At a purely theoretical level, I do see how the ideological ideal of capitalism and the ideological idea of socialism are incompatible.
But on a practical level in the United States, judging from the grassroots socialists and grassroots Libertarians I’ve talked to or read, it’s always struck me that, in terms of actual platforms, (what they’d actually like to see done in the near term), the goals of both groups are about 2/3rds identical or mutually achievable.
Speaking only in terms of political pragmatism, then, I find it highly surprising (and sad) that the two camps have not been able to form a political coalition to achieve the 2/3rds of their goals that are mutual goals.
A perfect, contemporary example is the VAT tax which is currently being discussed in the U.S. Socialists oppose the VAT tax because it’s regressive, and Libertarians oppose the VAT tax because it’s another tax and will hurt the economy. I predict it will happen anyways, and there won’t be much cooperation between socialist (leaning) and libertarian (leaning) groups in opposing it in a unified manner.
In both groups, libertarians and socialists, goals that seem to me to be largely shared by both groups include: cutting the overseas military budget, ending most “corporate welfare,” ending the “drug war,” ending ‘foreign aid’ to repressive governments, forcing the government to respect the privacy rights of citizens, ending most domestic agricultural subsidies, ending U.S. membership in the WTO, IMF and World Bank, repealing the “health insurance mandate” and Federal interference in education like “No Child Left Behind”. Although few make it a main issue, many socialists can be brought around to supporting ending specific regulations which favor big business over smaller businesses and ending the Federal Reserve as well.
It strikes me that the above list constitutes at least half of what the U.S. Federal government does, maybe more.
It is true that socialists and libertarians usually diverge around the issue of social spending: most socialists want more, most libertarians want less.
But so what? What is preventing both groups from making a realpolitik political coalition despite this? Specifically, both groups could agree that their shared platform will consist of fighting against government action (and the taxes involved) that both groups disapprove of. The socialist wing could agree to only support social spending increases that derive from a fraction of a previously eliminated program. Say, for every dollar of taxing/spending eliminated, the coalition will support 80% of the cut going to tax cuts and the other 20% going to increased social spending. Both groups would seem to be getting what they want under such a scenario; lower taxes, a more robust and freer economy, and a stronger social(ist) safety net at the same time.
The main group that would lose out would be the Corporatist elements of society. Indeed, the main beneficiary of grassroots libertarian/socialist ideological conflict seems to me to be Corporatism.
Now, if the shared goals of both groups were at some point largely achieved, I could see the coalition rightfully fracturing. I could also imagine a society where a free-market competition for fulfilling human wants is underpinned with a socialist safety net which guarantees minimal human needs, and this being largely satisfactory to both groups… this is basically what most of the developed world has, although most of the developed world is also afflicted with corporatism.
Still, I’ve seen Green Party activists and Libertarian Party activists unable to cooperate to achieve ballot access, for example, resulting in mutual failure for both groups. I’ve seen a similar thing among the anti-state wings of both groups, such as the absurdity of self described anarchist/socialists decrying libertarian anti-tax activists, or self described libertarians decrying the protests of self-described anarchist-socialists as likely government agents. The desire for ideological purity on both sides seems to be sabotaging the achievement of any goals by either side, even mutual goals.
“The enemy of my enemy is my friend” is a mistranslation. The last word is properly “ally.”