Capitalism vs. Socialism
Several recent polls, plus the popularity of Sen. Bernie Sanders, demonstrate that young people prefer socialism to free market capitalism. That, I believe, is a result of their ignorance and indoctrination during their school years, from kindergarten through college. For the most part, neither they nor many of their teachers and professors know what free market capitalism is.
Free market capitalism, wherein there is peaceful voluntary exchange, is morally superior to any other economic system. Why? Let's start with my initial premise. All of us own ourselves. I am my private property, and you are yours. Murder, rape, theft and the initiation of violence are immoral because they violate self-ownership. Similarly, the forcible use of one person to serve the purposes of another person, for any reason, is immoral because it violates self-ownership.
Tragically, two-thirds to three-quarters of the federal budget can be described as Congress taking the rightful earnings of one American to give to another American -- using one American to serve another. Such acts include farm subsidies, business bailouts, Social Security, Medicare, Medicaid, food stamps, welfare and many other programs.
Free market capitalism is disfavored by many Americans -- and threatened -- not because of its failure but, ironically, because of its success. Free market capitalism in America has been so successful in eliminating the traditional problems of mankind -- such as disease, pestilence, hunger and gross poverty -- that all other human problems appear both unbearable and inexcusable. The desire by many Americans to eliminate these so-called unbearable and inexcusable problems has led to the call for socialism. That call includes equality of income, sex and race balance, affordable housing and medical care, orderly markets, and many other socialistic ideas.
Let's compare capitalism with socialism by answering the following questions: In which areas of our lives do we find the greatest satisfaction, and in which do we find the greatest dissatisfaction? It turns out that we seldom find people upset with and in conflict with computer and clothing stores, supermarkets, and hardware stores. We do see people highly dissatisfied with and often in conflict with boards of education, motor vehicles departments, police and city sanitation services.
What are the differences? For one, the motivation for the provision of services of computer and clothing stores, supermarkets, and hardware stores is profit. Also, if you're dissatisfied with their services, you can instantaneously fire them by taking your business elsewhere. It's a different matter with public education, motor vehicles departments, police and city sanitation services. They are not motivated by profit at all. Plus, if you're dissatisfied with their service, it is costly and in many cases even impossible to fire them.
A much larger and totally ignored question has to do with the brutality of socialism. In the 20th century, the one-party socialist states of the Union of Soviet Socialist Republics, Germany under the National Socialist German Workers' Party and the People's Republic of China were responsible for the murder of 118 million citizens, mostly their own. The tallies were: USSR 62 million, Nazi Germany 21 million and PRC 35 million (http://tinyurl.com/zafgs5p). No such record of brutality can be found in countries that tend toward free market capitalism.
Here's an experiment for you. List countries according to whether they are closer to the free market capitalist or to the socialist/communist end of the economic spectrum. Then rank the countries according to per capita gross domestic product. Finally, rank the countries according to Freedom House's "Freedom in the World" report. You will find that people who live in countries closer to the free market capitalist end of the economic spectrum not only have far greater wealth than people who live in countries toward the socialistic/communist end but also enjoy far greater human rights protections.
As Dr. Thomas Sowell says, "socialism sounds great. It has always sounded great. And it will probably always continue to sound great. It is only when you go beyond rhetoric, and start looking at hard facts, that socialism turns out to be a big disappointment, if not a disaster."
Walter E. Williams is a professor of economics at George Mason University. To find out more about Walter E. Williams and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate webpage at www.creators.com.
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RELEASE: WEDNESDAY, FEBRUARY 12, 2014
Dependency, Not Poverty
There is no material poverty in the U.S. Here are a few facts about people whom the Census Bureau labels as poor. Dr. Robert Rector and Rachel Sheffield, in their study "Understanding Poverty in the United States: Surprising Facts About America's Poor" (http://tinyurl.com/448flj8), report that 80 percent of poor households have air conditioning; nearly three-quarters have a car or truck, and 31 percent have two or more. Two-thirds have cable or satellite TV. Half have one or more computers. Forty-two percent own their homes. Poor Americans have more living space than the typical non-poor person in Sweden, France or the U.K. What we have in our nation are dependency and poverty of the spirit, with people making unwise choices and leading pathological lives aided and abetted by the welfare state.
The Census Bureau pegs the poverty rate among blacks at 35 percent and among whites at 13 percent. The illegitimacy rate among blacks is 72 percent, and among whites it's 30 percent. A statistic that one doesn't hear much about is that the poverty rate among black married families has been in the single digits for more than two decades, currently at 8 percent. For married white families, it's 5 percent. Now the politically incorrect questions: Whose fault is it to have children without the benefit of marriage and risk a life of dependency? Do people have free will, or are they governed by instincts?
There may be some pinhead sociologists who blame the weak black family structure on racial discrimination. But why was the black illegitimacy rate only 14 percent in 1940, and why, as Dr. Thomas Sowell reports, do we find that census data "going back a hundred years, when blacks were just one generation out of slavery ... showed that a slightly higher percentage of black adults had married than white adults. This fact remained true in every census from 1890 to 1940"? Is anyone willing to advance the argument that the reason the illegitimacy rate among blacks was lower and marriage rates higher in earlier periods was there was less racial discrimination and greater opportunity?
