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Archive for the ‘Socialism’ Category

All forms of statism are despicable because they’re morally and practically evil.

They’re morally evil since they’re based on coercion. And they’re practically evil since they deliver such awful results for ordinary people.

The good news is that some forms of statism are widely discredited. Outside of universities, you don’t find many people who defend and advocate communism. And other than a few lonely cranks, you don’t find many people who defend and advocate national socialism and other forms of fascism.

But for some inexplicable reason, you still find some folks who harbor positive feelings about socialism.

To be sure, that opens up a bunch of questions, such as whether they even understand that socialism – at least in theory – involves government ownership and operation of the means of production. Such as the United Kingdom in the post-WWII era.

For what it’s worth, the fans of Bernie Sanders probably don’t understand anything about economics (goes without saying, right?) and they probably think that socialism is simply a system with lots of redistribution. Such as modern Denmark (even though that nation is just as market-oriented as the United States).

I’m not sure how we educate these people, and I doubt these three photos will have much impact on them, but I chuckled when this showed up in my inbox.

I guess the top photo might be Detroit. The second photo could be Cuba. And the last photo might be where Al Gore lives.

If that’s the case, the first is actually an image showing the destructive impact of the welfare state and the third is actually an image the benefits of insider cronyism, but let’s not get hung up on details. The real point is that corrupt insiders are the only real beneficiaries of big government.

P.S. Two of the most popular columns I’ve produced involve semi-amusing stories that highlight the failure of socialism, redistributionism, and collectivism. “The Tax System Explained in Beer” and “Does Socialism Work? A Classroom Experiment” succinctly capture why it’s very shortsighted and misguided to have an economic system that punishes success and rewards sloth.

P.P.S. Yes, socialism breeds misery, but it also generates some clever humor. See here, here, here, here, here, and here.

P.P.P.S. And even though self-proclaimed socialists pontificate about sharing and compassion, their ideology actually promotes a bad kind of selfishness.

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There was some genuinely good news in 2016, which is more than I can say for 2015 (my “best” development for that year was some polling data, followed by some small-ball tinkering).

Though the good news for 2016 was mostly overseas. Here are the four things from around the world that made me happy this year.

And while we didn’t have any major positive developments in the United States, there was a bit of good news. Yes, it’s “small-ball tinkering,” but I’m always glad for any progress.

So those are the noteworthy good things that happened this year. Now let’s look at the other side of the ledger. What was the bad news of 2016?

Well, the good news (so to speak) is that there was not a lot of bad news. At least if we’re focusing on actual policy changes.

But there are three developments that cause me to worry about the future.

Tomorrow I will write about my hopes and fears for 2017.

Let’s close today’s column with a few special categories.

If there was an award for the most disgusting news of 2016, the NAACP would be the clear winner for their decision to sacrifice black children in order to collect blood money from teacher unions.

And if we also had a prize for most moronic leftist in 2016, there would be another easy winner. Trevor Noah inadvertently showed why gun control doesn’t work even though he wanted to make the opposite point.

Last but not least, if there was a category for surprising news in 2016, there’s no question that Paul Krugman would win that prize for writing something sensible about tax policy.

P.S. My most popular post in 2016 (which also set the all-time record) was the very clever image showing that the enemies of liberty are looters, regardless of their economic status.

P.P.S. My most surreal moment in 2016 was getting attacked on the front page of the Washington Post. I must be doing something right.

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Back in 2014, I looked at the vitally important battle over whether Santa Claus is a liberal or conservative.

Let’s now broaden that debate and contemplate the difference between libertarian Christmas and socialist Christmas.

We’ll start with this much-deserved jab at socialists, the people who continue to believe in coerced equality even though such systems always produce misery for ordinary people (though insiders often manage to get rich).

Sort of reminds me of this Chuck Asay cartoon.

And just in case anyone thinks libertarians don’t get into the Christmas spirit, here’s a new video from Reason TV showing the various gifts you can get for libertarians.

And if you like libertarian-themed Christmas videos, here’s another Reason production showing Santa Claus getting harassed by the TSA.

So what about the socialists?

Well, they definitely believe that government should be Santa Claus. Indeed, I’ve shared Christmas-themed cartoons making this point on many occasions (see here and here, for example).

But here’s something from the pro-socialist perspective. The goal is obviously to equate goodness with statism.

I like the Charlie Brown humor. That’s a nice touch. But there’s a too-big-to-ignore problem with the central message of this poster.

None of the examples involve government-coerced redistribution, which is the defining characteristic of the American left. Instead, we have five examples of voluntary goodness, a characteristic that is more commonly found where capitalism flourishes.

