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Archive for the ‘Communism’ Category

Do politicians celebrate the life of Osama bin Laden? Or fondly remember the supposed contributions of Adolf Hitler and his National Socialist Workers Party? Or wax poetic about the memory of Pol Pot?

Maybe in some backwater of the third world, but no politician from a civilized nation would be remotely tempted to say anything nice about these evil people.

So why, then, are some of these clowns falling all over themselves to lionize one of the world’s worst people, the former communist dictator of Cuba? Why would any sentient adult say anything nice about Fidel Castro, a vicious and brutal tyrant who imposed such hardship on his people?

Yet there are people with this perverse degree of moral blindness.

Including the head of the European Commission.

And the Prime Minister of Canada, who actually referred to the former dictator as Cuba’s “longest serving President.” I guess the boy wonder of Ottawa doesn’t understand that you can rule for a long time when you don’t allow free elections. Now you can understand why I am so quick to believe that he’ll say really stupid things.

Almost nobody in the world would recognize the President of Ireland. But since he didn’t like the fact that Ireland’s economy boomed, it’s understandable that he is despondent about the death of a man who did so much to keep Cuba mired in poverty.

And, of course, Jimmy Carter couldn’t resist showing why he was a one-term blunder.

The nutjob leader of the British Labour Party predictably fawned over Castro with a series of laughably inaccurate assertions.

I’m relieved, by the way, that Barack Obama resisted the temptation to say anything overly vacuous about Castro (even if he did say something stupid about Cuba’s totalitarian regime earlier this year). His statement is mostly mush. And even though I have my doubts about Trump, his statement hit the nail on the head.

But let’s set aside Castro’s brutal treatment of dissidents and denial of basic human rights. Let’s ignore the fact that tens of thousands of people have risked their lives to escape his island prison. And let’s instead look at the economic misery of Cuban communism.

In a column back in 2014, I noted that living standards in Cuba and Hong Kong were identical in the 1950s.

But the two nations then conducted an experiment. Hong Kong chose laissez-faire capitalism while Cuba chose communism.

The result, as you can see in the graph, is that Hong Kong has enjoyed decades of strong growth while Cuba has stagnated.

I’m not alone in noticing the onerous economic cost of Cuban oppression.

This academic article has a devastating summary.

We examine Cuban GDP over time and across space. We find that Cuba was once a prosperous middle-income economy. On the eve of the revolution, incomes were 50 to 60 percent of European levels. They were among the highest in Latin America at about 30 percent of the United States. In relative terms, Cuba was richer earlier on. Income per capita during the 1920s was in striking distance of Western Europe and the Southern United States. After the revolution, Cuba slipped down the world income distribution. Current levels of income per capita appear below their pre-revolutionary peaks.

Now let me make a new contribution to the discussion.

I went again to the Angus Maddison database and decided to compare historical numbers for per-capita GDP, looking at Cuba, Chile, and the world average.

As you can see, Cuba has been a disaster for ordinary people. Living standards used to be near the world average. Now the average Cuban is at half the world average.

Meanwhile, Chileans also had a period of stagnation during their era of statism. But once free-market reforms were adopted, the notion started a lengthy boom and per-capita GDP is now almost twice world average.

That’s the real-world consequence of statism. Deprivation and hardship.

To get an idea what it’s like in a communist prison nation, slaves in the 1800s actually got more food than what Castro allowed when the government took control of food production and distribution.

The good news, so to speak, is that the rationing has moved from starvation levels to hunger-and-misery levels.

The Guardian has a summary of the current system.

Every Cuban family registers with a local supply store, where they can use a libreta or ration book. This typically provides about 10kg (22lb) of rice, 6kg of white sugar, 2kg of brown sugar, 250 millilitres (1 cup) of cooking oil, five eggs and a packet of coffee per person per month, along with 2kg of meat (usually chicken) every 10 days, a bun every day and a bag of salt every three months. Milk is provided for pregnant women and children under seven years of age. The basic libreta products are guaranteed, but they are not enough – so people often have to travel to several places on several different days to make up the shortfall.

Not as bad as 1962, but still a miserable life.

Here are portions of a very appropriate obituary in the Washington Post by a Yale professor.

One of the most brutal dictators in modern history has just died. Oddly enough, some will mourn his passing, and many an obituary will praise him. Millions of Cubans who have been waiting impatiently for this moment for more than half a century will simply ponder his crimes and recall the pain and suffering he caused. …deceit was one of Fidel Castro’s greatest talents, and gullibility is one of the world’s greatest frailties. …Many intellectuals, journalists and educated people in the First World fell for this myth, too — though they would have been among the first to be jailed or killed by Castro in his own realm — and their assumptions acquired an intensity similar to that of religious convictions. Pointing out to such believers that Castro imprisoned, tortured and murdered thousands more of his own people than any other Latin American dictator was usually futile. His well-documented cruelty made little difference.

