Socialism big lie of 20th century

February 19, 2014

Mark J Perry explains why socialism failed:

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 behaviour. The failure of socialism in countries around the world can be traced to one critical defect: it is a system that ignores incentives. .

In a capitalist economy, incentives are of the utmost importance. Market prices, the profit-and-loss system of accounting, and private property rights provide an efficient, interrelated system of incentives to guide and direct economic behavior. Capitalism is based on the theory that incentives matter!

Under socialism, incentives either play a minimal role or are ignored totally. A centrally planned economy without market prices or profits, where property is owned by the state, is a system without an effective incentive mechanism to direct economic activity. By failing to emphasize incentives, socialism is a theory inconsistent with human nature and is therefore doomed to fail. Socialism is based on the theory that incentives don’t matter!

The failure of the car industry in Venezuela provides a very good example of why socialism and the central planning which goes with it fails.

Leonardo Hernandez had hoped to buy a new car this year, ending nearly two years of waiting on various lists at different dealerships throughout the country.

Those hopes were dashed last week when Toyota Motor Co. said it would shut down its assembly operations in Venezuela due to the government’s foreign exchange controls that have crippled imports and made it impossible to bring in parts needed to build its vehicles.

The country’s other car manufacturers, including General Motors and Ford, haven’t even started operations this year, while waiting for needed parts to arrive. . .

 

Yes, Prime Minister


EFA rules ok – yeah right

August 1, 2008

A Tui billboard  in Tauranga may breach the Electoral Finance Act.

It says: When Winston says no he means no. Yeah right.

The billboard is in the Tauranga electorate Winston Peters is desperate to win, and the Electoral Commission told the Herald it would write to brewers Tui saying it could be “election advertising” against him.

If that’s breaching the Act ,what about the giant wrap around bill board I noticed on a building on the corner of Albert and (I think) Customs Streets? It had a counter showing how much NZ profit goes from overseas banks each day.

It was bright green with an anti foreign-ownership message so I thought it was a political hoarding until I looked again and saw it was for Kiwi Bank.

My first impression  was that it was a political message rather than a commercial one so given NZ First and Greens are strongly against foreign ownership of NZ assets might this ad persaude people to vote for one of them or against other parties with more sensible views on investment?

Then there’s the ad which shows a couple of blokes driving across a paddock in a red ute. There’s a bump, they stop, get out and realise they’ve hit a bull. The driver turns to his passenger and says “Should’ve bought a blue one.”

It’s advertising Ford utes but there is a subliminal political message there too. It could be seen as words or graphics which persuade people to vote for or against a party.

But the EFA isn’t that stupid. Yeah right.


Is it just an ad for a ute?

May 20, 2008

A couple of farmers are driving across a paddock in a red ute. There’s a bump, they stop, get out and realise they’ve hit a bull.

 

The driver turns to his mate and says, “Should ‘ve got a blue one.”

 

The mate grins and nods.

 

It’s an ad for Ford courier. But is there a subliminal political message there – and if so is it contravening the EFA?

 

 


%d bloggers like this: