I continue to reflect on the hype in the U.S. about "democratic socialism." I think most people who use the term are saying they want a market economy with a greater emphasis on social justice (open to varying definitions) and promoting basic human well-being. When pressed to give an example, they typically point to Scandinavian economies. Yet these countries do not consider themselves socialist in the least. In fact, Sweden embraced a move toward true democratic socialism from the 1970s until the mid-1990s. Living standards dropped, debt increased, and the overall economy fared poorly. They have now embraced market economics while providing a carefully crafted welfare system. People truly committed to democratic socialism, while appreciating some features of Scandinavian economies, find them an unsuitable compromise. These countries might be characterized as social democracies, but they are not democratic socialist. As the Democratic Socialists of America party makes clear, they seek the eventual elimination of capitalism (market exchange and private ownership) through democratic means over time. These Scandinavian economies are, at best, a step along a progression to an ultimate socialist end. Being clear about our terms is important, but my concern runs deeper.
I just came across an excellent piece about comparative economic systems, Capitalism with Scandinavian characteristics. Economist Timothy Taylor writes it. You may know him from the Great Courses class on economics. Taylor tackles some of the issues I just raised and more. But I particularly resonate with the closing paragraph of his piece.
"It seems inaccurate to me to label the Scandinavian model of capitalism as "socialism," but arguing over definitions of imprecise and emotionally charged terms is a waste of breath. What does bother me is when the "socialist" label becomes a substitute for actually studying the details of how different varieties of capitalism have functioned and malfunctioned, with an eye to what concrete lessons can be learned."
Bingo! My concern with the "democratic socialist" label is not a predilection toward etymology. We need to be clear about what we mean. If your vision is something akin to Nordic capitalism (aspects of which I find very positive), using terms like "socialism" and "democratic socialism" does not advance productive discussion.
Please read Taylor's piece. Good stuff!
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