He highlights 13 reasons to despise Castro. Here are the one that stood out to me.

●He was responsible for so many thousands of executions and disappearances in Cuba that a precise number is hard to reckon.

●He brooked no dissent and built concentration camps and prisons at an unprecedented rate, filling them to capacity, incarcerating a higher percentage of his own people than most other modern dictators, including Stalin.

●He condoned and encouraged torture and extrajudicial killings.

●He forced nearly 20 percent of his people into exile, and prompted thousands to meet their deaths at sea, unseen and uncounted, while fleeing from him in crude vessels.

●He outlawed private enterprise and labor unions, wiped out Cuba’s large middle class and turned Cubans into slaves of the state.

●He persecuted gay people and tried to eradicate religion.

●He censored all means of expression and communication.

And the Caracas Chronicles also summed it up nicely.

Has any other Latin American done as much damage in a single lifetime as Fidel Castro? It’s…not even close. From his roots as a student gangster and two-bit murderer in Havana in the 40s, through a succession of catastrophes on four continents, Fidel Castro punched far, far above his weight. The guy who pleaded with Khrushev to start a nuclear holocaust, who sent tens of thousands of Cuban farm kids to dole out lead in a crazy, murderous war in Angola, thousands to attack Israel in the Yom Kipur War, thousands more to stand with the genocidal communist Mengistu regime in Ethiopia, who tried and failed to destabilize Bolivia, Argentina, Venezuela, el Salvador, Congo, Sao Tome and Principe, Guatemala, who tried and succeeded in destabilizing Nicaragua, Chile, Granada and — alas — Venezuela is finally, finally dead at 90.

Keep all this in mind the next time you hear some leftist says something nice about Castro. Or the racist murder Che Guevera.

P.S. For what it’s worth, Castro did have a late-in-life epiphany about the failure of communism.

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Communism should be remembered first and foremost for the death, brutality, and repression that occurred whenever that evil system was imposed upon a nation.

Dictators like Stalin, Mao, Pol Pot, the North Korean Kim dynasty either killed more than Hitler, or butchered higher proportions of their populations.

But let’s not forget that communism also has an awful economic legacy. The economic breakdown of the Soviet Empire. The horrid deprivation in North Korea. The giant gap that existed between West Germany and East Germany. The mass poverty in China before partial liberalization.

Today, let’s focus on how communism has severely crippled the Cuban economy.

In a column for Reason a few years ago, Steven Chapman accurately summarized the problems in that long-suffering nation.

There may yet be admirers of Cuban communism in certain precincts of Berkeley or Cambridge, but it’s hard to find them in Havana. …the average Cuban makes only about $20 a month—which is a bit spartan even if you add in free housing, food, and medical care. For that matter, the free stuff is not so easy to come by: Food shortages are frequent, the stock of adequate housing has shrunk, and hospital patients often have to bring their own sheets, food, and even medical supplies. …Roger Noriega, a researcher at the conservative American Enterprise Institute in Washington, notes that before communism arrived, Cuba “was one of the most prosperous and egalitarian societies of the Americas.” His colleague Nicholas Eberstadt has documented that pre-Castro Cuba had a high rate of literacy and a life expectancy surpassing that in Spain, Greece, and Portugal. Instead of accelerating development, Castro has hindered it. In 1980, living standards in Chile were double those in Cuba. Thanks to bold free-market reforms implemented in Chile but not Cuba, the average Chilean’s income now appears to be four times higher than the average Cuban’s. …In its latest annual report, Human Rights Watch says, “Cuba remains the one country in Latin America that represses virtually all forms of political dissent.”

The comparison between Chile and Cuba is especially apt since the pro-market reforms in the South American nation came after a coup against a Marxist government that severely weakened the Chilean economy.

Chapman points out that the standard leftist excuse for Cuban misery – the U.S. trade embargo – isn’t very legitimate.

The regime prefers to blame any problems on the Yankee imperialists, who have enforced an economic embargo for decades. In fact, its effect on the Cuban economy is modest, since Cuba trades freely with the rest of the world.

Since the U.S. accounts for nearly one-fourth of world economic output, I’m open to the hypothesis that the negative impact on Cuba is more than “modest.”

But it still would be just a partial explanation. Just remember that communist societies have always been economic basket cases even if they have unfettered ability to trade with all other nations.

Writing for the Huffington Post (hardly a pro-capitalism outfit), Terry Savage also explains that Cuba is an economic disaster.

