Thomas Sowell makes a compelling case for going beyond surface level platitudes and shibboleths being all that it takes to realize that socialism can’t possibly work and that all evidence of countries that have tried a planned and wealth confiscatory approach have all failed. After making the case through some examples and counterpoints to the Sanders’ socialist agenda, Sowell delivers my favorite quote from the article, “None of this is rocket science. But you do have to stop and think — and that is what too many of our schools and colleges are failing to teach their students to do.”
There is a great article in Forbes that essentially shows a tremendously concerning growth in support of Socialism, particularly within the 18-24 age group. The great challenge is that most of them can’t even define what socialism actually is. Thus, we have a gap in both understanding of the evils of state owned means of production (in other words, what socialism actually is) and a lack of understanding of what socialism actually means for society. So we either have people opposed to capitalism on its own merits or people that are fooled into supporting something that they don’t understand. I am not sure which is a bigger problem – hatred of what has made America great and freed millions from penury and big government control or outright ignorance of the term and underlying political philosophy.
A key statement by the author, David Davenport is below:
A November NYT/CBS poll found that only 16% of those under 30 could accurately define socialism, compared with 30% for respondents over 30. Even more to the point, when a Reason-Rupe survey in 2014, which again confirmed young people’s support for socialism at 58% for those ages 18-24, turned around and asked whether they favored government running businesses, the clear answer was “no.” When asked whether they want government or private markets leading the economy, they chose markets 2 to 1 (64% versus 32%).
I don’t know which is more discouraging: that young people are becoming comfortable with socialism, or that they have no idea what it is. Any definition of socialism involves government ownership of the means of production and distribution. It’s most assuredly not private ownership of business or a market economy. So for starters, young people have embraced some kind soft collectivism and mislabeled it as socialism. That’s bad enough.
In particular, I appreciate the Theorem he includes in the blog:
The best quote of the article is the conclusion after Mitchel chronicles the Venezuelan malaise:
The entire story is filled with heartbreaking stories of suffering families and maddening anecdotes about how unconstrained government has wrecked a potentially rich nation.
Which gives me a good reason to make the most important point of this article.
All the bad policies in Venezuela were imposed because politicians supposedly “cared” about ordinary people. That was the rationale for higher welfare payments, minimum wages, price controls, subsidies, and all sorts of other “compassionate” policies.
Which is why this chart comparing Venezuela, Argentina, and Chile is so powerful. Ordinary people did the best in the nation with a government that did the least.
The Sanders path to unicorns and rainbows can’t possibly be financed through taxes on Wall Street. In fact, that will barely make a dent in the trillions of dollars needed for single payer healthcare alone. The only way to get all of this “free” stuff is to heavily tax the middle class. So the question is, are you ready for this political revolution of 50% personal income taxes?
Economist Dan Mitchell has more details…
Given all of the momentum behind Bernie Sanders, fueled by what I heard one pundit call, “the children’s brigade of people supporting Sanders that have never had to watch thousands of dollars go out of their paychecks for taxes,” I created this post, in which I essentially copy and paste from one of my hidden away comments from within the About Me section.
My guiding principles on the appropriate order of society is that man should be free to do as much as they possibly can on their own without coercion of their fellow man. Freedom from coercion will inherently mean a small and limited government, which is the antithesis of what an avowed socialist such as Sanders advocates. It is not that I don’t like the idealism of a utopian state of all of us cooperating to build a just society, it is that I believe that empirical evidence of countries that have tried socialism have failed to deliver the utopia and have instead descended into quite the dystopia. The problem is that to have such a system, the ruling elites of a society change from one in which the invisible hand of the pricing system and the free market determine who is elite based upon individual skills and effort to one in which favors and status are doled out arbitrarily by a government elite. We can’t pretend that those entrenched with government power will suddenly become benevolent and all-wise benefactors. As William McGurn indicated in an op-ed in the Wall Street Journal, the unfortunate reality is that the end result of a socialist society is not idealistic cooperation, it is in fact collusion of a small governing elite and their attachments and hangers on. It is no accident that the richest woman in Venezuela is Hugo Chavez’s daughter. It is no accident that Brazil is dealing with corruption charges at all levels of government due to government officials abusing their power to milk bribes and embezzle money from the state-owned oil and gas company Petrobas.
It seems unquestionable at this point that in the last 8 years, the Democratic party has made a tremendous shift to the left, which is pulling Hillary Clinton leftward as well. Granted, much of Bernie’s recent success is in converse relation to Clinton’s inherent weaknesses in campaigning, trustworthiness, and likability, but it is still clear that voters are driving the party in a leftward lurch. This is perhaps a natural outcome of 8 years of anemic economic growth and a drumbeat of income inequality. I would submit that the income inequality seems to have been greatly aided and driven by conscious decisions by the federal reserve (by extension, government) to fuel asset prices through quantitative easing that props up asset prices owned mostly by the ultra wealthy and pins down meager saving rates largely owned by the middle class on down. We have thus ignored and swept away the hard fiscal and government reform that would actually unshackle the economy and tried to take the easy but much less effective path of monetary policy manipulation that also is much more prone to fueling asset price increases to the benefit of the rich and inflates the probabilities of a bust cycle requiring more bailouts that benefit the wealthy in the future. The clarion call warning is that if you haven’t been able to trust the angels that run government before to structure your life and make it all better before, why would you hand them the keys to even more power and control over your lives? Take some time to view the outcomes of socialist governments in the past and whether they delivered the utopia that is being proclaimed today. You will find that 100% of the time, they failed to live up to their ideals and instead descended into a different and less accountable elite-controlled society with sclerotic growth and a much more income stratified society that becomes much less fluid and changeable.