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Archive for the ‘Socialism’ Category

Every Thanksgiving, I share the story of how the Pilgrims nearly starved to death because of their experiment with collectivized agriculture.

Once the settlers shifted to a system based on private ownership, however, their problems disappeared.

The obvious moral of the story is that incentives matter. Socialist systems encourage slackers (see this cartoon strip) and market systems encourage productivity.

A column by X in the Wall Street Journal tells a similar story about China.

It’s actually the story of an important anniversary.

The People’s Republic of China turns 70 in October and will celebrate with flag-waving and fireworks. …2019 also marks the anniversary of the result of a smaller, quieter but just as defiant protest—one that will receive little attention in or out of China, even though it launched the economic reforms that kick-started the country’s rise.

Here’s the background.

After taking power in 1949, China’s Communist Party had effectively abolished private land ownership, grouping farms into “people’s communes” subservient to the state. By 1978 villages were crippled by quotas that seized most of what they grew for redistribution. …there was no food. Xiaogang’s farmers dug up roots, boiled poplar leaves with salt, and ground roasted tree bark into flour. Families left their thatched-roof homes and took to the road to beg.

By the way, the Chinese system of collective farms was an example of hardcore socialism – i.e., government ownership and control.

So it’s hardly a surprise that it produced awful results. Including mass starvation.

But desperate times were the motivation for desperate measures.

…a farmer named Yan Hongchang summoned the heads of the village’s desperate families to a clandestine meeting. On paper torn from a child’s school workbook, the farmers wrote a 79-word pledge to divide the commune’s land into family plots, submit the required quota of corn to the state, and keep the rest for themselves.

And what happened?

Incentives and property rights worked. Spectacularly.

…farmers…reported a grain yield of 66 metric tons. This single harvest equaled the village’s total output between 1955 and 1970—but for once the figure was not exaggerated. In fact, villagers underreported their actual yield by a third, fearing officials would not believe their record haul.

And the really good news is that the successful experiment in Xiaogang led to market-based reform for the entire nation.

The grass-roots experiment did spread. In Beijing, three years after Mao Zedong’s death, Deng Xiaoping urged the Chinese to ignore political dogma and instead “seek truth from facts.” Now came news that dissenting farmers were actually growing food. This year marks the 40th anniversary of Deng’s decision to scrap collective farming. In its place came one of the country’s most popular reforms, the Household Contract Responsibility System, or chengbao, which allows families to farm their own allocation of land and sell most of the harvest at unregulated prices.

Indeed, China now celebrates Xiaogang’s rebellious shift to markets.

Xiaogang village is a “red tourism” attraction, albeit the only one whose “patriotic education base” (museum) celebrates local defiance of government policy. Its exhibition hall displays a copy of the farmers’ pledge—the original was lost years ago—and floor-to-ceiling photographs of its signatories. The men are lauded as heroes, and Xiaogang celebrated with a slogan: “The origin of our nation’s economic rise!”

Maybe future historians will look upon the events in Xiaogang the same way some people look at 1356 in Europe?

In any event, what began forty years ago already has yielded great results for the people of China. Grinding poverty has virtually disappeared.

To be sure, China still needs a lot of reform. It’s only ranked #107 according the latest edition of Economic Freedom of the World.

But if some good reform yielded some good results, just imagine how much prosperity China could enjoy with a lot of good reform?

P.S. Just as the village of X helped to rescue China from hardcore socialism, there’s a grocery store in Texas that played a role in rescuing Russia’s economy.

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Bernie Sanders demonizes the rich and argues that millionaires need to pay higher tax rates in order to finance a bigger burden of government.

Which presumably means that he should surrender more of his income, since he is part of the gilded class. The New York Times has a report on the Vermont Senator’s lavish income.

Senator Bernie Sanders of Vermont, a leading candidate for the Democratic presidential nomination, disclosed 10 years of tax returns on Monday… He and his wife, Jane O’Meara Sanders, reported income that topped $1 million in 2016 and 2017… Mr. Sanders’s higher income in recent years has created some political awkwardness for the senator, who in his 2016 presidential campaign frequently railed against “millionaires and billionaires” and their influence over the political process. …His income now puts him within the top 1 percent of taxpayers, according to data from the Internal Revenue Service.

