Tag Archives: Socialism

What is the difference between capitalism and socialism?

Over 100,000 Venezuelans pouring into Colombia from the Venezuela in order to buy food
Over 100,000 Venezuelans cross into Colombia in order to buy food

(This photo H/T Prager University)

One country that has done a good job of implementing socialism is Venezuela.

Here is an article from March 2013 from Slate, a web site that strongly favors socialism. The headline is “Hugo Chavez’s economic miracle: The Venezuelan leader was often marginalized as a radical. But his brand of socialism achieved real economic gains”. The author is “a senior writer for the International Business Times”.

He writes:

Chavez became the bugaboo of American politics because his full-throated advocacy of socialism and redistributionism at once represented a fundamental critique of neoliberal economics, and also delivered some indisputably positive results. Indeed, as shown by some of the most significant indicators, Chavez racked up an economic record that a legacy-obsessed American president could only dream of achieving.

What did Chavez do, precisely, that caused the Venezuelan economic to boom? Well, he nationalized private industry and redistributed wealth from job creators and entrepreneurs to the poor.

As The Week correctly put it, while “Chavez’s policies of redistribution and nationalization of oil assets endeared him to Venezuela’s working class” and produced many laudable results, the country’s “oil-centric economy has taken away resources from other areas that are badly in need of development.”

OK, so that’s pretty much what the Democrat party wants to do in the United States as well. Nationalize the energy sector, nationalize health care, etc. Let the government take over the private sector industries in order to eliminate “inequalities”. Raise taxes, and redistribute the money to the low income people via social programs, also known as welfare.

So, how does it work? Is socialism really an “economic miracle”?

Here is the latest from Venezuela, as reported by CNN Money. (H/T William)

Excerpt:

Venezuelans cried at the sight of fully-stocked supermarket shelves in Colombia.

Pregnant women, children and even elderly Venezuelans crossed into Colombia on Sunday after the border was temporarily reopened, allowing them to buy basic foods and toiletries — rare commodities in their home country.

Tearful Venezuelans had gone weeks without basic food items like milk, flour and toilet paper. It’s a sad but common part of daily life today in crisis-ridden Venezuela, a country that has the world’s largest proven reserves of oil. Colombian officials estimate that about 100,000 Venezuelans crossed the border.

Venezuela is expected to dive deeper into the abyss this year, according to new projections published Wednesday by the International Monetary Fund.

The IMF forecasts Venezuela’s economy will shrink 10% this year, worse than its previous estimate of 8%. It also estimates that inflation in Venezuela will catapult to 700% this year, up from the earlier guess of about 480%.

“Venezuela’s economic condition continues to deteriorate,” says Alejandro Werner, chief Latin America economist at the IMF. The estimates for growth and inflation are the worst worldwide.

The numbers are just the tip of the iceberg. Venezuela is deep into a humanitarian crisis — people are dying in ill-equipped hospitals and many live without basic food items. Venezuela can’t pay to import goods because its government is desperately strapped for cash after years of mismanagement of its funds, heavy spending on poorly-run government programs, and lack of investment on its oil fields.

[…]It’s all even more tragic given that despite Venezuela’s oil abundance, its state-run oil company, PDVSA, is broke. Venezuela’s oil production fell to a 13-year low in June, according to OPEC, of which it’s a member.

That’s what you get when you let the government take over the free enterprise system, or even when you just stifle the free market with burdensome regulations and high taxes. That’s what socialists in Venezuela did. That’s what the Democrat party would do. They’re  two sides of the same coin.

Dennis Prager

Dennis Prager put out a good video recently explaining the problems with socialism:

Why would anyone prefer a system that encourages some people to feel entitled to what other people create and earn? We want a system that is focused on serving your neighbor – not stealing from them.

Arthur Brooks

If you would like a very brief introduction to capitalism, also known as the free enterprise system or the free market system, then you can watch the videos below, featuring Arthur Brooks, president of the American Enterprise Institute.

Here is the first one, which explains the myths that most Americans are taught about capitalism in school and in the culture:

An important advantage of capitalism is that it lifts people out of poverty. The poorest people in America live much better than the wealthy in Venezuela.

And the second video explains what capitalism offers to individuals for their fulfillment, which socialism does not:

Earned success makes people happier, which is at least as important as the wealth benefit.