Indeed, it’s worth noting that supposedly selfish capitalists in America give far more to charity than supposedly compassionate Europeans. And you won’t be surprised to learn that people is red states are far more generous than people in blue states.

In other words, leftists are Scrooges with their own money who then try to mitigate their guilt by using coercive government to redistribute other people’s money.

Sounds like they should heed the words of Libertarian Jesus.

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I live-tweeted last night’s debate between the Governor Mike Pence and Senator Tim Kaine.

As the debate closed, I summed up my reaction with two tweets, one of which sadly observed that Donald Trump does not share Ronald Reagan’s belief in smaller government and more freedom.

And because I’m fair and balanced, I also reminded people that Hillary Clinton is no Bill Clinton. Indeed, I pointed out that her vote rating in the Senate was almost identical to Bernie Sanders’.

That doesn’t mean Bernie and Hillary are identical.

I’ve remarked many times that he wants America to become Greece at 90 miles per hour while she seems content for the country to become Greece at 55 miles per hour.

But, in practice, they were almost always on the same side when it came time to cast votes on the floor of the Senate.

In any case, my tweet obviously touched a nerve since there were a bunch of (mostly incoherent) responses. And I also got this reaction from a law professor at the University of Baltimore.

I assume he thinks I was being juvenile to say that Senator Sanders is crazy. Since I actually am juvenile in many ways (particularly my sense of humor), I might be tempted to plead guilty.

But let’s actually contemplate how the Vermont Senator should be labeled.

Sanders is a virulent and dogmatic supporter of coercive statism. Even columnists for the Washington Post have criticized him for being too far to the left.

But he’s not a real socialist (which technically means government ownership of the means of production). And even though his policies are based on coercion, I certainly don’t think he is a totalitarian.

Yet he’s not a rational leftist like you find in the Nordic nations (where they at least compensate for large welfare states by being very market-oriented about trade, regulation, etc).

All this explains why, when categorizing different types of leftists, I put him in the “crazies” group along with the Syriza Party of Greece.

And while “crazies” might be a pejorative bit of shorthand, I do think folks like Bernie Sanders are largely detached from reality.

But I don’t want people to be upset with me, so I’m going to reconsider how Sanders should be categorized.

To help with this chore, let’s consider a few additional bits of information, starting with an item from his Senate office that contains this remarkable passage.

These days, the American dream is more apt to be realized in South America, in places such as Ecuador, Venezuela and Argentina, where incomes are actually more equal today than they are in the land of Horatio Alger. Who’s the banana republic now?

By the way, it’s not clear if this is a column written by Sanders or whether he just endorses the sentiments expressed therein.

Though it doesn’t really matter since – at the very least – he obviously agrees with the message.

So let’s think about what it means that Sanders views Argentina and Venezuela as role models.

Argentina used to be one of the richest nations in the world, ranked in the top 10 at the end of World War II. But then decades of statism, starting with Peron and continuing through Kirchner, wreaked havoc with the nation’s economy and Argentina has plummeted in the rankings.

And I’ve written many times about the basket case of Venezuela, so there’s already ample information to discredit anyone who thinks that nation should be emulated.

But let’s add one more straw to the camel’s back. Here are some excerpts from a very depressing story about the human misery being caused by big government in that country.

Klaireth Díaz is a 1st-grade teacher at Elías Toro School… Last year, she says, attendance was painfully low. Every day, of a class of 30 children at least 10 would be absent. “The reason was always lack of food,” she told Fox News Latino. She said she had a student who skipped class every single Thursday and when she asked his mother about it, she explained that Thursday was the day of the week assigned to her family to buy food at government-regulated prices – which involves standing in line starting sometimes as early as 3 a.m.

Food lines?!? That’s what Bernie Sanders thinks is a success story?

Though I guess if everyone has to wait in lines for food, at least they’re all equally poor (though even that’s not true since the ruling-class leftists in Venezuela have plundered the nation’s treasury).

In other words, maybe this image isn’t a joke or satire after all.

But it gets worse. The food lines apparently don’t provide enough food.

Across the country, teachers have said they have seen children faint or fall asleep because they haven’t had enough to eat. …As the school year progressed last year, Diaz said, she noticed more and more kids had stopped bringing lunch. …According to a poll conducted last month by More Consulting among 2,000 respondents in Caracas, in 48 percent of the times children do not attend school, the cause is related to the food. Either they are feeling too weak for lack of nutrition, or their parents rather use the transport money to buy food, or they are in the food lines with their parents. The poll revealed that 36.5 percent of children eat only twice a day and 10.2 percent just once.

