Are Capitalism and Socialism Mutually Exclusive?

A big part of the health care scare tactics enacted by the Right is that a government run public option would lead us to (gasp!) Socialism!

I just got back from a two week stint in Spain. It was my ninth time I have been in Europe and every time I go I'm astounded at how happy the people are, how relaxed they are, and how few people I see on the streets of the major capitals panhandling. Maybe it's because people in Europe don't have to worry about losing their house if they get sick, or that their kids' college tuition will be paid for or not. Who knows, it could just be the great wine and cheese and all of that people watching (instead of TV watching).

Now I know that only about 18% of Americans have passports (which is completely embarrassing), and that most of the people in these town halls have never been out of the country, let alone their own state or county. And even here in my home city of NYC, most of the people who boast of being "Italian" or "Irish" have never been to either actual country and have no clue about who their ancestors really are. But let's take a look at some of the western so called "socialist" countries and see how we stack up.

We spend more than double the amount on health care than the other top industrialized nations do per capita. We come in at $6,714 per capita — more than double the median per capita expenditure ($2,824) of the 30 industrialized nations that form the Organization for Economic Cooperation and Development. The closest European country behind us is Norway at $4,520, followed by Switzerland at $4,311. Each of these countries is a high spender by European standards but represents only about 67 percent of what the US spends.

Spending on pharmaceuticals in the US is double that in Europe and Canada because the prices in the U.S. are higher, not necessarily because we use more drugs. We also use expensive technology to a much greater extent than others. In addition, many health-related industries in the United States are private, for-profit, and often traded publicly. Essentially no other country has the number of for-profit organizational arrangements in health care. Although some think the United States has the largest number of doctors, we actually have fewer physicians per 1,000 population than the European average (2.4 vs. 3.1), about the same number of nurses per 1,000 (10.5 vs. 9.7), and fewer hospital beds per 1,000 (2.7 vs. 3.9). Generally speaking, Americans spend less time in the hospital and go to the doctor less frequently, but we pay higher prices for the same medical goods and services, and this makes our overall spending higher. i*

Another reason our health care costs so much is because we don't have a single payer system that allows the government (or other functioning advocates) to negotiate the prices of these drugs and services. The prescription drug bill that was passed under the Bush Administration banned this from happening insuring that the cost of pharmaceuticals would remain at the highest retail price to consumers. Apparently what Wal-Mart does (buy in bulk, negotiate the best price to pass on to consumers) is perfectly fine for the cheap garbage you "need" there, but applying the same principles to what you REALLY need is not. If that's what capitalism is, I think we need to re-evaluate things.

The United States ranks 35th in life expectancy in the world. Behind over 15 European countries, four Asian nations, and two African countries. All either democratically elected socialist states, or communist states.

Since we all know that the southern US and bible belt is where all the virtuous people of the nation reside (cough, cough, ahem!), its surprising to know that a higher rate of teen pregnancy, domestic abuse and divorce occur in this region. And compared with the rest of the world, the US is way behind our counterparts in Europe in regard to teen pregnancy, drug and alcohol abuse, and violent crimes.

Along with the number of uninsured (or those insured whose insurance companies leave them out in the cold) and with the US unemployment reaching nearly 10% is perhaps the reason the number of US bankruptcies has risen 60% since last year. Compared to other countries’ bankruptcy information and filing statistics, we lead the pack: 43% in Spain, 35% in the United Kingdom, and 28% in France. Bankruptcies have been much slighter in Germany and Japan whose numbers have increased by 17 and 18 percent, respectively. All of these nations do not have bankruptcies as a result of healthcare. On the other hand, 60% of US bankruptcies are a result of health related debts.

One thing I always notice in Europe, with all of the differences (for better or worse), is how much Europe resembles the US. Entrepreneurism is everywhere. Commercialism is abundant and sometimes even more in your face than in the US. There are groceries on the shelves, people packed in the cafes and restaurants and night clubs, and construction projects abound. All of this in one of the greatest downturns economically in decades. Yet, if you ask the average American, you would think that the socialist governments in Europe are some backwards fascist states where you wait for hours at the hospital, there are no food on the shelves, and that you lack "freedoms" you have here in the US.

My argument would be the opposite. I think that people living in the European Union actually have MORE freedom than a large portion of US citizens. They have the "freedom" to see a doctor at no cost and seek world class care whether they are employed or not, have a preexisting condition or not, or have the money...or not. Subsequently, they have "freedom" from going bankrupt from a health care related incident in their lives that affect so many Americans as I stated above. They also have educational "freedom" as well, and the "freedom" from the debt that so many American students coming out of college are saddled with.

To the fiscal conservatives out there who are saying "Yeah, but they pay so much more in taxes!!!" Well, my short sighted friends, one way or another you are still paying for it. When your neighbor across town who doesn't have health insurance gets admitted into the emergency room, YOU are the one that eventually pays for it. Want your kid to attend college? YOU actually pay for it anyway. Just like you pay property taxes for schools in your community or a library or the fire and police department. Why not pay a little more in taxes and insure that you won't lose that house you've been paying property taxes on and add a few more services that help the community you live in?

So wouldn't it make sense to band together as an advanced, wealthy society and say: "Enough! I want to live in a society where everyone has the same access to health care and education as everyone else because that makes the place where I reside that much better! I will pay more in taxes, along with everyone else, because I end up paying for all of these things anyway, and sometimes more! Enough!"?

Michael Moore's movie Capitalism: A Love Story (and I'm a big fan of Michael Moore by the way), states that capitalism is evil. I don't think it's that simple. Conventional capitalism is a component in all successful, wealthy countries regardless of their governmental and social sway. What is wrong with capitalism is human nature. When we inject greed and human nature into industries that are for the public good they become detrimental to the needs of the very humans that it is designed to help. We wouldn't run our fire departments for profit and we shouldn't for health care. Regulation of Capitalism, that has been the great engine of the industrial and technological revolutions, is what is needed. Especially on Wall Street!

In Spain, I was having a drink at the hotel bar and a Swedish couple celebrating their 30th wedding anniversary. The wife was a general practicioner, and the husband was a psychiatrist. They were well spoken (with English probably being their 2nd or 3rd language), healthy, youthful and very happy. When I asked them if they would rather make the kind of money they could in the US but that 20% of their fellow Swedes would go without medical care and therefore be subjected to bankruptcies they immediately answered: "NO! We are happy and comfortable, we are staying here in a great hotel and taking a cruise to Italy tomorrow. Why do we need more?"

When we can learn that in the US that we can have both capitalism and socialism under the umbrella of a representative democratic government is when we will truly be on the path of maturing as a nation. Like the Swedes, or the Spanish or the rest of the industrialized world.

Until then, we will be the nation who had it all. We look great, but never lived up to our potential. Kind of like the Anna Kournakova of nations.

I think I'll pass.

Damon Alexander is a freelance writer living in NYC.

*i Governing Online, Arthur Garson & Carolyn L. Engelhard