Why Does Socialism Invariably Fail?
The functional results of socialism are consistent with its antithetical morality discussed in a prior letter. The free market is the only possible way of determining commodities’ true economic values and the economical allocation of scarce resources; i.e., an agreeable monetary price based on values of willing buyers (consumers) and willing sellers (producers). Contrarily, socialism’s consumers’ insatiable desires are unlimited by the natural economic cost, until excess consumption must be curtailed by forced arbitrary rationing of the scarce resources. Inability of determining value results in fantastically irrational prices, demand and production, eliminating incentive for production, innovation and efficient cost reduction – invariably resulting in general scarcity and privation. With very few people politically determining production, variety drastically decreases, and arbitrary amounts produced are excessive or deficient relative to consumer values.
Whereas the free market economy is based on positive incentives, political socialist economy is based on negative, and ultimately violent, force. Free markets value, trust and encourage every individual to make rational choices that will satisfy their personal desires and values, whereas socialism forces every individual to abide by limited choices made for them by those placed in authority, essentially, dehumanizing the individual. The need to force compliance with the group values invariably results in ever increasing violence, especially, as people become aware they have been lead into scarcity and privation.
The inherent attributes of socialism have invariably produced the negative consequences from the ancient Greeks to Venezuela today, whether called Communism, Nazism, Fascism, Democratic Socialism or a Green New Deal.