…the economic consequences of a 50-year, totalitarian, socialistic experiment in government are obvious today. Cuba is a beautiful country filled with many friendly people, who have lived in poverty and deprivation for decades. Socialism in its purest form simply didn’t work there. I was immediately reminded of that old saying: “Capitalism is the unequal distribution of wealth – but socialism is the equal distribution of poverty.” Once-magnificent buildings are literally crumbling, plaster falling and walls and stairways falling apart, as there are no ownership incentives to maintain them – or profit potential to incent their preservation. …Every Cuban gets a ration book and an assigned “bodega” in which to purchase the low-cost, subsidized food. The one I visited looked like an empty warehouse, with little on the shelves. If the rice, beans, eggs, and cooking oil are not in stock, the shopper must return the following week. Allowed five eggs per month, the basics barely cover a starvation existence. …the economic results of their 50-year rule have been abysmal. Cuba became a protectorate of the old Soviet Union (remember the Cuban missile crisis) -and that worked until the early 1990s, when the USSR fell apart. No longer receiving aid from its protector, Cuba entered a long period now remembered as “the special times” – when Cubans were literally starving, when there was electricity only two hours per day, and people turned any patch of dirt into a garden to survive. Cubans bear the scars of that terrible time, and for many the current situation is still not that much better.

So Cuba was a basket case that was subsidized by the Soviet Union. When the Evil Empire collapsed and the subsidies ended, the basket case became a hellhole.

The good news, if we’re grading on a curve, is that Cuba has now improved to again being a basket case.

But that improvement still leaves Cuba with a lot of room for improvement. It may not be at the level of North Korea, but it’s worse than Venezuela, and that’s saying something.

My friend Michel Kelly-Gagnon of the Montreal Economic Institute echoes the horrid news about Cuba’s economy.

As anyone who has spent any amount of time in Cuba outside the tourist compounds can tell you, socialism, particularly the unsubsidized version that we have seen since the fall of the Soviet empire, has been a disaster. …The hospitals which supposedly offer free care only do so quickly and effectively to the politically connected, friends and family of staff members, and to those who pay the largest bribes… That “free” university education that many Cubans get in technical fields is rarely worth much more than what students pay for it. There are few books in the country’s schools, and those that can be found are years, if not decades old. The country’s libraries are empty… The guaranteed jobs that all Cubans have are fine, until you realize that the average salary is in the range of $20 a month. Worse, the food and other staple allotments that Cubans have long felt entitled to, have shrunk over the years. Tourists often marvel at how thin and healthy Cubans look. Sadly many of them are outright hungry.

Though Michel includes a bit of optimism in his column, pointing out that there’s been a modest bit of economic liberalization (a point that I’ve also made, even to the point of joking about whether we should trade Obama for Castro).

Communist Cuba, beset with an oppressive bureaucracy, an anachronistic cradle-to-grave welfare state, a hopelessly subpar economy, and widespread poverty, is gradually shifting to private sector solutions. Starting when Raul Castro “temporarily” took over power from his brother Fidel six years ago and culminating with the Communist party’s approval of a major package of reforms…, Cuba has taken a series of increasingly bold steps to implement free market reforms. These range from providing entrepreneurs with increased flexibility to run small businesses, and use of state agricultural lands by individual farmers, to the elimination of a variety of burdensome rules and regulations. Ironically, there is a lot that Canadians…can learn from that shift.

And there’s a lot the United States can learn, particularly our President, who is so deluded that he said there are (presumably positive) things America can learn from Cuba.

One common talking point from Cuban sympathizers is that the country has done a good job of reducing infant mortality. But, as Johan Norberg explains, that claim largely evaporates upon closer examination.

The bottom line is that communism is a system that is grossly inconsistent with both human freedom and economic liberty.

And because it squashes economic liberty (thanks to central planning, price controls, and the various other features of total statism), that ensures mass poverty.

Amazingly, there are still some leftists who want us to believe that communism would work if “good people” were in charge. I guess they don’t understand that good people, by definition, don’t want to control the lives of others.

P.S. No analysis of Cuba would be complete without noting the bizarre fetish of some leftists to wear t-shirts celebrating the homicidal racist Che Guevara. What’s next, baseball caps featuring Kim Jong-un. Computer screen savers featuring Hermann Göring? Pol Pot bobble head dolls?

There are some sick weirdos in this world to defend any form of coercive statism.

P.S. Here’s my only communist-themed joke (other than the video of Reagan’s jokes about communism).

P.P.S. At the advice of a reader, let me add one more point. Probably the most amazing indictment of communism is that living standards in Cuba when Castro took power were about even with living standards in Hong Kong. Today, the gap between the two is enormous.

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I’m in Shenyang, China, as part of the faculty for Northeastern University’s International Economics and Management program.

My primary role is to talk about the economics of fiscal policy, explaining the impact of both taxes and spending.

But regular readers already know my views on those issues, so let’s look instead at the vaunted Chinese Miracle.