Yet when asked why he didn’t pay a big chunk of his income to the IRS, Sanders showed typical statist hypocrisy by giving the same reason used by every rich person (including Trump) and every big corporation.

Fox News has the details.

Early in the program, Sanders was asked about the 10 years worth of tax returns he had released just before the program, which showed that he had an adjusted gross income of $561,293 in 2018, on which he paid a 26 percent effective tax rate. Baier asked Sanders why he’s holding onto his wealth rather than refusing deductions or writing a check to the Treasury Department — since Sanders had said he voted against Trump’s tax bill that he himself benefitted from. “Pfft, come on. I paid the taxes that I owe,” Sanders replied.

If he actually followed the law and paid his taxes, that puts him ahead of some of his fellow leftists, such as Tim Geithner and Tom Daschle.

But that’s still not good enough, at least if Sanders is serious in wanting to resurrect FDR’s infamous second Bill of Rights.

For what it’s worth, the notion that people have a right to free stuff is the core principle behind the so-called Green New Deal.

Yet if Sanders wants to minimize his own tax bill, why should he complain when the rest of us try to protect ourselves from being victimized by his redistribution agenda?

Though I will admit that Sanders is probably a sincere hypocrite.

After all, would anyone other than a committed leftist support Venezuela’s leftist dictatorship?

And let’s not overlook the fact that Crazy Bernie has some crazy advisers with the same crazy viewpoint, as revealed by the Wall Street Journal. Like their boss, they have a perverse admiration for the despotic hellhole of Venezuela.

Socialism is cool again, and Bernie Sanders wants to reassure voters that there’s nothing to worry about. “I think what we have to do, and I will be doing it, is to do a better job maybe in explaining what we mean by socialism—democratic socialism,” Mr. Sanders said last month. …But we’ve been reading the work of Bernie’s senior political advisers… Take speechwriter David Sirota, who joined the Sanders campaign in March… Mr. Sirota wrote an op-ed for Salon in 2013 titled “Hugo Chávez’s Economic Miracle.” …Sirota wrote… “in a United States that has become more unequal than many Latin American nations, are there any constructive lessons to be learned from Chávez’s grand experiment with more aggressive redistribution?” …Mr. Sanders’ political director, Analilia Mejia, spent part of her childhood in Venezuela and told the Atlantic in 2016 that “it was better to live on poverty-level wages in a shantytown in Venezuela than on a garment-worker’s salary in Elizabeth, New Jersey.” …senior policy adviser Heather Gautney visited Caracas in 2006…wrote about how Chávez had “implemented a serious [sic] of programs to redistribute the wealth of the country and bolster social welfare.” …She also wrote that “today’s neoliberal capitalist system has become utterly incompatible with the requisites of democratic freedom.” …Mr. Sanders is…a leading candidate…and these are the people who would staff his White House. Voters need to understand that they don’t merely admire Venezuela. By their own words, they want America to emulate it.

I’m almost at a loss for words. People are starving in Venezuela. Women are being forced into prostitution. Families are eating household pets.

Yet Bernie’s people think we should mimic Venezuela’s horrid socialism.

I’m not sure whether to laugh or cry.

But since I prefer laughter, let’s close with same Bernie-themed humor, starting with this gem from the satirists at Babylon Bee.

Needing to cool off from the high-stress life of a U.S. senator who has to work three days a week, Bernie Sanders was spotted Tuesday ranting at the wide selection of deodorants at a D.C.-area Target. “There are people who don’t have enough food to eat in this world, and yet there are 29 different brands of deodorant here!” Sanders bellowed, citing the two completely unrelated facts for some reason. … Several shoppers attempted to go around Sanders but he blocked the aisle, ranting to them about the 1% and the failures of capitalism before they ran away, frightened. …At publishing time, Sanders was seen in the snacks aisle ranting about how no country needs three different varieties of Flamin’ Hot Cheetos.

