Health Care Reform Sparks Fears of Socialism
Does Obama's Plan Mean the Death of Capitalism?
Aug 13, 2009
In the recent shouting matches featured in Town Hall gatherings in some communities in the United States, the word "socialism" has been used again and again.
"We're afraid of Obama!" Protesters have shouted. "He's a socialist!"
Why are people afraid of socialism?
The United States is a capitalist nation and some are concerned about what will happen if a health care system in this country that employs socialist philosophies and ideals is adopted. Are they right to be worried? What would socialism mean for the United States?
What is Socialism?
According to the Merriam-Webster Dictionary, "socialism" is any various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods. In other words, socialism means equal access for all individuals to goods and services, regardless of income, hours or work, etc. Currently, the nations that self-define as socialist are The People's Republic of China, Cuba, Laos, North Korea and Vietnam.
Arguments against socialism are many, including the belief that governmental "red tape" would hold up every process, including approval for heath care, which could delay treatment. Additionally, many believe that socialism could lead to total government control. In 1945, Winston Churchill spoke out against socialism, saying, "Socialism is an attack on the right to breathe freely. No socialist system can be established without a political police. They would have to fall back on some form of Gestapo" (Friedrich Hayek: A Biography by Alan O. Ebenstein. University of Chicago Press, 2003). Simply put, because the government controls and distributes goods and services in a socialist nation, the people would also be under the control of the government, which some believe could quickly turn into a dictatorship or Nazism.
What is Capitalism?
Merriam-Webster defines "capitalism" as an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production and the distribution of goods that are determined mainly by competition in a free market. The United States is a capitalist nation, as are many other countries, including France, Norway, Iceland, Switzerland and Canada.
The United States operates under the belief that the market of goods is "free", meaning open and available to all. How accessible goods and services are is determined by prices, production and income. In other words, the quality and quantity of what individuals can access is determined by how much money one has.
One argument against capitalism is that the distribution of wealth and goods is unequal, which can lead to unemployment, economic instability and social alienation. Vladimir Lenin wrote in "Imperialism: The Highest State of Capitalism" that capitalism promotes economic division of the world, and that political alliances are based on monetary needs or gain (1916). In other words, Lenin (and others) believed that capitalist nations align with other capitalist nations and position themselves against countries that do not subscribe to the same system.
Socialism vs Capitalism
It's clear where these systems are different. It is also difficult to determine which is a "better" system. Both have clear advantages; the idea of equal access for all is appealing, especially in a time when so many are unemployed, losing their homes and going hungry. On the other hand, a "free market" that is accessible to those who work hard can motivate individuals to do and be better. Both also have consequences that are difficult to overlook: capitalism can easily be seen as unfair to those who are less fortunate. The idea that a socialist society could easily transform into a dictatorship or Nazism is hardly far fetched.
Canada is a capitalist country but their health care system is different; basic health care needs are provided by private doctors but paid for by the government. There have been some issues that have come about due to this system, such as long wait time to see doctors and a shortage of medical professionals. However, all citizens--from newborn babies to the very elderly--get their basic health care needs paid for.
Obama's Proposed Health Care Reform
Currently in the United States, the average cost of health care for a family is $12,000 per year. Approximately 47 million Americans are without any health coverage ("Barack Obama's Health Care Reform: Questions and Answers." The Times, August 13, 2009). According to his administration, Obama's goal is to build a government funded health care plan that would compete with private insurance companies. That way, Americans without jobs would still have an opportunity for coverage, plus families might be able to get coverage for less money.
There are loud voices on both sides of the issue and everyone deserves to be heard. No matter what happens, there needs to be a solution for the 47 million people living without health insurance in this country. That is long overdue.
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