So maybe Bernie Sanders isn’t crazy. If he views Venezuela as a role model, maybe he’s morally blind. Or genuinely evil.

But I’m a nice guy, so I’m sticking with crazy since I would hate to think that even a crank like Sanders willfully embraces the monstrous outcomes found in Venezuela.

P.S. I haven’t written about Ecuador, but if forced to choose among Bernie’s various success stories, I guess that would be my pick since it is 142 out of 159 in the rankings from Economic Freedom of the World, which surely is better than being Argentina (156) or Venezuela (dead last at 159).

To be fair to Sanders, at least he didn’t list Cuba, which is such an economic hell-hole that (if reliable numbers were available) it would presumably rank below even Venezuela.

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Over the years, I’ve repeatedly tied to explain why socialism is a terrible system while also explaining that we should be careful not to label people as socialists if it’s more accurate to refer to them as statists, redistributionists, cronyists, or fascists.

To help illuminate this issue, here’s a four-quadrant matrix. Free markets are on the left and state planning is on the right. And small government is on the top with redistribution is on the bottom.

So it’s a very good idea to be in the top-left quadrant, hopefully close to the corner, sort of like Hong Kong and Singapore. And it’s a big mistake to be in the bottom-right quadrant, sort of like Cuba, North Korea, and Venezuela.

Notice, by the way, that Denmark and Sweden are more free market than the United States (i.e., further to the left), but with much more redistribution (i.e., closer to the bottom). Which is exactly what you see when you look at the underlying data from Economic Freedom of the World.

Let’s augment our four quadrants by adding a couple of historical examples, which are colored red.

In the top left quadrant, we have the United States in the late 1800s, which is when we had a public sector that was significantly smaller than what Hong Kong has today. Heck, nations such as France and Sweden also had very small governments in the 1800s, which is when the western world became rich.

I also added the National Socialists from 1930s Germany. Their fascist economic system retained the veneer of private ownership, but state planning was the dominant economic model.

Moreover, it would be very illuminating to have a three-dimensional matrix in order to capture the difference between cronyism/interventionism and socialism/state planning.

Both involve government officials exercising power over the allocation of resources, of course, but cronyism/interventionism tends to be ad hoc and morally corrupt while socialism/state planning tends to be systemic and intellectually corrupt.

Though if a government engages in enough cronyism/interventionism (think Venezuela), the net result looks a lot like socialism/state planning (think North Korea).

Or maybe we should have a four-dimensional matrix so we also can distinguish between systems with nominal private property (such as fascism) and ones where the government owns the “factors of production” (such as socialism and communism).

The unfortunate reality is that there are several strains of statism, all of which are bad.

By the way, one of Hillary Clinton’s advisors, Gene Sperling, was recently asked about the difference between a socialist and a Democrat and was accused of dodging the question just like Hillary (and, I would add, Debbie Wasserman-Schultz).

“I’m not here to do general definitions,” replied Gene Sperling, a Hillary Clinton economic adviser, when asked by MSNBC: ‘What is the difference between a socialist and a Democrat?’ MSNBC’s Chris Matthews stumped Hillary Clinton with the same question several months ago.

Though, if you watch the interview, I think Gene actually gets close to the truth. He said Hillary was a “progressive” (which presumably means lots of redistribution), but nonetheless supports the market economy (as opposed to state planning).

To be sure, there are many examples of Hillary wanting to engage in interventionism, so Sperling may be right about socialism but wrong about Mrs. Clinton.

Let’s close with a video on socialism from Dennis Prager, though it applies equally to redistributionism (or any system where people can use the coercive power of government to obtain unearned goodies).

One of the most insightful parts of the video was when Dennis pointed out that excessive government weakens character. Which is just another way of pointing out that statism erodes social capital.

And I fear he’s right that regaining and restoring character is not that easy. Once people have decided that it’s morally acceptable to use the power of government to take what other people have produced, restoring an ethical society is probably like putting toothpaste back in a tube.

Which explains why I am so miserably pessimistic about the future of places such as Greece.

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Socialism is a very bad concept. It deserves mockery rather than respect.

But that’s true of all statist ideologies.

Last year, as part of a column on the collapse of the Soviet Empire, I put together a statism spectrum showing the degree to which various nations allow economic liberty.

I thought this effort was useful because it shows, for instance, that the United States, France, and Hong Kong are all on the right side, but that there are nonetheless obvious differences in the amount of economic freedom for those three jurisdictions. Likewise, it’s not good to be Mexico, China, or North Korea, but there are degrees of statism and it’s worse to be farther to the left.

