At the New Republic, Malcolm Harris asks an interesting question: Was the Soviet Union’s problem that Communism can never work? Or did the Soviets just need a lot more MacBook Airs?
Actually, Harris is channeling Paul Mason, the author of the book he is reviewing, and unfortunately, he doesn’t really try to answer the question. Instead he makes the stridently timid argument that this won’t happen because the capitalists won’t let it, at least without a healthy dose of revolutionary action.
I’ll swing for the fences and argue that no, even with better computers, Communism isn’t going to work. Nor some gauzy vision of post-capitalism that looks like Communism, but with YouTube videos.
In retrospect, Communism seems wildly stupid, or at least, incredibly naive. Did the people who dreamed up this system not understand the enormous incentive problems they were creating? As Ayn Rand dramatized the problem in Atlas Shrugged: “It’s miseries, not work, that had become the coin of the realm — so it turned into a contest among six thousand panhandlers, each claiming that his need was worse than his brother’s. How else could it be done?” The incentives of “from each according to his ability, to each according to his need” drive toward falling production, which means there won’t be enough to cover the needs.
Or as a former colleague who fled Communist Poland once told me, “They pretended to pay us, and we pretended to work.” There is a reason that basically all the Communist and Socialist regimes ended in some degree of authoritarianism.
How could anyone who had, y’know, met some people in their visit to our planet, not see that this was coming? Large swathes of Communist and Socialist writing was naive and impractical. But the idealists weren’t entirely unaware that when monetary incentives disappeared, they would need to find other ways to get people to do things.
Megan McArdle, “Yes, Computers Have Improved. No, Communism Hasn’t”, Bloomberg View, 2015-09-02.
August 27, 2017
QotD: Communism wouldn’t have worked any better with modern computers
August 25, 2017
QotD: The “job” of literature between the wars
Until round about WWI when the wheels came off European culture (and in that strata, American taste always molded itself on European taste, starting before the revolution) “high culture” and “proper taste” which defined “quality literature” involved the author making sure the upper classes knew he was one of them. That is, the story would be full of literary references, to either classical literature (a lot) or to various artists and writers which had become hallmarks of high culture. (Shakespeare or Chaucer, not “quality” or high class in their own times, but rendered more difficult and therefore more rarefied a taste by the change in language.)
Then the wheels came off. There was some insurgence and some of this type of thing before then, mind, but it was after WWI that self-loathing became the hallmark of the upper classes in Europe. Then, because they were still the elite and (in their own eyes) the taste makers, the mark of rarefied good taste became the nostalgie de la boue. Where Shakespeare and his like had written about kings and queens or at least Lords and Ladies, increasingly the “modern” and cutting edge literature bypassed even decent middle class who were despised as bourgeois and concentrated on ne’er do wells, the criminal element, the lowest of the low in morals more than in money. Alternately it concentrated on the corruption and bankrupt morals of the [nouveau riche], the noblemen, those that could be seen as winners in life.
This is what Agatha Christie in her Miss Marple books more than once characterizes as “Unpleasant people in unpleasant circumstances, doing unpleasant things.”
This trend, roughly akin to an adolescent reveling in writing things that upset his parents, as communism became an established thing and the USSR reached out tendrils of propaganda to the west, turned into a mess of set-pieces, the “international realism” of socialists, about as artistically relevant as the national realism of the fascists. It became set pieces to the point that you REALLY need to question your cultural assumptions to get at the truth.
The “literature” of this type has given us the exploited mill workers, for instance, living in horror and squalor. While this is absolutely true when compared to the conditions of our time, those mill workers didn’t get the chance to live in our time, in the conditions of our time. They had the choice of living off the land or going to the city and living in factories. Life on the land has been painted with the soft tints of the romantics and the glorious tints of the early Marxists, but if you actually LOOK at the industrial revolution going on before our eyes in China or India, you realize people are coming to the cities and getting factory jobs because life is BETTER there than in the rural fastnesses they come from. Sure, their lives as industrial workers would horrify American workers, but they’re relatively good for what they have available.
In this sense, the literature of that time did its job which was to sell a socialist future (though most of the authors who were trying to write quality were probably unaware of what they were doing or how the dictates of “quality” came from a self-hating and often outright traitorous elite.) It shaped even the minds of those who are naturally suspicious of socialist tripe.
