Posts Tagged ‘Statism’

Whenever I need to explain the difference between socialism and capitalism, I start by noting that socialism technically is different from Obama-style big-government redistributionism and cronyism.

Socialism involves something more pervasive, involving government ownership of the means of production (which, if you read this postscript, is why Jeremy Corbyn in the United Kingdom is far more radical than previous Labour Party leaders).

It also means eviscerating the competitive price system as a means of determining value and allocating resources, relying instead on politicians and bureaucrats to arbitrarily wield that power (some American politicians favor this latter approach in certain circumstances).

Needless to say, socialism has an unmatched track record of failure. It was such a disaster than only a few supposedly high-ranked academics (see this postscript) thought it worked.

But what about high-ranked communists who grew up under socialism. Did they think it worked?

The Houston Chronicle dug into its archives to produce a story about an incident that may have played a big role in history. It’s about a senior communist functionary who was exposed to a slice of capitalism.

Yeltsin visited mission control and a mock-up of a space station. According to Houston Chronicle reporter Stefanie Asin, it wasn’t all the screens, dials, and wonder at NASA that blew up his skirt, it was the unscheduled trip inside a nearby Randall’s location. Yeltsin, then 58, “roamed the aisles of Randall’s nodding his head in amazement,” wrote Asin. He told his fellow Russians in his entourage that if their people, who often must wait in line for most goods, saw the conditions of U.S. supermarkets, “there would be a revolution.” …In the Chronicle photos, you can see him marveling at the produce section, the fresh fish market, and the checkout counter. He looked especially excited about frozen pudding pops. “Even the Politburo doesn’t have this choice. Not even Mr. Gorbachev,” he said.

This random trip to a typical supermarket may have changed history.

About a year after the Russian leader left office, a Yeltsin biographer later wrote that on the plane ride to Yeltsin’s next destination, Miami, he was despondent. He couldn’t stop thinking about the plentiful food at the grocery store and what his countrymen had to subsist on in Russia. In Yeltsin’s own autobiography, he wrote about the experience at Randall’s, which shattered his view of communism, according to pundits. Two years later, he left the Communist Party and began making reforms to turn the economic tide in Russia. …“When I saw those shelves crammed with hundreds, thousands of cans, cartons and goods of every possible sort, for the first time I felt quite frankly sick with despair for the Soviet people,” Yeltsin wrote. “That such a potentially super-rich country as ours has been brought to a state of such poverty! It is terrible to think of it.”

Since the Soviet Union was mired in poverty at the time, Yeltsin presumably was speculating about the potential wealth of his country.

And the good news is that the rigid communism of the Soviet Union is gone. Heck, the Soviet Union doesn’t even exist. Reagan was right when he predicted  the triumph of freedom, with Marxism being relegated to the “ash heap of history.”

But the bad news is that Russia (the most prominent of the 15 nations to emerge after the crackup of the Soviet Union) is a laggard on economic reform. There was a shift away from close-to-pure communism in the 1990s, to be sure, but the country still has a long way to go before it can be considered capitalist.

Here’s a back-of-the-envelope “statism spectrum” that I created. It’s designed to show that there are no pure libertarian paradises, not even Hong Kong. And there are no pure statist dystopias, not even North Korea (though that despotic regime is as close to pure evil as exists in the world).

Russia, I’m guessing, would be somewhere between China and Mexico.

And this gives me a chance to close with an important point.

Perfect economic policy almost surely is an impossible goal. But that’s fine. We can still enjoy good growth so long as we strive to at least move in the right direction. As I explained back in 2012, the private sector is capable of producing impressive results so long as it has sufficient breathing room to operate.

P.S. If you want a simpler and more amusing explanation of different economic systems, here’s the famous “two cows” approach.

P.P.S. The United States isn’t a socialist nation, but we’re not fully immune to that destructive virus. After all, we have a government-run rail company in America, a government-run postal service, a government-run retirement system, and a government-run air traffic control system, all things that would function far more efficiently in the private sector.

