Monday, October 27, 2008 — Sense and Nonsense About “Socialism”

The word “social­ism” is used to mean vir­tu­al­ly any­thing imag­in­able, but if it means any­thing at all intel­li­gi­ble, it is “con­trol of pro­duc­tive enter­prise by the state”. More exact­ly, it means that the peo­ple who con­trol pro­duc­tion and the peo­ple who con­trol the state are the same peo­ple. Most states in human his­to­ry have been pre­dom­i­nant­ly social­ist. In most pre-mod­ern soci­eties, the state had direct con­trol of pro­duc­tion. Peas­ants worked land owned by an aris­toc­ra­cy, and that aris­toc­ra­cy con­sti­tut­ed state pow­er. Indus­tries were owned by the king or rel­a­tives of the king, by barons, by the Church, or by cor­po­rate bod­ies, all of which exer­cised the author­i­ty of the state. Some­times a bureau­crat­ic appa­ra­tus, answer­ing direct­ly to a monarch, planned and direct­ed pro­duc­tion, and some­times con­trol was divid­ed among a few aris­to­crat­ic fam­i­lies, or a few cor­po­rate enti­ties. Where non-aris­to­crats engaged in trade or man­u­fac­tur­ing, they were vul­ner­a­ble at all times to seizure, con­trol, or black­mail by the aris­toc­ra­cy. The goal of the upward­ly mobile was to bribe their way into that aris­toc­ra­cy, and to exer­cise those self-same pow­ers. Many coun­tries pre­serve that pat­tern today, though some­times it is masked by a thin veneer of pseu­do-democ­ra­cy. Some­times the pat­tern is specif­i­cal­ly called “social­ism”, and some­times not, but there is no impor­tant dif­fer­ence between those which use the term and those which do not.

Thus, social­ism can be char­ac­ter­ized as the ortho­dox, con­ser­v­a­tive eco­nom­ic doc­trine. In the twen­ti­eth cen­tu­ry, var­i­ous total­i­tar­i­an move­ments, such as Com­mu­nism, Fas­cism, and Nation­al Social­ism per­pet­u­at­ed the doc­trine of state con­trol of pro­duc­tion, and can be char­ac­ter­ized as “social­ist”. They were in no sense engag­ing in any new kind of eco­nom­ic sys­tem. They were mere­ly repro­duc­ing the same eco­nom­ic struc­tures prac­ticed in ancient Egypt, in clas­si­cal and medieval empires, or in the France of Louis XIV, only doing so more thor­ough­ly. All these total­i­tar­i­an move­ments are best clas­si­fied as forms of extreme ultra-con­ser­vatism. They achieved the max­i­mum degree of cen­tral­iza­tion, turn­ing entire nations into the prop­er­ty of a small aris­to­crat­ic oli­garchy, or even a sin­gle dic­ta­tor. They also achieved the max­i­mum degree of tyran­ny, injus­tice, and human suf­fer­ing. But emper­ors like Mao Zedong, Vladimir Lenin, and Adolf Hitler did not use any eco­nom­ic the­o­ries or struc­tures that were not per­fect­ly famil­iar to Genghis Khan or Ashurbanipal.

The state can con­trol pro­duc­tion through a vari­ety of tech­niques. Pro­duc­tive enter­pris­es can be admin­is­tered through a state bureau­cra­cy, they can be parceled out to a hered­i­tary or mil­i­tary aris­toc­ra­cy, or to cor­po­rate bod­ies which are the­o­ret­i­cal­ly (but not actu­al­ly) “sep­a­rate” from the state. All these con­fig­u­ra­tions can log­i­cal­ly be called “social­ism”. If large por­tions of pro­duc­tive enter­prise are engaged in mil­i­tary pro­duc­tion, whose only cus­tomer can be the state, then that too should ratio­nal­ly be called “social­ism”. Any coun­try that engages in pro­tract­ed and exten­sive war­fare is, ipso fac­to, social­ist. If large por­tions of pro­duc­tive enter­prise are tied to gov­ern­ment through spe­cial priv­i­leges, sub­si­dies, bailouts, or gov­ern­ment con­tracts, that is social­ism as well. Any coun­try whose econ­o­my is dom­i­nat­ed by giant cor­po­ra­tions, which manip­u­late and deter­mine state pol­i­cy, is socialist.

