Category Archive 'Socialism'
24 May 2010

The Culture War Over the Economy

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Arthur C. Brooks, president of the America Enterprise Institute, has an excellent editorial on the current struggle over America’s future between the 30% comprising the American left and the rest of us.

America faces a new culture war.

This is not the culture war of the 1990s. It is not a fight over guns, gays or abortion. Those old battles have been eclipsed by a new struggle between two competing visions of the country’s future. In one, America will continue to be an exceptional nation organized around the principles of free enterprise — limited government, a reliance on entrepreneurship and rewards determined by market forces. In the other, America will move toward European-style statism grounded in expanding bureaucracies, a managed economy and large-scale income redistribution. These visions are not reconcilable. We must choose.

It is not at all clear which side will prevail. The forces of big government are entrenched and enjoy the full arsenal of the administration’s money and influence. Our leaders in Washington, aided by the unprecedented economic crisis of recent years and the panic it induced, have seized the moment to introduce breathtaking expansions of state power in huge swaths of the economy, from the health-care takeover to the financial regulatory bill that the Senate approved Thursday. If these forces continue to prevail, America will cease to be a free enterprise nation.

I call this a culture war because free enterprise has been integral to American culture from the beginning, and it still lies at the core of our history and character. “A wise and frugal government,” Thomas Jefferson declared in his first inaugural address in 1801, “which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government.” He later warned: “To take from one, because it is thought that his own industry and that of his fathers has acquired too much, in order to spare to others, who, or whose fathers, have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, the guarantee to every one of a free exercise of his industry and the fruits acquired by it.” In other words, beware government’s economic control, and woe betide the redistributors.

Now, as then, entrepreneurship can flourish only in a culture where individuals are willing to innovate and exert leadership; where people enjoy the rewards and face the consequences of their decisions; and where we can gamble the security of the status quo for a chance of future success.

Yet, in his commencement address at Arizona State University on May 13, 2009, President Obama warned against precisely such impulses: “You’re taught to chase after all the usual brass rings; you try to be on this “who’s who” list or that Top 100 list; you chase after the big money and you figure out how big your corner office is; you worry about whether you have a fancy enough title or a fancy enough car. That’s the message that’s sent each and every day, or has been in our culture for far too long — that through material possessions, through a ruthless competition pursued only on your own behalf — that’s how you will measure success.” Such ambition, he cautioned, “may lead you to compromise your values and your principles.”

I appreciate the sentiment that money does not buy happiness. But for the president of the United States to actively warn young adults away from economic ambition is remarkable. And he makes clear that he seeks to change our culture. …

[T]he real tipping point was the financial crisis, which began in 2008. The meltdown presented a golden opportunity for the 30 percent coalition to attack free enterprise openly and remake America in its own image.

And it seized that opportunity. While Republicans had no convincing explanation for the crisis, seemed responsible for it and had no obvious plans to fix it, the statists offered a full and compelling narrative. Ordinary Americans were not to blame for the financial collapse, nor was government. The real culprits were Wall Street and the Bush administration, which had gutted the regulatory system that was supposed to keep banks in line.

The solution was obvious: Vote for a new order to expand the powers of government to rein in the dangerous excesses of capitalism.

It was a convincing story. For a lot of panicky Americans, the prospect of a paternalistic government rescuing the nation from crisis seemed appealing as stock markets and home prices spiraled downward. According to this narrative, government was at fault in just one way: It wasn’t big enough. If only there had been more regulators watching the banks more closely, the case went, the economy wouldn’t have collapsed.

Yet in truth, it was government housing policy that was at the root of the crisis. Moreover, the financial sector — where the crisis began and where it has had the most serious impact — is already one of the most regulated parts of our economy. The chaos happened despite an extensive, intrusive regulatory framework, not because such a framework didn’t exist.

More government — including a super-empowered Federal Reserve, a consumer protection watchdog and greater state powers to wind down financial firms and police market risks — does not mean we will be safe. On the contrary, such changes would give us a false sense of security, especially when Washington, a primary culprit in the crisis, is creating and implementing the new rules.

The statist narrative also held that only massive deficit spending could restore economic growth. “If nothing is done, this recession could linger for years,” Obama warned a few days before taking office. “Only government can provide the short-term boost necessary to lift us from a recession this deep and severe. Only government can break the cycle that is crippling our economy.”