Speaking of left, not all advocates of bigger government are the same. So earlier this year I created another spectrum showing that there are various strains of statism, especially among true believers.

The value of this spectrum is that it shows the differences between totalitarians, genuine socialists, and run-of-the-mill hard-core leftists like Bernie Sanders.

And both of these spectrums were implicit in my interview yesterday about Venezuela. I pointed out that Venezuela technically isn’t socialist, but also suggested that doesn’t matter because the country is definitely on the wrong part of the statism spectrum.

And Venezuela definitely is proof that being on the wrong side of the spectrum is a recipe for collapse (or, in the case of North Korea, a recipe for never getting off the ground in the first place).

Since we’re discussing statism, let’s close with some really good news. Matt Yglesias of Vox likes big government. A lot. But he’s also capable of dispassionately analyzing what works and doesn’t work for his side. And he writes that “socialism” is a bad word for those who want to expand the size and scope of government.

Bernie Sanders refers to his ideology — which I would characterize as social democracy or even just welfare state liberalism — as democratic socialism, a politically loaded term that seems to imply policy commitments Sanders hasn’t made to things like government ownership of major industries. …the socialist branding seems to have offered Sanders some upside…earning him enthusiastic support from a number of politically engaged people who seem to really be socialists… Against this, though, one has to weigh the reality that socialism is really unpopular in the United States.

How unpopular? Yglesias shares some new polling data from Gallup.

This is great news. Not only is socialism unpopular, but it ranks below the federal government (which traditionally gets low marks from the American people). And the supposed Sanders revolution hasn’t even translated into a relative improvement. This poisonous ideology is actually slightly more unpopular than it was in 2010 and 2012.

Here’s what Yglesias wrote about these numbers.

Any form of left-of-center politics in the United States, frankly, is going to have a problem with the fact that “the federal government” is viewed so much less favorably than cuddly targets like “small business,” “entrepreneurs,” and “free enterprise.” Even big business does better than the federal government. And both big business and capitalism do far better than socialism.

As I said, this is excellent news.

A few closing thoughts.

  • First, Yglesias and I don’t agree on very much (he’s referred to me as insane and irrational), but we both think that a socialist is someone who believes in government ownership of the means of production, not simply someone who believes in bigger government.
  • Second, the Gallup data reinforces what I wrote back in April about “free enterprise” being a much more appealing term than “capitalism.”

The bottom line is that economic liberty works while left-wing ideologies (all based on coercion) don’t work, so let’s use whatever words are most capable of disseminating this valuable message.

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I feel sorry for the Venezuelan people, but I’m perversely glad that the country is collapsing.

That’s because it’s nice to have proof that Margaret Thatcher was right when she famously warned that the problem with socialism is that you eventually run out of other people’s money.

To be sure, we already had proof from Greece, France, the Soviet Union, Brazil, and many other places. But it’s still nice to have another piece of evidence that big government eventually produces very dire results.

I also confess that I’m enjoyed Venezuela’s economic decay because I get a warm feeling of Schadenfreude when watching leftists try to explain what’s happening in that formerly rich nation.

Even the New York Times feels the need to report on the mayhem in Venezuela.

The courts? Closed most days. The bureau to start a business? Same thing. The public defender’s office? That’s been converted into a food bank for government employees. Step by step, Venezuela has been shutting down. …Venezuela keeps drifting further into uncharted territory. …that is only the start of the country’s woes. Electricity and water are being rationed, and huge areas of the country have spent months with little of either. …the Mexican company that bottles Coke in the country, has even said it was halting production of sugary soft drinks because it was running out of sugar.

And why is the economy in free fall? Is it possible that the left-wing policies the NYT wants for the United States are failing when tried elsewhere?

Not according to the story. It’s the fault of external forces. Or maybe even rich people.

The growing economic crisis — fueled by low prices for oil, the country’s main export; a drought that has crippled Venezuela’s ability to generate hydroelectric power; and a long decline in manufacturing and agricultural production. …Venezuela’s government says the problems are the result of an “economic war” being waged by elites who are hoarding supplies.

Finally, in the 27th paragraph, there’s a mention that maybe, just maybe, some of the blame belongs to government.

…most economists agree that Venezuela is suffering from years of economic mismanagement, including…price controls that led many businesses to stop making products.

Hmmm…, I guess we can safely assume that “most economists” does not include Joseph Stiglitz.

Another story in the New York Times specifically examines how this mess was created. Finally, an opportunity to learn how leftist policies are a recipe for economic failure, right?

Hardly. The report starts by pointing out the obvious. Yes, the economy is a disaster.

