Book Review: The Problem with Socialism

The book begins by citing a 2015 study showing that “43% of Americans between the ages of 18 and 29 had a ‘favorable’ opinion of socialism and that they have a higher opinion of socialism than they do of capitalism.1 It immediately cites another study in 2016 that “found that 69% of voters under the age of thirty expressed a ‘willingness to vote for a socialist president of the United States.’”2

Economics professor Thomas DiLorenzo saw this as a challenge.

In his beautifully short and information-packed book, The Problem with Socialism, DiLorenzo strikes at the heart of the major elements and issues with socialism. As he aptly states in his introduction, “In order to have a ‘favorable’ view of socialism one must have either forgotten what the entire world learned about socialism from the late nineteenth century on, or have never learned anything about it in the first place.”3

He is correct.

And he knows how to cater it to millennials, many of whom seem to be trending in a Bernie Sanders direction. Well, okay, let’s be honest. The best way to do that might be flashy short video clips. But for a book, DiLorenzo keeps his chapters snappy and thorough; most can be read in 20 minutes or less. I read virtually the entire book in a weekend—quite a feat for a slow reader with a toddler, newborn and two jobs.

What does DiLorenzo cover? Everything from the fundamental economic problems of socialism to how forced egalitarianism conflicts with human nature, to how Scandinavian socialism isn’t what it’s made out to be, to the problems of minimum wage, welfare, state-sponsored education and more. As he writes, this book is meant to be a “primer on socialism (and capitalism) for some; a historical reminder for others; and a handy sourcebook on all the problems of socialism and how it threatens a free society.”4 And he does it all in an easy-to-read way, without the total-silence-needed-for-concentration burden of heavy economic analysis. This book is written for the layperson.

For anyone looking for this sort of easy, quick but comprehensive examination of all the major issues of socialism, I cannot more highly recommend this book. I agree with Thomas Woods, and others who contend that every high school student ought to read this book before heading off to college, but even for those of us beyond that point and immersed in busy lives, DiLorenzo helps us avoid the ignorance that seems to be increasing around us on the topic of socialism. The fact of the matter is, this isn’t just something that you can just take or leave. The more these realities are forgotten by voters and their elected officials, the more it truly will affect our lives. Treat yourself to an excellent source of understanding.

And for my fellow nerds, enjoy a lecture given by Professor DiLorenzo based on this book:


1 DiLorenzo, Thomas, The Problem with Socialism, page 1.

2 Ibid, 2.

3 Ibid, 4.

4 Ibid, 12

 

The Reality of Collectivism

In his recent book, The Problem With Socialism, author and professor Thomas DiLorenzo directs the reader’s attention to “Rabbi Daniel Lapin, a clergyman who is also an economic writer and speaker,” who “points out that anything made by God, whether it be humans or stones (which can range from small pebbles to glittering diamonds of infinite variety) is unique; while things made by man, like bricks, can be made uniform” (page 32).

I’ll address that quote again at the end.

A few posts ago, I discussed the issue of individualism (“Individualism: Good or Bad?”). In that post, I defined individualism as the idea that each person is responsible for their own actions and the consequences of those actions.

That reality is premised on the truth that only individuals can act. Only individuals can think. Only individuals can make decisions.

Groups—or collectives— cannot act, think or make decisions. Basic logic lends itself to this understanding. (“But Lukas, what about group-think, or mob-mentality?” I’ll address that at the end of this post.)

Sometimes for convenience, sometimes with political or social agenda, we are prone to use broad sweeping terms that suggest that a collective acts. As a social studies teacher, it’s much easier to say, “the United States went to war with Japan.” Clearly, this is a misnomer. The United States is not an entity that can act. What we really mean by saying something like that is that individuals in the United States made certain decisions that resulted in the American soldiers going to war with Japanese soldiers.

Merriam-Webster offers this definition of collectivism: “emphasis on collective rather than individual action or identity.”

By no means a recent phenomenon, there are powerful societal and political movements that seek to act on behalf of some group or some collective, whether it is women, the poor, blacks, immigrants, et cetera. We call this identity politics, and it is predicated on the idea of collectivism.

Collectivism, by suggesting that groups can think, act and make decisions, readily places the group above the individual. In social terms, this means that we are happy pursuing a “collectivist” agenda at the expense of any particular individual. In economic terms, this premises the pursuit of egalitarianism, the pursuit of material equality in a society. Ayn Rand put it this way: “Collectivism means the subjugation of the individual to a group–whether to a race, class or state does not matter.”

Let me leave you with a few key points:

First, collectivism, insofar as it suggests that groups can act, think and make decisions, is a self-inherent falsehood. This is a logical fallacy. Only individuals act, think and make decisions.

And this is not to entirely abandon the idea that a sort of “mob-mentality” can have a powerful effect on members within a group. History provides an abundance of examples. Take Nazi Germany. Or the Rwandan genocide. Place large groups of individuals with lots of anger and/or passion, and those individuals in that group can begin to behave in ways that they might not otherwise have if left alone. But still, the principle of individualism is not lost because of the powerful influence of what individuals in a large group can have on each other. Human nature is quite prone to atrocities committed as groups. Still, the individual cannot submit as his scapegoat, “I am not responsible for the murder I committed because we were all caught up in the passion to kill.” A court of true justice will never let this person off the hook.

On that same note, the fallacy of collectivism means that groups are not victims of other groups. This one will not particularly sit well with some readers, but it is the logical extension of the principle of individualism and that only individuals act. I am not, by collectivist default, any more guilty of racism because I am white than my wife is the victim of sexism because she’s a woman. Likewise, it is not incumbent upon some “groups” to repay some wrong to some other “group” committed by people of their same “group” in the past. Individuals can be victims of other individuals, because only individuals act, but groups cannot be victims of groups. (And when this is the case, the guilty individuals should, obviously, be held accountable.)

