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Showing posts with label socialism. Show all posts
Showing posts with label socialism. Show all posts
Tuesday, March 26, 2019
Wednesday, March 20, 2019
Why Long Lines at Motor Vehicle Departments Never Disappear
Why Long Lines at Motor Vehicle Departments Never Disappear
When millennials stand in MVA lines, do they wonder what their experience will be when the government takes a more significant role in their lives?
Wednesday, March 20, 2019

Imgur: MikeSierraTango3Kilo
The first time I stood in a long line at the Motor Vehicle Administration (MVA) in suburban Baltimore was 1979. Since then, much has happened in my life: I taught thousands of students, got married, raised a family, and moved away from Baltimore. Recently, my son, living in the Baltimore area, needed help with the subtleties of car buying, and I went to assist.
In a free market, consumers shape their experience by selecting products that serve them well, not offering or accepting bribes.
Compared to today, cars manufactured in 1979 were unsafe and unreliable. My ‘79 Volkswagen Rabbit developed a head gasket problem in the first 15,000 miles, but warranties in 1979 covered only one year or 12,000 miles. There were no airbags. Today, car manufacturers compete on safety; collision avoidance features, unimagined in 1979, shaped my son’s car choice.
The car-buying experience has completely changed, too. In 1979, buyers had limited information and often endured unpleasant negotiations with salesmen. Increased competition due to the ascendance of Japanese automobiles and a dramatic increase in information available to car buyers have made it simpler to get a great deal on a car without even setting foot in a showroom.
MVA Déjà Vu
After completing the new car purchase, we drove to the MVA to turn in my son's old plates. The address had changed, but the bleak Soviet-style interior remained intact. Just as in 1979, one line almost out the door snaked toward a check-in counter. When you made it to the counter, you then sat in one of the long rows of chairs until it was your turn.
Like Soviet-era bread lines, you got in line, waited, and hoped for a favorable outcome.
There were few signs. No attendants were there to answer questions. Like Soviet-era bread lines, you got in line, waited, and hoped for a favorable outcome.
My son was anxious to return to his job and insisted we leave. His plan was to return the next day to get in line an hour before the MVA opened at 8:30 a.m. Well before 8:30, many supermarkets and home improvement stores are open to accommodate early shoppers, but MVA managers set hours without having to meet the demands of customers.
As my son stood in the early morning cold, he chatted with others. Some shared stories of previous attempts to obtain MVA services, having abandoned their positions in line after waiting for hours. One told of a three-hour wait. They are lucky; in California, all-day waits are not uncommon.
Government Inefficiency
Support for socialism among millennials and Generation Z is on the rise. When millennials stand in MVA lines, do they wonder what their experience will be when the government takes a more significant role in their lives?
Dreaming of a revolutionary republic, do the millennials who support democratic socialists imagine they will be proclaimed heroes of the republic and ushered to the head of the breadline? Or, like their hero Bernie Sanders, do they believe that breadlines are a “good thing”? Will they feel true equality when, along with their neighbors, they share the heartache of not getting enough food to feed their starving children?
If the democratic socialists are successful, long lines, shortages, and bribes will become the new norm in America.
In short, why are some craving the MVA experience in more areas of their lives? Why do they not heed historical evidence of failed socialists’ regimes? Do they believe the next time it will be different? Do they believe the lines will disappear when the right people, with pure hearts like they imagine themselves to have, are in charge?
It’s fine to imagine the right people working at the MVA, but even the right people cannot create an efficient MVA.
Without the Profit Motive, Good Decisions Are Impossible
Democratic socialists such as Alexandria Ocasio-Cortez imagine a better world where decision-makers are not constrained by having to earn a profit. In his book Bureaucracy, Ludwig von Mises explains why decision makers can never make good decisions when they operate without the market signals of profit and loss:
It is true that under socialism there would be neither discernible profits nor discernible losses. Where there is no calculation, there is no means of getting an answer to the question whether the projects planned or carried out were those best fitted to satisfy the most urgent needs; success and failure remain unrecognized in the dark. The advocates of socialism are badly mistaken in considering the absence of discernible profit and loss an excellent point. It is, on the contrary, the essential vice of any socialist management. It is not an advantage to be ignorant of whether or not what one is doing is a suitable means of attaining the ends sought. A socialist management would be like a man forced to spend his life blindfolded.
