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Barack Obama and the Meaning of Socialism PDF Print E-mail

The political airwaves recently have been filled with charges and counter-charges about whether or not the Democratic Party presidential candidate, Barack Obama, is a socialist.

 

The Wall Street Journal and Investors Business Daily both ran articles on Tuesday, October 28, quoting from an interview that Obama gave with Chicago public radio station WBEZ in September 2001.

 

Looking back at the achievements of the Civil Rights Movement, Obama said that the Supreme Court had focused on “court-imposed remedies regarding segregation and voting rights.” But, he went on, “the Supreme Court never ventured into the issues of redistribution of wealth and sort of more basic issues of political and economic justice in society.”

 

The Supreme Court, Obama went on, “didn’t break free from the essential constraints that were placed by the Founding Fathers in the Constitution, at least as it has been interpreted.” And, thus, the Court “wasn’t that radical.”

 

At the same time, the Civil Rights Movement never “put together the actual coalitions of power through which you bring about redistributive change.”

 

During the heyday of communism, socialist governments in the Soviet bloc often formally called their systems “People’s Republics.” For instance, South Korea is the “Republic of Korea.” North Korea is the “Democratic People’s Republic of Korea.”

 

Why the difference? Because in the eyes of socialists and communists western democracies were not really “free.” They argued that what prevailed in the West were false “bourgeois freedoms” – freedom of speech and press, freedom of religion, freedom of assembly and association, and freedom to vote and elect people to political office, and freedom to own and use private property.

 

“Real freedom,” they said could only come with the end of capitalism and its system of profit-based exploitation of the workers by greedy, self-interested capitalists. The democratic systems of the West were merely political shams used to dupe the masses into a “false consciousness” to passively accept their oppression by the ruling capitalist class.

 

Only under socialism and communism would the workers – the broad masses of the population – have freedom through the common ownership of the means of production and through redistribution of wealth from the immoral and unjust hands of “the rich” to the deserving and needy toiling laborers and the poor.

 

True democracies were “People’s Democracies”  and "People's Republics" where the economy was controlled by the government – in the name of the people and for their benefit – and redistributive justice (“social justice”) assured that each received what they rightly deserved.

 

In the post-World War II period, socialists in Western Europe were forced, slowly but surely, to give up on the ideal of socialist central ownership and planning of agriculture and industry. Its economic inefficiencies and potential for political abuse, corruption and tyranny became too clear to too many people in Western society for it to remain a shinning ideal for the socialists to espouse.

 

What the Social Democrats in Europe retreated to was the interventionist-welfare state. To have social justice, they argued, it was not necessary for the government to fully nationalize industry and all other economic activity. It is sufficient for the government to “tame” capitalism through a spider’s web of controls, regulations, and commands; and to use the tax system to redistribute wealth from the rich to the poor and the deserving middle class, and to establish a network of social safety nets such as social security, national health care, public housing, and state subsidization of all education.

 

This is basically the ideal that Barack Obama, from all his public statements, clearly believes in and wants to see expanded beyond the extent to which they are already practiced in America. Thus, he wants to use the tax system to “spread the wealth” and apply the regulatory powers of the government to more forcefully manage and direct the economic affairs of the citizenry – all for a particular interpretation of the “common good,” of course.

 

His criticism of the Supreme Court goes back to the fact that the Constitution of the United States was designed to secure people in their individual rights to life, liberty, and honestly acquired property. It was not designed to micromanage the population’s personal, social, and economic affairs, and redistribute wealth from some who are designated “the rich” to others labeled “the poor.”

 

So is Barack Obama a “socialist”? Only he knows the answer to that in terms of a self-identifying label. But what his ideas do represent is a traditional socialist critique of capitalist society, and the belief that it is the duty of government to use its police powers to redistribute wealth in the name of the mirage of social justice.