By the way, this isn’t random humor.

Sanders is such a crazy crank that he actually has condemned capitalism for providing too many underarm choices.

This Branco cartoon also hits the nail on the head.

P.S. If you like this bit of mockery, you’ll probably like Branco’s cartoons about the sequester and “you didn’t build that.”

P.P.S. And you can find my collection of Bernie humor by clicking here.

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What’s socialism?

Is it the centrally planned economies of Cuba and North Korea? Or the kleptocracies of Zimbabwe and Venezuela?

How about the interventionist welfare states of Greece, Italy, and France? Or the redistribution-oriented Nordic nations?

Since socialism means different things to different people, the answers will be all over the map.

But there’s one constant. However it’s defined, it doesn’t work.

Joshua Muravchik, writing for the Wall Street Journal, shares the many and inevitable failures of socialism.

It’s hard to think of another idea that has been tried and failed as many times in as many ways or at a steeper price in human suffering. …Marx (1818-83)…called his vision “scientific socialism.” Inspired by the dream of proletarian revolution overthrowing capitalist immiseration, socialist parties sprouted across Europe. Yet instead of growing poorer, workers in industrialized countries saw improvement in their living standards; and instead of disappearing, middle classes expanded—all disproving Marx. …Lenin pioneered modern communism, which in the 20th century was imposed on 18 countries and one-third of mankind. Repression was justified by socialism’s purported economic benefits, but the actual trade-off entailed economic misery and the snuffing out of as many as 100 million lives. …“Social democrats” and “democratic socialists” rejected Lenin’s methods. But their goals remained transformational. …British Labour Party leader Clement Attlee…sought to bring “main factors in the economic system”—including banks, mining and energy—under “public ownership and control.” Nationalization worked so badly, however, that Attlee soon beat a retreat and was voted out in 1951.

Though there was plenty of socialism until Margaret Thatcher was elected.

And if you consider the creaky National Health Service, some sectors of the economy remain socialized.

Anyhow, self-described American socialists claim they simply want to be like Scandinavian countries.

But as Muravchik notes, those nations aren’t technically socialist (i.e., they don’t have government ownershipcentral planningprice controls).

Yes, they have expensive welfare states (which have hampered growth), but markets determine how resources are allocated.

American socialists like Mr. Sanders, while often defending the likes of Fidel Castro, Daniel Ortega, Hugo Chávez and Nicolás Maduro, prefer to point to Scandinavia as a model. But Scandinavian social democrats learned to settle for dense social safety nets underwritten by remarkably free, capitalist economies. On the World Bank’s Ease of Doing Business scale, Denmark ranks third of 190 countries, Norway seventh and Sweden 12th.

The bottom line is that socialism has failed every place it’s been tried.

Socialism has failed everywhere it’s been tried… Surely today’s young people can create their own ideas and make their own mistakes rather than repeat those that darkened the times of their parents, grandparents and the generations before.

Now let’s look at a column by Richard Geddes of the American Enterprise Institute.

He notes that there’s a grim relationship not only between socialism and economic failure, but also that the ideology has a long list of victims.

Socialism has an abysmal record in the twentieth and twenty-first century, its effects include economic destruction, failure, and misery — Venezuela being the latest in a long line of wretched examples. Yet today, Democratic Party leaders such as Bernie Sanders and Alexandra Ocasio-Cortez are still proud to adopt the label of “democratic socialist.” …the more rigorously socialist principles are applied, the greater the human suffering, regardless of race, creed, or geographic location. …the grim statistics of those who died in the Soviet Union and elsewhere in the name of socialist experimentation (such as those who suffered forced starvation during the collectivization of agriculture) are pegged at about 100 million.

Geddes looks at the argument over how to define socialism and notes that regulation can be a back door form of socialism.

The Oxford English Dictionary defines socialism as: “A political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.” New socialists argue that the distinction between government ownership and regulation is critical, and that they want extensive regulation but not nationalization. Yet, if regulation is sufficiently intrusive and onerous, private property rights are neutered, and control is effectively transferred to the socialist state.

