‘Socialism’…why do more and more people seem to be developing a phobia of the S word? Why do Socialism and Capitalism seem to be two mutually exclusive choices?

Corporations and the wealthy elite seemed to have found the ‘S’ word to protect their growing greed and needs.  Any change that effects the interest of the elite or big corporations is categorized as a “socialist” policy.  National interest seems to be taking a back seat to increasing corporate and individual gains. The irony is that those who have the most to benefit from more Socialist polices are it’s biggest opponents, while the elite watch in quiet amusement how the lower and middle classes safely guard their growing wealth under the guise of ‘capitalism’.

If you look up the meaning of Capitalism it is defined as :

An economic system that became dominant in the Western World following the demise of feudalism.There is no consensus on the precise definition nor on how the term should be used as a historical category.There is general agreement that elements of capitalism include private ownership of the means of production , creation of goods or services for profit, competitive markets, and wage labor . The designation is applied to a variety of historical cases, varying in time, geography, politics and culture.

It is evident that Capitalism has evolved over the years, from its conception by Adam Smith, as the “Invisible Hand”, to Reaganomics. However today it seems to be reduced to an ideology over run by powerful lobbies and big corporations. It is suffering the same fate as many other ideologies have in the past. It seems to be serving only the interest of a few, and making the rich richer and poor poorer. The U.S. being a classic example of these excesses.

The Health care debate in the U.S. is a great example of how the ‘new’ interpretation of Capitalism has made U.S. one of only three developed nations without a universal healthcare system for all. The other two happen to be Mexico and Turkey, which have the excuse of being poorer than the rest. More money per person is spent on health care in the USA than in any other nation in the world,and a greater percentage of  total income in the nation is spent on health care in the USA than in any United Nation member state, except for East Timor. Although not all people are insured, the USA has the third highest public healthcare expenditure per capita, because of the high cost of medical care in the country.

A 2001 study in five states found that medical debt  contributed to 46.2% of all personal bankruptcies and in 2007, 62.1% of filers for bankruptcies claimed high medical expenses.The high costs  paid by U.S. companies for their employees health care put them at a competitive disadvantage. But powerful lobbying by pharmaceutical companies and medical associations will not lower health care cost in the U.S or allow any kind of healthcare reform. Warren Buffet said “that kind of a cost, compared with the rest of the world, is like a tapeworm eating at our economic body.”

If this is Capitalism then we need to revisit our interpretation of Capitalism and start using more of the ‘S’ word. In order for Capitalism to survive, like any other philosophy, it has to be able to adapt to a changing world, and evolve to encompass solutions for changing global needs.  It needs to borrow best practices from other ideologies, even ‘Socialist’. Critics of Capitalism have for long argued that capitalism is associated with: unfair and inefficient distribution of wealth and power; a tendency toward market monopoly and oligopoly. How the current interpretation of Capitalism fairs in the midst of increasing globalization, aging economies, personal greed, corporate monopolies, environmental issues, is yet to be seen.

But Americans and the world need to ask themselves is Capitalism an economic ideology or has it become a political ideology. As Edward O. Wilson said “Political ideology can corrupt the mind and science”.