 
Comments (13)
too much government bad
13 Thursday, 01 October 2009 00:33
unknown
when the government get involved with anything private they
run it one way into the gorund
corporate bailout!
12 Monday, 23 March 2009 11:50
Richard Duggan
It has been called fraud for those business's that sold mortgages to people unable to pay those mortages. How can it be called fraud when under the regulations imposed by the CRA under Jimmy Carter these companies were required to have 20% of there portfolios in minority loans if they wanted to deal with Freddie Mac or Fannie Mae. And then under William Jefferson Clinton that percentage was raised to near 50% and in a memo to those company's by Janet Reno the then Attorney General those same companies were threatened with daily fines of 50,000 to 500,000 for failure to comply with the regulations. These companies had to literally give mortages to black and hispanic people that they knew could not be honored in order to do business.
And when Bush's administration sought to tighten guidance and review the CRA regulations in 2001, Barney Frank and Maxine waters which were on the committee that would be responsible for such oversight said, " There's nothing wrong with Fannie Mae or Freddie Mac and those CRA percentages should be set at 60% thereby eliminating the oversight that the dems now fault Bush for not implementing. That is sheer hypocrisy at an unheard of level that can only be maintained because of the biased media not reporting these facts. Check your history people and you'll understand why Obama bailed those companies out, he had to in order to cover up the dems role in causing the housing fiasco. Now he has to implement ways for those same minorities to keep those homes they are being evicted from in order to keep their votes and prevent a mass exodus from the dems. Watch and you'll see valuable homes given to minotities for a pittance and the tax-payers picking up the tab. Just more buying votes with our money as the usual democratic norm. It's not about socialism, it's about power-mongering and buying the votes to stay in power so they can take care of their fat cat buddies such as George Soros, Warren Buffet, Bill Gates, Rockafeller and all the other bilionaire supporters of the Democrats that funded their elections this last time. George Soros funded the gun control movements in Britian and Australia to the tune of 100's of millions of dollars and now Obama is beholding to him for his campaign contributions. Remember the first thing Lenin, Stalin and Hitler and all the other mass killers in history did was take their people's guns. Do we really want these people in power???
What's Broken
11 Monday, 16 February 2009 14:42
Marie Rosin
The point missed is more political than economic. The massive spending will make a large governmental buracracy blossom into a huge all-invasive structure. This new dynamic will tell you what you can speak (and they'll call it a fairness doctrine) What you can earn and finally, what you can spend your money on. The point missed is an economic move that makes no sense (why not just buy and run a factory that will make wide screen TVs to employ people? Rather than spending millions on havester mice and hi speed rail?) except as a political move to spread dependence into society and silence free market decent. What were you doing when totalitarianism was embraced in America?
Well put, Beverly.
10 Thursday, 11 December 2008 01:48
lisanne5
I would just add that in societies where there is no moral obligation for social justice, and wealth becomes more and more concentrated in the hands of a few, the society eventually fails. The concentration of riches is, in the end, not the best thing for the rich, either! Violent revolt by those who have nothing to lose becomes a reality.

The conservative-speak re: "redistribution of wealth" and "entitlements" might make them feel superior, but it goes nowhere toward solving problems. Is having mentally ill and handicapped people on the street (because obviously they are not earning their "entitlements") better for society as long as the rich can build higher walls and smarter security systems to keep "those people" out of their neighborhoods?

From a purely economic point of view, taking care of those less fortunate in society is a better investment than waiting for them to commit crimes and then you have not only victims whose rights have been violated, but expensive courts and prison terms. Preschool, has a fantastic return on investment for society (people who go to preschool earn more and return more to society than those who don't). There is a reason that public education is public and open to all. Pay now, or pay more later!
Redistribution of wealth???
9 Sunday, 16 November 2008 21:35
Beverly Alexander
If an accountant transferred money from a company's bank account to his bank account, what would you call that?

If the company found out about it and transferred the money back, what would you call that?

If oil companies and military contractors are charging exorbitant amounts for goods and services and avoiding taxes through subsidies and putting money in overseas accounts, I call that stealing. If banks and mortgage companies made huge profits selling mortgages to those who couldn't afford them, I call that fraud.

To restore to the injured parties what is rightfully theirs is not a redistribution of wealth, it is JUSTICE.

I have gotten mailings for quite a while from AIER, and just this evening, I had my credit card in front of me to pay for membership, but I think I was mistaken.

You forget that a society is a bit like a family. Hopefully, in your family, you take care of each other. In a decent society, you do the same. A lot of wealthy people don't seem to get that. Yes, they may give money to charity, or even start a foundation, but if anyone raises the question of health care for everyone, they are horrified - it would cut into their profits.

Like a horse, or a car, for that matter, capitalism can take us far, but needs reins, brakes, or it runs out of control.
Freedom and Justice -- in a Nutshell
8 Sunday, 09 November 2008 20:01
Richard M. Ebeling
Alex VI has asked for a tall order, that is, that I formulate a complete vision or conception of a functioning free market social order. That would require a book-length work.

But in the most brief:

A free market society is one in which each and every individual is recognized as possessing rights to his life, liberty, and honestly acquired property.

Property has been honestly acquired when the individual has: (a) homesteaded previously unsettleed and unowned land and resources; (b) has acquired the property through a voluntary and mutually agreed upon exchange; (c)has received the property as a bequest or gift from someone who cannot be shown to have stolen or fraudulently obtained it; (d) uses it only for either his own personal uses or uses it for the total or partial manufacturing and/or supplying of a good that is traded in voluntary exchange with another.

All human relationships thus are based on voluntary association and mutual consent.