That’s also a good definition of fascism, for what it’s worth. In other words, nominal private ownership, but the heavy hand of government actually determines how resources are allocated.

Geddes notes that American socialists don’t favor dictatorship, but that doesn’t change the fact that their policies will have a very adverse impact on the economy.

New socialists argue that, unlike their 20th century counterparts, they oppose the use of force to achieve their policy goals, instead preferring peaceful democratic processes. …however, whether socialist ends are achieved through forceful or democratic processes matters little when it comes to the nefarious effects of policies such as “free” healthcare, “free” college tuition, and so on. The destructive effects on both the supply and demand side of those markets would be much the same in the end.

Like Muravchik, Geddes also explains that Nordic nations don’t qualify as socialist.

Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden) — beloved by some as examples of successful socialism. …those countries are in many ways more market-oriented that the United States… Indeed, those countries are decades ahead of the United States in adopting market reforms in two of my areas of policy expertise: postal services and infrastructure delivery.

My two cents is that the Scandinavian nations are not socialist based on the technical definition.

And here’s my amateur depiction of how that works, with degree of intervention measured from top to bottom. Notice that Sweden is well above the line and isn’t socialist (indeed, it is farther from socialism than the United States.

But if everyone now thinks socialism simply means a lot of redistribution, then we get a different picture.

Under this Crazy Bernie/AOC approach, Sweden is to the right of the line and is socialist but (perversely) Venezuela doesn’t qualify.

But maybe the way to accommodate both the traditional definition and the modern usage is to draw a diagonal line.

Here’s my depiction, and I deliberately put Sweden on the socialist side to make some of my lefty friends happy (though if you’re looking at overall levels of economic freedom, they shouldn’t be socialist unless the United States also is socialist).

The obvious takeaway is that it’s best to be near the top left, near Hong Kong. And it’s also good to avoid the bottom right (Venezuela being closest to that corner, which makes sense since it is in last place according to Economic Freedom of the World).

P.S. Since I bent over backwards to define socialism in ways to make the left happy, I will atone by calling attention to my collection of socialism/communism humor.

P.P.S. The Soviet Union, as far as I understand, didn’t have any sort of welfare state other than meager pensions for the elderly. So it’s in the lower left.

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I was in Bratislava earlier today as part of the Free Market Road Show, where I spoke about how European nations are in trouble because of excessive spending and aging populations.

But I’m not going to write about my presentation because Peter Gonda of the Konservatívny Inštitút M.R. Stefánika shared some data on the post-World War II economic performance of Czechoslovakia that is far more interesting.

As you can see from his chart (the English title would be “The Economic Reality of Socialism”), Czechoslovakia, West Germany, Austria, and Finland all had very similar levels of income in 1948. But over the next 40 years, the socialist Czechoslovakian economy (CZ) fell further and further behind the market-oriented economies of those other countries.

Indeed, after just four decades, the market-oriented nations averaged twice as much per-capita economic output at the beleaguered Czechoslovakian economy.

By the way, things have improved since the collapse of communism.

Czechoslovakia in the early 1990s peacefully split into two nations, the Czech Republic and Slovakia. And both of them have since adopted a decent amount of pro-market reforms and have begun to converge with Western Europe.

So our story has a semi-happy ending (though I wrote last year that I’m worried about Slovakia backsliding a bit).

P.S. If you want other compelling examples that show – over multiple decades – the superior performance of market-oriented nations, click here and here.

P.P.S. Under Soviet rule, Czechoslovakia was genuine socialism (i.e., government ownershipcentral planningprice controls), which obviously is more damaging than what many people think of today as socialism (i.e., punitive taxes and a big welfare state).

P.P.P.S. Ludwig Erhard deserves much credit for West Germany’s post-war recovery.

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I listed the collapse of Venezuela’s socialist dictatorship as one of my “hopes” for 2018.

That didn’t happen, so I included the same hope in my list for 2019.

But will it happen? David Asman seems very confident in this clip from a recent interview.

