The term "socialism" is often used to refer to an economic system characterized by state ownership of the means of production and distribution. Especially during the Great Depression, many socialists considered Soviet-style planning a remedy to what they saw as the inherent flaws of capitalism, such as monopolies, business cycles, unemployment, vast inequalities in the distribution of wealth, and the exploitation of workers (Socialism (http://en.wikipedia.org/wiki/Socialism)."

Americans, however, felt differently. Americans were raised in a nation that prides itself on the American dream. The entire American Dream is based in the belief that if one works hard, treats people fairly and strives for success they will achieve it.

Millions of immigrants come to America annually for the purpose of obtaining the American Dream that they have heard so much about back in their homeland.

Another element in the failure for socialism to take hold in the United States dates back to the early 1900's when socialism and communism were interchangeable for many and the fear of communism was gearing up.

Following World War I the U.S. went through a period of fear and paranoia when it came to communism or socialism commonly called the Red Scare (Zionism, socialism and United States support for the Jewish colonization of Palestine in the 1920s Arab Studies Quarterly (ASQ), Summer, 1996 by Lawrence Davidson (http://findarticles.com/p/articles/mi_m2501/is_n3_v18/ai_19129728).

It was an expression of the widespread anxiety brought on by a war that had dragged the U.S. into European affairs (Zionism, socialism and United States support for the Jewish colonization of Palestine in the 1920s Arab Studies Quarterly (ASQ), Summer, 1996...

America began to attribute all that was considered dangerous and evil to the Soviet Union and therefore to the socialist party. At the same time, those who had suffered the war in Western Europe and were concerned about how to rebuild when it was over were more than willing to turn over the bulk of decision making to the government which under socialist rule promised that no one would be left behind.
CONCLUSION

Thus far in America, socialism has been rejected by the American people. As long as the American Dream remains the pot at the end of the rainbow for the millions who hear about America socialism will most likely remain a theory that is popular elsewhere.

While Western Europe struggled with its identity and its need to rebuild following the wars it was involved in the idea seemed feasible and the concept gained popularity and a signficant measure of success for many decades.