Socialism: Economic Cancer
One of the most baffling things I find is the idea that Socialism is a logical Economic choice.
Socialism is a subject that receives a lot of praise and scrutiny from all sides of the political spectrum. It’s no secret, the younger generations favor Socialism, but do they truly know what it is and why it inevitably leads to economic collapse?
Needless to say, many people who claim to favor Socialism are naive to what it truly entails.
Breaking Down Social Policy
Although socialism comes in various forms, they all hold the mutual trait of communal ownership. Most forms of Socialism claim the means of production, distribution, and exchange are a public matter and value is created through the labor used to produce goods. Many early interpretations abolished a monetary system and goods were distributed via a central entity, usually a central government. This posed as an obstacle when conducting more complex forms of trade because it lacked the proper accounting system. Due to the hurdles early systems of socialism encountered, new forms of social theory were born, more notably Market Socialism.
When people think of socialism, they usually think of market socialism because it’s typically favored by modern social states. The most notable difference between early and market socialism lies within the utilization of a market system which distributes goods and determines the means of production. Since goods and services are exchanged on an open, but restrictive market, there becomes a need for a currency.
An example of a modern state which uses a market socialist economic system would be China. Many people misunderstand certain factors when it comes to the comparison of capitalism and market socialism. People tend to believe that since China has many large corporations, its more closely related to capitalism, but this couldn't be further from the truth.
Key differences between market socialism and capitalist economies lie within the process used to reach economic equilibrium. Capitalist economies use a free market based distribution system which is protected against most government intervention; where as social states manipulate the market by controlling corporate management, intervening on distribution, and much more. Other notable differences include profit distribution between employees. Capitalist societies use a supply and demand structure and wages are determined by a mutual agreement between two parties where as social states typically use price controls at a predetermined price. Due to price controls, innovation inevitably suffers. This is a major flaw because people tend to have less incentive to branch out into entrepreneurship. An example of a socialist community with price controls, predetermined wages and communal living quarters can be found when looking at Northern American Plantations. As John C. Calhoun, a pro-slavery Democrat once said:
Every plantation is a little community, with the master at its head, who concentrates in himself the united interests of capital and labor, of which he is the common representative. These small communities aggregated make the State in all, whose action, labor, and capital is equally represented and perfectly harmonized.
As you can see, centrist control of community hinders liberty in ways eerily similar to forms of slavery in the past.
Democratic Socialism: Do Not Drink the Kool-Aid.
One of the most popular, but misconstrued assumptions is “Democratic Socialism” is somehow different than “normal” Socialism. Unfortunately, this is a common fallacy we see and hear by people advocating for more socialist policy. People often argue this, yet cannot differentiate between forms of government, the systematic method used to elect its officials, or in Socialism’s case, a theory of economic principles built around a philosophical social belief system.
Democratic Socialism is pure Socialism, but not quite Communism.
People often assume Democratic Socialism is simply higher taxes for the rich and more social programs, but that couldn't be further than the truth. Democratic Socialism is said to have democratically elected officials and a socialist economy. This is tends to be a common recipe for disaster many Democratic socialists overlook.
The Transition: What Tends to get Overlooked.
The Electoral College (EC) is one of many systems of checks and balances that lie intertwined within the US Constitution. Many self-proclaimed Democratic socialists want to abolish electoral votes, claiming its unjust.
If we abolished the EC, it would allow states with large cities to control every election and the government in general. This would inevitably lead to centralization, more corruption, and ultimately a one-party system.
For those who are not aware, both the former Soviet Union and China have more than one political party, but in reality, one party controls every aspect of life. Once the transition into a one party system happens, if you do not conform to the party, you are shunned from society.
The Collapse: Why Socialist Economies Inevitably Fail.
We often hear the argument claiming that true socialism hasn't been tried and that past examples do not properly reflect “true socialism”. This is not only naive, but ignorant. Countless times socialism has collapsed entire economies and forced citizens into extreme poverty. The fundamental reason for such a high turnover rate will be found in every form of socialism.
Socialism is almost guaranteed to fail for a few reasons. The father of socialism, Karl Marx predicted the failure of capitalism which, according to him would lead to socialism. Fortunately, he couldn't be further from the truth. We hear the term “late stage capitalism” echoed by advocates of socialism, but the very definition of the term can easily be proven a fallacy.
Late stage capitalism was coined by Marxists who claim that capitalism has no room to grow, wages are stagnant, and workers become increasingly miserable. Another theory states innovation is limited because massive corporations have already cornered the market. As we can see, that prediction did not come true and in fact, Marx’s prediction was the opposite of the true outcome. The middle class is actually diminishing, but they are becoming more wealthy.
A massive flaw resides in the theory if late capitalism, which fails to acknowledge emerging market sectors, innovative discoveries, new technology, and much more. The failure to account for this variable is drastic because all of them provide new opportunities to capitalize thus, in turn create more jobs and stimulates the economy.
When breaking down socialist states, they may have differences which are reflected publicly, but they all share the same qualities which inevitably lead to failure. Centralization in government not only is prone to economic recessions, but hinders human nature. The authoritative suppression of citizens under a centralized government destroys innovation, removes natural incentives to succeed, and limits both economic growth, but spiritual growth as well.