The aim of this piece is not to place value judgements on either socialism or capitalism as inherently good or bad. Nor do I imply my descriptions of capitalism or socialism are definitive but representative of broader public discourse about them.
Things are not always as they seem. This article is an attempt at challenging assumptions about political ideologies. Aristotle and Plato spoke of the relationship between forms and the essence behind them. By getting at the essence of ideas, one tries to do away with carrying the essence and its contextual and ideological baggage. In this instance the essences of Sanders and Trump are obscured by their forms of social democrat and real-estate mogul. Hopefully this thought experiment will help get at the essence by trying on different forms. Here we go:
Please entertain the possibility that…
— Bernie Sanders is a hardcore Keynsian Capitalist who places market efficiency and technocratic meritocracy above all else
— Donald Trump is a misguided socialist who wants to give people free stuff and overthrow the global capitalist order (I will address this next week)
Sanders:
John Maynard Keynes was one of the most influential economists of the 20th century. He looked at the great depression and argued that governments shouldn’t just sit back and watch economies tank, they should actively intervene in economies to prevent or alleviate crisis. Sanders is in complete agreement with this, and wants to alter the rules of economic systems in order to prevent these crises from occurring to such a devastating effect. It’s important to note that government laws like Sanders is proposing are not some external thing entering economies and slowing them down. Free market economies would not exist without governments to uphold rules, the laws governments instate or don’t instate build the landscape for companies to do business. It’s therefore arbitrary to separate the two.
By reinstating something like Glass-Steagall legislation, banks would be prevented from getting too big as to endanger the economy. By creating a financial transaction tax, investors would be dissuaded from making short term speculative stock market trades that increase risk in stock markets over the long term (more here). These are things that many economists think would improve the functioning of the american economy as a well oiled capitalist machine that creates value for Americans. Sanders doesn’t want to end the free market economy with these policies, he wants to improve it and people should recognize that! Conservative economists also worry about governments getting too big, arguably all of these things don't grow the government but simply alter the landscape upon which the free market operates.
Sanders believes that those who are the most skilled and talented should earn more and receive higher ranking jobs, a true meritocracy, this would increase the functioning of capitalist economies. Sanders simply does not emphasize that side of it. More often he highlights the current disfunction and inequality that gets in the way of meritocracy. He offers and solutions to it, but by addressing this, he would also create a truer meritocracy and a stronger economy.
In a nutshell, underfunded schools, expensive College tuitions, uncertain or inaccessible Healthcare, and unlivable wages all act to deny opportunities to Americans. Also these things are more expensive in the long run for society as a whole. If everyone were guaranteed these services, people would have the freedom to realize their fuller potential through education and get the preventative care they need to avoid more costly health problems. Higher wages allow savings to avoid living paycheck to paycheck, which is ultimately more expensive due to payday lending and inability to make long term investments.
Conservative economist Milton Friedman famously said:
The society that puts equality before freedom will end up with neither. The society that puts freedom before equality will end up with a great measure of both.
Friedman was rightfully distrustful of big government, he watched with the world as the Soviet government's planned economy failed to provide basic goods and services for its people during the cold war. Friedman argued that its much more efficient for the government to guarantee freedoms and get out of the way of commerce instead of sacrificing market choice for equality of distribution. Now it’s important to frame what is meant by equality and freedom. Equality being the prosperity of individuals and freedom being the opportunities and options individuals can choose from. This quote is entirely compatible with Sanders.
Sanders does not want equal paychecks, equal health, or equal education. Americans want the freedom to choose different careers, different lifestyles, and different educational paths. Now I invite readers to enter John Rawls’ Veil of Ignorance (watch this short video for more)
Imagine yourself in a conscious, intelligent state before our own birth, but without any knowledge of what circumstances you will be born into. You will have no idea what your parents will be like, your town, what your schools and hospitals will be like and how the police and courts will treat you etc. etc..
Rawls asks if you'd feel safe entering contemporary US society in these conditions, I'd posit that you likely would not.
Arguably, this experiment concludes that Sanders’ policies are not about equality of outcomes or even equality of opportunity, but the freedom from shitty public schools, the freedom from having to live with injuries or ailments that are curable, and the freedom from homelessness and hunger. No one chooses these conditions, this is not a matter of equality, simply freedom. Thus ends my longer explanation of how America’s most visible social democrat might agree with one of America’s most foundational capitalist thinkers.
I invite any and all respectful conversation on these issues (there’s so much to talk about!)
Next week: Donald Trump is a misguided socialist who wants to give people free stuff and overthrow the global capitalist order
