Quotulatiousness

December 8, 2011

“Pure socialism” in the Soviet Union

Filed under: Economics, History — Tags: , , , — Nicholas @ 08:53

Nicholas Snow summarizes the only serious attempt to implement “pure socialism” in the first years after the Russian revolution:

The closest the Soviet Union came to actual pure socialism was the period known as War Communism, 1918 to 1921. This period is unanimously seen as a disaster, even among socialists. Production fell in most if not all industries, and millions starved to death. From then on the Communist Party struggled to keep hold of both their Marxist ideology and their power. Naturally the latter took precedence, and as a result the price system, which they originally wanted to abolish, took on a larger and larger role. [. . .]

The Soviets certainly liked to keep up appearances. At a glance the Soviet economy looked centrally planned. The planning board for each industry set output levels, and the State owned de jure all means of production. A closer look, however, revealed a different story. As Boettke and Anderson pointed out, the Soviet economy was closer to that of a mercantilist economy, a heavily regulated market economy effectively run by rent-seeking government officials and factory managers. De facto, the factory managers were the owners and residual claimants. They paid the State for the right to run the factory, and in return the State created a monopoly for them, just as in the mercantilist system of old.

Middlemen, known as the Tolkachi, worked on behalf of the State enterprises to sell surplus commodities on the one hand and purchase needed products on the other. They essentially created a market that allowed for economic calculation not possible under a pure socialist system.

December 3, 2011

QotD: How to emulate China’s success

Filed under: China, Economics, History, Quotations — Tags: , , , — Nicholas @ 11:36

To be clear, Andy Stern believes that the United States needs a Chinese-style central plan to flourish, one that will be executed by a streamlined government.

To really learn from the Chinese, and to enjoy such staggering growth rates, we should go about things differently: let’s have a Maoist insurrection followed by a civil war that lasts for several years. Then let’s destroy most of the wealth in the country, and drive out millions of our most enterprising and educated citizens by launching systematic terror campaigns during which millions of others will die in violence or of starvation. Next, let’s have a modest economic opening in coastal regions: impoverished citizens will be allowed to launch small-scale township and village enterprises and components will be assembled in a handful of cities by our stunted descendants. Then let’s severely curb those township and village enterprises because they represent a potential political threat and invite large foreign multinationals and state-owned enterprises [let’s not forget those!] to work our population to the bone at artificially suppressed wage rates, threatening those who complain with serious reprisals up to and including death. Let us also initiate a population control policy designed to improve our dependency ratio for a few decades. As large numbers of workers shift from low-value agricultural work to manufacturing, we will experience . . . rapid growth! Mind you, getting from here to there will involve destroying an enormous swathe of our present-day GDP. And that sectoral shift from rural to urban work will run out of gas pretty fast, as will the population control policy that will guarantee rapid aging.

Reihan Salam, “Andy Stern’s Peculiar Idea”, National Review Online, 2011-12-03

November 30, 2011

George Jonas: “All governments are communist”

Filed under: Cancon, Economics, Government — Tags: , , , , — Nicholas @ 08:52

George Jonas looks at how the government of Ontario managed to go a quarter of a trillion dollars into debt:

All governments are communist. Please, relax. What I mean is that all governments expect to be recompensed, not according to the value of their contributions to society, but according to their needs.

Marxist mythology defines progress as capitalism changing into socialism and socialism into communism. Under socialism, everyone contributes according to his abilities, and is compensated according to his contribution. This is an improvement over the vagaries of the market, but communist society goes further. While citizens still contribute according to their abilities, they’re compensated according to their needs.

[. . .]

In a free-market-cum-welfare-state such as Canada, people contribute to society according to their abilities, and are compensated for it at the whim of the market, minus the whim of the government, a.k.a. the taxman. Governments also contribute according to their abilities, but then compensate themselves according to their needs. Their needs vary as they aren’t equally corrupt or ambitious, though they seem equally insatiable. Premier Dalton McGuinty isn’t a communist but Ontario’s debt increased by $110-billion since his party came to power in 2003. We could have had Fidel Castro for less — well, Raoul, anyway.

A gentleman has his hand up. Yes? “Didn’t the debt go up because McGuinty kept his promise and didn’t raise taxes?” Nice try, sir, but no. He did.