Supermarket shelves in Venezuela are chronically bare, and power shortages are so severe that government offices are now open only two days a week. The health care system has collapsed, the crime rate is one of the world’s worst, and inflation is rapidly eroding what remains of the currency’s value.

It then addresses the question of how this happened.

And as you can see, we’re supposed to believe it’s the result of falling oil prices and drought, even though many other oil-producing jurisdictions are avoiding economic chaos and droughts in other nations normally don’t lead to societal collapse.

The price of oil, Venezuela’s only significant export, has plummeted, which means revenue could fall by 40 percent this year. The government’s huge borrowing, partly a legacy of the years when oil prices were far higher, has helped bring the crisis to a head because Venezuela now has far less money to repay its foreign debt, forcing Mr. Maduro to slash imports in order to avoid default. On top of that are the consequences of a drought, which has shriveled the country’s hydropower generation, a critical source of electricity.

Farther down the article, in the seventh paragraph (of a much shorter story), there’s a grudging admission that at least some economists blame statist policies.

…many economists say his policies of state ownership, unfettered spending, subsidies and domestic price controls are at least partly responsible for the crisis today.

Gee, how generous of the NYT to acknowledge that some people have this strange belief that big government doesn’t work.

The column also notes that price controls are causing shortages, which is a nice admission even if there’s no clear conclusion in the article that the policy is bad.

Subsidized food and fuel sold by state-run stores are priced far lower than they are really worth. This has created enormous lines of shoppers for goods that quickly sell out.

While it’s amusing the dissect the verbal gymnastics of the New York Times, it’s even more fun to observe the dour reaction of Comrade Bernie Sanders when asked about the issue.

The folks at Newsbusters have the video, and here’s the relevant transcript if your stomach’s not strong enough to actually watch the Vermont Senator on screen.

Huh, the guy’s been waxing poetic about the glories of socialism and big government his entire life, so much so that he reportedly was kicked out of a Marxist commune for being too much of a blowhard, but now he’s suddenly so “focused” on his campaign that he can’t comment on the biggest story about socialism since the fall of the Berlin Wall?!?

Yeah, right.

Too bad the reporter didn’t ask the logical follow-up question: “So what makes you think the policies that have failed in Venezuela will work in the United States?”

Heck, I would like some journalist to present Sanders with my two-part challenge for leftists and see if he can name a single successful statist jurisdiction.

Though I’m guessing Comrade Bernie would inaccurately claim Sweden or Denmark, even those two nations got rich first and then adopted big government.

P.S. Interestingly, the Washington Post does not appear to be as reflexively left wing at the NYT.

At least if these blurbs from an editorial last year are any indication.

…one of the worst crises of governance Latin America has seen in modern times. The country’s collapsing economy, soaring crime… Mr. Maduro…inherited the mess created by the late Hugo Chávez and then greatly worsened it… Venezuelans are furious about endemic shortages, triple-digit inflation and a poverty rate that exceeds that of 1999, when the Chavista movement first came to power. …That Mr. Maduro…threatens violence probably is a reflection…of the regime’s deep-seated criminality. Two of the president’s nephews are being held in New York on drug-trafficking charges, and U.S. authorities are reportedly investigating numerous other senior figures, including the current president of the National Assembly, Diosdado Cabello, who is considered the regime’s second most powerful official.

To be sure, the Post editorial doesn’t explicitly tie the wretched conditions in Venezuela to left-wing policy, but at least there’s no ambiguity about the fact that Maduro is a bad guy.

Now if we can get the Post to cease being reflexively supportive of statism in the United States, that will be real progress.

P.P.S. Since it’s Memorial Day in the United States, let’s close with a feel-good story about an immigrant achieving the American Dream.

As 2nd Lt. Alix Schoelcher Idrache stood at attention during the commencement ceremony at West Point, N.Y., on Saturday, he was overcome with emotion. Tears rolled down both cheeks, but his gloved left hand held firm on his white, gold and black “cover,” the dress headgear that Army cadets wear. The photograph of Idrache, by Army Staff Sgt. Vito T. Bryant, was published Tuesday on the Facebook page of West Point’s U.S. Military Academy, and it almost immediately went viral. …Idrache’s background: He worked his way through one of the nation’s most prestigious military schools after immigrating to the United States from Haiti, earning his citizenship and serving for two years as an enlisted soldier…Idrache wrote Tuesday on Facebook. “I am humbled and shocked at the same time. Thank you for giving me a shot at the American Dream and may God bless America, the greatest country on earth.”

P.P.P.S. And I can’t resist adding a bit of humor about Sen. Sanders and Venezuela.

Yes, socialism breeds misery, but it also generates some clever humor. More examples here, here, here, and here.

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