Sarah A. Hoyt, “The Quality of Writing”, According to Hoyt, 2015-10-11.
August 7, 2017
QotD: Communism, competition, and the socialist calculation problem
Competition turns out not to be so wasteful; it makes a system resilient. That misunderstanding was a symptom of a larger issue called the socialist calculation problem. We think of prices largely in reference to ourselves, or other individuals, which is to say that we mostly see them as the highest barrier to getting something we want. But as we pull back to look at society, or the globe, we see that they are in fact an incredibly elegant way to allocate scarce resources.
This was best explained by Friedrich Hayek in his essay “The Use of Knowledge in Society.” Some good like tin becomes scarce, perhaps because a large tin mine has failed, or perhaps because there is a new and very profitable use for tin that is soaking up much of the supply. The price rises, and all over the world, people begin to economize on tin. Most of them have no idea why the price of tin is rising, and if they did, they wouldn’t care; they just switch to another metal, or start recycling old tin, finding a way to bring global demand closer in line to global supply. A lot of that is possible only because of price competition.
You can think of this as something like a distributed computer network: You get millions of people devoting some portion of their effort to aligning consumption with production. This system is constantly churning, making billions of decisions a day. Communism tried to replace this with a bunch of guys sitting around in offices, who occasionally negotiated with guys sitting around in other offices. It was a doomed effort from the start. Don’t get me wrong; the incentive problems were real and large. But even if they could have been solved, the calculation problem would have remained. And the more complex an economy you are trying to manage, the worse a job you will do.
The socialist calculation problem is not fundamentally an issue of calculating how to produce the most stuff, but of calculating what should be produced. Computers can’t solve that, at least until they develop sufficient intelligence that they’ll probably render the issue moot by ordering our toasters to kill us so that they can use our bodies for mulch.
Megan McArdle, “Yes, Computers Have Improved. No, Communism Hasn’t”, Bloomberg View, 2015-09-02.
August 5, 2017
At least someone on the left is willing to find fault with Venezuela’s leadership
Of course, when I say “find fault”, I mean “criticize for not being even more horrible“:
Ken Livingstone, a former mayor of London, has blamed the turmoil in Venezuela on the unwillingness of the former president, Hugo Chávez, to execute “oligarchs” after he came to power.
Livingstone, who is suspended from the Labour party, also blamed the economic crisis in the country on the government’s failure to take his advice on investment in infrastructure, which he said would have reduced the Latin American state’s dependence on oil.
The former mayor, a longtime supporter of the late president Chávez and his successor Nicolás Maduro, said the socialist leader’s enemies wanted to restore their power.
“One of the things that Chávez did when he came to power, he didn’t kill all the oligarchs. There was about 200 families who controlled about 80% of the wealth in Venezuela,” Livingstone told Talk Radio.
“He allowed them to live, to carry on. I suspect a lot of them are using their power and control over imports and exports to make it difficult and to undermine Maduro.” When pressed, Livingstone said he was “not in favour of killing anyone”.
Livingstone visited Venezuela during his time in office as mayor of London, striking a cut-price oil deal with Maduro to supply Transport for London. The Labour leader, Jeremy Corbyn, has also regularly expressed his admiration for Chávez, saying in 2013 he was “an inspiration to all of us fighting back against austerity and neoliberal economics in Europe”.
August 4, 2017
Short memories and willing self-deception over Venezuela
In the Los Angeles Times, James Kirchick took the pundits to task for their adulation of Venezuela’s government as it plunged deliberately into a humanitarian disaster:
On Sunday, Venezuelan President Nicolas Maduro claimed victory in a referendum designed to rewrite the country’s constitution and confer on him dictatorial powers. The sham vote, boycotted by the opposition, was but the latest stage in the “Bolivarian Revolution” launched by Maduro’s predecessor, the late Hugo Chavez. First elected in 1998 on a wave of popular goodwill, Chavez’s legacy is one of utter devastation.Thanks to Chavismo’s vast social welfare schemes (initially buoyed by high oil prices), cronyism and corruption, a country that once boasted massive budget surpluses is today the world’s most indebted. Contraction in per capita GDP is so severe that “Venezuela’s economic catastrophe dwarfs any in the history of the U.S., Western Europe or the rest of Latin America” according to Ricardo Hausmann, former chief economist of the Inter-American Development Bank. Transparency International lists Venezuela as the only country in the Americas among the world’s 10 most corrupt.
