November 21, 2018
Dear Friends and Family,
This is the introduction to Segment 3 of the series on Socialism entitled “Tried but Failed Every Time over 150 Years.” An alternative title would be: “A look at the World’s Experience with Socialism.”
The excerpts provide a perspective on today’s socialism in France, Germany, Greece, Italy, Sweden, United Kingdom, United States, China, Cuba, Iran, North Korea, Russia, Venezuela, Zimbabwe and Peru.
My Takeaways:
The significant thing I took away from this segment is that most countries can economically withstand a little bit of socialism. But more than a little has historically resulted in economic chaos in time. The chaos results in having to implement austerity measures and/or anti-socialism policies which are harsh impositions on the people, particularly the poor. Implementing a full-blown socialistic program historically has led to catastrophic consequences for the populace.
So, the degree to which socialism prevails in a country matters. I readily saw in the fourteen countries analyzed, as noted below:
• Group A: United States: The US with a large GDP and a relatively low welfare percentage by comparison to developed countries; has not yet suffered much economically from socialism and therefore to date the country has not had to take severe austerity measures.
• Group B: France: France with a large GDP and high welfare costs had to take several austerity measures following the downturn in 2008.
• Group C: Sweden: Sweden with a relatively small GDP and very high welfare costs and some nationalization of industry, had to reverse many socialistic policies via privatization to recover and seemingly still is in trouble.
• Group D: Greece: Greece not only had high welfare costs, but a relatively high percentage of its industry was nationalized. They were forced to take very severe austerity measures and their unemployment zoomed to over 18%.
• Group E: Cuba and Venezuela: Both implemented a totally socialistic economy and government. The economies of both countries are so dire they have to ration food, when they can get it, and the infrastructures of both have severely crumbled.
• Group F: Russia and China: Both implemented a totally socialistic economy and government. Both experienced massive starvation deaths because of socialistic policies and practices.
• Group G: Soviet Union: The economies of Russia and all other Soviet Union countries collapsed in the early 1990s.
In the cover letter on segment 1, some characteristics of socialism were highlighted with some additions in segment 2. For my own learning, I wanted to identify which characteristics were prevalent for each grouping above to test the hypothesis that the degree of socialism is important to their economy. The characteristics are as follows:
1. Redistribution of wealth and income
2. Central economic planning and control
3. Partial or complete nationalization of private corporations via takeover or very controlling regulations
4. Using political agencies to provide goods and services that otherwise would be provided by private enterprise.
5. A preference and enactment of collectivism versus individual control
6. Destruction of civil liberties (e.g. free choice, free speech, individual control of property, freedom of association, equal rights, freedom to fail, self-defense).
7. Information Control – Censorship
8. Control by Force
9. All Powerful Ruler(s)
When I looked at the grouping of countries above with their degrees of socialistic characteristics, I concluded the following:
• Group A: The United States has some of the socialistic characteristics from 1 and 2 above.
• Group B: France also has some characteristics from 1 & 2 above but seemingly to a higher degree than the US.
• Group C: Sweden has characteristics 1, 2, & 3.
• Group D: Greece has characteristics 1, 2, & 3 to a higher degree than Sweden, plus a great deal of corruption.
• Group E: Cuba & Venezuela have all nine characteristics.
• Group F: China and Russia had all nine characteristics. China since 1976 has relaxed significantly on 2, 3, 4, 5, 6, and 8. We will look at China’s reform in-depth in segments 15 through 18.
• Group G: The Soviet Union had all nine characteristics.
Hence the reasoning behind the “Socialism Has Been a Terrifying Failure” excerpt contained in the PDF link for this segment which follows.
Socialism is the organized pursuit of something for nothing. It feeds on human nature with false assurances. It claims the power to satisfy all needs with minimal or no effort. In the end, only an elite class enjoys the advantages while everyone else must suffer. The alleged goals of socialism were: the abolition of poverty, the achievement of general prosperity, progress, peace, and human brotherhood. The results have been a terrifying failure – terrifying that is, if one’s motive is man’s welfare. Instead of prosperity, socialism has brought economic paralysis and/or collapse of every country that has tried it. The degree of socialism has been the degree of disaster. The consequences have varied accordingly.
The next segment is titled “The Fundamental Flaws of Socialism” which will include a case study of a socialistic failure in India, explanations on six common flaws of socialism from three different sources, and a perspective that the worst (most evil) will rise to the top in socialism and the reasoning behind why that occurs.
