Ask Americans, particularly young Americans, whether or not socialism is a good idea and some will say yes. When you ask why, they offer vague notions about equality but socialism does not deliver that. Socialism relates to government control of the economy and has little to do with equality. Socialism in any form, quickly becomes undesirable. Here are compelling reasons why.
1) The redistribution aspect of socialism means that the government takes money from one person and gives it to another. Elsewhere, this would be seen as theft, but governments regard it as some kind of justice.
2) Socialist policies result in higher taxes. If people are paying half or more of what they have earned, how enthusiastic will they be about working more, to benefit themselves, or their organizations, or society in general?
3) For socialism to be effective, a government needs to be nearly omniscient in its ability to equitably allocate the country’s wealth. At no time in history has this occurred, so why would it suddenly work now?
4) Socialist run governments seek equality of outcomes, which is always ruinous. Eventually, all citizens are equally impoverished, dispirited, and distraught.
5) Socialism claims to offer necessities such as food, clothing, shelter, education, transportation, and healthcare for free, but it has to tax more and more.
6) Socialism is monopolistic, where legislators have the ability to increase prices, reduce the quality of goods and services, and yet remain in power because, indeed, competition doesn’t exist.
7) Socialism hampers effective medical care, as witnessed at government-run health facilities over many decades, which have resulted in more waste, long lines for patients, questionable practices, scandal, and corruption.
8) Some people believe that socialism leads to a better environment. Globally, the most restrictive and anti-free market nations are the most impoverished and the most polluted.
9) Socialism thwarts the ability of markets to function effectively. Thus a general decline follows in what is produced, and how well it is distributed. Since socialism is contrary to the profit motive, there is no drive for improving lives or wealth creation.
10) Socialist governments grab more and more power and act contrary to the needs of its citizens. Where socialism reigns, people are discontent.
Scandinavia is No Beacon
Proponents often point to Scandinavia as a model for socialism, but their tax rates are exceedingly high. In Denmark, it is well above 50%, not merely for the rich. Scandinavia also has a value-added tax which commands 25% of everything including food. Hence, the value added tax is regressive, impacting lower income people because they’re spending a larger portion of their income.
People claim that healthcare is free in the Scandinavian countries, but it’s paid through taxes and the coverage is not as good as in the U.S. The wait times are longer and the most prosperous citizens purchase private health insurance because their public health coverage is simply inferior.
And Now This
Even larger issues linger, as to why socialism always fails: Socialism dampens the human spirit, thwarts the drive towards excellence, and convinces entrepreneurs to not proceed boldly.
Socialism, even Bernie Sander’s ‘Democratic socialism’ if such a government actually exists, ensures that despite your brilliance, hard work, and level of calculated risk, you will not be rewarded accordingly. The government will impose limits on what you can do, where you can operate, how much you can expand, who you need to hire, and how much you can earn.
Perhaps worst of all, socialism requires that someone make judgment calls – decides who the winners and losers are, who gets funded and who doesn’t, whose idea merits exploration and whose does not, and what’s good for the populace and what isn’t.
In capitalism, one might encounter the depravity of Cardi B, the theatrics of Samantha Bee, and the degeneracy of Hunter B. Yet, capitalism is better by far than all the rest. It is the only system that has brought prosperity to legions of citizens in the countries.
Considering the breakthroughs benefitting people around the globe, such as the smartphone, the Internet, pacemakers, or Lasik surgery, what socialist society has ever spawned innovative entrepreneurs found in every state and every county in America?
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