What happens in a socialist nation when producers decide to adopt the same mindset?
by Barb on Thursday, July 15th, 2010 | 4 Comments
This is the fundamental problem I’ve seen with socialism that I’ve never been able to get around.
Socialism works when the major producers continue to work, thrive, and profit, and are therefore able to carry the nation on their backs.
But when EVERYONE in a nation approaches fiscal policy with a socialist mindset, how could it possibly be sustainable?
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when everyone in a country approaches fiscal policy with a socialist mindset you get communism, more specifically marxism, and no country on earth has ever been marxist.
it would be impossible for socialism to function without Capitalism, Socialism is the safety net used when a country enjoys capitalism, Capitalism is extremely wasteful, especially in human terms, employers have no issue with firing a thousand people if it will increase their profits, these 1000 people are then left with no income but welfare, without socialism they would not even have that.
by the same token, pure capitalism need socialism to continue to function, for example
Walmart – everyone knows Walmart, cheap and cheerful,
who make up nearly 70% of Walmarts customers? the poor and the welfare class, without their money (welfare money) Walmart goes bust, and then thousands of others end up unemployed.
(imagine if America did not do any form of welfare, tens of millions of people without any money at all, Capitalism would simply begin to break down, as there would not be enough money coming into the capitalist system to sustain it)
Socialism is a tidy way of pumping money back into the machine of commerce, the government takes your money (tax) then gives it back to Society, society then spends this money on capitalism.
even when the government takes your money and spends it on socialist things, like building hospitals, it is capitalism that benefits, all those machines, materials etc, all made by private companies, thus Socialism is in fact one of Capitalism’s favorite customers. Capitalism and Socialism have a love/hate relationship – neither can survive well without each other)
An economics professor at a local college made a statement that he had never failed a single student before, but had once failed an entire class.
That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer. The professor then said, "OK, we will have an experiment in this class on Obama’s plan". All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A.
After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.
The second test average was a D! No one was happy. When the 3rd test rolled around, the average was an F. The scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else. All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great but when government takes all the reward away, no one will try or want to succeed.
And the results are that the major producers get the majority of the profit even in socialist countries. It is in hard core and badly ran communist mindsets that what you are describing happens.
In socialism your highest producers help everyone to ensure that everyone survives. They continue producing and everyone else tries to produce too. Why else would you invest? Helping the poor is an investment just like any other. Keep them happy and provide them with a challenge and they will either stay not a problem or pay even you back when many of them rise to the challenge.
Ah, yes the lack of knowledge between socialism and communism. Nowhere in socialism do all people average the earnings–that is communism theory (which doesn’t ever work in reality).