Happy Learning,
Harley
Dear Friends and Family,
This is the introduction to Segment 3 of the series on Socialism entitled “Tried but Failed Every Time over 150 Years.” An alternative title would be: “A look at the World’s Experience with Socialism.”
The excerpts provide a perspective on today’s socialism in France, Germany, Greece, Italy, Sweden, United Kingdom, United States, China, Cuba, Iran, North Korea, Russia, Venezuela, Zimbabwe and Peru.
My Takeaways:
The significant thing I took away from this segment is that most countries can economically withstand a little bit of socialism. But more than a little has historically resulted in economic chaos in time. The chaos results in having to implement austerity measures and/or anti-socialism policies which are harsh impositions on the people, particularly the poor. Implementing a full-blown socialistic program historically has led to catastrophic consequences for the populace.
So, the degree to which socialism prevails in a country matters. I readily saw in the fourteen countries analyzed, as noted below:
• Group A: United States: The US with a large GDP and a relatively low welfare percentage by comparison to developed countries; has not yet suffered much economically from socialism and therefore to date the country has not had to take severe austerity measures.
• Group B: France: France with a large GDP and high welfare costs had to take several austerity measures following the downturn in 2008.
• Group C: Sweden: Sweden with a relatively small GDP and very high welfare costs and some nationalization of industry, had to reverse many socialistic policies via privatization to recover and seemingly still is in trouble.
• Group D: Greece: Greece not only had high welfare costs, but a relatively high percentage of its industry was nationalized. They were forced to take very severe austerity measures and their unemployment zoomed to over 18%.
• Group E: Cuba and Venezuela: Both implemented a totally socialistic economy and government. The economies of both countries are so dire they have to ration food, when they can get it, and the infrastructures of both have severely crumbled.
• Group F: Russia and China: Both implemented a totally socialistic economy and government. Both experienced massive starvation deaths because of socialistic policies and practices.
• Group G: Soviet Union: The economies of Russia and all other Soviet Union countries collapsed in the early 1990s.
In the cover letter on segment 1, some characteristics of socialism were highlighted with some additions in segment 2. For my own learning, I wanted to identify which characteristics were prevalent for each grouping above to test the hypothesis that the degree of socialism is important to their economy. The characteristics are as follows:
1. Redistribution of wealth and income
2. Central economic planning and control
3. Partial or complete nationalization of private corporations via takeover or very controlling regulations
4. Using political agencies to provide goods and services that otherwise would be provided by private enterprise.
5. A preference and enactment of collectivism versus individual control
6. Destruction of civil liberties (e.g. free choice, free speech, individual control of property, freedom of association, equal rights, freedom to fail, self-defense).
7. Information Control – Censorship
8. Control by Force
9. All Powerful Ruler(s)
When I looked at the grouping of countries above with their degrees of socialistic characteristics, I concluded the following:
• Group A: The United States has some of the socialistic characteristics from 1 and 2 above.
• Group B: France also has some characteristics from 1 & 2 above but seemingly to a higher degree than the US.
• Group C: Sweden has characteristics 1, 2, & 3.
• Group D: Greece has characteristics 1, 2, & 3 to a higher degree than Sweden, plus a great deal of corruption.
• Group E: Cuba & Venezuela have all nine characteristics.
• Group F: China and Russia had all nine characteristics. China since 1976 has relaxed significantly on 2, 3, 4, 5, 6, and 8. We will look at China’s reform in-depth in segments 15 through 18.
• Group G: The Soviet Union had all nine characteristics.
Hence the reasoning behind the “Socialism Has Been a Terrifying Failure” excerpt contained in the PDF link for this segment which follows.
Socialism is the organized pursuit of something for nothing. It feeds on human nature with false assurances. It claims the power to satisfy all needs with minimal or no effort. In the end, only an elite class enjoys the advantages while everyone else must suffer. The alleged goals of socialism were: the abolition of poverty, the achievement of general prosperity, progress, peace, and human brotherhood. The results have been a terrifying failure – terrifying that is, if one’s motive is man’s welfare. Instead of prosperity, socialism has brought economic paralysis and/or collapse of every country that has tried it. The degree of socialism has been the degree of disaster. The consequences have varied accordingly.
The next segment is titled “The Fundamental Flaws of Socialism” which will include a case study of a socialistic failure in India, explanations on six common flaws of socialism from three different sources, and a perspective that the worst (most evil) will rise to the top in socialism and the reasoning behind why that occurs.