And I don’t use “vaunted” in a sarcastic sense. Ever since China began to liberalize its economy in the late 1970s, economic growth has been very impressive. I don’t necessarily believe the statistics coming from the Chinese government, but it’s unquestionably true that there’s been spectacular progress.

The great mystery, though, is whether China will continue to enjoy rapid growth. In other words, will it actually converge with the United States (right now per-capita economic output in America is more than five times higher than it is in China)? Or will China, like many other developing/transition economies, hit a ceiling and then begin to stagnate.

I don’t pretend to know the future, but I can say with great confidence that the answer depends on the actions of the Chinese government.

The good news is that economic freedom jumped dramatically starting in 1980 according to Economic Freedom of the World. Thanks to good reforms, China’s score rose by more than 50 percent, climbing from 4.0 in 1980 to more than 6.0 in just a bit over two decades.

That’s a huge improvement, and it largely explains why prosperity has expanded and there’s been a record reduction in the grinding poverty and material deprivation that characterized the country.

But the bad news is that there hasn’t been much reform in the past 15 years. China’s economic freedom score has oscillated between 6.0 and 6.4 during that period.

Indeed, there have been financial bailouts and Keynesian-style “stimulus” schemes, so it’s possible that China is now going in the wrong direction.

Before digging into the details, let’s consider the economics of growth. I’ve written before that labor and capital are the two factors of production and that economic growth is a function of more labor, more capital, or learning to use existing labor and/or capital more productively.

One way to visualize this is with a production possibility curve. This is a tool in economics that often is used to illustrate tradeoffs and opportunity costs. If Robinson Crusoe is on a deserted island, what the best way for him to allocate his time to maximize the amount of fish he can catch and the number of coconuts he can collect? Or, for an entire society, what’s the “guns-vs-butter” tradeoff?

Here’s a chart I found online that illustrates the role of capital and labor and producing output. It’s a three-dimensional chart, which is helpful since it not only shows that there’s no output in the absence of capital and labor, but it also shows that an economy with just labor or just capital also won’t have much if any output. You produce a lot, by contrast, with labor and capital are mixed together.

But that’s just the beginning.

The above chart shows the amount of output that theoretically can be produced with given amounts of labor and capital. But what if there’s bad policy in a nation? Consider the difference, for example, between China’s plateaued economic freedom score and decent economic performance compared to Hong Kong’s great economic freedom score and great economic performance.

With that in mind, contemplate this two-dimensional image. With bad policy, either the economy only produces A when it can produce B (i.e., by using existing labor and capital more productively) or it produces B when it can produce C (i.e., by expanding the amount of labor and capital).

I suspect that China’s problem is mostly that bad policy interferes with the efficient allocation of labor and capital. In other words, there’s already a lot of labor and capital being deployed, but a significant amount is misallocated because of cronyism and other forms of intervention.

Now let’s move from theory to empirical details.

Here’s a close look at China’s reforms from Professor Li Yang, Vice President of the Chinese Academy of Social Sciences.

Over the past 35 years, China has achieved extraordinary economic performance thanks to the market-oriented reforms and opening-up….The GDP per capita also reached to $6075 in 2012, up from $205 in 1980… China’s economy experiences impressive changes in favor of marketization. In fact, as far back as 1996, 81% of the production materials, and 93% of retail sales, had already been traded according to the market pricing mechanism.

And here’s a chart showing the gradual expansion of market forces in China, presumably based on whether prices are determined by markets or by central planning.

We also have two charts showing the decline in genuine socialism (i.e., government ownership of the means of production).

The first chart shows that state-owned companies are becoming an ever-smaller share of the economy.

Even more impressive, there’s been a huge decline in the share of the population employed by state-owned firms.

This is good news, and it helps to explain why China is much richer today than it was 30 years ago.

But the great unknown is whether China will experience similar strong growth for the next 30 years.

Here’s more of Professor Yang’s optimistic analysis.

Another indispensable factor explaining China’s growth miracle is constant opening-up, which is equally guided by the principle of gradualism. Regarding the space structure, the markets successively opened up from the special economic zones, economic and technological development zones, coastal economic development zones, riparian regions, inland regions, and finally the whole China; regarding the industrial structure, from the advantaged manufacturing industry, to the less advantaged agriculture and service industries. In 2001, China’s entry into the WTO can be regarded as a milestone: China’s opening up transformed from selective policy measures to widespread and deep institutional arrangements.

The liberalization of trade is particularly impressive, as shown by the following chart from the study.

Makes me wonder what Donald Trump would adjust his protectionist China-bashing if he saw (and understood) this chart.

Anyhow, here are some passages from Professor Yang’s conclusion.

