The Choice Isn't Between Capitalism or Socialism

Americans are once again interested in debating economic systems. The 2016 presidential candidacy of Bernie Sanders, a self-described socialist, reignited a debate about capitalism and socialism that some believed had died with the Soviet Union. Younger Americans are now divided on which system they like best:

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Unfortunately, the debate over what these terms actually mean has become hopelessly muddled. Without a Soviet bloc to provide an official alternative to capitalism, people cast about for examples that fit their desired narrative. Self-appointed defenders of capitalism will point to the economic failures of the USSR, China and North Korea, or to the more recent economic disaster in Venezuela as proof positive of socialism's defects

Socialism’s champions tend to rebut these charges by pointing to the successes of the Scandinavian countries. Sanders himself regularly praises Denmark, and occasionally Sweden, as examples of what he would like to achieve in the U.S., while others prefer Norway. But American socialists have, on occasion, received pushback from residents of those countries -- in 2015, Danish Prime Minister Lars Rasmussen stated bluntly that Denmark was a market economy rather than a socialist one.

So is Sanders right, or is Rasmussen? Are the Scandinavian countries socialist or capitalist? The truth, unfortunately, is much more nuanced and complex. There will never be a clear, simple definition of socialism or capitalism, because there are multiple ways that a government can try to intervene in markets.

Read more: https://www.bloomberg.com/opinion/articles/2019-07-23/the-choice-isn-t-between-capitalism-or-socialism?srnd=premium