Participatory Fascism
By Robert Higgs | Tuesday October 30, 2012 at 2:11 PM PDT
I continue to encounter many discussions in which the author or speaker bemoans the economic order’s drift toward socialism or, in some cases, its actual existence as such. If this characterization were simply a matter of linguistic imprecision, it might not matter much. But it is much more than a matter of terminology, because one’s understanding of the nature of our current economic order hinges on how we characterize it.
Socialism is a system in which all the major means of production are owned and operated by the state. Except perhaps for small firms or farms, all productive enterprises are state enterprises. All natural resources belong to the state. All resources are allocated and employed as the state dictates, insofar as its dictates can actually be carried out in practice (all such systems display much slack between orders given and actual conduct on the ground, owing to corruption and attempts to “fix” flaws embedded in the state’s overall plan).
Obviously the economic order that prevails in the economically advanced countries is not socialism. Indeed, these systems are commonly called capitalistic or market-oriented, notwithstanding the many types of government intervention that pervade their markets—various taxes, subsidies, direct government production, and regulations galore. Some people refer to these systems as “mixed economies,” which at least helps us to recognize that they are not market economies in any pure sense, not even in an approximate one. But in calling them mixed economies, we gain no insight into their nature or operation.
For thirty years or so, I have used the term “participatory fascism,” which I borrowed from my old friend and former Ph.D. student Charlotte Twight. This is a descriptively precise term in that it recognizes the fascistic organization of resource ownership and control in our system, despite the preservation of nominal private ownership, and the variety of ways in which the state employs political ceremonies, proceedings, and engagements—most important, voting—in which the general public participates. Such participation engenders the sense that somehow the people control the government. Even though this sense of control is for the most part an illusion, rather than a perception well founded in reality, it is important because it causes people to accept government regulations, taxes, and other insults against which they might rebel if they believed that such impositions had simply been forced on them by dictators or other leaders wholly beyond their influence.
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