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Tuesday, April 23
The Indiana Daily Student

opinion

COLUMN: Socialism vs. capitalism is a false binary

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The dialogue in the country since the rise of more left-leaning politicians has been approaching candidates and their platforms as rigidly socialist versus capitalist when this is the wrong way to be viewing politics in the context of political and economic reform.

With more progressive politicians such as Sen. Bernie Sanders, I-Vt., and members of the Justice Democrats caucus such as U.S. Rep. Alexandria Ocasio-Cortez, D-N.Y., many people are asking themselves what things like democratic socialism are and whether socialism is taking over the political left.

Although politicians like Sanders claim they are democratic socialists, it is quite apparent the wave of “further left” voters and politicians are actually more akin to social democrats rather than socialism.

Democratic socialism is postcapitalist and pursues communal ownership of land and capital within a democratic system. Social democracy seeks to work within the capitalist system and can be referred to as welfare statism.

Social democrats are in favor of a mixed economy, meaning a capitalist economy but with some socialized institutions as well. They want equality of opportunity, but not necessarily equality of outcome like democratic socialism.

This is the Scandinavian model that the democratic socialists like Sanders push for. Social democracy is not socialism, it is capitalism with socialist elements.

Although now it seems that democratic socialism in the U.S. is synonymous with social democracy in terms of ideology, it is important not to conflate the progressive left’s platform with flat out socialism because it is simply not true.

Political definitions change and they can be misleading, so it is important to understand a politician’s platform before jumping to the conclusion that they’re a “socialist.”

The debate should not be limited to distinctly capitalism or socialism, but as Kevin Williamson described in the National Review: “The real debate concerns the structure, balance, and integration of the elements that make up our political economy.”

In a mixed economy like the U.S. it is important to note that socialist and capitalist elements work together to find a balance of competition and social safety nets.

There are certain areas of the economy that need to be socialized, such as police, but there are also others that should be left to the free market to spur competition and diversity, like designing shoes.

A key part of recognizing what markets should be more socialist and what should be more capitalist is knowing the incentive structure. For example, markets such as health care have a corrupting profit-driven incentive structure that if left entirely to the free market would make it near impossible to find quality, affordable health care for everyone in society. Therefore, the health care market needs to be more socialized.

So, when progressives call for a "Medicare for All" system to be implemented, that is not to say they are “socialists,” but really it is to say they understand the corrupting nature of the profit motive in that particular market and thus think it should be socialized.

In my opinion, I think it was a mistake on the part of Sanders and other self-proclaimed “democratic socialists” on the left to call themselves democratic socialists at all.

It is not only not true according to their political beliefs, but it has also left them open to constant smearing by political opponents, giving them the opportunity to unfairly say people like Sanders are true socialists and are calling for a postcapitalist society.

Nevertheless, social democracy has a very broad appeal to both the left and the right and regardless of what left progressives call themselves, I think their message will resonate throughout the country.

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