Posted tagged ‘Capitalism vs Socialism’

Prager University: Democratic Socialism Is Still Socialism

December 14, 2016

Capitalism or Socialism - Traffic sign with two options - socialist centralized economic planning or capitalist liberated free market

Socialism is defined as Government owning the means of production. In a Capitalist economic system, the means of production are owned by individuals. Many systems today try to have a delicate balance between these two systems. They are similar to the economic Fascism that existed under Mussolini in Italy where the means of production are still owned by individuals, but Government politicians and bureaucrats make rules and regulations on how these means are to be used, as well as taxing away a high percentage of profits.

If a country is in the middle between Socialism and Capitalism the important question is; which direction is it headed? Is a country moving toward more economic freedom or toward more government central planning. The U.S. has been traveling, at varying speeds, down the road toward more central planning since the 60’s, with the accelerator pressed to the floor in the last 8 years.

This past election was a response to what has happened in the last 8 years. Lets hope Trump and Congress want to turn around and head in the direction of more economic freedom. But I wouldn’t count on it. I just hope they take their foot off the accelerator.

DEMOCRATIC SOCIALISM IS STILL SOCIALISM

Steven Crowder looks for the differences between Democratic Socialism and Socialism in this video from Prager University. Even though a majority of people vote for (sanction) this system, it doesn’t change the reality that it doesn’t work.

In 1848 Alexis de Tocqueville wrote this about Democracy and Socialism:

Democracy extends the sphere of individual freedom, Socialism restricts it. Democracy attaches all possible value to each man, Socialism makes each man a mere agent, a mere number. Democracy and Socialism have nothing in common but one word: Equality. But notice the difference. While Democracy seeks equality in liberty, Socialism seeks equality in restraint and servitude.”

 

Here are some statements about Socialism.

Paul Craig Roberts: “We should all be thankful to the Soviets, because they have proved conclusively that Socialism doesn’t work. No one can say they didn’t have enough power or enough bureaucracy or enough planners or they didn’t go far enough.”

F. A. Hayek:There can be no doubt that the promise of greater freedom as become one of the most effective weapons of socialist propaganda and that the belief that socialism would bring freedom is genuine and sincere. But this would only heighten the tragedy if it should prove that what was promised to us as the road to freedom was in fact the high road to servitude.

Ludwig von Mises: “Men must choose between the market economy and socialism……Some agency must determine what should be produced. If it is not the consumer by means of demand and supply on the market. It must be the government by compulsion.”

F. A. Hayek: “Planning, or central direction of economic activity, presupposes the existence of common ideals and common values; and the degree to which planning can be carried is limited to the extent of which agreement on such a common scale of values can be obtained or enforced.”

 

Related ArticleWhy Socialism Won’t Work, at austrianaddict.com.

Related ArticleMilton Friedman – “Socialism is Force”, at austrianaddict.com.

Related ArticleDrifting Toward Fascism, at austrianaddict.com.

Related ArticleDoes Socialism Make People Selfish? at austrianaddict.com.

Related ArticleSocialism Sounds Great, at austrianaddict.com.

 

Does Socialism Make People Selfish?

July 26, 2016

Since the Democrat convention starts this week, I thought I would talk about the guiding principle of their Party which is Socialism. Although I probably could have posted this last week judging from some of the “highlights” I saw from the Republican convention.

As a coach, my most difficult task is to get each member of our team to think of the team first and himself second. Have you heard the old adage, “there is no I in TEAM? It’s an adage because it’s true! The reason it’s difficult to mold a group of people into a team is because humans are selfish by nature.

The video below, by Prager University, is titled “SOCIALISM MAKES PEOPLE SELFISH”.

I’m going to disagree a little bit with the title, although this may be just a distinction without a difference.

If people are selfish by nature. And socialism incentivizes selfish behavior. Than socialism doesn’t make people selfish as much as it allows their natural selfishness to flourish.

Here is a quote that sums up the differences between capitalism and socialism.

Capitalism is an economic system for devils, of which there are many. Socialism is an economic system for angels of which there are few.”

In a free market capitalist system selfish individuals have to first produce something that other people want in order to receive what they want in return. Give before you receive. Free market capitalism incentivizes the golden rule.

Watch the video narrated by Dennis Prager.

 

In this article, The Problem With Socialism, Thomas DiLorenzo states the definition of socialism as “government ownership of the means of production“. Government politicians and bureaucrats figured out that production was a difficult task that is best left to entrepreneurs. So “the means to the socialist end evolved into government enforcing redistribution of income through the welfare state and the progressive income tax“. So in Robin Hood fashion, they decided to rob the producers of their property and redistribute it to the poor. Even though Robin Hood actually reacquired and gave back the property the tax collectors stole from the producers.

Here is an excerpt from the article: “As Mises wrote in his own classic on Socialism, socialists have always employed a dual strategy: 1) nationalize as much private property as possible: and 2) “destruction” or the destruction of as much of the private property/ free enterprise society as possible with taxes, regulation, inflation.

 

Related ArticleWhy Socialism Won’t Work? Human Nature, at austrianaddict.com.

Related ArticleMilton Friedman – Socialism Is Force, at austrianaddict.com.

Related ArticleSocialism Sounds Great, at austrianaddict.com.