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 Article – Why Socialism Won’t Work, at austrianaddict.com.
Related Article – Milton Friedman – “Socialism is Force”, at austrianaddict.com.
Related Article – Drifting Toward Fascism, at austrianaddict.com.
Related Article – Does Socialism Make People Selfish? at austrianaddict.com.
Related Article – Socialism Sounds Great, at austrianaddict.com.
AUSTRIAN ECONOMICS ADDICT 