Archives for category: Economics

Why do libertarians focus so much on taxation?

…as answered on Quora….

Libertarians pride themselves — not unreasonably — on their principles, which they say make sense from root to leaf of society. Whereas most of politics is argument over fruits and twigs, libertarians aim to go much deeper, down the trunk to the structure in the soil.

Politics is the art of influencing the behavior of the State, and taxation is the most basic state activity. Organizations without the power to tax do not qualify as States. Libertarians extol voluntary (reciprocal; multilateral) interaction, and correctly point out that taxation is hegemonic . . . based, ultimately, on initiated violence and the threat of it. So libertarians look at taxation suspiciously — at best.

Classical liberal theorists were of a similar mind. French economist J.-B. Say, for example, argued that “A tax can never be favorable to the public welfare, except by the good use that is made of its proceeds.” The idea here is that taxation itself is the worst way of going about building a civilization, but if there is no other way to protect the public, then tax, and expend the conscript resources only on projects (rule of law, national defense, say) that truly benefit everybody.

Libertarians often argue that most government spending, these days, does not fill the old liberal standard of benefiting everybody. Instead, most spending of taxed resources aids some at the expense of others, and amounts not to serving a plausible public interest, but, instead, serving private, or factional interests.

Therefore libertarians argue against all variants of statism on grounds that would have been familiar to the old liberals, often making arguments like this: government funds built on taxes must inevitably present a “tragedy of the commons” where individuals and factions fight each other to exploit the common resource each for maximum advantage, gaining more than the other — or at least not gaining too little to become a net taxpayer. This endangers the common resource — just as overgrazing of a common field, or over-fishing of a commonly owned lake, river, or stream — and can have the effect of favoring the greedy and powerful over the masses, and eventually leading to the degradation of the commons.

Classical liberal economists, individualist social theorists, and libertarian political philosophers have been elaborating variations on this theme for centuries. These arguments have demoralized statists, over and over, to the point that they turn to obscurantism (Marxian fancies or Keynesian farragoes) or mere name-calling, in response. (Statism is the idea that the public good can be served by massive state regulation and spending, all dependent upon taxation.)

But this is mostly conflict over branches. Down at the root libertarians emphasize what the old liberals usually just “understood”: taxation is expropriation by force, and is an intrinsically bad way to run a civilized enterprise.

And, on this level, we see many to the far left taking the opposite approach. It is not uncommon, these days, for “progressives” and socialists and other statist politicians to look upon taxation as a good thing in and of itself. It is good to take most of the wealth of some people, and some of the wealth of most people, and not only to “do good” with that wealth. People should not have that wealth. They do not deserve it. They cannot properly use it. Marshaling the State to confiscate this wealth is a virtuous and indeed noble activity!

President Barack Obama took that tack when he argued that the capital gains tax rate should be kept high or even raised even if lower rates would yield more revenue. He flouted J.-B. Say’s rule; he flaunted the thief’s ethos, right in our faces. And when he and Senator Elizabeth Warren floated the “you didn’t build that” meme, they were carrying on that fundamentally illiberal program. It is an attack on voluntary society and an upgrading of the State to a kind of super-paternalistic (and maternalistic) Authority.

Libertarians focus on taxation to counter these fiends. Taxation is the key to the whole super-state mania. Libertarians see in the statist defense of the intrinsic righteousness of taxation an assault on civilization’s liberatory principle: the growth of reciprocity, voluntary cooperation, and peaceful relations. And libertarians see in the lip-smacking lust to ply the State to take other people’s money as the grossest corrupter of morals: the celebration of greed and envy and malice under cover of bogus “social justice” and pharisaic “caring.”

Libertarians oppose the demagoguery behind super-state transfers of wealth, hoping that humanity can avoid the cementing of tyranny by means of the greatest long con in history.

The concluding pages of Politics in Plural Societies: A Theory of Democratic Instability (Rabushka and Shepsle, 1972) are interesting, and shed much light on recent American history. 

Alvin Rabushka and Kenneth A. Shepsle (1972), p. 217.