We can compare the results of each system by looking at where it’s been tried. Capitalism lifts people out of poverty – all the people in the society who are willing to work are lifted out of poverty. Even the people who can’t work in a capitalist society enjoy the benefits of charity from their neighbors – when people do well, they give more money away. Socialism drives those who work and those who don’t work into poverty, and eliminates charity. No one has anything to share when everyone is poor.

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FBI: if other people do what Hillary did then they will be prosecuted, but she won’t be

Hillary Clinton look bored about the deaths of 4 Americans who asked for her help
Hillary Clinton look bored about the deaths of 4 Americans who asked for her help

A round-up of reactions from around the Internet, on the right and on the left.

First, here’s radical leftist Chris Cilliza, writing in the radically leftist Washington Post, of all places:

FBI Director James B. Comey dismantled large portions of Clinton’s long-told story about her private server and what she sent or received on it during a stirring 15-minute news conference, after which he took no questions. While Comey exonerated Clinton, legally speaking, he provided huge amounts of fodder that could badly hamstring her in the court of public opinion.

Most importantly, Comey said the FBI found 110 emails on Clinton’s server that were classified at the time they were sent or received. That stands in direct contradiction to Clinton’s repeated insistence she never sent or received any classified emails. And it even stands in contrast to her amended statement that she never knowingly sent or received any classified information.

[…]Comey said Clinton had used not one but multiple private email servers during her time at State. He said Clinton used multiple email devices during that time. (She had offered her desire to use a single device for “convenience” as the main reason she set up the private server.)

[…]It’s hard to read Comey’s statement as anything other than a wholesale rebuke of the story Clinton and her campaign team have been telling ever since the existence of her private email server came to light in spring 2015. She did send and receive classified emails. The setup did leave her — and the classified information on the server — subject to a possible foreign hack. She and her team did delete emails as personal that contained professional information.

Those are facts, facts delivered by the Justice Department of a Democratic administration. And those facts run absolutely counter to the narrative put forth by the Clinton operation: that this whole thing was a Republican witch-hunt pushed by a bored and adversarial media.

Andrew McCarthy in National Review:

There is no way of getting around this: According to Director JamesComey (disclosure: a former colleague and longtime friend of mine), Hillary Clinton checked every box required for a felony violation of Section 793(f) of the federal penal code (Title 18): With lawful access to highly classified information she acted with gross negligence in removing and causing it to be removed it from its proper place of custody, and she transmitted it and caused it to be transmitted to others not authorized to have it, in patent violation of her trust. Director Comey even conceded that former Secretary Clinton was “extremely careless” and strongly suggested that her recklessness very likely led to communications (her own and those she corresponded with) being intercepted by foreign intelligence services.

Yet, Director Comey recommended against prosecution of the law violations he clearly found on the ground that there was no intent to harm the United States.

In essence, in order to give Mrs. Clinton a pass, the FBI rewrote the statute, inserting an intent element that Congress did not require.

David French in National Review:

[…]Comey noted that her personal e-mail server was less secure than Google’s Gmail:

None of these e-mails should have been on any kind of unclassified system, but their presence is especially concerning because all of these e-mails were housed on unclassified personal servers not even supported by full-time security staff, like those found at Departments and Agencies of the U.S. Government — or even with a commercial service like Gmail.

[…]I defy any member of the military or any civilian not directly affiliated with Hillary Clinton to engage in such conduct and get away with it. The first thing that would happen is you would lose your security clearance. Next, you would lose your job. Finally, good luck escaping prosecution. Comey claims that prior FBI prosecutions included “some combination of: clearly intentional and willful mishandling of classified information; or vast quantities of materials exposed in such a way as to support an inference of intentional misconduct; or indications of disloyalty to the United States; or efforts to obstruct justice.”

I blogged previously about how Clinton’s private unsecure e-mail server was was definitely compromised by foreign governments and hackers. She was the top diplomat of the United States of America. Clandestine agents and their sources would undoubtedly have been compromised.

The FBI has been focusing its attention on Christians and conservatives for quite some time, and letting the real criminals on the secular left go Scot free. So their refusal to enforce the law here is no surprise. It’s not the first time, it won’t be the last time.