August 27, 2011

Fulford: NDP offers “alternative to reality” to supporters

Filed under: Cancon, Economics, Politics — Tags: , , , — Nicholas @ 13:11

Robert Fulford will win no friends on the left with this article:

Jack Layton led the NDP more successfully than anyone else but what he led was as much a fantasy as a political party. Over five decades, under half a dozen different leaders, the NDP has evolved into a dream, a means of escape from ordinary life for those who feel the need of it. Layton’s successor will be required to embrace an elaborate and much-loved fiction.

The way it’s worked out, the central function of the NDP is to help members and supporters pretend that they are not living in a society built on capitalism. Democratic socialism is a fairy tale that they tell themselves as consolation for having to exist in a distressingly grubby, money-driven world. New Democrats don’t like business, even if they happen to work for corporations. They know and have always known that the profit motive is not a good thing. Many of them are prosperous, many take pride in their expensive houses, exotic vacations and pensions administered on Bay Street. Some have inherited large sums of money. Even so, they don’t care to be reminded that corporations make the comfort and convenience of their lives possible. They love their electronic devices but they don’t wish to dwell on the fact that computers and iPads exist (and reach us at low prices) because of the burning desire to maximize profit. The Co-operative Commonwealth Federation (CCF), out of which the NDP grew in 1961, stated its principles as the Regina Manifesto of 1933. It advocated many ideas still dear to Canadians but made one point absolutely explicit: “No CCF Government will rest content until it has eradicated capitalism.”

August 20, 2011

“I notice myself treating the memory and tradition of the USSR with an indulgence and tenderness”

Filed under: Books, History, Media — Tags: , — Nicholas @ 18:36

Michael Moynihan reviews a book by someone he really dislikes:

In 2003, the New York Times declared Eric Hobsbawm “one of the great British historians of his age, an unapologetic Communist and a polymath whose erudite, elegantly written histories are still widely read in schools here and abroad.” The Spectator, a right-leaning British magazine, gushed that Hobsbawm is “arguably our greatest living historian—not only Britain’s, but the world’s.” The Nation anointed him “one of Aristotle’s ‘men of virtue.’ “

That the 94-year-old Mr. Hobsbawm has long championed dictatorial regimes hasn’t diminished his standing among the intelligentsia or within the establishment he so obviously loathes. In 1998, Queen Elizabeth II bestowed upon him a Companion of Honour — “In action faithful and in honour clear.” But even many of Mr. Hobsbawm’s admirers find his slippery defenses of communism discomfiting.

To his critics, his ideological dogmatism has made him an untrustworthy chronicler of the 20th century. The British historian David Pryce-Jones argues that Mr. Hobsbawm has “corrupted knowledge into propaganda” and is a professional historian who is “neither a historian nor professional.” Reading his extravagantly received 1994 book, “The Age of Extremes: The Short Twentieth Century, 1914-1991,” the celebrated Kremlinologist Robert Conquest concluded that Mr. Hobsbawm suffers from a “massive reality denial” regarding the Soviet Union.

August 12, 2011

Gunter: Government is the problem

Filed under: Economics, Government, Politics — Tags: , , — Nicholas @ 12:18

Not much to disagree with Lorne Gunter here, at least in the main outline:

What do Obamacare, the London riots and a possible French debt crisis have in common? They are all proof that Western governments have grown beyond all reasonable, sensible limits. All these examples, and many more, demonstrate that we have grown utterly dependent on a ubiquitous state. Without one, we are at a loss about what to do.

[. . .]

And I am not talking solely of lifelong welfare recipient or habitual EI claimants. I am talking about middle-class voters who screech at the mere suggestion that they pay a portion of their “free” health care, education or pensions. I’m referring to cause-pleaders who run to government commissions claiming infringement of their rights every time fate deals them a less-than-ideal hand. Even people who think there is a social good in bicycle paths or parks or waterfront boardwalks, and therefore a common obligation to fund them through tax dollars.

And I also mean executives who want the state to use its coercive power to limit competition or to tax money away from working people to fund massive business-stimulus programs. A CEO demanding a bailout to mitigate bad business decisions they’ve made is every bit as guilty of this as a welfare advocate who claims it is the state’s duty to provide everyone with cable television, high-speed Internet, sports for their kids and hobby supplies so no one feels isolated from mainstream society.