The reasons for the instability of democracy in what we today call “multicultural” societies is pretty obvious from even the most basic economic point of view:

  1. A set of wealth transfer programs expresses a basic set of values, but every culture and ethnicity has a different complexion of values (so do individuals, of course, which makes any forced wealth transfer scheme unstable even in a monoculture, but this problem is ramped up another notch in the plural society). When we force different groups to conform to a patterned set of wealth transfers and other ‘public goods,’ we compel folks to compromise on their values, with some people getting programs more in accord with their values than others. This breeds resentment and conflict and even violence.
  2. Disparate values also disenable cultural checks on the Tragedy of the Commons. If we see the public goods that a State attempts to provide as a commons, then the communal checks on abusing the common resource work less well when there are separate ethnic and other cultural communities. As a good Swede you may feel some compunction about mooching off the taxpayers, but add Finns and Muslim immigrants to the mix, and that moral check on over-use and over-access — the ‘over’ leading to instability, to draining the resource — may turn to a beggar-thy-neighbor approach, as separate groups aim to game the system by abuse. Further, in a democracy where the people set policy to some degree, there develops a beggar-thy-neighbor approach to rig the system in favor of each group at the expense of others. This of course leads to outrageous taxation and financial work-arounds, like central bank credit manipulation.
  3. Our naturally limited empathy becomes even more limited when we deal with different and hard-to-understand out-groups, and forcing us into collective solutions across cultural divides actually makes for more friction not less because of over-stressed empathy.

So, what to do? The authors’ final three options for culturally pluralistic societies are (a) reduced levels of public goods provision, leaving such goods to markets (laissez faire) [and non-political community action], (b) nation-building to create homogenous ethnic societies, and (c) finding enemies to fight against, thus uniting the populace by forcing in-group solidarity among disparate elements via upping the general fear level, finding commonality because of “existential threats.”

Alvin Rabushka and Kenneth A. Shepsle (1972), p. 216.

People generally do not want laissez faire because it means they have to provide value for value, and government constantly tempts them to seek benefits at others’ expense. This is why we have welfare states, for wealth transfer systems promise magical solutions and allow folks to channel their greed in socially acceptable ways, farding it up as “social justice.”

Nation-building to achieve ethnic unity requires either genocide or partitioning down to possibly really low levels. The former is of course horrible and the latter has the same problem that laissez faire has: it removes temptation to gain at others’ expense. People demand to yield to temptation.

But there is more!

Alvin Rabushka and Kenneth A. Shepsle (1972), p. 217.

Finding enemies to fight has been of course the dominant route for America for the past century, and the success of World War II has stuck the country in the mythology of a unifying righteous war, with everybody still hating on the Nazis, despite no obvious widespread Nazi sympathies, for instance. But since WWII, however, the plausibility of constant warfare has become shakier and shakier, while attempts to focus on causes like “global warming” are marred by the transparency of the political interest, the obvious problem of the science being dubious, and the disturbing spectacle of lying scientists and lunatic religiosity among the political pushers. An extraterrestrial threat — either from comets and asteroids, on the one hand, or UFOs on the other — are apparently being worked on now in the Deep State. But in a global society all these options are difficult to achieve because they depend on creating a consensus where consensus is not rationally warranted. Hence the continual disinformation and psy-ops. Which can be seen in the recent pandemic menace. And all this helps explain why we have a warfare-welfare state in America, not just a welfare state.

If you cannot obtain stability in a large population via normal democratic methods, then we see attempts to use anti-democratic means, such as orchestrated protests and riots, all-or-nothing political machinations, the increase in Executive discretion, cultural totalitarianism (p.c.), policy making by judges, and the very existence of an administrative state and its secretive operations (Deep State).

Localizing democracy and promoting federalism in a general context of laissez faire is, to me, the most obviously humane solution. But people are greedy and angry and resentful, as well as well-programmed by deeply partisan and increasingly anti-educational schooling, so such options find few adherents. It is a pity that this “easy way out” comes at great enough cost that few people see any advance in such a “minimax.”

Of course, Rabushka and Shepsle wrote 50 years ago, and their insights did not win the day. What seems to be winning is a very different program: “multiculturalism.”

Today’s much-touted multiculturalism, as I see it, isn’t what it says it is, i.e., for multiple cultures co-existing. Instead, it is a political movement that uses a set of out-group cultures as an excuse to revolutionize the State and inflict an ideological monoculture, using techniques familiar from limited access societies of the distant past, and from more recent totalitarian states. 