No one can blame a person if he starts out in life poor, because how one starts out is not his fault. If he stays poor, he is to blame because it is his fault. Avoiding long-term poverty is not rocket science. First, graduate from high school. Second, get married before you have children, and stay married. Third, work at any kind of job, even one that starts out paying the minimum wage. And finally, avoid engaging in criminal behavior. It turns out that a married couple, each earning the minimum wage, would earn an annual combined income of $30,000. The Census Bureau poverty line for a family of two is $15,500, and for a family of four, it's $23,000. By the way, no adult who starts out earning the minimum wage does so for very long.
Since President Lyndon Johnson declared war on poverty, the nation has spent about $18 trillion at the federal, state and local levels of government on programs justified by the "need" to deal with some aspect of poverty. In a column of mine in 1995, I pointed out that at that time, the nation had spent $5.4 trillion on the War on Poverty, and with that princely sum, "you could purchase every U.S. factory, all manufacturing equipment, and every office building. With what's left over, one could buy every airline, trucking company and our commercial maritime fleet. If you're still in the shopping mood, you could also buy every television, radio and power company, plus every retail and wholesale store in the entire nation" (http://tinyurl.com/kmhy6es). Today's total of $18 trillion spent on poverty means you could purchase everything produced in our country each year and then some.
There's very little guts in the political arena to address the basic causes of poverty. To do so risks being labeled as racist, sexist, uncaring and insensitive. That means today's dependency is likely to become permanent.
Walter E. Williams is a professor of economics at George Mason University. To find out more about Walter E. Williams and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.
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Our Fragile Planet
Let's examine a few statements reflecting a vision thought to be beyond question. "The world that we live in is beautiful but fragile." "The 3rd rock from the sun is a fragile oasis." Here are a couple of Earth Day quotes: "Remember that Earth needs to be saved every single day." "Remember the importance of taking care of our planet. It's the only home we have!" Such statements, along with apocalyptic predictions, are stock in trade for environmental extremists and non-extremists alike. Worse yet is the fact that this fragile-earth indoctrination is fed to our youth from kindergarten through college. Let's examine just how fragile the earth is.
The 1883 eruption of the Krakatoa volcano, in present-day Indonesia, had the force of 200 megatons of TNT. That's the equivalent of 13,300 15-kiloton atomic bombs, the kind that destroyed Hiroshima in 1945. Preceding that eruption was the 1815 Tambora eruption, also in present-day Indonesia, which holds the record as the largest known volcanic eruption. It spewed so much debris into the atmosphere, blocking sunlight, that 1816 became known as the "Year Without a Summer" or "Summer That Never Was." It led to crop failures and livestock death in much of the Northern Hemisphere and caused the worst famine of the 19th century. The A.D. 535 Krakatoa eruption had such force that it blotted out much of the light and heat of the sun for 18 months and is said to have led to the Dark Ages. Geophysicists estimate that just three volcanic eruptions, Indonesia (1883), Alaska (1912) and Iceland (1947), spewed more carbon dioxide and sulfur dioxide into the atmosphere than all of mankind's activities in our entire history.
How has our fragile earth handled floods? China is probably the world capital of gigantic floods. The 1887 Yellow River flood cost between 900,000 and 2 million lives. China's 1931 flood was worse, yielding an estimated death toll between 1 million and 4 million. But China doesn't have a monopoly on floods. Between 1219 and 1530, the Netherlands experienced floods costing about 250,000 lives.
What about the impact of earthquakes on our fragile earth? There's Chile's 1960 Valdivia earthquake, coming in at 9.5 on the Richter scale, a force equivalent to 1,000 atomic bombs going off at the same time. The deadly 1556 earthquake in China's Shaanxi province devastated an area of 520 miles. There's the more recent December 2004 magnitude-9.1 earthquake in the Indian Ocean that caused the deadly Boxing Day tsunami, and a deadly March 2011 magnitude-9.0 earthquake struck eastern Japan.
Our fragile earth faces outer space terror. Two billion years ago, an asteroid hit earth, creating the Vredefort crater in South Africa. It has a radius of 118 miles, making it the world's largest impact crater. In Ontario, there's the Sudbury Basin, resulting from a meteor strike 1.8 billion years ago, which has an 81-mile diameter, making it the second-largest impact structure on earth. Virginia's Chesapeake Bay crater is a bit smaller, about 53 miles wide. Then there's the famous but puny Meteor Crater in Arizona, which is not even a mile wide.
I've pointed out only a tiny portion of the cataclysmic events that have struck the earth -- ignoring whole categories, such as tornadoes, hurricanes, lightning strikes, fires, blizzards, landslides and avalanches. Despite these cataclysmic events, the earth survived. My question is: Which of these powers of nature can be matched by mankind? For example, can mankind duplicate the polluting effects of the 1815 Tambora volcanic eruption or the asteroid impact that wiped out dinosaurs? It is the height of arrogance to think that mankind can make significant parametric changes in the earth or can match nature's destructive forces.
Occasionally, environmentalists spill the beans and reveal their true agenda. Barry Commoner said, "Capitalism is the earth's number one enemy." Amherst College professor Leo Marx said, "On ecological grounds, the case for world government is beyond argument." With the decline of the USSR, communism has lost considerable respectability and is now repackaged as environmentalism and progressivism.
Walter E. Williams is a professor of economics at George Mason University. To find out more about Walter E. Williams and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.
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