Socialism Always Ends In Disaster

Authored by Virgina Fidler via GoldTelegraph.com,

In 1998, the fall of the Berlin fall drove the final nail through the vast socialist Soviet empire. Socialist countries such as Venezuela, North Korea, and Cuba aren’t even hanging on by a thread any longer. And the socialist giant, China, has developed a market economy. Around the world, socialist countries have fallen like dominos.

So why has socialism become the new political chic? Popular senator and former presidential candidate Bernie Sanders and his millennial admirers have become vocal proponents of a political system that has historically been an absolute failure. Stalin, Mao, and all others were mere poseurs who didn’t understand the real tenets of socialism. Many of today’s millennials look forward to the delivery of these idyllic promises. They may be waiting a very long time.

The problem with socialism is not that it’s been misunderstood. It has been understood all too well. It was the Soviet Union who first initiated the economic principles proposed by Karl Marx. The idea was that state ownership of the means of production would alleviate the so-called unfairness of an exploitative market economy and provide equally for everyone. This equitable distribution of wealth would be guaranteed by a dictatorship of the proletariat. To finance this economic idyll, socialism would use the surpluses available under still-existing capitalist regimes. That was Marx’s plan. No one asked why it was only capitalist countries that had this marvelous surplus and why it would take a dictatorship to assure its benevolent and equitable distribution.

Following Lenin, Stalin had the state-planned scientific system of socialism in working order. The Politburo was handing down quotas to the country’s farms, factories, and plants, demanding that the production quotas be filled.

Many individuals fell for the myth of socialism, which became increasingly popular during the 1930s.

The first reality checks were conducted by two Austrian economists, F. A. Hayek and Ludwig von Mises. They rightly pointed out that the complexities of a modern economy and the variables of market forces could not be planned and predicted by a group of appointed technocrats.

Hayek and von Mises were proven correct as, throughout the 1940s and 1950s, the Soviet Union encountered failure after failure. By then, Russian’s inability to feed its own citizens resulted in unprecedented famine.

Over 1 million people starved to death. By this time, the Politburo became more removed from the specifics of production. Plans were changed and re-changed. Production was no longer the goal. Following some predesigned plan was all that mattered. To meet their quota, shoe manufacturers were designing shoes in one size and one color. Normal supply and demand no longer fit into the socialist equation.

The planners no longer pretended to be able to please everyone – or even anyone. They simply took the previous year’s failed plan, made some minor adjustments, and delivered it as the new and improved current year’s plan. New ideas or innovations became a detriment to the goal of central planning.

No company had to worry about losses or bankruptcy because the central planners at the Politburo were there to bail them out. The primary responsibility of the Soviet Union’s central bank at the time, was to bail out failed companies. Failure, not success, was built into the Soviet Union’s annual production plans.

The failure of the Soviet Union is that socialism has its roots in failure. It is designed to fail. The great Soviet experiment turned into the Big Lie. It promised prosperity and delivered misery. It guaranteed a livelihood and oversaw the famine death of millions. The only promise socialism has kept is that it has brought about equality – an equal amount of despair to all who encounter it. Except, of course, the “dictators” in charge of planning. Somehow, they remained unaffected by the concept of equality.

Like any Ponzi scheme, socialism provides an initial illusion of success before it collapses on its own faulty principles. It’s that brief illusion that can make socialism so seductive to many who feel they are missing out on life’s abundance. Equality seems like a nice step up. The problem was very simply summarized by former British Prime Minister Margaret Thatcher: “Sooner or later, you run out of other people’s money.”

The very essence of capitalism is creation and initiative. The market provides incentives for companies and individuals to embrace both. The market determines prices and products. Losses must be accounted for, and private property must be respected.

Under socialism, incentives for success, if they exist at all, take a back seat to adherence to a preset plan. There are no incentives to work to make the plan a success. Losses do not matter, and private property does not exist. It does provide the security of equality as it does away with personal freedom. That’s the temptation of socialism, even though it has proven to be a failure throughout its history. Those advocating socialism hope to share in the riches of those above them. What they invariably forget are the masses below them eagerly grasping at their own meager share of the pie.

