Quora Answer: Why is Singapore “Socialist” When Its Government’s Spending Relative to GDP is Less Than Most Western Democracies?

The following is my answer to a Quora question: “Why do many sources describe Singapore as ‘socialist’ when its government spending, relative to the GDP, is less than most Western democracies?”

Singapore is socialist democratic.  In principle, socialism here is as opposed to libertarianism, where the needs of society are held to be more important than the needs of the people.  In terms of economics, the system is very much a hybrid form of capitalism.  The Singapore government, through its organs of state, and interests in many companies, controls the levers of the economy, which is the socialist aspect.  However, prices are still regulated by the market.  This is not a command economy.

Government spending relative to GDP is not an adequate measure of whether a government is socialist.  This considers, for the most part, direct government spending relative to GDP.  Governments have other means to intervene in an economy, and shape it.  There are also many avenues of indirect spending.  The Wall Street bailouts are an example.  The sums involved were significant.  But no one is going to characterise the American government as socialist.  That would be simplistic.