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Two days ago, I contrasted the views of Pope Francis and Walter Williams about capitalism and morality.

I explained that Walter had the upper hand because free markets are a positive-sum game based on voluntary exchange while redistribution (at best) is a zero-sum game based on coercion.

That’s the theoretical argument. Now let’s look at the empirical data, specifically focusing on which approach is best for the less fortunate.

Thomas Sowell, the great economist at Stanford University’s Hoover Institution, is not impressed by the Pope’s analysis. Here some of what Prof. Sowell wrote for Investor’s Business Daily.

Pope Francis has created political controversy…by blaming capitalism for many of the problems of the poor. …putting aside religious or philosophical questions, we have more than two centuries of historical evidence… Any serious look at the history of human beings over the millennia shows that the species began in poverty. It is not poverty, but prosperity, that needs explaining. …which has a better track record of helping the less fortunate — fighting for a bigger slice of the economic pie, or producing a bigger pie? …the official poverty level in the U.S. is the upper middle class in Mexico. The much criticized market economy of the U.S. has done far more for the poor than the ideology of the left. Pope Francis’ own native Argentina was once among the leading economies of the world, before it was ruined by the kind of ideological notions he is now promoting around the world.

I briefly discussed the failure of the Peronist Argentinian model last month, but let’s take a closer look at Professor Sowell’s assertions about the U.S. and Argentina.

My colleague at the Cato Institute, Marian Tupy, has put together a great fact-filled website called Human Progress, and it allows users to access all sorts of databases to produce their own charts and tables.

And here’s what the data shows about per-capita economic output in Argentina and the United States.

Not exactly a ringing endorsement of the supposedly more compassionate system in Argentina.

As you can see from this table, Argentina actually was slightly richer than the U.S. back in 1896. But that nation’s shift to statism, particularly after World War II, hindered Argentina’s growth rates.

And seemingly modest differences in growth, compounded over decades, have a huge impact on living standards for ordinary people (i.e., inflation-adjusted GDP per person climbing nearly $27,000 in the U.S. vs an increase of less than $6,700 in Argentina).

By the way, this is not an endorsement of America’s economic policy. We have far too much statism in the United States.

But compared to Argentina, which generally has ranked in the bottom quartile for economic freedom, the United States has a more market-friendly track record.

To help make the bigger point about the importance of economic liberty, let’s now compare the United States with a jurisdiction that consistently has been ranked as the world’s freest economy.

Look at changes in economic output in America and Hong Kong from 1950 to the present. As you can see, Hong Kong started the period as a very poor jurisdiction, with per-capita output only about one-fourth of American levels.

But thanks to better policy, which led to faster growth compounding over several decades, Hong Kong has now caught up to the United States.

What’s most remarkable, if you look at the table, is that per-capita output over the past 65 years has soared by more than 1,275 percent in Hong Kong.

Needless to say, if the U.S. is out-performing Argentina and Hong Kong is out-performing the U.S., then a comparison of Hong Kong and Argentina would yield ever starker results.

I actually did something like that back in 2011 and the results further underscore that there’s a very powerful relationship between economic policy and economic performance.

Which brings us back to the fundamental issue of what system is best for the less fortunate in society?

I suppose that’s a judgement call, but poor people obviously have higher incomes and more opportunity when there’s strong economic growth.

But as Margaret Thatcher famously explained, some people are so consumed by disdain for success that they’re willing to accept more suffering for poor people if they can simultaneously lower the incomes of rich people.

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In a perverse way, I admire leftists who openly express their desire for bigger government and less liberty.

That’s why I (sort of) applauded when Matthew Yglesias wrote in favor of confiscatory tax rates while admitting the government wouldn’t generate any revenue.

And I gave Katrina vanden Heuvel credit for openly admitting her desire to redefine “freedom” so that it means a claim on other people’s income and property.

