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ARE MODERN AMERICAN LIBERALS SOCIALISTS OR SOCIAL DEMOCRATS?
Published online by Cambridge University Press: 31 May 2011
Abstract
This paper answers the title question, “Yes,” on both counts. The first part of the paper argues that modern liberals are socialists, and the second part argues that they are also social democrats. The main idea behind the first argument is that the state has effectively taken control of the incidents of ownership through its taxation, spending, and regulatory policies. The main idea behind the second argument is that the institutions of social democracy are replicated by the institutions favored by modern American liberalism. Specifically, the takeover of the American healthcare system, Social Security, employers' mandatory contributions to unemployment insurance, and workers' compensation insurance replicate the institutions of social democracy.
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- Copyright © Social Philosophy and Policy Foundation 2011
References
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9 The benefits of tax shielding do not accrue entirely to consumers of medical care and education. Providers capture some of the benefits by raising prices. When tax shielding for certain categories of goods or services is instituted, the demand curve shifts to the right, since consumers are paying for these goods or services with cheaper dollars. The public choice analysis is that provider groups are the driving force behind all, or nearly all, forms of tax shielding.
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31 Ibid.
32 Ibid.
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