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Archive for the ‘Socialism’ Category

When writing about Bernie Sanders back in 2016, I put together a flowchart to identify different strains of statism.

In part, I wanted to show that genuine socialists, with their advocacy of government ownershipcentral planning, and price controls, aren’t really the same as other leftists (and I’ve made the unconventional claim that “Crazy Bernie” isn’t a true socialist – at least based on his policy positions).

I’m not the only one to notice that not all leftists have the same approach.

Writing for the Washington Post about the battle between Bernie Sanders and Elizabeth Warren for the Democratic nomination, Elizabeth Bruenig opines on the difference between two strains of statism.

What is the difference between Sanders (I-Vt.) and Sen. Elizabeth Warren (D-Mass.)? …much of it comes down to the matter of regulation vs. revolution. For Warren, the solution to our economic ills already exists in well-regulated capitalism. “I believe in markets,”… Warren believes today’s socioeconomic ills are the result of high concentrations of power and wealth that can be resolved with certain regulatory tools and interventions. …for Sanders, those solutions come up short. ,,,Instead, he aims to transfer power over several key segments of life to the people — by creating a set of universal economic rights that not only entitle citizens to particular benefits (such as medical care, education and child care) but also give those citizens a say in how those sectors are governed: in short, democratic socialism.

They both sound like “stationary bandits” to me, but there are some nuances.

Elizabeth Warren basically favors private ownership but she explicitly wants politicians and bureaucrats to have the power to dictate business decisions.

Thomas Sowell points out this economic philosophy is fascism. But I’ll be more polite and refer to it as corporatism.

By contrast, as a self-declared socialist, Bernie Sanders should be in favor of nationalizing companies.

But, as reported by the New York Times, he actually sees himself as another Franklin Roosevelt.

Senator Bernie Sanders of Vermont offered a vigorous defense of the democratic socialism that has defined his five decades in political life on Wednesday… Mr. Sanders cast himself at times in direct competition with President Trump, contrasting his own collectivist views against what he called the “corporate socialism” practiced by the president and the Republican Party. And Mr. Sanders, 77, declared that his version of socialism was a political winner, having lifted Mr. Roosevelt to victory four times… Mr. Sanders…presented his vision of democratic socialism not as a set of extreme principles but as a pathway to “economic rights,”… He argued that his ideology is embodied by longstanding popular programs, including Social Security, Medicare and Medicaid, that Republicans have labeled socialist. …Mr. Sanders called for a “21st-century economic Bill of Rights,” which he said would address health care, wages, education, affordable housing, the environment and retirement.

I’ll make two points.

First, FDR may have won four times, but he was an awful President. His policies deepened and lengthened the Great Depression.

And his proposed “economic bill of rights” would have made a bad situation even worse. He basically said everyone has a right to lots of freebies without ever stopping to think about the impact such policies would have on incentives to lead productive lives.

For all intents and purposes, we wanted to turn this cartoon into reality.

Second, I don’t actually think there’s a significant difference between Sanders and Warren. Yes, their rhetoric is different, but they both want higher taxes, more regulation, additional spending, and more intervention.

Heck, if you examine their vote ratings from the Club for Growth or the National Taxpayers Union, it’s hard to find any real difference.

At the risk of making a radical understatement, neither of them is a friend to taxpayers.

But thinking about this issue has motivated me to modify my statism flowchart. Here’s the new version.

As you can see, I created a much-needed distinction between totalitarian statism and democratic statism.

And while Warren is on the corporatist side and Sanders is on the socialist side, I also put both of them relatively close to the Venezuela-style track of “incoherent statism.” In other words, I think they’re guided by vote buying rather than a cohesive set of principles.

P.S. I wrote last week about the emerging “anti-socialist” wing of the Democratic Party. Presumably they would be the “rational leftists” on the flowchart.

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How do we measure the cost of Venezuelan socialism?

Actually, it’s all of the above.

