Why do so many young people today have a favorable opinion of socialism? Most of them can’t actually define it (government control of the means of production), but many have been enticed by its promises of equality and fairness. I can understand that they may look at the injustices, inequities, and hardships experienced by some Americans and come to the conclusion that our system is flawed and therefore Capitalism must be the problem. And if Capitalism has failed us, then going in the opposite direction, toward Socialism, must be the solution. In this book Paul explains that a free-market system, although still imperfect (because humans are imperfect and corruptible), is still the least bad option.
He reminds the reader what history teaches us about the results of Socialist governments. Socialism has consistently led to misery, oppression, violence, and often outright genocide. The examples are numerous, and the outcomes uniformly tragic. The gulags of the Soviet Union. The holocaust of Nazi Germany (despite revisionists claiming this was a movement of the Right, the Nazis were the National Socialist German Workers Party). The deliberate famines of Communist China. The killing fields of Cambodia. The privations of North Korea. Fascist Italy. Backwards Cuba. Collapsing Venezuela. All of these were promised to be collectivist utopias, but instead resulted in mass suffering. That’s what Socialism does.
But what about Scandinavia? That’s what today’s socialists want, right? Paul shows that these countries are not actually Socialist (and do not appreciate being referred to as such), they just have huge welfare safety nets. Scandinavian countries actually became prosperous through free-market economic policies, and even today economic freedom indices are higher in Scandinavia than the US, with lower corporate taxes, a flatter income tax, and no minimum wage. In the 70s and 80s, after they were already economically successful, they started building giant welfare safety nets. When their economic growth slowed as would be expected, they backed off on some of these policies, but the safety nets continue to be very expensive. The middle class pays a much higher income tax than in the US (about 60%), plus there is a 25% VAT sales tax on all purchases.
We Americans could also decide that we would like similar welfare programs, but let’s not pretend that they won’t be very expensive. Or that they can be paid for by just taxing “the rich.” And don’t believe that you actually want Socialism. If you think you do, you don’t understand what it really means.
Wow. I intended to write a review, and ended up writing a diatribe. Sorry about that. But I think I’m going to let it stand.