At the Daily Wire, Ben Shapiro notes that the timing of this non-prosecution is suspect:

Just days after the Attorney General of the United States Loretta Lynch held a secret meeting aboard a plane with former President Bill Clinton – whose wife was under FBI investigation; just the day after Hillary leaked that she’d want Lynch for her own administration; just hours after the President of the United States Barack Obama flew Hillary – still under FBI investigation – down to North Carolina on Air Force One; just two hours before Obama was to open his campaign on behalf of Hillary Clinton, FBI Director James Comey announced that while Hillary Clinton had clearly engaged in criminal activity worthy of prosecution, he had recommended that she not be prosecuted.

James Taranto in the Wall Street Journal:

After announcing his no-charge recommendation, Comey added:

To be clear, this is not to suggest that in similar circumstances, a person who engaged in this activity would face no consequences. To the contrary, those individuals are often subject to security or administrative sanctions. But that is not what we are deciding now.

In other words, laws are for little people.

So let’s take stock. Nobody was prosecuted for the Clinton Foundation donations from foreign sources. Nobody was prosecuted for Fast and Furious gunrunning to Mexican drug cartels. Nobody was prosecuted for Benghazi. Nobody was prosecuted for the IRS persecution of Christians and conservatives. And nobody was prosecuted for the Clinton unsecure e-mail server.

Canadian court rules that Christian university cannot uphold Christian moral values

Canada Election 2015: Socialists in red, Communists in Orange, Conservatives in blue
Canada Election 2015: Socialists in red, Communists in Orange, Conservatives in blue

This article about religious liberty in Canada is from Vancouver Sun. (H/T Glenn)

Excerpt:

Ontario’s top court has dismissed an appeal from a private Christian university that forbids sexual intimacy outside heterosexual marriage, denying its proposed law school accreditation in the province.

The ruling from the Ontario Court of Appeal on Wednesday dealt a significant blow to Trinity Western University in a legal battle which pitted freedom of religion against equality rights.

A panel of three appeal court judges found that while the university’s religious freedom had been infringed upon, the institution discriminated against the LGBTQ community.

Trinity Western — which is fighting similar cases at appeal courts in Nova Scotia and British Columbia — expressed disappointment at the ruling, saying it would be taking its fight to the Supreme Court of Canada.

The Ontario case saw the Evangelical Christian institution based in Langley go up against the Law Society of Upper Canada after the regulatory body voted not to accredit the university’s planned law facility.

At the heart of the dispute was Trinity Western’s “community covenant” or code of conduct, which all students are required to agree to.

The key point about the code of conduct is that it doesn’t discriminate against any particular group, e.g. – LGBT. It also forbids excessive drinking and premarital sex by heterosexuals:

It includes requiring students to abstain from gossip, obscene language, prejudice, harassment, lying, cheating, stealing, pornography, drunkenness and sexual intimacy “that violates the sacredness of marriage between a man and a woman.”

Now read this next part carefully. Although there was no legal support for denying a Christian university religious liberty and freedom of association, there was the hurt feelings of the LGBTQ community:

“The part of TWU’s Community Covenant in issue in this appeal is deeply discriminatory to the LGBTQ community, and it hurts,” the appeal court ruling said. “The LSUC’s decision not to accredit TWU was indeed a reasonable conclusion.”

In Canada “it hurts” means the end of human rights like religious liberty and freedom of association. Why? Because the Christian community in Canada has – for decades – voted to increase the size of government at the expense of liberty, in order to get free stuff. It doesn’t matter if the Christians who wanted a Christian university are hurt. Or that the Christian students at TWU are hurt. Only the hurt of the LGBT community matters, and their hurt changes laws, criminalizes dissent and annihilates natural rights. There are no such things as freedom of religion and freedom of conscience in Canada. There never was free speech, either. Anything that might hurt the feelings of left-wing groups has to be made criminal.

I’ll put this as plainly as anyone can: Canadian “Christians” have been voting to transfer wealth and power to a big secular government for years. They wanted government to cover health care, and now the government thinks that health care is providing free sex changes, free IVF and free abortions. Canadian “Christians” wanted their 30 pieces of silver more than they wanted the freedom to act as if the Bible was true in public. It turns out that the more wealth and power that you transfer to a secular government, the more likely they are to abuse that wealth and power in trampling out any ideology that interferes with their buying votes from their favored special interest groups.