Governments can do some things (relatively) well — courts, policing, national defence — but the more they attempt to do, the less well they do any of the tasks they’ve taken on. Western governments have vastly extended the range of human activities they now attempt to control, regulate, or foster. As with any organization that tries to do too much, it increases the chance of failure over a larger area.

Why Obama is being attacked from the left

Filed under: Economics, Media, Politics, USA — Tags: , , , , , — Nicholas @ 12:12

Victor Davis Hanson outlines the reasons for increasing attacks on President Obama and his administration from his erstwhile allies on the left:

Politics, of course. The combination of sinking polls to the near 40% range, the stock market nosedive, the Standard and Poor’s downgrade, the tragedy in Afghanistan, the confusion over Libya, the embarrassing golf outings and First Family insensitive preferences for the aristocratic Martha’s Vineyard, Vail, and Costa del Sol have contributed to a general unease on the Left about Obama’s judgment, perhaps to the extent that he might well take the Left down in 2012, both in the House and Senate, whether he wins reelection or not.

But the argument remains incoherent: Obama is being blamed for not being liberal enough — after federalizing much of the health care delivery system, expanding government faster than at any time since 1933, borrowing more money in two and a half years than any president in history, absorbing companies, jawboning the wealthy, going after Boeing, reversing the order of the Chrysler creditors, adding vast new financial and environmental regulations, appointing progressives like a Van Jones or Cass Sunstein, and institutionalizing liberal protocols across the cabinet and bureaucracy, from the EPA to the Attorney General’s Office.

In other words, there is now an elite liberal effort to disentangle Obama from liberalism itself, and to suggest that his sagging polls are not a reflection of Obama’s breakneck efforts to take the country leftward — but either his inability or unwillingness to do so!

Partly, the disappointment is understandably emotional. Just three years ago Obama was acclaimed as a once-in-a-lifetime prophet of liberalism, whose own personal history, charisma, teleprompted eloquence and iconic identity might move a clearly center-right country hard leftward where it otherwise rarely wished to go.

Partly, the anger is quite savvy: if one suddenly blames Obama the man, rather than Obama the ideologue, then his unpopularity is his own, not liberalism’s. There is a clever effort to raise the dichotomy of the inept Carter and the politically savvy Clinton, but in the most improbable fashion: Clinton supposedly was a success not because he was personable, sometimes compromising, and often centrist, and Carter was a failure not because he was sanctimoniously and stubbornly ideological, but just the opposite: Clinton is now reinvented as the true liberal who succeeded because of his principled leftwing politics; Carter like Obama was a bumbling compromiser and waffler.

July 20, 2011

Here’s a bold proposal for Greece

Filed under: Economics, Europe, Government, Greece — Tags: , — Nicholas @ 10:09

Bill Frezza has an idea of what Greece really needs:

what is the purpose of casting Greece into some selective temporary financial purgatory where the irrelevant Greek economy can continue embarrassing anyone foolish enough to lend their dysfunctional government a dime? Why not go all the way and give the country what many of its people have been violently demanding for almost a century?

Let them have Communism.

[. . .]

What the world needs, lest we forget, is a contemporary example of Communism in action. What better candidate than Greece? They’ve been pining for it for years, exhibiting a level of anti-capitalist vitriol unmatched in any developed country. They are temperamentally attuned to it, having driven all hard working Greeks abroad in search of opportunity. They pose no military threat to their neighbors, unless you quake at the sight of soldiers marching around in white skirts. And they have all the trappings of a modern Western nation, making them an uncompromised test bed for Marxist theories. Just toss them out of the European Union, cut off the flow of free Euros, and hand them back the printing plates for their old drachmas. Then stand back for a generation and watch.

The land that invented democracy used it to perfect the art of living at the expense of others, an example all Western democracies appear intent on emulating. Being the first to run out of other people’s money makes Greece truly ripe to take the next logical step beyond socialism.

H/T to Jon, my former virtual landlord, for the link. As he suggests “this probably would be kinda fun to watch”. After all, retro-kitsch “Soviet theme parks” are a going concern, why not a country-sized version?

