China, Russia, and other examples of failed socialism aren’t socialism at all

Let's set aside electoral politics for now and focus solely on democratic socialist policies. Helpfully, we have a country that very closely approximates the democratic socialist ideal. It's a place that is not only very far from a hellish dystopia, but also considerably more successful than the United States on virtually every social metric one can name.

I'm talking about Norway.

As I explain here, democratic socialism is a political tradition aiming broadly at democratic control of the economy, achieved through electoral processes. In concrete terms, that generally means a completed cradle-to-grave welfare state plus democratic ownership of big swathes of the economy through mechanisms like a social wealth fund or state-owned enterprises. Importantly, this definition rules out authoritarian systems like the state socialism seen in the Soviet Union. Democracy means at a minimum regular, free, and fair elections, where a conservative party has a real chance of victory.

On the policy side, American conservatives have one international example in their case against democratic socialism: Venezuela. That country is ostensibly socialist and undergoing a severe economic crisis — so bad they're running out of toilet paper, says Tucker Carlson — and therefore leftism always causes economic disaster. The initial problem with this argument is that Venezuela is not a real democracy, as President Nicolas Maduro has been blatantly rigging constitutional and electoral processes to cling to power. Venezuela may embrace socialism, but it definitely doesn't embrace democratic socialism.

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A more important rejoinder to this argument is Norway (and the other Nordic countries to a lesser extent). Norwegian workers are heavily protected, with 70 percent of workers covered by union contracts, and over a third directly employed by the government. The Norwegian state operates a gigantic sovereign wealth fund, and its financial assets total 331 percent of its GDP (as compared to an American figure of 25 percent). Meanwhile, its state-owned enterprises are worth 87 percent of GDP. Of all the domestic wealth in Norway, the government owns 59 percent, and fully three-quarters of the non-home wealth (as most Norwegians own their home).

Reliable statistics on the Venezuelan economy are hard to come by, but Norway is unquestionably more socialist than Venezuela according to the above definition. Indeed, it is considerably more socialist than supposedly-communist China, where only 31 percent of national wealth is owned by the state.