Monday, June 11, 2012

The Successes of Socialism (at least in the minds of the Left)

Socialism in Practice: The Lethal Laboratory by Gary North

What is the longest-running socialist experiment? What has its success been?
If someone asked you to defend the idea that socialism has failed, what would you offer as your example?
Where did modern socialism begin?
In America.
That's right: in the land of the free and the home of the braves. On Indian reservations.
They were invented to control adult warriors. They had as a goal to keep the native population in poverty and impotent.
Did the system work? You bet it did.
Has the experiment been a failure? On the contrary, it has been a success.
When was the last time you heard of a successful Indian uprising?
Are the people poor? The poorest in America.
Are they on the dole? Of course.
Last year, the US Department of Agriculture allocated $21 million to provide subsidized electricity to residents on the reservations whose homes are the most distant from jobs and opportunities. You can read about this here. This will keep them poor. Tribal power means tribal impotence.
The tribes are dependent. They will stay dependent. That was what the program was designed to achieve.
For some reason, textbooks do not offer a page or two on the corruption, the bureaucratization, and the multigenerational poverty created by tribal-run socialism. Here we have a series of government-run social laboratories. How successful have they been? Where are reservations that have systematically brought people out of poverty?
The next one will be the first.

Workers' Paradises

The Soviet Union lasted as a socialist workers' paradise from 1917 until 1991. As a direct result of that experiment, at least 30 million Russians died. It may have been twice that. China's experiment was shorter: 1949 to 1978. Perhaps 60 million Chinese died.
The system failed to deliver the promised goods. I can think of no topic more suitable for a class in economics than a discussion of the failure of socialism. The same is true of a course in modern world history. A course in political science should cover this failure in detail.
They don't, of course. They do not begin with the fundamental challenge to socialist economic theory, Ludwig von Mises's 1920 essay, Economic Calculation in the Socialist Commonwealth. Why not? Because most social scientists, economists, and historians have never heard of it. Among people over age 50, the few who did hear of it heard about it from some prosocialist or Keynesian advocate, who wrote what he had been told in graduate school in the 1960s, namely, that the article was totally refuted by Oskar Lange in 1936.
They are never told that when Lange, a Communist, returned to Poland in 1947 to serve in several high-level posts, the Communist government did not invite him to implement his grand theory of "market socialism." No other socialist nation ever did.
For 50 years, the textbooks, if they mentioned Mises at all, said only that Mises had been totally refuted by Lange. The Establishment academics dropped Mises down Orwell's memory hole.
On September 10, 1990, multimillionaire socialist author-economist Robert Heilbroner published an article in the New Yorker. It was titled "After Communism." The USSR was visibly collapsing. In it, he recounted the story of the refutation of Mises. In graduate school, he and his peers were taught that Lange had refuted Mises. Then he announced, "Mises was right." Yet in his bestselling textbook on the history of economic thought, The Worldly Philosophers, he never referred to Mises.
The rest here.

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