July 7, 2011

QotD: The United Nations has a master plan

Filed under: Economics, Environment, Government, Liberty, Quotations — Tags: , , , — Nicholas @ 13:13

What’s amazing about this stuff — and believe me, there’s plenty more where this came from — is the unblushing shamelessness with which it advocates this economic insanity. Here is the world’s most powerful intergovernmental institution essentially arguing for the destruction of the global economy, enforced rationing, Marxist wealth redistribution, greater regulation, the erosion of property rights and global governance by a new world order of technocrats and bureacrats. And being so upfront about it they actually issue press releases, telling us what they’re planning to do and encouraging us to write about it.

[. . .]

As economies grow richer, so they have more money to set aside for cleaner rivers, fresher air, as well as to invest in R & D projects for ever more eco-friendly forms of energy. It’s no coincidence that quite the worst environmental damage in the last century was done in those countries behind the Iron Curtain. Free market economies tend naturally to be cleaner and healthier because clean and healthy is what people choose anyway if they can afford it. They don’t need government to step in and take their money in order to spend it inefficiently trying to achieve something which would have happened quite naturally anyway.

What this ludicrous UN report is advocating is the exact opposite of what the world needs if it is to become genuinely greener. All those people in the developing world, if they’re to live healthier, less environmentally damaging lives the very last thing they need is hand-outs from richer economies. What they need is property rights and free trade and the chance to grow their economy to the point where — cf the Kuznets Curve — they can afford the luxury of having to breed fewer children and to heat and light their homes without having to chop down the nearest trees. What they also need for us in the rich West to have thriving economies in order that we can import more of their produce.

Rationing and limits to growth are not the answer. The UN is a menace and we listen to its eco-fascist ravings at our peril.

James Delingpole, “UN reveals its master plan for destruction of global economy”, The Telegraph, 2011-07-07

July 2, 2011

“I remained somehow reluctant to conclude that the Communist Party of China would flat-out lie”

Filed under: China, History, Media, Politics — Tags: , , , , , — Nicholas @ 10:10

A tale of naivete about the Peoples’ Republic of China through the eyes of an American sympathizer:

The first time I tried to go to China was in 1967, the year after I graduated from college. My father was a radical leftist professor who admired Mao Zedong. And that influence, along with the Vietnam War protests — a movement in which I was not only a participant but an activist — led me to look at socialist China with very high hopes.

I was living in Hong Kong and wrote a letter to Beijing. A few months later I received a charming reply on two sheets of paper that looked like they had been labored over for days by a Red Guard with little English and a faulty typewriter. The letter explained that the Chinese people had nothing against me, but that I was from a predatory imperialist country and could not visit the People’s Republic. Before I left Hong Kong I bought four volumes of “The Selected Works of Mao Zedong,” and, rather grandiosely, ripped the covers off of them so that I might carry them safely back to the imperialist US.

In May, 1973, however, I got another chance. A year earlier, in April 1972, the Chinese ping-pong team had visited the US to break a twenty-three year freeze in diplomatic relations, and I had served as an interpreter. I made a good impression on Chinese officials on that US tour, in part because I led four of the six American interpreters in a boycott of the teams’ meeting with President Richard Nixon at the White House. (Nixon had ordered the bombing of Haiphong just the day before; to me, small talk in the Rose Garden just didn’t seem right.)

H/T to Tim Harford for the link.

June 9, 2011

Those ungrateful peasants

Filed under: Europe, Germany, Government, Humour — Tags: , , , — Nicholas @ 09:09

I had wondered about the origins of that bit of verse:

I asked if people were perhaps not tricked, but legitimately voting against the left because they objected to socialist policies such a massive spending and multiculturalism.

He responded that these issues were indeed difficult for ‘common people’ to comprehend, and therefore for the right to take advantage of. He reiterated however that the problem was not with the policies, it was that people did not ‘understand’.

This was a revealing statement, for it is a typical line of thinking across the left-wing political spectrum, from the most hardened communist to the most moderate social-democrat. While all leftists claim to be for the ‘people’, at the same time they have utter contempt for the people.

They believe they know what is best for the people, and if the people — uppity ungrateful peasants — object, then the people be damned.

