Is Capitalism in America Really Socialist? Debunking Modern Economic Practices

Is it true that capitalism in America today is nothing more than a form of socialism, primarily benefiting the wealthy elite while ignoring the workforce and environmental concerns? This article delves into these questions, examining the political and economic landscape of the United States, highlighting the role of government intervention and corporate power.

Capitalism and its Critics

The prevailing narrative often portrays capitalism as a system where the wealthy exploit the working class, drive down wages, and exploit natural resources for financial gain. Critics like Noam Chomsky, a noted linguist and philosopher, challenge this perspective. In What Uncle Same Really Wants (1992), Chomsky argues that 'free enterprise' is a term that refers to a system of public subsidy and private profit, with significant government intervention to maintain a welfare state for the wealthy. According to Chomsky, this reflects the current state of capitalism in the United States.

From Marx to Modernity

Marx and Engels' definition of socialism speaks to an evolutionary stage between capitalism and communism, where the public takes ownership of the means of production. Strong unions and state control are key. However, in contemporary America, the reality diverges significantly from this ideal. During the 2008 financial crisis, Senator Lindsey Graham proposed that the government take over banks, a move reminiscent of socialism. Yet, unions, which are essential to this process, have been severely weakened. Attempts by workers, such as those at Walmart and Amazon, to form unions are often met with termination and severe repercussions.

Starbucks and Unionization

The case of Howard Schultz, Starbucks' former CEO, illustrates the complexities of modern capitalism. Schultz's long refusal to appear before U.S. senators to discuss his anti-union strategies highlights the deep-rooted corporate resistance to unionization. Even when compelled to appear, Schultz found it challenging to convincingly portray his actions as non-union busting. Furthermore, Starbucks terminated an employee responsible for launching the-Starbucks Workers United movement, underscoring the real power dynamics at play.

The Role of Government

Chomsky's definition of free enterprise reveals the constant interplay of government and big business. In America, the rich have undue influence over government policies, particularly in industries like the military-industrial complex, which receives half of the trillion-dollar military budget. Companies such as Boeing and Raytheon rely on this government support.

The government's role extends to creating a uniform economic landscape. Through deregulation, public funding, and bailouts, the government effectively determines who emerges as economic winners and losers. In healthcare, for instance, Medicare Part C is allocated in a manner that benefits the rich more than the general populace. Those who criticize Medicare as socialist miss the point that it has long been used to benefit the wealthy.

Crony Capitalism and Corporate Welfare

Beyond the direct influence of the government on economic outcomes, there is another form of socialism that favors the rich: corporate welfare. Companies benefit from government-funded research and development that they later profit from commercially, leaving the public to bear the costs. Examples include semiconductors, computer networking, the Internet, aerospace, GPS technology, and space travel. All of this underscores the fact that crony capitalism, a system where close relationships between government and business lead to unfair advantages, is indeed a form of socialism that serves the wealthy.

In conclusion, while the term 'capitalism' is often invoked to describe the current economic system, its true nature in America today is complex and often contradictory. Whether it's the insidious influence of the rich on government policies, the weakening of unions, or the symbiotic relationship between government and large corporations, the system more closely resembles a form of socialistic welfare for the wealthy. Therefore, it is accurate to label modern American capitalism as a form of socialism, but one that benefits the rich at the expense of the general public.