Is the US becomming a socialist state?

By: ispeculatornew
Date posted: 10.24.2008 (4:00 am) | Write a Comment  (13 Comments)

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Honestly, this is one of those lines that we hear every once in a while and always creates a big smile for me… Socialist? Really?

What is socialism? From Wikipedia: “Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the means of production and distribution of goods, and the creation of an egalitarian society”. There are less and less societies that qualify for a socialist state, especially since the collapse of the Russian communist movement in the late 80s.

Having said that, I think it’s impossible for even the strongest believers in the capitalism to argue against a limited role of the government in the economy. Depending on the country, many services such as education, health services, the army, energy, etc are often managed in some way or another by the government. Compared to almost any country on earth, the US is as capitalist as you can get. Most “developed countries” have a social solution for health care, while the Americans still believe in using the private sector. Of course, that has positive aspects but also drawbacks that could be discussed for many hours…

But anyway, back to the subject. The recent intervention of 700$Billions of the US government as well as the numerous other actions by the Fed and other central banks of the world is certainly an interesting argument for all citizens asking for more regulation. And while I agree that more regulation is desirable, I think it’s also very important to keep this in perspective. To say that the government should never act is laughable, especially these days.

But too much regulation and intervention by the US government would risk having a much greater impact, to reduce innocation in the US financial system. Already, the US has been losing ground to other financial centers because of added regulations. For example, the laws added following the Enron affair have made it very expensive for companies to have a listing in a US stock market. Sure, in most cases they still will go through the trouble. But in recent yars, London for example has been getting a much bigger share of the IPO’s and thus the business.

With the world economy and the financial sector so digital nowadays, it would be a lot easier to lose important market share to other centers such as London, Dubai, Hong Kong, Singapore.

Is more regulation justified? Absolutely… But let’s not overreact and let’s think this through…

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13 Comments

  1. Pingback by The Financial Blogger | Financial Ramblings — October 25, 2008 @ 5:02 am

    […] The intelligent Speculator is asking if the US becoming a socialist state? […]

  2. Comment by fred lapides — October 25, 2008 @ 7:31 am

    When we have a government that gives taxpayer’s money for supports to Oil, Farming etc…then we do not have a “free market.” When the govt bails out the auto industry etc then we do not have a “free market.”

  3. Comment by Bob — October 28, 2008 @ 4:10 pm

    Approximately 50% of our produce is seized and redistributed by the state. No principle still ascribed to is stopping that needle from moving to 60%, 75%, or even 100%. Contrast that with our nations origins when 0% of our produce was seized by the state, unless we were dealing internationally. Bit of a difference?

    “To say that the government should never act is laughable, especially these days.”

    Oh yes. The “these days” argument. The “modern civilization” argument. The “nothing that has happened before applies to us” argument. The “of course we couldn’t possibly…” argument. Bull. You can either *treat* all people equally, or you can attempt to *make* them equal. The same choice that has existed for thousands of years. You cannot choose both; they are utterly opposed to one another. Socialism has the latter as its goal. Our nation was founded with the former as its goal. Perhaps “socialism” isn’t the best term to describe the specific governmental methods in play, but that’s just word games.

  4. Pingback by The Financial Blogger | Did we hit the bottom? — October 29, 2008 @ 3:53 am

    […] months is the involvement of the US government in the economy. Many have been talking about a socialist state, but even the Republican nominee John McCain who has been talking against the notion is in favour […]

  5. […] Is The Us Becomming A Socialist State? […]

  6. Comment by Uncle B — December 30, 2008 @ 12:27 pm

    It really doesn’t matter what the U.S. is becoming! In light of the Asian effort we are soon to become a third world entity anyway! China alone has more post-grad students enrolled than the U.S. has high school students! Buick Lesabres and Chev cavaliers are being built in Shanghai as we speak, by peasant girls earning eighty five cents and hour and taught by GM! Radiologists in India are sent by satellite communications x-rays and MRI’s and over-night they interpret them for one tenth the cost of their U.S. counterparts! Honda, Hyundai, Subaru and others buy parts made by fleets of in-factory-dwelling, 12 hour a day, seven day a week working girls – The American counterpart cannot compete! The American infrastructure is too expensive and requires workers to make $18 to $20.00 an hour to support! The middle class in America is about to disappear into the smoke and rumblings of the impending (GRD) great republican depression – itself a manufacture of George Bush and his neo-con co-conspirators unwittingly or otherwise! The American sawbuck is worth less each day, the Euro is overtaking it, and whole countries are pulling away from America! A socialist America, no, America and capitalism in the death throws, probably! The end of life as most Americans know it – guaranteed! We are in for Change!