Both are proposing horrible policy, of course, but at least they’re honest about their goals and motivations. Unlike politicians, they’re not trying to disguise their intentions behind poll-tested platitudes.

We can now add another person to our list of honest leftists. The new leader of the Labour Party in the United Kingdom, Jeremy Corbyn, is a British version of Bernie Sanders, except he really is a socialist who believes in government ownership and control of business. And the chief economic adviser to Corbyn is Richard Murphy.

And, as reported by the U.K.-based Sun, Mr. Murphy openly says everyone’s income belongs to government.

Chartered accountant Richard Murphy, 57, is the brains behind the “Corbynomics” strategy of renationalisation, higher taxes and printing millions of pounds in “new” money. …his bizarre ideas have already sparked fears among Britain’s top economic experts… One of Murphy’s strategies was revealed in August 2014… The dad-of-two claimed taxpayers’ money was NOT their own – and was instead the state’s “rightful property”. Murphy said: “I would suggest that we don’t as such pay taxes. The funds that they represent are, I suggest, in fact the property of the state.”

To be fair, sometimes people mangle their words. To cite one hypothetical example, accidentally omitting a  word like “not” might totally change the meaning of a sentence and give a journalist an opportunity to make a speaker look foolish.

So maybe Mr. Murphy didn’t really mean to say that the government has first claim on everyone’s income.

But if you continue reading, it becomes apparent that he really does believe that government is daddy and the rest of us are children who may be lucky enough to get some allowance.

“…if we give the state the power to define what we can own, how we can own it and, to a very large degree, what we can do with it – and we do – then I would argue that we also give the state the right to say that some part of what we earn or own is actually its rightful property and that we have no choice but pay that tax owed as the quid pro quo of the benefit we enjoy from living in community. Murphy went on: “Well let me inform you that there is no such thing as ‘taxpayers’ money’: it is the government’s money to do what it will with in accordance with the mandate it has been given and for which it will have to account.

Wow, this truly gives us a window into the soul of statism.

Though let’s be fair to Murphy. He’s simply stating that untrammeled majoritarianism is a moral basis for public policy, even if it means 51 percent of the population ravages 49 percent of the population. And that’s an accurate description of how economic policy works in the United States ever since the Supreme Court decided to toss out the Constitution’s limits on the power of the federal government.

Moreover, Murphy’s view is basically reflected in the “tax expenditure” concept used in Washington and the “state aid” concept in the European Union.

None of this justifies Murphy’s poisonous ideology. Instead, I’m simply making the grim point that statists already have achieved some of their goals.

But maybe it will be easier to counter further attacks on economic liberty now that Murphy has openly said what his side wants.

P.S. There are two types of honest leftists. Richard Murphy, like Matt Yglesias and Katrina vanden Heuvel, are honest in that they openly state what they really believe, even when it exposes their radical agenda.

Some other folks on the left have a better type of honesty. They’re willing to admit when there is a contradiction between statist ideology and real-world results. Just look at what Justin Cronin and Jeffrey Goldberg wrote about gun control and what Nicholas Kristof wrote about government-created dependency.

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Almost everyone in Washington is talking about last night’s GOP debate. I sent out a few tweets as I watched, and my main after-the-fact observation is that there was very little discussion about the ever-growing burden of government spending, which is America’s most pressing economic problem.

But I’m a contrarian, so while everyone else is talking about Republicans, I’m going to focus instead on the Democratic side and address the fiscal agenda of Bernie Sanders.

The Vermont Senator has a voting record is almost identical to the scores received by Barack Obama and Hillary Clinton when they were in the Senate, so one might wonder whether there’s a rationale for his candidacy.

But Sanders is tapping into a desire on the part of many Democratic voters who want a candidate who openly and proudly advocates for big government.

And even if neither they nor Sanders actually know the technical distinction between socialism and traditional American-style leftism, there’s an appreciation for the fact that he actually says what he believes.

