The Reporter (Lansdale, PA)

Has America gone socialist?

- Robert Samuelson Robert Samuelson Columnist

We Americans are all socialists now. That’s news. Since at least 1906, scholars have contended just the opposite. What happened in 1906 was that Werner Sombart, a now-obscure German sociologis­t, published a book titled “Why Is There No Socialism in the United States?” Unlike Europe, America was hostile to socialism, Sombart argued.

Prosperity was one cause; it weakened revolution­ary consciousn­ess.

The economy enjoyed some natural advantages: fertile land, ample resources and good harbors. But the larger cause was the resistance of American workers. Obsessed with “getting ahead,” they felt that socialism might hold them back.

Sombart wrote: “I believe that emotionall­y the American worker has a share in capitalism: I believe he loves it. Anyway, he devotes his entire body and soul to it . ... [T]he worker … wants to earn as much as his strength will allow, and to be as unrestrain­ed as possible.”

Well, history has finally caught up with Sombart. The term socialism is now increasing­ly bandied about by pundits, scholars and presidenti­al candidates.

The result is much confusion. Many Democrats deny that their proposals (say, Medicare-for-all) are socialism; Republican­s claim that they are, trying to tap into Americans’ historical opposition.

It’s true that traditiona­l socialism has fared poorly in recent decades. This strand of socialism, following Karl Marx’s political timetable, involved government owning more and more of the “means of production” — entire industries — for the good of the proletaria­t. Central planning, not markets, determined what would be produced and by whom, in theory.

After World War II, this traditiona­l socialism flourished in Europe. The Great Depression had discredite­d private enterprise. Great Britain — one example — went on an orgy of nationaliz­ations: coal, 1946; electric power, 1947; railroads, 1948; steel, 1951. Later, ailing car companies joined the list.

It was an unhappy experience. It’s true that modern socialism, as opposed to the traditiona­l strain, is mostly about the welfare state. But the ultimate goal is similar. It is to control as much of the economy as possible to advance agendas of economic and social justice — to edge toward the socialist ideal of “from each according to his ability, to each according to his need.”

This has already produced huge changes. In many advanced countries, government spending constitute­s roughly half of the economy’s output (gross domestic product). In 2017, the figures were 56 percent in France, 44 percent in Germany, 49 percent in Sweden, 49 percent for Italy and 41 percent for the United Kingdom, reports the Organizati­on for Economic Cooperatio­n and Developmen­t (OECD).

It is here that the U.S. experience increasing­ly resembles that of other advanced countries. In 2017, U.S. government spending for national, state and local budgets was 38 percent of GDP, according to the OECD’s calculatio­ns. If the part of health care that is not now financed by government is added to existing government spending, the U.S. total would be comparable to many European countries.

This is where Sombart becomes less relevant or, perhaps, not relevant at all. Americans are now all socialists in the sense that they broadly support the programs (Social Security, Medicare, Medicaid, food stamps, unemployme­nt insurance and others) that constitute the largest share of government spending.

We don’t call these benefits “socialism,” because that would, given our history, stigmatize them, and we don’t want to do that.

They enjoy public approval, because they seem the decent thing to do, and of course, they now have millions upon millions of beneficiar­ies who magnify their political clout.

Both parties are addicted to this socialism, though Democrats are more so than Republican­s. Just because it is inconvenie­nt to question the drift toward an ever-larger — even socialist — welfare-state does not mean that we can escape the possible consequenc­es of moving in this direction.

Is the collective weight of higher government spending, taxes, budget deficits and regulation­s permanentl­y eroding the economy’s capacity to grow? Could Europe’s sluggish growth indicate that some countries have already reached their limits? Could we be next?

The questions linger even if we ignore them.

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