This proposition is as expensive as it is false. Recessions can and do end without the kind of stimulus we experienced, and attempts to shore up the economy with huge public spending often do little to improve matters and instead chain future generations with debt.

21 May 2010

“Big Fat Greek Funeral”

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Mark Steyn watches Greece arrive at the end point of the road Europe is well along, and on to which Obama has turned the United States.

From the Times of London: “The President of Greece warned last night that his country stood on the brink of the abyss after three people were killed when an anti-government mob set fire to the Athens bank where they worked.”

Almost right. They were not an “anti-government” mob, but a government mob, a mob comprised largely of civil servants. That they are highly uncivil and disinclined to serve should come as no surprise: they’re paid more and they retire earlier, and that’s how they want to keep it. So they’re objecting to austerity measures that would end, for example, the tradition of 14 monthly paycheques per annum. You read that right: the Greek public sector cannot be bound by anything so humdrum as temporal reality. So, when it was mooted that the “workers” might henceforth receive a mere 12 monthly paycheques per annum, they rioted. Their hapless victims—a man and two women—were a trio of clerks trapped in a bank when the mob set it alight and then obstructed emergency crews attempting to rescue them.

Unlovely as they are, the Greek rioters are the logical end point of the advanced social democratic state: not an oppressed underclass, but a pampered overclass, rioting in defence of its privileges and insisting on more subsidy, more benefits, more featherbedding, more government. …

Traditionally, a bank is a means by which old people with capital lend to young people with ideas. But the advanced democracies with their mountains of sovereign debt are in effect old people who’ve blown through their capital and are all out of ideas looking for young people flush enough to bail them out. And the idea that it might be time for the spendthrift geezers to change their ways butts up against their indestructible moral vanity. Last year, President Sarkozy said that the G20 summit provided “a once-in-a-lifetime opportunity to give capitalism a conscience.” European capitalism may have a conscience. It’s not clear it has a pulse. And, actually, when you’re burning Greek bank clerks to death in defence of your benefits, your “conscience” isn’t much in evidence, either.

Let us take it as read that Greece is an outlier. As waggish officials in Brussels and Strasbourg will tell you, it only snuck into the EU due to some sort of clerical error. It’s a cesspit of sloth and corruption even by Mediterranean standards. On my last brief visit, Athens was a visibly decrepit dump: a town with a handful of splendid ancient ruins surrounded by a multitude of hideous graffiti-covered contemporary ruins. If you were going to cut one “advanced” social democracy loose and watch it plunge into the abyss pour encourager les autres, it would be hard to devise a better candidate than Greece.

And yet and yet . . . riot-wracked Athens isn’t that much of an outlier. Greece’s 2010 budget deficit is 12.2 per cent of GDP; Ireland’s is 14.7. Greece’s debt is 125 per cent of GDP; Italy’s is 117 per cent. Greece’s 65-plus population will increase from 18 per cent in 2005 to 25 per cent in 2030; Spain’s will increase from 17 per cent to 25 per cent. As lazy, feckless, squalid, corrupt and violent as Greece undoubtedly is, it’s not that untypical. It’s where the rest of Europe’s headed, and Japan and North America shortly thereafter. About half the global economy is living beyond not only its means but its diminished number of children’s means.

Instead of addressing that basic fact, countries with government debt of 125 per cent of GDP are being “rescued” by countries with government debt of 80 per cent of GDP. Good luck with that. Alas, the world has deemed Greece “too big to fail,” even though in (what’s the word?) reality it’s too big not to fail. And the rest of us are too big not to follow in its path. …
Greece, wrote Theodore Dalrymple, is “a cradle not only of democracy but of democratic corruption”—of electorates who give their votes to leaders who bribe them with baubles purchased by borrowing against a future that can never pay it off. The future is now here, and the riots will spread.

18 May 2010

Nancy Pelosi, Patroness of the Arts

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Queen Nancy

Not looking forward to dramatically increased health care insurance premiums and soon-to-be rationed services? Americans can console themselves that their sacrifices make it possible for Lady Bountiful Nancy Pelosi to encourage other Americans to quit those day jobs and follow their bliss.

