Tag Archives: Socialism

Consistently Spending More Than a Nation Can Afford Causes Its Fall, by Bill Bonner

It demonstrates rampant intellectual depravity that the above title is widely considered controversial, if not outright wrong. From Bill Bonner at bonnerandpartners.com:


“The means of defense against foreign danger have been always the instruments of tyranny at home.”

“If Tyranny and Oppression come to this land, it will be in the guise of fighting a foreign enemy.”

– James Madison

PARIS, FRANCE – And now, we come to the end… and the beginning.

We end our series on the Persecution and (political) Assassination of Donald J. Trump, as performed by the morons, flimflammers, and bunglers of the Deep State.

But also, through the open door in front of us, we see what might be the future…

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The Economics Behind the Fall of the Berlin Wall, by Ryan McMaken

The 30th anniversary of the fall of the Berlin Wall was Friday. One obvious lesson that won’t be mentioned much from the fall of the wall and the subsequent dissolution of the Soviet Union: socialism doesn’t work. From Ryan McMaken at mises.org:

Friday marks the thirtieth anniversary of the fall of the Berlin Wall. Like most historical events that are commemorated as if they took place on a single day, the fall of the Berlin Wall on November 9, 1989, was just one of many interrelated events that led to the end of the system of Soviet client states in Eastern Europe, and the end of the Soviet Union itself, in December of 1991.

With the fall of the Berlin Wall, East Germans, who had lived under severe restrictions on travel and emigration, were able to freely travel to West Berlin, which continued a chain of events already begun earlier that year in which many anti-Soviet dissidents throughout Eastern Europe became emboldened and met with unprecedented success. Meanwhile, East Germans flooded into neighboring countries by the thousands, seeking refuge from Soviet-sponsored oppression in Austria and West Germany.

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4 Reasons Why Socialism Is Becoming More Popular, by Alexander Zubatov

Something for nothing is becoming the predominant strain of the American character. It won’t end well, it never does. Alexander Zubatov at mises.org:

The newfound openness of large numbers of Americans to socialism is, by now, a well-documented phenomenon. According to a Gallup poll from earlier this year, 43% of Americans now believe that some form of socialism would be a good thing, in contrast to 51% who are still against it. A Harris poll found that four in ten Americans prefer socialism to capitalism. The trend is particular apparent in the young: another Gallup poll showed that as recently as 2010, 68% of people between 18 and 29 approved of capitalism, with only 51% approving of socialism, whereas in 2018, while the percentage among this age group favoring socialism was unchanged at 51%, those in favor of capitalism had dropped precipitously to 45%. The same poll showed that among Democrats, the popularity of socialism now stands at 57%, while capitalism is only at 47%, a marked departure from 2010 when the two were tried at 53%. A YouGov poll from earlier this year showed that unlike older generations, which still preferred capitalist candidates, 70% of millennials and 64% of gen-Zers would vote for a socialist.

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Doug Casey on What Happens When Socialists Win Elections

A short summary: nothing good. From Doug Casey at internationalman.com:

Socialists

International Man: Earlier this year, it became apparent a socialist would win Argentina’s presidential election.

The Argentine peso lost 30% of its value in a single day. The same day, in US dollar terms, the value of the Argentine stock market was cut in half.

Doug, you spend a lot of time in Argentina and the Southern Cone. What’s your take on the situation? Is Argentina headed for another currency collapse?

Doug Casey: Cristina Fernández de Kirchner was elected vice president and Alberto Fernández was elected president in the October 27 election. They basically destroyed the incumbent Mauricio Macri.

It’s a real pity because Macri is a decent human being whose heart was is in the right place politically and economically. But he was too timid. He did too little too late. Typical of “conservatives” everywhere, he didn’t make a moral argument to the populace. He made no effort to pull the corrupt fascist welfare state out by its roots, explaining why it’s destructive and why the state is the cause, not the cure, of the country’s problems. Instead, he just made some marginal improvements around the edges, and made things more comfortable for the Peronists now that they’re back in office.

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Africa’s Socialism Is Keeping It Poor, by Germinal G. Van

Stupid policies don’t discriminate. They lead to tragic outcomes regardless of the race, color, creed, or gender of those who implement them. From Germinal G. Van at mises.org:

It has been widely, vividly, but nonetheless wrongly believed that socialism is the appropriate system to improve the living standards of Africans. Worse yet, it has been misleadingly claimed that socialism is compatible with African culture because African culture is fundamentally a collectivist culture. However, one fact remains undisputable: socialism has failed wherever it was tried, and the African countries that have experimented with socialism were not exempted from its failure.