Bertolt Brecht — ironically himself a dedicated Marxist — poked fun at this leftist mentality in a now famous poem, Die Lösung (The Solution), following a workers uprising against the Communist East German government in 1956.

    After the uprising of the 17th of June
    The Secretary of the Writers Union
    Had leaflets distributed in the Stalinallee
    Stating that the people
    Had forfeited the confidence of the government
    And could win it back only
    By redoubled efforts. Would it not be easier
    In that case for the government
    To dissolve the people
    And elect another?

May 28, 2011

Jack Layton: “I’m proud to call myself a socialist … But I don’t go around shouting it out.”

Filed under: Cancon, Politics — Tags: , , — Nicholas @ 12:29

Chris Selley takes a longer look at Jack Layton, the man who would be king prime minister:

Ask a socialist with revolutionary tendencies if Mr. Layton is a socialist, however, and the answer will probably be a resounding “no.” Mr. Layton, writer Stan Hister complained on Rabble.ca in 2004, “is a political doughnut. All sugar icing on the outside (or make that maple glaze) and a big hole in the middle.” The doughnut hole ought to be filled with “an alternative to capitalism,” he argued. “But it’s been a very long time since the NDP even pretended this was on its agenda.”

He’s right about that. And good heavens, just look at where it’s gotten them. Nobody inside or outside the New Democrats saw 103 seats coming on May 2, of course — 44 of them purloined from the Bloc Québécois, 17 from the Liberals and seven from the Conservatives. But if you ask those who have followed Mr. Layton’s political career since his days as a left-wing standard-bearer in Toronto municipal politics, be they friend or foe, you’ll find they don’t put much past Mr. Layton’s political abilities.

“There’s no question that Jack became leader of the NDP not because he wanted to forever lead a band in the wilderness. He took on the leadership of the NDP because he optimistically believed the NDP could be a major, if not the major force in government,” says Myer Siemiatycki, a professor of politics at Ryerson University and long-time friend of Mr. Layton.

Circumstances had to conspire in Mr. Layton’s favour, of course. Even he won’t admit to doing anything much differently on the campaign trail this time around. (Was his smile bigger, perhaps? “My mouth is the same size,” he laughs.) Reasonably centrist people had to be fed up enough to vote for a party that had once been to the left as Reform was to the right, and that had never governed federally. And it was nice of the Liberals to release a platform calculated to woo NDP-leaning voters, inadvertently making Mr. Layton’s party seem even more anodyne.

April 29, 2011

NDP surge extremely taxing for . . . NDP candidates?

Filed under: Cancon, Media, Politics — Tags: , , , , , , , — Nicholas @ 11:35

I’ve worked on political campaigns for minor party candidates (provincial and federal Libertarians) who had to keep their campaigning to the weekend and after-work slots because they still had to earn a living during the election. I find it hard to believe that so many candidates for a “major” party are running part-time candidacies:

There’s a standard-bearer in Quebec who went on a Las Vegas vacation for a week because she didn’t want to lose her deposit. She also reportedly spoke French so poorly that a local radio station had to scotch an interview rather than air the exchange. Another candidate went to the Caribbean and one travelled to France. There’s a Toronto candidate who has not campaigned at all, can’t be reached, and, judging by a Toronto Star report, quite possibly is an apparition. There are all kinds of students who, presumably, did not have the pesky constraints of full-time work that weighed down Mr. Larkin.

None of these things are unusual — third-place parties usually have a fair bit of cannon fodder — but it is unusual for anyone to be asking about them. And that’s what’s happening to the NDP. People are asking about them, and about the party and its platform, far more than they were last month, or even early last week.

It’s what naturally happens when an also-ran finds itself suddenly very much in the running. The key question for the NDP is: Can it manage four days of impromptu scrutiny?

That will depend on how the traditionally Liberal media handles this unexpected surge from the left: they know how to find awkward quotes and disreputable connections for candidates on the right, but generally have treated leftists with a faint air of “isn’t that cute?” rather than as serious campaigners. Can they apply the same standards in a mirror image?

