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Archive for the ‘Socialism’ Category

As a libertarian who focuses on public finance, the 21st century hasn’t been fun.

  • Bush made government bigger.
  • Obama made government bigger.
  • Trump is making government bigger.
  • And I fully expect that Biden will make government bigger.

To be sure, we still have a long way to go on the “socialism slide” before the United States becomes Greece, or some other nation that might be considered socialist (however defined).

That being said, I don’t like the current trend. Which is why, in addition to my serious columns about the failure of socialism, I also like mocking that evil ideology.

Here are three new additions to the satire collection.

Our first example is partly based on the “not-real-socialism” excuse.

Next we have some satire about the left doesn’t learn any lessons from grocery stores in capitalist societies (to be fair, an American supermarket did change at least one mind).

As usual, I’ve saved my favorite item for last.

Venezuela is a tragic case study of what happens when economic liberty is smothered, But at least we get some clever humor.

I am surprised, for what it’s worth, that I haven’t seen more Venezuela-themed humor (here’s my only other example).

And I’ll close with the serious observation that I’m genuinely mystified that so many (especially young people) are attracted to an ideology with a wretched track record. Makes me genuinely worried that statism is on the winning side of history.

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I periodically share tweets that have some sort of remarkable feature, either good or bad.

Clever counter-tweets are especially appreciated. I even started giving recognition to the most brutally effective response each year.

But I may have been too quick to assign a winner for this year.

That’s because a Twitter account called @architecturpic published this tweet yesterday.

While it’s accurate to point out that highway exits don’t produce scenic architecture, is this an indictment of capitalism?

Not if you compare it to the slums of socialism, which is the message in this devastating response from @BrentCochran1.

Ouch. As the announcers might say at a tennis tournament, “game, set, and match for Brent Cochran.”

Suffice to say that there will have to be co-winners for the best counter-tweet of 2020.

By the way, it’s normally quite easy to find both nice and ugly architecture in any nation.

So to add a bit of hard data to today’s column, I’ll simply note that the average poor American has more spacious housing than the average middle-class person in Europe.

That doesn’t mean the housing will be architecturally significant, but it does indicate that people are better off in countries with smaller government and more economic liberty (indeed, it’s also worth noting that the average poor American enjoys higher overall living standards than middle-class folks in most other industrialized nations).

Which is why any tweet comparing socialism and capitalism has a foregone conclusion.

P.S. At some point, I’ll probably set up a special page for “Remarkable Tweets.” But since that hasn’t yet happened, here are the other tweets that I found to be noteworthy.

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Like most libertarians, I support decentralization and federalism. Under the right circumstances, I’m even sympathetic to the idea of secession (hooray for Brexit!).

This is why I have no problem with a community based on voluntary socialism. History tells us that approach doesn’t work (largely for the reasons captured in this cartoon), but people should be free to try over and over again.

Which brings us to “CHAZ.”

For those who haven’t been following the news, protestors in Seattle (motivated in part by legitimate concerns about police misbehavior) have seized control of a neighborhood and declared it to be the “Capital Hill Autonomous Zone.”

Some people see CHAZ as an example of self-government based on a strange mix of libertarian impulses (pro-gun, for example) and leftist impulses (anti-cop, for example).

The Washington Post has a rather sympathetic report about the group, written by Gregory Scruggs.

For the past several days, Ochoa, 28, has been serving as an unarmed volunteer “sentinel,” or guard, in the protest zone. Ochoa, a self-described leftist libertarian recently furloughed from the Seattle International Film Festival, and other volunteers have been serving four-hour shifts to help to keep the peace. …Core to the zone is a vision of a self-governed community with no formal policing. Instead, volunteers, many of them avowed police abolitionists, have begun to organize their own safety force. …Volunteers say this work is a way to highlight what a city without police might look like. “We have a chance to really build something here, so I have a vested interest in defending that as a part of my community,” said Ochoa, who lives in the city’s Capitol Hill neighborhood. …Markinson describes himself as an anti-fascist, anti-racist community defense advocate. He is a gun owner… Markinson views Seattle’s ongoing experiment as part of a lineage of anarchist neighborhoods… a sentinel who gave his name as James Madison stood at the southern barricade with an AR-15 draped over his chest, as he has done on other nights. …“There are a few of us who are armed.” …a hand-painted sign approaching the barricades offers watchwords: “In a world without cops we must never again become the cops ourselves.”

If nothing else, CHAZ is anti-authority, at least if traditional city government is the definition of authority.

But is it a viable system?

Robert Tracinski, in an article for the Bulwark, discusses potential problems.

…the Capitol Hill Autonomous Zone, endearingly nicknamed CHAZ…is the product of anti-police protests in Seattle that led the mayor to order the abandonment of one of the city’s downtown police precincts, ceding a six-block area of Seattle’s downtown to the protesters, who have turned it into a kind of anarcho-socialist utopia, with free food, free music, no cops, and lots of peace and love, man. …CHAZ certainly set a record for socialist utopias when it comes to running out of food. Within the first day, they were already sending out the alarm: “The homeless people we invited took away all the food at the Capitol Hill Autonomous Zone. We need more food to keep the area operational…” I’ve checked to see whether this is parody, and as far as I can tell, it’s not. …Another area where they are well ahead of schedule for a socialist utopia is in putting up walls and establishing checkpoints with internal passports. …This leads us to the big question about the “autonomous zone”: Whose “autonomy” is it? Certainly, it’s not the autonomy of the people who actually live there, who did not invite the protesters and never had the opportunity to vote on whether they wanted to reject the protection of the Seattle PD and establish new protectors. …With leadership seemingly up for grabs, CHAZ is the scene of sporadic petty scuffles, which activists are asking people not to film because it might make them look bad. Yes, well, I’m sure the Minneapolis PD felt the same way. …My favorite description of CHAZ is from a Seattle Times article which says it has “mostly been peaceful.” That’s a favorite bit of journalistic spin. “Mostly peaceful” is how you describe something that’s violent when you don’t want the reader to draw that conclusion.

Tracinski certainly is correct that existing property owners haven’t consented to the new system.

And he’s probably correct in that the new form of authority in CHAZ may be even more arbitrary and unfair than the old system (time will tell).

But he only scratches the surface of the issue that is of greatest interest to me, which is whether CHAZ has a viable economic system.

Ideally, local businesses will be free to operate and to transact with the outside world. And if there are no taxes and nobody to enforce red tape, we might almost see an example of anarcho-capitalism.

For what it’s worth, I’m guessing Seattle bureaucrats intend to retroactively collect taxes and take other steps to make sure there is no long-run reduction in the burden of government for CHAZians.

What about in the short run? In a column for Spectator USA, Ben Sixsmith suggests that authorities should adopt a hands-off attitude and let CHAZ sink or swim.

A group of anarchists and leftists collected in Capitol Hill, known for its hipster and LGBT scenes, they have barricaded themselves into a small area and established an anarchic intentional community… Seattle’s aspiring revolutionaries had only just announced the creation of CHAZ, as a place in which progressives can live free of corporate consumerism and police violence, when a local rapper-cum-warlord named Raz Simone began stalking the place with an armed militia. …I believe that the state and federal authorities should leave them alone. If people are being raped and killed in CHAZ then the officials will have to get involved, of course, but otherwise they should be left to their own devices. …for radical leftists to establish their own territory is, frankly, refreshing. For years they have been insisting that the culture, communities, education, religious beliefs et cetera of their fellow citizens be transformed in accordance with their own idiosyncratic ideas. Everyone has had to conform with their progressive beliefs. The CHAZers? They aren’t trying to reshape America. They are trying to build a place of their own. How is that not preferable? …Of course, I think CHAZ will be an embarrassing failure. I suspect it will collapse in a heap of shortages, grievances and recriminations… If it all collapses of its own accord, then a lot of radical progressives are going to have a tough, useful lesson in the value of civilized institutions.

In other words, let’s allow CHAZ to be a test case.

If it adopts a bunch of leftist policies (which seems likely), then we’ll almost surely see another example of socialism failing, even when it’s voluntary.

Though I’m crossing my fingers that the CHAZians adopt a libertarian approach to economics.

Given that Seattle has a very left-leaning government, we then might finally get an example to disprove Jacob Leddy.

Sadly, I don’t think that will happen. The city’s crazy politicians will be more than happy to tolerate CHAZ if it’s a socialist experiment, but they’ll send in the cops if it morphs into a libertarian experiment.

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Assuming the Democrats also win the Senate along with the White House, we may be poised to take a big leap in the direction of bigger government and more statism (which is why I explained a Clinton victory in 2016 would not have been the worst possible outcome).

As such, we may as well enjoy some laughs about our potential socialist future.

We’ll start with a creative reinterpretation of a scene from King of the Hill.

Looks like we’ll have to figure out other ways of rescuing young people from socialism.

Here’s a clever tweet from @ClassicLiberal.

Having visited Moscow shortly after the collapse of the Soviet Union, I can assure you that socialist economies do a terrible job of producing goods that consumers actually value.

I’ve written many times about people on the left not understanding the real definition of socialism (government ownershipcentral planning, and price controls), so this next meme appealed to me.

And it also will appeal to me left-leaning friends since it shows that some folks on the right also don’t understand that the debate over socialism is not the same as the debate over redistributionism.

Last but not least, here’s the humorous version of my full-socialism-vs-full-stomachs column.

Very similar to the last memes in this column and this column.

Though, given what’s happening in Venezuela, we probably shouldn’t laugh.

P.S. For more examples of socialism humor, here’s a link to my collection.

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When making the case against socialism, I’ve pointed out how that coercive ideology is an evil and immoral failure.

But maybe the best argument is contained in this very short video that was shared by a group of Tory activists in the United Kingdom.

Ms. Badenoch is now a member of the United Kingdom’s Parliament, and she was describing what it was like to grow up in Nigeria, a country where capitalism was not allowed to flourish.

Given the upside-down incentive system created by socialism, it’s no surprise that she endured hardship.

And while her story is just an anecdote, there is overwhelming evidence that nations with more economic liberty generate much better outcomes for ordinary people.

If you’re interested in learning more Ms. Badenoch, the U.K.-based Daily Mail profiled her back in 2017.

Kemi Badenoch is black; although British-born, she was raised in Nigeria by African parents, returned to England when she was 16 and rose from impoverished first-generation immigrant to parliamentarian in just 21 years. …Kemi, 37, married with two young children, won her safe seat in rural Essex with a 24,966-seat majority after Sir Alan Haselhurst, 80, stood down after 40 years. …What’s more, she was chosen ahead of Theresa May’s special adviser Stephen Parkinson, a Cambridge-educated white male. Kemi’s maiden Commons speech…marked her as a rising star. She spoke of her African childhood, saying: …‘Unlike many colleagues born since 1980, I was unlucky enough to live under socialist policies. It is not something I would wish on anyone, and it is just one of the reasons why I am a Conservative.’ …Kemi has a refreshing view of politics. …She supports Brexit — ‘the greatest ever vote of confidence in the project of the United Kingdom’ — and her heroes are Winston Churchill, Margaret Thatcher…she made a last-minute decision in favour of Leave. ‘And since, I’ve felt more and more confident that it was the right one,’ she says. ‘Many people who voted Brexit warmed to me because they felt I wasn’t a typical Leave voter. I’ve no time for those who say, “Brexit is all about racism.” That’s offensive. ‘It’s about sovereignty, bureaucracy and how we make our laws. …Kemi is fired up by the patriotism of the emigre who chose to live in Britain. ‘I’m Conservative because of the experiences I’ve had,’ she says. ‘I know what it’s like to live in a Third World country run by a regime with Socialist principles. It shaped my outlook and helped me appreciate how great Britain is.’

She was on the correct side on Brexit and Thatcher was one of her heroes. And she got the seat after beating out an ally of Theresa May, who was on the wrong side of Brexit.

That’s a very nice combination, but I want to zoom out and make a big-picture observation about how Ms. Badenoch’s move to the United Kingdom is part of a global pattern.

Simply stated, people vote with their feet against socialism.

People didn’t try to escape from West Germany to East Germany.

There are no caravans marching toward Venezuela (notwithstanding this satire).

Refugees aren’t in ramshackle boats trying to go from Florida to Cuba.

By the way, people also vote with their feet against big government inside the United States.

Needless to say, there’s a lesson to be learned from these migratory patterns.

P.S. If you like first-hand accounts of what it’s like to live under socialism, I recommend these videos from Gloria Alvarez, Thomas Peterffy, and two Venezuelans.

P.P.S. Ms. Badenoch’s video is only 37 seconds, but you can also learn about socialism in videos that last 10 seconds or less.

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What’s the most poorly governed city in the United States?

Those are all good options, but Seattle may deserve this award. Following municipal elections last November, the City Council is controlled by hard-left members who want to impose the local version of “democratic socialism.”

In a National Review article from February, Christopher Rufo describes their agenda.

Seattle has effectively become the nation’s laboratory for socialist policies. Since the beginning of the year, the socialist faction on the Seattle City Council has proposed a range of policies on taxes, housing, homelessness, and criminal justice that put into practice the national democratic-socialist agenda. In the most recent session, socialist councilwoman Kshama Sawant and her allies have proposed massive new taxes on corporations, unprecedented regulations on landlords (including rent control and a ban on “winter evictions”), the mandated construction of homeless encampments, and the gradual dismantling of the criminal justice system, beginning with the end of cash bail. …In order to consolidate their newfound power, the progressive-socialists have begun to manipulate the democratic process in their own favor: first, by providing all Seattle voters with $100 in taxpayer-funded “democracy vouchers,” which are easily collected by unions, activists, and socialist groups; and second, by implementing a ban on corporate spending in local elections… the progressive-socialists are no longer interested in gaining reasonable concessions; they intend to overthrow capitalism itself.

