Saturday, February 6, 2010

The Great Crash

Doctor Zero at HotAir nails it again!:

I believe collectivist ideology is an offense against liberty, and also a tragically inefficient means of addressing the social problems it professes to care about. A study of history shows that every form of collectivist ideology has grown increasingly vicious, and eventually murderous, as its ruling elite struggle to retain power. There is one other reason I’m opposed to collectivism: it’s doomed to fail.

Socialism fails because it’s a static solution imposed on a dynamic society. People respond to incentives, chasing carrots and avoiding sticks. The initial proposition of the New Deal was to provide for the needs of the desperate, by collecting taxes from the wealthy. Unsurprisingly, the system devolved into the vote-buying and corruption we live with today, becoming a heavy wagon hitched to a struggling middle class, which provides far more of the funding than those “fat cats” socialists love to use as whipping boys.

Even without a catastrophic trigger, the tragic end of our old system would begin when the job-creating upper class exercised its option to withdraw from the economy, taking money and capital with it. One of the most important attributes of wealth is the range of options it brings. The people targeted most aggressively by desperate socialists can simply leave the system. They can stop investing, hoard their wealth, or move overseas. They can do this very quickly, and they are, by definition, highly skilled at sensing the right moment for dramatic action


1 comment:

  1. Great article Pundit, but the sad part is that you are preaching to the choir on here and FACTUAL messages like this are viewed as "extremism" and fought tooth and nail. You can literally beat a Liberal to death with truth and facts and they still worship at the altar of collectivism!