Happy Learning,
Harley
SOCIALISM – SEGMENT 3
TRIED, BUT FAILED EVERY TIME OVER 150 YEARS – EXCERPTS
From: The Naked Socialist
THE RISE AND FALL OF SOCIALIST EUROPE: There is an eerie similarity between today’s decaying European Union and the failed Soviet Union. Both attempted to amalgamate a variety of sovereign nations, each with its own unique culture, history, economy, resources, and national work ethic into a simple economic and political power. Both empires adopted a common currency – the ruble for the Soviets, and the euro for the Europeans. Both adopted central ruling bodies to act in behalf of the individual nations. And both started to crack up after about six decades. When the international debt crisis of 2008-09 forced the EU to examine its profligate ways, the long-ignored wreckage was massive – deeply entrenched unemployment, shrinking tax revenues, bloated budgets, growing numbers of retirees, exploding numbers of pensions coming due, and heavy welfare demands. People weren’t dying fast enough. Longer life expectancy, lower birth rates, low economic growth, lack of productivity, too much reliance on services, lack of manufacturing, and all the problems and complexities that followed, exacerbated the rapid drain on the treasuries.
The Same Thing All Over Again: “Why do I have to work and pay for someone else’s luxury? Why don’t they work and pay for their own?” Such is the nature of socialism in Europe and around the globe. People come to expect certain services from their governments. And when taxes and borrowing don’t cover the costs, economic reality forces governments to take a few steps back and reduce health coverage, pension plans, insurances, support for assorted projects, etc. And how do the people respond? With riots in the streets. It takes very little time for the entitlement mentality to grow oblivious to the basic economic realities of life; they think welfare is their God-given right.
A SNAP-SHOT OF WORLD SOCIALISM: The modern welfare state is in a death spiral. It has created an expectation among the populous that it can’t fulfill. The result has been varying degrees of enormous national debt, complicated by aging populations, low birth rates, huge budget deficits, and national demands for more government intervention to solve the mess. That’s what socialist do.
Democratic Socialists Countries: In such countries people vote for socialistic policies. In general, it has deeper involvement of the masses who vote democratically for policy instead of relying on an elite class of leaders to impose it. Democratic socialism means voting to be impoverished and miserable rather than having it forced upon you.
France: Welfare costs—28.5% of GDP (#3 in world). The second largest economy in Europe was stagnating by 2011, teetering on the brink of a major recession. In response, France turned to raising the retirement age from 60 to 62, eligibility for pensions from 65 to 67, raising corporate taxes, and raising taxes on consumable goods (except groceries). But welfare and pension expenses had already crushed the nation’s ability to prosper. By 2011, those costly pensions could no longer be sustained. Despite the dire necessity, the public was outraged at the announced cutbacks. Strikes of 1 to 2 million people took place several times across the country that included school students, truck drivers, teachers, train drivers, postal workers, and more – all in response to the government’s attempt to cut back spending and borrowing.
Germany: Welfare costs – 27.4% of GDP (#4 in world). Just before the war, the National Socialist government wanted to create beautiful, ordered cities with large, but controlled populations. This so disrupted the people that they rejected central planning altogether. Then came one of the most murderous socialist in history – Adolf Hitler. Today there remains great bitterness and resentment toward central planners who take away local decisions and desires. Although socialist parties occasionally rise to take power, the Germans jealously guard their freedoms, and have worked hard to prosper despite the impositions of government. The Germans probably hate socialism, but they’ve embraced many of the same costly government security nets that are crushing other economies in Europe and around the world.
Greece: Welfare Costs – 24.3% of GDP (#10 in world). The ruinous outcome of over-promising a mountain of perks and pensions and national care took center stage in 2011-12. Faced with a half-a-trillion debt, the Greek parliament tried to cut back its expenses, so the nation wouldn’t default on its loans and thereby cause a chain reaction of defaults throughout Europe (many were invested in Greece). The outgoing socialist government failed on its promise to privatize many nationalized parts of the economy – a promise made to stimulate economic growth. In return for more borrowed money to stay afloat, the government promised to cut public spending by $20 billion and raise taxes by the same amount over a five-year period. The resulting burden place on society was grating. Property taxes had to go up, consumption taxes for restaurants and bars rose from 13% to 23%, new taxes on luxury items were imposed, public wages were cut by 20%, about 30,000 public workers were to get only 60% of pay, all temporary public sector workers were to be laid off, health-care spending and Social Security were all reduced, pensions were to be cut 20%, the retirement age was raised to 65, and the government planned to sell off nationally-owned utilities to private investors. The reaction of the people? With unemployment over 18%, there were bloody riots and protests for weeks.