The Wall Street Journal opined this week on the latest development in Seattle’s suicidal approach.

The economy is on life support, but that isn’t stopping the Seattle City Council from trying to soak employers with a new tax on hiring. …The proposal is a reprise of the council’s 2018 tax on each new hire that was repealed amid public opposition. The new proposal “is 10 times larger than the 2018 version, and it’s also in an economy that’s about 1,000 times worse,” says James Sido of the Downtown Seattle Association…a 1.3% payroll tax on most Seattle businesses with $7 million or more in payroll. …Businesses would be assessed based on the prior year’s payroll, but revenue has cratered this year amid the pandemic. …businesses on the margin that have been forced to lay off or furlough employees may not bring them back if it means crossing that $7 million payroll threshold. The tax would discourage smaller companies from growing in Seattle. …Seattle is the hardest hit city in the U.S., with unemployment rising 105.92% between January and March. Only a socialist would think now is the time to further punish job creation.

Good points.

Though I would add that it’s never a good time to raise taxes and punish job creation.

Here’s what the greedy members of the City Council don’t understand (or pretend not to understand):

It’s complicated and difficult to move out of a country.

It’s a potentially expensive hassle to move out of a state.

It’s relatively easy to move out of a city.

And that’s why Seattle’s experiment with socialism is bound to fail.

If the socialists on the City Council impose this tax, there inevitably will be an out-migration of entrepreneurs and businesses to surrounding suburbs. That will be bad for ordinary people in the city (a point that workers in the economy’s productive sector already understand).

And when that happens, I wonder if they’ll learn that it is possible to run out of other people’s money?

P.S. Seattle’s politicians already have destroyed jobs and ruined businesses with a big increase in the minimum wage.

P.P.S. The constitution of the state of Washington prohibits an income tax, so there’s an ongoing debate whether Seattle’s tax grab – if enacted – would survive a court challenge.

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Nine days ago, I wrote about Dana Milbank scoring an “own goal” because he claimed we needed bigger government to deal with coronavirus, yet all the nations he cited for their effective responses actually have a much smaller fiscal burden than the United States.

Today, we have the Twitter equivalent of an “own goal.”

R.D. Hale, a British guy from the #SocialistCampaignGroup tweeted that he wants to move to an island and start a new country with Jeremy Corbyn and Bernie Sanders.

As far as I’m concerned, that’s a good idea. I certainly wouldn’t be upset if hard-core leftists decided to leave the United States (there’s even a satirical version of this idea).

But Tom Harwood, as you can see, had a response that was far more clever.

Ouch! I don’t know if “own goal” does this justice. This is a brutal dunk by Harwood on Hale.

Especially since both Sanders and Corbyn actually have offered praise for Castro and Cuba.

The bottom line is that the utter misery and deprivation of the Cuban people is a pretty good indication of what would happen if lunatics like Sanders and Corbyn ever had free rein to impose their policies in the U.S. or U.K.

P.S. Here’s the best counter-tweet of 2019.

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Say goodbye to “Crazy Bernie.” The socialist senator from Vermont has ended his bid for the Democratic nomination.

I have mixed feelings. Given his genuinely awful views about socialism, I’m glad there’s no risk Bernie Sanders will be in the White House next January.

On the other hand, he deserves credit for being honest about his agenda. And he was a wonderful source for satire and humor.

And that’s today’s topic.

We’ll start with some material about Bernie’s agenda and his campaign and then we’ll close with some jokes about his departure from the presidential race.

This one will only make sense if you’ve seen the 1989 comedy, Weekend at Bernie’s.

But Bernie was never just about free stuff.

He also had a soft spot for totalitarianism. Here’s a story published by the comedic geniuses at Babylon Bee before Bernie exited the race.

At a special campaign appearance abroad in Berlin, Bernie made waves with an ambitious new campaign promise to rebuild the Berlin Wall. …At the announcement, the crowd threw their soy lattes in the air and erupted in a rapturous chant of “Построить эту стену!” which is roughly translated as “build that wall!” Sanders looked out on a sea of hope-filled faces, giddy over the prospect of restoring the majestic landmark built by the German Democratic Republic. The cheering intensified as Bernie promised that not only will he build the wall, but that he will make Trump voters pay for it. …Current estimates say that construction of the wall will provide 2 million shovel-ready jobs and cost approximately 382 billion dollars per mile.

But who would fill those “2 million shovel-ready jobs”?

Not his supporters if this bit of satire is accurate.

As you can see from this image, his economic policies never made much sense.

The coronavirus crisis presumably didn’t help Crazy Bernie’s campaign.

The Babylon Bee reported that Bernie had a hard time maintaining social distancing.

Those suffering the most are American politicians, who have been having quite a bit of trouble staying six feet away from citizens’ wallets. Bernie Sanders was hardest hit by CDC guidelines, as he struggled to stay away from Americans’ wallets, purses, and checkbooks. “These guidelines are ridiculous!” he shouted while feeding pigeons at the park… “How am I supposed to steal money to buy another hou — err, I mean, to give some of it to the 99% — when I can’t even get within six feet of anyone? It’s impossible!” Sanders tried using a makeshift fishing rod, casting it out toward purses left on park benches and reeling it back in.

And the disease may have helped to end his campaign by reminding people what life would like like in a socialist paradise.

Needless to say, it was a poignant moment when the Vermont socialist broke the news to his most avid supporters.

Speaking of his many houses, the Babylon Bee has the scoop on Bernie’s real motive for leaving the race.

Democratic presidential primary candidate Bernie Sanders has dropped out, announcing he wants to spend time with his many, many houses. “It just seemed silly to spend all this time campaigning when I’m neglecting my many houses,” Sanders explained to his supporters. “I’ve made a huge profit pushing socialism and amassed much real estate, and it’s time I enjoy it.” …Now that Bernie Sanders has dropped out, he’s endorsed Donald Trump, whom he refers to as an “idol,” and says he hopes to buy many more houses so he can have a real estate empire just like Trump.

Though maybe the real reason he dropped out is that he’s actually achieved his goals.

The Babylon Bee has the details.

As the coronavirus panic has already accomplished the aims of his socialistic policies, Sanders realized the country didn’t need his public service anymore. Unemployment has skyrocketed, grocery stores have empty shelves, and everyone is confined to their homes on penalty of arrest. This “idyllic paradise” is exactly what Sanders wanted in the first place, so he says he can leave the race satisfied that his vision has been achieved. “This once-in-a-lifetime deadly pandemic has already accomplished what socialism aims to do,” Sanders said in his concession speech. “Since my services are no longer required, I will be suspending my campaign and heading to my house. Well, one of my houses. I haven’t decided which yet. …Sanders also pointed out that his other main goals of hyperinflation and total dependence on the government are already on their way.

Which is also the message of this final addition to our collection of Bernie humor.

P.S. If you haven’t overdosed on Bernie humor, here are some prior columns focusing exclusively on that topic.

And we also have some one-off examples of Bernie humor:

We will miss mocking Bernie. Fortunately, his replacement already exists.

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Most economic downturns are caused by misguided government policy, which leads to predictable battles over how to address the fallout as well as battles over how to avoid the same mistakes in the future.

Today’s crisis is different. It’s more akin to a natural disaster. But it’s not a one-off event like a big hurricane or earthquake. It’s an ongoing pandemic, which is having a terrible impact on many sectors of the economy. And if it lasts a long time, the consequences will be catastrophic depression rather than ordinary recession (which is why it is reasonable to contemplate the economic and health tradeoffs of re-opening the economy).

To deal with the immediate consequences of this crisis, Washington has responded by approving a mutli-trillion dollar relief package. And I won’t be surprised if politicians come back with another huge package.

Since responding to a pandemic is a legitimate function of government, I don’t have a principled objection to emergency legislation (for wonky readers, there’s an interesting debate in libertarian circles about whether government assistance – even bailouts – can be justified because government has ordered a shutdown of economic activity, which can be viewed as a “regulatory taking“).

That being said, I worry that self-interested politicians will use the crisis as an excuse to shovel goodies to their friends and cronies.

And I also want to minimize the danger that politicians will use the crisis as a reason to permanently expand the size and scope of government.

I’ve already written about how the crowd in Washington is exploiting the crisis with regards to three different issues.

Today, let’s consider a potential downside of providing assistance to companies. We’ll focus on airlines, but the lessons apply to any businesses that get government assistance.

A Bloomberg report explains why this issue, in general, is controversial.

…the administration may consider asking for an equity stake in corporations that want coronavirus aid from taxpayers. …Against that, there’s the potential for political risk. During the financial crisis, some Republicans decried a tilt toward European-style socialism. The current crisis coincides with the — albeit fading — candidacy of Bernie Sanders, and his democratic socialist platform. …“This is a very big slippery slope because the ownership of private capital by government is not traditionally consistent with capitalism,” said Kevin Caron, portfolio manager for Washington Crossing.

The Wall Street Journal‘s editorial on this issue focuses on the airline industry and makes some very important points.

America’s beleaguered passenger airlines are allocated roughly $50 billion in the coronavirus relief bill… The idea is simply to freeze the staff list for six months, at which point the pandemic might have receded and air travel recovered. In exchange, Congress has authorized the Treasury Secretary, at his sole discretion, to “receive warrants, options, preferred stock, debt securities, notes, or other financial instruments” that constitute “appropriate compensation to the Federal Government.” …The desire to get something for the taxpayer’s buck is understandable, but there’s a real risk here of a long-term nationalization. …Washington should have no role in directing the business of a private company, and Treasury Secretary Steven Mnuchin perhaps would agree. What if his successor turns out to be Treasury Secretary Elizabeth Warren? …Helping the airlines weather a 100-year pandemic might be, arguably, within the government’s job description. Owning them isn’t.

The bad news is that are no good options.

It’s not a good idea to simply give taxpayer money to airlines. And it’s also not a good outcome for airlines to go bankrupt, perhaps leading to a total shutdown rather than a reorganization.

Some outcomes, however, are worse than others. And having government as a major shareholder is the option with the greatest long-run risk. Simply stated, it’s a recipe for cronyism and industrial policy.

Based on what’s already happened on issues such as energy and trade, I don’t trust President Trump and his team to have a hands-off attitude. What will happen, as we approach the November election, if the White House thinks it can win a key state by forcing a company (either an airline or any other affected firm) to increase jobs and/or pay?

Or, if you happen to trust Trump, what happens if Joe Biden wins in November and – as the Wall Street Journal warned – a dogmatic interventionist like Elizabeth Warren becomes Treasury Secretary.

She already has a very bad track record on issues of corporate governance. Do you want her to have the power that comes with being a major shareholder?

For all intents and purposes, this is why I unveiled the Fifth Theorem of Government last September.

I’ll close with some troubling observations about where we may be heading.

  1. The technical definition of fascism (at least with regards to its economic policy) is nominal private ownership of business but government control.
  2. The technical definition of socialism is outright government ownership and control of business (along with other policies such as central planning and price controls).

Which raises the depressing issue of how much government ownership is required to get to #1 and how much additional government ownership is required to get to #2.

Could it be that Bernie Sanders may be the real winner, regardless of who is in the White House next year?

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While it’s good news for the country that Bernie Sanders has faded in the polls, there’s a dark lining to that silver cloud.

For all his faults, Crazy Bernie at least was open and honest about his desire for socialism (unlike certain other candidates, who have hard-left platforms, but nonetheless are characterized as moderates).

But openness and honesty are not the same as common sense.

Consider, for instance, Crazy Bernie’s oft-stated assertion that we can afford big government because the United States is the richest nation in the history of the world.

There are two problems with what Bernie is saying.

First, we’re not actually the world’s richest nation.

Countries such as Monaco, Luxembourg, Liechtenstein, Singapore, and Switzerland rank above us, whether we’re measuring per-capita annual income or per-capita net wealth.

To be fair, that doesn’t change the fact that the United States is a very prosperous nation. Especially compared to most other western countries.

But that brings us to main point of today’s column.

Second, America is very prosperous because we haven’t followed Bernie’s recipe for bigger government.

That’s true today and it’s been true in the past. Compared to other nations, the U.S. historically has enjoyed very high scores for economic liberty.

Crazy Bernie and his supporters will argue that none of this matters. They’ll simply assert that the United States is a rich nation and therefore politicians should impose higher tax rates and fund bigger government.

But this ignores the fact that rich nations that adopt big government slowly but surely cease to be rich nations.

In other words, there’s a very challenging paradox for people like Bernie Sanders. They want a wealthy society so there’s lots of loot to redistribute, but their policies make it harder for societies to create wealth.

The bottom line is that there’s no such thing as a free lunch. Even the nations that try to minimize the damage of big government, such as Denmark and Sweden, suffer gradual decline.

Which helps to explain why none of my friends on the left have ever been able to successfully answer my two-question challenge.

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I would like to think that the election results from Super Tuesday signify a rejection of the evil and destructive ideology of socialism. After all, despite promising the most handouts, Bernie Sanders was defeated in most states and quickly went from being the front-runner to a long-shot candidate.

