Good article, but Reason's subhead of "this is also known as socialism" is incorrect. This is known as FASCISM. Private industry exists but is directly controlled by politicians.
Socialism describes systems where various goods are declared positive "rights" and everyone is forced to pay for the cost. The government usually ends up administering the socialized services directly. The crudest and most common implementation is to tax the crap out of everyone.
Fascist systems put the government in charge of private industries that remain distinct from the state. The government doesn't "own" the means of production, but strictly controls it. The state is distinct from the private sector but absolutely supreme.
Many deep thinkers of the early 20th Century thought fascism was unbeatable because genius government planners would create better industrial policies than capitalist interests. They also thought it was morally superior because the State is virtuous while capitalism is selfish.
The exact same assertions are made about China today, where the system has become more fascist than communist, no matter what the ruling party calls itself.
The Chinese are gearing up for a century of ideological warfare against the West. They will be pleased to see people like Sen. Warren pushing an ideology so close to theirs on America.
As humanity should have learned, fascism is NOT functionally or morally superior. Political control of the economy is easily corrupted. Rich industrialists become high-ranking Party members and use the State for their own ends.
You don't get panels of geniuses writing brilliant industrial policies that achieve social justice and leave selfish capitalism in the dust. You get idiot politicians running industries they don't understand, controlling the markets instead of LISTENING to them.
As for the moral horror, it flows from a flaw in fascist theory that cannot be corrected: to maintain absolute supremacy over the private sector it controls, the State needs blind loyalty from citizens and scapegoats for its failures.
You will no doubt have noticed that none of the politicians behind Obamacare will own up to their mistakes or take responsibility for its failures. They look for scapegoats. They mutter about greedy doctors and disobedient citizens. They whipped up fear and hatred to protect it.
Fascist states demand reverence for political leaders and unquestioning acceptance of their moral superiority. No rational person would let Elizabeth Warren run an industry, so the populace must be kept in an irrational state of fear and anger.
The political masters of the fascist state work constantly to make themselves seem infallible, the only force capable of defending the people from sinister selfish interests. It always turns violent. There is always street theater to keep the public confused, afraid, and angry.
We should know enough to stay far, far away from fascism, but instead every advanced society wrestles with constant temptation to taste just a little of that toxic brew. We are forever tempted by the vision of a highly ordered, morally superior society.
We want to believe our votes sanctify political power. We'll tame fascism and hold tyranny at bay, because we can always vote the tyrants out of office! Only political discipline can purge capitalism of its inherent selfishness and short-sightedness!
And of course, the people who see themselves as marginalized under free-market democracy dream of marching through the streets and bending the undeservedly privileged to their will. It is a primal human impulse related to our hunger for righteousness.
We should look carefully at the bloody history of fascism and understand those societies also believed they had the firewalls against tyranny and oppression we have today. Resist the temptation of fascism utterly. It's a highly addictive drug that hooks and destroys nations. /end