0:36 video

“We see it as an entrepreneurial bill,” Pelosi said, “a bill that says to someone, if you want to be creative and be a musician or whatever, you can leave your work, focus on your talent, your skill, your passion, your aspirations because you will have health care.”

Hat tip to Tabitha Hale.

16 May 2010

Meritocracy and Socialism

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Peggy Noonan reflects on the ironies of American meritocracy laboring mightily… and delivering an establishment full of socialists. And exactly how committed to socialism is the successful gamesman who has finally clambered all the way to the top by hard work, talent, and no small quantity of discretion and craft?

Personally, I tend to suspect that Socialism functions in much the same way for these people that Religion used to for earlier establishmentarians. One regularly attends services and is officially a member of the church, but it has not got a lot to do with one’s actual business life.

What is interesting about the nomination is that all the criticisms serious people have lobbed about so far are true. Yes, she is an ace Ivy League networker. Yes, career seems to have been all, which speaks of certain limits, at least of experience. She has been embraced by the media elite and all others who know they will be berated within 30 seconds by an irate passenger if they talk on a cellphone in the quiet car of the Washington-bound Acela. (If our media elite do not always seem upstanding, it is in part because every few weeks they can be seen bent over and whispering furtively into a train seat.) Ms. Kagan and her counterparts all started out 30 years ago trying to undo the establishment, and now they are the establishment. If you need any proof of this it is that in their essays and monographs they no longer mention “the establishment.”

Ms. Kagan’s nomination has also highlighted America’s ambivalence about what we have always said we wanted, a meritocracy. Work hard, be smart, rise. The result is an aristocracy of wired brainiacs, of highly focused, well-credentialed careerists. There’s something limited, even creepy, in all this ferocious drive, this well-applied brilliance. There’s a sense that everything is abstract to those who succeed in this world, that what they know of life is not grounded in hard experience but absorbed through screens—computer screens, movie screens, TV screens. Our focus on mere brains is creepy, too. Brains aren’t everything, heart and soul are something too. We do away with all the deadwood, but even dead trees have a place in the forest.

The ones on top now and in the future will be those who start off with the advantage not of great wealth but of the great class marker of the age: two parents who are together and who drive their children toward academic excellence. It isn’t “Mom and Dad had millions” anymore as much as “Mom and Dad made me do my homework, gave me emotional guidance, made sure I got to trombone lessons, and drove me to soccer.”

We know little of the inner workings of Ms. Kagan’s mind, her views and opinions, beliefs and stands. The blank-slate problem is the post-Robert Bork problem. The Senate Judiciary Committee in 1987 took everything Judge Bork had ever said or written, ripped it from context, wove it into a rope, and flung it across his shoulders like a hangman’s noose. Ambitious young lawyers watched and rethought their old assumption that it would help them in their rise to be interesting and quotable. In fact, they’d have to be bland and indecipherable. Court nominees are mysteries now.

Which raises a question: After 30 years of grimly enforced discretion, are you a mystery to yourself? If you spend a lifetime being a leftist or rightist thinker but censoring yourself and acting out, day by day, a bland and judicious pondering of all sides, will you, when you get your heart’s desire and reach the high court, rip off your suit like Superman in the phone booth and fully reveal who you are? Or, having played the part of the bland, vague centrist for so long, will you find that you have actually become a bland, vague centrist? One always wonders this with nominees now.

14 May 2010

Elena Kagan’s Philosophy

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She does not believe the First Amendment means what it says.

WSJ:

Mr. Obama noted that as Solicitor General her “passion for the law” had led her make this year’s landmark campaign finance case, Citizens United v. FEC, her first argument before the Supreme Court.

“Despite long odds of success, with most legal analysts believing the government was unlikely to prevail in this case,” Mr. Obama said, Elena Kagan took it on bravely. “I think it says a great deal about her commitment to protect our fundamental rights,” he continued, “because in a democracy, powerful interests must not be allowed to drown out the voices of ordinary citizens.”

She does not believe the Second Amendment means what it says.

Bloomberg:

Elena Kagan said as a U.S. Supreme Court law clerk in 1987 that she was “not sympathetic” toward a man who contended that his constitutional rights were violated when he was convicted for carrying an unlicensed pistol. …

The man’s “sole contention is that the District of Columbia’s firearms statutes violate his constitutional right to ‘keep and bear arms,’” Kagan wrote. “I’m not sympathetic.”

