Tim Wise makes this point about the reactionary right:
Throughout the first six months of his administration, President Obama — perhaps one of the most politically cautious leaders in contemporary history — has been routinely portrayed as a radical by his opponents on the far-right. In particular, persons who have apparently never actually studied Marxism (or if they did, managed to somehow find therein support for such things as bailing out banks and elite corporations) contend that Obama is indeed a socialist. Reducing all government action other than war-making to part of a larger socialist conspiracy, the right contends that health care reform is socialist, capping greenhouse gas emissions is socialist, even providing incentives for driving fuel efficient cars is socialist. That the right insists upon Obama's radical-left credentials, even as they push an Obama=Hitler meme (something they apparently think is fair, since, after all the Nazis were National Socialists, albeit the kind who routinely murdered the genuine article) only speaks to the special brand of crazy currently in vogue among the nation's reactionary forces.
As real socialists laugh at these clumsily made broadsides, and as scholars of actual socialist theory try and explain the absurdity of the analogies being drawn by conservative commentators, a key point seems to have been missed, and it is this point that best explains what the red-baiting is actually about.
It is not, and please make note of it, about socialism. Or capitalism. Or economics at all, per se.
What, then, motivates the right's rancorous broadsides if it is not their fear of a creeping socialism?
…[W]hat differentiates Obama from any of the other big spenders who have previously occupied the White House is principally one thing — his color. And it is his color that makes the bandying about of the "socialist" label especially effective and dangerous as a linguistic trope. Indeed, I would suggest that at the present moment, socialism is little more than racist code for the longstanding white fear that black folks will steal from them, and covet everything they have. The fact that the fear may now be of a black president, and not just some random black burglar hardly changes the fact that it is fear nonetheless: a deep, abiding suspicion that African American folk can't wait to take whitey's stuff, as payback, as reparations, as a way to balance the historic scales of injustice that have so long tilted in our favor. In short, the current round of red-baiting is based on implicit (and perhaps even explicit) appeals to white racial resentment. It is Mau-Mauing in the truest sense of the term, and especially since Obama's father was from the former colonial Kenya! Unless this is understood, left-progressive responses to the tactic will likely fall flat. After all, pointing out the absurdity of calling Obama a socialist, given his real policy agenda, will mean little if the people issuing the charge were never using the term in the literal sense, but rather, as a symbol for something else entirely.
"Racism — the socialism of fools," to use an updated version August Bebel's celebrated aperçu.