It should be evident that collective ideologies fail miserably in their stated objective of creating a more equitable and prosperous society compared to the alternative system of private property and market-based exchanges (generally labeled capitalism.) The empirical evidence that socialism fails is overwhelming to the objective observer and the analytical support for why it fails is not hard to understand. Yet, socialism’s appeal continues among a broad coalition of groups in many societies, even those that are fairly liberal.
We’ll go into the analytical reasons why socialism fails in the next part. Here I am going to focus on the simple matter of deciding whether socialism indeed fails to deliver. To that end, we just need to ask in which direction people prefer to move — from socialist countries to capitalist countries or the other way around? From the US, Canada, the UK, Australia, New Zealand, South Korea, Japan, Germany, etc., to Venezuela, Russia, China, Cuba, North Korea, etc., or the other direction?
People overwhelmingly move from socialist countries to capitalist countries. Which reminds me of a joke. These two guys were arguing whether Russia or the US was nicer. The Russian said to the American, “You Americans only care about money. We in the USSR care about people.” The American replied, “I agree. That’s why we Americans lock up our money, and you lock up your people.” Continue reading