A workable multiculturalism worthy of the name would decrease (not constantly increase) the general level of legal obligations and the amount of public goods provided, not requiring disparate individuals and groups to share resources with people of different values. The rule would be toleration, not compulsory “acceptance” and marginalization of all who resist.

This is very basic stuff. I did not need to read Rabushka and Shepsle to have a handle on it. Indeed, a number of years ago I wrote an essay on “The Comedy of the Commons,” and floated it by a few friends. It covered most of this. Or, I think it did. I cannot now find it!

The upshot of all this is not hard to understand. I have no problem with multiple churches in my neighborhood, or a vibrant pop music scene featuring music I’ve no interest in, or a variety of family structures, from nuclear families, single-parent families, clans, and chain marriages. The idea is I don’t have to contribute to your cause, and you don’t have to contribute to mine. That would be true, tolerant multiculturalism.

The doctrine that currently goes by the name, however, is a changeling creature designed to destroy diversity in the name of diversity.

Indeed, it is no shock to witness a de-stabilizing ideology leap to deeply anti-social attitudes: street violence on the one hand, and ingratitude to benefactors (the rich, who pay the bulk of the taxes) on the other.

To witness post-modernist multiculturalists embrace policies that are obviously de-stabilizing suggests not only that some deep quasi-religious, even chthonian impulse is in play — a societal death wish? — but also that the Rabushka-Shepsle treatise needs more attention from today’s sociologists, social psychologists, historians and Public Choice economists.

twv

“The big lie about capitalism is that everyone can be rich but capitalism works only if the majority are kept poor enough to never quit working and accept distasteful jobs society cannot function without. If everyone were a millionaire, who would empty the trash or repair the sewers?”
Do you agree or disagree? Why?

…as answered on Quora….

Many distasteful jobs are well paid. Do you want to be a proctologist? I do not. And yet people who probe around in others’ anuses for medical purposes are not kept artificially poor.

Many, many high-paying jobs are jobs our society cannot function without. And not a few are distasteful to many, if not most. One reason many smart people do not go into politics, despite this profession’s long history of high spoils rates, is because it is disgusting work. Tedious. Morally ugly. Dehumanizing. And most people say politics is absolutely essential to modern society.

I would rather drive a garbage truck or sling cowshit in a dairy farm than serve in the Oval Office.

Or probe around in the above-mentioned orifices.

And let us say, arguendo, that more and more people found garbage collection and sewerage repair just too disgusting to hire themselves out for. If these jobs’ products remain demanded by people, the customers would indeed pay higher prices — and with a tight supply and higher demand, we can expect wages to rise in those fields.

It is worth noting that many dirty jobs actually pay pretty well. See Mike Rowe’s once-popular show, Dirty Jobs. Consider “the trades.”

To answer the original question in the affirmative is to take a conspiratorial view of wages. Those who believe such things should study economics, learn about “marginal productivity,” and put away silly hunches and prejudices.

But let us return to the first phrase: “The big lie of capitalism is that everyone can be rich. . . .” If by this one means “equally rich” (which probably is what is meant) I have to say: I’ve never heard anyone assert that this is what a market economy offers us. Equality of wealth is not possible — unless you flip that around: equality of dire poverty is possible.

And in societies geared to be extremely anti-capitalist — that is, in socialist societies — caste divisions and great disparities of wealth become quite large. Just think of Venezuela’s richest woman, the former president’s daughter, and contrast her with the masses of that beleaguered-yet-resource-rich country. Now starving, they no longer line up for food, they line up at the border, trying to exit the country.

Equality is not a function of nature. No society but the simplest and poorest sports material equality. Even in hunter-gatherer tribes there tends to be some startling inequalities. Markets reward performance on merit through that amazing filter, supply and demand. It is not equality that markets produce, but quality in general. And, as others have stated, we are a lot wealthier now than we used to be. There has been awesome material progress.

It is a pity that a progress in wisdom has not been nearly as marked. But, to some extent this is to be expected: education has been monopolized in public schooling as well as in limited-accreditation higher ed, to an amazing degree for well over a century — monopolized in the non-capitalist sector of society.

twv

Photo: Ralf, Flickr, some rights reserved
Why do most Americans consider Marxism evil?
…as answered on Quora.

Is that true?