As for justice, when each man is respected in the ownership of his life and property and each fulls his/her contracts and agreements with others, justice has been done by all and to all.

"Social Justice" is the same thing as distributive justice, which means the idea that property should be transferred from one group to another through the coercive use of state power. Why? Because an individual or group of individuals make the claim that person "A" needs or is more deserving of the property and wealth that belongs to person "B."

This is merely legalized plunder (to use the phrase of the French 19th century classical liberal and economist, Frederic Bastiat).

Everything else follows from this. The role of the state is simply as guardian and protector of individuals and their property. It does not regulate, prohibit, control, restrict or command people in how they live their lives, apply their labor or property; nor does the state interfer with any and all voluntary arrangements and agreements men form among themselves -- as long as those arrangements and agreements do not involve the use of violence or fraud.

That's about a simple as it gets.

Dr. Richard Ebeling
otherwise
7 Friday, 07 November 2008 21:31
AlexVl
Could you describe clearly what would be another approach - totally free enterprise system with no government intervention at all? - and how will it function - how will look life of different society groups in such society? Certainly - I am aware that "social justise" is not an Economics term but nevertheless could you describe your approach and its results?
The results of pure socialist approach I could easily feel here and I hate it for sure.
Go Ahead with your predictions...
otherwise
6 Friday, 07 November 2008 19:41
Alex Vlasenko
Could you describe clearly what would be another approach - totally free enterprise system with no government intervention at all? - and how will it function - how will look life of different society groups in such society? Certainly - I am aware that "social justise" is not an Economics term but nevertheless could you describe your approach and its results?
The results of pure socialist approach I could easily feel here and I hate it for sure.
Go Ahead with your predictions...
Socialism?
5 Thursday, 30 October 2008 15:28
Myrhaf
Mises argues in his essay, "Middle-of-the-Road Policy Leads to Socialism" that interventionism leads inevitable to socialism. So whether or not Obama is a socialist ideologue, the welfare state is leading America to what Mises called "socialism on the German pattern," or fascism.
Two-Party Socialism in America
4 Thursday, 30 October 2008 13:33
Richard M. Ebeling
Thank you for your comments.

If I may, let me make a few more observations.

It is not difficult at all to demonstrate that many Republicans have supported the same types of policies proposed by the Democratic presidential nominee.

Indeed, it can be argued that both major political parties are wedded to the belief (and the implicit ideology) that it is the duty of the government to redistribute taxpayers' money to special designated groups.

The dividing line between the two parties often comes down to merely a question over which groups and interests in society will be taxed and regulated for the benefit of other groups and interests.

The 19th century French economist, Frederic Bastiat, once pointed out that our political system is one in which everyone tries to live at everyone else's expense. He also referred to it as a system of "legalized plunder" in which the government taxes away the income and wealth of one segment of the society to give to another segment.

So my analysis of the nature of the ideas that seem to be behind Barack Obama's policy proposals are equally applicible to the Republican presidential nominee.

Certainly, as "stever" points out, the $700 Billion Bailout is just such a form of redistributive socialism.

The fact is, there are virtually no signficant voices on the political landscape who oppose these two-party trends down a socialist road.

Richard Ebeling
Not Hypocrites, just a different P.O.V.
3 Thursday, 30 October 2008 12:18
Bucky
Palin's socialist move wasn't socialist because the money she "re-distributed" came from the highly taxed lower and middle class. They were getting some of their money back, not getting it from the rich.

What she did wasn't socialism, it was the dictators saying "look, we're not so bad, we're giving you some of your hard earned money (that we stole) back to you."

i'm not saying i like the biatch, i'm just saying that's why the Republicans don't call it "socialism."

And the bailout wasn't true socialism (for the people) it was corporatism, because only the large, stupid, corrupt companies got the money, not the people. Plus the government has no control or oversight of how to use the money, because they don't manage it, it can't be socialist.

See it their way (the right way) or they will kill you faster and harder than they are already trying to.
why don't you get a job
2 Thursday, 30 October 2008 11:57
hooby doo
the "mirage of social justice"? So now American's openly glorify the inequities of our system?
Hypocrites...
1 Thursday, 30 October 2008 11:27
stever
Sarah Palin has opposed a windfall profit tax on the oil companies in her state. With part of the revenues from the tax, she asked the Alaska State Legislature to give Alaskans a special one-time payment of $1,200 to help with the high costs of energy.

Huh. So I wonder why this (and the 700 billion dollar bailout) is NOT considered "socialism" to the Republicans?

Answer: Because they are hypocrites. What Mrs. Palin did in effect was a form of socialism, so she is in effect condemning herself when she attacks the Democratic nominee in that fashion.

You see it's only 'socialism' when the other side does it, when you do it; it's for the good of the country.

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