…market-oriented reforms constitute the most crucial factor to support China’s growth in the future. The key here is to properly deal with the relationship between government and markets. The latter will be expected to play the fundamental role in the allocation of economic resources. …China should make more effort to improve the efficiency of investment. …the government needs to reduce its intervention in the micro-level economic activities, promote deregulation and administrative decentralization, break up monopolies, and improve the efficiency of functioning.

I agree, particularly the part about boosting the efficiency of investment.

And that can only happen if China ends cronyism by letting capital be allocated by market forces rather than political connections.

Let’s close with two items.

First, one of the other faculty with me at the University in Shenyang is Ken Schoolland. In his presentation, he noted that there’s some real federalism in China. Provinces have considerable flexibility to engage in reform.

And it shouldn’t come as any surprise that the rapid growth in China has been concentrated in the areas that have moved the fastest and farthest in the direction of free markets.

Second, some experienced observers are a bit pessimistic about future Chinese economic developments. Derek Scissors of the American Enterprise Institute explains what needs to happen to boost future prosperity.

…the economy is in the process of stagnating. The only solution is a return to market-driven, politically difficult reform. Such reform must be focused primarily on rolling back the state sector. …Expanded individual or household land ownership in rural areas would be…helpful. …More individual land rights shrink the rural state. The critical step in revitalizing the economy is to shrink the urban state, and by a considerable amount. Such changes will of course be phased in over time but the sooner they start, the sooner economic performance improves. Shrinking the urban state sector would (i) finally address excess capacity; (ii) enable capital to be much more efficiently allocated; (iii) thereby slow or halt unproductive debt accumulation; and (iv)encourage innovation by enabling more competition. …In terms of capital allocation, formal interest rate liberalization was said to be a vital step. But it cannot be while the state controls most financial assets – the incentives for collusion among sister state financials are overwhelming.

Here’s Derek’s bottom line.

Want to know when China is going to thrive again – just check if the state sector is actually shrinking.

Amen.

What he’s basically describing are the policies that would dramatically improve China’s score from Economic Freedom of the World. And if China can ever climb as high as Hong Kong, then the sky’s the limit for growth and prosperity.

P.S. There are some signs that China’s leadership recognizes that a Reagan-style agenda is needed.

P.P.S. On the other hand, if China’s government takes the IMF’s advice, then prepare for economic decline and stagnation.

P.P.P.S. The most amusing economic news in recent years was when a senior Chinese official basically explained that the welfare state in Europe makes people lazy.

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Communism is an evil system. Freedom is squashed and people are merely cogs in a system where government exercises total control over the economy and destroys the lives of ordinary people.

It also erodes the social capital of a people, telling them that individual initiative and success are somehow exploitative and evil.

So when such a system ultimately collapses after being in place for decades, one would not expect a fast rebound. After all, it’s presumably difficult to restore the characteristics of a free society such as a work ethic, personal responsibility, and a spirit of entrepreneurship.

This is why Estonia is such an improbable success. It was under the heel of Soviet communism from World War II until the early 1990s.

Yet as illustrated by this television program about Estonia, which recently aired across the country, there’s been a remarkable recovery and renaissance in this small Baltic republic.

The program mostly focuses on the entrepreneurial success of Estonia, so I want to augment the policy discussion.

There are five big reasons why Estonia is a role model for post-communist societies.

First, Estonia is a leader in the global flat tax revolution. It has a simple and fair system with a relatively reasonable rate of 20 percent.

Second, the flat tax rate has been continuously lowered from the original 26 percent rate when the system was adopted in the early 1990s.

Third, the business tax system is remarkably benign with a rate of 20 percent that is imposed only on dividends.

Fourth, the combination of these factors helps give Estonia the most attractive tax system of all OECD nations according to the Tax Foundation.

Estonia currently has the most competitive tax code in the OECD. Its top score is driven by…positive features of its tax code. First, it has a 20 percent tax rate on corporate income that is only applied to distributed profits. Second, it has a flat 20 percent tax on individual income that does not apply to personal dividend income.

Fifth, there are other pro-market policies. Estonia is ranked #22 in Economic Freedom of the World, putting it in the “most free” category. That’s only six spots behind the United States.

But good policy is not the same as perfect policy.

So while there’s much to admire about Estonia, here are five things about the country that could be improved.

First, the burden of government spending is excessive in Estonia. According to the most recent OECD figures (see annex table 25), 38.5 percent of economic output is diverted to the state, leading to substantial misallocation of labor and capital.

Second, like other nations in the former Soviet Bloc, there’s a demographic challenge. The welfare state may be modest by European standards, but in the long run it is very unaffordable in part because of a fertility rate of 1.59, which ranks 183 out of 224 jurisdictions.

Third, there was a very impressive burst of liberalization after escaping Soviet tyranny, but the commitment to economic reform has since stagnated. Estonia’s EFW score peaked at 7.90 in 2005, 9th-highest in the world, and is now down to 7.61, which puts Estonia in 22nd place.

