Wednesday, March 6, 2019
Capitalism beats socialism ... every time
Socialism takes from people who produce to give goods and services to the "less fortunate." It is done under the premise of fairness. Everyone should benefit from the largess of the wonderful world that surrounds us all.
The prior paragraph may sound appealing, but there are three fatal errors embedded in the premise.
1. Fortune has little to do with income
2. Fairness is in the eyes of the beholder
3. The world is dangerous, not wonderful.
The term “less fortunate” makes it sound like success depends on luck. Except, what happens to “luck” under a socialist system. Under socialism, scarcity is the order of the day. Even commodities like toilet paper are in short supply. If “luck” brought all these goods to market under capitalism, why doesn’t “luck” deliver the goods under socialism?
If a person produces something through brawn, wits, or practiced skill, that person believes that fairness dictates that they should be able to keep what they produce. It doesn’t matter whether that “fortunate” person is a plumber, entrepreneur, or NFL player. Socialism sees fairness differently. People with more must give their “fair share” of what they produce to others. The recipient probably thinks it’s fair, but producers feels abused.
Advanced societies live in a wonderful world, but its wonders are due to capitalism. Our hardscrabble world offers no “largess” free for the taking. Before Adam Smith, the hoi polloi found food scarce, work backbreaking, bug-ridden shelters unpleasant, support systems nil, and life short. That was the world before capitalism. In fact, that’s the world today in the underdeveloped world. Life is harsh without capitalists to scrape the burrs off.
Those who can’t demand more than minimum wage want to believe that their problems result not from sloth, but from ill fortune, theft, or a rigged system. Socialism appeals to the indebted, the lazy, and the unskilled. For a period, socialism works, but socialism soon converts the productive into the skillfully lazy. Everyone is equal, but equally without. Except for the commissars and their friends and family. They live well. You see, socialism is really about trading places. The politically powerful trade places with the people who used to build stuff, create nifty things, or get it to market. The operative phrase in that sentence is used to. They no longer own the product of their sweat or wits, so they live off their already accumulated wealth, move, or cozy up to the state. Thus, no toilet paper.
Whenever capitalism and socialism are pitted against each other, capitalism always wins. Wherever and whenever free markets are allowed to reign, people are better off. All the people. Inequality grows, but inequality grows under socialism as well. The difference is that the socialist ruling class disguise their lifestyle while under capitalism, the rich revel in it. Why does capitalism work so much better than romanticized socialism? I can explain in one word.
That’s why capitalism wins. Always. Rewards for hard work. Rewards for being clever. Rewards for endless training in a sport or performing art. Rewards for taking risks. Rewards for developing skills needed by society. Even rewards for showing up on time.
Socialism? Not so much. Under socialism the only rewards are for exercising raw political power or being connected to raw political power.
That’s why socialism sucks. Big time.