Italy: Welfare costs – 24.4% of GDP (#9 in world). Similar to Greece, the financial crisis that hit Italy extracted enormous costs and forced a turnover in the government. The public debt was almost 120% of GDP. Cuts across the board, plus increased taxes and shrinking the government was their latest plan. And what did the Italians think of their governments efforts to rein in the extravagances? Riots and protest in the streets – a demonstration that Italians love socialism.
Sweden: Welfare cost – 28.9% of GDP (#2 in world). This nation of nine million enjoys a degree of prosperity but at a huge personal cost. The country owes an enormous debt (15th highest in the world) and its people carry a load of taxes that consumes up to 60% of the average income. Add to this the sales tax of 25% build into the price of consumer goods, plus 1/5th of the working-age people on welfare, a third of everyone working for the government, and a population growth rate almost flat. Plus 13% of its population is foreign born many of whom are refugees from the Balkans, Africa and the Middle East coupled with Sweden having one of the highest disparities between immigrant (most of whom are on welfare) and native-born unemployment in the developed world. The Sweden model is on socialist skids. Starting in the 1990s, Sweden began scaling back its socialist government from the oppressive heavy-handedness of the 1960s. The results were outstanding. School vouchers created competition among educators to improve quality. Health care and pensions became partially private, giving flexibility to people’s choices for when they retire. The public transportation systems were returned to the private sector, including the rail lines. The center-right government that came into power in 2006 was reelected in 2010 with goals to continue privatization and reduced taxes. A majority of Swedes still love socialism, but with each move toward economic liberty, the country grows stronger.
United Kingdom: Welfare costs – 21.8% of GDP (#14 in world). In 2010, Britain worked to reduce its yearly welfare costs. With 1.4 million receiving jobseekers’ allowance, the new plan required that each welfare recipient perform at least 30 hours a week in mandatory work activity for the month. If they didn’t put in the hours, they would risk having their welfare checks stopped for at least 3 months. By 2011 conditions worsened and Britain planned to cut 490,000 government jobs, cut about 20% from government departments and raise the retirement age to 66 by 2020. Slashing the disability living allowances and welfare payments was expected to push 400,000 back to work.
United States: Welfare costs – 14.8% of GDP (#26 in world). America’s welfare system is enormous. It involves six top-level departments that run more than 70 programs. Many recipients of welfare receive funds from several departments at the same time. Welfare in the U.S. has become an enormous drain. Study after study, expert after expert, all said the same: When people are paid not to work, that’s exactly what they’ll do.
All Other Varieties of Socialist Countries:
China: Historically, in 1994 it was estimated that the body count from socialism’s tyranny in China was 72,260,000 people, probably a low-ball figure, allied from 1949 – 1980. Chairman Mao Tse-Tung’s “Great Leap Forward” to make China a military superpower in just five years caused at least 27 million deaths from famine and another 6 million deaths by execution. Mao’s massive push created a tremendous strain, diversion of resources and severe conditions of living and overworking. Giant communes for grain production were organized, with tens of thousands of family grouped at the farmlands, with all things communal.
Cuba: When the Soviet Union fell, Cuba was left handing without the financial support to keep its socialist economy running. Having all things in common means rationed food. Today, such basics as milk, bread, rice, eggs, and beans can be bought if there are any in the stores – otherwise, it’s a long wait in line to get small portions. Families are allotted 1 liter of milk per child per day. These scarcities drive a large black market for the basics. Teachers suffer on a salary of $15 a month and cannot obtain pencils, paper, crayons, or books, not to mention computers. Medical supplies are scarce, and modern medical technology such as MRI and CAT scanning equipment are almost unheard of. The water is turned off from midnight to 6 A.M. to save on energy, chemicals, and the machinery to pump it. Crime is rampant – corruption, prostitution, drugs, white collar crime. The Castro regime used torture, arbitrary imprisonment, false trials, and executions to keep the population under control. Civil activists protesting the communist leadership are routinely arrested and imprisoned. Cuba’s enslaved and threatened population has little option but to support socialism. To do otherwise means prison – or death.
