The Cancer of Socialism Returns

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The Cancer of Socialism Returns

The evidence of history is unequivocal!

Capitalism works and socialism fails.  Everywhere.  Every time. 

Wherever you look, from the Soviet Union to Maoist China to Cuba to Venezuela, state socialism has proven to be the “Big Lie” of modern civilization.  While it promises prosperity, equality, and security, it delivers poverty, misery, and tyranny.  Equality was achieved only in the sense that everyone was equal in his or her misery.

Yet, after nearly 30 years in remission, the cancerous ideology of socialism has experienced a sudden resurgence in the United States. As of this writing, large proportion of America’s Millennial and Gen Z cohorts have favorable opinions of socialism based on their “understanding” of the term.  

To explain this ideological metastasis and where it’s leading us, we’ll examine four crucial questions:

  • Why does this failed system, keep bouncing back even after it’s been discredited?
  • What are the principles of socialism and capitalism? 
  • Why has capitalism decisively beaten socialism in every contest?  And,
  • What are the implications and consequences of the current political and ideological struggle between socialism and capitalism? 

Let’s start with the question, “Why does this failed system, keep bouncing back even after it’s been discredited?”  The answer lies in human nature.  In the same way that a Ponzi scheme or chain letter initially succeeds but eventually collapses, socialism shows its victims early signs of apparent success.  It is this initial illusion of success that gives government intervention its pernicious, seductive appeal.  But these accomplishments quickly fade as the fundamental deficiencies of central planning emerge.  And, in the long run, socialism has always proven to be a formula for tyranny and misery.

Consider the facts.  A pyramid scheme is ultimately unsustainable because it is based on faulty principles.  Likewise, collectivism is unsustainable in the long run because it is a flawed theory. Socialism does not work because it is not consistent with fundamental principles of human behavior.

The consistent failure of socialism in countries around the world can be traced to one critical defect: it is a system that ignores incentives. 

In a capitalist economy, incentives are of the utmost importance.  Market prices, the profit-and-loss system of accounting, and private property rights provide an efficient, interrelated system of incentives to guide and direct economic behavior.  In short, capitalism is based on the theory that having the right incentives matters!

Under socialism, incentives either play a minimal role or are ignored totally...

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