Wednesday, April 7, 2010

The Good & Bad of Socialism & Capitalism. III

After writing about what's good about both Socialism and Capitalism, now it's time for the bad side of them. Today it's Socialism's turn.

What's Bad about Socialism ?

The fundamental problem with Socialism is both practical and theoretical, and can be summed up with the simple question, "Where Do You Draw the Line ? "

Once a governmental system begins to re-allocate resources according to a principle of equality, does it go all the way to total equality ? If so, that goal conflicts with the observable facts that people are different and have different wants, needs, desires, abilities and motivations. The US Declaration of Independence proclaimed that "All men are created equal", not that "all men are and shall be equal at all times."

That conflict CAN drive Socialism to become a system of envy and jealousy as inherent differences in human beings conflict with the principle - and the principle of equality applies only to some situations; it is NOT a universal law for all times, places, events, and persons.

This conflicts leads to the big, bad, dirty part of Socialism, that it is very, very susceptible to attracting the ruthless and power seekers. The re-allocation of resources and wealth that Socialism must do to help the poor and unlucky can become a force used by ruthless cliques to drive human mobs and ruthless cliques to let them seize power. Masses of humans under stress are known to be susceptible to mass delusions. Ruthless cliques use this nature to drive the mobs. The inherent differences in people become icons of hate and envy for the mobs as they seek revenge for past slights. "Equality" becomes a slogan and means of getting even, not a means to move to a higher plane of happiness.

Examples of this in the 20th century are profound: Mussolini's fascism in Italy, Nazism, Bolshevism, and Mao's Red China. If you don't realize how the ruthless gain and seize power in times of stress using Socialism as a force to drive mobs, read a past Book of the Week, "My Life as a Rebel", by Angelica Balabanoff. She was personally involved in the Bolshevik revolution, personally knew both Mussolini and Lenin well, and was a leader in the true Socialist revolutions; she maintained her belief in its principles. The ruthless did not.

Modern examples are Chavez's Venezuela, Castro's Cuba, and North Korea. All proclaim forms of Socialism as their system, but all are just dictatorships of a clique or family. Socialist doctrines are just propaganda to drive the masses.

When the force that binds the community and creates workable Socialism is not sufficiently strong to prevent a clique from seizing power, then history seems to show that is exactly what will happen. In the old Russian empire, there was little common ground among the people of that huge empire. Bolshevism took over, and evolved itself into rule by a bureaucracy -nomenklatura - of selected high Party officials. Nazism operated similarly: a decentralized system of Gauleiters subject to the edicts of the Führer. Red China today operates similarly in the political sphere, but permits (for now) rough economic freedom.

I don't need to reiterate the monstrous evils of these natural mutations of Socialism: one example will suffice. Today there is a ceremony marking the massacre of thousands of Polish officers in the Katyn forest under Stalin's orders and conducted by his killers in the old NKVD, the direct predecessor of the KGB. Stalin wanted to incorporate Poland into his evil empire operated under the guise of Socialism. Getting rid of potential leaders of Poland furthered that goal. Humanity means nothing to the ruthless persons that unfettered Socialism attracts to its leadership. Rule of the ideology leads directly to Totalitarianism and its evils exemplified in the 20th century.

Friedrich Hayak wrote about this in his famous book, The Road to Serfdom, written around 1940. He was right, as events proved over time. Socialism without true community bonds is a very risky system.. The force of the community bonds that help Socialism work also can repel the ruthless when they seek to divide the masses and use envy and jealous to gain power over the mobs. The same forces that help Socialism work also help to maintain and stabilize it.

Can Socialism work in a multicultural nation ? That is neither proven nor obvious nor even theoretically likely. Examples of where socialism work are homogeneous nations: the individual Scandinavian nations, Germany, France, Italy, etc. But cracks and tension are evident in France as the Muslim minority does not assimilate into French culture. Germany dealt with its large Turkish minority of "guest workers" by expelling them. As nation cannot do that to its own citizens with stepping closer to, and risking, genocide.

For Europe, a federalist system might let Socialism rule in the individual nations, and a true federal government might provide a means for the cooperation and coordination of nations. Time will tell if it works. I hope it does.

PS: Tomorrow I'll write about what is bad about Capitalism.

Word of the Day

"Transmogrify" - verb, transitive [$10]
Transmogrify means to change or alter with grotesque or humorous effect.
Sentence: Without strong community bonds, Socialism seems to tend to transmogrify into a ruthless totalitarian system. That transmogrification can happen very quickly and even the earliest transition phase into Socialism can go beyond it directly into totalitarianism.

37 comments:

Bunkerman said...

One might note I did not list, "breeds laziness" as something bad about Socialism. Actual examples do not support that criticism. Germans are not lazy, nor are Swedes. Laziness was widespread in the Soviet Union, but that was more of a malaise of powerlessness and the capricious nature of the nomenklatura in taking the fruits of anyone's extra labors which they could.

Workers who worked on the side (as authorized) in the Soviet Union were definitely not lazy, as the productivity of private gardens proved. Hence those are a counterexample to the "breeding" claim.

mfl59 said...