Though it’s worth noting some of the erosion in economic liberty is the result of European Union rules that require trade barriers on non-EU products (which is the same reason why the UK may enjoy higher trade over time if it votes to leave the EU).

Fourth, the social insurance tax rate is a stifling 33 percent, driving a significant wedge between what an employer must pay and what an employee actually receives. The only mitigating factor is that a small portion of that money goes to a funded pension system (i.e., a partially privatized Social Security system).

Fifth, it is too cold and dark for much of the year. To be sure, that’s not a complaint about policy. But it’s one of the reasons why I recommend Australia for people seeking a haven from bad U.S. policy.

All things considered, Estonia deserves a lot of praise. The problems that remain are modest compared to the nation’s major achievements.

P.S. Lest I forget, one of the admirable things about Estonia was the way the government cut spending in response to the economic crisis at the end of last decade. And I’m talking genuine reductions in spending, not the make-believe we-didn’t-increase-spending-as-fast-as-we-planned “cuts” that often take place in Washington.

P.P.S. In a shocking display of either sloppiness or malice, Paul Krugman blamed Estonia’s 2008 recession on the spending cuts that took place in 2009.

In reality, Estonia’s relative spending discipline has paid dividends. The economy quickly recovered and is out-performing other European nations that chose either tax increases or Keynesian spending binges.

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Over the years, Barack Obama has made some statements that indicate a very statist worldview.

Now he may have added to that list. Check out this excerpt from a report in the Daily Caller.

President Barack Obama downplayed the differences between capitalism and communism, claiming that they are just “intellectual arguments.” …Obama said…”I think for your generation, you should be practical and just choose from what works.”

It’s hard to object to the notion that people should choose “what works,” so perhaps there’s not a specific quote that I can add to my collection. However, the President’s implication that there’s some kind of equivalence between capitalism and communism, which both systems having desirable features, is morally offensive. Sort of like saying that we should “choose from what works” in Hitler’s national socialism.

Communism is a disgusting system that butchered more than 100,000,000 people.

It is a system that leads to starvation and suffering.

Communism produces Nazi-level horrors of brutality.

So what exactly “works” in that system, Mr. President? If you watch Obama’s speech, you’ll notice there’s not a lot of substance. There is a bit of praise for Cuba’s decrepit government-run healthcare system (you can click here, here, and here if you want to learn why the system is horrifying and terrible for ordinary citizens). And he also seems to think it’s some sort of achievement that Cuba has schools.

So let’s take a closer look at what Cuba actually has to offer. Natalie Morales is a Cuban-American actor, writer, and filmmaker. Here’s some of what she wrote about her country and her relatives still trapped on the island.

…we send money, medicine or syringes for the diabetic aunt (since the hospital doesn’t have any unused disposable ones), baby clothes, adult clothes, shoes, or food… a doctor, a lawyer, or another similar profession that is considered to be high-earning everywhere else in the world will make about twenty to thirty dollars per month in Cuba. Yet shampoo at the store still costs three dollars. This is because everything is supposed to be rationed out to you, but the reality is that they’re always out of most things, and your designated ration is always meager. …if you’re a farmer and you’ve raised a cow, and you’re starving, and your family is also starving, and you decide to kill that cow and eat it? You’ll be put in jail for life. Because it’s not “your” cow, it’s everyone’s cow. That’s good ol’ Communism in practice.

Ms. Morales is especially irritated by Americans who fret that capitalism will “ruin” Cuba.

…picture me at any dinner party or Hollywood event or drugstore or press interview or pretty much any situation where someone who considers themselves “cultured” finds out I’m Cuban. I prepare myself for the seemingly unavoidable…“I have to go there before it’s ruined!”…I will say some version of this: “What exactly do you think will ruin Cuba? Running water? Available food? Freedom of speech? Uncontrolled media and Internet? Access to proper healthcare? You want to go to Cuba before the buildings get repaired? Before people can actually live off their wages? Or before the oppressive Communist regime is someday overthrown?”

Here’s more about Cuba’s communist paradise, including her observations of the healthcare system that Obama admires.

The very, very young girls prostituting themselves are not doing it because they can’t get enough of old Canadian men, but because it pays more than being a doctor does. Hospitals for regular Cuban citizens are not what Michael Moore showed you in Sicko. …That was a Communist hospital for members of the Party and for tourists… There are no janitors in the hospitals because it pays more money to steal janitorial supplies and sell them on the street than it does to actually have a job there. Therefore, the halls and rooms are covered in blood, urine, and feces, and you need to bring your own sheets, blankets, pillows, towels, and mattresses when you are admitted. Doctors have to reuse needles on patients. My mom’s aunt had a stroke and the doctor’s course of treatment was to “put her feet up and let the blood rush back to her head.”