New study: Tennessee pre-K program provides no educational benefit over control group

This is the most thorough study that I have ever seen evaluating the effectiveness of pre-K programs. The study was done by researchers at Vanderbilt University.

The study was reported on by the well-respected but leftist Brookings Institute.

They write:

State investments in center-based school readiness programs for preschoolers (pre-K), whether targeted for poor children or universally implemented, have expanded more rapidly than evaluations of their effects. Given the current interest and continuing expansion of state funded pre-K, it is especially important to be clear about the nature of the available evidence for the effectiveness of such programs. Despite widespread claims about proven benefits from pre-K, there is actually strikingly little credible research about the effectiveness of public pre-K programs scaled for statewide implementation.

Like many states that became interested in scaling up a state funded pre-K program in the early 2000’s, voluntary pre-K (TNVPK) was introduced in Tennessee in 1996 as a way to provide academic enhancement to economically disadvantaged children. It expanded in 2005 to an $85 million-plus statewide investment serving 18,000 Tennessee income-eligible children in 935 classrooms across all 95 counties.

Launched in 2009, the TNVPK Effectiveness Study, a coordinated effort between Vanderbilt’s Peabody Research Institute and the Tennessee Department of Education, is a five-year evaluation study funded by the US Department of Education, Institute for Education Sciences. It includes the first randomized control trial of a scaled up state funded pre-K program and the first well-controlled comparison group study of the effects of program participation as children progress through elementary school..

Policymakers and proponents often cite some of the famous early studies of pre-K programs that have shown long term benefits extending into adulthood for the participating children. But those were studies of especially complex programs that are unlike scaled-up public pre-K in many ways. The Vanderbilt study is the first rigorous controlled longitudinal study to be conducted on a large-scale state-funded pre-K program.

And here is a summary of the results:

Standard score results from pre-K through 3rd grade on a composite measure that averaged the six achievement subtests are presented from baseline forward in the graph below.

As is evident, pre-K and control children started the pre-K year at virtually identical levels. The TNVPK children were substantially ahead of the control group children at the end of the pre-K year (age 5 in the graph). By the end of kindergarten (age 6 in the graph), the control children had caught up to the TNVPK children, and there were no longer significant differences between them on any achievement measures. The same result was obtained at the end of first grade using two composite achievement measures (the second created with the addition of two more WJIII subtests appropriate for the later grades). In second grade, however, the groups began to diverge with the TNVPK children scoring lower than the control children on most of the measures. The differences were significant on both achievement composite measures and on the math subtests. Differences favoring the control persisted through the end of third grade.

In terms of behavioral effects, in the spring the first grade teachers reversed the fall kindergarten teacher ratings. First grade teachers rated the TNVPK children as less well prepared for school, having poorer work skills in the classrooms, and feeling more negative about school. It is notable that these ratings preceded the downward achievement trend we found for VPK children in second and third grades. The second and third grade teachers rated the behaviors and feelings of children in the two groups as the same; there was a small positive finding for peer relations favoring the TNVPK children by third grade teachers, which did not meet traditional levels of statistical significance.

Results graph:

TNVPK data: pre-K program is in red, baseline is in blue
TNVPK data: pre-K program is in red, baseline is in blue

We are already seeing that cheap daycare in high-tax, big government provinces like Quebec cost a lot, and produce negative results. And of course Hillary Clinton is a longstanding advocate of universal pre-K. As a Senator of New York, she introduced a universal pre-K plan that would cost $10 billion over 5 years. President Barack Obama’s own Preschool for All plan would cost $75 billion over 10 years. This Vanderbilt study should cause us to question whether the policies of the secular left, pushed largely because of emotions and ideology, are worth the tens of billions of dollars they want to take from us. And if you take tens of billions of dollars out of families, then families on the margin will have to give their children to the state to raise. And that includes Christian families, who would no longer be able to afford a stay-at-home mother.