But her recently unearthed college thesis shows that she once thought a lot more highly of socialism.

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In our own times, a coherent socialist movement is nowhere to be found in the United States. Americans are more likely to speak of a golden past than of a golden future, of capitalism’s glories than of socialism’s greatness.

Why, in a society by no means perfect, has a radical party never attained the status of a major political force? Why, in particular, did the socialist movement never become an alternative to the nation’s established parties? Through its own internal feuding, then, the SP [Socialist Party] exhausted itself…

The story is a sad a but also a chastening one for those who, more than half a century after socialism’s decline, still wish to change America. … In unity lies their only hope.”

She is the perfect liberal candidate.

13 May 2010

Obama’s Marxist Rationer-in-Chief

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His Wikipedia bio describes him as a “marxist.” He is a Harvard professor and a technocrat with his own health care think tank. Naturally, Donald Berwick believes in central planning by experts like himself, and Barack Obama has nominated him for a post which will effectively give him the ability to impose a regime of treatments and protocols prescribed by a committee on every doctor and hospital in the United States. The new regime, of course, will have to be designed to supply services for free on a universal basis, so rationing and cost control will inevitably play a very key role in all the planning, but that’s just fine, Dr. Berwick tells us in the video below: “Excellent health care is by definition redistributional.”

Philip Klein, in the American Spectator, has details.

Obama’s choice to head the Centers for Medicare and Medicaid Services, Donald Berwick, [is] a Harvard professor with a self-professed love affair with Britain’s socialized health care system. In his writings and speeches, Berwick has defended government rationing and advocated centralized budget caps on health care spending.

“Cynics beware, I am romantic about the (British) National Health Service; I love it,” Berwick said in a July 2008 speech at England’s Wembley stadium. “All I need to do to rediscover the romance is to look at health care in my own country.”

While Berwick would not have the authority to impose a British health care system on the United States in one fell swoop, as head of CMS, he would be running both Medicare and Medicaid. Given that the two programs alone account for more than one out of every three dollars spent on health care in America (all government programs combined account for 47 percent), private players tend to follow CMS’s lead. Berwick himself has made this point.

“(G)overnment is an extraordinarily important player in the American health care scene, and it has inescapable duties with respect to improvement of care, or we’re not going to get improved care,” he said in a January 2005 interview with Health Affairs. “Government remains a major purchaser.… So as CMS goes and as Medicaid goes, so goes the system.”

There are two basic visions for how to contain the growth of health care spending. The free market approach would give individuals control over their health care dollars, with the idea that it would encourage more shopping that will drive down costs and increase quality as has happened in every other aspect of the consumer-based economy. But the other approach, employed by nations such as Britain, is to have the government ration care to meet a global budget.

President Obama rejected the market-based approach, and sought to drastically expand insurance coverage while reducing health care costs. But according to a report by CMS’s chief actuary, the new law will actually increase health care costs. That leaves rationing of care based on a bureaucratic notion of the common good as the remaining option for containing skyrocketing spending, and it’s an outcome that Berwick himself once predicted would be necessary to achieve universal coverage.

“(T)he Holy Grail of universal coverage in the United States may remain out of reach unless, through rational collective action overriding some individual self-interest, we can reduce per capita costs,” Berwick wrote in an article for Health Affairs he co-authored in 2008.

He went on to write that, “The hallmarks of proper financial management in a system… are government policies, purchasing contracts, or market mechanisms that lead to a cap on total spending, with strictly limited year-on-year growth targets.”

On a number of occasions, Berwick has praised Britain’s National Institute for Clinical Excellence (NICE), a body of experts that advises the government-run health care system on how to allocate medical spending based on cost-benefit analysis. Among other decisions, they have ruled against the use of cancer-treating drugs and put a dollar value on the final six months of human life.

“NICE is extremely effective and a conscientious, valuable, and — importantly — knowledge-building system,” Berwick said in an interview last June in Biotechnology Healthcare. “The fact that it’s a bogeyman in this country is a political fact, not a technical one.”