She closes with a PG-13 request for idiotic westerners.

…for God’s sake, please don’t wear a fucking Che t-shirt.

Very well said.

By the way, none of this means we shouldn’t normalize relations with Cuba. There’s no longer a Soviet Union, so Cuba doesn’t represent a strategic threat. So, yes, relax restrictions on trade and travel, just like we have for China, Zimbabwe, Vietnam, Russia, Venezuela, and other nations that have unsavory political systems.

But the opening of relations doesn’t mean we should pretend that other systems are somehow good or equivalent to capitalism and classical liberalism.

Let’s close by sharing some news from another garden spot of communism.

If North Korea’s reputation as a place of hunger, hardship and repression was not bad enough, scientists have now discovered that it is too grim even for vultures. …Eurasian black vultures are no longer bothering to stop over in North Korea as they fly from their breeding grounds in Mongolia to their winter homes in South Korea. They concluded that food is so short under the communist regime that even the world’s best-known carrion birds cannot feed themselves. …Lee Han Su, of the institute, said: “This seems to happen because in North Korea the vultures can barely find animal corpses, which are major food resources for them.” Under the draconian regime of Kim Jong Un the country is unable to feed itself. International aid agencies report chronic malnutrition in some regions. …wild animals face the risk of being eaten by people. Defectors describe how victims of the famine were driven to eat dogs, cats, rats, grasshoppers, dragonflies, sparrows and crows. Vultures, for the time being at least, are off the menu.

I’m not sure what American leftists will say we can learn from North Korea. Even PETA presumably won’t be happy that starving North Koreans are eating sparrows and grasshoppers.

The bottom line is that there is zero moral equivalence between communism and capitalism. The former is based on servility to the state and the latter is based on liberty.

But if you’re amoral and simply want to know what works, compare the performance of North Korea and South Korea. Or look at the difference between Cuba and Hong Kong.

Very compelling evidence.

But this isn’t an issue that should be decided on the basis of utilitarian comparisons. What should matter most is that communism is evil.

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I’m in Cambodia, where I just finished a series of speeches to civic groups on some of my usual topics, in this case tax policy, the recipe for growth, and libertarian principles.

All that was par for the course.

What will always stay with me and haunt my thoughts, by contrast, was my visit to the Tuol Sleng camp, which was used as a processing center during the genocide carried out by the Khmer Rouge communist dictatorship in the late 1970s.

The bottom line, as you can see from this sign, is that 14,000-20,000 civilians went through this facility and only about 200 survived.

Here’s a sign showing the English translation of rules governing camp behavior.

The sixth rule, which says prisoners could not make noise while being beaten and tortured, seems especially perverse.

Wow, reads like the rules governing campus anti-free speech tribunals.

But I shouldn’t joke because so much of this camp contains horrifying memories of communist barbarity.

Here you see some of the children who were processed through this death facility.

For some reason, this pile of clothes taken from butchered prisoners was very powerful.

Keep in mind that this big pile of clothes is actually a drop in the bucket. During the few years the Khmer Rouge was in power, the communists slaughtered at least 2 million out of a total population of less than 8 million.

But if a mountain of clothes is too abstract, how about this pile of bones at one of the nearby killing fields where Tuol Sleng prisoners were taken for the Cambodian version of the final solution.

As I toured this somber death camp, I couldn’t stop myself from thinking about the jerks who wander around in “Che” t-shirts.

Yes, I realize that butchery by Castro’s regime was minor compared to what happened in Cambodia, but Cuba nonetheless has been a brutal police state. And Che was one of Castro’s murderous enforcers. How can any decent human being wear a t-shirt designed to portray him, or the regime, in a positive fashion?!?

P.S. Let’s shift to a much lighter topic.

Back in 2012, I wrote about being flummoxed by a fancy toilet in Switzerland. It had all sorts of fancy controls, yet I couldn’t get them to work.

Well, I was in Seoul, South Korea, a few days ago for a different speech and something similar happened. I checked into my hotel late in the evening, and went to …err… use the facilities before going to sleep.

Lo and behold, I found a toilet with no flushing mechanism. No handle. No button. No pedal. Nothing.

It was late, so I didn’t give the matter too much thought. I simply went to sleep and pretended I was a water-conserving environmentalist.

The next day, though, I was more determined to figure out how to flush the toilet. My Ph.D. has to be good for something, after all.

And that’s when I noted this set of instructions posted above the toilet paper.

You’ll be happy to know that I eventually figured out the purpose of most of the buttons.

Indeed, later in the day when I …um… well, let’s be delicate and simply say I issued an executive order, I even was able to activate the automatic hands-free wash and dry system for one’s backside.

It’s remarkable what capitalism is capable of producing.

