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About That Democratic Socialism Thing

The candidacy of Bernie Sanders, a “democratic socialist”, for the US presidency has produced an unprecedented barrage of discussion in the American media about just what is this thing called “socialism”. Most of the discussion centers around the question of government ownership and control of the economy versus private ownership and control. This is, of course, a very old question; the meat and potatoes of the Cold War ideological competition.

What’s markedly different now is that a few centuries of uninhibited free enterprise have finally laid painfully bare the basic anti-social nature of capitalism, forcing many of even the most committed true believers to concede the inherent harm the system brings to the lives of all but the richest.

But regardless of what the intellects of these true believers tell them, they still find it very difficult emotionally to completely cut the umbilical cord to the system they were carefully raised to place the greatest of faith in. Thus, they may finally concede that we have to eliminate, or at least strictly minimize, the role of the profit motive in health care and education and maybe one or two other indispensable social needs, but they insist that the government should should keep its bureaucratic hands off everything else; they favor as much decentralization as possible.

The most commonly proposed alternative to both government or private control is worker-owned cooperatives or publicly owned enterprises managed by workers and consumer representatives. Sanders has expressed his support for worker-owned cooperatives.

There is much to be said about such systems, but the problem I find is that they will still operate within a capitalist society, which means competition, survival of the fittest; which means that if you can’t sell more than your competitors, if you can’t make a sufficient net profit on your sales, you will likely be forced to go out of business; and to prevent such a fate, at some point you may very well be forced to do illegal or immoral things against the public; which means back to the present.

You cannot follow the mass media without being confronted every day with story after story of one corporation or another trying to swindle the public in one way or another; the latest egregious case being that of the much revered Volkswagen, recently revealed to have manipulated the measurement of the car’s pollution emission. The fact that half of the company’s Supervisory Board – responsible for monitoring the Management and approving important corporate decisions – consists of employee representatives elected by the employees did not prevent this egregious fraud; the company is still obliged to strive to maximize profit and the firm’s stock-market value. It’s the nature of the corporate beast within a capitalist jungle.

Only removal of the profit motive will correct such behavior, and also keep us from drowning in a sea of advertising and my phone ringing several times each day to sell me something I don’t need and which may not even exist.

The market. How can we determine the proper value, the proper price, of goods and services without “the magic of the marketplace”? Let’s look at something most people have to pay for – rent. Who or what designed this system where in 2015 11.8 million households in the US are paying more than 50 percent of their income to keep a roof over their head, while rent is considered “affordable” if it totals some 30 percent or less of one’s income. What is the sense of this? It causes more hardship than any other expense people are confronted with; all kinds of important needs go unmet because of the obligation to pay a huge amount for rent each month; it is the main cause of homelessness. Who benefits from it other than the landlords? What is magical about that?

Above and beyond any other consideration, there is climate change; i.e., survival of the planet, the quality of our lives. What keeps corporations from modifying their behavior so as to be kinder to our environment? It is of course the good old “bottom line” again. What can we do to convince the corporations to consistently behave like good citizens? Nothing that hasn’t already been tried and failed. Except one thing. Unmentionable in a capitalist society. Nationalization. There, I said it. Now I’ll be getting letters damning me as an “Old Stalinist”.

But nationalization is not a panacea either, at least for the environment. There’s the greatest single source of environmental damage in the world – The United States military. And it’s already been nationalized. But doing away with private corporations will reduce the drive toward imperialism sufficiently that before long the need for a military will fade away and we can live like Costa Rica. If you think that would put the United States in danger of attack, please tell me who would attack, and why.

Most Americans, like other developed peoples, worship the capitalism they were raised with. But do they? See the chapter in my book Rogue State: A Guide to the World’s Only Superpower: “The United States invades, bombs, and kills for it but do Americans really believe in free enterprise?” Written in 2000/2005, the examples given in the chapter may need some updating, but the ideas expressed are as valid as ever.

Nationalization, hand-in-hand with a planned society, would of course not preclude elections. On the contrary, we’d have elections not ruled by money. What a breath of fresh air. Professor Cornel West has suggested that it’s become difficult to even imagine what a free and democratic society, without great concentrations of corporate power, would look like, or how it would operate.

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