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Posts Tagged ‘Socialism’

When trying to convince someone about the downsides of socialism, I generally make a practical argument. I point out that socialism has universally failed, whether looking at totalitarian versions in places such as North Korea and Cuba or democratic versions in places such as Venezuela and Greece.

Simply stated, the particular strain of socialism doesn’t make a difference. At the end of the day, the greater the level of statism, the greater the level of economic damage.

But our friends on the left aren’t discouraged. Indeed, the support for cranks like Bernie Sanders and Jeremy Corbyn is a sign that socialist policies still have appeal to some people.

Writing for CapX, Kristian Niemietz of London’s Institute for Economic Affairs contemplates the resurgence of socialism. He starts by citing examples of pro-socialist writings.

Opinion pieces which tell us to stop obsessing over socialism’s past failures…have almost become a genre… Nathan Robinson, the editor of Current Affairs, wrote…that socialism has not “failed”. It has just never been done properly… Closer to home, Owen Jones wrote that Cuba’s current version of socialism was not “real” socialism… And Washington Post columnist Elizabeth Bruenig wrote an article with the self-explanatory title ‘It’s time to give socialism a try’.

Kristian provides three reasons why the we’ll-do-better-next-time theory of socialism is very impractical.

…articles in this genre share a number of common flaws. First, as much as the authors insist that previous examples of socialism were not “really” socialist, none of them can tell us what exactly they would do differently. …Secondly, the authors do not seem to realise that there is nothing remotely new about the lofty aspirations they talk about, and the buzzphrases they use. Giving “the people” democratic control over economic life has always been the aspiration, and the promise, of socialism. …Thirdly, contemporary socialists completely fail to address the deficiencies of socialism in the economic sphere. They talk a lot about how their version of socialism would be democratic, participatory, non-authoritarian, nice and cuddly. Suppose they could…magically make that work. What then? They would then be able to avoid the Gulags, the show trials and the secret police… But we would still be left with a dysfunctional economy.

Amen to the last point.

I wrote last year that Marxist socialism is disgusting and brutal compared to liberal socialism, but both versions lead to economic malaise.

Which leads to the conclusion of Kristian’s column.

Ultimately, the contemporary argument for socialism boils down to: “next time will be different, because we say so.” After more than two dozen failed attempts, that is just not good enough.

Of course, some people instinctively knew that socialism was a pre-determined recipe for failure. Here’s the great Winston Churchill speaking about statism shortly after World War II.

Spot on. You can’t control an economy without controlling people.

And here’s another voice from the past, courtesy of Reddit‘s libertarian page.

And here’s Mr. Rogers imagining a fantasy world where socialism might work.

Last but not least, let’s close with this gem from Reddit‘s Libertarian Meme page.

Though when you think about people starving to death in places like Venezuela and North Korea, I suppose we shouldn’t laugh too much.

P.S. Other examples of socialism humor can be enjoyed here, here, and here.

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Yesterday’s column looked at the continued government-caused decay of Venezuelan society. To put it mildly, it’s a very sad story of how pervasive statism can destroy a country.

I also wondered whether leftists such as Bernie Sanders, Michael Moore, and Jeremy Corbyn will ever change their minds and (hopefully) apologize for giving aid and comfort to the evil Chavez-Maduro regime. (I’m not holding my breath.)

Today, let’s revisit the issue.

But instead of citing news reports, let’s look at four videos on the tragedy in Venezuela. We’ll start with Reason‘s excellent summary.

I like how the video concludes with a warning that America should avoid the same mistakes.

And that’s not just a throwaway line. Venezuela did not become a basket case overnight. There wasn’t an on-off switch that Chavez or Maduro used to turn the country from capitalism to statism.

Instead, it was the combined effect of decades of bad policy decisions.

In other words, gradual deterioration eventually turned into major disaster. Which may help explain why I’m so distressed about the creeping statism of the Bush and Obama (and perhaps Trump) years.

But I’m digressing. Let’s get back to the videos. Our next item is a report from the New York Times. It’s disappointing (but not overly surprising) that there’s no mention of the big-government policies that have reduced people to scouring for garbage, but you will learn about the horror of daily life for the poor.