I was a bit less hopeful. Or at least more guarded in my ability to predict.

But one thing I can state with full certainty is that I hope it happens as soon as possible.

Though I have become a bit jaded. I no longer share lengthy compilations of everything that is going awry in the country.

As far as I’m concerned, the real debate is now whether a new government will adopt the right policies when Maduro is finally evicted (in other words, is there any hope for Chilean-style economic liberation?).

But there are a couple of stories and columns about the ongoing crisis that caught my eye.

Especially ones written by Venezuelans.

Andres Malave wrote for Investor’s Business Daily about what has happened to his country.

Hugo Chavez took power, promising to usher in shared prosperity for all with his “21st century socialism.” …So, when Teen Vogue tweeted recently, “Can’t #endpoverty without ending capitalism!” my initial reaction was, “Let them come to Venezuela.” Venezuela was once the most prosperous country in Latin America, but today almost 90% of its population lives in poverty. Venezuela’s economy is in shambles. …Venezuela’s misery means that it is not uncommon to see children rummaging through the garbage for food. And as basic medical supplies and medicine run dangerously low, newborns and the elderly die unattended in Venezuelan hospitals. …In a 2006 column, Sen. Sanders wrote: “These days, the American Dream is more apt to be realized in South America, in places such as Ecuador, Venezuela and Argentina,” all practitioners of 21st century socialism. …What’s particularly galling about Sen. Sanders waxing poetic about the virtues of socialism is that he looks the other way as socialist leaders live in opulence while the masses starve.

A retired professor who still lives in Venezuela explained the wrenching descent of his nation in the U.K.-based Spectator.

The descent began in the early 2000s when the Hugo Chavez government began to take control of…private companies, the judiciary and the police. The descent turned into a nosedive when Nicolas Maduro came to power and the state tightened its grip on oil production, our country’s main source of revenue. Investors fled and skilled workers emigrated. As living standards plummeted, the response was to print more money. Hyperinflation has been the result. …my friends and relatives have lost a lot of weight. We call it the ‘Maduro diet’. …Not so long ago, I lived as you do. I would have thought it impossible that my country, with its hard-won progress, could fall so quickly into the abyss. The wrong politicians with the wrong ideas can have a bigger effect than anyone can imagine.

I don’t want to discriminate against non-Venezuelans, so let’s look at excerpts from some other authors.

In a column for CapX, Kristian Niemietz points out that Venezuela was supposed to be an example of modern “democratic socialism.”

Chávez fans frequently emphasised the many ways in which Venezuela differed from the old Eastern Bloc. They were especially proud of the fact that there was no apparent conflict between socialist economics and political democracy. They also pointed out that the Chavez government, rather than just nationalising lots of big companies like the socialists of yore, was experimenting with lots of different models of social ownership, looking for alternatives to both private enterprise and conventional state-owned enterprises. And they were right. Chávez and Maduro never tried to imitate the former Soviet Union or any of its allies. They tried, really hard, to build something new. And look how that turned out. …Previous socialist experiments have gone through the same honeymoon period as Venezuela, during which they were widely and enthusiastically praised by Western intellectuals.

Notwithstanding, I’m sure we’ll still hear about how “real socialism hasn’t been tried.”

Actually, I’m open to the argument that what happened in Venezuela was a different form of statism.

Though the end result is always the same.

In the case of Venezuela, it’s like Atlas Shrugged in real life.

Francisco Toro opined in the Washington Post about the recent collapse of Venezuela’s power system.

In a country already trudging through a serious humanitarian crisis, the collapse of the electric grid is a final catastrophe. Venezuelans were already chronically hungry, with large numbers reportingthey lost weight because they could not afford enough food. …The stories coming out of hospitals up and down the country have been harrowing. Only some had working back-up generators, and virtually none were designed to carry a whole hospital over many days. A video of a nurse using a hand pump to try to keep an infant alive has been circulating on social media. Thousands of kidney dialysis patients, unable to receive treatment, may face a slow and agonizing death. …the Maduro government has blamed U.S. sabotage for the power crisis. …sabotage accusations against the United States lack any semblance of credibility: Venezuela’s power grid has been in gradual decline for over a decade. …over the past 12 years, the government has run the grid into the ground. After nationalizing the utility companies, the government simply stopped investing in routine maintenance of power stations or transmission lines, setting off a slow deterioration that has made the grid unstable for years.

