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3/7/2012 10:16:30 PM
Posted: 6 years ago
Lol the economics forum actually gets post no because of star! Anyway I will just coy and paste from my blog... I don't care about typos.


State control of the economy


Free markets

Why socialism is a failure:

Frankly, it is socialist economics, though you can try to paper over that fact all that you want.
When a government intervenes in a market, it upsets the dynamics of a market and forces inefficiencies. In fact, I would strongly argue that government is responsible for the high health care costs today. [1]

(health care industry is a good example)

As soon as you get government involved, there are mandates of what plans have to include, it increases prices and consolidates supply. That is bad for the consumers of health care. [1]

Same applies to other industries

Not only that, but the government would require taxes to fund such programs. Lets think about that word. It has two meanings which are very closely related. On one hand, it means a government forcibly taking money from an entity. At the same time, it means to place an undue burden on an activity which ultimately limits it. In fact, taxation reduces your economic freedom, placing an undue burden on your ability to prosper while a parasitic government leeches from you. Time and time again has shown that a reduction in tax rates will stimulate the economy and a production of more revenue. [1]

So socialism raises taxes, ruins industry, and forces you to buy products.

The solution for the 21st century isn't more government interference in your life and less freedom, it is less government interference and more freedom. [1]

Socialism is bad because it is condescending, inefficient, and immoral.

Although it sounds appealing on paper, it just doesn't work in practice. for one big reason, brain drain.

In a socialist society smart people won't get rewarded for their efforts, they get the same pay as the cashier. So they move to places where they can get more money, so the smart people leave. Dumb people go to the socialist areas because they earn more there then they can in America. So in socialist states, smart people leave, dumb people enter. Hence, brain drain.

Socialism is bad because it is condescending. Socialism takes away the liberty to decide how you wish to spend your money.

Socialism is inefficient because it makes economic calculation impossible. Although you can predict it well, how it's gonna end up in 30 years is harder to do.

Socialism is immoral because it takes the smart people's success and gives it to the poor, which sounds great, but this causes brain drain. As stated above.

Now this is a lets compare DP wealth per capita
USA = 46,860
China = 7,544

Uk (economically capatilist, not socialy) = 35,059
laos = 2,449

Source: international monetary fund (in US $)

So in capitalist countries you make more money, socialism = less money.


Its sad, socialism was the most common system historically, sadly it doesn't work. The USSR, 3rd world country other than their military, then collapsed. Vietnam, socialistic, collapsed into semi-socialism, still struggling. China, where struggling, passed CAPITALIST reform allowing entrepreneurship. Without that capitalist reform they would still be struggling, socialism failed there, they fixed it with a little capitalism. Greece, semi socialist, look what's happening to them. Look at history, history repeats itself. And if that's true then socialism always fails.

"From each according to his ability, to each according to his need" –Karl Marx

"…I think when you spread the wealth around, it's good for everybody." –Barack Hussein Obama to Joe the Plumber

Both quotes call for the redistribution of wealth. Both quotes talk about who needs to give the wealth and who needs to get it. However, neither quote addresses the most important questions: Who gets the wealth ? Why do they deserve it ? [2]

So tell me: Why does Subject A have to pay for B, C, or D's crap ? Why does A owe B,C, or D anything ? [2]

So hard working person a, rich, should he give his money to B or C, or even welfare D? if he chooses to, but under socialism it is forced. Capitalism lets you choose, socialism just forces you. Also either way, why do they deserve A's money?

There are no answers to any of the questions that socialism brings up. Yes, we must love our neighbor as the Bible commands, but "love thy neighbor" does not mean "support thy neigbor while he sips a margarita on a hammock while you work yourself into an early grave." Ethically, as a society, we have a responsibility to care for those who TRULY can not care for themselves, (wounded veterans, children, the very elderly, the infirm, etc.) but we have no responsibility to those who refuse to do so, like Subjects B, C, D. That's why socialism sucks. It can't answer the most basic of questions: Why

Well I have proven that socialism is bad. Time for capitalism:

The Glass-Steagall Act was created in 1933 in response to the Great Depression and gets its name from the two main sponsors of the legislation. Senator Carter Glass, a former Treasury secretary and the founder of the Federal Reserve System, and Henry Steagall, a House of Representatives member and chairman of the House Banking and Currency Committee, drafted and pushed to have this legislation passed. It created a separation of commercial banking and investment banking, by not allowing financial institutions to do both. Once enacted financial institutions had a year to decide if they were going to be one or the other. In the fallout of the Great Depression it was determined by many that large commercial banks became too greedy and speculative, and this act sought to tightly curb and control the activity of banks and investments by separating them, only allowing 10% of a commercial bank's revenue to come from securities. Many in the financial industry saw this as too harsh a judgment, and Glass himself sought to repeal the act shortly after it's passage claiming it was an overreaction to the crisis. [3]

Good example why governments should get out of business.