The national health care law that President Obama signed in March will greatly expand the role of CMS by adding an estimated 15 million beneficiaries to Medicaid. In addition, the law contains a number of initiatives, to be spearheaded by the Secretary of Health and Human Services in conjunction with the head of CMS, to provide incentive-based pay to doctors and hospitals based on performance. This builds on the comparative effectiveness research provision of last year’s economic stimulus package. While none of these measures will have the same sway as NICE does in Britain, taken together, they will move America in a NICE-like direction, especially with Berwick at the helm.

2:15 video
“Any health care funding plan that is just equitable civilized and humane must, must redistribute wealth from the richer among us to the poorer and the less fortunate. Excellent health care is by definition redistributional.” – Donald Berwick

30 Apr 2010

“Decline is a Choice”

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Mark Steyn argues that it can happen here, that the ideology of the left can alter the national character and turn a nation of self reliant individualists into whining clients of a socialist nanny state in terminal decline, and Barack Obama is here to prove it.

[W]hat are we to make of the British? They were on the right side of all the great conflicts of the last century; and they have been, in the scales of history, a force for good in the world. Even as their colonies advanced to independence, they retained the English language and English legal system, not to mention cricket and all kinds of other cultural ties. And even in imperial retreat, there is no rational basis for late-20th-century Britain’s conclusion that it had no future other than as an outlying province of a centralized Euro nanny state dominated by nations whose political, legal, and cultural traditions are entirely alien to its own. The embrace of such a fate is a psychological condition, not an economic one.

Is America set for decline? It’s been a grand run. The country’s been the leading economic power since it overtook Britain in the 1880s. That’s impressive. Nevertheless, over the course of that century and a quarter, Detroit went from the world’s industrial powerhouse to an urban wasteland, and the once-golden state of California atrophied into a land of government run by the government for the government. What happens when the policies that brought ruin to Detroit and sclerosis to California become the basis for the nation at large? Strictly on the numbers, the United States is in the express lane to Declinistan: unsustainable entitlements, the remorseless governmentalization of the economy and individual liberty, and a centralization of power that will cripple a nation of this size. Decline is the way to bet. But what will ensure it is if the American people accept decline as a price worth paying for European social democracy.

Is that so hard to imagine? Every time I retail the latest indignity imposed upon the “citizen” by some or other Continental apparatchik, I receive e-mails from the heartland pointing out, with much reference to the Second Amendment, that it couldn’t happen here because Americans aren’t Euro-weenies. But nor were Euro-weenies once upon a time. Hayek’s greatest insight in The Road to Serfdom is psychological: “There is one aspect of the change in moral values brought about by the advance of collectivism which at the present time provides special food for thought,” he wrote with an immigrant’s eye on the Britain of 1944. “It is that the virtues which are held less and less in esteem and which consequently become rarer are precisely those on which the British people justly prided themselves and in which they were generally agreed to excel. The virtues possessed by Anglo-Saxons in a higher degree than most other people, excepting only a few of the smaller nations, like the Swiss and the Dutch, were independence and self-reliance, individual initiative and local responsibility, the successful reliance on voluntary activity, noninterference with one’s neighbor and tolerance of the different and queer, respect for custom and tradition, and a healthy suspicion of power and authority.” Two-thirds of a century on, almost every item on the list has been abandoned, from “independence and self-reliance” (40 percent of people receive state handouts) to “a healthy suspicion of power and authority” — the reflex response now to almost any passing inconvenience is to demand the government “do something,” the cost to individual liberty be damned. American exceptionalism would have to be awfully exceptional to suffer a similar expansion of government and not witness, in enough of the populace, the same descent into dependency and fatalism. As Europe demonstrates, a determined state can change the character of a people in the space of a generation or two. Look at what the Great Society did to the black family and imagine it applied to the general population: That’s what happened in Britain. …

In the modern era, the two halves of “the West” form a mirror image. “The Old World” has thousand-year-old churches and medieval street plans and ancient hedgerows but has been distressingly susceptible to every insane political fad, from Communism to Fascism to European Union. “The New World” has a superficial novelty — you can have your macchiato tweeted directly to your iPod — but underneath the surface noise it has remained truer to old political ideas than “the Old World” ever has. Economic dynamism and political continuity seem far more central to America’s sense of itself than they are to most nations’. Which is why it’s easier to contemplate Spain or Germany as a backwater than America. In a fundamental sense, an America in eclipse would no longer be America.