And he definitely believes that Washington knows best on the issue of spending money.

Writing for the Wall Street Journal, Laura Meckler reports on the price tag for Bernie Sanders’ agenda. It’s a big number, even by Washington standards.

Sen. Bernie Sanders…is proposing an array of new programs that would amount to the largest peacetime expansion of government in modern American history. …he backs at least $18 trillion in new spending over a decade… His agenda includes an estimated $15 trillion for a government-run health-care program that covers every American, plus large sums to rebuild roads and bridges, expand Social Security and make tuition free at public colleges. To pay for it, Mr. Sanders, a Vermont independent running for the Democratic nomination, has so far detailed tax increases that could bring in as much as $6.5 trillion over 10 years, according to his staff. A campaign aide said additional tax proposals would be offered to offset the cost of some, and possibly all, of his health program.

Here’s the breakdown of all the new spending.

The WSJ story also measures the degree to which the Sanders agenda would expand the burden of government spending.

…his agenda articulates the goals of many liberals and is exerting a leftward pressure on the party’s 2016 field. The Sanders program amounts to increasing total federal spending by about one-third—to a projected $68 trillion or so over 10 years. For many years, government spending has equaled about 20% of gross domestic product annually; his proposals would increase that to about 30% in their first year. As a share of the economy, that would represent a bigger increase in government spending than the New Deal or Great Society.

That’s good information, but keep in mind that the burden of government spending already is projected to climb substantially even without all of the new boondoggles being proposed by Sen. Sanders.

So what the Vermont Senator is really advocating is racing even faster in the direction of Greece.

And that means pressure for additional tax hikes. So the bad ideas being proposed by Sanders will just be the beginning.

If the big spenders succeed, we can also expect proposals for an energy tax, a value-added tax, a wealth tax, and a financial transactions tax.

Just in case you think I’m being unfair to Sanders, let’s now cite someone who argues that the $18 trillion figure is needlessly scary because all that’s really happening is that certain activities will be shifted from the private sector to government.

Here are some excerpts from a column in the Washington Post by Paul Waldman.

…while Sanders does want to spend significant amounts of money, almost all of it is on things we’re already paying for; he just wants to change how we pay for them. In some ways it’s by spreading out a cost currently borne by a limited number of people to all taxpayers. …we shouldn’t treat his proposals as though they’re going to cost us $18 trillion on top of what we’re already paying.

He cites a hypothetical example.

If I told you I could cut your health insurance premiums by $1,000 and increase your taxes by $1,000, you wouldn’t have lost $1,000. You’d be in the same place you are now.

In other words, notwithstanding my title, Waldman is saying that Sanders won’t be expensive to your wallet because he’s simply putting the government in charge of paying for certain things that are now privately financed.

That’s actually a (somewhat) fair point, but it overlooks two big issues.

First, there will a lot more redistribution and class-warfare taxation if Sen. Sanders is able to impose his agenda. So the people who are being fleeced today by the IRS will be subject to additional demands to cough up money.

In other words, Sen. Sanders’ plan is a threat to the wallets of the people who actually pay for government.

Second, bigger government will have negative effects even if we limit the analysis to folks who theoretically are held harmless (like Waldman’s example of a person paying $1,000 more in taxes but paying $1,000 less in health premiums).

That’s because people’s willingness to work is driven in part by a desire to purchase certain things, such as health care and/or health insurance. As illustrated by this cartoon parody, that incentive would be eroded if Sanders’ agenda is adopted and folks can get freebies from Uncle Sam.

And people’s willingness to work also is impacted by marginal tax rates. So they’ll have less incentive to engage in productive behavior because of all the tax hikes needed to finance the new spending proposed by Sanders.

Moreover, keep in mind that governments don’t use resources as efficiently as the private sector. That means more waste and less growth.