Our next video, from Prager University, is a very straightforward description of how socialism has destroyed Venezuela.

I especially like how she concludes with a warning about how big government erodes societal capital, which then makes it very hard to restored liberty.

And the part about classifying involuntary weight loss as the “Maduro Diet” also was a highlight, at least if you like dark humor.

Our last video is an excerpt from a speech by a Venezuelan economist.

The part that grabbed my attention was the downward cycle of government-created inflation and government-imposed minimum-wage hikes. One bad policy leading to another bad policy, over and over again. Lather, rinse, repeat.

And while he doubtlessly exaggerated when he said that every single person in Venezuela would be happy to eat out of America’s trash cans, it’s still horrifying that a big chunk of the population would welcome such an opportunity.

So where will all this lead? At the start of the year, I expressed hope that the people of Venezuela would rise up and overthrow their tyrannical government. I don’t know if I should turn that hope into a prediction, but it certainly seems like it is only a matter of time before something dramatic happens.

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As far as I’m concerned, everything you need to know about capitalism vs. statism is captured in this chart comparing per-capita economic output in Chile and Venezuela.

Ask yourself which country offers more opportunity, especially for the poor? The obvious answer is Chile, where poverty has rapidly declined ever since the country shifted to free enterprise. In Venezuela, by contrast, poor children die of malnutrition thanks to pervasive interventionism.

Indeed, having shared several horrifying stories of human suffering and government venality from Venezuela (including 28 separate examples in April 2017 and 28 different separate examples in December 2017), I’ve reached the point where nothing shocks me.

So now I mostly wonder whether leftist apologists feel any shame when they see grim news from that statist hellhole.

For instance, what does Joe Stiglitz think about this report from the Miami Herald?

At 16, Liliana has become the mother figure for a gang of Venezuelan children and young adults called the Chacao, named after the neighborhood they’ve claimed as their territory. The 15 members, ranging in age from 10 to 23, work together to survive vicious fights for “quality” garbage in crumbling, shortage-plagued Venezuela. Their weapons are knives and sticks and machetes. The prize? Garbage that contains food good enough to eat. …A year ago, the gang was “stationed” around a supermarket at a mall called Centro Comercial Ciudad Tamanaco that generates tons of garbage. But a feared rival gang from the neighborhood Las Mercedes also wanted the garbage.

And what does Bernie Sanders think about this story from NPR?

The Pharmaceutical Federation of Venezuela estimates the country is suffering from an 85 percent shortage of medicine amid an economic crisis… The entire Venezuelan health care system is on the verge of collapse, says Francisco Valencia, head of the public health advocacy group Codevida. Some hospitals lack electricity, and more than 13,000 doctors have left Venezuela in the past four years in search of better opportunities. “They don’t give food to the patients in the hospital…” Government data shows infant mortality rose by 30 percent in 2016… The International Monetary Fund predicts inflation will soar to 13,000 percent this year and the economy will shrink by 15 percent. …The monthly minimum wage for many Venezuelans is now equal to $3, according to the AP. …Maduro blames the country’s growing crisis on…the U.S…leading an effort to wipe out socialism in Venezuela.

I’d be curious to know what Michael Moore thinks about this news from CNN?

Venezuela’s devastating food crisis means wheat flour has become a rare commodity in the country. Some churches have run out of the ingredient needed to make the sacramental bread that is central to celebrating the Holy Eucharist… So, members of the Catholic diocese of Cúcuta, Colombia, braved heavy rain this week to deliver the wafers over a bridge that connects the two countries… Venezuela’s economic crisis, fueled by a decline in oil production, shows no signs of improvement.People are starving because of routine food shortages. They are dying in hospitals because basic medicine and equipment aren’t available.

And what does Jeremy Corbyn think about this Bloomberg report?