Bunkerman Bud couldn't find his johnson with 2 hands and a map...unless of course jim told him where it was...

Bunkerman said...

I remember comments like that from "him" - I suppose one might wonder how a proud, ostentatious member of "Mensa" can make such an obvious error, and then wonder what that means about such an organization.

Frosty said...

where is my lil pal...$6 coffee with milk run...moneyshow vegas in May...hoping we can hook up.

mfl59 said...

Mr G has really turned into a mockery

mfl59 said...

Mr. G has really turned into a mockery

Frosty said...

hhmmm...must be a tea bagger rally today....MIA indeed.

Bud said...

good morning Bman !!!!!!


Bman what do you take at night if you have trouble falling asleep ?? i was takin ambien on worknights..........but i have been getting off those...........i have 2 glasses of scotch after 10.........it's doin the job so far

Bud said...

good morning Bman !!!!!!


Bman what do you take at night if you have trouble falling asleep ?? i was takin ambien on worknights..........but i have been getting off those...........i have 2 glasses of scotch after 10.........it's doin the job so far

Bud said...

you guys are a bunch of F'ng morons.............why does it breed laziness??


cuz the incentive of makin millions of dollars makes guys work incredibly hard.............i am sure the german plumber or swedish electrician work hard...............that wasn't the F'ng point



F'ng douchebags

Bud said...

why you so worried about my johnson ace ???


oh.........i know why...........you a wrestling fan..........aka......fag

mfl59 said...

try choking the chicken...

sorry Mrs. B

Bud said...

hey frosty.............do you people consider tiger woods a national hero ????

Bud said...

" hey Sal..........why you gotta be like that...... so filthy...........so dirty..........so vulgar...........so nasty ?"



cuz i'm a nasty motherF'er !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Spin-em said...

i have 2 glasses of scotch after 10......


lmaoooooooooooooooooooo what a numbskull

Bud said...

Bman are you watchin mrG's testimony ?? he said he was right 70% of the time......and wrong 30%

Bud said...

Bman what is your prediction for the unemployment % on nov1 ?

Bud said...

Bman do you think a VAT is inevitable next year ?? paul volcker wants one

Bud said...

Bman what is your prediction for the 10year treasury yield on nov1??

Frosty said...

Sal...after a tea bagger rally...how do you dislodge the pubic hair from your choppers?

Bunkerman said...

I never seem to have a problem falling asleep. We go to bed about two hours after dinner, and the food and wine do the job.

My problem is waking up at 2AM - ugh...

Extra water and less alcohol help that.

I think many people have troubl egoing to sleep as they use their brains too much late a night. Best to cool it off, read a bit, have a snack, maybe a nightcap (not too much).

Bunkerman said...

Nope, not watchin G-man.

I was writing a letter to an old friend.

Bunkerman said...

9% for unemployment. JOb gains wil be offset by erpson re-entering and entering workforce.

Bunkerman said...

I think a VAT comes in a year or two - we should put one on as a trade to get rid of all the taxes on jobs (soc. sec., medicare,etc.)

That would be really good for the US and its worldwide competitiveness.

Bunkerman said...

I think the US 10 yr goes to 4.5% this year, then 5% next year.

Frosty said...

spoken like a true permabear...well played sir.

Bunkerman said...

uh ... how can I be a "permabear" when I was the lonely bull until about November ?

And did put $ to work parallel to mouth in Obama Fund ealry 2009.

uh ... that's called a "Counterexample"

;)

verdacity said...

Bunkerman, I just wanted to reach out and say how much I've enjoyed your recent posts on Socialism and Capitalism -- IMO your best blogs yet. Like you, I'm a semi-retired entrepreneur, investor, and Ivy League grad. We have other things in common, but also major differences in opinion, which is one of the reasons I read your blog almost every day. I'd like to connect on a more personal level, if you're interested you can reach me through the proxy email address for this blogger account: daft.prick at gmail dot com

Frosty said...

Sal went to Iowa State...he could use a friend.

maverick said...

OMG...verdacity...that you mern???

Spin-em said...

i have 2 glasses of scotch after 10......


lmaoooooooooooooooooooo what a numbskull

Bud said...

frosty did i not tell you not to call me Sal !!!!!!!!!!!!!!! only my friends call me that............oh..........that reminds me of a poem.....here we go


we ain't friends...............we ain't never was friends..........and we ain't never is gonna be friends............F'ng douchebag




PS.......still wanna be friends ??????

Bud said...

ES M0


nailed it !!!!!!!!!!!!!


darkisde.....thanks tom hoening..........blip hit Bman ????



danke vielmals e-mini boy !!!!!!!!!!!!!!!!

Spin-em said...

i have 2 glasses of scotch after 10......


lmaoooooooooooooooooooo what a numbskull

Bunkerman said...

verdacity, I sent you an email on my yahoo account to let you contact me directly. I usually don't check much it, but will for a few days.

Frosty said...

third distribution day past 14 trading days...must warm the heart of a permabear like u...when william o'neil is over for bunktinis would you ask him to sign a book for me....thx in advance.

Bunkerman said...

hmmm O'neil .. is he a reader of the blog ?