If it isn’t true, it should be. Hundreds of millions of people died because of attempts to create socialist utopias by men who were inspired by Karl Marx, and who identified themselves as Marxists. Karl Marx, in his day, cooked up an alternative to liberalism and the rule of law. He ridiculed the very idea of “bourgeois freedom.” Hating the idea of private property, he believed that “society” should own the means of production. Though he said the ideal, end product of the revolution he promoted was a “stateless society,” he believed that there would first have to be a “dictatorship of the proletariat.” He advocated slaughter as well as expropriation to carry through on his “revolution.”

Power corrupts, you know: once power becomes concentrated in a dictatorship, of all things, it is really hard to dissolve it. The socialist tyranny quickly proved a palpable reality, in the case of its first instantiation, the USSR, while the promised stateless utopia has been shown up to be a mere fantasy. It never happened.

It could not happen the way Marx conceived it.

I need to repeat: the dictatorship notion — the “state socialism,” as it came to be called — was a recipe that could only end in disaster, with outrageous moral horror. And it did.

Liberalism’s rule of law establishing decentralized power structures and a distributed system of social organization is the main foundation of nearly everything good in modern life. The institution of private property that the rule of law protects allows human being to avoid tyranny as well as to advance out of poverty.

The communist idea of erasing the boundaries between people (by abolishing private property and the rule of law) and centralizing power in a unified State inevitably leads to murder and totalitarianism.

Besides, Marx’s crackpot notions — I do not think he was right about much of anything, really — are so off-base that attempts to enact his program can only lead to perverse results.

Anyone who knows the history of the Soviet Union and Red China knows enough to regard Marxism as pure poison. And if Marx’s contemporary Mikhail Bakunin could recognize the entelechy of authoritarianism in Marxian communism, we who possess the history as well as the theory to explain why have no excuse.

America was more resistant to communist ideas than most other countries in the last century. Americans, who inherit a form of government founded squarely in the liberal tradition of John Locke and Montesquieu have been immunized against the pernicious doctrine.

The only people of any significance who do not follow this line are those who have been baptized in the intellectually shallow waters of the modern university, where Marxism still thrives under taxpayer subsidy (what suckers taxpayers are). The universities do not let Nazis teach. For the same reason all the Marxists should be fired.

Yes, Americans should stop subsidizing the most murderous ideology ever cooked up by the mind of man. But though most Americans have little truck with communist ideas, they are so badly educated that they cannot see what is at stake — they do not understand how wrong it is to even pretend that Marxism is intellectually respectable in the slightest.

I define as “evil” all intentional harm done with malice aforethought. Karl Marx hated the rich and sought their destruction and expropriation; Marxists today are no better, and in one sense worse: they ignore the history that Marx himself could not know — though he should have foreseen, for it was not just Bakunin who saw it.* You have to be a fool not to see the inanity of the Marxian system. Or the evil.

Alas, fools there are aplenty — and some follies, such as socialism, turn fools into knaves, into terrorists and tyrants. Some follies are quite dangerous. And none is more dangerous than Marxism.

Most Americans have enough common sense to see through the communist buncombe. But I understand: our quasi-socialistic public schools and cult-ridden, subsidized institutions of higher learning can and have programmed many thousands of youngsters to grow up notseeing the obvious, even praising evil as though it were Goodness and Truth.

It is one reason I feel more at home among normal Americans than with the “college trained.” There is so much nonsense among the so-called “educated.”

Still, at least until recently, even most leftists could see though Marxism. But because they valorize collective action and state coercion over individual responsibility and voluntary community and free association, they have lacked the intellectual equipment to resist Marxism strongly enough.

And so that old evil doctrinal farrago seems to be coming back.

What a horror show.


* Consult Eugen Richter’s eerily prescient Pictures of the Socialistic Future (1893) for a fine example.

Laissez Faire edition, still available on Apple’s ebook platform.

Is it possible to reduce the world population by 50%? Isn’t world over population the cause of all the problems in the world?

…as answered on Quora….

Two questions, eh?

  1. Is it possible to reduce the world population by 50 percent?
  2. Isn’t world overpopulation the cause of all the problems in the world?