The personnel at the Maryland MVA seemed indifferent; moving the line along did not seem to be part of their decision-making calculus. If supervisory personnel were on duty, they didn’t pitch in; they remained hidden in their back offices. In each of us is the capacity for empathy, as well as indifference and even cruelty. What makes one individual access the best qualities that humanity can offer while those qualities lay dormant in another individual?
At your local supermarket, if lines get too long, it is not uncommon to hear the “all personnel to the front” announcement. There is a palpable sense of urgency to serve customers. Mises explains that in successful organizations, managers understand consumer sovereignty:
[The manager] is not simply a hired clerk whose only duty is the conscientious accomplishment of an assigned, definite task. He is a businessman himself, a junior partner as it were of the entrepreneur, no matter what the contractual and financial terms of his employment are. He must to the best of his abilities contribute to the success of the firm with which he is connected.
Consider a buyer for the supermarket who often listens to the pitches of potential suppliers. Suppliers don’t offer her bribes; they know to offer her features valued by her customers. Does she set standards for customer experience and accept poor performance from her assistants? Again, Mises explains why the buyer’s decisions must respond to the needs of customers:
He will not waste money in the purchase of products and services. He will not hire incompetent assistants and workers; he will not discharge able collaborators in order to replace them by incompetent personal friends or relatives. His conduct is subject to the incorruptible judgment of an unbribable tribunal: the account of profit and loss. In business there is only one thing that matters: success. The unsuccessful department manager is doomed no matter whether the failure was caused by him or not, or whether it would have been possible for him to attain a more satisfactory result. An unprofitable branch of business-sooner or later-must be discontinued, and its manager loses his job.
The MVA manager is under no such constraints. Why try to fire an incompetent civil service employee when you’d be subjecting yourself to endless hearings? Why argue to open earlier and close later to accommodate customers when you’d be told: “That’s not the way it’s done here”?
“Consumers are merciless” when they are not well served, but only “in an unhampered market society,” writes Mises. At the MVA, those who wait suffer silently and follow the directives of those who care little about their welfare.
Bureaucracy Deadens the Soul
During my teaching career, I taught MBA classes on-site at a government agency. Many of those career employees were impressive. They held high-level positions; they were brilliant thinkers and dedicated learners. Yet, among these relatively young individuals was a running joke; they could recite exactly how many years and months they had until retirement. And to a person, they did retire at the earliest possible date. These individuals had far more autonomy than the government workers Mises wrote about in 1944. Nonetheless, core truths apparently remain:
Government jobs offer no opportunity for the display of personal talents and gifts. Regimentation spells the doom of initiative. The young man has no illusions about his future. He knows what is in store for him. He will get a job with one of the innumerable bureaus, he will be but a cog in a huge machine the working of which is more or less mechanical. The routine of a bureaucratic technique will cripple his mind and tie his hands. He will enjoy security. But this security will be rather of the kind that the convict enjoys within the prison walls. He will never be free to make decisions and to shape his own fate. He will forever be a man taken care of by other people. He will never be a real man relying on his own strength. He shudders at the sight of the huge office buildings in which he will bury himself.
How you do anything is how you do everything. In never learning to care for customers at the MVA, employees never learn to rely on their own best qualities. Because their own abilities and sensibilities lie dormant, they don’t know they are suffering along with those they “serve.”
In a free market, consumers shape their experience by selecting products that serve them well. In the Soviet Union and other socialist countries, citizens shaped their experience by offering or accepting bribes.
Next time it won’t be different. If the democratic socialists are successful in shifting more of the economy into government provision of services, long lines, shortages, and bribes will become the new norm in America.
Sunday, February 24, 2019
Saturday, February 16, 2019
Friday, February 1, 2019
Tuesday, October 9, 2018
Sunday, April 22, 2018
Saturday, April 7, 2018
Friday, April 6, 2018
Saturday, January 27, 2018
Frederick Douglass on Capitalism, Slavery, and the 'Arrant Nonsense' of Socialism
Frederick Douglass on Capitalism, Slavery, and the 'Arrant Nonsense' of Socialism
Understanding the political philosophy of the abolitionist leader.
Damon Root | August 28, 2016

Douglass soon became infuriated with the socialist speaker. "The attempts to place holding property in the soil—on the same footing as holding property in man, was most lame and impotent," Douglass declared. "And the wonder is that anyone could listen with patience to such arrant nonsense."