Socialist economic policies — price controls, factory nationalizations, government takeovers of food distribution and the like — have real human costs. Eighty percent of Venezuelan bakeries don’t have flour. Eleven percent of children under 5 are malnourished, infant mortality has increased by 30% and maternal mortality is up 66%. The Maduro regime has met protests against its misrule with violence. More than 100 people have died in anti-government demonstrations and thousands have been arrested. Loyal police officers are rewarded with rolls of toilet paper.
The list of Western leftists who once sang the Venezuelan government’s praises is long, and Naomi Klein figures near the top.
In 2004, she signed a petition headlined, “We would vote for Hugo Chavez.” Three years later, she lauded Venezuela as a place where “citizens had renewed their faith in the power of democracy to improve their lives.” In her 2007 book, The Shock Doctrine, she portrayed capitalism as a sort of global conspiracy that instigates financial crises and exploits poor countries in the wake of natural disasters. But Klein declared that Venezuela had been rendered immune to the “shocks” administered by free market fundamentalists thanks to Chavez’s “21st Century Socialism,” which had created “a zone of relative economic calm and predictability.”
Chavez’s untimely death from cancer in 2013 saw an outpouring of grief from the global left. The caudillo “demonstrated that it is possible to resist the neo-liberal dogma that holds sway over much of humanity,” wrote British journalist Owen Jones. “I mourn a great hero to the majority of his people,” said Oliver Stone, who would go on to replace Chavez with Vladimir Putin as the object of his twisted affection.
June 21, 2017
QotD: Profit
While capitalism has a visible cost – profit – that does not exist under socialism, socialism has an invisible cost – inefficiency – that gets weeded out by losses and bankruptcy under capitalism. The fact that most goods are more widely affordable in a capitalist economy implies that profit is less costly than inefficiency. Put differently, profit is a price paid for efficiency.
Thomas Sowell, Basic Economics (fifth edition), 2015.
May 23, 2017
Venezuela’s American “useful idiots”
Marian L. Tupy on the American apologists for the ongoing economic and humanitarian disaster unfolding in Venezuela, thanks to that country’s embrace of socialism:
… all socialist countries eventually come to experience similar economic and political problems. And, just as surely, there will always be those in the West who will jump to socialism’s defense. Vladimir Lenin, the founder of the Soviet state, called such people “useful idiots”.
I was reminded of the immensely seductive nature of socialism this week, when Tucker Carlson, the host of the eponymous show on Fox News, hosted a young socialist from The Students and Youth for a New America. To give you a sense of the conversation between the two, I have transcribed some of Dakotah Lilly’s statements below:
“We need to acknowledge that what Venezuela is facing right now is terrorism at the hands of the opposition. Opposition has bombed schools, they have bombed buses, [and] they have taken wiring and strung it across roads to behead cops on motorcycles. These are not choir boys. These are violent extremists, hell-bent on taking away the progress that Venezuela has made over the past few years.”
“If you look at the casualties that have happened in the past few months in these protests, the majority of those that have been killed have been trade unionist leaders, have been dedicated Chavistas, have been people on the Left.”
“In terms of economics, the sanctions that the United States has put on Venezuela and the hoarding done by multi-national corporations in Venezuela, certainly does not help the [economic] situation.”
Almost everything that Lilly says here is demonstrably false. Extensive reporting by the New York Times, hardly a promoter and defender of “unbridled capitalism”, shows that most of the victims of political violence in Venezuela have been anti-government protesters.
Prey for Socialism’s Siren Call
Moreover, the sanctions imposed by the United States on a few individuals connected to the Venezuelan government have nothing to do with that country’s economic meltdown.
Aside from oil exports, Venezuela does not have or make anything that anyone in the world wants to buy. Thus, when the oil price collapsed from $140 to less than $50 a barrel, the country lost most of the foreign exchange it needed to purchase food and consumer goods abroad. Shortages ensued.
Admittedly, it is not entirely fair to criticize American millennials for their almost unfathomable ignorance. The state-schools system is, by and large, broken. American pupils can go through years of primary and secondary “education” without learning about communist crimes and socialist economic failures. Solutions to these problems are not easily to find. History and economics are not the most popular of subjects, and more often than not, the faculties are Left-leaning.
