Ron Reosti: Imagine Living in A Socialist USA (1)

Introduction

• Title: Imagine Living in a Socialist USA

• Editors: Frances Goldin, Debby Smith, and Michael Steven Smith

• Publisher: Harper Perennial

Chapter 3: A Democratically Run Economy Can Replace the Oligarchy (Ron Reosti)

Current State of the U.S. Economy

• Perception of the U.S. as an Oligarchy: The U.S. is increasingly recognized as an oligarchy; a small number of wealthy individuals (less than 1%) hold disproportionate influence.

• Impact of Oligarchs: These individuals control government, media, and academia, exerting control without election, financed through their immense wealth.

• Public Opinion: Majority desires wealth distribution, national healthcare, and retirement security, which oligarchs oppose.

• Control Mechanisms: Oligarchs finance political parties, own major media outlets, and influence academic and political discourse.

• Dependency on Corporations: Most citizens depend on oligarchs for employment and economic stability.

Democratic Alternatives to Capitalism

• Historical Context: The misconception that socialism leads to dictatorship and poverty is challenged; history should not dictate future potential.

• Economists' Perspectives: Many experts propose that a democratic economy can be designed to meet societal needs without waste or inequality.

• Decision-Making: Democratic decision-making is essential for equitable resource use and the satisfaction of community needs.

Evidence of Democratic Economic Models

• Employee Ownership: Over 11,000 businesses in the U.S. have Employee Stock Ownership Plans (ESOPs), showing higher productivity in employee-owned enterprises.

• Successful Cooperatives: There are over 48,000 co-ops in the U.S. (e.g., credit unions, retail co-ops) that showcase long-standing public ownership traditions that outperform capitalist entities.

• Public Utilities: Publicly owned utilities tend to charge less than private alternatives, with a record of efficiency.

• Examples of Success:

  • Bank of North Dakota: Established in 1919, continues to support local economy, returns significant profits to the state.

  • Wisconsin State Life Insurance Fund: Offers competitive premiums and dividends, functioning well over decades.

Benefits of a Large-Scale Democratic Economy

• Large Corporations: These can survive under democratic conditions focused on community needs rather than profit for shareholders.

• Examples of Efficiency: Publicly run programs (e.g., Social Security, Veterans hospitals) demonstrate that effective administration can exist without private profit motives.

Challenges and Solutions

• Central Planning: Even Democrats can plan economically; planning should support public interest over oligarchic benefit, with transparency to voters.

• Control Measures: Democratic control over planning can prevent the emergence of new oligarchies.

• Motivation Beyond Profit: People driven by cooperative success rather than profit – historical context shows creativity stemming from non-capitalist motivations.

The Role of Market Dynamics

• Inefficiencies of Current Markets: Actual markets often led to monopolies and oligopolies, distorting real competition and causing waste.

• Market Alternatives: Decisions on production and resources can still be made democratically through modern technology (surveys, data analysis).

• Potential for a Balanced Market: Some enterprise markets may still thrive under democratic conditions.

Addressing Common Concerns

• Worker Efficiency: Studies in employee-run firms indicate higher responsibility without the coercive pressures of traditional capitalism.

• Distribution of Work: Democratic engagement can efficiently address who performs various roles within the economy.

• Adaptability and Correction: Democratically run economies can shift and adapt to evidence, unlike capitalist systems struggling against imminent crises (housing crises, environmental challenges).

Conclusion

• Feasibility of Democratic Socialism: Empirical evidence suggests a democratic socialist economy can function efficiently and equitably, providing essential goods and services for all.

• Urgency for Change: Emphasis on creating a sustainable, just economy to replace the current destructive capitalist systems.