Frederick Douglass heard a lot of arrant nonsense from American socialists in those days. That's because most socialists thought the anti-slavery movement had its priorities all wrong. As the left-wing historian Carl Guarneri once put it, most antebellum socialists "were hostile or at least indifferent to the abolitionist appeal because they believed that it diverted attention from the serious problems facing northern workers with the onset of industrial capitalism." The true path to social reform, the socialists said, was the path of anti-capitalism.
But Douglass would have none of that. "To own the soil is no harm in itself," he maintained. "It is right that [man] should own it. It is his duty to possess it—and to possess it in that way in which its energies and properties can be made most useful to the human family—now and always."
Douglass had no patience for socialism because Douglass championed the set of ideas that have come to be known under the label of classical liberalism. He stood for Lockean natural rights, racial equality, and economic liberty in a free labor system. At the very heart of his worldview was the principle of self-ownership. "You are a man, and so am I," Douglass told his old master. "In leaving you, I took nothing but what belonged to me, and in no way lessened your means for obtaining an honest living." Referring to his first paying job after his escape from bondage, Douglass wrote: "I was now my own master—a tremendous fact." For Douglass, that tremendous fact of self-ownership necessarily included both the freedom to compete in the economic marketplace and the right to enjoy the fruits of his own labors.
Unsurprisingly, Douglass's individualistic, market-oriented definition of liberty put him at odds with the socialist creed.
The abolitionist-turned-socialist John A. Collins offers a telling contrast. A one-time colleague of both Douglass and William Lloyd Garrison, Collins went on a fundraising trip to England on behalf of the Massachusetts Anti-Slavery Society in the 1840s and returned home a devotee of the English socialist George Henry Evans. The "right of individual ownership in the soil and its products," Collins declared, are "the great cause of causes, which makes man practically an enemy to his species." Collins came to think that private property was the root of all evil.
He didn't remain much of an abolitionist after that. "At antislavery conventions," the historian John L. Thomas has noted, "Collins took a perfunctory part, scarcely concealing his impatience until the end of the meeting when he could announce that a socialist meeting followed at which the real and vital questions of the day would be discussed."
Perhaps the most significant left-wing attacks on the abolitionists at that time came in the pages of The Phalanx, a journal devoted to spreading the ideas of the French socialist Charles Fourier. "The Abolition Party," The Phalanxcomplained in an unsigned 1843 editorial, "seems to think that nothing else is false in our social organization, and that slavery is the only social evil to be extirpated." In fact, The Phalanx asserted, the "tyranny of capital" is the real evil to be extirpated because capitalism "reduces [the working class] in time to a condition even worse than that of slaves. Under this system the Hired Laborer is worked to excess, beggared and degraded... The slave at least does not endure these evils, which 'Civilized' society inflicts on its hirelings."
No wonder why Frederick Douglass thought the socialists were speaking arrant nonsense. He knew slavery firsthand, and he had no doubt that free labor was infinitely superior to it.
Ironically, when it came to making arguments against free labor, the socialists and the slaveholders made certain identical claims. For example, the South's leading pro-slavery intellectual, the writer George Fitzhugh, argued that free labor was "worse than slavery" because it simply meant that the capitalists were free to exploit the workers. The idea that "individuals and peoples prosper most when governed least," Fitzhugh wrote, was nothing but a lie: "It has been justly observed that under this system the rich are continually growing richer and the poor poorer." As for the pro-market writings of John Locke and Adam Smith, Fitzhugh sneered that they amounted to "every man for himself, and Devil take the hindmost."
Douglass took a different view. For example, taking a page from Locke's notion of private property emerging from man mixing his labor with the natural world, Douglass pointed to the many labors performed by black Americans as clear evidence that they were entitled to the full spectrum of natural rights. "Is it not astonishing," Douglass declared, "that, while we are plowing, planting, and reaping, using all kinds of mechanical tools, erecting houses...[that] we are called upon to prove that we are men!" Douglass's writings and speeches rang out with the very classical liberal tenets that were spurned by both the socialists and the slaveholders.
Today Frederick Douglass is best remembered as a giant of the abolitionist cause. That is as it should be. The destruction of slavery was his life's work, and he deserves to be honored and remembered for it. But as the above history also makes clear, Douglass deserves to be recognized on another front: namely, for being one of the 19th century's most eloquent critics of socialism.