P.P.S. Let’s return to the dour topic of government-imposed genocide.

If you’re curious how the Khmer Rouge in Cambodia rank compared to other evil regimes, they only killed a tiny fraction of the death toll achieved by the Soviet Union and Maoist China.

But if you’re scoring on a per-capita basis, the communist killers in Cambodia arguably might be at the top of the list.

Next time I see some despicable jerk wearing a Che t-shirt, I think I’ll ask whether he has the matching Pol Pot version.

I’m quite sure that the brainless kid won’t even know that Pol Pot was the dictator who presided over the Cambodian genocide, so my snide comment will fall on deaf ears.

But maybe, just maybe, the kid will go online, learn about the profound evil of communism and throw Che in the trash.

Heck, the morons at Mercedes-Benz were shamed out of using Che as a marketing gimmick, so there is hope!

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Whenever I need to explain the difference between socialism and capitalism, I start by noting that socialism technically is different from Obama-style big-government redistributionism and cronyism.

Socialism involves something more pervasive, involving government ownership of the means of production (which, if you read this postscript, is why Jeremy Corbyn in the United Kingdom is far more radical than previous Labour Party leaders).

It also means eviscerating the competitive price system as a means of determining value and allocating resources, relying instead on politicians and bureaucrats to arbitrarily wield that power (some American politicians favor this latter approach in certain circumstances).

Needless to say, socialism has an unmatched track record of failure. It was such a disaster than only a few supposedly high-ranked academics (see this postscript) thought it worked.

But what about high-ranked communists who grew up under socialism. Did they think it worked?

The Houston Chronicle dug into its archives to produce a story about an incident that may have played a big role in history. It’s about a senior communist functionary who was exposed to a slice of capitalism.

Yeltsin visited mission control and a mock-up of a space station. According to Houston Chronicle reporter Stefanie Asin, it wasn’t all the screens, dials, and wonder at NASA that blew up his skirt, it was the unscheduled trip inside a nearby Randall’s location. Yeltsin, then 58, “roamed the aisles of Randall’s nodding his head in amazement,” wrote Asin. He told his fellow Russians in his entourage that if their people, who often must wait in line for most goods, saw the conditions of U.S. supermarkets, “there would be a revolution.” …In the Chronicle photos, you can see him marveling at the produce section, the fresh fish market, and the checkout counter. He looked especially excited about frozen pudding pops. “Even the Politburo doesn’t have this choice. Not even Mr. Gorbachev,” he said.

This random trip to a typical supermarket may have changed history.

About a year after the Russian leader left office, a Yeltsin biographer later wrote that on the plane ride to Yeltsin’s next destination, Miami, he was despondent. He couldn’t stop thinking about the plentiful food at the grocery store and what his countrymen had to subsist on in Russia. In Yeltsin’s own autobiography, he wrote about the experience at Randall’s, which shattered his view of communism, according to pundits. Two years later, he left the Communist Party and began making reforms to turn the economic tide in Russia. …“When I saw those shelves crammed with hundreds, thousands of cans, cartons and goods of every possible sort, for the first time I felt quite frankly sick with despair for the Soviet people,” Yeltsin wrote. “That such a potentially super-rich country as ours has been brought to a state of such poverty! It is terrible to think of it.”

Since the Soviet Union was mired in poverty at the time, Yeltsin presumably was speculating about the potential wealth of his country.

And the good news is that the rigid communism of the Soviet Union is gone. Heck, the Soviet Union doesn’t even exist. Reagan was right when he predicted  the triumph of freedom, with Marxism being relegated to the “ash heap of history.”

But the bad news is that Russia (the most prominent of the 15 nations to emerge after the crackup of the Soviet Union) is a laggard on economic reform. There was a shift away from close-to-pure communism in the 1990s, to be sure, but the country still has a long way to go before it can be considered capitalist.

Here’s a back-of-the-envelope “statism spectrum” that I created. It’s designed to show that there are no pure libertarian paradises, not even Hong Kong. And there are no pure statist dystopias, not even North Korea (though that despotic regime is as close to pure evil as exists in the world).

Russia, I’m guessing, would be somewhere between China and Mexico.

And this gives me a chance to close with an important point.

Perfect economic policy almost surely is an impossible goal. But that’s fine. We can still enjoy good growth so long as we strive to at least move in the right direction. As I explained back in 2012, the private sector is capable of producing impressive results so long as it has sufficient breathing room to operate.

P.S. If you want a simpler and more amusing explanation of different economic systems, here’s the famous “two cows” approach.

P.P.S. The United States isn’t a socialist nation, but we’re not fully immune to that destructive virus. After all, we have a government-run rail company in America, a government-run postal service, a government-run retirement system, and a government-run air traffic control system, all things that would function far more efficiently in the private sector.

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