And there’s plenty of additional evidence. All of which shows that more socialism results in more misery.

Let’s review some examples.

Venezuela has the largest oil reserves in the world. But with government running the industry, producing petroleum products has been a challenge. To put it mildly.

Venezuela — home to the world’s largest oil reserves — has started introducing in some areas to tackle extreme fuel shortages. …for ordinary Venezuelans, it is a cruel joke without a punchline — a driver recently died of a heart attack after waiting in line for days to fill his tank. …Lopez had been waiting in line to fill her tank for six hours in Lara’s capital Barquisimeto, but had to leave without getting any fuel because she had to go search for medicine for her ailing brother, who suffers from meningitis. “It’s a joke!” she fumed again as she left the gas station empty-handed, despite the fact that between state-regulated gas prices, hyper-inflation and black-market dollar exchange rates, a dollar could technically buy almost 600 million liters of fuel. …According to the Organization of Petroleum Exporting Countries (OPEC), Venezuela’s oil output has dropped from 3.2 million barrels per day a decade ago to 1.03 million barrels in April this year. Other estimates put that output as low as 768,000 barrels per day.

Here’s another sign of Venezuela’s descent into third-world status.

…the Center for Malaria Studies in Caracas..is not immune to Venezuela’s economic crisis and is struggling to treat patients. This is a country that lacks 85 percent of the medicines it needs, according to the pharmaceuticals industry. …Scientists who would later work for this clinic contributed in 1961 to helping Venezuela become the first country to eradicate malaria. However, there was a resurgence seven years ago, worsening to become an epidemic in 2016, according to the Red de Epidemiologia NGO. Today the clinic is in a sorry state: yellowed microscopes, a dishwasher stained by purple chemicals, refrigerators corroded by rust. …According to the World Health Organization, Venezuela registered more than 400,000 malaria cases in 2017, making it one of the hardest-hit countries in the Americas. Noya, though, believes the true extent of the epidemic is “close to two million” people affected.

I have no idea if Juan Guaido, the putative leader of the opposition, has what it takes to lead Venezuela out of the dark ages (maybe he’s another Macri rather than a Thatcher). But he’s definitely getting some first-hand experience with socialism.

On Thursday, Juan Guaido woke up and doused himself with a bucket of water. It was his shower. Like millions of Venezuelans, the man who dozens of countries recognize as the legitimate leader of his broken country can’t rely on the taps to run. …“It’s going to get worse” before things turn, he warned.

Reuters reports on how parts of Venezuela are descending into autarky and barter.

At the once-busy beach resort of Patanemo, tourism has evaporated over the last two years as Venezuela’s economic crisis has deepened and deteriorating cellphone service left visitors too afraid of robbery to brave the isolated roads. …These days, its Caribbean shoreline flanked by forested hills receives a different type of visitor: people who walk 10 minutes from a nearby town carrying rice, plantains or bananas in hopes of exchanging them for the fishermen’s latest catch. With bank notes made useless by hyperinflation, and no easy access to the debit card terminals widely used to conduct transactions in urban areas, residents of Patanemo rely mainly on barter. It is just one of a growing number of rural towns slipping into isolation as Venezuela’s economy implodes amid a long-running political crisis. …In the mountains of the central state of Lara, residents of the town of Guarico this year found a different way of paying bills – coffee beans. Residents of the coffee-growing region now exchange roasted beans for anything from haircuts to spare parts for agricultural machinery.

One can only wonder, by the way, why the collapse of trade isn’t creating more jobs and prosperity. Could it be that Trump is wrong on the issue?

But I’m digressing. Let’s get back to our main topic.

What can you say about a country that’s so poor that even criminals are suffering?