A story from Fox looks at the wretched circumstances of ordinary Venezuelans.

Thousands upon thousands of Venezuelans pour into Colombia over the crowd cross-country bridge, their faces gaunt, carrying little more than a backpack. Rail-thin women cradle their tiny babies, and beg along the trash-strewn gutters. Teens hawk everything from cigarettes to sweets and water for small change. …the Venezuelans – many with university degrees or decent jobs in what was once the wealthiest nation in Latin America – are now resorting to whatever it takes to survive. …Women sell their locks to local wigmakers in Colombia for around $10-30, depending on length and quality. Other women sell their bodies. Girls as young as 14 line the Cucuta streets available “for hire,” earning around seven dollars “per service.” …more than 55 percent of the healthcare professionals – doctors, nurses, and others – have left the country. Resident doctors who have stayed in Venezuela earn the equivalent of $24 a month, while specialists make just a little more, at $30.

I’ve saved the worst for last.

BBC reports that Venezuela has become such a basket case that graves are being robbed.

At Caracas’s largest cemetery, Cementerio del Sur, most of the graves have been looted, for jewellery, gold teeth, or even bones, which can be sold for use in rituals. For grieving relatives like Eladio Bastida, who checks on his wife’s grave every week to make sure it’s not been looted, the situation is a metaphor for that of embattled Venezuela as a whole.

As far as I know, Venezuela has yet to experience cannibalism, so I suppose things can still get worse.

But that begs the question. Why did Bernie Sanders and other leftists and socialists lavish so much praise on Venezuela?

And now that the chickens have come home to roost and the economy has collapsed, why are they dodging questions about their past support?

Most important of all, why do they want similar policies for the United States?!?

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Redistribution has a corrosive impact on both ends. Recipients are harmed because they get trapped in dependency, and workers are harmed because taxes discourage productive behavior.

Yet young people seem susceptible to this ideology, even when they are among the main victims.

While it might be tempting to shrug and assume they’re hopelessly clueless, this video shows young people are quite capable of grasping why redistribution is a bad idea.

I’ve previously shared a similar video, as well as a couple of written versions of this redistribution challenge.

In this case, though, we have some additional analysis.

Here are some excerpts from the accompanying article.

…for the first time ever, more young people say they’d prefer to live in a socialist country over a capitalist one. Whether it’s free healthcare, free college tuition, or universal basic income, students around America increasingly support higher taxes on the wealthy in order to pay for these progressive policies.  But would they support similar policies if they had skin in the game? …Campus Reform‘s Cabot Phillips went to Florida International University in Miami to test the waters on a “Socialist GPA” policy in which students with higher GPAs would be forced to “spread the wealth” and give some of their GPA points to students with lower GPAs. Despite the overwhelming number of students who initially said they’d support socialist policies, few agreed to go along with such a plan.

Interestingly, the students actually are quite perceptive when they apply incentives in their own lives.

“I’ve lost a lot of sleep so I don’t know if that would be fair,” one student said, while another answered no because “I like, study all day for my grades.” Yet another student, after expressing her support for socialism in America conceded, “I guess it would be kind of hypocritical for me to say no.” Another student, trying to justify his refusal to abide by such a policy, said, “you study for your grades, and they reflect how much time you’re studying.”

As a wonky economist, the first thing I wondered about is how young people would react if they were asked about a small amount of redistribution (say 1/10th of a point of a GPA) compared to a large amount of redistribution (a full point of GPA).

I’m guessing they would realize that the damage of the latter would be more than 10 times the damage of the former – which is exactly the same thing you find when you examine the deadweight losses of ever-higher tax rates.

Two final points.