Ruiz’s weekly salary of 110,000 bolivares — about 50 cents at the black-market exchange rate — buys him less than a kilo of corn meal or rice. His only protein comes from 170 grams of canned tuna included in a food box the government provides to low-income families. It shows up every 45 days or so. “I haven’t eaten meat for two months,” he said. …Hunger is hastening the ruin of Venezuelan’s oil industry as workers grow too weak and hungry for heavy labor. With children dying of malnutrition and adults sifting garbage for table scraps, food has become more important than employment, and thousands are walking off the job. …Venezuela, a socialist autocracy that once was South America’s most prosperous nation, is suffering a collapse almost without precedent.

Or how about getting Sean Penn‘s reaction to this story from the New York Times?

For the past three weeks, Wilya Hernández, her husband and their daughter, 2, have been sleeping on the garbage-strewn streets of Cúcuta, a sprawling and chaotic city on Colombia’s side of the border with Venezuela. Though Antonela, the toddler, often misses meals, Ms. Hernández has no desire to return home to Venezuela. …“I sold my hair to feed my girl,” Ms. Hernández said, pulling back her locks to reveal a shaved head underneath, adding that wigmakers now walk the plazas of Cúcuta where many Venezuelans congregate, wearing signs advertising that they give cash for hair. …“If I can’t afford to go the bathroom, I’ll go on the street,” Ms. Hernández added. “That’s when guys walking by say creepy things.”

I wonder if Noam Chomsky has any comments about this Washington Post story?

A friend recently sent me a photograph…, just a blurry cellphone shot of trash… And yet I can’t stop thinking about it, because strewn about in the trash are at least a dozen 20-bolivar bills, small-denomination currency now so worthless even looters didn’t think it was worth their time to stop and pick them up. …according to the “official” exchange rate, …each of those bills is worth $2. In fact, as Venezuela sinks deeper…into…hyperinflation…, bolivar banknotes have come to be worth basically nothing: Each bill is worth about $0.0001 at the current exchange rate… It’s easy to see why the thieves left them behind.

Last but not least, I wonder what Jesse Jackson thinks about this news from the U.K.-based Guardian?

More than half of young Venezuelans want to move abroad permanently, after food shortages, violence and a political crisis escalated to new extremes in 2017, according to a new survey. Once Latin America’s richest country, Venezuela’s economy is now collapsing… One of the most painful effects of the current crisis has been widespread hunger. In 2015, when inflation and food shortages were well below current levels, nearly 45% of Venezuelans said there were times when they were unable to afford food; in the latest study, that figure had risen to 79% – one of the highest rates in the world. …Norma Gutiérrez, a radiologist in eastern Caracas, is one of those…would-be migrants. Acute shortages in the hospital where she works depress her, and she says the idea of emigrating crosses her mind at least once a week.

By the way, in an example of unintended humor, the Socialist Party of Great Britain has a ready-made answer to all those questions. The misery is the fault of capitalism. I’m not kidding.

And folks on the establishment left occasionally try to imply that it’s all the result of falling oil prices.

Two years ago, I concocted a visual showing the “Five Circles of Statist Hell” and speculated that Venezuela was getting close to the fourth level. Though I still don’t think it’s nearly as bad as North Korea.

P.S. Since I mentioned unintentional humor, you’ll be amused to know a “Happy Planet Index” created by radical environmentalists places Venezuela above the United States.

P.P.S. And here’s some intentional dark humor about hunger in Venezuela.

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I like to share examples of political/policy humor, including self-deprecating jokes that poke fun at libertarians (we may be dorky, but at least we don’t want to control your life!).

But I have a challenge. When sharing jokes that make mock leftist economics, I have to decide whether something is socialist humor, communist humor, or generic anti-leftist or anti-Democrat humor. And that’s sometimes not easy because the technical definition of socialism (government ownership of the means of production) makes it very similar to communism, but the man-on-the-street definition of socialism (a big welfare state) makes it very similar to Obamanomics or Clintonomics (Hillary, not Bill).

Well, whoever put this together wants us to believe that there’s no difference between Democrats and socialists, which is arguable (as Debbie Wasserman-Schultz will agree). But I think the part about the difference between socialism and communism is very clever.

Kudos to whoever created this. I wrote an entire column on the difference between liberal socialism and Marxist socialism, but this gets across the same point much more succinctly.