The Unit­ed States has long engaged in exten­sive social­ist prac­tices. The Amer­i­can Con­ser­v­a­tive move­ment has been the most aggres­sive pro­mot­er of social­ism, by encour­ag­ing ram­pant mil­i­tary spend­ing, and pro­mot­ing the con­cen­tra­tion of state-cor­po­rate pow­er and priv­i­lege. The U.S. is far more “social­ist” than, say, Cana­da, where there is con­sid­er­ably less of these activ­i­ties. To repeat what should be obvi­ous, you have social­ism when the peo­ple who con­trol pro­duc­tion and the peo­ple who con­trol the gov­ern­ment are the same peo­ple. Nobody with an ounce of com­mon sense would deny that this is the case in the Unit­ed States, today, and any­body who both­ers to think straight should see that this is the cen­tral ide­o­log­i­cal desider­a­tum of the Con­ser­v­a­tive move­ment. Amer­i­ca’s social­ism is the prod­uct of its dom­i­na­tion by Con­ser­v­a­tive ideology.

Social­ism has noth­ing to do with the pro­vi­sion of gov­ern­ment ser­vices. Risk-reduc­tion ser­vices, such as Canada’s health insur­ance sys­tems, or pen­sion plans, or wel­fare ser­vices, or edu­ca­tion­al ser­vices pro­vid­ed by gov­ern­ment, are not con­trol of pro­duc­tion. They are not “social­ism” or “social­ist”. Pro­gres­sive tax­a­tion is not “social­ist”. Mea­sures to pro­tect the pub­lic from fraud, or pro­mote pub­lic safe­ty, or to over­come injus­tice or to pro­tect the rights of labour­ers are not “social­ist”. There is no con­nec­tion what­so­ev­er between these things and socialism.

In fact, the more social­ist a state is, the more pow­er it can exert over its peo­ple, and the less it has to answer to them. Con­se­quent­ly, it is less like­ly to pro­vide these ser­vices, and less like­ly to cre­ate social jus­tice. Com­mu­nist regimes, for exam­ple, have nev­er pro­vid­ed any sig­nif­i­cant amount of pub­lic ser­vices. What would com­pel them to? An omnipo­tent Com­mu­nist aris­toc­ra­cy can do what­ev­er it pleas­es with the peo­ple — feed them or starve them, pam­per them or kill them, throw them onto the trash heap, evict them for a pow­er dam or a sky­scraper, allow them con­sumer goods or take them away, accord­ing to its whim. Regimes that con­trol the means of pro­duc­tion are most like­ly to pro­vide only the bare min­i­mum of ser­vices that stave off rebel­lion, and use their dis­burse­ment to dis­ci­pline and con­trol the peo­ple. You find good qual­i­ty pub­lic ser­vices in demo­c­ra­t­ic regimes, where the peo­ple have been strong enough to lim­it cor­po­rate-state con­trol of pro­duc­tion. Cana­da has bet­ter health care than the Unit­ed States part­ly because it is less social­ist than the Unit­ed States. The Unit­ed States has infe­ri­or health care because it is more social­ist than Canada.

The aim of tru­ly pro­gres­sive polit­i­cal and eco­nom­ic thought is to pre­vent the con­cen­tra­tion of pow­er in the hands of the few, and the con­cen­tra­tion of prop­er­ty in the hands of the few. It should seek to pre­vent con­cen­trat­ed cor­po­rate pow­er or aris­toc­ra­cy from gain­ing con­trol of pro­duc­tion. Pro­gres­sive thought is then, by log­i­cal neces­si­ty, anti-social­ist and anti-cor­po­rate. But pro­gres­sive thought embraces the util­i­ty of gov­ern­ment ser­vices when­ev­er they enable and enhance the free­dom and auton­o­my of the indi­vid­ual (as, say, our health insur­ance sys­tem does in Cana­da). It just as firm­ly rejects sham gov­ern­ment “ser­vices” that are mere­ly strat­a­gems to give pow­er over the peo­ple to a man­age­r­i­al elite. Thus, a Pro­gres­sive who glad­ly sup­ports health insur­ance reform should oppose state plans to herd “the low­er class” into state-con­trolled hous­ing. Pro­gres­sive thought embraces a social “safe­ty net” under all our feet, pro­vid­ed it is not rigged to con­trol its recip­i­ents, and always rejects hand­outs and sub­si­dies for the rich. Democ­ra­cy’s mean­ing is clear: the peo­ple should rule; they should not be ruled.

The rev­o­lu­tion­ary aim of democ­ra­cy is to cre­ate a soci­ety where every indi­vid­ual has a sig­nif­i­cant share of prop­er­ty and exer­cis­es prac­ti­cal auton­o­my, where the oppor­tu­ni­ties and fruits of enter­prise are open to every­one, and where no priv­i­leged clique exer­cis­es pow­er over the major­i­ty. The demo­c­ra­t­ic state is sup­posed to serve this aim, and nev­er to pro­mote the inter­ests of an elite, whether it dress­es up as man­darins, dukes, com­mis­sars, or CEOs. What­ev­er moves soci­ety in this direc­tion is “pro­gres­sive”. Let’s get our con­cepts and ter­mi­nol­o­gy in order.

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