In the spirit of Obama the Marxist winning and more and more democrats “coming out” as socialists now, I present this wonderful article entitled “Why Socialism Failed” by Mark J. Perry (blog), Ph.D. Professor of Finance and Business Economics, about why Socialism has failed in so many countries already. I think the practical reality of historical evidence is crucial in our day when it’s so easy to sell Socialism as a wonderful cure-all – in theory. (I also updated my Barack Obama and Global Warming articles if you’re interested.)
Please check out the article and comment on it. Thanks. Here’s a quote from the article just to whet your appetite:
Socialism is the Big Lie of the twentieth century. While it promised prosperity, equality, and security, it delivered poverty, misery, and tyranny. Equality was achieved only in the sense that everyone was equal in his or her misery.
In the same way that a Ponzi scheme or chain letter initially succeeds but eventually collapses, socialism may show early signs of success. But any accomplishments quickly fade as the fundamental deficiencies of central planning emerge. It is the initial illusion of success that gives government intervention its pernicious, seductive appeal. In the long run, socialism has always proven to be a formula for tyranny and misery.
A pyramid scheme is ultimately unsustainable because it is based on faulty principles. Likewise, collectivism is unsustainable in the long run because it is a flawed theory. Socialism does not work because it is not consistent with fundamental principles of human behavior. The failure of socialism in countries around the world can be traced to one critical defect: it is a system that ignores incentives.