To make matters worse, young people, such as Dakotah Lilly, are deeply idealistic and easy prey to the siren call of socialism. They see the imperfections of free-market democracy at home and assume that countries with the opposite economic and political arrangements, such socialist Venezuela, must offer a better life to their people.
As Steven Horwitz pointed out earlier this month, “you can’t deny that Venezuela is a socialist calamity“:
This humanitarian disaster has raised the question of who or what to blame. That question puts self-proclaimed socialists and their progressive sympathizers in a difficult spot. After all, one can easily find lots of examples (from Michael Moore to Bernie Sanders) of people on the left praising or endorsing Chavez’s economic policies. So what can people who took that position say in the face of this disaster? And what can the defenders of free enterprise say as well?
Many on the left will start by denying that socialism is at fault. Sometimes they’ll deny that the Chavez-Maduro policies were “real” socialism. In other cases, they’ll argue that while their intentions might have been good, corruption and poor implementation doomed good policies to failure.
Both of these arguments have real problems.
If those policies were not “real” socialism, then why did so many sympathetic to socialism express so much support for them and argue that they would be transformative in ways socialists value? Chavez himself made such claims.
Do all of them not understand what socialism is? The variety of attempts Chavez made to prevent markets and prices from working and to substitute some form of economic planning in the name of the people have been broadly consistent with socialism since Marx. If that’s not socialism, what exactly is meant by that word anymore?
May 18, 2017
QotD: The state as “hero”
Ever since Hegel or maybe Plato, statists have been telling a story about government in which government itself is the hero in an epic struggle. At least for Hegel, the state was the mechanism by which God worked out His will. For Marx, the state was an expression of cold immutable forces. For the socialists who followed, control of the state was a kind of MacGuffin but over time it became the hero itself.
When Obama talks about the moral arc of the universe bending towards justice, the physical manifestation of that pie-eyed treacle is always government. When liberals talk about the progress we’ve made as a society, the hero is always the state (and the heroic individuals who bent it to their will). It doesn’t matter that the market, non-state institutions, and heroic individuals tend to solve most of the problems in life; the government is always shoe-horned in as the indispensable author of beneficence.
Of course, the often unstated heroes are the people who put their faith in government. When Obama says, “Government is us,” what he’s really saying is that we can be heroic on the cheap by letting the government do what liberals want. That’s the real moral of their story. And conservatives need to get better at telling a better one.
Jonah Goldberg, “The Goldberg File”, 2015-09-11.
March 17, 2017
Peronism, fascism, and socialism
David Warren is in fine form:
Peronism came to Argentina and never left. Not only have the Partido Justicialista and its avatars dominated Argentine electoral politics, through their various iconic husband-and-wife acts over the last seventy years, but they have contaminated the thinking of the whole country, which adhered to their arbitrary and contradictory doctrines even during the sixteen years they were banned, and adheres to the present day when once again they are nominally out of power. Actually it is a century, now, since Peron’s “Radical” predecessors first won election (dating from Hipólito Yrigoyen, 1916). Moral, intellectual, and material squalour is their chief legacy to a country which was once among the world’s most prosperous and most free. The spiritual equivalent has now migrated to Rome.
This, at least, is the impression I have formed from afar. “Justicialism,” so far as one can read, embodies every sort of rhetorical populism, across the political spectrum, but with a heavy and perfectly consistent bias towards centralized power. It stands for “social justice” — an absolutely imaginary and therefore unattainable ideal. It is on the side of labour and of management, it is Catholic and anti-Catholic, racist and anti-racist, isolationist and aggressive, leftist and rightist and dogmatically nationalist with all the contradictions nationalism entails. Yet it is not unique.
Socialism is leftwing Fascism; Fascism is rightwing Socialism. Other than that, they are the same. They vie for the same voters, and politicians may move comfortably back and forth between their symmetrical (i.e. identical) extremes. The principle underlying both is that the government should control everything, for the government’s idea of the common good. Whether the government technically owns everything is neither here nor there. Indeed, Socialism/Fascism works better, for the government, if private actors can be made to take the blame and the losses for all of the government’s goon-show mistakes. Any “excess” income on which they fall in their government-assigned monopolist stations can then be impounded.
