04/21/2017

Why Politicians Win (And Workers Lose) Under Socialism

Hans-Hermann Hoppe, Mises Institute

Socialism leads to the politicization of society. Hardly anything can be worse for the production of wealth.

Socialism, at least its Marxist version, says its goal is complete equality. The Marxists observe that once you allow private property in the means of production, you allow differences. If I own resource A, then you do not own it and our relationship toward resource A becomes different and unequal. By abolishing private property in the means of production with one stroke, say the Marxists, everyone becomes co-owner of everything. This reflects everyone's equal standing as a human being.

The reality is much different. Declaring everyone a co-owner of everything only nominally solves differences in ownership. It does not solve the real underlying problem:  there remain differences in the power to control what is done with resources.

In capitalism, the person who owns a resource can also control what is done with it. In a socialized economy, this isn't true because there is no longer any owner. Nonetheless the problem of control remains. Who is going to decide what is to be done with what? Under socialism, there is only one way: people settle their disagreements over the control of property by superimposing one will upon another. As long as there are differences, people will settle them through political means.

If people want to improve their income under socialism they have to move toward a more highly valued position in the hierarchy of caretakers. That takes political talent.

Under such a system, people will have to spend less time and effort developing their productive skills and more time and effort improving their political talents.

As people shift out of their roles as producers and users of resources, we find that their personalities change. They no longer cultivate the ability to anticipate situations of scarcity to take up productive opportunities, to be aware of technological possibilities, to anticipate changes in consumer demand, and to develop strategies of marketing. They no longer have to be able to initiate, to work, and to respond to the needs of others.

Instead, people develop the ability to assemble public support for their own position and opinion through means of persuasion, demagoguery, and intrigue, through promises, bribes, and threats. Different people rise to the top under socialism than under capitalism. The higher on the socialist hierarchy you look, the more you will find people who are too incompetent to do the job they are supposed to do. It is no hindrance in a caretaker politician's career to be dumb, indolent, inefficient, and uncaring. He only needs superior political skills. This too contributes to the impoverishment of society.

Read full article



You May Also Like:

McCain Strikes Again: Won’t Support New GOP Health Care Bill, Imperiling Passage [Watch] Christina Wilkie, CNBC

Russia Didn't Hack The Election. Obama Did. Daniel J. Flynn, American Spectator

Jimmy Kimmel, My Wife Has Cancer, I Have A Pulmonary Embolism. But I Still Oppose Obamacare [Watch] Erick Erickson, Fox News

Memo To Jimmy Kimmel: ObamaCare Doesn't Pass The 'Jimmy Kimmel Test' Either Investor’s Business Daily

Demographic Doom And The Welfare State Daniel J. Mitchell, International Liberty

Betsy DeVos Withdraws 'Dear Colleague' Letter That Weaponized Title IX Against Due Process Robby Soave, Reason

It's The Corporate Tax Rate, Stupid Tony Mecia, The Weekly Standard

Why Donald Trump Should Celebrate The 300th Birthday Of The Gold Standard Ralph Benko, Forbes.com

Sharyl Attkisson: Intel Officials Said Public Would Be Stunned By Level Of Spying On Citizens [Watch] BillOReilly.com

Are We Nearing The End Of Occupational Licensing? Logan Albright, Conservative Review

Regulator Revoke Uber’s License In London Adam Sarariano, Bloomberg

Rep. Maxine Waters: 'Impeachment Is About Whatever The Congress Says It Is’ [Watch] CNSNews

Scott Adams Tells You How The Rocket Man Linguistic Kill Shot Is Working [Watch] Today Live With Scott Adams

Poll: Kid Rock Riding 'Trump Train' To US Senate, Leads GOP Field Paul Bedard, Washington Examiner

Florida Residents Warned They'll Be Ticketed For Hurricane-Damaged Homes TheAntiMedia.org

Princeton’s Campus Newspaper Disbands Editorial Board For Right-Leaning Opinions Jennifer Kabbany, The College Fix

The Emmys Are A Symptom Of A Dying Common Culture RT Vaden, Acculturated

Patriotic Video Shows Mike Rowe Singing National Anthem At Baseball Game [Watch] Martin Walsh, Western Journalism

Faced With Fines, Trump Voter Refuses To Take Down Her Massive Signs [Watch] Alex Thomas, Rare

Stop Conflating Inequality With Poverty Bryan Cheang, Foundation for Economic Education

For More go to the Home Page >>>

Search

SIGN OUR PETITION

FreeMarket Central

TELL CONGRESS: STOP THE POLITICS.

PASS A HEALTH CARE BILL THAT PUTS PATIENTS FIRST



Americans need a health care bill that serves needs of individuals—not those of Washington and big corporations.

 

Read more

Bookshelf

FreeMarket Central

Some titles recent, all recommended -

Special Video Feature

FreeMarket Central

Voices From The 2017 International Students For Liberty Conference

In Search Of History

When America Was Truly The Land Of Opportunity

For [early immigrants] America was truly the land of opportunity. For the first time in their lives, many were truly free to pursue their own objectives. That freedom released the human energies which created the United States. There were few government programs to turn to and nobody expected them. But also there were few rules and regulations. There were no licenses, no permits, no red tape to restrict them. They found, in fact, a free market, and most of them thrived on it. 

-- Milton Friedman,

Shadow Stats Snapshot


FreeMarket Central

ShadowStats alternate economic indicators are based on the methodology of noted economist John Williams, specialist in government economic reporting.

  • Unemployment:
    FreeMarket Central BLS: 4.44%
    FreeMarket Central Shadow Stats: 22.2%
  • Inflation:
    FreeMarket Central August Year-to-Year: 1.73% (CPI-U*)
    FreeMarket Central Shadow Stats: 9.4%

*[cpi-u is the Bureau of Labor Statistics inflation rate for all urban consumers]