Now, taking children away from parents so that their mothers can work is seen as a worthy goal by those on the secular left. First, communally raising the children is “good” because it removes inequalities between single mothers and traditional working-husband homes. Second, making it easier for women to “go fatherless” is “good” because fathers are not to be trusted to teach their children about morality and religion. That is best left to secular government workers. Third, mothers who choose to marry good providers pay less in taxes if they choose to stay home with their kids and not work. That is “bad” because the government wants more taxes, so they can spend it on vote-buying social programs. Fourth, children who form stable bonds with their parents are less likely to become dependent on the government, meaning their allegiance cannot be bought with government handouts. That is also “bad”. Fifth, it is also “bad” that children who grow up with stay-at-home mothers are more likely to develop empathy and morality, which gives them an independent standard by which to judge the government’s actions.

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Do young Americans know how well socialism is working in Venezuela?

Two socialists shake hands: Barack Obama and Hugo Chavez
Two socialists shake hands: Barack Obama and Hugo Chavez

I’m very interested in how economic policy in different times and places affects the ability of Christians to carry out their Christian life plans. What economic policies should Christians support in order to be able to carry out their lives? Do Christians need to eat? Do they need to be safe from criminals? Do they need to be able to work or run a business without violating their consciences? Can a Christian be as charitable when he cannot even feed himself or his family?

When I talk to young evangelicals, they seem to be pretty in lockstep with the left on policies like raising the minimum wage, having government take over health care, environmental regulations on private sector energy companies to stop global warming, etc.

So, it’s worth it to look at how things work in places where socialism is actually being tried.

Here is an article from March 2013 from the radically leftist Slate. The headline is “Hugo Chavez’s economic miracle: The Venezuelan leader was often marginalized as a radical. But his brand of socialism achieved real economic gains”. The author is “a senior writer for the International Business Times”.

He writes:

Chavez became the bugaboo of American politics because his full-throated advocacy of socialism and redistributionism at once represented a fundamental critique of neoliberal economics, and also delivered some indisputably positive results. Indeed, as shown by some of the most significant indicators, Chavez racked up an economic record that a legacy-obsessed American president could only dream of achieving.

What did Chavez do, precisely, that caused the Venezuelan economic to boom? Well, he nationalized private industry and redistributed wealth from job creators and entrepreneurs to the poor.

As The Week correctly put it, while “Chavez’s policies of redistribution and nationalization of oil assets endeared him to Venezuela’s working class” and produced many laudable results, the country’s “oil-centric economy has taken away resources from other areas that are badly in need of development.”

Well, what happened next?

Consider this long and detailed article from the left-leaning The Atlantic. I can only quote part of it, but you really need to read this to understand what happens when country attacks all the people who were creating wealth and jobs with regulations, taxes, price controls and property seizure.

It says:

In the last two years Venezuela has experienced the kind of implosion that hardly ever occurs in a middle-income country like it outside of war. Mortality rates are skyrocketing; one public service after another is collapsing; triple-digit inflation has left more than 70 percent of the population in poverty; an unmanageable crime wave keeps people locked indoors at night; shoppers have to stand in line for hours to buy food; babies die in large numbers for lack of simple, inexpensive medicines and equipment in hospitals, as do the elderly and those suffering from chronic illnesses.

But why? It’s not that the country lacked money. Sitting atop the world’s largest reserves of oil at the tail end of a frenzied oil boom, the government led first by Chavez and, since 2013, by Maduro, received over a trillion dollars in oil revenues over the last 17 years. It faced virtually no institutional constraints on how to spend that unprecedented bonanza. It’s true that oil prices have since fallen—a risk many people foresaw, and one that the government made no provision for—but that can hardly explain what’s happened: Venezuela’s garish implosion began well before the price of oil plummeted. Back in 2014, when oil was still trading north of $100 per barrel, Venezuelans were already facing acute shortages of basic things like bread or toiletries.

The real culprit is chavismo, the ruling philosophy named for Chavez and carried forward by Maduro, and its truly breathtaking propensity for mismanagement(the government plowed state money arbitrarily into foolish investments);institutional destruction (as Chavez and then Maduro became more authoritarian and crippled the country’s democratic institutions); nonsense policy-making (like price and currency controls); and plain thievery (as corruption has proliferated among unaccountable officials and their friends and families).

A case in point is the price controls, which have expanded to apply to more and more goods: food and vital medicines, yes, but also car batteries, essential medical services, deodorant, diapers, and, of course, toilet paper. The ostensible goal was to check inflation and keep goods affordable for the poor, but anyone with a basic grasp of economics could have foreseen the consequences: When prices are set below production costs, sellers can’t afford to keep the shelves stocked. Official prices are low, but it’s a mirage: The products have disappeared.