February 1, 2017
“This unapologetic Luddism is what passes for futurism in leftist circles these days, I fear”
Colby Cosh looks at the tribulations of the French Socialist party (the rough equivalent of Canada’s “Natural Governing Party”) as they scramble to remain meaningful in the upcoming elections:
[Benoît] Hamon’s candidacy will provide a first serious electoral test of the ultra-trendy universal basic income idea. His proposal is for a universal income of €750 a month, or about $1,050 in Canadian currency. This is none too generous an amount to live on, even granting that France is a hell of a nice place to be poor. But without other sources of financing, such a UBI might require nearly an immediate doubling of French state revenue, even if you count the existing welfare programs France could get rid of.
Valls expended a lot of effort challenging Hamon’s math, to little apparent avail. Hamon has “plans” to raise new revenue, mostly of a hand-wavy sort that will be familiar from the worst sort of Canadian provincial election. But his tax on robots and artificial intelligences is certainly a fun new wrinkle.
On hearing of the idea, the advanced, full-blooded nerd will immediately think of Frank Herbert’s Dune novels. Herbert, finding it amusing to construct a science-fiction universe without computers, created a backstory in which humans had risen up in an enormous, ultra-violent “Butlerian Jihad” and established a pan-galactic religious taboo: “Thou shalt not make a machine in the likeness of a human mind.”
For, after all, any machine that mimics human operations, mechanical or cognitive, takes away a potential job from a human being, or from dozens of them. That is the premise of the “robot tax”, and, by all logic, it should apply to computers. Or, for that matter, to any labour-saving device — any device that multiplies human productivity at all. Pens. Crocs. Red Bull.
This unapologetic Luddism is what passes for futurism in leftist circles these days, I fear. The sense that automation finally went too darn far, in the year 2015 or thereabouts, finds willing hearers everywhere in communities that used to be able to count on beer-bottling plants or fish canneries or automotive assembly lines. The universal basic income is of interest to future-minded politicians because that low-skill mental and physical work seems to be disappearing. Some see an approaching world in which scarcity of goods is transcended, by dint of robots and 3D printing and machine learning, and most humans have no opportunities for productive work.
January 6, 2017
Venezuela’s journey from the “Bolivarian Revolution” to “Zimbabwean levels of hunger and inflationary poverty”
Jack Staples-Butler on the moral accountability for outside supporters (particularly the British left) of what has turned into a huge humanitarian disaster in Venezuela:
DENIAL in the face of catastrophic failure of one’s ideas is a predictable reaction from a believer, as per Leon Festinger’s theory of cognitive dissonance reduction in response to the failure of one’s beliefs. Denial in the face of shame for one’s actions is an experience well-studied by psychologists and criminologists. One 2014 study summarises the role of ‘shame’ in creating both denial of responsibility and recidivism among offenders:
“Feelings of shame… involve a painful feeling directed toward the self. For some people, feelings of shame lead to a defensive response, a denial of responsibility, and a need to blame others — a process that can lead to aggression.”
Combining both faces of the phenomenon of denial is the behaviour of the supporters, apologists and promoters of the ‘Bolivarian Revolution’, the late Hugo Chávez and the PSUV regime in Venezuela, and their response to the present state of the country. Humanitarian catastrophe of an apocalyptic scale is now unfolding in the most oil-rich state in the world. The magnitude of human suffering is indescribable. The scenes of bread queues and shortages familiar to Eurozone-crisis Greece are long since surpassed. Venezuela has become a ‘Starvation State’ which “today drowns in a humanitarian crisis”, with lawless cities and hunger for the majority. It extends beyond humans, as the country’s pets are left in skeletal starvation and the zoos of Venezuela become graveyards of wild and endangered animals. […]
The response of the Venezuelan government to a crisis entirely of its own making has been systemic and organised psychological denial of its own, and particularly to externalise blame through conspiracy theories. Fantasies of ‘economic warfare’ waged by ‘hoarders’ led by the United States are played out in government seizures of foodstuffs and crippling price controls. The most disturbing recent development is the prospect of Venezuelans becoming a population of forced labourers in government-run agricultural projects, a solution that would take Venezuela from Zimbabwean levels of hunger and inflationary poverty to Cambodian levels of state-led starvation.
H/T to Natalie Solent for the link.
