Anyone who advocates that the government should control any portion of production and distribution of goods or services is at a minimum a socialist and at worst a communist.
Socialism is a social and economic doctrine that calls for public rather than private ownership or control of property and natural resources. According to the socialist view, individuals do not live or work in isolation but live in cooperation with one another. Furthermore, everything that people produce is in some sense a social product, and everyone who contributes to the production of a good is entitled to a share in it. Society as a whole, therefore, should own or at least control property for the benefit of all its members.
This conviction puts socialism in opposition to capitalism, which is based on private ownership of the means of production and allows individual choices in a free market to determine how goods and services are distributed. Socialists complain that capitalism necessarily leads to unfair and exploitative concentrations of wealth and power in the hands of the relative few who emerge victorious from free-market competition...
Often times in these types of arguments, people confuse the economic behavior of a government with the type of government. A democracy is a political government either carried out directly by the people (direct democracy) or by means of elected representatives of the people (Representative democracy).
Capitalism, socialism and communism are economic in nature, not a type of government. So kcbigpapa, although Great Britain, Japan, Germany, Switzerland and Taiwan are democratic, the type of economy that they run is socialist.
So when people say that obama is not a socialist, they are either refusing to see that he is advocating the government takeover of a private industry (much like hugo chavez is doing) for the purpose of public distribution of goods/services, or they just don't know what socialism is.
Food for thought: Karl Marx and Friedrich Engels, saw socialism as a transition state between capitalism and communism.