Examples Of Socialism In America: Low-Cost Living

America has a mixed economy; it features socialism and capitalist characteristics. The mix of economic systems offers protection to private properties. Plus, it guarantees a certain level of economic freedom in capital use. 

The government also can participate in its economic activities to achieve its social aims. 

Today the socialism topic is increasingly popular. Many Americans think the country should adopt socialism to spur more significant equity and social progress. 

People want a free college education, universal healthcare, and more. There are several types of socialism in the United States; let’s find out more. 

Examples Of Socialism In America

1. Medicare 

All American citizens have heard about Medicare. It’s a health insurance program that ensures the elderly get proper medical and other medical costs.

Most individuals above 65 years have access to Medicare. At the same time, those under 65 years receive disability benefits from this program. 

Today Medicare covers more than 55 million American citizens.

2. Public Transport

Public transport is so affordable in the United States. It’s always the best available transport option for US residents. The issue about US public transport is underfunding. 

It results in low ridership because of poor quality service. It forces low-income earners to purchase cars, and this increases carbon emissions. 

The federal government funds a small percentage of public transport, including rail and nation bus services. It’s the local and state governments that fund most percentage. 

They offer intergovernmental grants that supplement direct taxes from the transit agencies, fees, and fair. 

3. Obama Care

The Obama care is also known as ACA, and it became law in 2010. It aims to offer health insurance to all American citizens at an affordable rate. 

The Obama care also protects those using insurance companies. It prevents the insurance companies from increasing patient costs and restricting care. 

The number of Americans that have benefited from the care is more than one million. Most of them are low-income earners and unemployed. 

Some do not work due to different disabilities, and others can’t secure health insurance because of underlying health conditions such as chronic disease. 

The Obama care has had many controversies despite having positive effects or outcomes for Americans. 

4. Social Security

It is known as the SSDI, which stands for Social Security Disability Insurance. The SSDI ranks among the most extensive federal assistance programs. 

The program offers financial support to those with disabilities. 

Millions of Americans do apply for the program yearly. It makes it hard for the insurers to make a favorable decision regarding disability claims. 

The denial rates have increased in recent years to 60%. Therefore many disabled applicants are unsure of the benefits and are weighing between pursuing and not pursuing their rightful benefits. 

5. Library

In the US, the local governments primarily fund and run public libraries. 

6. Food Assistance

Today the food stamp program is known as SNAP, and it’s under the federal government. 

It offers food assistance to low-income earners and is under the department of agriculture. 

However, it has different benefits, and the different US departments distribute them, such as health and human services and division of social services. 

The SNAP benefits have roughly reached more than 40 million Americans to date. 

Another program food assistance program from the government is CACFP. CACFP is simply a child and adult care food program. 

It’s administered under the department of agriculture. 

The government provides food for children and adults in daycare. According to the department of agriculture report, more than 100,000 adults and 3 million children have benefited from the program. 

The program is also available for those who have physical and mental challenges. 

7. Public Hospitals

The United States has several public-funded hospitals. The state and local governments fund 19% of the local hospitals. The federal government has about 209 hospitals under it. 

Any public hospital is usually fully funded by the federal, state, or local governments. They rely on taxpayers’ money to fund various health care initiatives. 

Most public hospitals offer limited services because of inadequate funding. Services at public hospitals are cheaper, making them ideal for low-income earners and those with restrictive insurances. 

8. Federal Reserve Bank

It is also known as Fed. The bank was founded in 1913 by congress. 

The federal bank uses several levers to ensure the nation’s economy is stable and healthy. The actions it takes hugely influences the United States economy. 

9. Medicaid 

Medicaid program is widespread and is both under the state and federal government. It helps those with low incomes access quality health care and minimal costs. 

It offers certain benefits that aren’t in Medicare. Medicaid and Medicare have differences. Medicaid explicitly covers the medical costs for low-income American citizens, while Medicare offers health coverage to the elderly. 