Moving on, I’m convinced that many of my leftist friends support bad policy because they have the mistaken view that the economy is a fixed pie. And when they start with that inaccurate assumption, they naturally think that a rich person’s wealth means poverty for others.

And that’s reflected in this comparison.

By the way, some people do get expensive houses under socialism, and you can probably guess which ones.

Our next image wins the prize for subtle humor.

Though I’m guessing Bernie didn’t laugh at this practical application of his philosophy.

Next, from Reddit’s libertarian page, here’s an image that mocks the endless failure of statist economics. Yes, I realize that Venezuelan statism and North Korean statism aren’t the same (and that Ukraine is a failed kleptocracy more than anything else), but the broad point about the failure of big government makes this meme worth sharing.

And since we’re on the topic of how big government fails everyplace where it’s tried, let’s conclude today with a video that was turned into humor by the addition of a five-word caption.

At the risk of injecting some serious discussion into today’s column, allow me to preemptively address the leftist argument that Scandinavian nations show that socialism can work.

  • In global ranking of economic liberty, Nordic nations score relatively high, with Denmark and Finland in the top 20.
  • Scandinavian nations have large welfare states, but otherwise have very laissez-faire economic policies.
  • Nordic nations got rich when government was small, but growth has slowed since welfare states were imposed.

P.S. If you want even more socialism humor, click here, here, here, here, here, here, here, here, here, and here.

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It’s now a pattern. I’ll come across a soul-sapping story about terrible suffering caused by statism in Venezuela and I think the country has hit rock bottom. Such as back in September, when I read about people literally starving.

But then I will read another report about incredible misery and realize that the socialist regime is even worse than I thought. Such as back in December, when I read about economic deprivation ruining sex for the women of the country.

And then I find another horrifying example of how big government destroys lives and I’m forced to reconsider the definition of failure. Such as last month, when I read about criminal gangs using food to recruit children.

Despite this pattern, I’m going out on a limb and asserting that nothing possibly could be worse than this Washington Post story of Venezuelan parents giving up their children because they can’t afford to feed them.

In September, her mother left her at a subway station with a bag of clothes and a note begging someone to feed the child.  Poverty and hunger rates are soaring as Venezuela’s economic crisis leaves store shelves empty of food, medicine, diapers and baby formula. Some parents can no longer bear it. They are doing the unthinkable.  Giving up their children. …it was a challenge to actually meet the tiniest victims of this broken nation. My requests to enter orphanages run by the socialist government had gone unanswered. One child-protection official — warning of devastating conditions, including a lack of diapers — confided that such a visit would be “impossible.” …A child-welfare official in El Libertador — one of the capital’s poorest areas — called the situation at public orphanages and temporary-care centers “catastrophic.”  “We have grave problems here,” said the official, who spoke on the condition of anonymity out of fear of reprisals from the authoritarian government.

Fortunately, there are still some private facilities that help families.

But even though such institutions are run more efficiently and compassionately, it’s still a tragedy that they have to exist. And the stories the reporter uncovered are heartbreaking.

“I didn’t know what else to do,” said Angélica Pérez, a 32-year-old mother of three, near tears. …she showed up at Fundana with her 3-year-old son and her two daughters, ages 5 and 14. She lost her job… Her plan: leave the children at the center, where she knew they would be fed, so she could travel to neighboring Colombia to find work. She hoped she would eventually be able to take them back. Typically, children are allowed to stay at Fundana for six months to a year before being placed in foster care or put up for adoption. “You don’t know what it’s like to see your children go hungry,” Pérez told me. “You have no idea. I feel like I’m responsible, like I’ve failed them. But I’ve tried everything. There is no work, and they just keep getting thinner.

Here’s another incomprehensibly sad example.

For many Venezuelan families, hunger presents an excruciating choice.  I met Dayana Silgado, 28, as she entered Fundana’s new food center for parents in economic crisis. Silgado seemed drained. The shoulder blades on her thin frame protruded from her tank top. In November, she surrendered her two youngest children to Fundana after losing her job… At the center, she knew, they would get three meals a day. Fundana’s home for children did not accept older kids, so Silgado was still trying to feed her two eldest — ages 8 and 11 — at home. …After eating dinner, Silgado said, her children tell her, “Mom, I want more.” “But I don’t have more to give,” she said.