You don’t have to take my word for it. Even research from establishment organizations like the European Central Bank find that smaller governments are more efficient. And the normally left-leaning World Bank even acknowledged that the evidence is strong about bigger governments harming growth.

Let’s close with a political cartoon that showed up in my inbox. I have no idea if the cartoonist is trying to make fun of Republicans or make fun of Bernie Sanders, but he cleverly shows that Sanders embraces a term that others consider a slur.

If you want some political humor that is clearly anti-Sanders, you can click here for two funny images.

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At the risk of stereotyping, the Chinese people are remarkably productive when given the chance. Hong Kong and Singapore are dominated by ethnic Chinese, and those jurisdictions routinely rank among the world’s top economies.

Taiwan is another high-performing economy with an ethnic Chinese population.

Ironically, the only place where Chinese people don’t enjoy high average incomes is China. And that’s because there’s too much statism. If you peruse the indispensable Economic Freedom of the World from Canada’s Fraser Institute, you’ll see that China is ranked #115 out of 152 jurisdictions, which is even below nations such as Greece, Haiti, and Vietnam.

As I explain in this interview, China’s politicians are undermining prosperity with a system based on cronyism rather than capitalism.

China’s in the news, of course, because of recent instability in its financial markets. And I’ve taken advantage of the opportunity to give my two cents on this issue (see here and here).

But I was making the same criticisms even when China’s economy was perceived as a big success. I wrote in 2010 that America didn’t need to fear the supposed Chinese economic tiger. I pointed out in 2011 that China was way behind the United States.

And I was at least somewhat prescient when I warned about a bubble in the Chinese economy in this 2011 debate.

Though plenty of folks on the left actually argued that China’s state-controlled economy was something to mimic. Writing for Reason, Ronald Bailey cites some of their silly statements.

As the world watches China’s Communist Party leaders try to order markets around, my mind turned to those pundits who earnestly recommended that the United States emulate the brilliant beneficient Chinese planners in running our economy. The most fulsome China booster was New York Times columnist Tom Friedman. …So enamored of China’s industrial policy was Friedman that in 2010 he likened Chinese economic planning boldness to making “moon-shots.” …And then there is the inevitable Robert Reich. Reich, who is a former Clinton Secretary of Labor, has never been right about anything when it comes to economic policy prescriptions. For example, Reich was convinced in the 1980s the Japan would bury the United States due to the planning acumen of that country’s savvy bureaucrats. …Just shy of 30 years later Reich sang the same stale tune in 2011, only instead of Japanese planners, he was praising the wonders of Chinese industrial planning… As late as 2012, Richard D’Aveni, a Professor of Strategy at Tuck School of Business at Dartmouth College, declared in The Atlantic that “The U.S. Must Learn From China’s State Capitalism to Beat It.”

Actually, Professor D’Aveni is right for the wrong reason. We can learn a lot from statist economies. But we should learn what to avoid, not what to copy.

To conclude, this post shouldn’t be perceived as being anti-China. I want there to be more prosperity in that country, which is why I defended China from an absurd attack by the IMF.

Moreover, I commend China for reforms that move policy in the right direction. And as I pointed out in the interview embedded above, China’s reforms in the 1980s and 1990s may have been limited, but they did help lift hundreds of millions of people out of abject poverty.

Since I mentioned the interview, one of the quirky parts of the discussion was whether politicians should be held criminally responsible for economic mismanagement. Here’s what I wrote a few years ago about an example of that happening in Iceland.

P.S. You probably didn’t realize that it was possible to see dark humor in communist oppression.

P.P.S. But at least some communists in China seem to understand that the welfare state is a very bad idea.

P.P.P.S. Some business leaders say China is now more business-friendly than the United States. That’s probably not good news for America, but my goal is to have a market-friendly nation, not a business-friendly nation.

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Bernie Sanders, Vermont’s pseudo-socialist senator, thinks that America can learn from Europe.

He’s right.