Overall, capitalism is good. The wealth and relative high standard of living we all enjoy in this nation is evidence of that. There is nothing wrong with big business, big money, and big banks. They have enabled our country to prevail in times of war and threat. Pure grit and determination alone didn't enable us to simultaneously defeat the Nazis and the Japanese in World War II. Both were very savvy, with well planed tactics and engineering. The simple truth is we out spent them, and out produced them. We cranked ships out faster than the German U boats could sink them. After Pearl Harbor we rebuilt and rearmed our Pacific fleet in record time. Technology that was outdated for us at the beginning of the War quickly became state of the art, far surpassing the abilities of our enemies'. We had a ton of production capability with a big checkbook to throw at the effort.
In the 1980s it was capitalism that defeated the Soviet Union. Yes Ronald Reagan had a high budget for defense, but it was still a fraction of our budget and very manageable. However, the Soviet Union had to spend a ridiculous percentage of it's GNP in an attempt to just keep pace. They couldn't do it because they weren't capitalists. It broke them down, forcing a collapse. Their population started demanding certain things from their government, and became more and more discontent with their standard of living. How is that for a war? Not a single shot fired! Zero troops mobilized! All capitalism and big money. Don't mess with a good thing. Money keeps a nation strong, people fed, and a military at the ready. [3]


next post...
"A trend is a trend, but the question is, will it bend? Will it alter its course through some unforeseen force and come to a premature end?" -- Alec Cairncross
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3/7/2012 10:16:49 PM
Posted: 6 years ago
Let's look at history here:

1. Help lead to the industrial revolution, a huge economic growth time. Production increased end unemployment hit almost zero.
2. Heavy mental was created by capitalism due to the industrial age and other research projects that wouldn't have happened under socialism.
3. America is the richest country in the world
4. Capitalism creates freedom
5. Created ou rights
6. you should thank capitalism for everything you have earned. History repeats itself, then stick with this system, and all of these will multiply.

The prevailing interest among humans in this world is self-interest. Anti-capitalists call it greed. Religion calls it sin. Science calls it survival. In fact, few philosophies refer to self interest in itself as something good, but it is inescapable. You cannot educate people out of self-interest. It is the natural order of human behavior and the only way to tame this beast is to work with it. Dr. Walter E. Williams describes how capitalism works with self-interest: [4]

"Capitalism is relatively new in human history. Prior to capitalism, the way people amassed great wealth was by looting, plundering and enslaving their fellow man. Capitalism made it possible to become wealthy by serving your fellow man." 2

Don't take this as an argument that capitalism is perfect or produces perfect results. Far from it. However, capitalism is the closest thing to a perfect economic system we will ever see on this earth. [4]

Capitalism is the only economic system in the world that promotes voluntary excellence in individuals. Individuals are rewarded based on the amount of value they provide to the market. Capitalism provides incentives to be great and invent things that were never thought possible. It is a system that promotes growth among individuals and society as a whole. [4]

Some people call this greed, yes IT IS, I WILL NOT DENY. But, what do humans want most? Money. Capitalism gives them that incentive, socialism doesn't. Without incentive, nothing will work as well. Money=work hard make things. No money=lazy. So socialism promotes lazyness because the people see that there is no benifit. Capitalism says "hey we have incentives" and the people say "If we work we get money! Yay lets work".

"It is not from the benevolence of the butcher, the brewer or the baker that we expect our dinner, but from their regard to their own interests." -Adam Smith

So economically socialism sucks, capitalism rocks. Also if you look above which one sounds better? Support capitalism, support the economy, support money, support freedom. Socialism isn't good in practice, only on paper. Capitalism is good on both. This concludes.

sources: [1] [2] [3] [4]
"A trend is a trend, but the question is, will it bend? Will it alter its course through some unforeseen force and come to a premature end?" -- Alec Cairncross
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3/7/2012 10:22:11 PM
Posted: 6 years ago
At 3/7/2012 10:21:55 PM, jimtimmy wrote:
Very good.

I'm learning XD
"A trend is a trend, but the question is, will it bend? Will it alter its course through some unforeseen force and come to a premature end?" -- Alec Cairncross