The answers are simple:

  1. Yes.
  2. No.

But there are complications:

  1. Many of the ways to decrease populations quickly, especially by half, are of the Thanos-or-worse variety. We do not want to decrease populations quickly. Gradually could be another story.
  2. As economist Theodore W. Schultz explained — and as Julian Simon demonstrated in a more daring and popular form — population is not the huge problem that neo-Malthusian alarmists say it is. Human beings, if they do not rely upon predation and parasitism, and have plenty of opportunities for market coöperation (trade), are what Simon calls “the ultimate resource.”

When we rely upon trade, we must be of service to one another. We engage in trade only when we expect to gain, that is, when both parties to an exchange expect to gain from it. I help you out if you help me. And the more trades occur, the more that competition for each others’ business hones our productivity. The more productive, the more advances in technique and technology we bring to the stock of civilization. This is progress.

Thomas Robert Malthus’s worry in his Principles of Population (1798) was that (a) the rate of agricultural advance would be outstripped by (b) the natural rate of human population growth. He was stumbling towards a modern conception of external economies, of the “market failure” focused on in neoclassical economics. That is where options seen by the individuals as in their best interest yields widespread effects not in the interest of people generally. (Malthus was arguing against the anarchist rationalist William Godwin and his belief that moral progress would lead to an ethical utopia of excellence everywhere.) Basically, the Malthusian fear is that people would be incentivized to reproduce at a socially dangerous rate. Reason would fail — in effect be upended by circumstance.

But Malthus had an interesting analytic mind, and he handled the problem with something more than a glib pessimism. He noted that these two diverging trendlines (agricultureexpanding at an “arithmetic rate” versus population expanding at a “geometric rate”) were offset by other forces, at least on the reproduction trend line.

There were, he wrote, natural checks on reproduction rates, including famine and pestilence and infant death by malnutrition; and there were artificial checks, including sexual abstinence in several forms, most of which he regarded as moral, and some gruesome means, such as infanticide and abortion and eugenics. His worry was that populations would grow to bring misery, and also a rise in immorality out of perceived prudence. He rightly saw that crude measures of packing people in close together, as happened in cities, often breed plague and sexually transmitted diseases. And it is in his spirit — and often inspired by reading his treatise — that many modern prophets of doom have developed the popular anti-population mania. And theirs is indeed a harrowing philosophy, turning otherwise nice and smart folks into anti-humanist immoralists, praising horrific measures of (aack) mass death or (ugh) government repression. This sort of thing inspired the modern environmental movement, where you will find some folks advocating reducing humanity to “a size twice the population of bears.”

But all this misses the “miracle” of modernity: progress.

Malthus failed to see what Herbert Spencer saw in the early 1850s: coöperative humanity can indeed fight against the Malthusian trap, flipping the trend lines so that agriculture can grow exponentially more productive than the rate of population reproduction . . . and in turn spurring increased populations to be increasingly productive. The only thing we would have to give up? The militant, regimented means of social organization, instead embracing “industry.” Which in this case was the predecessor to the industrial revolution, the agricultural revolution. Spencer saw trends on Malthus’s agriculture forecast that would raise the line several orders of magnitude.

Interestingly, Spencer almost came up with the theory of natural selection in this work. But he only applied his notion of a ratcheting up of living standards by means of competitively coördinated coöperation to the social world, not to the long-term cycles of plant and animal descent. “Missed it by that much,” as Agent Smart said in Get Smart. It is for this reason that sociologist Jonathan Turner inverted the infamous “Social Darwinist” charge against Spencer: Darwin, really, was a “biological Spencerian.” Spencer spiffed up his approach a decade later, for the final section of his Principles of Biology. And in the process he gave us the turn of phrase “survival of the fittest.” Though it has been trendy (for a full century, actually) to look upon Spencer’s viewpoint as a ghastly exercise in cruel theoretics, Spencer was actually emphasizing peaceful coöperation and presenting humanity with a remarkably positive vision. J.D.Y. Peel, in his study of Spencer, said that the British philosopher-sociologist “out-Godwinned Godwin”! But Spencer did this not by hoping for a triumph of Reason, but by merely noticing the flourishing that is possible with distributed patterns of collaboration sans an over-arching plan.

The amazing thing? He was basically right.

Spencer was actually presaging what today’s more realistic economists and demographers understand perfectly well. And, what is more — less: today’s best researchers notice that as human societies get wealthier, the rate of reproduction goes down.