What a terrifying awful country.

Shame on Bernie Sanders. Shame on Joe Stiglitz. Shame on every leftist who offered support for the evil government of Venezuela.

Since we’re on the topic of that despotic regime, here are a few additional stories that are worth a mention.

We’ll start with a lesson about inflation.

Street vendors in Venezuela are weaving baskets from banknotes after 13,000 per cent inflation rendered them practically worthless. …Cash is worth so little there bank notes are often seen littered on the streets. …street seller Wilmer Rojas has found a use for them. …The 25-year-old is selling origami-style handbags, purses, hats and baskets – all made out of money. …Mr Rojas, a father-of-three, said: ‘People throw them away because they are no good to buy anything. …These things are no good for buying anything. At least I am putting them to good use rather than throwing them away.’ …Jose Leon, a 26-year-old designer, draws the faces of Star Wars characters over the image of Simon Bolivar and other famous Venezuelans pictured on the notes. Foreign customers pay him up to £14 ($20) for each piece of ‘money art’, which he said increases the note’s value by nearly 5,000 per cent.

Wow. I periodically gripe about the Federal Reserve, but I guess I should consider myself lucky.

Now let’s look at our next story. Rather than weave money, some Venezuelans have turned to crime.

When he set off at sunset from the town of La Grita in western Venezuela on his 900-km (560-mile) journey, Aguilar knew he was taking his life in his hands. With hunger widespread amid a fifth year of painful economic implosion under President Nicolas Maduro, Venezuela has seen a frightening surge in attacks on increasingly lawless roads. Just a few days earlier, Aguilar said he sat terrified when hundreds of looters swarmed a stationary convoy, overwhelming drivers by sheer numbers. They carted off milk, rice and sugar from other trucks but left his less-prized vegetables alone. “Every time I say goodbye to my family, I entrust myself to God and the Virgin,” said the 36-year-old trucker. …looting of cargoes on roads has soared in Venezuela in recent times and appears…directly linked to growing hunger and desperation among the population of 30 million. …“The hunger and despair are far worse than people realize, what we are seeing on the roads is just another manifestation of that. We’ve also been seeing people stealing and butchering animals in fields, attacking shops and blocking roads to protest their lack of food. It’s become extremely serious,” said ORC director Oswaldo Ramirez. …The dystopian attacks in a country with one of the world’s highest murder rates are pushing up transport and food costs in an already hyperinflationary environment, as well as stifling movement of goods in the crisis-hit OPEC nation.

Given these horrifying condition, is it any surprise that people are doing whatever they can to escape the socialist hellhole of Venezuela?

Thousands of desperate Venezuelans are trying to enter Colombia in a bid to escape the hunger and soaring crime rate caused by the spiralling economic crisis. Incredible pictures show the mass exodus of refugees crossing the Simon Bolivar international bridge trying to flee the political crisis threatening to engulf Venezuela. Colombia – along with its neighbour Brazil – has sent extra soldiers to patrol their porous border with the country after officially taking in more than half a million migrants over the last six months of 2017. …In a visit to a border city at the epicenter of Colombia’s mounting migration crisis, President Juan Manuel Santos on Thursday announced new measures that could make it more difficult for Venezuelan migrants to cross into the country illegally or remain there without any official status. ‘Colombia has never lived a situation like the one we are encountering today,’ Santos said. Migration into Colombia has surged as Venezuelan President Nicolas Maduro has moved to consolidate his rule and the nation’s economy plummets. Colombia migration authorities say there are an estimated 600,000 Venezuelans currently in Colombia – double the number six months ago.

I also know from my visits to Panama that the Venezuelan population has exploded there as well. And I wouldn’t be surprised if the same is true for other nations in Latin America as well.

In other words, this image may be humorous, but it’s also true.

P.S. To be fair, while Venezuela has an awful government, it does allow citizens to escape. So it’s not as bad as the despotic dictatorships of Cuba and North Korea. At least not yet.

