Why Socialism Collapsed

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November 9, 2014 by JImbo

A very interesting article from the Cato Institute on the roots of the Soviet Economic Collapse of 1989.

Some of it was President Reagan, but most of it was just the inevitable result of Socialism. It is not just a question of economic theory. Marx tried in vain to make that balance with illogical algebra.

It’s about a what is missing in Socialism. Personal motivation. The very thing that Capitalism is based on.

I especially liked the part about pollution in Socialist/Communist countries. Even where they’re not entirely polluted and deadly (China, North Korea, Russia, Cuba, Venezuela, etc)… they are very inefficient at protecting the environment. The cost does not even close to cover the benefit.

In some cases, they actually make it worse by encouraging bad decisions by companies. For example a grandfathered, dirty power plant is better than no new clean power plant because you don’t want “dirty power.”

Hence why everything else is upgraded and new in other industries but the energy industry is still using 50 year old power plants and refineries. We know Socialism as “government regulation” around here, but it’s the same idea.

There is a good case to be made for “Free Market Environmentalism.” It’s similar to the argument I made about Environmentalism vs Conservatism.

Essentially the basics are the same. Things work better if someone has a vested interest in taking care of them. Hunters have an interest in keeping the forests full of game to hunt.

To take a recent, exotic example the “ban on elephant poaching” has been a failure. What HAS worked has been empowering the local people with marketing elephants.

When it’s no one’s elephants they are just an annoying nuisance and the locals don’t care if they get killed. When the locals are allowed to MAKE MONEY ON THEM in a renewable fashion, they jump at the chance. By making the elephants the property of the people, they become VALUABLE… and hence worth saving.

The same is true of corporate pollution in this country. Companies that pollute or produce waste tend to be ostracized and ridiculed. They don’t get more customers.

People are willing to pay for what they value. It’s basic common sense. So, if they want “green energy” then they’ll pay more for it.

Socialism tries to tell people what they want and need, with no regard to how they feel or their motivations. That’s why it fails. It doesn’t factor in humanity.

Even in Socialist countries, there is Capitalism. That’s why they haven’t already collapsed. Only there they call it the “Black Market.”

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