Three Questions for Socialists
By John Case
6-26-09, 9:39 am The bias towards market solutions sits nakedly alongside the stark reality of serious market failures in critical sectors of the economic regime of the past 70 years: health care, financial services, auto, infrastructure, education, climate change preparation, and energy. The difficult challenges before the American people all mandate a sharp turn from the status quo. And that turn simply cannot avoid a substantial expansion of long-term public intervention commensurate with the scale of market failures. Even without the stubborn and unrelenting resistance of finance capital, the insurance and pharma industries, the bondholders of the auto industry, the oil and power industries, and other sundry so-called free market "fundamentalists" these challenges would be daunting. But working people and progressive forces, including important forces aligned with the Obama administration MUST mobilize sufficient, indeed overwhelming, pressure to defeat the resistance, pass the reforms, enforce them, and – most important of all – insure that they redress the massive losses in income and security that have been suffered in the past 30 years.
The right calls this creeping socialism. They are correct – that's exactly what the minimum necessary social democratic reforms are, and there is no point in concealing it. However, contrary to the alarmist hysterics of the ultra right, incremental steps in a socialist direction do NOT mean the end of capitalism. Far from it – universal not-for-profit health care, a green national energy and infrastructure policy, financial reform, very large investments in education and training will generate a new birth of capitalism in many areas of the economy. Innovation is vital to growth and human progress. Healthy, competitive markets play a critical role enabling science and technology to raise human productivity. In addition, with rising culture, human needs and wants – reflected in the DEMAND side of the economy – rise dramatically. Soon almost all industry will be "high-tech" industry, just as every science is now also part computer science. But insuring that the fruits of science and technology really meet human needs and advancement must be tested repeatedly in the furnace of actual economic demand. Markets are the only tools known for performing this task more or less spontaneously on a massive scale – and it is critical that they thrive. Markets are human institutions that will persist as long as there are commodities and a division of labor in society. They are not products of natural law. They can and must be managed to serve human ends. Relieved of the crushing burdens of private health care, able to draw on a more skilled and educated labor force, provided with customers who have rising incomes and needs, given access to stable credit markets – corporations and entrepreneurs will find a new boom in economic activity once the bankrupt vultures and dinosaurs of the last century are give a proper burial.
There are some – thankfully a declining number – on the Left who have long been infected with a caricature of socialism, and capitalism. They see capitalism as a fixed and unchanging system where efforts at reform are inherently futile – forward progress will inevitably be crushed, impoverishment is ultimately absolute, and only a "revolutionary" transformation is capable of liberating working people from exploitation. Likewise socialism is pictured in no less idealized terms with virtually no connection to day to day struggles other than an opportunity to "expose" the "fraud" of reforms. For most of the past century working people in advanced capitalist countries have been ill-served by these tendencies, and in fact largely ignored them with the result that many are seriously marginalized. Despite the romanticized affections some in the marginalized left express for revolutionary movements against colonial and neo-colonial domination in the developing world, these movements, even when compelled to resort to arms in the absence of even minimal democratic rights, have actually been in the lead shunning dogma and devising radical innovations in mixed economic development. These efforts have produced unprecedented growth rates and been the primary cause of the reduction in world poverty rates in the past half-century.
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