But, as Charles Krauthammer said recently, “decline is a choice.” The Democrats are offering it to the American people, and a certain proportion of them seem minded to accept. Enough to make decline inevitable? To return to the young schoolboy on his uncle’s shoulders watching the Queen-Empress’s jubilee, in the words of Arnold Toynbee: “Civilizations die from suicide, not from murder.”

Hat tip to Karen L. Myers.

24 Apr 2010

Is Obama a Socialist?

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Jonah Goldberg addresses in a serious essay the commonly heard debate on whether terms like Marxist and Socialist may be accurately applied to Barack Obama.

[I]s it correct, as an objective matter, to call Obama’s agenda “socialist”? That depends on what one means by socialism. The term has so many associations and has been used to describe so many divergent political and economic approaches that the only meaning sure to garner consensus is an assertive statism applied in the larger cause of “equality,” usually through redistributive economic policies that involve a bias toward taking an intrusive and domineering role in the workings of the private sector. One might also apply another yardstick: an ambivalence, even antipathy, for democracy when democracy proves inconvenient.1 With this understanding as a vague guideline, the answer is certainly, Yes, Obama’s agenda is socialist in a broad sense. The Obama administration may not have planned on seizing the means of automobile production or asserting managerial control over Wall Street. But when faced with the choice, it did both. Obama did explicitly plan on imposing a massive restructuring of one-sixth of the U.S. economy through the use of state fiat—and he is beginning to do precisely that.

Obama has, on numerous occasions, placed himself within the progressive intellectual and political tradition going back to Theodore Roosevelt and running through Franklin Roosevelt. With a few exceptions, the progressive political agenda has always been to argue for piecemeal reforms, not instant transformative change—but reforms that always expand the size, scope, and authority of the state. This approach has numerous benefits. For starters, it’s more realistic tactically. By concentrating on the notion of reform rather than revolution, progressives can work to attract both ideologues of the Left and moderates at the same time. This allows moderates to be seduced by their own rhetoric about the virtues of a specific reform as an end in itself. Meanwhile, more sophisticated ideologues understand that they are supporting a camel’s-nose strategy. In an unguarded moment during the health-care debate in 2009, Representative Barney Frank confessed that he saw the “public option,” the supposedly limited program that would have given the federal government a direct role as an insurer in competition with private insurers, as merely a way station to a single-payer system in which the government is the sole provider of health care. In his September 2009 joint-session address to Congress on health care, President Obama insisted that “I am not the first President to take up this cause, but I am determined to be the last.” Six months later, when he got the health-care bill he wanted, he insisted that it was only a critical “first step” to overhauling the system. Arthur Schlesinger Jr. was one of the relatively few self-described moderates who both understood the tactic and supported it. “There seems no inherent obstacle,” Schlesinger wrote in 1947, “to the gradual advance of socialism in the United States through a series of New Deals.”

Goldberg places Obama decidedly outside the Revolutionary Marxist “hot socialism” tradition and firmly in the Fabian tradition of incremental, gradual, “first step” subversion of liberty. Obama adroitly dismisses accuses of his being a socialist as evidence of his opponents’ ideological blindness. He is merely a pragmatist, committed to “solving problems.”

But whether one identifies Obama as a social-ist instead of a socialist, a neosocialist, or merely a progressive, there can be no doubt that Barack Obama’s political agenda is as thoroughly committed to expanding the regulatory authority and share of the economy controlled by government as the Romanovs were to the gathering of the Russian lands.

Denying that you are an ideologue is not the same thing as proving the point. And certainly Obama’s insistence that ideology is something only his critics suffer from is no defense when stacked against the evidence of his actions. The “pragmatic” Obama is only interested in “what works” as long as “what works” involves a significantly expanded role for government. In this sense, Obama is a practitioner of the Third Way, the governing approach most successfully trumpeted by Blair, who claimed to have found a “third way” that rejected the false premises of both Left and Right and thereby located a “smarter” approach to expanding government. The powerful appeal of this idea lies in the fact that it sounds as if its adherents have rejected ideological dogmatism and gone beyond those “false choices.” Thus, a leader can both provide health care to 32 million people and save money, or, as Obama likes to say, “bend the cost curve down.” But in not choosing, Obama is choosing. He is choosing the path of government control, which is what the Third Way inevitably does and is intended to do.