Venezuela’s crippling economic spiral is having a negative impact on an unlikely group in society: criminals, who are struggling to afford bullets, and unable to find things to steal as the country’s wealth declines rapidly. …While bullets are widely available on the black market, many muggers cannot afford the $1 price tag anymore, a criminal known as “Dog” told the news organization. …Another gangster, “El Negrito,” who leads a gang called Crazy Boys, has found it increasingly hard to support his wife and daughter with assaults. Firing a bullet is a luxury now, he said. …homicide rate…went down by nearly 10% last year— though Venezuela remains one of the most violent countries in the world. The non-profit, which aggregates the data from morgues and media reports, partly attributes this decrease to the reduction in muggings — because there is nothing to steal. …Shoemaker Yordin Ruiz told The Washington Post: “If they steal your wallet, there’s nothing in it.”

What a perfect symbol of socialism! People are so poor that there’s nothing left to steal.

I want to conclude by emphasizing a point that I’ve made before about greater levels of socialism being associated with greater levels of misery.

As you can see from this chart (based on EFW data), Hong Kong has the most freedom, though it isn’t perfect.

Then you have nations such as the United States and Denmark, that have some statist characteristics but are mostly market oriented. Followed by France, which has a lot more socialist characteristics, and then Greece, which presumably can be described as a socialist nation.

But Venezuela is an entirely different category. It’s in the realm of near-absolute statism.

P.S. Cuba and North Korea presumably rank below Venezuela, but they’re not part of the EFW rankings because of inadequate and/or untrustworthy data.

P.P.S. It’s hard to believe, given the pervasive statism that now exists, but Venezuela in 1970 was ranked in the top 10 for economic liberty.

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Since I’m a policy economist, I rarely comment on political matters.

But I am worried that the Democratic Party is veering too far to the left. Bernie Sanders, an out-of-the-closet socialist is leading the way, followed closely by other leading Democrats with hard-left policy agendas, such as Kamala Harris and Elizabeth Warren.

But not every 2020 candidate is hopping on the socialism bandwagon. Some of the major candidates, such as Joe Biden, have avoided saying anything favorable about socialism.

And two of the candidates have explicitly rejected the poisonous ideology.

Interestingly, they’re both from Colorado.

CNN reports that the former governor, John Hickenlooper. received a very hostile reception when he rejected socialism.

The welcoming cheers 2020 presidential hopeful John Hickenlooper received when he first graced the stage at California’s Democratic Convention quickly crumbled into boos and jeers after he rejected socialism as the answer to Democrats’ problems. “If we want to beat Donald Trump and achieve big progressive goals, socialism is not the answer,” Hickenlooper said to a crowd of more than 4,500 delegates and observers on Saturday.Before he could get finish his next sentence, a chorus of boos…overtook his speech, lasting for more than 30 seconds. …The former Colorado governor is one of 15 Democratic candidates to address the San Francisco crowd, which is known to be home to some of the party’s furthest left progressives.

And, as reported by the Hill, one of the state’s U.S. Senators, Michael Bennet, also condemned socialism for being contrary to American ideals.

Sen. Michael Bennet (D-Colo.), a 2020 presidential hopeful, said on Sunday that his dismissal of socialism as a solution for America is not out of the mainstream for the Democratic Party. “I don’t think I’m out of step,” Bennet told ABC’s “This Week.” “I think we have 230 years of being the longest-lived democracy on the planet. That’s something we need to preserve.” …Bennett made the comments in response to a viral moment in which his fellow Democratic presidential candidate, former Colorado Gov. John Hickenlooper, was booed at the California Democratic Convention over the weekend …Bennet…is on the moderate end of the Democratic primary field.

I hope Joe Biden and other Democrats join Hickenlooper and Bennet.

In my fantasy world, the next Democratic president will turn out to be another Bill Clinton who presides (either intentionally or unintentionally) over an expansion of economic freedom in the United States.

But at the very least, I don’t want the country to take a big step toward statism, which was the mistake the United Kingdom made under Clement Attlee after World War II.