The undeniable fact remains that Africa has the lowest living standard of all continents after Antarctica. The reason why the living standard of the majority of African countries is so low compared to the rest of the world, is because socialism has impoverished the African continent. At the outset of the post-colonial era in the 1960s many African countries — such as Tanzania, Angola, Mali, Ethiopia, Ghana, Mozambique, Egypt, Senegal, Guinea, Congo and many more — have embraced socialism as their economic and political system. These countries that have embraced socialism became significantly worse off by the 1980s. For example, Tanzania was one of the fast-growing economies in East Africa until Julius Nyerere implemented the “Ujamaa,” which means socialism and brotherhood in the Swahili language. Before the implementation of the Ujamaa; Tanzania had aGDP similar to South Korea . Subsequently to the implementation of Ujamaa, economic growth became unsurprisingly stagnant. The policy of collectivization impoverished the Tanzanian people. Food production fell, and the country’s economy suffered . This decline in productivity has made Tanzania one of the poorest countries on the continent. In Ghana, under the rule of Kwame Nkrumah, one of the foremost African political leaders of the post-colonial era; socialism was also implemented as the economic system of the country. Socialism, as a domestic policy in Nkrumah’s seven-year development plan, was to be pursued toward “a complete ownership of the economy by the state.” A bewildering slate of legislative controls and regulations were imposed on imports, capital transfers, industry, minimum wages, the rights and powers of trade unions, prices, rents and interest rates. Private businesses were taken away and nationalized by the Nkrumah government. The result has also been unsurprising. Resources were mismanaged, inflation rose, and economic stagnation occurred in Ghana. Zimbabwe has also suffered from the myths of African socialism under Mugabe’s rule. Mugabe collectivized the means of production in the late 1980s when he became Zimbabwe’s strongman. Rampant corruption, huge budget deficits, and mismanagement of resources have dragged the economy, hyperinflation, 60 percent unemployment, and a desperate shortage of hard currency. These examples clearly demonstrate how socialism had utterly stagnated the economies of these countries until a market economy was once again reinstated.

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Capitalism Is The Worst, Except For All The Rest, by Lance Roberts

This is the third of a series on capitalism, the first two parts are linked below. From Lance Roberts at realinvestmentadvice.com:

n Part 1, we discussed how “Capitalism” was distorted by Wall Street. In Part 2, we reviewed some of the “myths” of capitalism, which are used to garner “votes” by politicians but are not really true. Most importantly, we discussed the fallacy that “more Government” is the answer in creating equality as it impairs economic opportunity.

I want to conclude this series with a discussion on the fallacy of socialism and equality, and provide a some thoughts on how you can capitalize on capitalism.

Socialism Requires Money

The “entire premise” of the socialist agendas assumes money is unlimited. Since there is only a finite amount of money created through taxation of citizens each year the remainder must come from the issuance of debt.

Therefore, to promote an agenda which requires unlimited capital commitments to fulfill, the basic premise has to be “debt doesn’t matter.” 

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The World’s Least-Free Countries Reveal Just How Much “Socialism Sucks”, by David Gordon

David Gordon reviews a book with a self-explanatory title. From Gordon at mises.org:

[Socialism Sucks: Two Economists Drink Their Way Through the Unfree World. By Robert Lawson and Benjamin Powell.  Regnery Publishing, 2019. 192 pages.]

Robert Lawson and Benjamin Powell are well-known free market economists, and they do not look with favor on a disturbing trend among American young people. “In the spring of 2016,” they tell us, “a Harvard survey found that a third of eighteen-to twenty-nine year olds supported socialism. Another survey, from the Victims of Communism Memorial Foundation, reported that millennials supported socialism over any other economic system.” (p.8)

Unfortunately, the young people in question have little idea of the nature of socialism. Lawson and Powell would like to remedy this situation, but they confront a problem. Ordinarily, one would urge students to read Hazlitt’s Economics in One Lesson, Mises’s “Economic Calculation in the Socialist Commonwealth,” and similar classic works, in order to understand the basic facts about the free market and socialism, but the millennials are unlikely to do so. One must attract their attention. What can be done?

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