If the world is to experience another renaissance, it will come through capitalism.

For those who forget the basic flaws inherent in socialism, Venezuela provides a graphic reminder. It was once the fourth-wealthiest country in the world. Now, people are starving to death due to lack of food. It still has one of the world’s largest oil reserves, but it lacks toilet paper.

Venezuela’s socialist experiment began in 1999 with then-president Chavez, who nationalized industries and overspent on social programs. Chavez and his successor Maduro racked up unprecedented national debts it probably will never be able to repay. The country is being flung into a downward spiral of hyperinflation and out-of-control debt. The people suffer misery equally, while President Maduro and his fellow autocrats enjoy the remaining spoils. What will happen to the autocrats when everything has been looted and there is nothing left? Maduro no longer makes any pretenses at democratic rule as he erodes basic rights and silences opposition and the free press.

Venezuela is the latest failure in socialism. Will American millennials and eager advocates of a socialist regime learn a lesson? It remains to be seen. But if they have their way, who will be left?

Comments

gdpetti kralizec Thu, 04/12/2018 - 18:04 Permalink

You can always go further back, but it's the same club/crew/Satanists running the show, which is why nothing changes.. at least not for long... all the 'isms are theirs... socialism in Italy and Germany was replaced by the Fascists... here in the States it was taken over by the Capitalists who are always first in line for govt largesse, free money, handouts, tax writeoffs etc.. Ann Rynd didn't seem to understand how 'Fake' or 'Fixed' things are here in 'Purgatory'... which has its own course of instruction... learn and you 'wake up' and realize you need to choose sides.... stay or go... Plato's Cave analogy applies... some like it, some don't.

Our Founding Fathers warned about the central banks.. of which we are on #3.... perfect time for its lease to run out... as their fiat goes belly-up... but not them... just their OWO and all its 'tool's... the psychopaths, pedophiles, crooks and idiots..... in suits or uniforms to look official, respectable, etc.... all Fake... but seeing through this BS is the lesson... how can you choose sides, if you can't tell the difference between them? Truth doesn't make excuses... doesn't need to...

In reply to by kralizec

Manipuflation VWAndy Wed, 04/11/2018 - 23:37 Permalink

TYLERS, get rid of the of the oldest comment first default bullshit.  Go back to the way it was before.  How dumb can you be to not understand that those who might comment want to comment when there is an active audience who might reply?  It does no one any good if our posts are twelve hours apart and the reply post is buried.  If anyone had something to comment about it is immediately disregarded because no one reads past page one.  You are ruining your site by your "Be The First to Post" policy.

I will jack VWAndy's post and let's see where it ends up.  VWAndy and I get along fine so he will understand.  One post on the ass end of this thread and one on the first comment.  Don't give me some BS story about how this is better.  Veteran ZHer's hate this.  We are the ones who make you money.

In reply to by VWAndy

Manipuflation Miffed Microbi… Wed, 04/11/2018 - 23:37 Permalink

TYLERS, get rid of the of the oldest comment first default bullshit.  Go back to the way it was before.  How dumb can you be to not understand that those who might comment want to comment when there is an active audience who might reply?  It does no one any good if our posts are twelve hours apart and the reply post is buried.  If anyone had something to comment about it is immediately disregarded because no one reads past page one.  You are ruining your site by your "Be The First to Post" policy.

I will jack VWAndy's post and let's see where it ends up.  VWAndy and I get along fine so he will understand.  One post on the ass end of this thread and one on the first comment.  Don't give me some BS story about how this is better.  Veteran ZHer's hate this.  We are the ones who make you money.

In reply to by Miffed Microbi…

Manipuflation Miffed Microbi… Wed, 04/11/2018 - 23:44 Permalink

Hello Miffed.  I hope you are well.  I hope that you can support me in this little demonstration that I am attempting to make.  I have stories from today alone that I am not even going to waste the time to write about because it is all wasted at the bottom of some thread that no one will ever read.  Would you agree that the "First Post, First Green Arrow" approach has pretty much destroyed the overall content of ZH comments? 

