]

4. America has ocean and waterway socialism since government owns all ocean off our shores and large bodies of water. 

5. Electricity and power generation is socialized. While these companies are nominally private companies, government has complete control over their operations. Furthermore, there is no free entry of competition into this industry. This example of government granted monopoly is corporatism.

6. America has education socialism.

7. Over 50% of healthcare costs come from government, which grants them near complete control over costs and services offered in the medical industry. Furthermore, the mounds of regulations and impediments to new medical care supply and entry into the medical industry allow for further government control. Again this is an example of corporatism. [See Hans-Hermann Hoppe's solution to healthcare for a free market healthcare system]

8. America has national defense socialism. We have all heard of the military industrial complex. [See Bob Murphy for an explanation of private defense]

9. America has socialism of laws and courts. Government has a complete monopoly over law, its interpretation, and its enforcement. Not surprisingly this centralization of power has consistently resulted in increasingly favorable court decisions in big government's favor. Of course when government has the opportunity to judge their own innocence or guilt, it will always rule itself innocent. There is a private law solution to this mess. [See Hans-Hermann Hoppe on private law]

10. Your income and property are socialized. With income and property taxes, the government effectively owns what you earn or what property you have purchased. You get to keep as much of it as the government allows. For income it is less than 50%.