This chart shows how political betting markets have dramatically changed in the past couple of days. Crazy Bernie (in green) has collapsed with Biden (in blue) has skyrocketed.

Moreover, the other explicitly hard-left major candidate, Elizabeth Warren, saw her support collapse even earlier.

Daniel Henninger of the Wall Street Journal opined today on the implications of this week’s political earthquake.

Before the voting began Tuesday it was conventional wisdom…that something called progressivism was on the march in the U.S., sweeping aside decades if not centuries of belief, history and tradition with a new agenda of wokeness, identity politics and socialism. …Guess what? The voters still get the last word. …Progressives, however much they dominate the culture, keep losing big, competitive elections. …Joe Biden, hardly a commanding presence, is a proxy for Democratic voters’ pragmatism and their doubts about Mr. Sanders, socialism and the American left.

By the way, it’s not just that Crazy Bernie got trounced.

As reported by the New York Times, many hard-left congressional candidates also are being rejected.

Ms. Ocasio-Cortez previously suggested that Democrats who were not sufficiently loyal to an emergent brand of progressive politics should have others like her run against them in a primary. She is now suggesting that, exit polling be damned, Mr. Biden’s latest string of successes is because of the strong-arming of corporate lobbyists, something Mr. Sanders has underscored by repeatedly calling Mr. Biden the establishment candidate. But the results speak for themselves. Ms. Ocasio-Cortez threw her weight behind Cristina Tzintzún Ramirez in her Senate primary campaign in Texas to defeat the Democratic Senatorial Campaign Committee’s chosen candidate, M.J. Hegar. Ms. Hegar ended up easily outpacing a crowded Democratic field.

All of this is very encouraging, but I’m still worried.

There are three reasons why I’m not brimming with optimism.

First, as explained by Annie Lowrey for the Atlantic, a non-trivial number of young people are enamored with the evil ideology of socialism.

A striking generational divide has emerged. Older people still see socialism and communism as dangerous, authoritarian political systems, whereas younger people are more likely to see them as economic systems, and to care far less one way or another. For millions of potential voters, the Red Scare is no longer so scary. …The simple passage of time explains a lot. Millions of Millennials and Gen Zers were never exposed to the threats of the Soviet Union; they did not live through the fall of the Berlin Wall… A recent poll conducted by the Victims of Communism Memorial Foundation showed that 36 percent of Millennials have a favorable opinion of communism, as do a quarter of Gen Zers. Roughly half of the members of those two generations have a favorable view of socialism and thinks the government should act as an employer of last resort. One in five Millennials thinks the Communist Manifesto better “guarantees freedom and equality” than the Declaration of Independence and thinks society would be better off if the government abolished private property.

I’ve shared plenty of additional data to confirm this worrisome trend.

Second, older Democrats may not embrace the socialist label, but they have shifted in that direction.

I previously wrote about how even prominent folks on the left agree that Joe Biden is far to the left of both Barack Obama and Hillary Clinton.

This graphic from the New York Times illustrates how the rest of the Democratic establishment (as measured by party platforms) has also veered toward statism.

For what it’s worth, the “Median party” line shows the average position of the world’s other political parties, so the takeaway is that America’s Democrats (and the U.K.’s Labour Party) are now further to the left than some of the world’s socialist parties.

Third, while the Republican Party hasn’t moved to the left based on its platforms, I fear that the GOP isn’t motivated today by a Reagan-style belief in limited government and individual liberty.

It’s not just that Trump is a big spender (and a protectionist). Every major Republican in the post-Reagan era has expanded the burden of government and rejected the principles of classical liberalism.

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It’s frightening that an out-of-the-closet socialist like Crazy Bernie is the Democratic frontrunner and it’s disheartening that so many young people are attracted to that poisonous ideology.

The only silver lining to this dark cloud is that I get sent endless examples of clever anti-socialist humor.

I have an entire page dedicated to the genre and today is another opportunity to expand the collection.

We’ll start with an apt illustration of “democratic socialism,” akin to this balloon example.

Given the grossly inadequate track record of socialism, this next item is quite appropriate.

Indeed, it gives me an opportunity to re-issue my two-question challenge and ask anyone to give me a successful example of real-world socialism?

Here’s a recently released parody of a news report from the Socialist News Network.

Our next example asks why people don’t flee to socialist nations?

A literal example of “voting with your feet.”

Speaking of socialism, I can’t imagine that Greta Thunberg actually favors communism, but she certainly favors massive levels of government intervention and control.

Though Venezuela, as you can see from this bit of satire, certainly hasn’t benefited from that approach.

The final two items are my favorites.

First, we learn that socialists don’t necessarily want everything you have.

Second, we get a hint of why some academics support socialism.

For what it’s worth, I’m pretty sure this is the prof who gave AOC her economics degree.

P.S. I also have plenty of examples of Bernie Sanders satire, which is a special genre of socialist humor.

P.P.S. In the interest of equal time, here’s my collection of libertarian humor.

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Last week, I shared a 24-question quiz that ostensibly determines whether you’re a communist.

Though it might be just as accurate to ask one simple question: Do you have warm feelings about the Marxist dictatorship in Cuba?

On that basis, Bernie Sanders fails.

At best, he’s an ignorant dupe and apologist. At worst, he’s a true believer.

Regardless, his views are wrong and easy to debunk.

Writing in the Washington Post, Francisco Toro opines about Bernie Sanders and Cuba.

…you can begin to glimpse the enormous concern Venezuelans and Cubans feel when we hear Bernie Sanders praise Fidel Castro’s education system. …Cuba’s overall educational performance is middling for the region: roughly similar to that of many other Latin American countries… There was never any need to build a police state to bring people to school — an insight so obvious, it’s ludicrous to even have to write it. …To Cubans and Venezuelans — who have witnessed much the same kind of propaganda — talk of Cuban educational prowess grates not because it’s wrong, exactly, but because it serves as a simple way to identify who’s ready to be duped by regime apologists. …When Sanders parrots Fidel’s propaganda, he fails the test.

What’s especially grating is that the propaganda is either false or misleading.

Marian Tupy and Chelsea Follett summarize just a few of the problems with fawning claims about Cuba’s performance.

…in a recent 60 Minutes interview on CBS. Senator Sanders applauded Cuba’s education and healthcare system. Potential Sanders supporters should know that Cuba’s literacy rate and healthcare system are nothing to lionize. First, consider literacy. …Cuba’s literacy rate rose by 26 percent between 1950/53 and 2000. But literacy rose even more, by 37 percent, in Paraguay. Food consumption in Cuba actually declined by 12 percent between 1954/57 and 1995/97. It rose by 19 percent in Chile and by 28 percent in Mexico over the same time period. …Next, consider healthcare. Sanders has repeatedly extolled Cuba’s healthcare system… Life expectancy is the best proxy measure of health. According to Cuba’s official data, it rose by 25 percent between 1960 and 2017. Yet life expectancy increased even faster in comparable countries: in Mexico it improved by 35 percent, in the Dominican Republic by 43 percent, and in impoverished Haiti by 51 percent.

For what it’s worth, President Obama’s favorable comments about Cuban health care also were embarrassingly inaccurate.

The bottom line is that Cuba performs poorly when looking at education, health, nutrition, and other variables.

But none of that should be a surprise since poor countries generally can’t afford good things or deliver good outcomes.

And the lesson we should learn is that Cuba is poor because government is far too big. Simply stated, the absence of capitalism has been a recipe for misery.

The most shocking statistic is that living standards in Cuba and Hong Kong were very similar when Castro first imposed his version of Marxist socialism.

Yet now there’s a giant gap, with people in Hong Kong enjoying unimaginable prosperity compared to the impoverished residents of Cuba.

Let’s close with two additional items. First, here’s a video from four guys who traveled to Cuba for an up-close view of socialism.

And if you liked that video, here’s another first-hand account of the (nonexistent) glories of Cuban socialism.

Our final item is this look at a street, both as it looked before communism and how it looks today.

The lesson, of course, is similar to the one that we get when examining North Korea from outer space. Communism simply doesn’t work.

P.S. On the topic of silly propaganda, Jeffrey Sachs actually rates Cuba above the United States for meeting development goals, and Cuba also was placed above the United States by a radical environmental group.

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Because of his extremist views, I often refer to Senator Sanders as “Crazy Bernie.”

You can argue I’m being unfair. After all, I pointed out during the last campaign that his voting record in the Senate was almost identical to the voting records of Hillary Clinton and Barack Obama (his vote rating also was similar to supposed moderate Joe Biden when he was a Senator).

But that doesn’t necessarily mean they think the same or have the same agenda. As the cartoon illustrates, Bernie wants to travel at a faster rate in the wrong direction.

And it’s quite likely that he wants to travel farther in the wrong direction. And he may even want to get to a very unpleasant destination.

You don’t have to believe me. You can simply listen to what Bernie Sanders has said, in this video narrated by Maxim Lott.

And if that’s not enough, here’s a video from Reason that has more of Crazy Bernie’s extremist statements.

So what should we think when we examine Bernie’s past statements, review his voting record in Congress, and also analyze his current platform?

Is he a radical? Crazy? A Marxist? A democratic socialist? A socialist democrat? Some combination of all those options?

We obviously have no way of knowing what his real motives and thoughts are, but James Pethokoukis of the America Enterprise Institute speculates whether Sanders has learned anything.

What lessons have the events of the last half century taught Bernie Sanders? …He’s certainly seen a lot that would seem to have direct bearing on his ideology, especially the collapse of the Soviet Union… Was he “very distressed” at the failure of the centrally planned Soviet economy? He certainly should have been, but only offers a condemnation of the authoritarian political system. …No wonder he’d rather talk about Scandinavia as his socialist success story. Those tiny economies score well on just about every economic metric. But there’s more to them than universal healthcare and generous paid leave. The Nordic model, according to a recent JPMorgan report, “entails a lot of capitalism and pro-business policies…” That’s stuff antithetical to the Sanders democratic socialist agenda. Indeed, the report concludes, “A real-life proof of concept for a successful democratic socialist society, like the Lost City of Atlantis, has yet to be found.”

For what it’s worth, Ryan Bourne points out that his agenda is more extreme than Jeremy Corbyn’s (which is not an easy task).

…some commentators are downplaying his socialist credentials, painting the veteran Senator as no more than a moderate social democrat. …To simply label him a socialist, without any caveats, is misleading. But it’s even more grossly misleading to suggest his “democratic socialist” ambitions stop at a Scandinavian-style welfare state. More redistribution is central to his agenda, sure, but he also proposes massive new market interventions, including the Green New Deal, a federal jobs guarantee, expansive price and wage controls… Sanders’ platform goes far beyond any modern social democracy in terms of government size and scope. Indeed, his policies can only be considered moderate if some three-way lovechild of the economics of 1970s Sweden, Argentina, and Yugoslavia’s market socialism is the baseline. …compare Labour’s 2019 manifesto against the Sanders’ economic platform. Doing so makes clear that Bernie is more radical than Corbyn on economics, both in absolute terms and relative to their countries’ respective politics. …Combined with national insurance, Labour’s top marginal income tax rate would have been 52%. Sanders’ top federal income taxrate alone would be 52%, bringing a top combined top rate of around 80% once state and payroll taxes are considered. Sanders wants a new wealth tax too, another option Labour shirked. …where there are differences, it’s because Sanders is offering the more radical leftwing policies. He and Labour both proposed big minimum wage rises, national rent control, mandated employee ownership, and workers on boards, for example. But where Labour proposed 10% worker ownership stakes in large companies, Sanders would mandate 20%… on the role of government, the declared economic platforms are instructive. Call it “democratic socialism,” or just plain old “interventionism,” Bernie Sanders is, in many respects, putting a more radical interventionist offer to the electorate than Jeremy Corbyn did.

Interestingly, social democrats from Nordic nations think Bernie Sanders is too far to the left.

Johan Hassel, the international secretary for Sweden’s ruling Social Democrats, visited Iowa before the caucuses, and he wasn’t impressed with America’s standard bearer for democratic socialism, Sen. Bernie Sanders (I-Vt.). “We were at a Sanders event, and it was like being at a Left Party meeting,” he told Sweden’s Svenska Dagbladet newspaper… “It was a mixture of very young people and old Marxists, who think they were right all along. There were no ordinary people there, simply.” …Lars Løkke Rasmussen, then the prime minister of Denmark, made a similar point in a speech at Harvard in 2015, when Sanders was gaining national attention. “I know that some people in the U.S. associate the Nordic model with some sort of socialism,” he said. “Denmark is far from a socialist planned economy. Denmark is a market economy”.

Giancarlo Sopo, opining for the Washington Examiner, worries that Sanders actually is an unrepentant Marxist.

Sanders is not the nice, Nordic-style “democratic socialist” he claims to be. At his core, Sanders is almost certainly an all-out Marxist. …The man has no business being anywhere near the Oval Office — not even on a guided tour. …Sanders has been an unabashed apologist for communism, an evil ideology with a body count of 100 million people dead in its wake. …While people such as my grandfather were languishing as political prisoners in Cuba, Sanders said that he was so “excited” about the island’s communist revolution that watching JFK get tough on Fidel Castro made him want to “puke.” …The 78-year-old presidential candidate even honeymooned in the Soviet Union and came back full of praise for it. Some may not grasp how bizarre this was during the Cold War… Sanders’s platform, which openly calls for nationalizing major industries such as higher education, healthcare, and even the internet, falls well outside the mainstream of U.S. politics and more closely resembles the central planning committees in Cuba and Venezuela.