Saturday, November 4, 2017
Clinton Adviser, Nobel Prize Winning Economist Endorsed Venezuelan Socialism
Clinton Adviser, Nobel Prize Winning Economist Endorsed Venezuelan Socialism
05/23/2016Tho Bishop
Venezuela is in a state of complete crisis. The country has been forced to face the horrors of hyperinflation, food shortages, and devastating depression. In spite of having the world’s largest oil reserves, the country has had to resort to rationing electricity. A horrifying article by the New York Times depicts the state of Venezuelan hospitals, with children dying by the day due to a lack of medicine and basic supplies.
This is the terrifying reality of socialism, the inevitable consequence of the economic policies of the late Hugo Chavez and his successor, Nicolás Maduro. Since 1999, the two socialist administrations championed price controls, nationalization of industries, and wealth redistribution.
While it is not surprising to see these policies supported by Marxist politicians, what is deeply troubling is the amount of support the Venezuelan model has received from prominent economists over the years. During a visit in 2007, Joseph Stiglitz, who received the 2001 Nobel Prize in economics, praised what he called “positive policies” of the Chavez administration:
Venezuelan President Hugo Chavez appears to have had success in bringing health and education to the people in the poor neighborhoods of Caracas. ... It is not only important to have sustainable growth, but to ensure the best distribution of economic growth, for the benefit of all citizens.What should alarm Americans is that Stiglitz, who has been described as an “influential advisor to Hillary Clinton,” appears determined to bring similar policies here.
Last year, as chief economist for the Roosevelt Institute, Stiglitz called for “rewriting the rules of the American economy” in a crusade against income inequality. His policy recommendations include higher taxes, more “smarter” regulation, and having the Federal Reserve focus more on unemployment than keeping inflation low — a call for an even more activist Fed than we’ve had since 2008.
It is ironic that Stiglitz has chosen to brand his policy recommendations as some new innovative concept for the country, when it is simply doubling down on the interventionist policies that the nation has suffered from for over 100 years.
Unfortunately, hearing such drivel come from a Nobel Prize winner isn’t surprising. Karl-Friedrich Israel has recently noted how the Nobel Prize has a history of being used as an endorsement of central planning. Socialist governments have long been able to count on American economists to serve as apologists for their schemes. In the 1960s, Paul Samuelson’s widely read economics textbook infamously described the socialist economy of the Soviet Union as growing faster than America’s.

This explains how Bernie Sanders has been able to receive the endorsement of 170 self-proclaimed “economists and financial experts” during his campaign.
Ludwig von Mises once wrote, "No one can escape the influence of a prevailing ideology.” The images coming from Venezuela should serve as a potent reminder of how dangerous the ideas of men like Joseph Stiglitz are.
Statism and economic interventionism must be rejected, in order for humanity to thrive.
Thursday, October 19, 2017
Imagine a World without Taxes
Mary Jane Burke, Marin County Superintendent of Schools makes an emotional plea to the Board of Supervisors to support a sales tax increase to pay for free preschool, childcare, healthcare and expanded social services for low income families. Of course, most Marin families will not qualify for free benefits. Many families must work two or more jobs just to pay for the essentials in Marin County. Marin has the dubious distinction for having the highest property taxes in the State of California.
Friday, September 29, 2017
New York City Mayor Attacks Private Property, Praises Socialism
By Alexandra DeSanctis — September 6, 2017
The cat’s out of the bag. In a Monday interview with New York magazine, New York City mayor Bill de Blasio admitted his disdain for private property and his desire for the government to control land distribution within the city.
The mayor went on an extended riff about the benefits of socialism when the interviewer asked what has been most difficult about reducing income inequality. “What’s been hardest is the way our legal system is structured to favor private property,” de Blasio replied. “I think people all over this city, of every background, would like to have the city government be able to determine which building goes where, how high it will be, who gets to live in it, what the rent will be.”
More from the mayor’s answer:
I think there’s a socialistic impulse, which I hear every day, in every kind of community, that they would like things to be planned in accordance to their needs. And I would, too. Unfortunately, what stands in the way of that is hundreds of years of history that have elevated property rights and wealth to the point that that’s the reality that calls the tune on a lot of development. . . .
Look, if I had my druthers, the city government would determine every single plot of land, how development would proceed. And there would be very stringent requirements around income levels and rents. That’s a world I’d love to see, and I think what we have, in this city at least, are people who would love to have the New Deal back, on one level. They’d love to have a very, very powerful government, including a federal government, involved in directly addressing their day-to-day reality. [Emphasis added.]
Earlier in life, De Blasio was a left-wing activist and an ardent supporter of the radical socialist government in Nicaragua — the Sandinista National Liberation Front — which at the time was strongly opposed by President Ronald Reagan and his administration.
