Socialism: a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.
This definition of socialism gotten from Google is really a valid form of government for small communities such as communes, a kibbutz, or the Amish and not appropriate for a nation. The Israelis tried kibbutz socialism on a national scale and it was a huge failure since all the kibbutzes complained that they weren’t getting their fair share of tax dollars. So the true definition of socialism should read “regulated by the GOVERNMENT as a whole” and this is really a form of communism with minimal or no personal property ownership.
Pure socialism leads to communism if it is not already communism to begin with but basically socialism in a Democratic Republic means government welfare, control, or the distribution of tax dollars to healthcare, education, shelter, transportation, food, child support, and even work to those subjectively viewed to be worthy of support by the government.
The unemployed and also destitute should have a safety net of government support in their time of greatest need so you could say that limited socialism for the unemployed and also destitute is a necessary thing. For the working population, especially the middle class and wealthy, modified capitalism with Social Security and Medicare is the preferred system of government. I call this Capsocialism and I have explained it in my blog and book GLOBALISM.
There are problems with socialism other than the fact that it is extremely expensive and winds up taxing 60% or more of worker’s income. The biggest problem is that an incentive to work is virtually killed off if all of your basic needs are payed by the government and you can live relatively comfortably off of the government dole.
“Free” healthcare, free education, free shelter, free transportation, free food, and free child support and many women don’t have to work if they have offspring. The government becomes the husband bringing home the money to pay for everything. In effect, there is less of an incentive to work because the rewards are not great enough to work smart and hard and noticeably increase your standard of living.
Pure socialists advocate central planning and ownership of the means of production and distribution by the government. This is disastrous because market pricing information is no longer available and decisions are often made by the seat of the pants without basing it on economic reality of actual cost vs. actual benefit.
Big bureaucratic corporations are highly inefficient and a big bureaucratic government in charge of almost everything is even more inefficient. Big bureaucracies are seldom accountable. They make very poor economic choices and when they make a choice it is usually extremely expensive and usually can be done at less cost by an efficient private for profit business which has competitors.
Central planning by the government was a colossal failure in the Soviet Union, Mao’s China, and more recently in Venezuela. Big power corrupts and big control over the economy means sweet heart deals with big corrupt institutions which suck on the government teat. The long duration destiny of pure socialism and pure communism is bankruptcy due to inefficient stupidity and corruption by bureaucrats.
Humans take better care of personal property that they own rather than communal property which they don’t feel responsible for, especially if they see many other lazy humans benefiting from their hard labor. That in a nutshell is why pure socialism and pure communism fail in the long duration. Humans need personal private property to function responsibly within a nation.
Socialism sucks in the long duration because more and more humans play the system for their own benefit with minimal effort on their part. The few remaining workers with income are taxed to such a high degree that their incentive to continue working is drastically reduced. The whole economy eventually comes to a grinding halt which we could call national bankruptcy where national expenses far exceed the national income.
Economically there is less growth and less entrepreneurial attempts and less competition in modified socialism. This may not be that bad because continuous economic growth on a finite planet results in a devastated environment in the long duration. However, regulating the money supply so there is no inflation or a constant value for money is the financial solution to the problem which no government has the balls to do. It is a global money supply and the big international banks have no interest in zero inflation so no government is currently supporting a zero inflation policy with it’s currency.
Socialism sometimes works in small communities of about 150 humans who know each other by name and interact frequently. They may have some private property but mostly the efforts or income of the community are usually distributed equally among its members. Lazy humans or slackers are usually frowned upon and peer pressure exerted when needed. A successful small community is usually one where all the members have the same morality and often the same religion.
Socialism does not work in the long duration when run by a big inefficient and corrupt national bureaucracy. It winds up killing the incentive to work for most humans resulting in greater expenses than income. Unless the social setup is radically changed when things get desperate it can lead to national bankruptcy.
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