  • First, many young people don’t understand socialism. They think it’s just a proxy for caring. Or even for being sociable. It’s incumbent on advocates of freedom to help them understand the adverse implications (i.e., redistributing money is just as bad as redistributing GPAs).
  • Second, it won’t be easy to make an ethical appeal to young people if they perceive (and many do) that capitalism is the same as cronyism. Which is why self-styled conservatives (or Trumpians) who support favors for special interests do a lot of damage to the cause of freedom.

P.S. Since they are huge net losers from the current system, young people should be very amenable to a message of genuine entitlement reform.

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I’ve written about how totalitarian ideologies such as communism and Nazism have a lot in common. Both subordinate the individual to the state and both give the state power over the economy.

And both slaughter millions of people.

My buddy from grad school, Matt Kibbe, has a great video on this issue.

Needless to say, I agree with Matt’s characterization.

The battle is not right vs. left. It’s statism vs. individualism.

Let’s look at some writings on this issue.

We’ll start with an article by Bradley Birzer, published by Intellectual Takeout. He worries that totalitarianism on the left is making a comeback.

In 1936, you had three choices: National Socialism, international socialism, or dignity. In 2018, we find ourselves in similar circumstances… Why is this happening now…?  First, we scholars have failed to convince the public of just how wicked all forms of communism were and remain. …Almost all historians ignore the most salient fact of the 20th century: that governments murdered more than 200 million innocents, the largest massacre in the history of the world. Terror reigned in the killing fields, the Holocaust camps, and the gulags. …Second, an entire generation has grown up never knowing such things as the Soviet gulags or even the Berlin Wall. …most younger defenders of communism buy into the oldest propaganda line of the Left—that real communism has never been tried.

He explains that fascism and socialism are two sides of the same coin.

That the National Socialists embraced socialism is factually accurate. …they did nationalize very vital industry in Germany, even if by outright intimidation rather than through the law. In his personal diaries, Joseph Goebbels wrote in late 1925: “It would be better for us to end our existence under Bolshevism than to endure slavery under capitalism.” Only a few months later, he continued, “I think it is terrible that we and the Communists are bashing in each other’s heads.” Whatever the state of the rivalry between the two camps, Goebbels claimed, the two forces should ally and conquer. …The Italian fascists had even closer ties to the Marxists, with Mussolini having begun his career as a Marxist publicist and writer. A few Italian fascists even held positions in the Comintern.

Richard Mason makes similar points in a piece he wrote for the Foundation for Economic Education.

…how do we react to the hammer and sickle? I don’t have to write an article explaining the millions of deaths that occurred at the hands of communist regimes; like the Holocaust, the gulags of the Soviet Union and killing fields of Cambodia are widely known. Yet journalists in the UK openly and proudly advocate communism. Statues of Karl Marx are erected. …there is no justifiable way a fascist could argue ‘That wasn’t real Nazism.’ The same is not true for communism. …Since Karl Marx never implemented communism himself, the leaders of communist states always have that get-out-of-jail-free card. Any shortcomings, tragedies, or crises a communist regime faces can always be blamed on a misapplication of Marx’s infallible roadmap… The communist ideology in its purest form might be separated from its implementations, but at what point does its awful track record discredit any attempts to advocate it? …The history of communism is as bloodstained as that of Nazism; much more so, actually. It’s time we treated it as such.

Amen. I’ve weighed in on that issue, and I strongly recommend what Jeff Jacoby wrote on the issue as well.

And Sheldon Richman expands on this theme.

…fascism is socialism with a capitalist veneer. The word derives from fasces, the Roman symbol of collectivism and power: a tied bundle of rods with a protruding ax… Where socialism sought totalitarian control of a society’s economic processes through direct state operation of the means of production, fascism sought that control indirectly, through domination of nominally private owners. …Where socialism abolished all market relations outright, fascism left the appearance of market relations while planning all economic activities. Where socialism abolished money and prices, fascism controlled the monetary system and set all prices and wages politically.

He explains the vast gulf between capitalism and fascist economics.

