Posted by Ilya Somin:
When and Why did the Federation Turn Socialist? - A Question I Hope Will be 
Answered in the New Star Trek Movie:
http://volokh.com/archives/archive_2009_05_03-2009_05_09.shtml#1241844798


   Peter Suderman gives [1]a positive review to the new Star Trek movie,
   but notes that it focuses more on personal issues than political ones.
   It will be interesting to see the young Kirk, Spock, and McCoy. But I
   hope the movie answers an important question about that has always
   perplexed me about the Star Trek universe: When and why did the
   Federation turn socialist?

   As I explained in[2] one of my most widely read articles, Star Trek's
   Federation (or at least Earth) is definitely socialist by the time of
   the New Generation series, and probably the time of the original
   series that focused on the Enterprise commanded by Captain Kirk. By
   "socialist," I mean an economy where all large enterprises are
   controlled by the state, not merely a market economy where there is
   government regulation or a welfare state. Despite Republican rhetoric
   to the contrary, Barack Obama is not a socialist; but he would be one
   if he sought to nationalize all private enterprise and abolish the use
   of money, as Star Trek's Federation seems to have done.

   By the time of the original series, the Federation already lacks any
   kind of currency (which is necessary to run a market economy), and all
   large enterprises seem to be government-owned; this is even more
   clearly the case in TNG. However, Star Trek's future Earth wasn't
   always that way. In [3]Enterprise, the series set in the period just
   before the founding of the Federation, we see many private firms still
   in existence, including even privately owned space colonies and
   interstellar freighters. And Earth still has currency at that time.
   Thus, the Federation's transition to socialism probably took place
   [4]sometime between 2161 (the end of Enterprise and the founding of
   the Federation) and 2245 (the beginning of Kirk's "five year mission"
   in the original series). The new Star Trek movie, which covers the
   days of Kirk's youth, is set right in the middle of the transition
   period (the early 2200s). So what caused the transition to socialism
   during that time? Was there a sudden violent socialist revolution, as
   happened in Russia in 1917? Or was there a gradual transition caused
   by a slow but inexorable growth of government until it gradually took
   over the entire economy? [5]Bryan Caplan points out that the Earth
   portrayed in the new movie seems to have experienced very little
   economic growth over the previous two centuries. That suggests a slow
   transition over a long period of time. The low growth could be the
   result of gradually increasing government control choking off the
   private sector. A sudden socialist takeover would presumably leave
   intact much of the technological infrastructure built up by the market
   over the previous centuries.

   Obviously, the most likely answer to my question is that the
   developers of the TV series' and movie simply didn't think very hard
   about developing a realistic economic and political history for Earth
   and the Federation. However, the issue is of more than pedantic
   interest. Star Trek is a cultural icon watched by tens of millions.
   Many more people will derive their vision of what the future should be
   at least partially from Star Trek than from reading any kind of
   serious scholarship. [6]Law professor Benjamin Barton wrote that "no
   book released in 2005 will have more influence on what kids and adults
   around the world think about government than The Half-Blood Prince [of
   the hugely popular Harry Potter series]." Similarly, no nonfiction
   book of the last few decades is likely to have more influence on how
   people see the future than the Star Trek series. If Star Trek
   continues to portray a socialist future as basically unproblematic,
   and even implies that a transition to full-blown socialism can be
   achieved without any major social trauma, that is a point worth
   noting.

   With rare exceptions, the Star Trek franchise has been far too blase
   in its portrayal of future socialism and its implications. After all,
   [7]socialist regimes have been responsible for the death and
   impoverishment of millions. There has never been a society that
   combined full-blown socialism with prosperity or extensive
   "noneconomic" liberties for the population. And there has never been a
   transition to socialism without large-scale repression and mass
   murder. If Star Trek's writers want to posit a new form of socialism
   that somehow avoids the shortcomings of all previous ones, they should
   at least give us some sense of how this new and improved socialism
   escaped the usual pitfalls. Had a similarly prominent pop culture icon
   been equally obtuse in its portrayal of fascism or even milder forms
   of right-wing oppression (e.g. - by portraying a rightist military
   dictatorship that seems to work well and benefits the people greatly
   without any noticeable loss of personal freedom), it would have been
   universally pilloried.

   Despite this criticism, I still like many things about Star Trek, and
   I certainly think it is often fun to watch. Political ideology is not
   the only noteworthy aspect of a science fiction universe, or even the
   most important. I don't ask that the producers of Star Trek
   incorporate my political views into the series. I do wish, however,
   that they would consider the implications of their own more seriously.

   UPDATE: I'm sure various readers will claim that socialism in Star
   Trek works well because they have transporters and replicators, which
   supposedly eliminate all economic scarcity. If resources are
   completely unlimited, the argument goes, it doesn't matter if they are
   used inefficiently. But as I pointed out in [8]this post, there is in
   fact economic scarcity in the Star Trek universe, because not
   everything can be replicated (e.g. - power sources for starships and
   replicators themselves). Moreover, the Federation and other nations in
   that universe wage war over the control of planets and other assets,
   which implies that they can't be replicated either. It's also worth
   noting that replicators seem to be a government monopoly in the
   Federation, at least on Earth (I don't think we ever see a privately
   owned replicator owned by a human Federation citizen). If resources in
   the Star Trek world really were completely unlimited, most of the
   series would make no sense. There would be no point to colonizing new
   planets and the characters could get out of any tight spot simply by
   replicating anything they might need.

References

   1. http://reason.com/news/show/133384.html
   2. 
http://article.nationalreview.com/?q=NmM4Zjg3YjlmZDI5OTZkNmRmNDg4MTRhMmE4MjM0ZmQ=
   3. http://www.startrek.com/startrek/view/series/ENT/index.html
   4. http://en.wikipedia.org/wiki/Timeline_of_Star_Trek#22nd_century
   5. http://econlog.econlib.org/archives/2009/05/the_present_and.html
   6. http://www.michiganlawreview.org/archive/104/6/Barton.pdf
   7. http://www.hawaii.edu/powerkills/20TH.HTM
   8. http://volokh.com/posts/1190182117.shtml

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