Last but not least, in a column for the Wall Street Journal, Elliot Kaufman compares Sanders’ radical past with his modern rhetoric.

Campaigning for U.S. Senate in 1971, he demanded the nationalization of utilities. In 1973 he proposed a federal takeover of “the entire energy industry,” and in 1974 he wanted a 100% tax on all income above $1 million. In 1976 he asserted that workers needed to “take immediate control of the economy if we are to survive” and called for “public ownership of utilities, banks and major industries.” He had a plan for “public control over capital.” As late as 1987 he asserted that “democracy means public ownership of the major means of production.” …He had also begun a dalliance with the Socialist Workers Party, a communist group that had followed Leon Trotsky. Mr. Sanders endorsed the SWP’s presidential nominee in 1980 and 1984, spoke at SWP campaign rallies during that period, and in 1980 was part of its slate of would-be presidential electors. …After three decades in Congress, he has settled on a populist vision that fits in on the Democratic left. In a major speech last June elaborating his idea of socialism, he cast himself in the tradition of Franklin D. Roosevelt… He enumerated a series of positive rights—to “quality health care,” “as much education as one needs,” “a good job that pays a living wage,” “affordable housing,”… But he said nothing about state control over the means of production or Fidel Castro’s revolution.

So who’s the real Bernie Sanders?

I have no idea whether he still wants government ownership and control of the means of production (i.e., pure socialism with state-run factories, collective farms, etc). I also don’t know whether his past support for awful Marxist dictatorships meant he actually was a Marxist.

But I can confidently state that his current policy agenda is nuts.

A few years ago, I created a three-pronged spectrum in an attempt to illustrate the various strains of leftism.

I’ve decided to create a more up-to-date version. It shows that the Nordic nations are part of the rational left. A bit further to the left are conventional leftists such Joe Biden, Hillary Clinton, and then Barack Obama.

At that point, there’s a divergence, with Hitler and Stalin representing totalitarian socialism at the top and pure socialists (such as the U.K.’s Clement Attlee, who nationalized industries and sectors after World War II) at the bottom.

Without knowing what he truly thinks, I’ve put Bernie Sanders in a middle category for “Crazies.”

I suspect he has sympathies for the two other strains of leftism, but the real-world impact of his policies is that America would become an even-worse version of Greece (though hopefully not as bad as Venezuela).

P.S. Given that he’s now the leading candidate to win the Democratic Party’s nomination, and given that he’s ahead in some national polls, I’m very thankful that America’s Founders bequeathed to us a system based on separation of powers. If Sanders somehow makes it to the White House, he’ll have a very difficult time pushing through the radical parts of his agenda. Yes, it’s true that recent presidents (both Obama and Trump) have sought to expand a president’s power to unilaterally change policy, but I feel confident that even John Roberts and the rest of the Supreme Court would intervene to prevent unilateral tax increases and nationalizations.

P.P.S. More than 10 years ago, I speculated that America’s separation-of-powers system would save the country from Obamacare and cap-and-trade. I was half right.

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I’m worried. If Crazy Bernie doesn’t win in New Hampshire, he may fade out of race.

That would be good for the country, but bad for my collection of socialism humor.

He’s already been a big contributor, and today we’re going to share more examples.

We’ll start with the socialist version of the light-bulb joke.

In other words, incentives matter.

Next, we have a depiction of what “sharing” really means in Bernie’s world.

Some may argue that this is unfair because he’s never embraced a 100 percent tax rate.

That’s true if you’re just focusing on the personal income tax. But when you add the wealth tax to the equation, there will be people paying more than 100 percent of their income to the IRS.

Our next example mocks Bernie for becoming a millionaire (owner of three homes!) while campaigning against the rich.

Chavez’s daughter certainly can relate.

I’m rather amused by this next image. Bernie got the most votes in Iowa, but appears to be getting fewer delegates. Presumably that’s one form of redistribution he doesn’t favor.

Just like 2016.

Here’s a cartoon with Bernie telling a clueless young person about freebies.

Speaking of fairy tales, don’t forget the leftist version of The Little Red Hen, the leftist version of The Little Engine that Could, and the leftist version of The Ant and the Grasshopper.

Last but not least, we have the Bernie drinking game.

Given that Bernie is promising to give away $97 trillion of other people’s money, I suspect we’ll wind up with a nation of alcoholics.

P.S. If you haven’t already OD’ed on Bernie humor, we also have:

P.P.S. Barring a big surprise, Elizabeth Warren almost surely will be out of the race after New Hampshire, so we probably won’t have any opportunity to add to our Looney-Liz collection (here, here, here, and here).

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Politicians such as Bernie Sanders and Alexandria Ocasio-Cortez say that their goal of “democratic socialism” is very different from the socialism of Cuba, North Korea, and Venezuela, as well as the socialism of the former Soviet Union.

And they doubtlessly would get very upset if anyone equated their ideology with the “national socialism” of Hitler’s Germany.

Such angst would be understandable. There are profound differences among the various versions of socialism. At the risk of understatement, a politician who wants to take my money is much better than one who wants to take my life.

From the perspective of economic policy, though, there’s a common link. All strains of socialism reject free enterprise. They want to replace capitalism with some sort of regime based on government planning and coercion.

This observation gets some people rather upset.

In a column for the Washington Post, Ronald Granieri of the Foreign Policy Research Institute expresses dismay that some people are pointing out that Hitler’s National Socialist Workers’ Party was, well, socialist.

Did you know that “Nazi” is short for “National Socialist”? That means that Hitler and his henchmen were all socialists. …There is only one problem: This argument is untrue. Although the Nazis did pursue a level of government intervention in the economy that would shock doctrinaire free marketeers, their “socialism” was at best a secondary element in their appeal. …The Nazi regime had little to do with socialism, despite it being prominently included in the name of the National Socialist German Workers’ Party. …The NSDAP’s 1920 party program, the 25 points, included passages denouncing banks, department stores and “interest slavery,” which suggested a quasi-Marxist rejection of free markets. But these were also typical criticisms in the anti-Semitic playbook …linking socialism and Nazism to critique leftist ideas became a political weapon in the post-World War II period, perhaps unsurprisingly given that the Cold War followed directly on the heels of World War II. Scholars as diverse as Zbigniew Brzezinski and Hannah Arendt used the larger concept of “totalitarianism” to fuse the two. …National Socialism preserved private property, while also putting the entire resources of society at the service of an expansionist and racist national vision, which included the conquest and murderous subjugation of other peoples. It makes no sense to think that the sole, or even the primary, negative aspect of this regime was the fact that it used state power to allocate financial resources.

Mr. Granieri makes some very good points. I’m not a historian, but I assume he’s correct in stating that Nazis hated capitalism in large part because it was associated with Jews.

And he’s definitely correct in stating that there are much more important reasons to despise Nazis other than their version of socialism (private ownership, but government control, often referred to as fascism).

But none of that changes that fact that all forms of socialism involve hostility to capitalism. Especially among the most repugnant forms of socialism.

Indeed, Nazism and communism are like different sides of the same coin. Joshua Hofford, in a column for the Foundation for Economic Education, examines the commonalities and differences between the two ideologies.

Karl Marx and Frederick Engels are the fathers of both…the swastika and the hammer-and-sickle. …The platform for Soviet socialism was nearly identical to that of National Socialism under the Nazi Party. Though the application of Soviet socialism was Marxian in nature—committed to international socialist revolution and the elimination of class enemies—and National Socialism under the Nazi Party was instituted to the elimination of racial enemies, both were dedicated to the remaking of mankind… Endemic to both Soviet and Nazi socialism, the destruction of class and racial enemies was a literal, not figurative, stage of revolution. …both versions of socialism were dedicated to constructing a new social reality by any means necessary… In addition to belonging to the shared brotherhood of worldwide socialism, clearly, both communism and Nazism were equally totalitarian. …The Nazis rejected the call to international revolution and the class warfare of their Soviet Marxist kin, however, this made them no less socialist. All substantial power and ownership of German business under the Third Reich, while managed and owned by individuals, was in the hands of the state. Price controls, salary caps, and production quotas were set by the nation and left owners to navigate a glut of bureaucracy.

In a column for the Wall Street Journal, Juliana Pilon shares a historical tidbit to illustrate the disdain for capitalism that characterized Nazis and communists.

Known officially as the Treaty of Non-Aggression Between Germany and the Union of Soviet Socialist Republics, the Hitler-Stalin pact…stunned the world. …As German negotiator Karl Schnurre had observed…, “there is one common element in the ideologies of Germany, Italy and the Soviet Union: opposition to the capitalist democracies. Neither we nor Italy have anything in common with the capitalist West. Therefore it seems to us rather unnatural that a socialist state would stand on the side of the Western democracies.” …capitalist democracy was their common enemy.

And Michael Rieger, writing for FEE, notes that there are genuine differences among different strains of socialism, though all involve a powerful state.

The Nazis didn’t call their ideology “national socialism” because they thought it sounded good. They were fervently opposed to capitalism. The Nazi Party’s chief propagandist, Joseph Goebbels, even once remarked that he’d sooner live under Bolshevism than capitalism. …why…would the Nazis call themselves “socialists”? In part, it’s because the term “socialism” has been constantly evolving and changing since its inception. …Marxist-Leninists came to more narrowly define “socialism” to mean the intermediary period between capitalism and communism where the state owned the means of production and centrally managed the economy. In establishing national socialism, the Nazis sought to redefine socialism yet again. National socialism began as a fusion of socialist ideas of a technocratically-managed economy with Völkisch nationalism, a deeply anti-Semitic form of German nationalism. …The Nazis also distinguished themselves from Marxists in their support for private property, although this came with some caveats. The Nazi government did not own the means of production in Germany, but they certainly controlled them. They set up control boards, cartels, and state-sponsored monopolies and konzerns, which they then carefully planned and regulated. …democratic socialists don’t believe in total government ownership of the means of production, nor do they wish to technocratically manage the economy as the Nazis did. …The wide variance between utopian socialism, communism, national socialism, and democratic socialism makes it remarkably easy for members of each ideology to wag their fingers at the others and say, “That wasn’t real socialism.” …all self-described socialists have shared the belief that top-down answers to society’s problems are superior to the bottom-up answers created by the free market.

To add to the above excerpts, here are two passages from Paul Johnson’s Modern Times: The World from the Twenties to the Nineties.

  • Page 133: “Hitler took over a small proletarian group called the German Workers’ Party…and reorganized its economic aims into a radical twenty-five point programme: …abolition of unearned incomes, state to take over trusts and share profits of industry, land for national needs to be expropriated without compensation. he also added the words ‘National Socialist’ to its title. …the radical and socialist element in his programme always remained strong.”
  • Page 293: “He regarded himself as a socialist, and the essence of his socialism was that every individual or group in the state should unhesitatingly work for national policy. So it did not matter who owned the actual factory so long as those managing it did what they were told. …’Our socialism reaches much deeper. …Why should we need to socialize the banks and the factories? We are socializing the people.”

I’ll close by re-sharing my humble contribution to this discussion, which is a triangle to replace the traditional right-vs-left line.

My triangle acknowledges that there are differences between communists and Nazis (as well as between populists and democratic socialists, and between Republicans and Democrats).

But it makes the key point that there are ever-greater losses of economic liberty as one descends from libertarianism.

And the closer you get to the bottom of the triangle, the greater the likelihood that you lose political liberty as well.

P.S. I also recommend reading what Friedrich Hayek, Dan Hannan, and Thomas Sowell have written on this topic.

P.P.S. I also think we can learn something from this tweet by Senator Chris Murphy of Connecticut.

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I started fretting about the socialist tendencies of young people early last decade.

And when Sanders attracted a lot of youth support in 2016, I gave the issue even more attention, and I’ve since continued to investigate why so many young people are sympathetic to such a poisonous ideology with a lengthy track record of failure and deprivation.

Some of the recent polling data is very discouraging.

And if you want to be even more depressed, here are some tweets with the most-recent data about the the views of young people.

It’s not just that they have warm and fuzzy thoughts about so-called democratic socialism.

I’m completely horrified to learn that more than one-third of young people even have a positive perception of communism.

In other words, wearing Che t-shirts isn’t just a vapid fashion statement.

These kids are either overtly evil or utterly oblivious.

Yes, I realize I sound like a curmudgeon (“you kids get off my lawn!”), but how else should I react when I see these numbers from Axios.

For what it’s worth, the same problem exists in the United Kingdom.

And it may be even more lopsided.

(Though I’m very relieved the misguided views of young people didn’t prevent a victory for Boris Johnson last month.)

For today’s column, let’s keep our focus on the United States.

What’s the underlying cause of bad polling numbers in America?

In a column for the Washington Times, Robert Knight explains that many young people have been spoon-fed a leftist version of American history.

