The Tired Debate of Capitalism vs. Socialism

Red Herring, anyone?

In the movie Clue (a bonafide classic if you ask me), when the crime at the end is revealed, a character condescendingly remarks that “Communism was merely a red herring”.

Although some knowledge of the story would be useful to demonstrate what that line meant, its broader meaning is, I think, a little more important.

So what is a red herring (if you don’t already know)?

2. a clue or piece of information that is, or is intended to be, misleading or distracting.

"the book is fast-paced, exciting, and full of red herrings"

The idea of the red herring shows how terms like this, such as Socialism and Capitalism, are often used more to mislead the public and obscure political debates than anything else.

The line from Clue, in its subtle jabs at politics, seems more prescient as I think about it, especially considering the constant debate that occurs in the United States about the merits of such systems. Socialism and Capitalism as political ideas seem to be debated on, written about, and brought up ad infinitum…

This dead cat, beaten to death, is then dragged through the mud as a macabre distraction from any real issues and real solutions in such debates.

What am I getting at? Even in 2019, David Brooks wrote for the New York Times that “I was once a socialist. But then I saw how it works,” probably getting too caught up in these overused terms for his own good.

It’s a good article by any means, addressing Capitalism’s benefits and its shortcomings. Still, it just can’t seem to see past the ideological barriers that using such a term puts up.

Some comments to the article were more enlightening to the nuances that exist between such terms:

In reality, most progressives advocate for a more Scandinavian-style system (which Brooks acknowledges are both very successful and capitalistic). In other words, a system where an illness won’t bankrupt a person, and everyone who works full-time can comfortably afford a decent apartment close to their job.

And this one.

I find it so tiresome that we get stuck on labels like Socialism and Capitalism. Venezuela, China and Russia = Socialism? Give me a break, Chavez, Mao and Stalin were brutal dictators there was nothing Socialist about those societies, all they did was channel wealth from one group of people to another. And how is it that capitalism has been so great? Look at what Amazon is doing to its workers. How about all the wealth accumulated to the top 1% in the US? There's a role for business and a role for the government and society. As an example, when capitalism is applied to the prison industry people suffer because their imprisonment is what drives profits. Quit getting hung up on Capitalist vs Socialist and focus on applying the best of both approaches to our society.

As the Clue quote mirrors, these terms have become something of a red herring, a distraction from real solutions to real issues. They are thrown out more to virtue signal our respective parties than to implement any lasting change.

Conservatives in this country cry out “socialism!” anytime a policy that resembles government regulation or support is suggested. On the other end, I see YouTube channels such as Second Thought that seem stuck on the idea that “Capitalism” is evil and “Socialism” is the solution.

Both seem dangerous simplifications of what politics, and real life, is actually about: compromise.

What I’m saying: There’s no nuance here, no actual political bravery. Most of these debates turn into something completely different distilled into tired political ideology and attention-grabbing soundbites that go nowhere.

We don’t need to idealize socialism as a solution to be critical of what capitalism has become. In a world where the income gap is growing and housing has become unaffordable to the common person, something obviously needs to be done.

In my humble opinion, it starts to get a little looney when talk of reducing income inequality and limiting the political influence of technocrats and billionaires becomes some sort of ideological tug of war. These terms are used more as a hindrance than a help these days, and get in the way of the problems that plague us. When that debate turns into Capitalism vs. Socialism, everyone loses.

The problem: We’re human beings. We love categories, and need to put everything into its nice little box so we can understand it and transmit it to others. Whether it’s as harmless as a music or film genre, or as explosive as a political ideology, it seems we can’t avoid that process.

Life defies categorization, though. It breaches borders and moves beyond language. Countries like Sweden and Norway aren’t purely socialist, any more than the U.S. operates as a raw, unchecked free market.

The answer, as always, is more complicated, and nuanced than any category or simplified ideology can communicate.