Today, De Blasio is well known for his intensely progressive approach to managing New York City’s government. This interview reveals that perhaps his past desire for openly socialist policies still lingers.
Editor's Note: Many politicians laud the virtue of "Plan Bay Area" a central planning scheme to control housing and transportation in the Bay Area. MTC is now plotting to control even MORE COUNTIES than the original nine Bay Area counties to include Sacramento and the Central Valley in a supra regional administrative government akin to socialism We do not think it will work out well for them.
Socialism is like a nude beach: sounds pretty good until you actually see it
Monday, September 4, 2017
Thursday, July 20, 2017
Wednesday, May 31, 2017
A beginner’s guide to socialist economics
A beginner’s guide to socialist economics
In recent years, I have given a number of presentations to high-school and college students on the importance of economic freedom and persistent threat of socialism – as witnessed, for example, by the recent economic meltdown in Venezuela. One problem that I have encountered is that young people today do not have a personal memory of the Cold War, let alone an understanding of social and economic arrangements in the Soviet bloc, which, I suspect are either downplayed or ignored in American school curricula. As a result, I have written a basic guide to socialist economics, drawing on my personal experience growing up under communism. I hope that this – somewhat longer piece – will be read by the millennials, who are so often drawn to failed ideas of yore.
As a boy growing up in communist Czechoslovakia, I would, for many years, walk by a building site that was to become a local public health facility or clinic. The construction of this small and ugly square-shaped building was slow and shoddy. Parts of the structure were falling apart even while the rest of it was still being built.
Recently, I returned to Slovakia. One day, while driving through the capital of Bratislava, I noticed a brand new suburb that covered a hill that was barren a mere two years before. The sprawling development of modern and beautiful houses came with excellent roads and a large supermarket. It provided a home, privacy, and safety for hundreds of families.
How was it possible for a private company to plan, build, and sell an entire suburb in less than two years, but impossible for a communist central planner to build one small building in almost a decade?
A large part of the answer lies in “incentives.” The company that built the suburb in Slovakia did not do so out of love for humanity. The company did so, because its owners (i.e., shareholders or capitalists) wanted to make a profit. As Adam Smith, the founding father of economics, wrote in 1776, “It is not from the benevolence of the butcher, the brewer, or the baker, that we can expect our dinner, but from their regard to their own interest.”
In a normally functioning market, it is rare for only one company to provide a certain kind of good or service. The people who bought the houses in the suburb that I saw did not have to do so. They could have bought different houses built by different developers in different parts of town at different prices. Competition, in other words, forces capitalists to come up with better and cheaper products – a process that benefits us all.
Communists opposed both profit and competition. They saw profit-making as useless and immoral. In their view, capitalists did not work in the conventional sense. The real work of building the bridges and plowing the fields was done by the workers. The capitalists simply pocketed the company’s profits once the workers’ wages have been paid out. Put differently, communist believed that the capitalist class exploited the working class – and that was incompatible with the communist goal of a classless and egalitarian society.
But capitalists are neither useless nor immoral. For example, capitalists often invest in new technologies. Companies that have revolutionized our lives, like Apple and Microsoft, received their initial funding from private investors. Because their own money is on the line, capitalists tend to be much better at spotting good investment opportunities than government bureaucrats. That is why capitalist economies, not communist ones, are the leaders in technological innovation and progress.
Moreover, by investing in new technologies and by creating new companies, capitalists provide consumers with a mind-boggling variety of goods and services, create employment for billions of people, and contribute trillions of dollars in tax revenue. Of course, all investment involves at least some level of risk. Capitalists reap huge profits only when they invest wisely. When they make bad investments, capitalists often face financial ruin.
Unfortunately, communists did not share the above views and banned private investment, private property, risk-taking and profit-making. All large privately held enterprises, like shoe factories and steel mills, were nationalized. A vast majority of small privately held enterprises, like convenience stores and family farms, were also taken over by the state. The expropriated owners seldom received any compensation. Everyone now became a worker and everyone worked for the state.
In order to prevent new income inequalities and new classes from emerging, everyone was paid more-or-less equally. That proved to be a major problem. Since people did not make more money when they worked harder, few of them worked hard. The communists tried to motivate or incentivize the workforce through propaganda. Posters of strong and determined workers were ubiquitous throughout the former Soviet empire. Movies about hardworking miners and farmers were supposed to instill the population with socialist zeal.