Why do so many young people hate America and think we’d be better off as a socialist country? …reading and believing Howard Zinn’s best-selling ‘A People’s History of the United States’… First published in 1980, “A People’s History” has sold more than 2.5 million copies and is in virtually every school district, university and local library. …Everything Zinn wrote was couched in the language of Marxist class warfare. Key events were omitted. The mass slaughter that followed the Communist takeover of Cambodia? Good luck finding it in “A People’s History.” …Zinn was a member of numerous Soviet front groups, and he helped found the socialist New Party… Before the fall of the Berlin Wall, Zinn warned that concern over communism was due to “hysteria,”… In a chapter titled “The Coming Revolt of the Guards,” …Zinn states flatly that “capitalism has always been a failure for the lower classes. It is now beginning to fail for the middle class.” …Zinn envisions a utopian future in which “certain basic things” would be “…available — free — to everyone: food, housing, health care, education, transportation.” …The reason this insane, economically illiterate, un-American scheme appeals to so many is that they’ve been miseducated via Howard Zinn into thinking that they live in a bad country that must be rebuilt as a socialist paradise.

Jarrett Stepman opined on the adverse consequences of historical illiteracy in a piece for the Daily Signal.

As young Americans are losing an understanding of civics and American history, they increasingly embrace socialism. …younger generations have a far sunnier view of socialism and communism than their elders. …Perhaps worse than nostalgia for the Soviet Union, “57% of millennials (compared to 94% of the Silent Generation) believe the Declaration of Independence better guarantees freedom and equality over the Communist Manifesto.” That’s appalling. …there’s not only been a worrisome decline in inculcating informed patriotism in young Americans, but a willful attempt to re-educate them to turn them against the foundations of America itself. …So far, we have escaped the curse of socialism… But a troubling collapse in a basic understanding of our history, along with the malignant attempt to reframe our country’s origins to make us more susceptible to doctrines outside our tradition, means that the specter of socialism now hangs over us.

Amen. The government’s education monopoly too often gives kids a diet of statist pabulum. This is another reason why we need school choice.

But it’s not just bad history in government schools.

It’s also bad policy in government.

In a column for the Wall Street Journal, Mene Ukueberuwa shares some insights from Edward Glaeser, a professor at Harvard who warns that statist policies are leading young people to support bigger government.

Bernie Sanders…has become an unlikely voice of the young generation. …this axis of today’s struggle could change politics for generations to come, as millennials reject the country’s capitalist consensus and embrace socialism in record numbers. …Critics often blame today’s socialist surge on millennials’ laziness. …One free-market economist has a different explanation. Edward Glaeser, a Harvard professor…, argues that young people have radicalized politically because “there are a number of ways in which the modern American economy isn’t working all that well for them.” Many public policies make it harder to get a job, save money or find an affordable home, leaving young idealists thinking, “Why not try socialism?” But that cure would merely worsen the disease. Mr. Glaeser decries policies that constrain the job market and increase the cost of living compared with what the economy would produce if left alone. …Consider the housing market. “In the 1960s and earlier,” Mr. Glaeser says, “America basically had a property-rights regime that meant that anyone who had a plot of land could pretty much put up anything reasonable on that plot of land.” …The shift of income toward those Mr. Glaeser calls the “entrenched” is most explicit in entitlement programs. …They’re funded by payroll taxes, which snag a disproportionate share of low-earners’ paychecks. Taxpayers also pony up ever more to fund the retirements of government employees.

Glaeser is right.

Government intervention is increasing the price of housing for the young. Entitlement programs are pillaging the young. And bureaucrat pensions are a scam that victimizes the young.

For all intents and purposes, Prof. Glaeser is describing Mitchell’s Law.

Bad policy causes bad results, which leads some people (in this case, young people) to want more bad policy.

So the obvious solution, he argues, is to get rid of the bad policies that are causing problems in the first place.

And maybe young people will realize that they should support free markets and limited government!

“They say, ‘Well, there are a whole bunch of projects—a whole bunch of government spending that helps old people. I want mine. If we’re going to spend a huge amount on Medicare, why aren’t we spending a whole lot on education for me?’” …To give newcomers a chance, Mr. Glaeser would curtail the influence of entrenched groups and restore incentives for “a capitalism that is inclusive, and that provides a place of opportunity for more people.” …Mr. Glaeser insists that this message would be likelier to catch on if it were backed by policy reforms that make work more fruitful. A program of plentiful job opportunities, cheaper housing, and tax cuts financed by curtailed entitlements could be a significant step toward replacing socialism in the hearts of Mr. Sanders’s young supporters.

For what it’s worth, bad history and bad policy are both good explanations, but they don’t fully explain why young people are misguided.

I suspect many young people also think support for socialism is a way of signalling that you’re a nice person. That you care about others.

I’m not sure how we solve this problem, but this clever video from Kristian Niemietz suggests that part of the answer may be satire.

Though I may be biased since I have an entire collection of humor that targets socialism and communism.

P.S. When it hits close to home, college students actually reject socialism, though maybe they should have learned that lesson in kindergarten.

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I’ve written about some of Elizabeth Warren’s statist proposals, but watching last night’s Democratic debate convinced me that I need to pay more attention to Bernie Sanders’ agenda.

When he ran for president last time, I warned that his platform of $18 trillion of new spending over 10 years would be “very expensive to your wallet.”

This time, “Crazy Bernie” has decided that his 2016 agenda was just a down payment. He now wants nearly $100 trillion of new spending!

Even CNN acknowledges that his platform has a staggering price tag.

…the new spending programs Sen. Bernie Sanders has proposed in his presidential campaign would at least double federal spending over the next decade… The Vermont independent’s agenda represents an expansion of government’s cost and size unprecedented since World War II… Sanders’ plan, though all of its costs cannot be precisely quantified, would increase government spending as a share of the economy far more than the New Deal under President Franklin Roosevelt, the Great Society under Lyndon Johnson or the agenda proposed by any recent Democratic presidential nominee, including liberal George McGovern in 1972, according to a historical analysis shared with CNN by Larry Summers, the former chief White House economic adviser for Barack Obama… Summers said in an interview. “The Sanders spending increase is roughly 2.5 times the size of the New Deal and the estimated fiscal impact of George McGovern’s campaign proposals.

My former colleague Brian Riedl has the most detailed estimates of the new fiscal burdens that Sanders is proposing.

Here’s some of what he wrote last year for City Journal.

All told, Sanders’s current plans would cost as much as $97.5 trillion over the next decade, and total government spending at all levels would surge to as high as 70 percent of gross domestic product. Approximately half of the American workforce would be employed by the government. …his Medicare For All plan would increase federal spending by “somewhere between $30 and $40 trillion over a 10-year period.” He pledges to spend $16.3 trillion on his climate plan. And his proposal to guarantee all Americans a full-time government job paying $15 an hour, with full benefits, is estimated to cost $30.1 trillion. …$3 trillion to forgive all student loans and guarantee free public-college tuition—plus $1.8 trillion to expand Social Security, $2.5 trillion on housing, $1.6 trillion on paid family leave, $1 trillion on infrastructure, $800 billion on general K-12 education spending, and an additional $400 billion on higher public school teacher salaries. …Such spending would far exceed even that of European social democracies. …Sanders’s tax proposals would raise at most $23 trillion over the decade. …Tax rates would soar. Sanders would raise the current 15.3 percent payroll tax to 27.2 percent… Sanders proposes a top federal income-tax rate of 52 percent…plus a 10 percent net investment-income surtax for the wealthy.

By the way, class-warfare taxes won’t pay for all these promises.

Not even close, as you can see from this chart Brian put together.

By the way, the above chart is a static snapshot. In the real world, there’s no way to collect 4.7 percent of GDP (red bar on the left) with confiscatory taxes on the rich.

if Sanders ever had a chance to impose all his class-warfare tax ideas, the economy would tank, so revenues as a share of GDP would decline.

And here’s another one of his visuals, looking at the spending proposals that Democratic candidates are supporting.

Senator Sanders, needless to say, favors all of these proposals.

As Brian noted in his article, the Sanders fiscal agenda is so radical that America would have a bigger burden of government spending than decrepit European welfare states such as Greece, France, and Italy.

To his credit, Bernie acknowledges that all his new spending can’t be financed by class-warfare levies (unlike the serially dishonest Elizabeth Warren).

But the new taxes he proposes would finance only a tiny fraction of his spending agenda. If Washington ever tried to adopt even part of his platform, it inevitably would mean a European-style value-added tax.

P.S. Even if tens of trillions of dollars of revenue magically floated down from Heaven, bigger government would still be bad for the economy since politicians and bureaucrats would be in charge of (mis)allocating a much greater share of labor and capital.

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Yesterday, most of us celebrated Christmas.

Today, all of us should celebrate the dissolution of the Soviet Union, which officially happened on this date in 1991 (aided and abetted by a Texas grocery store).

A 2016 FEE column by Richard Ebeling documents the relentless evil of Soviet communism.

…the curtain was lowered on the 75-year experiment in “building socialism” in the country where it all began following the Bolshevik Revolution in Russia, led by Vladimir Lenin in November 1917. Some historians have estimated that as many as 200 million people worldwide may have died as part of the 20th century dream of creating a collectivist “paradise on earth.” The attempt to establish a comprehensive socialist system in many parts of the world over the last 100 years has been one of the cruelest and most brutal episodes in human history. …as many as 68 million innocent, unarmed men, women, and children may have been killed in Soviet Russia alone over those nearly 75 years of communist rule in the Soviet Union. …This murderous madness never ended. In the 1930s, during the time of the Great Purges instituted by Soviet dictator Josef Stalin to wipe out all “enemies of the revolution” through mass executions, millions were sent to the Gulag prisons that stretched across all of the Soviet Union to be worked to death as slave labor to “build socialism.” …Soviet central planning even had quotas for the number of such enemies of the people to be killed in each region of the Soviet Union, as well as the required numbers to be rounded up to be sent to work in the labor camps in the frigid wastelands of the Siberia and the Arctic Circle… The nightmare of the socialist experiment, however, did not end with Stalin’s death in 1953. Its form merely changed in later decades. As head of the KGB in the 1970s, Yuri Andropov (who later was General Secretary of the Communist Party of the Soviet Union after Leonid Brezhnev’s death in 1982), accepted a new theory in Soviet psychiatry which said opposition to the socialist regime was a sign of mental illness.

Based on the sheer number of victims, Stalin understandably has the worst reputation of all Soviet dictators.

But let’s not forget that Lenin was a horrible human being as well.

Lenin’s streak of cruelty began long before he came to power. By his early 20s, his zealous dedication to Marxism led him to believe that anything justified revolution. When a famine broke out in the Volga region in 1891—one that would kill 400,000 people—Lenin welcomed the event, hoping that it would topple the Czarist regime. …Later, in 1905, when Czarist forces killed hundreds of striking workers and 86 children in Moscow, Lenin refused to mourn for the dead and, instead, hoped the event would further enflame class antagonisms. In his eyes, human lives were expendable… While in exile, Lenin railed against the imperial government for its oppressive ways—for instance, its censorship of the opposition and dismissal of parliament. Of course, once in power, Lenin repeated these policies and usually exceeded their cruelty, imprisoning and confiscating the property of his opponents. …Lenin appointed the homicidal Felix Dzerzhinsky to head up the Cheka (the secret police)… In less than a year, hundreds, if not thousands, were executed… He marked wealthy peasants, or kulaks, as enemies of the revolution and encouraged violence against them. He imposed fixed grain prices at low rates, straining peasants who already were living on the margins, seized their grain, and left them to starve. When the peasants began resisting, Lenin ordered government officials to torture them or apply poison gas.

By the way, it’s not directly relevant to the dissolution of the Soviet Union, but I can’t resist sharing this story from the BBC.

Karl Marx’s Grade I-listed memorial in Highgate Cemetery has been “mindlessly vandalised”. The marble plaque on the imposing sculpture’s base has been attacked, seemingly with a hammer. A cemetery spokesman said they did not know when it had happened, but believed it was within the last couple of days. No witnesses have come forward. …Ian Dungavell, chief executive of Friends of Highgate Cemetery Trust, said: “This is mindless vandalism, not political commentary. …This is not the first time the monument has been damaged. In 1970 a pipe bomb blew up part of the face, swastikas have been painted on it and emulsion paint has been thrown at it.

My only comment it that the memorial wasn’t “mindlessly vandalised.” There were 100 million reasons why it was defaced.

Now let’s look at the economic performance of the Soviet Union.

I’ll start with the simple and near-tautological observation that there’s no longer a Soviet Union in large part because its economy became so anemic.

Yet some people believed that the Soviet Union’s version of socialism could be economically successful. I wrote about their naivete as part of my collection of essays on the 100th anniversary of the Bolshevik revolution.

I suppose we can partially forgive them because much of the economic misery in the Soviet Union was hidden from outsiders.

What’s less forgivable is that some people still make absurd claims about the Soviet economy. Consider this screenshot of the first paragraph of the Wikipedia entry on the economy of the Soviet Union. I’ve highlighted in red the parts that are laughable.

Though, to be fair, there wasn’t a problem with unemployment and job security in the Soviet Union. Just like slaves in Alabama in 1830, Soviet workers were victims of state coercion. They were forced to show up at the collective farms and state-run industries.

And state coercion was the basis of a failed system. Contrary to whoever authored that Wikipedia entry, the Soviet Union did not enjoy high growth rates.

A 1994 World Bank study by William Easterly and Stanley Fischer exposed the Soviet Union’s very poor track record.

Soviet growth from 1960 to 1989 was the worst in the world after we control for investment and human capital; the relative performance worsens over time. …The declining Soviet growth rate from 1950 to 1987 can be accounted for by a declining marginal product of capital with a constant rate of growth of total factor productivity. The Soviet reliance on extensive growth (rising capital-to-out-put ratios) was no greater than that of market economies, such as Japan and the Republic of Korea, but a low elasticity of substitution between capital and labor implied especially acute diminishing returns to capital compared with the case in market economies.

