Thoughts from the Middle
The United States of America
Republic, Capitalist or Socialist Nation?
By
Robert J. Fischer
This article was prompted by recent comments made about our government and various political candidates. Based on these comments, it is apparent to me that many, if not most, Americans do not understand the nature of this country’s political/social makeup. We are in fact a capitalist, socialist, republic. Unfortunately, terms such as socialist and capitalist are often used in a negative way. It might be helpful at this point to define some terms. It is also important to realize that these concepts are on a continuum and may co-exist with each other.
Definitions
Anarchy — a state of disorder due to absence or no recognition of authority.
Capitalism — an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.
Communism —a political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs. Also called Marxism.
Democracy — a system of government by the whole population or all the eligible members of a state, typically through elected representatives.
Fascism — an authoritarian and nationalistic right-wing system of government and social organization.
Republic — a state in which supreme power is held by the people and their elected representatives, and which has an elected or nominated president rather than a monarch.
Socialism — a political and economic theory of social organization which advocates that the means of production, distribution, and exchange of goods should be owned or regulated by the community as a whole.
Historical Context
Our founding fathers struggled with the problem of how to govern. Some advocated a continuation of the monarchy. This advocacy continued through the revolution, with some promoting George Washington as a potential king. Some wanted a loose confederation of states. Others wanted a republic based on the Roman model. The Republic model was eventually adopted. The new country would have a democratically elected representative government headed by a president. The issues of capitalism and socialism as political systems were not considered.
The nature of the social system in place at the time of the revolution was based on the colonies as economic enterprises funded by the English wealthy merchant and aristocratic classes. Thus, the social structure in each state was generally based on commercial interests—agriculture in the south and industry/crafts in the north. Whether or not we admit it today, the revolution was fought over commerce. Capitalism was the apparent system. The concepts of communism and socialism did not exist.
Still, the social structure of the time required that the government provide certain tax paid services. These included fire watches and security patrol/night watch personnel. Almost all other services were provided by local merchants and property owners. When transportation needed improvements, the government eventually established “post roads.” Before the concept of socialism/communism was even introduced, the good of the people was supported by the government in limited areas—early forms of what would later be called socialism.
What this means is that our capitalistic republic has been (as have most republics) providing government services in what we would call a minimal form of socialism. As the country grew and became more prosperous, some of the “people” wanted the government to provide additional services. The hungry should be fed, the homeless should be provided with some form of housing, and the sick should be guaranteed basic medical attention. From these demands, which were promoted by the people voting for representatives who shared their values, the United States gradually moved in the direction of socialism.
There are also those who see the movement toward socialism as outside the realm of our government. Instead, they are focused on the role of the business sector in providing support for the needy. They believe in self-sufficiency. In the last several decades this idea has become known as “trickle down” economics. If the capitalist is doing well, so too will those who work in the system.
On the liberal side, those who want more from the government find capitalism as indifferent toward the needy. They often attack conservatives who support the capitalistic system as greedy. Trickle-down economics does not work, and the rich are the only group to gain from it.
The Situation Today
Today, the U.S. is best described as a capitalist, socialist republic. In spite of all the criticism from both sides, the system still works. It takes capital to invest and pay taxes in order to offer certain government services. Most of us can agree that we need schools, military, police, fire, safety, and public roads. Some would also continue to support regulation of the transportation industry, food and drugs. But, there are still others who see regulation of firearms; agriculture practices, and individual choice as outside the realm of government responsibilities.
The most important thing to remember is that the Constitution’s preamble states that the purpose of the government is to:
- establish justice,
- insure domestic tranquility,
- provide for defense,
- promote general welfare, and
- provide security for the blessings of liberty.
These words imply a broad role for government. Since it is “we the people” who control the representatives who make the rules, we get to decide what an appropriate government role is. The whole population will likely never agree, but we are a democracy. That implies that the majority sets the rules. The rules have shifted over the decades as different groups have formed alliances and furthered their concepts of what is acceptable.
Socialism in its extreme will likely never be the political driving force in this nation. But, neither will pure uncontrolled capitalism. We are a Capitalist, Socialist Republic!
Thoughts from the Middle by Robert J. Fischer 