But he’s also wrong. That’s because he thinks that Europe is a role model to emulate rather than a warning signal of mistakes to avoid. Needless to say, that’s borderline crazy.

Heck, even President Obama has pointed out that the United States out-performs our European counterparts.

In his Washington Post column, Robert Samuelson warns that it would be a mistake to follow the European model of more taxes and additional regulation. He starts with (what should be) an obvious point about businesses responding to incentives.

We can learn from Europe about job creation, but many Americans may reject the underlying lesson. It is: If you price labor too high — pay workers more than they produce — businesses will slow or stop hiring.

He then points out that bad incentives in Europe are leading to bad results.

Europe’s economy is in the doldrums. Growth in the eurozone (the 19 countries using the euro) is weak… Eurozone unemployment is 11.1 percent, barely down from the peak of about 12 percent. This contrasts with the United States, where the jobless rate has dropped from 10 percent in October 2009 to 5.3 percent now.

And what exactly are the bad incentives in Europe?

Simply stated, governments are imposing too many burdens on the economy’s productive sector.

In a fascinating article in the latest “Journal of Economic Perspectives,” economist Christian Thimann — a former top adviser at the European Central Bank and now at the French investment bank AXA — argues that Europe’s debt crisis and the weak recovery both stem from high wage and compensation costs. “Jobs fail to be created in a number of [eurozone] countries not because of a ‘lack of demand’ as often claimed,” Thimann writes,” but mainly because wage costs are high relative to productivity, social insurance and tax burdens are heavy, and the business environment is excessively burdensome.”

Which brings us back to the point Samuelson made earlier.

If the costs of new workers exceed the likely benefits in higher sales and profits, companies will hire less or not at all.

And just in case the implications aren’t obvious, he spells it out.

…we should not ignore the implications for the United States. …it’s tempting to load the costs of social policies onto business. …The Affordable Care Act (aka Obamacare) requires firms to provide health insurance for workers; a $15 minimum wage would raise labor costs sharply for many firms; and there are proposals mandating paid maternity and sick leave. All these seem worthy causes, but we need to be alert to unintended consequences. If we make hiring too expensive, there will be less hiring.

Amen. As I’ve already noted, businesses aren’t charities. They won’t hire new workers if that means lower profits!

But Europe has a lot of these policies, so unemployment is higher. And we have politicians in America who want to copy Europe’s mistakes.

The problem is not just that politicians are making it more expensive to hire workers. Bad government policy also is making it more expensive to do almost anything.

The U.K.-based Telegraph has a story looking at how some European governments are making other business activities needlessly costly and difficult.

…doing business in Portugal, Ireland, Italy, Greece and Spain is more difficult, expensive and slower than in stronger, neighbouring countries. …Looking at the average time it takes to get construction permits, electricity connected, contracts enforced and goods exported shows the disparity.

This chart shows that the problem is especially acute in Southern Europe.

Let’s close by making a very important point about differences within Europe. While it’s sometimes useful and interesting to look at big-picture comparisons (such as average unemployment in the EU vs US or average income in the EU vs US), it’s also important to realize that European nations (notwithstanding pressures for harmonization, centralization, and bureaucratization from the European Commission) still have considerable leeway to determine their own economic policies.

And if you peruse Economic Freedom of the World, you’ll see that Northern European nations such as Finland (#10), Denmark (#19), Germany (#28), and the Netherlands (#34) are all considered market-friendly, while Southern European countries such as Spain (#51), France (#58), Italy (#79), and Greece (#84) are much lower in the rankings.

The Nordic nations are especially interesting. They have large welfare states, but they have very pro-market policies in other areas. So to elaborate on what Senator Sanders asserted, we actually could learn some good lessons from Scandinavian nations in areas other than fiscal policy.

P.S. Since we picked on Bernie Sanders already, let’s create some balance by also mocking Hillary Clinton.

Here’s a clever satirical video about her email scandal.

And if that doesn’t satisfy your craving, click here for more Hillary humor.

