When Does It Go "Socialist"?

Owen has a discussion which raises the question "when Socialist?" regarding the US.

Using the El Cheapo Dictionary provided by Yahoo, we find this as the definition of 'socialism.'

1) Any of various theories or systems of social organization in which the means of producing and distributing goods is owned collectively or by a centralized government that often plans and controls the economy.

2) The stage in Marxist-Leninist theory intermediate between capitalism and communism, in which collective ownership of the economy under the dictatorship of the proletariat has not yet been successfully achieved

Since the second definition is rather malleable, let's use the first. The critical language is "is owned...by a centralized gummint..."

GM and Chrysler are not, precisely, "owned" by the Feds, although it's fair to say that with a minority interest the Feds "control" them. There are a few other "owned" entities--AIG and the GSE's, but they are not, strictly speaking, "producing and distributing" goods.

There are a number of other important players which are not exactly "owned" by the Feds, either, but who are under virtual control: Citi, WellsFargo, BofA, M&I, and other large Banks.

More 'controlled' than owned:

...On the very day that the government czar announced that he would cut the pay of companies that received taxpayer bailouts, the Federal Reserve announced that it would start regulating compensation at the thousands of banks that it regulates, as well as American subsidiaries of non-U.S. financial companies. Some state regulators said they planned to issue similar requirements for state-regulated banks not covered by the Fed plan...--Boaz, Cato, quoted by Vox

Setting compensation is not the same as directing quotas in the loan portfolio, however. This move is odious to our 'free market' sensibilities, and in the long run it will be destructive of those Banks unless it is made operative universally. The question for the Banks: CAN it be made universally operative? If so, then only "directed portfolio goals" will have to be implemented.

So.

We're not there yet, but it's not hard to see Moscow from here.