Iran: Iran’s ruling Islamic regime has been forcing its people to obey religious tenets since the 1979 revolution. In the name of religious purity, the strait and rigid rule of oppression have crushed political dissident, journalists, students, bloggers, advocates for women’s rights and human rights, and people of minority faiths. Those speaking out against the regime are followed and harassed, arrested and imprisoned, and sometimes stoned or hanged. While imposing its purified Islam on the populous, it must crush all attempts to inject change. The rulers dictate everything – what people may wear, the books they may read, what television and movies they may watch, how they groom themselves, cut their hair, the food they eat, the company they keep. Journalists are jailed, anyone caught defaming the Supreme Leader or the declared tenets of Islam are jailed- or worse. Every pillar of socialism is present in Iran.
North Korea: By all standards or measurement, North Korea is the most oppressed nation on earth. Its government is a dictatorship that controls every part of a person’s life. If someone is arrested for disobeying the Dear Leader’s dictates, he or she goes to one of 210 detention centers, 210 labor camps, 27 holding facilities, 23 prisons, 6 political prison camps, or 5 indoctrination camps.
Russia: The motherland continued to suffer from the remnants of its abandoned socialistic heritage long into the new millennium. With reforms more than two decades in the making, the basics of property rights and protections continued to elude the nation. People expecting protection of individual rights found the judicial system sadly unpredictable, corrupt, and unable to handle sophisticated cases. After all those years of climbing out of the shadow of Communist dictatorship, Prime Minister Putin started turning back the clock in 1999. He retained the undercover forces of secret police to run things. He was accused of enriching his inner circle with profits from oil revenues. Russia has reduced its unemployment and rate of inflation, but its shrinking labor force, high levels of corruption, and aging infrastructure are remnants of its old way that need urgent attention. Historically, it was estimated in 1994 that the body count from socialism’s tyranny for all of the Soviet Union, not just Russia, to be about 58,627,000 people from 1922-1991.
Venezuela: 38% of the people are below the poverty line. When Hugo Chavez became president in 1999, he promoted his “21st Century Socialism” as the great solution to alleviate all social ills. The fruits of his brilliant solution rose no higher than all other failed socialist schemes. Reckless government interference in the economy, rampant corruption, price controls on nearly all goods and services, a corrupted legal system, a lack of respect for property ownership and contracts, and the constant threat of government confiscation of wealth and property has almost killed prosperity. Chavez trampled on human rights, outlawed free speech, abolished property rights, took over successful private businesses and nationalized them, and exhausted the national treasury to build up the military. In 2011, the country had the highest inflation rate in all of Latin America at 29%. The government-run infrastructure produced chronic power outages, shortages of food, housing shortages, escalating crime, and anemic economic growth outside of its oil-supported activities.
Zimbabwe: 68% of the people are below the poverty line. This resource rich country was once the breadbasket of the region before the regime of Robert G. Mugabe took power in 1979. His tyrannical rule has ruined the country. In 2000, Mugabe embarked on redistribution of the land. This drove out white farmers and ruined the economy. Massive shortages followed. In 2005, Mugabe’s political machine corrupted the constitution, so his regime could amend it at will. That same year he embarked on “Operation Restore Order,” and in the name of urban renewal he destroyed 700,000 homes and businesses of his political opponents and those who voted for them. In 2007, Mugabe imposed price controls that panicked the nation, and store shelves were emptied in hours – and stayed that way for months. Inflation shot up to 1,700% and unemployment and underemployment stood at 95%. Life expectancy is one of the lowest in the world an average of 51 years for both men and women.
A SUCCESSFUL COUNTRY:
Peru: After decades of extreme totalitarian governments and ruthless insurgencies, positive changes came to Peru. The economy was freed to promote business and the government was finally decentralized. This triggered a wave of sustained economic growth. From 2003-2011, the country averaged a 7% growth rate, one of the fastest in the world. At the same time, Peru cut its poverty rate in half. Peru gave credit for its economic turnaround to a political choice. Instead of following its neighbors – Venezuela, Ecuador, and Bolivia – into socialism, the country instead chose freedom. “We’ve learned from our mistakes,” say Francisco Sagasi, an analyst in Lima. “No one is pushing for nationalization here. Everyone here knows that you have to have sensible economic policies from top to bottom.” Peruvians hate socialism.
Source: The Naked Socialist by Paul B. Skousen
One hundred and fifty years of experiments with socialism in dozens of countries, large and small, proved that whenever socialism is applied, economic disaster, even to the point of starvation follows.
Source: The Problem with Socialism by Thomas J. DiLorenzo
The unabbreviated version of the above can be found in the pdf document below.