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What’s the greatest economic tragedy in modern history?

The obvious answer is communism, which produced tens of millions of needless deaths and untold misery for ordinary people. Just compare living standards in North Korea and South Korea, or Chile and Cuba.

But if there was a second-place prize for the world’s biggest economic failure, Argentina would be a strong contender.

Here’s one fact that tells you everything you need to know. In 1946, when Juan Perón came to power, Argentina was one of the 10-richest nations in the world. Economic policy certainly wasn’t perfect, but government wasn’t overly large are markets generally were allowed to function. Combined with an abundance of natural resources, that enabled considerable prosperity.

But Perón decided to conduct an experiment in statism.

Here’s how Wikipedia describes his economic policy.

Campaigning among workers with promises of land, higher wages, and social security, he won a decisive victory in the 1946 presidential elections. Under Perón, the number of unionized workers expanded as he helped to establish the powerful General Confederation of Labor. Perón turned Argentina into a corporatist country in which powerful organized interest groups negotiated for positions and resources. …The state’s role in the economy increased, reflected in the increase in state-owned property, interventionism (including control of rents and prices) and higher levels of public inversion, mainly financed by the inflationary tax. The expansive macroeconomic policy, which aimed at the redistribution of wealth and the increase of spending to finance populist policies, led to inflation. …Perón erected a system of almost complete protection against imports, largely cutting off Argentina from the international market. In 1947, he announced his first Five-Year Plan based on growth of nationalized industries.

So were these policies successful?

Not exactly. In an article published last year, The Economist wrote about Argentina’s sad decline.

…its standing as one of the world’s most vibrant economies is a distant memory… Its income per head is now 43% of those same 16 rich economies… After the second world war, when the rich world began its slow return to free trade with the negotiation of the General Agreement on Tariffs and Trade in 1947, Argentina had become a more closed economy—and it kept moving in that direction under Perón. An institution to control foreign trade was created in 1946; an existing policy of import substitution deepened; the share of trade as a percentage of GDP continued to fall. …As the urban, working-class population swelled, so did the constituency susceptible to Perón’s promise to support industry and strengthen workers’ rights. There have been periods of liberalisation since, but interventionism retains its allure.

The bottom line is that Perón was a disaster for his nation. Not only did he sabotage Argentina’s economy, he also apparently undermined the social capital of the country by somehow convincing a big chunk of the population that “Peronism” is an alluring economic philosophy.

Sadly, Pope Francis appears to be one of those people.

Here are some excerpts from a column in the New York Times.

The Economist recently called Francis “the Peronist Pope,” referring to his known sympathies for Argentina’s three-time president, Juan Perón. In the 1940s and ’50s, the populist general upended Argentina’s class structure by championing the country’s downtrodden. …“Neither Marxists nor Capitalists. Peronists!” was the chant of Perón’s supporters. And it was borrowing from the church’s political thinking that enabled Perón to found his “Third Way.” …It comes naturally, then, to Francis, who became a priest in Argentina’s politically engaged church hierarchy, to adopt a populist political tone… He speaks directly to the region’s poor with a fire found in the “liberation theology” that inspired South America’s leftist revolutionaries of the 1970s. …“If you were to read one of the sermons of the first fathers of the church, from the second or third centuries, about how you should treat the poor, you’d say it was Maoist or Trotskyist,” he said in 2010, when he was archbishop of Buenos Aires.

Pope Francis’ infatuation with statism is very unfortunate for a couple of reasons.

The obvious reason is that he is in a position of influence and he’s using that power to promote policies that will reduce prosperity. And poor people will be the biggest victims, as I explained in this BBC interview.

But there’s another problem with the Pope’s approach. Being charitable to the poor is supposed to be an act of free will, not the result of government coercion. Yet by making statements that – at the very least – are interpreted as supportive of a bigger welfare state, he’s taking free will out of the equation.

Libertarian Jesus” would not approve.

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