P.S. I realize many Democrats today don’t really have a firm understanding of socialism. Many of them don’t realize it implies government ownershipcentral planning, and price controls. Heck, some of them probably think the market-oriented Nordic welfare states (which have similar levels of economic freedom as the United States) are socialist. Regardless, they definitely want government to get bigger at a faster rate, so I’m hoping they’re not the majority of the Democratic Party.

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Socialism is immoral.

The bad news is that a lot of young people nonetheless believe in this evil ideology.

But the good news is that there’s a lot of real-world evidence that socialism fails every time it is tried.

I certainly do everything possible to educate people about the downside of this coercive system. Including an entire collection of anti-socialism humor.

Adding to that collection is the point of today’s column.

Let’s start with this item (which reminds me of a Michael Ramirez cartoon from 2013).

But if some people still want lots of freebies, President Eisenhower has a suggestion of where they can look.

Next we have some satirical polling data.

I haven’t seen his work before, but Pat Cross probably deserves to be an after-the-fact participant in my political cartoonist contest based on these two gems.

His first contribution is a scientific screw-up.

Followed by this this household screw-up.

I assume the guys in these cartoons are part of the “real socialism hasn’t been tried” community.

Too bad they couldn’t see into the future.

I’ve already mocked “democratic socialism,” so I naturally can’t resist sharing this bit of satire.

Speaking of “democratic socialism,” the next item in today’s collection mocks those who try to highlight Scandinavia while disowning Venezuela.

I’ve shared a comparison of pets on socialism vs. pets on capitalism.

Here’s the water version.

Next, we have a putative quote from Winston Churchill, and I added the caveat about “putative” because a quick online search suggests he didn’t actually say this.

But the sentiment is so accurate that it merits inclusion.

For what it’s worth, there’s a great quote about socialism and capitalism at the end of this column, which actually did come from Churchill.

I always try to conclude any collection of jokes with the one that made me laugh the most.

And that definitely is the case for this final image.

P.S. Some people complain that I share too many jokes about the topic. They say socialism is a real threat, not something to laugh about.

Given the horrible suffering that has been caused by various versions of socialism, I understand that sentiment.

But I’m reminded that the Soviet Union, which rivaled Germany’s national socialism and Mao’s China in terms of sheer brutality, was undermined by humor.

P.P.S. Don’t forget the special collections of Bernie humor and AOC humor.

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By refusing to implement a Clean Brexit and instead pursuing a Brexit-in-Name-Only, Prime Minister Theresa May has dramatically reduced support for the Conservative Party in the United Kingdom.

The poll numbers are now so bad that it is conceivable to imagine that Jeremy Corbyn could win the next election.

That would be horrible news. The leader of the Labour Party is an unreconstructed hard-core socialist. A real socialist who would move the country toward government ownership, central planning and price controls.

In other words, like Crazy Bernie, only crazier.

Theodore Dalrymple aptly summarizes for City Journal what a Labour government would mean for the U.K.

Thanks to the current imbroglio over Brexit, Britain could soon be Venezuela without the oil or the warm weather. The stunning incompetence of the last two Tory prime ministers, David Cameron and Theresa May, might result in a Labour government, one led by Jeremy Corbyn, a man who has long admired Hugo Chavez… Corbyn’s second in command, John McDonnell, would, as Chancellor of the Exchequer, be in charge of the economy. Only five years ago, he said that the historical figures he most admired were Marx, Lenin, and Trotsky… he argued for the nationalization of land. He also favors nationalizing railways and public utilities, which can be done only through rates of taxation so high that they would amount to the nationalization of everything—with a resultant economic collapse—or by outright confiscation… The arrival in power of such men will produce an immediate crisis, which they will blame on capitalism, the world economic system, the Rothschilds, and so forth. They will use the crisis to justify further drastic measures. …None of this is inevitable, but thanks to the bungling of Brexit, it is considerably closer.

This video tells you everything you need to know.

Let’s look at a couple of specific topics.

Writing for CapX, Eamonn Ives explains what’s wrong with the Labour Party’s agenda for more government spending.