TRIED, BUT FAILED EVERY TIME OVER 150 YEARS – EXCERPTS
From: The Naked Socialist
THE RISE AND FALL OF SOCIALIST EUROPE: There is an eerie similarity between today’s decaying European Union and the failed Soviet Union. Both attempted to amalgamate a variety of sovereign nations, each with its own unique culture, history, economy, resources, and national work ethic into a simple economic and political power. Both empires adopted a common currency – the ruble for the Soviets, and the euro for the Europeans. Both adopted central ruling bodies to act in behalf of the individual nations. And both started to crack up after about six decades. When the international debt crisis of 2008-09 forced the EU to examine its profligate ways, the long-ignored wreckage was massive – deeply entrenched unemployment, shrinking tax revenues, bloated budgets, growing numbers of retirees, exploding numbers of pensions coming due, and heavy welfare demands. People weren’t dying fast enough. Longer life expectancy, lower birth rates, low economic growth, lack of productivity, too much reliance on services, lack of manufacturing, and all the problems and complexities that followed, exacerbated the rapid drain on the treasuries.
The Same Thing All Over Again: “Why do I have to work and pay for someone else’s luxury? Why don’t they work and pay for their own?” Such is the nature of socialism in Europe and around the globe. People come to expect certain services from their governments. And when taxes and borrowing don’t cover the costs, economic reality forces governments to take a few steps back and reduce health coverage, pension plans, insurances, support for assorted projects, etc. And how do the people respond? With riots in the streets. It takes very little time for the entitlement mentality to grow oblivious to the basic economic realities of life; they think welfare is their God-given right.
A SNAP-SHOT OF WORLD SOCIALISM: The modern welfare state is in a death spiral. It has created an expectation among the populous that it can’t fulfill. The result has been varying degrees of enormous national debt, complicated by aging populations, low birth rates, huge budget deficits, and national demands for more government intervention to solve the mess. That’s what socialist do.
Democratic Socialists Countries: In such countries people vote for socialistic policies. In general, it has deeper involvement of the masses who vote democratically for policy instead of relying on an elite class of leaders to impose it. Democratic socialism means voting to be impoverished and miserable rather than having it forced upon you.
France: Welfare costs—28.5% of GDP (#3 in world). The second largest economy in Europe was stagnating by 2011, teetering on the brink of a major recession. In response, France turned to raising the retirement age from 60 to 62, eligibility for pensions from 65 to 67, raising corporate taxes, and raising taxes on consumable goods (except groceries). But welfare and pension expenses had already crushed the nation’s ability to prosper. By 2011, those costly pensions could no longer be sustained. Despite the dire necessity, the public was outraged at the announced cutbacks. Strikes of 1 to 2 million people took place several times across the country that included school students, truck drivers, teachers, train drivers, postal workers, and more – all in response to the government’s attempt to cut back spending and borrowing.
Germany: Welfare costs – 27.4% of GDP (#4 in world). Just before the war, the National Socialist government wanted to create beautiful, ordered cities with large, but controlled populations. This so disrupted the people that they rejected central planning altogether. Then came one of the most murderous socialist in history – Adolf Hitler. Today there remains great bitterness and resentment toward central planners who take away local decisions and desires. Although socialist parties occasionally rise to take power, the Germans jealously guard their freedoms, and have worked hard to prosper despite the impositions of government. The Germans probably hate socialism, but they’ve embraced many of the same costly government security nets that are crushing other economies in Europe and around the world.
Greece: Welfare Costs – 24.3% of GDP (#10 in world). The ruinous outcome of over-promising a mountain of perks and pensions and national care took center stage in 2011-12. Faced with a half-a-trillion debt, the Greek parliament tried to cut back its expenses, so the nation wouldn’t default on its loans and thereby cause a chain reaction of defaults throughout Europe (many were invested in Greece). The outgoing socialist government failed on its promise to privatize many nationalized parts of the economy – a promise made to stimulate economic growth. In return for more borrowed money to stay afloat, the government promised to cut public spending by $20 billion and raise taxes by the same amount over a five-year period. The resulting burden place on society was grating. Property taxes had to go up, consumption taxes for restaurants and bars rose from 13% to 23%, new taxes on luxury items were imposed, public wages were cut by 20%, about 30,000 public workers were to get only 60% of pay, all temporary public sector workers were to be laid off, health-care spending and Social Security were all reduced, pensions were to be cut 20%, the retirement age was raised to 65, and the government planned to sell off nationally-owned utilities to private investors. The reaction of the people? With unemployment over 18%, there were bloody riots and protests for weeks.
