Sunday, July 19, 2009

What is Socialism

Socialism is first and foremost an economic theory. If someone says “This country is socialist” they mean to speak specifically to the way politics manages the economic administration of the country.

So what does this economic perspective encompass? Traditionally, socialist (economic) political agenda includes collective ownership and administration of (1) the means of production, (2) the distribution of goods and it's fair distribution across the full spectrum of society in an egalitarian (aka all people are philosophically equal) manner.

To offer a little history the most famous promoter of the Socialist perspective was Karl Marx. He said that socialist ideals would be achieved via class struggle where the working class would fight to come into power. Said another way (that you have maybe heard in the press), Socialism would be achieved via a proletarian “class war” revolution.

In an American form of government we are ruled by a Constitution. All other laws in our country are based on and conform with the rule of law provided by the Constitution. If laws are suggested that do not comply with the Constitution then we hear that the ruling was “un-Constitutional” and the ruling is typically addressed and reversed.

In a proletarian (or working class) “class war” the only way an American form of government becomes truly socialist would be via revolution. A revolution would be required to abandon the Constitution which explicitly declared that we have a Republican and not Socialist form of government. Said another way, no matter who is elected in the American form of government, the elected rulers cannot simply convert the government from a Republic to a Socialist form.

As late as the late 1700 and early 1800 a man by the name of Robert Owen from Wales helped to co-found the Socialist economic theory. Mr. Owen believed that Socialism should be founded on three core philosophies: (1) people are a product of their environment and are not responsible for who they have become. They are a socially engineered creature and society is responsible and not the individual, (2) all religions are absurd and weaken mankind while general spirituality is acceptable to a degree, and (3) that the government should manage the output of the nation on an administrative level.

Socialism has not moved far from the days of Robert Owen. In fact in as late as 1825 Owen himself ventured to implement a form of Socialism within a Capitalist society. The experiment lasted two years, was placed in New Harmony, Indiana (USA), and was a miserable failure. Even though a lot of money had been invested in the socialist experiment (this was a historical hallmark of Owen's form of socialism... the large financial investment) it was said to have failed because the social mix in the planned community consisted of people who were well intentioned but contained others who were called “wrongheaded enthusiasts” or “lazy theorists.” Said another way, for Owen's Socialism to have worked in a Capitalist society it would have demanded that all those in power be well educated in the principles of socialist production, confirmedly well intentioned.

On the flipside Josiah Warren, a participant in the experiment, said that it was a plan doomed to fail from the beginning because it ran against traditional Capitalist values such as individual sovereignty and private ownership. It seems that Josiah had a grasp of the incompatible values between Socialism and Capitalism while Owen would have to subjugate Capitalism to the values of Socialism to be successful.

So is America Socialist? Well, I think this selection of history demonstrates that while America is confirmedly Capitalist that people from time to time attempt to implement Socialist philosophical economic theory into it. Because Capitalism is not compatible with Socialism one or the other eventually must step aside. And since Capitalism values personal individual sovereignty and private ownership and these value must be removed from society for Socialism to inevitably work, I don't see America truly embracing Socialism anytime soon.

As an additional side note, it took two years for Owen's Indiana experiment to fail. Again, recall that it required a large investment and as at war in Capitalist values and it still took two years to fail. If you increase the scale of the experiment to encompass all of the United States and increase the investment from, say, thousands of dollars to, say, trillions of dollars you can imagine that America could try a grander “Capitalism + Socialism” experiment again, but he result will likely be one of three scenarios:

1.Capitalism leaves the equation quickly and Socialism becomes the economic theory for America.
2.Capitalism leaves the equation slowly and Socialism becomes the economic theory for America but the investment is so expensive that it reduces everyone into either the “working class” or into the “administrative (governing) class” (read the history of Communism.)
3.Capitalism stays and Socialism leaves slowly, and we are again buried under the investment of the experiment in a new national great depression.

At the moment I don't think we are in a place that could truly afford the investment to make such an experiment a success (if it could be a success at all.) I worry that we might try however and end up in scenario #3 above.

Regardless of speculation, I do not believe America has a Socialist form of government. Based on this history I do believe we might be heading for a new experiment in merging socialist values with capitalist values.

Finally, it is worth mentioning that Karl Marx said that Socialism is only a transitional stage. History tells us that his assertion is true. Countries do not inevitably stay socialist. According to Marx, on one end of the economic spectrum lives Capitalism, on the other end Communism. Karl Marx said that Socialism is the transitional stage from Capitalism to Communism.

Read my blog entry on Communism to learn more.

Here are the links to the blog posts:
  1. America is a Democrazy: Intro
  2. What is Democracy
  3. What is Socialism
  4. What is Communism
  5. What is a Republic
  6. What is a Democrazy - Afterward

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