
The governor of the Republic of Texas
issues a timely warning:
Gov. Rick Perry had some pretty strong comments about the Obama administration on Wednesday in Midland, saying, “This is an administration hell-bent on taking America towards a socialist country.”
The only problem is that Obama is not hell-bent, but rather heck-bent.
Even on those occasions where politicians have a good point, like Ted Kennedy's* "Robert Bork's America" speech** it seems they cannot help removing from it all sense of proportion. So it is with Perry and the conservatives' complaints about "socialism." Even
El Presidente Pasado, as responsible as anyone - or more responsible, because all the while he was doing it he warned against it - for the current move toward government ownership of everything, is
making such a complaint. The problem is, it's not really socialism, or at least not in the "hell-bent" sense.
At the turn of the twentieth century, socialism was on the rise worldwide, not just as a reality, but more importantly as an ideology. The combination of a modernist belief in the perfectibility of man and a faith in the omniscience of science led people to believe that an enlightened and scientific government could impose upon its subjects an organization of the means of production that would benefit them all***. Mises, of course, showed the impossibility of socialism "working" in theory by demonstrating that the lack of a market-driven pricing mechanism meant that socialism ran blind - it simply could not determine how much of what should be produced. The socialists who had the chance the world over showed its impossibility in practice. As a result, no one today truly believes that socialism is more efficient or more rational than capitalism. If you don't believe that, find the quote where Obama says the government would be better at making cars than its quasi-private agency, GM.
And yet, the government now owns (or at least insures) through its various agencies
nine-tenths of all new mortgages, and at a tremendous loss. It provides insurance through its 80%-owned AIG. It owns parts of Citi and other huge, failing banks. And yet it seeks - at least in print - to get rid of these as quickly as it can make a profit doing so. What kind of socialism is this?
It is not the socialism of the ideologue but of the slacker; it is the short-run easy way out of the problems caused by half-assed capitalism combined with credit excess. It is a socialism that is ashamed of itself. It's not a belief in the efficiency of government direction: not even the proponents of "public option" insurance believe that it will provide better service, they assert that the increased competition will force the private insurers to provide better service. This is a huge distinction, and one that is missed by those like Perry because they are more interested in making political hay than in making widgets efficiently.
Now perhaps this latent belief in competition is traceable to Reagan's assertions about government, but it is no mere ideological leftover; rather it is a demonstrated truth. Obama is taking us toward socialism - the government ownership of all means of production - but it is not the confident socialism that forcibly communalizes farming, it is the bureaucratism of a people too comfortable to put up with the risks and losses that competition necessitates. They demand the benefits of competition without its costs. If, against all odds, the "Public Option" should prove so competitive that it actually bankrupted private insurers, they simply would ask for, and receive, a bailout.
Of course, it will not work: tying mountain climbers together may save one who slips, but when half of them slip they all die. But at least we won't be forced to call each other "comrade" all the way down.
* Ted Kennedy: keeping the world safe from Mary Jo Kopechne since 1969.** I don't agree with the speech. In fact, I think it was unadulterated rubbish. It just serves as the best example I can think of of a politician taking a defensible position, de-contextualizing it, and driving it to such an extreme that it becomes, well, unadulterated rubbish.*** Though it was a given that it would benefit the organizers most of all.