Socialism vs Capitalism
Socialism vs Capitalism. These are opposing schools of thought in economics. Essentially socialists believe in big government and capitalists believe in free enterprise. The remainder of this blog was written by Austrian Economists, Carlos Lara and Bob Murphy.
Excerpted from the Lara-Murphy Report
5 LMR NOVEMBER 2015
by Carlos Lara and Bob Murphy
If there was one thing we could say with regards to socialism that would cause people to rethink socialism’s entire ideology and reject it, we would point to its inability to calculate or appraise anything. It has no means for testing. Without this one ingredient in the fabric of society how could anything worthwhile ever be produced?
There would certainly be attempts at production, but there would be no means to determine whether the production was even necessary, or how to determine the cost to produce the desired good. No means are available to compute the value of anything, simply because in socialism there is no system of profit and loss. This fact alone makes the entire idea completely irrational.
“The Kingdom of Christ is not of this world; socialism, on the contrary, wants to establish the kingdom of salvation on earth. Therein lies its strength, therein, however, its weakness too, from which it will collapse some day just as quickly as it has triumphed.” ~Ludwig von Mises
Common sense should tell us that socialism’s proponents are not ushering in a better world as they so often promise. But rather they are introducing a transformed world that necessitates the eventual nationalization of everything in order to function for the limited lifespan it has before it collapses in failure.
Socialism exists only because private enterprise has produced so much already and continues to produce alongside it, although under increasing duress. But as the bureaucratic system of government grows in power, capitalism is rapidly being extinguished while the nation as a whole begins to resemble more of an “industrial army.”
Not too long ago the term socialism was never politically vocalized because it would be easily defeated at the voting polls. Nevertheless it continued to thrive camouflaged in the Welfare State. This is when we first saw the work ethic diminishing by the creation of easy money, and individuals of moderate income losing their incentive to save. Then government intervention came along and crippled the power to save altogether. Due to the continual erosion of our property rights we have been forced into a nation of speculators, consumers and welfare recipients.
Today, socialism is being openly embraced in the presidential elections as more than half of the country is living on taxpayer money. This is not a good sign. If ever we needed people of conviction and courage to stand strong against this menace it is now. Join with us and help build the 10%.
Yours truly,
Carlos and Bob
Authors: How Privatized Banking Really Works and the Lara-Murphy Report
Read more here: Lara Murphy Report
“It is the masses that determine the course of history, but its initial movement must start with the individual.”
Learn more about free enterprise, capitalism and how you can build the 10% by practicing Infinite Banking
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