Integrationism

There are few truly “Socialist”* economies left in the world, that is, economies in which the State owns and controls all of the means of production and distribution, such as capital, land, factories, etc. Most have failed to meet the needs and expectations of their citizens, and thus have been altered into other forms.

Similarly, there are few purely “Capitalist” economies in the world, that is, “Laissez-faire” economies in which private citizens and corporations own the means of production and distribution and are free of government restrictions. It is a fact of history that private individuals and corporations have brought upon their fellow citizens many financial panics and depressions, life-threatening working and living conditions, fraud, etc. In the words of a contemporary and respected economics professor, Nouriel Roubini, “Laissez-Faire Capitalism Has Failed.”

Because of these historical experiences, the majority of large social groups have discovered that it is best to have a mixture of private and government economic activity. Some services are best provided by governments, such as national defense and administration of justice. Some services may be better served by private undertakings, such as the production and distribution of food and household commodities. In still other cases it has proven necessary or expedient to combine government and private assets to obtain a desired economic benefit.

I have seen these economies referred to as “mixed” economies, but perhaps they deserve to be recognized as a distinct economic system: “Integrationist.” From this perspective, most nations of the world are practicing “Integrationism,” mixing private and public undertakings according to their desires and experiences. Of course, the nations may still be authoritarian or democratic in their political structure, with consequences I have discussed in previous posts.

In my view, the purpose of a democratic government with an Integrationist economic system is, or should be, to ensure that private and public economic activities are effectively and pragmatically regulated, supervised, and evaluated to ensure that all members of the social cooperative will benefit, not just the wealthiest or most powerful among them.

Alex Budarin

*Tea Partiers have bastardized the word “socialist” to refer to any country which has extensive government provisions for citizen well-being.