January 2, 2017
QotD: A key to Hitler’s early success
[Hitler] grasped the falsity of the hedonistic attitude to life. Nearly all western thought since the last war, certainly all “progressive” thought, has assumed tacitly that human beings desire nothing beyond ease, security and avoidance of pain. In such a view of life there is no room, for instance, for patriotism and the military virtues. The Socialist who finds his children playing with soldiers is usually upset, but he is never able to think of a substitute for the tin soldiers; tin pacifists somehow won’t do. Hitler, because in his own joyless mind he feels it with exceptional strength, knows that human beings don’t only want comfort, safety, short working-hours, hygiene, birth-control and, in general, common sense; they also, at least intermittently, want struggle and self-sacrifice, not to mention drums, flags and loyalty-parades. However they may be as economic theories, Fascism and Nazism are psychologically far sounder than any hedonistic conception of life. The same is probably true of Stalin’s militarised version of Socialism. All three of the great dictators have enhanced their power by imposing intolerable burdens on their peoples. Whereas Socialism, and even capitalism in a more grudging way, have said to people “I offer you a good time,” Hitler has said to them “I offer you struggle, danger and death,” and as a result a whole nation flings itself at his feet. Perhaps later on they will get sick of it and change their minds, as at the end of the last war. After a few years of slaughter and starvation “Greatest happiness of the greatest number” is a good slogan, but at this moment “Better an end with horror than a horror without end” is a winner. Now that we are fighting against the man who coined it, we ought not to underrate its emotional appeal.
George Orwell, “Review of Mein Kampf” by Adolf Hitler”, 1940.
December 25, 2016
QotD: Lefties and Randians
Lefties always seem especially afraid of Ayn Rand supporters. I think that’s because — at least until recently — Randians were almost the only people on the right who were both unafraid of lefties and willing to call leftism, even in its comparatively mile FDR form, immoral. Both traits can be very triggering.
Glenn Reynolds, “ACTUAL HEADLINE IN THE WASHINGTON POST: Ayn Rand-acolyte Donald Trump stacks his cabinet with fellow objectivists”, Instapundit, 2016-12-13.
December 12, 2016
QotD: Don’t mess with the market
Please note that this is nothing to do with a debate about capitalism or socialism: they are descriptions of who owns the productive assets in a society. It’s also nothing at all to do with whatever the correct level of taxation, state provision or anything about what redistribution should be in a society. It’s purely a point about how you try to achieve the goals that you’ve set yourself.
It’s entirely possible to alter or ameliorate the outcomes of market process. But the temptation to direct those market processes is where the problems come in. Take Venezuela: as I’ve repeatedly said there’s nothing immoral or necessarily undesirable about increasing the incomes of the poor or of reducing inequality. It’s just that the method that one uses to do this has to be taking money from richer people and then giving it to poorer people. Not, as they have done, attempting to do a whole series of price fixing. This was something that New Labour, under Blair and Brown, largely did get. Allow the economy to hum along and tax it to then pay for the results that you want.
Miliband was arguing the other way. That we should be doing that price fixing, that interference directly into the market, in order to achieve our goals. And that is the Venezuelan mistake.
We do in fact have in front of us an example of what most leftists consider to be a generally desirable outcome: the Nordics. They’re high tax, high redistribution states, oh yes they are. But they’re also, underneath that, markedly more classically liberal than either the UK or the US. That’s what makes the places tick. They don’t have minimum wages for example, let alone price fixing for energy. As Scott Sumner has pointed out Denmark might be the most classically liberal economy on the planet.
The real lesson I think the left needs to learn is that markets work. You can change the outcome through tax and redistribution if you wish: but don’t mess with the workings of the market itself.
Tim Worstall, “Under Miliband Britain Would Have Become Like Venezuela”, Forbes, 2015-05-09.
December 2, 2016
QotD: Socialism
Socialism, like the ancient ideas from which it springs, confuses the distinction between government and society. As a result of this, every time we object to a thing being done by government, the socialists conclude that we object to its being done at all. We disapprove of state education. Then the socialists say that we are opposed to any education. We object to a state religion. Then the socialists say that we want no religion at all. We object to a state-enforced equality. Then they say that we are against equality. And so on, and so on. It is as if the socialists were to accuse us of not wanting persons to eat because we do not want the state to raise grain.
Frédéric Bastiat, The Law, 1850.