“Worst in the world” is quite an achievement.

Not that any sentient being should be surprised. Politicians are bureaucrats don’t do a good job of allocating labor and capital.

If you want prosperity, it’s not a good idea to have central planning and other features of socialism.

Here’s a fascinating look at the world’s largest economies (by overall size, not on a per-capita basis) from 1961-1989.

Here’s a chart based on the Maddison database, so we can make comparisons based on per-capita economic output.

As you can see, even though convergence theory says poor countries should grow faster than rich countries, the gap between the United States and the Soviet Union grew ever larger.

Last but not least, here’s a chart that compares the Soviet Union’s claims about growth (blue) with both CIA estimates (red) and later revisions from a Russian economist (green).

There are two lessons to be learned.

That latter point may be relevant for people who think China is an economic powerhouse.

P.S. The Soviet Union is gone, but most of the countries that emerged from the wreckage are still struggling with a legacy of statism and intervention.

P.P.S. In addition to celebrating today, we also should celebrate November 9.

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Fifty years ago, Venezuela was ranked #10 for economic liberty and enjoyed the highest living standards in Latin America

Today, the nation is an economic disaster. Hugo Chavez and Nicolas Maduro deserve much of the blame. Their socialist policies have dropped Venezuela to last place according to Economic Freedom of the World.

Predictably, this has resulted in horrific suffering.

And it’s going from bad to worse.

In ways that are unimaginable for those of us living in civilized nations.

For instance, the Associated Press reports that grave-robbing is now a problem in the country.

Even the dead aren’t safe in Maracaibo, a sweltering, suffering city in Venezuela. Thieves have broken into some of the vaults and coffins in El Cuadrado cemetery since late last year, stealing ornaments and sometimes items from corpses as the country sinks to new depths of deprivation. “Starting eight months ago, they even took the gold teeth of the dead,” said José Antonio Ferrer, who is in charge of the cemetery, where a prominent doctor, a university director and other local luminaries are buried. Much of Venezuela is in a state of decay and abandonment, brought on by shortages of things that people need the most: cash, food, water, medicine, power, gasoline. …Many who have the means leave, joining an exodus of more than 4 million Venezuelans who have left the country in recent years. …Some people sift through trash, scavenge for food.

And hyper-inflation is creating a barter economy according to the AP.

…the economy is in such shambles that drivers are now paying for fill-ups with a little food, a candy bar or just a cigarette. Bartering at the pump has taken off as hyperinflation makes Venezuela’s paper currency, the bolivar, hard to find and renders some denominations all but worthless, so that nobody will accept them. Without cash in their wallets, drivers often hand gas station attendants a bag of rice, cooking oil or whatever is within reach. …This barter system…is just another symptom of bedlam in Venezuela. …The International Monetary Fund says inflation is expected to hit a staggering 200,000% this year. Venezuela dropped five zeros from its currency last year in a futile attempt to keep up with inflation. …Venezuela, which sits atop the world’s largest oil reserves, was once rich. But the economy has fallen into ruin because of what critics say has been two decades of corruption and mismanagement under socialist rule.

Mary O’Grady of the Wall Street Journal points out that the poor are being hurt the most.

…the gap in living standards between the haves and the have-nots is wider than ever. It wasn’t supposed to be like this. Economic equality is the socialists’ Holy Grail. People are poor, the logic goes, because the rich have too much. Ergo, all it takes to end poverty is the use of state coercion to distribute economic gains evenly. …Tell that to the Venezuelan poor. Not only have their numbers increased under socialism, but the suffering among the most vulnerable has grown more intense. …Venezuela now experiences recurring blackouts and brownouts… in the “ranchos,”…residents now make “lamps” out of mayonnaise jars, diesel taken from vehicles, and pieces of cloth. One local described it to the reporter as going back to “prehistoric” times. With water, sanitation and other public services, the story is the same. …the have-nots are at Mr. Maduro’s mercy.

College students also are suffering, as reported by the Union Journal.

…5 youngsters had fainted and two of them have been whisked away in an ambulance. The faintings on the major college have turn into a daily prevalence as a result of so many college students come to class with out consuming breakfast, or dinner the evening earlier than. In different faculties, youngsters wish to know if there’s any meals earlier than they resolve whether or not to go in… Venezuela’s devastating six-year financial disaster is hollowing out the varsity system… Starvation is simply one of many many issues chipping away at them now. Thousands and thousands of Venezuelans have fled the nation in recent times, depleting the ranks of scholars and academics alike. …Many colleges are shuttering within the once-wealthy nation as malnourished youngsters and academics who earn nearly nothing abandon lecture rooms to scratch out a residing on the streets or flee overseas. It’s a significant embarrassment for the self-proclaimed Socialist authorities.

In a column for the New York Times, Nicholas Kristof shares some sad observations about the consequences of Venezuelan socialism.

This country is a kleptocracy ruled incompetently by thugs who are turning a prosperous oil-exporting nation into a failed state sliding toward starvation. …Serrano, 21, lives in the impoverished, violent slum of La Dolorita, where I met her. The baby was fading from malnutrition in May, so she frantically sought medical help — but three hospitals turned the baby away, saying there were no beds available, no doctors and no supplies. …Daisha…died at home that night. …President Nicolás Maduro’s brutal socialist government is primarily responsible for the suffering, and there are steps Maduro could take to save children’s lives, if he wanted to. …Venezuela may now be sliding toward collapse and mass starvation, while fragmenting into local control by various armed groups. Outbreaks of malaria, diphtheria and measles are spreading, and infant mortality appears to have doubled since 2008.

By the way, Kristof argues that sanctions imposed by Obama and Trump are making a bad situation worse.

That’s true, but it doesn’t change the fact that Venezuela’s awful government deserves the overwhelming share of the blame.

Let’s measure how the people of Venezuela have suffered. Here are the per-capita GDP numbers since Chavez took power in 1999. There’s volatility in the data, presumably because of changes in oil prices. But the trend is unmistakably negative.

The bottom line is that Venezuela’s living standards have collapsed by about 50 percent since the socialists took over.

That makes Greece seem like an economic powerhouse by comparison.

Let’s close, though, by comparing Venezuela to Latin America’s most market-oriented nation.

As you can see, per-capita economic output in Chile (in blue) has soared while per-capita GDP in Venezuela (in red) has collapsed.

In other words, free markets and small government are the right recipe if the goal is broadly shared prosperity.

P.S. I’ve explained on many occasions that lower-income people in Chile have been the biggest beneficiaries of pro-market reforms.

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By global standards, the United States is a bulwark of capitalism. Yes, government is too big and there’s far too much intervention, but we have enough private property and free enterprise to be ranked #5 for economic liberty. Which helps to explain why Americans enjoy higher living standards than Europeans.

But capitalism had to be learned. One of the first European settlements in North America, the Plymouth Plantation in Massachusetts, was based on socialism.

And it was real socialism, with common ownership of the means of production.

Unsurprisingly, it was not a rousing success. Indeed, it was a miserable failure.

Here’s Larry Reed’s analysis of what happened.

We should never forget that the Plymouth colony was headed straight for oblivion under a communal, socialist plan… Land was held in common. Crops were brought to a common storehouse and distributed equally. For two years, every person had to work for everybody else (the community), not for themselves as individuals or families. Did they live happily ever after in this socialist utopia? Hardly. The “common property” approach killed off about half the settlers. Governor Bradford recorded in his diary that everybody was happy to claim their equal share of production, but production only shrank. Slackers showed up late for work in the fields, and the hard workers resented it. …The disincentives of the socialist scheme bred impoverishment and conflict until, facing starvation and extinction, Bradford altered the system. He divided common property into private plots… Communal socialist failure was transformed into private property/capitalist success, something that’s happened so often historically it’s almost monotonous.

And here are some excerpts from a column that Professor Ben Powell wrote back in 2004.

Bad weather or lack of farming knowledge did not cause the pilgrims’ shortages. Bad economic incentives did. In 1620 Plymouth Plantation was founded with a system of communal property rights. Food and supplies were held in common and then distributed based on “equality” and “need” as determined by Plantation officials. People received the same rations whether or not they contributed to producing the food, and residents were forbidden from producing their own food. …Because of the poor incentives, little food was produced. Faced with potential starvation in the spring of 1623, the colony decided to implement a new economic system. Every family was assigned a private parcel of land. They could then keep all they grew for themselves, but now they alone were responsible for feeding themselves. …This change, Bradford wrote, “had very good success, for it made all hands very industrious, so as much more corn was planted than otherwise would have been.” Giving people economic incentives changed their behavior. …Once the Pilgrims in the Plymouth Plantation abandoned their communal economic system and adopted one with greater individual property rights, they never again faced the starvation and food shortages of the first three years.

By the way, the settlement in Jamestown, Virginia, also had a very unsuccessful experiment with socialism.

Every Thanksgiving, I like to remind people about America’s failed experiment with big government.

This year, I want to build on that history lesson by looking at how capitalism’s invisible hand is making our modern holidays ever-more affordable.

We’ll start with Mark Perry of the American Enterprise Institute, who explains how free enterprise makes Thanksgiving possible.

…most of you probably didn’t call your local supermarket ahead of time and order a Thanksgiving turkey this year. Why not? Because you automatically assumed that a turkey would be there when you showed up, and it probably was there when you appeared “unannounced” at your local grocery store and selected your Thanksgiving bird. Or it will be there…when you “skip the trip” to the grocery store and get free 2-hour delivery from Amazon Prime Now… The reason your Thanksgiving turkey was waiting for you without an advance order? Because of the economic concepts of “spontaneous order,” “self-interest,” and the “invisible hand” of the free market. Turkeys appeared in your local grocery stores primarily because of the “self-interest” (greed?) of thousands of turkey farmers, truck drivers, and supermarket owners and employees who are complete strangers to you and your family. But all of those strangers throughout the turkey supply chain co-operated on your behalf and were led by the “invisible hand” to make sure your family had a turkey (or two) on the table to celebrate Thanksgiving.

By the way, just imagine what would happen if a government bureaucracy (like the Department of Agriculture) was in charge of Thanksgiving. Everything would cost more and have lower quality.

And the entire experience would be like a trip to the Department of Motor Vehicles.

But this isn’t just a story about how food appears on store shelves because of market forces rather than central planning.

It’s also a story about the competitive forces of capitalism make that food ever-more affordable. As shown in this chart from Marian Tupy of Human Progress, the cost of a Thanksgiving dinner is dropping over time.

But even that’s not the full story.

We’re also getting richer over time thanks to free enterprise.

So the amount of work that is required to buy Thanksgiving dinner is falling even faster. Here’s a chart from Mark Perry.

Now you know what to be thankful for.

P.S. I embedded a couple of humorous anti-libertarian memes in the column. If you want some more Thanksgiving-themed humor, you can click here and here for some mockery of Obama. And here’s a satirical look at a future Thanksgiving in a nation controlled by our friends on the left.

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The Babylon Bee is America’s best site for political satire, with several appearances in my collection of libertarian humor.

The site is great even when libertarians get mocked.

Check out the following three stories.

We’ll start with one about a vapid millennial (who presumably took part in this poll).

Local socialist millennial man Matthew Hatter lamented Monday that there are no concrete examples of socialism he can point to in order to have some kind of idea how it would turn out. “If only there were other countries that have tried socialism before,” Hatter said to a friend at an ethical coffee shop… “Like, say some countries in South America tried socialism before and everybody starved to death,” he said. “Or if there were major superpowers who implemented socialism and then, like, 100 million people died—that would be really bad. We could look to these ‘books of history’ and decide that wouldn’t be the route for us.” …Hatter said he’s just glad that if socialism turns out to be terrible, no other country would be dumb enough to follow in our footsteps.

Some people are familiar with socialism, of course.

And this next bit of satire from Babylon Bee indicates that they’re planning ahead.

The nation’s Democratic leaders announced Tuesday they are reversing course on Trump’s proposed border wall, since “it will keep people in once we switch to socialism.” “We thought the border wall was a bad, racist idea,” said Alexandria Ocasio-Cortez. …But that got me thinking…when we switch to socialism, everyone’s gonna try to run away. But what if there’s a big, solid object along the border? Then they can’t run away. I mean, they could try to climb, but we could shoot them.” Senator Bernie Sanders said in his experience, walls are “absolutely necessary” to keep a socialist country’s citizens from fleeing. “The Soviets had it right: big wall in Berlin, the symbolic Iron Curtain, shooting people who try to flee. It’s all necessary to a healthy socialist state.”

Sounds like they read the advice that Walter Williams gave – tongue in cheek – to California’s politicians.

Our third and final example from Babylon Bee involves the Democrats’ electoral plan.

Laying their cards on the table with the midterms approaching, the nation’s Democrats have united to send a clear message: socialism is America’s only hope of ending the current nightmare of economic prosperity. “We’re living in a hellscape—but there is an escape,” 2020 presidential hopeful Joe Biden said… “democratic socialism is what’s going to free us from our horrific, flourishing, present conditions. You do the math.” …“Kill anyone who disagrees!” Maxine Waters bellowed from the background.

The Foundation for Economic Education just published a column with 10 of the jokes that East Germans told about their dictatorial government.

Here are my three favorites.