It’s possible that they will give Jack Layton a much rougher ride than they have so far:

Jack Layton himself is also now facing a different sort of question about his own policies from reporters travelling with him. He was asked on Thursday about how his platform, which calls for a price on carbon, would affect gasoline prices. One analysis says the NDP plan would add 10¢ a litre at the pumps. Mr. Layton insisted that an ombudsman would be able to keep oil companies from raising prices for consumers, but he disagreed that he was proposing to regulate gasoline prices. Reporters described the exchange, which included questions about the AWOL candidates, as “testy” and “heated,” which has been rare for the NDP leader thus far. And testy exchanges lead to stories about how a leader is “on the defensive” or “responding to critics.” Eventually they can become “embattled.” (In the case of Mr. Ignatieff, a report on Thursday referred to him as “beleaguered.”)

“Tone matters,” explains Prof. Matthews. “People do respond to the media. Not everyone, of course, not the partisans and not the people who aren’t paying any attention, but there are people who take their cues from the coverage.”

Update: Publius points out that the situation could be at least as good as last season’s CBC offerings:

Everyone has been stunned by the NDP surge. The newly minted Sun News has started calling it an “Orange Crush,” which is a gross insult to a fine fizzy beverage. No one has been more surprised than the NDP. For years the party has run non-entity place holders in most ridings, as they did this time around. One of them is a Quebec barmaid who took a vacation mid-campaign, which says everything you need to know about the NDPs organization in Quebec. Now some of those ridings are competitive. We could have MPs in the next Parliament that were “accidentally” elected. There’s a sitcom in there somewhere.

April 10, 2011

QotD: The real issue of the election

Filed under: Cancon, Government, Politics, Quotations — Tags: , — Nicholas @ 00:08

What is the issue in this election? Why, the same as in all elections, my libertarian self exclaims. In the last 45 years, the only question has been whether the government implementing the NDP’s policies will be Liberal or Conservative.

OK, my libertarian self exaggerates. Does it exaggerate by much? I don’t think so.

The NDP may do abysmally in federal elections, but the NDP’s ideas flourish. Canada is governed from the middle, yes, but the middle is on the left. The politicians who form our next government will be statist — socialists in all but name — because there are no other kinds running. Our statists may vary in degree, but not in kind. Since the 1960s, classical liberals or conservatives either haven’t entered the arena or changed their policies afterwards. They wouldn’t have had a chance otherwise.

Here’s the irony, though: If socialists called themselves socialists, they wouldn’t stand a chance either. Canadians are funny that way. They’ll buy nothing but socialist policies and practices, but never from socialists. Calling things what they are isn’t politically polite in Canada.

George Jonas, “In Canada, socialists don’t win elections. But their policies do”, National Post, 2011-04-09

March 22, 2011

QotD: The modern welfare state

Filed under: Bureaucracy, Economics, Government, Quotations — Tags: , , , — Nicholas @ 11:26

In past ages, the desire of kings and emperors to control the lives of their people was no less than it is now, but they simply lacked the means to substantially affect the average serf or peasant’s daily life. A tax collector or company of soldiers might come by occasionally, but it was the church and not the state that formed the polestar around which most lives revolved. But beginning in the late 19th century, technology allowed the governments of the industrialized nations to reach down into each city, town, and hamlet, and “adjust” things directly. In totalitarian regimes the impulse was malign, but in western nations the intentions were mainly good: to provide subsistence and aid for those in need of it.

But one thing has become clear in the western nations since the welfare-state started in earnest after World War II: it spreads like kudzu, it encompasses and infantilizes ever-larger percentages of the population, and it beggars even the richest and most powerful countries. Leave aside questions of morality and efficacy for the moment — it is dreadfully clear that the main problem with the welfare-state is that we can’t afford it. No one can, no matter how rich or powerful.

This is the paradox of the welfare state: it will surely ruin us if left to run unchecked, yet so many people now depend upon it that we can’t stop.

[. . .]

We have so successfully turned Americans into wards of the state that any significant change will (I fear) have to be imposed by fiat or by circumstance, because I don’t think it will ever take place at the political level. There is simply no way to get from here to there without making the kinds of wrenching changes that no democratic/republican form of government is good at. (If you doubt me, look at the protests in Greece, Ireland, and Portugal. Even when the writing is on the wall, the population does their best to ignore it.)

Monty, “She Walks in DOOM! Like the Night…”, Ace of Spades HQ, 2011-03-22

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