If we take a look at history, it is evident that socialism never became powerful in the United States the same way as it did in Europe. The first Socialist Party in America started in 1900 and progressed dramatically until 1912 under the leadership of Eugene Debs. After that period, the socialist movement in the United States seemed to gradually weaken, and never gained dominance and political power as it did in Russia, Germany and different parts of Europe.
Eugene Debs, claiming to be a Marxist, never really stressed the core Marxist theories such as class struggle and the dictatorship of the proletariat. Instead, he spoke more about poverty and injustice. He also spoke boldly against U.S. involvement in World War 1. As a result, the socialist party temporarily gained massive support from the Americans, not because the people accepted the Socialist ideal, but because they admired Debs firm stand against the war.
The blow for the socialist party in America came in 1917, when the Espionage Act was passed and implemented under the Wilson Administration. Under this act of legislation, jail sentences of 10 to 20 years were provided to anyone convicted of impeding military recruitment for the war, and those that discouraged disloyalty to America. The Espionage Act was further strengthened by the Sedition Act of 1918, which provided severe penalties to those who publicly criticize the U.S. government, its flag, Constitution, and military uniform. The government instantly made at least 1,500 arrests. Among those arrested was Eugene Debs himself.
The socialist party continued to lose strength by 1920, because the government strongly suppressed it. The socialists and communists alike, gained bad reputation during World War 1. Anti-socialist sentiments began to surface. News about the Bolsheviks power grab in Russia, a series of bombings in America, followed by labor strikes, led to public fear and general disapproval of socialism. This was known as the Red Scare (a term used for anti-socialist sentiments which surfaced during that period). Socialist members and suspected Communists were thrown to prison, and some were deported to their home countries.
Socialism did not appeal to the typical American worker. Instead, the American socialist party garnered support from the higher class of society as well as the intellectuals. This led to the gradual decline of Marxist ideology in the US, because in order for a true socialist system to thrive, it needs to be supported mainly by the workers. During the early 1900s, America was basically a capitalist society. Capitalism caused the US to gain strength during the dawn of the new century, which led the American people to think that socialism was absurd.
In contrast, if we take a look at Russia during the same point in history, their Socialist Party mainly appealed to the workers because most of the labor population was discontented, poor and wallowing in hunger. To them, socialism seemed to be a pillar of hope. This was not true in the United States. As we have said earlier, America is mainly a capitalist society.
Socialism wasnt acceptable to American society because the people of this nation believed in the desire for success. A popular writer, named F.A. Hayek, expressed that socialism strips man of his desire for success.
During the Cold War, the socialist party seemed to have disappeared in America, when its membership fell to less than 2,000 members. This was obviously due to anti-Russian political sentiments, the strengthened nationalism of American citizens after World War II, and Americas booming economy. The socialist party became almost negligible to the American people, and entirely lost its dominance as a political party.
Socialism also failed to take root and develop in the United States because of the nations Puritan, Christian and Protestant lineage. The American dream was not to achieve the dictatorship of the proletariat (a government that basically represents the workers, and where the workers own the means of production), but to achieve manifest destiny (worldwide dominance in all aspects similar to that of Israels dream to conquer the Promised Land). If we take a closer look at the structure of Socialist ideology, it cannot totally fit in the American way of thinking. Americas two party system also prevented the rise of other political parties. Its either you are a Republican or Democrat. It has always been that way for many decades.
So in summary, the United States never saw the development of a powerful Socialist party because during the height of Eugene Debs campaign to popularize socialism, the US government heavily repressed it. The terror of the two World Wars also left a bad reputation of socialism in the minds of Americans. The Cold War finally killed hopes of the socialist party to regain its short lived influence in the United States.