Italy: Welfare costs – 24.4% of GDP (#9 in world). Similar to Greece, the financial crisis that hit Italy extracted enormous costs and forced a turnover in the government. The public debt was almost 120% of GDP. Cuts across the board, plus increased taxes and shrinking the government was their latest plan. And what did the Italians think of their governments efforts to rein in the extravagances? Riots and protest in the streets – a demonstration that Italians love socialism.
Sweden: Welfare cost – 28.9% of GDP (#2 in world). This nation of nine million enjoys a degree of prosperity but at a huge personal cost. The country owes an enormous debt (15th highest in the world) and its people carry a load of taxes that consumes up to 60% of the average income. Add to this the sales tax of 25% build into the price of consumer goods, plus 1/5th of the working-age people on welfare, a third of everyone working for the government, and a population growth rate almost flat. Plus 13% of its population is foreign born many of whom are refugees from the Balkans, Africa and the Middle East coupled with Sweden having one of the highest disparities between immigrant (most of whom are on welfare) and native-born unemployment in the developed world. The Sweden model is on socialist skids. Starting in the 1990s, Sweden began scaling back its socialist government from the oppressive heavy-handedness of the 1960s. The results were outstanding. School vouchers created competition among educators to improve quality. Health care and pensions became partially private, giving flexibility to people’s choices for when they retire. The public transportation systems were returned to the private sector, including the rail lines. The center-right government that came into power in 2006 was reelected in 2010 with goals to continue privatization and reduced taxes. A majority of Swedes still love socialism, but with each move toward economic liberty, the country grows stronger.
United Kingdom: Welfare costs – 21.8% of GDP (#14 in world). In 2010, Britain worked to reduce its yearly welfare costs. With 1.4 million receiving jobseekers’ allowance, the new plan required that each welfare recipient perform at least 30 hours a week in mandatory work activity for the month. If they didn’t put in the hours, they would risk having their welfare checks stopped for at least 3 months. By 2011 conditions worsened and Britain planned to cut 490,000 government jobs, cut about 20% from government departments and raise the retirement age to 66 by 2020. Slashing the disability living allowances and welfare payments was expected to push 400,000 back to work.
United States: Welfare costs – 14.8% of GDP (#26 in world). America’s welfare system is enormous. It involves six top-level departments that run more than 70 programs. Many recipients of welfare receive funds from several departments at the same time. Welfare in the U.S. has become an enormous drain. Study after study, expert after expert, all said the same: When people are paid not to work, that’s exactly what they’ll do.
All Other Varieties of Socialist Countries:
China: Historically, in 1994 it was estimated that the body count from socialism’s tyranny in China was 72,260,000 people, probably a low-ball figure, allied from 1949 – 1980. Chairman Mao Tse-Tung’s “Great Leap Forward” to make China a military superpower in just five years caused at least 27 million deaths from famine and another 6 million deaths by execution. Mao’s massive push created a tremendous strain, diversion of resources and severe conditions of living and overworking. Giant communes for grain production were organized, with tens of thousands of family grouped at the farmlands, with all things communal.
Cuba: When the Soviet Union fell, Cuba was left handing without the financial support to keep its socialist economy running. Having all things in common means rationed food. Today, such basics as milk, bread, rice, eggs, and beans can be bought if there are any in the stores – otherwise, it’s a long wait in line to get small portions. Families are allotted 1 liter of milk per child per day. These scarcities drive a large black market for the basics. Teachers suffer on a salary of $15 a month and cannot obtain pencils, paper, crayons, or books, not to mention computers. Medical supplies are scarce, and modern medical technology such as MRI and CAT scanning equipment are almost unheard of. The water is turned off from midnight to 6 A.M. to save on energy, chemicals, and the machinery to pump it. Crime is rampant – corruption, prostitution, drugs, white collar crime. The Castro regime used torture, arbitrary imprisonment, false trials, and executions to keep the population under control. Civil activists protesting the communist leadership are routinely arrested and imprisoned. Cuba’s enslaved and threatened population has little option but to support socialism. To do otherwise means prison – or death.