P.P.S. Some leftists are disowning Venezuela. But only because it isn’t sufficiently socialist!

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In recent months, I’ve written two very lengthy columns about the deterioration of Venezuela’s evil government.

And I’ve also looked at long-run economic data to show how statism produces awful results for ordinary people.

But I sometimes think anecdotes are the most persuasive for the simple reason that ordinary people can relate. That’s why I shared last month the story about how the government has even made sex less pleasurable.

The Miami Herald has a story that underscores the horrible consequences of statism.

…on the streets, walking around with a bag of groceries can attract more thieves than a full wallet. The critical food shortages pummeling Venezuela have started to change the nature of crime in the country, at times increasing what some experts have started to call “hunger crimes” and at other times turning food into a valuable item to be taken by force. …The crisis has forced millions of Venezuelans to eat just once a day, and thousands of others to regularly search garbage cans in hopes of finding something to eat, according to recent surveys.

This is very grim, but it gets worse.

Not only are people committing crimes because of hunger, children are being recruited into gangs because that is the way to eat.

Venezuelan gangs are no longer recruiting youths in some poor areas by offering them easy money to buy clothes or the latest cell phones. Instead, they are offering food baskets. …Criminal gangs are also using food to recruit children and teenagers in Venezuela, a country with one of the world’s highest crime rates. …“The recruitment techniques, the bait that in the past used to be fashion or luxury goods, have been replaced by the offer of basic food items,” said the report, published this week. That’s how “crime gangs are gaining ground in conquering thousands of youths who are joining in the violence and whose destiny is death, prison and the frustration of so many dreams and hopes forged by their families and communities,” the report added.

As a parent, this is a horrifying story. Imagine not being able to feed your children and then watching getting lured into a life that almost certainly will not end well.

Utterly depressing. A very bad situation keeps getting worse.

The only good news is that leftists used to make excuses for Venezuela and now some of them are trying to disown that brutal regime.

P.S. In spite of the wretched state of the Venezuelan economy, some nutty leftists who put together a “Happy Planet Index” that ranked Venezuela above the United States. I still haven’t figured out whether that was crazier than the Jeffrey Sachs’ index that put Cuba above America.

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I wrote a lengthy column yesterday on the horrific situation in Venezuela.

As I thought about the suffering, especially among the poor, I wondered whether Bernie Sanders and Joe Stiglitz are still willing to defend that country’s barbaric government.

And I also contemplated whether there are any comments from Jeremy Corbyn, Sean Penn, Jesse Jackson, Michael Moore, and Noam Chomsky, who also carried water in the past for that despicable regime.

Would these people still defend Venezuelan statism? And if they did, what could they possibly say?

It’s not my job to give advice to Sanders, Stiglitz, et al, but they may want to borrow the strategy of the Socialist Party in the United Kingdom. Those folks are actually arguing that the real problem with Venezuela is that it’s not socialist enough.

I’m not joking.

Let’s look at some recent tweets.

To be fair, since there is still some degree of private ownership in the nation, the statism practiced in Venezuela is probably closer to fascism than pure socialism, so there was a tiny bit of merit to that tweet.

The U.K.’s socialists double down on this argument by claiming that true socialism only exists when there is collective ownership of the means of production.

That’s also a reasonable point. But on that basis, then it’s silly for anyone (like Bernie Sanders) to claim that places such as Denmark and Sweden are socialist.

Let’s take a look at one final tweet from Socialist Party on the other side of the Atlantic. What makes this one special is that they actually claim that North Korea is an example of capitalism.

This is utterly bizarre. Are they smoking crack? In North Korea, the government does own and control the means of production (factories, mines, railways, etc).

If you read the fine print on the last row, you’ll see that they define socialism to exist only in a make-believe world where there’s basically no state. Anarcho-socialism, or something like that.

If that’s how they want to redefine socialism, then I have no problem with it. If a bunch of people want to set up some sort of commune based on voluntary sharing of everything, that’s fine with me so long as they don’t try to force me to either pay for it or be part of it.

I’ll simply close by noting that the Pilgrims used that model when they first landed in America and many of them starved to death.

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