In reply to by Miffed Microbi…

HillaryOdor HRH of Aquitaine 2.0 Wed, 04/11/2018 - 22:07 Permalink

Except in the land of the free it's illegal to do anything for work...

until you pay off your local, state, and federal terrorists for the privilege to work for money and get all the associated and completely unnecessary licences, certifications, taxes, and fees involved.   I would love to open a restaurant because I can cook.  The government makes it prohibitively expensive to do that.  It vastly increases the risk in the undertaking to the point where it isn't worth it, not to mention I can be sued out of business at any time if a worker decides I fired her because she was black, not because she showed up late every day and didn't really work.  I can just work for a guaranteed paycheck instead with much lower risk of the government destroying my livelihood. 

 

It really is a disgusting culture, and if it truly valued prosperity like it claims to then it would be at least making an effort to get its shit together.  Instead we are not only going in the exact opposite direction, we are accelerating.  Enjoy what's left while it's still there.

In reply to by HRH of Aquitaine 2.0

HillaryOdor HRH of Aquitaine 2.0 Wed, 04/11/2018 - 22:48 Permalink

I don't need an argument.  Your post falls flat on its face.  It's completely absurd.  You called me a communist and said I hate capitalism because you are so dumb you think America is a capitalist country.  You also think my hatred of the state somehow makes me a communist.  It doesn't get any dumber than that.   Communism (in the sense that you are using it which is also wrong) is just the state writ large.  It is impossible to be more capitalist than I am.  Unlike you I just realize what capitalism really is, not according to pop culture bullshit definitions that hold up America as some bastion of capitalism, but according to its real actual essence which is private property, free association, and free exchange, i.e. the exact opposite of the state, i.e. everything we don't have in the modern world, but you wouldn't understand because you are a complete and total moron.  There's nothing else to say.

In reply to by HRH of Aquitaine 2.0

Captain Nemo d… HRH of Aquitaine 2.0 Thu, 04/12/2018 - 05:43 Permalink

That is the problem. Pick a side establish a fight club. Then cry when those disillusioned under capitalism become strong enough to establish socialism. Then cry when the socialist society crumbles. Then establish capitalism. Then cry when those disillusioned under it become strong enough ...

There is no "natural" reason why one system is better than the other. The only "natural law" is the law of the jungle. It is not capitalism. Or socialism for that matter.

Rather than "fight clubs" you need to figure out what would create a stable system that does not go through the excesses of either. Move beyond ill-defined labels already.

In reply to by HRH of Aquitaine 2.0

I am Groot HRH of Aquitaine 2.0 Wed, 04/11/2018 - 22:29 Permalink

Work is a four letter curse word for today's Millennials. They all want to graduate high school and be the CEO of a company, play games, own a yacht and have a Bentley in the garage all without lifting a finger. I have never in my life seen a more deluded, lazy, unimaginative, spoiled, bratty, self indulgent, bunch of whiny, backstabbing, latte drinking, little bitches before.

In reply to by HRH of Aquitaine 2.0

Old Goat Quantify Wed, 04/11/2018 - 23:46 Permalink

Physical labor may be painful on the body after many years, but bad for the body?  I don't think so.  The old timers i know that worked physical jobs mostly all lived long healthy lives.  As long as they avoided smoking and drinking too much.  A lot treat their bodies poorly with substances and eating poorly. But if you take care of yourself, I'd say physical labor is far healthier than sitting hunched over at a desk your life.

In reply to by Quantify

HRH of Aquitaine 2.0 Quantify Thu, 04/12/2018 - 00:17 Permalink

If you are still doing a crap job after many years I don't know what to say. You're stupid? You can't improve your skill levels? Once you master a skill you should be able to go to the next level and manage people and teach them what you know. You learn to sell what you know. People that provide a real service, over time, develop a reputation. They show up on time, keep their word, complete the job, charge a fair rate / price, pay their bills on time. I have no sympathy for people that expect handouts and expect to be taught how to be a self starter.

I am doing quite well being self employed. But then again I never went around whinging about being poor or being too good for any type of work. Ever.

As for prospering? I make enough to own a home. I don't live in the ghetto and I don't get welfare. I pay taxes.

In reply to by Quantify