…what Jeremy Corbyn and John McDonnell are arguing for is a long way from Keynesian doctrine. They propose a massive injection of government spending in the economy, despite the UK experiencing unprecedented levels of employment and (admittedly rather anaemic) growth. Keynes, by contrast, argued for counter-cyclical fiscal policy. …Of course, the money would have to be found from somewhere: either in existing budgets, or levying new or higher taxes, or through quantitative easing, or additional borrowing. …this model only makes sense if governments are more strategic in deploying resources than private firms and individuals. And, as failed socialist experiment after failed social experiment has shown, there is no evidence to suggest that is the case. …It’s often remarked that if something’s too good to be true, then it probably is. Labour’s voodoo economics are no exception to this. If they really want to stimulate the economy, they should be celebrating, not denigrating the real way to foster genuine economic growth: tax cuts and other supply-side reforms.

Andrew Lilco opines for CapX on an Elizabeth Warren-type scheme that’s been proposed by John McDonnell, the guy would be Chancellor of the Exchequer (what Americans would call a Treasury Secretary) in a Labour government.

John McDonnell…proposed that businesses should be required to share profits with workers either in the form of bonuses or share distributions. He said he wants to “transform the economy”… Indeed, he says the “overthrow of Capitalism” is now his “job”. …What would be the economic effects? Many firms already pay bonuses to staff if the they make higher-than-expected profits, and other firms offer key staff bonuses in the form of shares. …But problems arise if one mandates that all firms should be run that way or attempts to cap returns at some state-set “fair” level. …The essential definitive feature of capitalism is that it is a system of opportunity for those without money to have their projects funded. …If we…cap their rates of return to a “fair” level, that will…mean that only certain sorts of investment occur. In particular, it means an end to high risk investment, where very high rates of return when a project is successful make up for all the losses in other less successful ventures when projects are not successful. …That would have fairly clear implications for the sort of economy the UK would have. …New technologies and new products would come in gradually, but only from abroad and only later than other countries had them. …That in turn will, over time, drag the state into a wider and wider role in the economy.

Speaking of McDonnell, what sort of politician is willing to be part of an event that celebrates brutal communist dictators?

This guy may be even worse than Corbyn.

Let’s wrap up with a look at how Labour Party bigwigs have been infatuated with the thuggish dictatorship in Venezuela.

Just as bad as Michael Moore, Joseph Stiglitz, and Bernie Sanders.

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Donald Trump is an incoherent mix of good policies and bad policies.

Some of his potential 2020 opponents, by contrast, are coherent but crazy.

And economic craziness exists in other nations as well.

In a column for the New York Times, Jochen Bittner writes about how a rising star of Germany’s Social Democrat Party wants the type of socialism that made the former East Germany an economic failure.

Socialism, the idea that workers’ needs are best met by the collectivization of the means of production… A system in which factories, banks and even housing were nationalized required a planned economy, as a substitute for capitalist competition. Central planning, however, proved unable to meet people’s individual demands… Eventually, the entire system collapsed; as it did everywhere else, socialism in Germany failed. Which is why it is strange, in 2019, to see socialism coming back into German mainstream politics.

But this real-world evidence doesn’t matter for some Germans.

Kevin Kühnert, the leader of the Social Democrats’ youth organization and one of his party’s most promising young talents, has made it his calling card. Forget the wannabe socialism of American Democrats like Bernie Sanders or Alexandria Ocasio-Cortez. The 29-year-old Mr. Kühnert is aiming for the real thing. Socialism, he says, means democratic control over the economy. He wants to replace capitalism… German neo-socialism is profoundly different from capitalism. …Mr. Kühnert took specific aim at the American dream as a model for individual achievement. …“Without collectivization of one form or another it is unthinkable to overcome capitalism,” he told us.

In other words, he wants real socialism (i.e., government ownership). And that presumably means he also supports central planning and price controls.

What makes Kühnert’s view so absurd is that he obviously knows nothing about his nation’s history.