Still, the question remains, What do we call Obama’s “social-ism”? John Judis’s formulation—“liberal socialism”—is perfectly serviceable, and so is “social democracy” or, for that matter, simply “progressivism.” My own, perhaps too playful, suggestion would be neosocialism. …

In many respects, Barack Obama’s neo-socialism is neoconservatism’s mirror image. Openly committed to ending the Reagan era, Obama is a firm believer in the power of government to extend its scope and grasp far deeper into society. In much the same way that neoconservatives accepted a realistic and limited role for the government, Obama tolerates a limited and realistic role for the market: its wealth is necessary for the continuation and expansion of the welfare state and social justice. While neoconservatism erred on the side of trusting the nongovernmental sphere—mediating institutions like markets, civil society, and the family—neosocialism gives the benefit of the doubt to government. Whereas neoconservatism was inherently skeptical of the ability of social planners to repeal the law of unintended consequences, Obama’s ideal is to leave social policy in their hands and to bemoan the interference of the merely political.

“I would have loved nothing better than to simply come up with some very elegant, academically approved approach to health care, and didn’t have any kinds of legislative fingerprints on it, and just go ahead and have that passed,” he told CBS’s Katie Couric. “But that’s not how it works in our democracy. Unfortunately, what we end up having to do is to do a lot of negotiations with a lot of different people.”

Whereas Ronald Reagan saw the answers to our problems in the private sphere (“in this present crisis, government is not the solution to our problem; government is the problem”), Obama seeks to expand confidence in, and reliance on, government wherever and whenever he can, albeit within the confines of a generally Center-Right nation and the “unfortunate” demands of democracy.

As with Webb’s Fabian socialism, one will never be able to say of Obama’s developing doctrine, “now socialism has arrived.” On the night the House of Representatives passed the health-care bill, Obama said, “This legislation will not fix everything that ails our health care system. But it moves us decisively in the right direction.” Then, speaking specifically of another vote to be taken in the Senate but also cleverly to those not yet satisfied with what had been achieved, he added, “Now, as momentous as this day is, it’s not the end of this journey.”

Under Obama’s neosocialism, that journey will be endless, and no matter how far down the road toward socialism we go, he will always be there to tell the increasingly beleaguered marchers that we have only taken a “critical first step.”

Read the whole thing.

21 Apr 2010

Cartoon of the Week

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Michael Ramirez cartoon

Hat tip to John Hinderaker via the News Junkie.

14 Apr 2010

America: Land of the “Mostly Free”

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Last week, the Heritage Foundation issued its annual Index of Economic Freedom. The United States’ ranking fell dramatically from 80.7 in 2009 to 78 in 2010, for the first time declining out of the free category into the “mostly free.”

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Bruce Bartlett, in Forbes, says what liberals say: We’re so much wealthier today that we can afford to pay our taxes and the costs of regulations.

Stephen M. Bainbridge responds with some indignation, rightly characterizing Bartlett’s argument as proposing “trading our birthright of freedom for an iPad.”

[I]f I get the gist of this column correctly, he’s arguing that I should be happy about bigger government and higher taxes because I get to buy an iPad . …

I’m happy to acknowledge that the free market economy has produced profound blessings. But I’m not willing to swap my birthright of economic freedom for a “PDA” (how technologically quaint). Nor am I willing to stand by without protest while ever larger chunks of the American economy are turned over to the Obamabots–the very definition of “Social Engineers, who seek to adjust mankind to conform with scientific utopias.” After all, if we rely today on government to provide us with bread and circuses, what will we rely on government to provide tomorrow?

At bottom, my problem with Bartlett’s argument that we can afford higher taxes and greater regulation is that regulation and taxation are like the story about how to boil a frog. If a frog is placed in boiling water, it will jump out, but if it is placed in cold water that is slowly heated, it will not perceive the danger and will be cooked to death.

In the United States today, the thermostat is still set pretty low. The Heritage Foundation has warned us, however, that the Obamabots have turned up the heat a tad. It is the proper function of conservatives to resist and to seek to turn down the heat.