In Schultz’s terminology, parents swap “quantity of children” for “quality of children.” In mere agricultural societies, children can be productive in farm life and in resource extraction; in industrial societies, for people to be productive they have to decelop their skillsets more markedly, so parents opt to expend resources to “invest” in their children’s “human capital.” So, that old black magic of having scads of children ceases to increase the chances of family success, but, instead, tends to reduce it.

That is one big reason why people, today, tend naturally to produce fewer children than in the past.

One might think that this would be completely scuttled by the lowering of childhood death rates, but for a number of reasons, this does not appear to be the case.

And, yes, populations are indeed declining in the First World — and as the rest of the world catches up (and in my lifetime the poverty rate has declined markedly with the expansion of the extent of the market), the general reproduction rate will level off. In Europe, the white population is veering to the opposite-of-“Malthusian” trend: demographic collapse. In the United States, were it not for immigration and recent immigrants’ higher reproductive rates, America, too, would see population decline.*

Demographic collapse is actually probably going to be a bigger problem in the future than the “population explosion.” It is the implosion that would more likely destroy civilization.

But here we have another offsetting trend: technological progress.

The great heterodox genius Samuel Butler, not long after publication of Charles Darwin’s On the Origin of Species (1859) argued that the next form of evolution will be machine evolution. This was played for science-fictional interest in his dystopian romance (or is that utopian comedy?) Erewhon (1872), but now we are really seeing this kick into high gear, as we approach something like a social Singularity (see Ray Kurzweil).

About the time of Malthus, there arose the legendary “Ned Ludd,” who saw only devastation in the destructive creation of technological advance. And since then there have been worriers who see mainly the death of labor in “labor-saving devices.” And like Malthusianism, Luddism, if true, would have meant the death of free labor and our whole civilization a century ago. The opposite is the case: technological advance increases worker productivity, leading to a general increase in wealth and welfare. The “trouble” is, people have to adapt to the machines.

Perhaps the challenge of population decline will not be so bad, as machine evolution makes our lives better and better. Maybe, in Richard Brautigan’s poetic lines, we shall be “watched over by machines of loving grace.”

The real challenge will be political.


* The downward trend line is exacerbated by welfare state interventions, and the high rate of abortions, too. But for this analysis I need not get into to it.

Why is not more made of the fact that the supposed Trump economy is really just a chimera based on a loan against the future that serves the rich very well, while mortgaging the middle class’s future and especially that of their children?

…as answered on Quora….

Is that a fact or a theory?

I am not saying it is not true. But the likelihood of a default on the debt is very high, so who ultimately pays may be a bit of an open question. The incidence of the burden shall shift.

Why is not more made of this, though? Great question.

The answer is easy: it is not just about the “Trump economy.”

Economic policy madness is a truly bipartisan effort. The recent and quite unhinged “stimulus” bills that Trump signed ran through the House of Representatives under control of the Democrats, as well as through the GOP majority Senate.

Fiscal irresponsibility is the basic position of both major parties.

Any attempt to characterize this as a mere partisan or personal failure is a nonstarter. The truth of our predicament is that our rush into the future is chaotic and crazy and by consensus. Confronting the truth of government today? Americans simply cannot handle the truth.

Which is perhaps the real reason our politics is so . . . mad. The double bind we have collectively embraced must have some effect. The effect is a kind of schizophrenia. All Americans are implicated. All. And thus politics is basically the drivel of madmen.

SARS-CoV-2

Last week I published another episode of the LocoFoco Netcast, but forgot to link to it here. So, a little late. . . .

LocoFoco Netcast #11.

The podcast version is on SoundCloud, findable with the domain name LocoFoco.net:

Each new day I hear yet another call for “opening up the economy,” and my annoyance level rises.

Not because I do not want the lockdown orders removed, however. I am annoyed because “the economy” seems unexceptionable but is not. It is an extremely deceptive term. It induces people to think of a Thing that can be shut off and on like a light switch. It suggests that it’s about money and organization and is generally ancillary to our lives. But it isn’t an existent “it” in the singular, much less in a mechanistic manner, it is an emergent order of people producing and trading. “The economy” is people doing the things that allow us to live. It is, in a sense, living.