Just in case he reads this, let’s look at the evidence.

Jaap Sleifer’s book, Planning Ahead and Falling Behind, points out that the eastern part of Germany was actually richer than the western part prior to World War II.

The entire country’s economy was then destroyed by the war.

What happened afterwards, though, shows the difference between socialism and free enterprise.

Before…the Third Reich the East German economy had…per capita national income…103 percent of West Germany, compared to a mere 31 percent in 1991. …Here is the case of an economy that was relatively wealthy, but lost out in a relatively short time… Based on the official statistics on national product the East German growth rates were very impressive. However, …the actual performance was not that impressive at all.

Sleifer has two tables that are worth sharing.

First, nobody should be surprised to discover that communist authorities released garbage numbers that ostensibly showed faster growth.

What’s really depressing is that there were more than a few gullible Americans – including some economists – who blindly believe this nonsensical data.

Second, I like this table because it confirms that Nazism and communism are very similar from an economic perspective.

Though I guess we should give Germans credit for doing a decent job on product quality under both strains of socialism.

For those who want to read further about East German economic performance, you can find other scholarly articles here, here, and here.

I want to call special attention, though, to a column by an economist from India. Written back in 1960, even before there was a Berlin Wall, he compared the two halves of the city.

Here’s the situation in the capitalist part.

The contrast between the two Berlins cannot miss the attention of a school child. West Berlin, though an island within East Germany, is an integral part of West German economy and shares the latter’s prosperity. Destruction through bombing was impartial to the two parts of the city. Rebuilding is virtually complete in West Berlin. …The main thoroughfares of West Berlin are near jammed with prosperous looking automobile traffic, the German make of cars, big and small, being much in evidence. …The departmental stores in West Berlin are cramming with wearing apparel, other personal effects and a multiplicity of household equipment, temptingly displayed.

Here’s what he saw in the communist part.

…In East Berlin a good part of the destruction still remains; twisted iron, broken walls and heaped up rubble are common enough sights. The new structures, especially the pre-fabricated workers’ tenements, look drab. …automobiles, generally old and small cars, are in much smaller numbers than in West Berlin. …shops in East Berlin exhibit cheap articles in indifferent wrappers or containers and the prices for comparable items, despite the poor quality, are noticeably higher than in West Berlin. …Visiting East Berlin gives the impression of visiting a prison camp.

The lessons, he explained, should be quite obvious.

…the contrast of the two Berlins…the main explanation lies in the divergent political systems. The people being the same, there is no difference in talent, technological skill and aspirations of the residents of the two parts of the city. In West Berlin efforts are spontaneous and self-directed by free men, under the urge to go ahead. In East Berlin effort is centrally directed by Communist planners… The contrast in prosperity is convincing proof of the superiority of the forces of freedom over centralised planning.

Back in 2011, I shared a video highlighting the role of Ludwig Erhard in freeing the West German economy. Given today’s topic here’s an encore presentation.

Samuel Gregg, writing for FEE, elaborates about the market-driven causes of the post-war German economic miracle.

It wasn’t just Ludwig Erhard.

Seventy years ago this month, a small group of economists and legal scholars helped bring about what’s now widely known as the Wirtschaftswunder, the “German economic miracle.” Even among many Germans, names like Walter Eucken, Wilhelm Röpke, and Franz Böhm are unfamiliar today. But it’s largely thanks to their relentless advocacy of market liberalization in 1948 that what was then West Germany escaped an economic abyss… It was a rare instance of free-market intellectuals’ playing a decisive role in liberating an economy from decades of interventionist and collectivist policies.

As was mentioned in the video, the American occupiers were not on the right side.

Indeed, they exacerbated West Germany’s economic problems.