09 Apr 2010

Europeanizing America

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When the arguments got down to the nitty-gritty on the health care bill, the liberals I know were prone to admit that what they really most cared about was completing the European-style welfare state. Lacking a health insurance safety net simply offended their sense of how things should be. It didn’t matter to my liberal friends that the poor actually could get treatment. They wanted systematized, state-organized entitlement.

Interestingly, my liberal friends felt sure that the costs would not be significant.

Jonah Goldberg offers the argument, which I think we are going to see repeated and elaborated, that the cost of socializing the United States is liable to go far beyond high domestic taxes and less US economic growth, and the full cost may seriously impact Europe, too.

[L]iberals insist conservatives are wrong to think that Europeanizing America will necessarily come at any significant cost. New York Times columnist and Princeton economist Paul Krugman says that in exchange for only a tiny bit less growth, Europeans buy a whole lot of security and comfort. …

I think the debate misses something. We can’t become Europe unless someone else is willing to become America.

Look at it this way. My 7 year-old daughter has a great lifestyle. She has all of her clothes and food bought for her. She goes on great vacations. She has plenty of leisure time. A day doesn’t go by where I don’t look at her and feel envious at how good she’s got it compared to me. But here’s the problem: If I decide to live like her, who’s going to take my place?

Europe is a free-rider. It can only afford to be Europe because we can afford to be America.

The most obvious and most cited illustration of this fact is national defense. Europe’s defense budgets have been miniscule because Europeans can count on Uncle Sam to protect them. Britain, which has the most credible military in NATO after ours, has funded its butter account with its gun account. As Mark Steyn recently noted in National Review, from 1951 to 1997 the share of British government expenditure on defense fell from 24 percent to 7 percent, while the share on health and welfare increased from 22 percent to 53 percent. And that was before New Labor started rolling back Thatcherism. If America Europeanizes, who’s going to protect Europe? Who’s going to keep the sea lanes open? Who’s going to contain Iran? China? OK, maybe. But then who’s going to contain China?

But that’s not the only way in which Europeans are free-riders. America invents a lot of stuff. When was the last time you used a Portuguese electronic device? How often does Europe come out with a breakthrough drug? Not often, and when they do, it’s usually because companies like Novartis and GlaxoSmithKline increasingly conduct their research here. Indeed, the top five U.S. hospitals conduct more clinical trials than all the hospitals in any other single country combined. We nearly monopolize the Nobel Prize in medicine, and we create stuff at a rate Europe hasn’t seen since da Vinci was in his workshop.

If America truly Europeanized, where would the innovations come from?

03 Apr 2010

Health Care Bill About More Than Health Care

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Byron York points to statements by supporters identifying the ideological motivation behind supposed “reform.”

It hasn’t attracted much notice, but recently some prominent advocates of Obamacare have spoken more frankly than ever before about why they supported a national health care makeover. It wasn’t just about making insurance more affordable. It wasn’t just about bending the cost curve. It wasn’t just about cutting the federal deficit. It was about redistributing wealth.

Health reform is “an income shift,” Democratic Sen. Max Baucus said on March 25. “It is a shift, a leveling, to help lower income, middle income Americans.”

In his halting, jumbled style, Baucus explained that in recent years “the maldistribution of income in America has gone up way too much, the wealthy are getting way, way too wealthy, and the middle income class is left behind.” The new health care legislation, Baucus promised, “will have the effect of addressing that maldistribution of income in America.”

At about the same time, Howard Dean, the former Democratic National Committee chairman and presidential candidate, said the health bill was needed to correct economic inequities. “The question is, in a democracy, what is the right balance between those at the top … and those at the bottom?” Dean said during an appearance on CNBC. “When it gets out of whack, as it did in the 1920s, and it has now, you need to do some redistribution. This is a form of redistribution.”

Summing things up in the New York Times, the liberal economics columnist David Leonhardt called Obamacare “the federal government’s biggest attack on economic inequality since inequality began rising more than three decades ago.”

Now they tell us. For many opponents of the new legislation, the statements confirmed a nagging suspicion that for Barack Obama and Democrats in Congress, the health fight was about more than just insurance — that redistribution played a significant, if largely unspoken, part in the drive for national health care.

Read more at the Washington Examiner.

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