Understanding Socialism

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The United States now has a new socialist in congress. This is a good time to go over just what socialism is.

What Americans fail to acknowledge is that the United States is a socialist country now. Those who want to turn the United States into a socialist country, don’t need to. It already is. The definition from dictionary.com is  “any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods.” This one is good enough.

Alexandria Ocasio-Cortez, the new congress person in the democratic party probably doesn’t know what socialism is. She envisions the United States adopting an old style socialist system like the one which just destroyed Venezuela.  What she doesn’t understand is that, who gets what in a socialist country is determined by who has the most political power. She doesn’t have to do a thing to usher in socialism here. She is not alone in rejecting free market principles. Her brethren from teenagers to old people breathing their last breath all have rejected free market principles. This is a mistake. There will be suffering either way. It is a error to think that socialism distributes goods and services equally throughout the population. The rewards go to whoever is most powerful politically.

The system we have in place could properly be called pro business socialism. This is because our corporations and their officers have lots and lots of political power. The type of socialism she prefers could be called bottom up socialism. That means the bottom end of the food chain gets most of the benefit. Despite the intention that it turn out that way. It is impossible for that to happen. It does sound good. A chain letter at first glance looks like the ideal business to buy into. The fallacy in each case is that there are aspects of human nature which prevent people from acting in the ways the proponents of these ideas insist they will. Systems of socialism rest on a belief in the imaginary human incentive to serve. When in reality self interest is the only universal incentive nature provides.

All enterprises are based on self interest even when they are declared not to. Enterprises in a socialist system are always for profit just as they are in a free market economy. Healthcare businesses under the Affordable Care Act are for profit. If the country goes for a single payer healthcare system, it will be for profit also even, if it is said not to be. The difference is in who gets the profit. In either case the profit will go to the group with the most political power.

The country is currently being destroyed by top down or pro business socialism. That is the system that destroys the most wealth in the shortest period of time because there is more wealth to start out with. With our current type of socialism, the economy will implode at some point and everyone will grow poor together. Donald Trump is a top down socialist. Hillary Clinton is a top down socialist also.  Most members of the house and senate are top down socialists. Germany under Hitler was a top down socialist system. Of course that Germany was destroyed by 1945.

Alexandria Ocasio-Cortez has aspirations of turning the United States towards ordinary socialism which of course is the kind that destroyed Venezuela. In the United States it may not matter which of these systems we use. Both are highly destructive so either one of them will destroy the country.

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Fantasy Free Economics recommends the following blogs.

Woodpiler Report Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts

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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.
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