…Entrepreneurship was abolished. State ministries, rather than consumers, determined what was produced and under what conditions. …Fascism is to be distinguished from interventionism, or the mixed economy. Interventionism seeks to guide the market process, not eliminate it, as fascism did. …Under fascism, the state, through official cartels, controlled all aspects of manufacturing, commerce, finance, and agriculture. Planning boards set product lines, production levels, prices, wages, working conditions, and the size of firms. Licensing was ubiquitous; no economic activity could be undertaken without government permission. …“excess” incomes had to be surrendered as taxes or “loans.” …since government policy aimed at autarky, or national self-sufficiency, protectionism was necessary: imports were barred or strictly controlled…fascist governments also undertook massive public-works projects financed by steep taxes, borrowing, and fiat money creation.

These are not new observations. Here’s what Ludwig von Mises wrote on this topic back in the 1940s.

The Marxians have resorted to polylogism because they could not refute by logical methods the theories developed by “bourgeois” economics, or the inferences drawn from these theories demonstrating the impracticability of socialism. As they could not rationally demonstrate the soundness of their own ideas or the unsoundness of their adversaries’ ideas, they have denounced the accepted logical methods. …The German nationalists had to face precisely the same problem as the Marxians. They also could neither demonstrate the correctness of their own statements nor disprove the theories of economics and praxeology. Thus they took shelter under the roof of polylogism, prepared for them by the Marxians. Of course, they concocted their own brand of polylogism. …Neither Marxian nor Nazi polylogism ever went further than to declare that the logical structure of mind is different with various classes or races. …Polylogism is not a philosophy or an epistemological theory. It is an attitude of narrow-minded fanatics.

And those fanatics are motivated by hate. The Nazis hate people of different races and religions, while the Marxists hate people of different incomes and classes.

Given the various articles cited above, this meme from The Matrix is spot on.

Well, we now know what happens when someone learns about the common characteristics of statist ideologies. The Daily Caller has a report on a student who got very upset after learning that the National Socialist Workers Party was…yes, socialist.

Social justice warrior and history major Shelby Shoup was arrested for throwing chocolate milk at a fellow student and College Republican tabling at Florida State University while saying “nazis weren’t socialists.” She has been charged with battery.

Since we’ve detoured into humor, this is a good opportunity to share this satire from the clever folks at the Babylon Bee.

At a press conference on Thursday, American Nazi Party leader Emmett Scoggins told reporters that his group is not trying to instate full-on Nazism, but a much better system called “democratic Nazism.” …Scoggins was questioned about the use of the word “democratic” and how democratic Nazism was any different from plain-old Nazism. “The main difference is we add the word ‘democratic’ on there because people like that word a lot more than just plain ‘Nazi,’” Scoggins said. …The conference ended with a long speech from Scoggins about…how “real” Nazism has never been tried.

I’ll close with my amateur attempt to classify various ideologies.

In the above video, Matt used a circle.

I’m wondering if a triangle makes more sense, with freedom at the top and totalitarianism at the bottom.

Here are a couple of additional observations on the triangle.

  • Back in 2017, I differentiated between liberal socialism and Marxist socialism. The same is true across the board. We could add a line right above authoritarian, collectivism, and socialism and assert that ideologies above the line are democratic and that ideologies below that line are dictatorial.
  • Given the difference between the technical definition of socialism (government ownership, central planning, price controls) and the everyday definition (lots of redistribution), I’m wondering whether I should use “welfare state” rather than “democratic socialism”? The end result isn’t pretty, regardless.
  • If we just focus on economic policy, I think my “statism spectrum” suffices.
  • If we just focus on the left, my Bernie-inspired classification system still holds up.

P.S. I like to think that there aren’t any civilized people willing to tolerate the Nazi ideology. But I do worry the same can’t be said about communism. The head of the European Commission recently helped celebrate Marx’s birthday, companies like Mercedes-Benz glorify racist murderers in their advertising (part of the Che death cult), and even symphonies use communist symbols.

How high does the death toll need to get before people realize that communism, like its sister ideology of Nazism is despicably evil?

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