Iran: Iran’s ruling Islamic regime has been forcing its people to obey religious tenets since the 1979 revolution. In the name of religious purity, the strait and rigid rule of oppression have crushed political dissident, journalists, students, bloggers, advocates for women’s rights and human rights, and people of minority faiths. Those speaking out against the regime are followed and harassed, arrested and imprisoned, and sometimes stoned or hanged. While imposing its purified Islam on the populous, it must crush all attempts to inject change. The rulers dictate everything – what people may wear, the books they may read, what television and movies they may watch, how they groom themselves, cut their hair, the food they eat, the company they keep. Journalists are jailed, anyone caught defaming the Supreme Leader or the declared tenets of Islam are jailed- or worse. Every pillar of socialism is present in Iran.
North Korea: By all standards or measurement, North Korea is the most oppressed nation on earth. Its government is a dictatorship that controls every part of a person’s life. If someone is arrested for disobeying the Dear Leader’s dictates, he or she goes to one of 210 detention centers, 210 labor camps, 27 holding facilities, 23 prisons, 6 political prison camps, or 5 indoctrination camps.
Russia: The motherland continued to suffer from the remnants of its abandoned socialistic heritage long into the new millennium. With reforms more than two decades in the making, the basics of property rights and protections continued to elude the nation. People expecting protection of individual rights found the judicial system sadly unpredictable, corrupt, and unable to handle sophisticated cases. After all those years of climbing out of the shadow of Communist dictatorship, Prime Minister Putin started turning back the clock in 1999. He retained the undercover forces of secret police to run things. He was accused of enriching his inner circle with profits from oil revenues. Russia has reduced its unemployment and rate of inflation, but its shrinking labor force, high levels of corruption, and aging infrastructure are remnants of its old way that need urgent attention. Historically, it was estimated in 1994 that the body count from socialism’s tyranny for all of the Soviet Union, not just Russia, to be about 58,627,000 people from 1922-1991.
Venezuela: 38% of the people are below the poverty line. When Hugo Chavez became president in 1999, he promoted his “21st Century Socialism” as the great solution to alleviate all social ills. The fruits of his brilliant solution rose no higher than all other failed socialist schemes. Reckless government interference in the economy, rampant corruption, price controls on nearly all goods and services, a corrupted legal system, a lack of respect for property ownership and contracts, and the constant threat of government confiscation of wealth and property has almost killed prosperity. Chavez trampled on human rights, outlawed free speech, abolished property rights, took over successful private businesses and nationalized them, and exhausted the national treasury to build up the military. In 2011, the country had the highest inflation rate in all of Latin America at 29%. The government-run infrastructure produced chronic power outages, shortages of food, housing shortages, escalating crime, and anemic economic growth outside of its oil-supported activities.
Zimbabwe: 68% of the people are below the poverty line. This resource rich country was once the breadbasket of the region before the regime of Robert G. Mugabe took power in 1979. His tyrannical rule has ruined the country. In 2000, Mugabe embarked on redistribution of the land. This drove out white farmers and ruined the economy. Massive shortages followed. In 2005, Mugabe’s political machine corrupted the constitution, so his regime could amend it at will. That same year he embarked on “Operation Restore Order,” and in the name of urban renewal he destroyed 700,000 homes and businesses of his political opponents and those who voted for them. In 2007, Mugabe imposed price controls that panicked the nation, and store shelves were emptied in hours – and stayed that way for months. Inflation shot up to 1,700% and unemployment and underemployment stood at 95%. Life expectancy is one of the lowest in the world an average of 51 years for both men and women.
A SUCCESSFUL COUNTRY:
Peru: After decades of extreme totalitarian governments and ruthless insurgencies, positive changes came to Peru. The economy was freed to promote business and the government was finally decentralized. This triggered a wave of sustained economic growth. From 2003-2011, the country averaged a 7% growth rate, one of the fastest in the world. At the same time, Peru cut its poverty rate in half. Peru gave credit for its economic turnaround to a political choice. Instead of following its neighbors – Venezuela, Ecuador, and Bolivia – into socialism, the country instead chose freedom. “We’ve learned from our mistakes,” say Francisco Sagasi, an analyst in Lima. “No one is pushing for nationalization here. Everyone here knows that you have to have sensible economic policies from top to bottom.” Peruvians hate socialism.
Source: The Naked Socialist by Paul B. Skousen
One hundred and fifty years of experiments with socialism in dozens of countries, large and small, proved that whenever socialism is applied, economic disaster, even to the point of starvation follows.
Source: The Problem with Socialism by Thomas J. DiLorenzo
The unabbreviated version of the above can be found in the pdf document below.
| 3_soc_long_tried_but_failed.pdf |