It is “making a living.” Shut it down and you make death.
When you prohibit people from commerce, from producing and exchanging, you are cutting off the life blood of the civizilization. When we worry that “the economy will suffer” we mean “people will suffer.” And some will die.

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If communism is so bad, then how come the USSR was able to increase industry to match or beat that of the Western powers?

…excerpted from an answer on Quora….

We might want to distinguish ‘communism’ from ‘Communism.’ That latter is sort of trade-marked (‘“anti-trade” marked’?) by the political implementers of the Marxian paradigm.

Karl Marx, you may remember, prophesied a classless, stateless future of communism, share and share alike, and all that. He was quite vague on how it would work out. But he did think the capitalists first had to be expropriated by the workers, and the economy run by ‘a dictatorship of the proletariat.’ This gave the Bolsheviks and their later imitators an excuse to set up state socialism, where the Communist Party runs the unitary state which in turn runs everything else. It is ‘communist’ only by an association of ideas and by tradition. But no utopian-minded communist in her right mind wanted that.

Besides, as others have noted, a moneyless industrial society didn’t work. So the Bolsheviks quickly backpedaled, adding markets back in under the New Economic Policy. As Michael Polanyi and others have shown, the Soviet Union engaged in a lot of fakery to make their central planning seem to work.

Ludwig von Mises explained why it couldn’t work. Capitalism is mass production for the masses. Market societies use dispersed knowledge gleaned especially from private markets in production goods and the firms that make up the productive sector to distribute resources to their most valued uses. Without private property and real market signals, socialists find themselves in a sea of arbitrary decisions, without guide. The Soviets never succeeded much in mass production for the masses, but by hook and crook and a rigid class system, the USSR succeeded in making hydrogen bombs and rockets for a pretty good space program (it helped that they were willing to risk cosmonauts’ lives to an extent NASA never found acceptable). But that isn’t mass production for mass consumption, it is mass production for Big Projects, which we know the ancients mastered in the megalithic period. Pyramids and all.

Slavery and the organization of a religiously oriented (ideologically controlled) servile population can indeed do amazing things. But not beat capitalism at its own game.

So, what of communism? The communal production of a limited set of goods for common needs can work in small groups. That this manner of economic organization produces a great abundance of consumer goods or can be carried on in an egalitarian fashion are fantasies of romantics who cannot think very well. Human being run up against calculation problems, as Mises explained, as well as the Dunbar number, and similar problems.

Few tribes actually engaged in communism for all goods produced. Individual and family property was a commonplace throughout the primitive world. But some things were done communally. But in societies more complex than mere tribes, some method of organization had to develop, and these included honor standards, allowing the adulation of Big Men — chiefs — whose vigor, intelligence, and social skills allowed for elaborate hierarchies to expand economies out of rudimentary forms. Some of the most successful of these chiefdoms became conquerors, and found ways to grift off of sedentary populations, after conquest, and civilization with their states were born.

In all the upward progress and sideways motions of societies and their histories, communism haunted the imaginations of poets and sages and shamans and priests, probably for reasons that psychologists have theorized: as lingering dreams expanding on the yearning of strapped adults for their lost childhoods, when benevolent parents and other adults provided all and made everything work like magic.

Communism of that sort is a dream and a yearning, and deserves, in most cases, little more than eye rolls.

Communism of the Soviet variety deserves a finger on the trigger, for Communists lie about what they are doing, and the contradictions of their own ideas mean they are always one small step away from mass murder.

twv

Lockdowns in the first world will cause deaths because of untreated disease, and will lead to suicide and madness and violence. Depending on how long this crushing of capitalism goes on, we could see starvation here in America and Britain and the rest of the first world.

But it is leading, quickly, to the death of marginal peoples elsewhere, around the world, people on the edge of poverty who have no stocks of food in their pantries and whose lesser-developed countries have less supply warehoused and in the supply chains.

Millions of people.

Dead.

Starved and suffering.

Brown people, mostly.

The lockdown is now strongly ideologically aligned, with progressives being generally gung ho for shutting down all or most commerce. This will make progressives’ guilt in pushing the debacle of Prohibition seem like a baby fart in a hurricane.

Supporting lockdowns will in the future be seen as akin to genocide.

Consider this a ‘pro tip.’ Repent now and save yourself guilt later.