When a state is in the process of collapse, dimensions of decay feed back on each other in an intractable cycle. Populist giveaways, for example, have fed the country’s ruinous flirtation with hyperinflation; the International Monetary Fund now projects that prices will rise by 720 percent this year and 2,200 percent in 2017. The government virtually gives away gasoline for free, even after having raised the price earlier this year. As a result of this and similar policies, the state is chronically short of funds, forced to print ever more money to finance its spending. Consumers, flush with cash and chasing a dwindling supply of goods, are caught in an inflationary spiral.

The rest of the article has horrifying details about what socialism really means: businesses shut down, shortages of food and medicine, government waste, skyrocketing crime, failing education system, Zika epidemic, water rationing, blackouts, and so on.

There was even an article this weekend in the radically leftist New York Times about the horrifying conditions of hospitals in Venezuela:

By morning, three newborns were already dead.

The day had begun with the usual hazards: chronic shortages of antibiotics, intravenous solutions, even food. Then a blackout swept over the city, shutting down the respirators in the maternity ward.

Doctors kept ailing infants alive by pumping air into their lungs by hand for hours. By nightfall, four more newborns had died.

“The death of a baby is our daily bread,” said Dr. Osleidy Camejo, a surgeon in the nation’s capital, Caracas, referring to the toll from Venezuela’s collapsing hospitals.

The economic crisis in this country has exploded into a public health emergency, claiming the lives of untold numbers of Venezuelans. It is just part of a larger unraveling here that has become so widespread it has prompted President Nicolás Maduro to impose a state of emergency and has raised fears of a government collapse.

Hospital wards have become crucibles where the forces tearing apart Venezuela have converged. Gloves and soap have vanished from some hospitals. Cancer medicines are often found only on the black market. There is so little electricity that the government works only two days a week to save what energy is left.

At the University of the Andes Hospital in the mountain city of Mérida, there was not enough water to wash blood from the operating table. Doctors preparing for surgery cleaned their hands with bottles of seltzer water.

“It is like something from the 19th century,” said Dr. Christian Pino, a surgeon at the hospital.

The figures are devastating. The rate of death among babies under a month old increased more than a hundredfold in public hospitals run by the Health Ministry, to just over 2 percent in 2015 from 0.02 percent in 2012, according to a government report provided by lawmakers.

The rate of death among new mothers in those hospitals increased by almost five times in the same period, according to the report.

Here in the Caribbean port town of Barcelona, two premature infants died recently on the way to the main public clinic because the ambulance had no oxygen tanks. The hospital has no fully functioning X-ray or kidney dialysismachines because they broke down long ago. And because there are no open beds, some patients lie on the floor in pools of their own blood.

This is not happening because of capitalism and the greedy rich. It is happening because of hatred and persecution of entrepreneurs and job creating private businesses. But, if you read books on economic policy like “The Spirit Level”, which is written by socialists, countries like Venezuela that have lower income inequality have lower infant mortality, lower crime rates and better health care. Socialism works great in academia, not so well in a North Korean work camp.

It’s not just Venezuela. This article from Investors Business Daily covers how well socialism is going in countries like France, Brazil and Argentina. It never works.

Now, in most churches, pastors are more concerned with making people feel good so that the coins continue to fall into the offering plate. Therefore, they carefully stay clear of topics like economics, business and entrepreneurship. The question that we need to ask ourselves is this: how easy is it for you to live out a Christian life in a country where poverty, crime, and government suppression of free speech and religious liberty are rampant? Shouldn’t part of being a Christian mean voting for public policies that actually help poor people have opportunities, children in broken homes and victims of crime, instead of just embracing what sounds nice and makes us feel good?

In case I need to be clearer, I mean that Christians who embrace socialism are taking us down the road to serfdom because of their ignorance of economics. And it’s not just the Democrats. Christians who support Donald Trump are embracing import tariffs, opposing free trade, raising taxes, raising the minimum wage, government seizing private property, and so on. That’s socialism, too. And we won’t escape the consequences of our economic ignorance anymore than the well-meaning Venezuelan voters did when they elected their strong man to rescue them.