  • Why do Stasi officers make such good taxi drivers? — You get in the car and they already know your name and where you live.
  • What’s the best feature of a Trabant? — There’s a heater at the back to keep your hands warm when you’re pushing it.
  • What would happen if the desert became a socialist country? — Nothing for a while… then the sand becomes scarce.

Speaking of satire, Hasbro apparently has produced a socialist version of their famous Monopoly board game.

Sounds fake, but you can find it on Amazon.

John Ellis of PJ Media is quite amused.

Hasbro’s new “Monopoly: Socialism,” though, sounds like a hoot and a great way to continue to teach my kids why socialism is for the math-, economics-, and history-challenged among us. …the game sounds awesome! …the only game played in my house on game night henceforth will be Hasbro’s Monopoly: Socialism. …I get to incorporate both fun and education into family game night.

We’ll close out with another appearance by Libertarian Jesus.

Very appropriate given what I wrote about two weeks ago.

If you’re interested, other examples of Libertarian Jesus can be found here, here, and here.

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Lord Acton famously noted that “power corrupts and absolute power corrupts absolutely.”

I need to develop something similar about socialism. Based on the statism spectrum, it could be something like “socialism deprives and absolute socialism deprives absolutely.”

In other words, the bigger the government, the worse the results.

And when the government controls everything, the consequences can be catastrophic. Horrifyingly catastrophic, as Marian Tupy explains.

America’s college-educated youth…are too young to remember the Cold War and few study history. It is, therefore, timely to remind the millennials of what socialism wrought – especially in some of the world’s poorest countries. Those of us who remember the early 1980s will always remember the images of starving Ethiopian children. …these were the innocent victims of the Derg – a group of Marxist militants who took over the Ethiopian government… Between 1983 and 1985, some 400,000 people starved to death. …in 1999, Robert Mugabe, the 92-year-old Marxist dictator who came to power in 1980, embarked on a catastrophic “land reform” program. The program saw the nationalization of privately-held farmland and the expulsion of non-African farmers and businessmen. The result was a collapse of agricultural output, the second highest hyperinflation in recorded history that peaked at 89.7 sextillion or 89,700,000,000,000,000,000,000 percent per year and an unemployment rate of 94 percent. Thousands of Zimbabweans died of hunger and disease despite massive international help.

It turns out that governments have played big roles in some of the worst famines in recent memory.

Benjamin Zycher’s table of the greatest famines of the 20th century. …six out of the 10 worst famines happened in socialist countries. Other famines, including those in Nigeria, Somalia and Bangladesh, were partly a result of war and partly a result of a government’s economic mismanagement.

Here’s a table with some of the grim totals. Unsurprisingly, Pol Pot’s Cambodia is at the top of the list.

In some cases, such as Cambodia and Ukraine, starvation was a policy choice by evil communist governments (are there any other kinds?).

In other cases, the total state control of economic life produced famine as a byproduct.

In either case, Marian has a suggestion for some of today’s vapid millennials.

Wherever it has been tried, from the Soviet Union in 1917 to Venezuela in 2015, socialism has failed. Socialists have promised a utopia marked by equality and abundance. Instead, they have delivered tyranny and starvation. Young Americans should keep that in mind.

And if they forget, here’s an excellent cartoon from Pat Cross that may be easier to remember (h/t: Mark Perry).

P.S. The table looks at starvation in the 20th century. Let’s not forget that people currently are dying of malnutrition in the socialist hellhole of Venezuela (the lucky ones raid zoos and eat household pets for food).

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John Papola has done it again. His video showing a Keynes v. Hayek rap contest was superb, and was followed by an equally enjoyable sequel featuring a boxing match between Keynes and Hayek.

Now he has a rap contest about capitalism and socialism featuring Ludwig von Mises and Karl Marx.

The video touches on three economic topics.

The obvious focus is the track record of capitalism vs. socialism. Given the wealth of evidence, that’s a slam-dunk victory for free markets.

But there are also two wonky issues referenced in the video.

  • The socialist calculation debate – As I’ve repeatedly noted, genuine socialism involves government ownershipcentral planning, and price controls. Economists from the Austrian school, such as Mises, were the ones who explained that governments were incapable of having either the information or knowledge to make such a system work.
  • The labor theory of value – Marxism is based on the strange notion that the value of a product is a function of the hours it took to produce. This overlooks the role of capital and entrepreneurship. Moreover, as explained in the video, value is subjective, determined by the preferences of consumers.

Let’s close with a nice compare-and-contrast image a reader sent to me.

P.S. John Papola also did a great satirical commercial for left-wing toys.

P.P.S. Even though it’s not the right time of year, here’s his satirical commercial for Keynesian Christmas carols.

P.P.P.S. If you want to learn about the Austrian macroeconomics, click here and here.

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I’ve opined that statist policies harm young people.

I also shared this video explaining why big government is bad for millennials and the Gen-Z crowd.

This should be a slam-dunk issue. After all, don’t they know how the communist world collapsed?

Aren’t they aware of the problems in places such as Greece and Venezuela?

Or, to make it personal, don’t they have any inkling of the fact that they are going to get screwed by entitlement programs?

And what about the fact that they lose out because of Obamacare?

Sadly, it appears many of them haven’t learned the right lesson.

Support for socialism is disturbingly high among the young.

I’ve wondered, only half-jokingly, whether they’re too clueless to vote.

David Grasso opines on this topic for the New York Post.

It’s important to look at the typical millennial trajectory, and why unprecedented government intervention into our daily lives is now widely seen as the only solution to the problems that bedevil us as a generation. …the only choice was to go to a college or university. We took this journey on the faith that a college education would give us the necessary skills to kick-start our careers. After graduation, we quickly found out that our alma maters did little to prepare us to be job-ready. …Just as we get our first student-loan bill, we find ourselves navigating unpaid and low-paid internships… The next predictable step is working a service-industry job that doesn’t require a degree while trying to get set up in a city with job openings in our fields. Yet a booming job market often also means a housing horror show. Misguided housing policies in places like New York, Los Angeles, Washington and San Francisco have created such a tight market that it is often financially impossible for a young person to move there. …We pay through the nose for health insurance, have zero job security and pray we advance as soon as possible. …Many of us are eternally disappointed with the unjust system that blocked us from doing things past generations did, like get married, have kids and have a lovely oak-shaded, picket-fence life.

Grasso notes that government is the underlying problem.

Then we turn on our streaming services and find politicians who seem to understand us, who are tapping into the spirit of a generation that’s reacting to the post-Great Recession era. …Given such a journey, it is easy to see why socialism seduces young Americans. We desperately need change if we are ever going to progress as a generation. The problem is, what the socialists are proposing — more government — is exactly the opposite of what we need. In fact, many of the most prominent obstacles we have faced are the result, at least in part, of heavy-handed government interference. …Truth is, young people need exactly the opposite of socialism — pro-growth policies and restrained, common-sense regulation. This will create more economic opportunities and more avenues into the middle class. Socialist policies will only choke economic opportunity and make our tough existence far worse.

More young people need to reach this conclusion.

At least if this horrifying poll is even close to accurate.

In other words, it seems like Americans are morphing into Europeans.

This is such a depressing thought that I’ll end today’s column with a bit of humor.

Here’s some gallows humor from Remy.

P.S. You can enjoy more of his videos by clicking here, here, here, and here.

P.S.S. For what it’s worth, there is some polling data indicating young people aren’t totally hopeless.

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Three years ago, I shared a cartoon that succinctly summarized the problem with socialism and the welfare state.

It’s the same lesson that we also get from Thomas Sowell, which is that redistribution over time creates an ever-larger number of dependents financed by ever-higher taxes on workers.

Or, as this Wizard-of-Id parody and this Little-Red-Hen parody make clear, why work hard if you can get things for free?

Now I have a different way of illustrating the problem with socialism. Here’s a very clever tweet from Young Americans Against Socialism.

Very clever and amusing.

I will add this short video to my collection of socialism humor, but it actually makes a very serious point.

Socialists and other redistributionists want equality of outcomes, but they don’t think about the unintended consequences of such an approach.

Some people will be lured into sloth and dependency, for instance, while others – particularly those with greater ability and/or greater work ethic – will choose to be less productive (especially because they also get hit with higher tax burdens to finance all the handouts).

Bastiat wrote that the failure to consider the “unseen” was the defining quality of a bad economist.

And since we’re on that topic, here’s an example of Crazy Bernie failing to appreciate that actions have unintended consequences.

A perfect metaphor for what would happen to the economy if some of his policies were imposed on the economy.

Except Bernie would still have his comfortable life. It’s the rest of us who would suffer.

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I’m getting worried that Senator Bernie Sanders is fading in the polls.

That doesn’t make me happy. I want Crazy Bernie to stay relevant.

Why? Because he’s an endless source of clever satire.

Previous editions of Bernie humor can be found here and here.

For today’s edition, let’s start with the fact that Bernie has used political office to become a millionaire, yet he doesn’t put his money where his mouth is (the federal government actually has a website for people who are foolish enough to pay extra tax).

Bernie also has an opinion on the protests in Hong Kong. At least according to the satirists at the Babylon Bee.

As soon as Bernie Sanders heard about the democratic protesters in Hong Kong, he knew something had to be done. The U.S. senator quickly chartered a flight to Hong Kong… Sanders bravely stood in the middle of the conflict between police and protesters, shouting at the “ungrateful little dissenters”… “Remember, you could have it a lot worse—you could be in America!” Sanders bellowed as police officers for the totalitarian regime beat protesters in the background. …Sanders continued his long-winded rant about the need for the government to own the means of production, how great breadlines are, and how bad things are in capitalist America as protesters got dragged away by police to be disappeared. “Just think—in America, we have to pick between 14 different types of deodorant!” he said, his fingers flopping around like limp sausages.

While this story is amusing, the folks at Babylon Bee screwed up. The people of Hong Kong aren’t protesting because they live in a communist system.

They’re protesting because they’re worried that China will sooner or later absorb them into a communist system.

But since so much real media is “fake but accurate” (or is it “accurate but fake”?), I’m not going to worry about details.

Let’s now shift to another example of Babylon Bee satire.

Showing himself to be a compassionate man of the people who cares deeply about the plight of the downtrodden, Senator Bernie Sanders selflessly offered a stack of bills to a homeless man on the street Monday after fishing the money out of a purse sitting next to a woman on a park bench. Sanders had been…on the prowl for people who looked like they had too much money when he leaped out to steal the wallet from the purse… The Vermont senator..saw a homeless man sitting nearby, begging for money. Moved by the pathetic sight of the man’s disheveled appearance, Sanders found it in his heart to commit a random act of kindness, digging through the wallet until he was able to find several $20 bills and slipping them into the man’s hand. “It’s not theft—it’s redistribution,” he told reporters later. “I was simply…doing what any old citizen couldn’t do without committing a crime. But it’s different because I’m the government, see?” At publishing time, the Senator was seen pocketing the rest of the money.

How very generous he is with other people’s money!

Last but not least, here’s a game from Imgur that allows anyone to prepare a Bernie speech. For some reason, it reminds me of State-of-the-Union bingo during the Obama years.

For other examples of Bernie humor, you can click hereherehereherehereherehere, and here.

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It’s difficult to be optimistic about some parts of the world.

When I look at Greece and Italy, for instance, I can’t help but think that economic renaissance is very unlikely, in part because of demographics, but even more so because voters have been conditioned to think that they have a right to live off the government.

This dependency mindset shows that societal capital has eroded, and it’s why I fear those nations have passed a tipping point.

Another example is Argentina. The Wall Street Journal‘s editorial page is very discouraged that the Peronists may return to power in that country.

Does Argentina have a death wish? That’s the question going around after Peronist Alberto Fernández and his running mate, former President Cristina Kirchner, took first place in Sunday’s presidential “primaries” with 48% of the vote. President Mauricio Macri finished 16 points behind… Clearly investors don’t want to hang around if Mr. Fernández and Mrs. Kirchner—whose eight years as president (2007-2015) were marked by leftwing populism and corruption—get to power. Mr. Macri’s unexpectedly poor showing sent the peso and equities down and default risk for Argentine bonds up.

So why would Argentinians vote for statism and economic collapse, especially since there’s so much evidence that Peronists have done immense damage to the country’s economy?

In part, because they were choosing between Tweedledee and Tweedledum. The supposed center-right incumbent, Mauricio Macri, governed as a statist.

And he’s been doubling down on bad policy in hopes of staying in office.

…he fought back by promising to raise the minimum wage for the second time this year, freeze the price of gasoline for 90 days, increase welfare payments in September and October and give a bonus to federal bureaucrats, police and the military. Perhaps this half-baked populism will move voters, but it augurs poorly for the Argentine future. …Mr. Macri…sought to avoid confrontation. He ought to have set about shrinking the state and its subsidies. Instead he maintained lavish government spending. The kinder, gentler president has been unwilling to tell Argentines in stark terms what they are up against. …Argentine debt has shot up on Mr. Macri’s watch and as a percentage of GDP it is forecast to reach 100% this year. Deficit spending has put pressure on the central bank to print money, and there has been no effort to contain inflation expectations.

Ugh, Macri seems even worse than some of America’s big-government Republicans.

But there is a sliver of good news. If nothing else, Argentina serves as an example of why so-called “democratic socialism” is so misguided.

In some analysis for investors, Michael Cembalest of J.P. Morgan looked around the world for insights and evidence about the ideology championed by Bernie Sanders and Alexandria Ocasio-Cortez (h/t: James Pethokoukis).

