
We’re not in a Manichean struggle between two monolithic systems. We’re just deciding where to draw the line between the private and public sectors of our economy.
If you believe the headlines in our corporate media or the rhetoric of our political leaders, the United States is at a fork in the road. In one direction lies continued Capitalism, which (depending on who you listen to) will either give us unparalleled prosperity or turn the US into a plantation with a few trillionaire owners and a population of serfs. In the other is Socialism, which has either made Northern Europe a 21st-century Eden or ruined resource-rich Venezuela. [1] President Trump would have you believe that the leftward fork is to Communism, “a mortal threat to American liberty”, as if there were no difference between AOC and Stalin.
The occasion for this argument is the improved outlook for Democratic Socialists within the Democratic Party. Bernie Sanders, Elizabeth Warren, and AOC have been around for years, but last November they were joined by Zohran Mamdani, who was elected Mayor of New York City on a platform of rent control, child care, and free buses. In the New York primary two weeks ago, Mamdani-endorsed challengers defeated two incumbent Democratic congressmen and won the nomination for a third congressional seat. In Colorado a week later, another incumbent Democrat in Congress fell to a progressive challenger, a former senator lost the primary for governor, and sitting Senator John Hickenlooper survived a more serious challenge than anyone saw coming just a year ago.
This has evoked much hand-wringing in the political and economic establishment, particularly from the editorial pages of billionaire-agenda publications like The Wall Street Journal and The Washington Post.
I think we would all do well to take a step back and challenge the frames we’re being given. In reality, we’re not facing a choice between two diametrically opposed futures. And we’re not about to go off a cliff into some radically new economic system.
The United States has always had a mixed economy, with both a public sector and a private sector. And we have always had an argument about where to draw the line between them. In the early-to-mid 1800s, before slavery became the center of our politics, the Whig Party believed in a bigger public sector, with a national bank and more government-funded public works like the Erie Canal. Meanwhile, the Democratic Party of that day was the low-tax party that wanted to keep the public sector as small as possible.
That’s the same debate we’re having now. Our most pro-capitalist politicians don’t propose abolishing the public sector, and our most pro-socialist ones don’t propose abolishing the private sector. No matter who gets elected, your local pizzeria will remain a private business and your fire department a public institution. We’re all just arguing about where the line should be.
For example, currently healthcare is divided between the two sectors. Most, but not all, hospitals are for-profit businesses. Health insurance comes partly through government programs like Medicare, Medicaid, and the Veterans Administration, but also through big corporations like Aetna, Cigna, and United Healthcare. (My personal health insurance is split: I have basic Medicare, but my Medicare supplemental and prescription drug coverage is through private-sector companies.) ObamaCare uses government subsidies to pay for private-sector insurance.
The flagship progressive proposal, Medicare for All, would shift the line to expand the public sector’s role in health insurance. Meanwhile, conservatives want to make Medicaid more like ObamaCare — government subsidies run through private insurance companies. A recent Washington Post op-ed called for abolishing the National Institute of Health and relying almost entirely on the private sector to do our medical research.
Highways and prisons are generally considered part of the public sector. But occasionally a toll road gets leased to a private company. And about 9% of the nation’s prison population is housed in private prisons. Both of those divisions are controversial. Some Americans would like to take the whole sector back under public control. Others would privatize further.
We also argue about how much of the private sector requires government regulation. But these arguments are also about moving lines, not eliminating one side or the other. Our nuclear power plants, for example, are almost entirely owned by private-sector companies. But I can’t think of any serious politician who advocates complete deregulation. Nor does anyone doubt that industries can be stifled by over-regulation.
These are healthy debate to have. Some things are better handled within a market system while others aren’t. Regulation can be either insufficient or stiflingly onerous. It’s not always obvious which is which.
Paul Krugman posts “There Are Very Few Socialists in America“, noting that we are seeing a shift in the use of the word socialism more than an actual change in Americans’ political philosophies.
Why, then, does it look as if socialism is on the rise? Mainly because right-wing propagandists continually smear social democratic policies as socialist, trying to make popular, mainstream policy ideas sound extreme. And some Americans who are basically social democrats in effect respond by saying, “Well, if that’s socialism, I guess I’m OK with socialism.”
This corruption of our political vocabulary makes it difficult to notice real threats. If Mayor Mamdami is a “communist“, how will we sound the alarm when an actual Mao or Lenin appears? [2]
As I read the room, the recent popularity of Democratic Socialists may not even have that much to do with single-payer healthcare or any other policy. Kamala Harris lost in 2024 (and least in my judgment), not so much because of any particular issue, but because voters associated her with the status quo. Status quo Democratic centrism has essentially no answer to growing inequality, or the widespread sense that corporate power is gradually snuffing out individual choice, opportunity, and freedom. The old politics of reaching across the aisle and being willing to compromise isn’t working in an era where gerrymandered districts make representatives fearful only of the extremists in their own party.
Much of the “socialist” vote, like much of the MAGA vote on the Right, is less about ideological commitment than simply a plea to do something different.
If moderate Democrats want to retain control of the party, they need their own vision of what “something different” looks like. Joining the Republicans and the corporate media in scaremongering against Zohran Mamdami isn’t going to cut it. Whatever you think of his plans, at least he wants to do something.
[1] Arguably, Venezuela’s problem isn’t socialism so much as corruption. If you don’t want the US to go the way of Venezuela, your best course is to vote out anyone connected to the unprecedented corruption of the Trump regime.
[2] That’s why I was so careful in 2015 when I started applying the word fascist to Trump and his movement. I made sure to define the term clearly rather than just use it as an insult. I think Trump’s subsequent abuse of government force, attacks on the free press, aggrandizement of executive power, and efforts to suppress non-White voting have validated my usage.
















