Opinion from a Libertarian ViewPoint

Socialism for Dummies – LewRockwell

Posted by M. C. on March 15, 2019

By Jane ten Brink

I wrote the following to a friend who is now retired, but who worked for most of his life for the Austrian National Railroad (the ÖBB), an entity that has been strongly governed by socialist thinking. It therefore came as no surprise to me early on that my friend was completely governed by a socialist mindset (when I first got to know him about three years ago, he was reading some biography of Karl Marx!)

While this friend has never lived in luxury, his standard of living throughout his life and unto this day would most certainly be considered “luxury” by a good portion of the world population.

And, yet, my friend complains that he does not have enough (he thinks he should have more), and blames for this the evil, capitalist system.

My friend’s reason for blaming the evil, capitalist system for his allegedly „struggling-to-survive“ existence is that according to him, a bunch of greedy, rich guys have exploited „us“ by not turning over to „us“ more of their wealth (he believes that wealth should be more evenly distributed).

But my reason for why my friend is blaming capitalism is „envy“.

In all our discussions and arguments, I had thought some time back that I had finally convinced my friend that capitalism (in its classic sense) was not the problem. And that socialism was not the solution.

However, recently, my friend has returned to his default position which is capitalism, bad; socialism, good. After a near-falling-out in our friendship recently, I have written to my friend the following email, which I want to share here.

Here now, my email –

Real and classic capitalism = free-markets

Free markets = un-manipulated, un-rigged markets, a non-centrally controlled economy

Socialism = a highly centralized and controlled economy (An economy can only be controlled when it is centralized.)

A controlled economy = a manipulated and a rigged economy (meaning that the control is used to get the economy to function in some preferred manner as opposed to just letting the economy do what it will.)

It is only a highly centralized, strongly controlled and manipulated/rigged economy that is vulnerable to a situation where most if not all the wealth is funneled up to a small group at the top (i.e., the 0.0025%).

A free-market economy cannot possibly function with such predictable and dismal results. That is because the classic capitalist, free-market system goes according to the laws of nature. (Too large a subject to touch on here, but this can be easily explored via a wide range of publications available at no cost on the website.)

In a free-market economy as in nature, when something emerges that is non-natural and which tries to block nature and prevents the natural system from running, that non-natural element is quickly rooted out. Hence, the classic, capitalist, natural economy has built in protections against greed and corruption.

The reason that we in the west (Europe, US, Australia, Canada) are in the deteriorating situation we are in today, with most of the wealth being siphoned off to the top 0.0025% is because we are not in a real capitalist system (i.e., capitalism in its classical sense).

The economic system we are in today may be defined in the following ways:

(1) Crony-capitalism

(2) Corporate capitalism

(3) Monopoly capitalism

(4) Fascism

Crony capitalism is a form of capitalism based on favors handed out by government to a few select entities (generally with the aim of shutting down competition with the favored entities). In the case of Europe, the US, Canada and Australia, these select entities are the banking cartel and the mega-corporations.

Corporate capitalism and monopoly capitalism also exist for the benefit of the banking cartel and the mega-corporations. Both are designed to ensure that money/profits are sucked out of the Main Street economy and flow upwards to them. And as is the case in crony capitalism, this is accomplished by using the strong hand of government to assist in the paring down and centralization of markets by shutting down all competition.

The shutting down of competition for the mega-corporations is accomplished by an endless array of heavy-handed and mostly unnecessary government regulations instituted at the bidding of the banking cartel and mega-corporations. (I witnessed myself how this works some years ago when in my Vienna neighborhood, a small, family-run bakery that had existed for many years was forced to shut down when government regulators appeared one day to tell them that almost all of their equipment had to be replaced and that their facility had to be upgraded for the purpose of “hygiene”, despite the fact that this bakery had never had any complaints regarding “hygiene,” etc.)…

propertyn tax





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