…reform was going to be easy: in 1945, few Germans were amenable to the free market. The Social Democratic Party emerged from the catacombs wanting more top-down economic planning, not less. …Further complicating matters was the fact that the military authorities in the Western-occupied zones in Germany, with many Keynesians in their contingent, admired the economic policies of Clement Atlee’s Labour government in Britain. Indeed, between 1945 and 1947, the Allied administrators left largely in place the partly collectivized, state-oriented economy put in place by the defeated Nazis. This included price-controls, widespread rationing… The result was widespread food shortages and soaring malnutrition levels.

But at least there was a happy ending.

Erhard’s June 1948 reforms…abolition of price-controls and the replacement of the Nazi-era Reichsmark with much smaller quantities of a new currency: the Deutsche Mark. These measures effectively killed off…inflation… Within six months, industrial production had increased by an incredible 50 percent. Real incomes started growing.

And Germany never looked back. Even today, it’s a reasonably market-oriented nation.

I’ll close with my modest contribution to the debate. Based on data from the OECD, here’s a look at comparative economic output in East Germany and West Germany.

You’ll notice that I added some dotted lines to illustrate that both nations presumably started at the same very low level after WWII ended.

I’ll also assert that the blue line probably exaggerates East German economic output. If you doubt that claim, check out this 1990 story from the New York Times.

The bottom line is that the economic conditions in West Germany and East Germany diverged dramatically because one had good policy (West Germany routinely scored in the top 10 for economic liberty between 1950 and 1975) and one suffered from socialism.

These numbers should be very compelling since traditional economic theory holds that incomes in countries should converge. In the real world, however, that only happens if governments don’t create too many obstacles to prosperity.

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Since I think comparative economics can be very enlightening, I’m quite pleased to see a new study by David Burton of the Heritage Foundation, which uses several metrics to assess the relative merits of socialism and free enterprise.

This is not necessarily an easy task since socialism is a moving target.

Some people still adhere to the technical definition, which means government ownership, central planning, and price controls. While others assume that socialism is high tax rates and lots of redistribution.

Here’s David’s summary.

State ownership of the means of production is the central tenet of traditional socialist or communist thought. Traditional socialist and communist economic policies involve state-owned enterprises and a high degree of state control over all aspects of economic life. Over time, politicians came to understand that they did not need to have legal ownership of, or legal title to, businesses or other property in order to control them by regulation, administrative actions, or taxation. Furthermore, not having legal title meant that they could disclaim responsibility when government control did not work out well. Thus, the meaning of the term “socialist” evolved considerably during the last half of the 20th century to mean a strong state role in the economy, the pursuit of aggressive redistributionist policies, high levels of taxation and regulation, and a large welfare state—but not necessarily government ownership of the means of production.

Regardless of how it’s defined, it doesn’t work. And the closer a country is to technical socialism, the greater the economic misery.

David reviews and analyzes a lot of material and I recommend the entire report.

For today’s purposes, though, I want to focus on his ethical arguments.

Here’s how he describes the morality of capitalism.

As a libertarian, I’m especially sympathetic to the argument about cooperative exchange versus coercion.

As an economist, I’m naturally sympathetic to the argument about prosperity versus poverty.

And I hope everyone agrees with the arguments about individual choice and civil society.

Now let’s look at David’s description of the morality of socialism.

For what it’s worth, I think the final point is the most compelling.

Socialism (whether the technical version or the redistribution version) basically creates a zero-sum game in which people are told it is moral to take from others simply because they produce more.

And this doesn’t necessarily mean the poor taking from the rich. Yes, that’s a big part of it, but there are all sorts of government programs that burden lower-income and middle-class people in order to line the pockets of the well-connected.

Last but not least, David charitably focuses on democratic socialism rather than Marxist socialism, so he’s not even counting the horrible abuses that you find in socialist regimes such as Cuba, North Korea, and Venezuela.

P.S. While I realize we shouldn’t laugh about an ideology that has produced so much misery, I do have a collection of anti-socialist humor.

P.P.S. I strongly recommend this speech by Dan Hannan about the superiority of markets over socialism.

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