My Thoughts on Socialism and Communism

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Before I begin, I hope to be as objective as possible in this analysis so that not to show bias towards a particular economic system before giving my opinion on the subjects at hand. Going into these discussions, many people often pre-judge based on the system someone supports with little knowledge of the economic system or why that person would choose one over the other.

With its planned economy, socialism can quickly allocate and concentrate resources to educate, industrialize, and modernize a society. It has been shown to be a great stimulant for the economy when it is done efficiently. The society becomes based on the needs of the people rather than the push and pull of the markets. It can build a strong government and military to defend its people and boarders. China, The former Soviet Union, NK, and Cuba are great examples of the implementation of socialist and communist policies.

In China 2020: A New Type of Super Power, Wu Angang gives a detailed analysis of how China was able to rise at the speed it has, and it’s foundation is socialism. He says…

With its universal wages, it’s nationalist sentiments, it’s nationalization of industry, and property restrictions, Socialism/Communism can give you a sense of non-racial, secular, and classless equality un-matched where everyone is of the same accord. FREEDOM.

Let’s dig deeper tho.

In practice, in a planned economy the markets become restrictive as a consequence of being planned and operated by the government. You, as an individual are given little choice as to how you can participate or what you can consume and/or own.

Examples of this are…govt housing compared to private neighborhoods. You have little choice in govt housing.

Postal service, USPS compared to private companies. Fed Ex and UPS vastly out due USPS in efficiency and service.

While Luxury markets would be out of the question.

Examples of this are…govt housing compared to private neighborhoods. You have little choice in govt housing.

Postal service, USPS compared to private companies. Fed Ex and UPS vastly out due USPS in efficiency and service.

While Luxury markets would be out of the question.

Y are these govt entities less efficient than private industries? Because the government has a restricted budget that has to be allocated efficiently across every other public sector while it ensures the stability of its employees,often times promoting hierarchy over expertise

While the govt doesn’t need to satisfy customer demand or investors, they only need provide a minimal service to the public. While a private company uses profit incentives to compete against other companies in innovation and service. Cuba has free health care but crappy service.

This takes me to Universal Pay scale. How would YOU as an individual feel, if you produced 70 units while your co-worker produced 25 units, but you both take home $10 for your efforts?

This has been found to be extremely inefficient with out extreme oversight.

There r testimony from Russians and Cubans who say that every doctor or teacher or factory worker in the country was paid a particular amount regardless of their expertise or production, so in other words, you as an employee can’t shop for the best wages based on your experience.

This can only be done through the nationalization of industries.

This is essentially taking away rights to private property from your citizens. Why? Because the govt now controls who can operate within that industry rather than the individual themselves based on their means.

As governments begin to control the national identity and operations, the government begins to silence and put down dissenters. Governments become militaristic and restrictive, often banning and burning books, ratifying what individuals can own, and silencing academics.

Of course capitalism experience many of these issues on various scales, no one is free from propaganda, however, the difference imo is efficiency in long term sustainability, freedom of choice and opportunity, private property and innovation, and sharing of ideas and opinions.

One thing I’ve learned from studying economics, resources are finite and their is always a price to pay so true socialist equality can only be forced.

I can applaud Castro and Guevara, I can applaud DuBois, Black Panthers, the Black Liberation Army and even Chinas Cultural Revolution all day for their accomplishments, I agree with a lot of them, but I can’t say they were a total success.

Here are some great books I’ve read on the subjects of Capitalism and Socialism. Check them out!!