In the end, tens of millions of people in the Soviet Union, China, Cambodia, and other communist countries were sent to labor camps. The living and working conditions in the camps were inhuman and millions of people perished. My great uncle, who was accused and convicted of being a supporter of the underground democratic opposition in communist Czechoslovakia, was sent to mine uranium for the Soviet nuclear arms program. Working without any protection from radiation, he died of cancer.
By the late 1980s, communist regimes lost much of their revolutionary zeal. Terror and fear subsided, and productivity declined further. Thus, in the late 1980s, an average industrial worker in Western Europe was almost eight times as productive as his Polish counterpart. Put differently, in the same time and with the same resources that a Polish worker needed to produce $1 worth of goods, a Western European worker could produce $8 worth of goods.
Just as they replaced the profit motive with propaganda and terror, so the communists replaced competition with monopolistic production. Under capitalism, companies compete for customers by slashing prices and improving quality. Thus, a teenager today can choose between jeans made by Diesel, Guess, Calvin Klein, Levi’s and many others.
Communists thought that such competition was both wasteful and irrational. Instead, communist countries tended to have one monopolistic producer of cars, shoes, washing machines, etc. But, problems soon arose. Since producers in communist countries did not have to compete against anyone, they did not have any incentive to improve their products. Compare, for example, the BMW 850 that went into production in West Germany in 1989 and the Trabant that was made in East Germany at the same time.


Moreover, the workers at the Trabant car plant received the same salary irrespective of the number of cars they produced. As a result, they produced fewer cars than were needed. People in East Germany had to wait for many years, sometimes decades, before they were able to buy one. Indeed, shortages of most consumer goods, from important items such as cars to mundane items such as sugar, were ubiquitous. Endless queuing became a part of everyday life.
Under capitalism, shortages are generally avoided through the movement of prices. Some prices, like those of national currencies traded globally, change virtually every second. Other prices change more slowly. If there is a shortage of strawberries, for example, their price will rise. As a result, fewer people will be able to buy strawberries. On the upside, the people who value strawberries the most and are willing to pay the higher price will always find them.
The movement of prices provides important information for the capitalists. Capitalists take their money and invest it in more profitable business ventures. If the price of something is rising, not enough of it is being produced. Investors rush in with new capital, hoping to make a profit. Production increases. The economy as a whole thus tends toward an “equilibrium” or a point at which capital is distributed roughly where it is needed.

Communists banned profit, capitalists, competition, free trade and much (if not all) private property – all of which are necessary for accurate prices to emerge. Instead, tens of millions of prices for items ranging from tractors to a loaf of bread were set annually (or every few years) by government bureaucrats. Since they could neither accurately predict how much bread would be produced (i.e., supplied) nor how much bread would be consumed (i.e., demanded), the bureaucrats almost always got the prices wrong.
Price-setting made shortages associated with low productivity worse. If the price of flour was set too high, bakeries would bake too little bread and bread would disappear from shops altogether. If the price of flour was set too low, too much bread would be baked and much of it would end up rotten. Put differently, communist economies were very inefficient.
To complicate matters, communists sometimes mispriced items intentionally. The price of meat, for example, was kept too low year after year out of political considerations. Low prices created an impression of affordability. On their trips abroad, communist officials would often boast that the workers in the Soviet empire could buy more meat and other produce than their Western counterparts. In reality, shops were often empty. As a consequence, money was of limited use. To get around shortages, many people in communist countries resorted to bartering goods and favors (or services).
Under communism, the state owned all production facilities, such as factories, shops and farms. In order to have something to trade with one another, people first had to “steal” from the state. A butcher, for example, stole meat and exchanged it for vegetables that the greengrocer stole. The process was inefficient, but it was also morally corrupting. Lying and stealing became widely used and trust between people declined. Far from fostering brotherhood between people, communism made everyone suspicious and resentful.

Postscript:
I am sometimes asked why, if communism was so inefficient, it had survived as long as it did. Part of the reason rests in the brute force with which the communists kept themselves in power. Part of it rests in the emergence of smugglers, who made the economy run more smoothly. When, for example, a communist shoe factory ran out of glue, the factory manager called his contact in the “shadow” or “underground” economy. The latter would then obtain the glue by smuggling it out of the glue factory or from abroad. Smuggling was illegal, of course, but it was preferable to dealing with the government bureaucracy – which could take years. So, in a sense, communism’s longevity can be ascribed to the emergence of a quasi-market in goods a favors (or services).
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