Don't Call Obama a Socialist; He's a Corporatist

http://www.RonPaul.com - 04/26/2010

Lately many have characterized this administration as socialist or having strong socialist leanings. I differ with this characterization. This is not to say Mr. Obama believes in free markets by any means. On the contrary, he has done and said much that demonstrates his fundamental misunderstanding and hostility toward the truly free market.

But a closer, honest examination of his policies and actions in office reveals that much like the previous administration he is very much a corporatist. This, in many ways, can be more insidious and worse than being an outright socialist.

Socialism is a system where the government directly owns and manages businesses. Corporatism is a system where businesses are nominally in private hands, but are in fact controlled by the government. In a corporatist state, government officials often act in collusion with their favored business interests to design policies that give those interests a monopoly position to the detriment of competitors and consumers.

A careful examination of the policies pursued by the Obama administration and his allies in Congress shows that their agenda is corporatist. For example, the healthcare bill that recently passed has not established a Canadian-style government-run single-payer healthcare system. Instead it relies on mandates, forcing every American to purchase private health insurance or pay a fine. It also includes subsidies for low income Americans and government run healthcare exchanges.

Contrary to the claims of the proponents of the healthcare bill, large insurance and pharmaceutical companies were enthusiastic supporters of many provisions of this legislation because they knew in the end their bottom lines would be enriched by Obamacare. Similarly, Obama's cap-and-trade legislation provides subsidies and special privileges to large businesses that engage in carbon trading. This is why large corporations such as General Electric support cap-and-trade.

To call the president corporatist is not to soft-pedal criticism of his administration. It is merely a more accurate description of the president's agenda. When he is called a socialist, the president and his defenders can easily deflect that charge by pointing out that the historical meaning of socialism is government ownership of industry. Under the president's policies, industry remains in nominally private hands.

Using the more accurate term "corporatism" forces the president to defend his policies and increased government control of private industries and explain de facto subsidies to big business. This also promotes the understanding that though the current system may not pure socialism, neither is it free-market since government controls the private sector through taxes, regulations and subsidies, and has done so for decades.

Using precise terms can prevent future statists from successfully blaming the inevitable failure of their programs on the remnants of the free market that are still allowed to exist. We must not allow the disastrous results of corporatism to be ascribed incorrectly to free-market capitalism or used as a justification for more government expansion. Most importantly we must learn what freedom really is and educate others on how infringements on our economic liberties causes our economic woes in the first place.

Government is the problem. It cannot be a solution.

--

Ron Paul is America's leading voice for limited constitutional government, low taxes, free markets, and a return to sound monetary policies.

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Category:

News & Politics

Tags:

• ron paul
• obama
• corporatist
• corporatism
• socialist
• socialism
• free market
• obamacare
• health care
• healthcare
• cap and trade
• cap-and-trade

[levity76]

I greatly really admire and support Ron Paul and his ideas. But listen: Those of you fellow supporters who say "only Ron Paul can save us," are PART OF THE PROBLEM, and you're missing his point. WE have to do it. Dr. Paul has been a great teacher of the ideas that are necessary to do this. He has said it himself: it's the ideas that are popular and that matter. So man up (or woman up), and go DO something. Learn more. Teach more. Do more, whether it's locally or nationally.

[SirPwn4lot]

Obviously he's a Corporatist, just like every other president lol. He didn't change anything. I'm no Rightwing Libertarian, but at least you know Ron Paul won't sell out to the lobbyists. In the 08' election I was actually closest to Dennis Kucinich, and I hold a leftist Libertarian ideology.

The left or right wings aren't anti-American, the Authoritarian wing is, whether that's on the left (Communism) or the right (Corporatism).

[Jantv81]

Two so called Political Parties (SP) REPUBLICAN + DEMOCRAT.

Twenty First Century Political Parties - MODERATE CONSERVATIVES + LIBERAL SOCIALISTS.

[PrivateAckbar]

@aeris2001 anarcho syndicalism is still morally wrong and consumptive to the extent that it advocates force. The value of labour is determined by a human action in a free market, not the employer OR the employed. It's the basic pacifist pragmatism that liberty is productive which dictates libertarian non aggression. The socialism you're referring to is still prejudice and advocates unionised collective force.

[PrivateAckbar]

@harrisonconstantinou Nah socialism defo is as well mate :)

[aeris2001]

He is confusing real Socialism with State Socialism (fake Socialism), but I will forgive him that, it's not his fault the word has been perverted over the last hundred years.

Corporatism is basically the system under Hitler and it disgusts me. Ron Paul is the only one who can fight this corruption with a chance of being elected. Socialists like me should join up with real liberals, Independents, Libertarians, tea party, Occupy Wall Street and get this man in!

Ron Paul 2012

[5car5ace]

FUCK THE USA! I hope the OBAMA gets reelected so you faggots suffer....

[harrisonconstantinou]

socialism is not the enemy, corporatist are

[harrisonconstantinou]

better off a socialist

[MysTeri0usMatT7]

To the top comment, yes, let's save this country from the clutches of the businesses and corps, let's make Ron proud, come on everyone what we do tomorrow might just affect what will unfold in the future.

[Antiks72]

I wish Obama was a socialist.