Amazing there are dual health plans for those under both plans, Medicaid and Medicare. Medicaid provides health insurance to more than 74 million disabled and low-income Americans. 

To qualify for Medicaid, you must be a US citizen or a qualified non-citizen. It includes citizens with low-income, their children, and those with specific disabilities. 

10. Education 

The federal, local, and state governments fund education in the US. Primary and secondary education is free and compulsory in America. 

Most children from both low and high-income families attend public schools in America. 

The significant part is that public schools have after-school programs. You should note that the government also subsidizes private schools after school programs. 

What Is Socialism?

Many people find it hard to understand socialism. Socialism is simply a system where the government or group offers everything to its citizens. 

Here various institutions such as hospitals, schools, etc., are owned by the public. It is also known as common ownership.

Under socialism, the government regulates most things, from wages to healthcare.

Features Of Socialism  

To better understand socialism, you need to understand the different features of socialism. Here are the most popular. 

  • Public ownership: There’s no private ownership here, and the government controls all aspects of the economy. 
  • Egalitarian society: in this setting, all people have social equality. 
  • No competition: society calls for cooperation within the government.
  • States regulate price control: in this type of society, the government controls all the prices since there’s no stock market. 
  • Cover basic needs: the government funds and thus provides all the basic needs such as education, healthcare, and transport. 

History Of Socialism In America

There was a rise in socialist’s movements in America in the 19th century. The first social movement in America was known as Utopian Socialism. 

Its members tried to develop several socialist societies to illustrate their ideologies’ virtues. Examples of the socialist societies were Brook Farm, Shakers, and New Harmony. 

Harmony was in southwestern Indiana. It was founded in 1825 by a wealthy industrialist, Robert Owen, of Welsh origin. The colony collapsed after a short period because of ideological differences. 

The other society was Brook farm, founded by a section of the utopians known as transcendentalist utopians. That was in 1841. 

The community wasn’t financially stable and thus could not fund its socialist programs. In the process, many members left, and it did dissolve in 1847. 

Several other socialist communities sprung up but couldn’t hold for long because of various challenges such as financial instability and ideological differences. 

In the mid-1880s, socialism became much stronger. Different associations sprung up and were strictly following the Lasallian and Marxist ideologies. The associations included the workingmen’s part of the US etc. 

Types Of Socialism 

There are several types of socialism, and each has its unique set of ideologies.

Revolutionary socialism 

Here it’s workers that control all production factors through a centralized structure. It’s known as revolutionary since the workers usually use force or struggle to control. 

Green socialism 

It’s all about the environment; this socialism promotes local food production and environmental protection.

Democratic socialism 

Here the elected government manages the economic resources and forces.

Advantages of Socialism  

No discrimination 

There is no discrimination in a socialist system; it’s highly discouraging. Each citizen chooses a job that better fits their skills, and every individual is free to pursue their passion. 

No exploitation

In a socialist society, there’s no exploitation since all people have equal rights to healthcare, welfare, education, etc. People are opinionated and can freely air views on the distribution of resources.

Reduced unemployment

In a socialist society, the government controls the economy. Therefore it can create jobs for all skill sets and classes. 

The education system focuses on societal needs like producing employees such as teachers, doctors, etc. 

Production and price regulation 

The government controls the economy, thus ensuring that services and goods are sufficient for the citizens. The government directs and regulates the production, ensuring the goods aren’t excess or insufficient.


America is a capitalist democracy but has socialist elements. The private individuals control a section of the economic force. 

However, the government also intervenes to ensure that its citizens live comfortably. Some of the socialist programs by the government are general welfare, education, and healthcare. 

John Taylor
John Taylor
John Taylor is a seasoned writer with more than 10 years of experience as a professional. He has written professionally for many different organizations, such as The Atlantic and the Boston Globe. John can write on any topic you need him to cover, from business writing to creative nonfiction pieces. His portfolio speaks for his skills; he's not only an experienced writer but also an excellent editor and researcher!


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