One of the economic models the statists, especially those on the left, would like the United States to follow is Euro or Democratic Socialism. This movement, while not pure Marxism, is a state led economy with cradle to grave welfare and can be described officially as:
“Social democracy is an ideological stance that supports a broad balance between market capitalism, on the one hand, and state intervention, on the other hand. Being based on a compromise between the market and the state, social democracy lacks a systematic underlying theory and is, arguably, inherently vague. It is nevertheless associated with the following views: (1) capitalism is the only reliable means of generating wealth, but it is a morally defective means of distributing wealth because of its tendency towards poverty and inequality; (2) the defects of the capitalist system can be rectified through economic and social intervention, the state being the custodian of the public interest […]”. 1
These statists who dream of making America more like Europe have been somewhat successful however, many free market supporters have often fought the statists’ efforts since the origins of Franklin Roosevelt’s New Deal. In this epic battle, more often than not, the statists have not won and America has kept at least some vestige of free markets and thus a growing Gross Domestic Product (GDP). However, since the mid 1990s Europe has embraced more statism and their economic progress has been greatly retarded as show in the Euro Area’s paltry GDP growth in the chart below which shows GDP Growth Rate in the Euro Area averaging only 0.37 percent from 1995 until 2016. 2
The question is, do we really want to become more like Europe?
- Heywood, Andrew (2012). Political Ideologies: An Introduction (5th ed.). Basingstoke, England: Palgrave Macmillan. ISBN 978-0-230-36725-8.
- “Euro Area GDP Growth Rate 1995-2016.” Euro Area GDP Growth Rate 1995-2016. Trending Economics, 12 Dec. 2016. Web. 12 Dec. 2016. <http://www.tradingeconomics.com/euro-area/gdp-growth>.