He starts off by identifying the key criteria of democratic socialism.

This sounds like Elizabeth Warren’s platform, or perhaps the Green New Deal, so I think this is an accurate list.

Mr. Cembalest points out, though, that the Nordic nations don’t qualify as being socialist of any kind.

Some point to Nordic countries as democratic socialism in action, but…while Nordic countries have higher taxes and greater redistribution of wealth, Nordics are just as business-friendly as the US if not more so. Examples include greater business freedoms, freer trade, …and less of an impact on competition from state control over the economy. …while Nordics raise more taxes than the US, the gap usually results from regressive VAT/consumption taxes and Social Security taxes rather than from progressive income taxes. The bottom line: copy the Nordic model if you like, but understand that it entails a lot of capitalism and pro-business policies, a lot of taxation on middle class spending and wages, minimal reliance on corporate taxation and plenty of co-pays and deductibles in its healthcare system.

He’s right. The Nordic nations get relatively high marks for economic liberty in all areas other than fiscal policy. They’re no more socialist than the United States.

He did find a country, however, that is a very close match for democratic socialism.

I couldn’t find any country that ticked all…democratic socialist boxes, but I did find one that came close: Argentina.

Seems to me that Argentina does tick all the boxes. But since he doesn’t delve into methodology, I’m not sure of his definitions.

In any event, he looks at Argentina’s relative performance over a long period of time, which is the right approach to see if a country is converging or diverging.

There are two ways to look at Argentina’s decline relative to the rest of the world since the early 1900’s. The first shows the ratio of real per capita GDP in 2018 vs the same measure in 1913. Argentina’s ratio barely rose, and is the lowest ratio of all countries for which data is available for both years.

Here’s the relevant chart, and you can see that Argentina has the worst performance over the past 100 years.

He also slices the data using another approach.

The next method illustrates how Argentina used to be among the richest nations in the world, and how far it has fallen. The x axis shows percentile of per capita GDP in 1913, while the y axis shows the same measure in 2018. All countries below the diagonal line have seen their rankings fall, while those above the line have seen their rankings improve. The farther the distance from the diagonal line, the more things have changed; Argentina’s decline from the 83rd percentile in 1913 to the 40th in 2018 is the largest decline on the chart.

And here’s the accompanying chart.

Fast growing nations are above the line, so it’s hardly a surprise to see that the Asian Tigers of Taiwan, South Korea, Hong Kong, and Singapore have done well.

And I’m also not surprised to see that South Africa is almost as bad as Argentina.

At some point, I’ll have to re-crunch the numbers showing the post-WWII era. I imagine that data also will show a very strong relationship between national prosperity and economic liberty.

P.S. One external reason for Argentina’s awful performance is that it keeps getting rewarded for bad policy with IMF bailouts.

P.P.S. Greece is another country that should be a warning sign about what happens with democratic socialism.

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Cuba has a very sad history.

It traded a regular dictatorship for a communist dictatorship six decades ago, and the results have been predictably awful.

Oppression, persecution, rationing, spying, deprivation, and suffering are facts of life in that socialist hellhole.

For a while, it was subsidized by the Soviet Union, but that communist system eventually collapsed. More recently, it’s been subsidized by Venezuela, but now that socialist system also is collapsing.

And this means extra hardship for the people of Cuba.

Jose Nino explains one of the grim consequences of Cuba’s central planning.

Cuba is now implementing a rationing program to combat its very own shortages of basic goods. A CBC report indicates this program would cover basic items such as chicken, eggs, rice, beans, and soap. …When Fidel Castro took control of Cuba in 1959, the Cuban state maintained an iron grip on the economy. For decades, the country has been a communist garrison state with very little respect for property rights… Because of the economic dislocations caused by state control of many industries, the government has had to provide citizens with Libretas de Abastecimiento (supply booklets) to ration out basic goods like rice, sugar, and matches. …Cuba’s recent political behavior indicates that the country’s leadership still does not get basic economics. …After more than 50 years of embracing socialist governance, Cuba will have to learn that it needs to stick to the basic economic principles if it wants to break free from its long-standing cycle of poverty.

Bizarrely, there are still some proponents of the Cuban dictatorship.

Writing for CapX, Kristian Niemietz ponders this lingering semi-support for Cuba on the left.

…socialist experiments usually go through three stages, in terms of their reception by Western intellectuals. The first is a honeymoon period, during which they are widely held up as a glorious example of “real” socialism in action. The second is a period of angry defensiveness, during which some of the system’s failures are acknowledged, but blamed on external constraints. The third stage is the stage of retroactive disowning: intellectuals now claim that the country in question was never socialist, and that it is a cheap strawman to even mention it. The Western reception of the Soviet Union, Maoist China, Vietnam and, more recently, Venezuela followed this pattern to a tee. Cuba, in contrast, is a bit of an outlier, in that the country seems to be permanently stuck somewhere between stages two and three. It may no longer attract widespread enthusiasm, but Cuban socialism has never completely gone the way of Soviet, Maoist, Vietnamese or North Korean socialism.

Robert Lawson and Benjamin Powell have a book about statism and socialism that’s very informative. But also very entertaining.

Here are some excerpts from their chapter about a visit to Cuba.

In government-directed economies, a disproportionate amount of money is spent on what political leaders desire—typically, great Olympic sports teams, and a few showcase hotels and restaurants to impress foreigners. In Cuba’s case, this included the opulent Hotel Nacional… But we were on a mission to see what life was like inside Cuba’s socialist system. We couldn’t experience that by drinking Cuba libres at a fancy resort… Before the revolution, Cuba had a thriving urban middle class, along with widespread rural poverty. Twentieth-century socialists claimed socialism would deliver greater equality and out-produce capitalism by ending wasteful competition, business cycles, and predatory monopolies. Socialism hasn’t delivered the goods it promised in Cuba or anywhere else. Today, Cuba is a poor country made poorer by socialism. Socialism also gives tremendous power to government officials and bureaucrats who are the system’s planners—and with that power comes corruption, abuse, and tyranny. It is no accident that the worst democides of the twentieth century occurred in socialist countries like the Soviet Union, Communist China, and Nazi (National Socialist) Germany.

The book is basically a travelogue, mixed with economic insights that oscillate between amusing and horrifying.

The hotels are no good.

The Hotel Tritón’s decaying edifice was a crumbling tribute to Cuba’s central-planning problems. Cuba had the resources to make large capital investments in state-run enterprises when it received aid from the Soviet Union. But many of these hotels can’t generate enough revenue to sustain the initial investment. Cuban government planners then had to pick which hotels to subsidize to prevent decay. The Hotel Tritón didn’t make the cut. It was rotting, inside and out. And nobody cared because nobody owned it. …In a capitalist economy, entrepreneurs create businesses to make profits, which they earn by pleasing their customers. But in a socialist system, a bureaucrat decides which businesses can open, where they can operate, and what they can sell, and he really doesn’t care what the customer thinks. Adopting a socialist system is like turning your whole economy into a giant Department of Motor Vehicles.

The shopping is no good.

In Central Havana, the lack of commerce unrelated to tobacco, alcohol, or sex was striking. Habaneros lived in these neighborhoods. So where did they shop? …We found one store that was a large open room with high ceilings and cement support columns. …behind a counter, there were shelves with bottles of rum, cases of the local cola, a few canned goods, cartons of eggs, and large sacks of rice next to a scale. A line of Cubans shopped their way down the counter. The place was an odd mix, somewhere between the worst imaginable version of a grade school cafeteria and a grocery in which 95 percent of the stock is depleted.

The dining is no good.

… we decided on our last evening on the island to try a state-owned “Italian” restaurant on the main boulevard between the shitty Hotel Caribbean and the Capitol. We were disappointed to see that Italian meant nothing more than a few basic pizzas and a couple types of pasta, along with the same chicken, pork, seafood, and beef dishes we found everywhere else. We ordered two beers and “mozzarella from the oven” as an appetizer. To say that it was the equivalent of Taco Bell queso with tomato chunks in it would be insulting to Taco Bell. In fact, it was a steaming pot of greasy white goo. … most Cubans can’t afford to eat at the places we ate, and Cuba’s socialist economic system can’t even deliver variety to rich tourists. We were tired of the food after a week. But we could leave; Cubans are stuck with lousy food (outside the private restaurants), limited ingredients, and little variety for as long as they’re stuck with socialism.

And Che is no good.

Unfortunately for Cubans, Che wasn’t nearly as good at planning production as capitalists have been at plastering his image on merchandise. During Che’s stints as head of the National Bank of Cuba, minister of finance, and minister of industry, Cuba not only failed to industrialize (as promised), but its sugar production collapsed and severe rationing was introduced.

But Cubans are very good, at least when they’re out from under the tyranny of socialism.

We were in Little Havana, in Miami. The economic contrast between Little Havana and the real thing began before we even stepped out of our Uber. The half-hour car ride cost us only $13.72 instead of the absurd taxi costs in Cuba. …Unlike stores in Cuba, this store had hundreds of different items for sale. …we headed off to a Cuban restaurant for dinner. The six-page menu contained more options than we had seen from all of the restaurants in Cuba combined. …Cuban cuisine is excellent—just not when it’s served in Cuba. It’s not the Cubans’ fault. It’s the fact that socialism sucks. Cubans under a socialist system remain poor and eat bland food. Ninety miles away, Cubans who live in Miami become relatively rich and make wonderful food. Same people, two different economic systems, two drastically different economic— and gastronomic—outcomes.

By the way, I recommend the book.

There are also chapters about Sweden, Venezuela, North Korea, China, Georgia, and Russia/Ukraine.

My contribution today is this chart showing per-capita economic output in various Latin nations, derived from the Maddison database. At the time of the revolution, Cuba (orange line) was one of the richest nations. Now it has fallen far behind.

It’s always useful to look at decades of data because short-run blips aren’t a factor. Instead, you really learn a lot about which nations are enjoying good growth and which ones are stagnating.

What we’ve learned today is that the people of Cuba are poor because of awful economic policy. Other nations (most of which started in worse shape) have become much richer.

Perfect policy would be great, but even decent policy creates enough “breathing room” for more prosperity. Unfortunately, even that’s not allowed in Cuba.

P.S. For some unintentional Cuban-related humor, see here and here.

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I’ve applauded China’s economic progress.

It’s economic liberty score jumped from 3.64 in 1980 to 6.46 in the most recent edition of Economic Freedom of the World.

That shift toward markets (which started in a village) helped to dramatically reduce poverty and turn China into a middle-income nation.

That’s the good news.

The bad news is that most of China’s economic liberalization (from 3.64 to 6.15) occurred between 1980 and 2003.

Since that time, China’s score has improved at a glacial pace. Moreover, because other nations have been more aggressive about reducing the burden of government, China’s relative ranking has actually dropped (from #88 to #107) since 2003.

Which is why I’ve warned that China needs another burst of pro-market reform if it wants to become a rich country.

Regarding this issue, the Wall Street Journal has a very interesting report about how China is under-performing.

The country’s state-led growth model is running out of gas. A recession or crisis may not be imminent, but the long-run implications are just as serious. Absent a change in direction, China may never become rich. …First, official statistics probably paint too flattering a picture. Per-capita income may be a quarter lower than reported, based on a study of nighttime light co-authored by Yingyao Hu of Johns Hopkins University. …Second, it doesn’t measure up to the economies China seeks to emulate. Taiwan, South Korea and Japan all opened their economies to global trade and investment, enjoyed superfast growth for several decades… In fact, China seems to be slowing sooner than the others.

Why is China underperforming?

Too much statism. Simply stated, the government has too much control over the allocation of labor and capital.

For 30 years the Communist Party opened ever more of the economy to private enterprise, trade, foreign investment and market forces. Yet it never relinquished its commitment to socialism and Mr. Brandt says that since the mid-2000s the government has tightened control over sectors… An inefficient state sector matters less if the private sector grows fast enough. But in recent years, private firms in China have faced multiple headwinds. State-controlled banks prefer to lend to state-owned enterprises… The domestic private sector’s share of total sales has dropped about 5 percentage points since 2016, according to Goldman, while the state sector’s share has risen roughly as much.

By the way, many observers (from the American Enterprise Institute, Peterson Institute for International Economics, the New York Times, the New York Post, and Investor’s Business Daily) echo the concern about China becoming more statist in recent years.

I’ll make a more restrained point.

I’ll start by sharing this very interesting chart from the WSJ story. It shows how China’s growth, while impressive, has not been as rapid as the growth enjoyed by other Asian economies.

If you look below, you’ll see I’ve now augmented the chart to explain why China has under-performed.

On the right side, I’ve added the historical rankings from Economic Freedom of the World. As you can see (and just as theory and evidence teaches us), the other nations on the chart enjoyed more growth because they had more economic freedom.

These numbers reinforce my argument that China needs more pro-market reform. Though I should add the caveat that EFW has added more nations over time, so this comparison overstates the degree to which China is lagging.

But it is lagging. The bottom line is that China needs to copy Hong Kong and Singapore if it wants to become a rich nation. Or even Taiwan, which is an under-appreciated success story.

P.S. Keep in mind that China also faces demographic decline, which makes good policy even more necessary and important.

P.P.S. Amazingly, both the OECD and IMF are trying to sabotage China’s economy.

P.P.P.S. The WSJ story is an example of good reporting. If you want an example of bad reporting about China, check out this bizarre story from the New York Times.

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