  7. Comment by PJV — April 3, 2009 @ 3:18 pm

    Uncle B you have most of it right except you need to replace George Bush with Barak Hussein Obama and his ultra left crew (Clinton, Pelosi, Kennedy, et al). It was Clinton’s administration that got the ball rolling with the the real estate collapse it just happened to end up in Bush’s court. Obama now will spend us into oblivion and complete the work. How is your Chinese?

  8. Comment by Ben — June 3, 2009 @ 9:13 pm

    uncle b, your post is as depressing as ever. sadly I dont think it is all that far off.

    However this is no left and there is no right. it is all the same BS. if you look at Obama he is the same as Bush who is the same as Clinton et al. They will all do the same thing, grow the government, which is fundamentally the cause of all (well most, they’re workin on it) of our problems.

  9. Comment by Sam — May 20, 2010 @ 9:49 pm

    I am 37, a full time student (accounting) and currently studying macro economics. I am a former soldier and boy scout. I say all that to temper the reactions to my following statements. I fear socialism, as it is portrayed to us in America. I also believe we will, within 10-20 years be like china, a socio-capitalist state. Will that be so bad? I have meditated for months on this. We will still live, love and die. Most of europe is ‘socialist’ in nature. Their tax rates are similar to our, if you include the federal,state and local taxes we pay. I am a nurse also, my wife also is one. I am leaving nursing becasue I hate it. But folks, we do need a better healthcare system. Healthy citizens are productive citizens. The poor in our country do have no safety net. My parents cannot read, and the most they made, both their incomes combines, has always been less that 30K per year. I got to where I am at by selling myself to uncle sam and being in the army. When I graduate with my masters in 2014, I will be saddled with debt of student loans. Is that good for America? How can we have consumerism when our graduates are saddled in debt.
    What I am saying is this, yes we do need free healthcare. There will always be the private avenue for those willing to pay. Does this 800 lb gorilla the democrats have created the solution? Hardly. But our current system is flawed. We have our citizens held back by circumstance. The poor do need a safety net. Students do need a break. And the solution is a bit of socialism. And we are already engaging in socialism, and have been. It is called welfare, unemployment insurance, social security, WIC, health departments, public education, folks we already are there. Is your life so bad? No one will come drag you from your house and send you to a gulag. I believed that once. That isn’t going to happen. I am a republican and you know what, both parties have failed the nation and her people. We are headed for a socio-capitalistic state. We can hide in our bunkers, or we can activley participate and make it into a GOOD state. We cannot ignore the poor, we cannot stifle growth with needless debt. I once lived in fear of socialism. I have reseervations, but no more fear.

  10. Comment by Re — March 25, 2011 @ 1:15 pm

    Sam… you said it fine !. The Us has been socialist for decades.

  11. Comment by IS — March 27, 2011 @ 9:21 am

    @Re – So what does that make Europe?:)

  12. Comment by tony — September 24, 2012 @ 8:09 pm

    sam, you are either stupid blind or have given up. wait…you were military (government dependent), and full time student (government dependent). of course you are ok with socialism. you believe everyone (…ahem… except the working people!!!!) should get a ride. TRY BEING A WORKING PEOPLE!!!! you get nothing from the government , and they take what theyb want from you to give to ….guess who????…. SAM!!!!…

    p.S i WAS MILITARY…FAMILY WORKED FOR GOVERNMENT
    WHAT DO THEY SPEND FOR A 20 DOLLAR PIECE OF EQUIPTMENT?….THATS RIGHT….800 DOLLARS…THATS TAX DOLLARS THAT THEY TAKE FROM WORKING PEOPLE.

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