Alan Blinder on Socialism, and the Obama Administration

In a previous post, "Amartya Sen on Capitalism," I noted that President Clinton would be an adherent of capitalism under Sen's definition. This post notes that Alan Blinder, a member of President Clinton's first Council of Economic Advisors, and a former Vice Chairman of the Board of Governors of the Federal Reserve System, does not count President Obama among the ranks of socialists, and is positive about the administration's early policy actions. His Curriculum Vitae is here. Blinder writes in "Obama Is No Socialist," for the Wall Street Journal that,

Socialism means public ownership and control of businesses, right? So which industries does the president propose to nationalize?

Banking? Well, no. Secretary of the Treasury Timothy Geithner has made it clear that he opposes nationalizing banks, despite much outcry from the political left -- and even some from the right -- to do just that...

What about health care? Doesn't Mr. Obama want "socialized medicine"? No. He wants to reform the current system so that it costs less and covers more people.

In the article, he supports the administration's budget, tax code changes, and, to a lesser extent, the less explicit financial sector reform. He ends the article,

So where does all this leave us on the road to socialism? If Mr. Obama is able to get all of these proposals through Congress, the U.S. will have a fully private banking system, propped up with temporary government support; a uniquely American health-care system that covers virtually everyone; and a somewhat more progressive income tax.

If this is socialism, then let's make the most of it.