Second, collectivist thinking lends itself, logically and bolstered by historic reality, to great danger. The rhetoric was common in Stalin’s Soviet Union: a few eggs are always broken in the process of making an omelet. The pursuit of some “group-agenda,” such as the biological purification pursued by the Nazis, has had incredible consequences on hundreds of thousands of individuals. Indeed, socialism itself is predicated on some form of collectivist ideology (we must violate individual rights of some for the betterment of all society), and socialist regimes killed more than 100 million people in the 20th Century*. We can track this back even further, to such turbulent and violent events as the French Revolution.

On a more benign level, even collectivist political, social and domestic agendas can end up hurting those they intend to benefit because the individual is forgotten for the group. As I will lay out in blogs to come, many policies meant to help some “group,” such as women or minorities, have negative consequences on individuals in those and other groups.

Additionally, collectivist victim hood can (and often does) lead to the violation of individuals’ rights as one “group” seeks out revenge or compensation from some other “group,” regardless of whether or not individuals being held to blame had any part in real or alleged abuses. An example of this is the demand that the wealthy (the collective), because they must inherently be greedy, therefore are required to account for their alleged “greed” through higher taxes, et cetera. Another purely hypothetical example would be if modern-day Irish-Americans demanded that white Americans pay recompense for the ill-treatment of the 19th Century Irish immigrants. (And please keep in mind that my principles hold in reverse: collectivist thinking was just as damaging to the Irish immigrants of the early 1800s, or to the Africans of the early American slave trade. These examples only bolster my point.)

Third and finally, I will refer back to the quote at the beginning. All that which is made by God is unique. Individuals are unique. Individuals have varying backgrounds, personalities, talents, abilities, et cetera. The collectivist, to some extent or another, abandons this truth in their thinking and either treats all in a group as identified first by their group identity, or pursues some egalitarian end in an attempt to make all the individuals in a group as “bricks.”

Rather, this blog’s author would passionately advocate that we recognize that only the individual acts, thinks and makes decisions. And we ought to couple this with the understanding that each individual is unique. I do not care to distinguish a person based on some collectivist identity first and foremost, but rather much prefer to see each individual as an individual, unique to every other. To treat the individual as primarily “one in a more important collective” is a gross dishonor. All men and women should be treated as unique individuals with dignity, respect and honor.

*DiLorenzo, Thomas. The Problem With Socialism. Copyright 2016. 

What is Fascism?

Many people claim—most often with despair—that we’ve elected a fascist president to the American White House. And a worse offense could not be fathomed by many who thought the time had finally come for a woman president.

Now, I’m not a Trump supporter or a Trump opponent. Though it may seem like a paradox, I take a broader and a more specific view. If you want more thoughts on that, sign up for my email! So, having said that, I don’t have any agenda in this post with encouraging readers to any extent of support or disdain. As with many of my posts, my purpose here is to bring clarity, not to utilize hyperbole to influence opinion. I believe that good opinion must be well-informed.

So, the accusations have been sounded: Trump is a fascist! And yet, I would guess that many who throw this term around do so with a tragic level of ignorance about the genuine meaning of the ideas involved with and behind fascism.

And to be clear (does that sound a bit too Obama-ish?), fascism isn’t a clear-cut set of ideas. Although Germany and Italy both followed fascist ideologies, there were certainly differences. Still, a generally good idea of the commonalities of various fascist regimes can be accurately identified.

So what is fascism? A bit of history helps, as usual.

Benito Mussolini

Fascism as a formal ideology with a political platform was founded by Benito Mussolini in Italy. During World War I, Italy had joined the fight on the side of the Allies in time to benefit, they hoped, from the peace terms. Yet, many in Italy were unsatisfied with the terms that finally emerged from Paris in 1919. Additionally, war debt and economic stagnation plagued the country, like most countries in Europe, and the popularity of socialism and its extreme version of Marxist-communism saw a huge leap in popularity.

Keep in mind that many socialists were actually opposed to communism, a point I’ll clear up in coming posts. But for now, it is suffice to say that a general desire for social and economic control by the government had become increasingly popular since the early 1800s, and the desire to implement this control by revolutionary means and authoritarian regimes saw a surge in the wake of World War I.

A quick point of distinction. Marxist ideas (ie, communism) place the worker as the center and central unit of society. Ultimately, Marxism advocates for the dissolution of political boundaries in favor of a united working class and the elimination of private property in favor of commonly-shared means of production and eventual social, economic and political equality. That this can never actually be realized notwithstanding, it was reaction to this idea that spurred the creation of the Fascist Party.

In Italy, the Fascist Party was started as a distinctly anti-Bolshevik (many communist parties took the name of their Russian counterpart) party. At its heart wasn’t the plight of the working class, but rather the pursuit of national glory. In direct rejection of the dissolution of political boundaries, its adherents sought to glorify the nation-state, epitomized by the government of that nation-state. And more specifically, the glorification of the nation-state being the foundation for political morality and the highest of ends, violence in pursuit of power and glory was not only condoned; it was celebrated. You might call fascism fiercely aggressive nationalism. Fascists and Bolsheviks broke out in fire fights across Italy prior to Mussolini’s rise to power in 1921, and when he was in power, Mussolini had no qualms about banning all other political parties and ensuring the “disappearance” of any potential political rivals. We see similar trends in Germany with the rise of the Nazi Party and their first attempt at sparking revolution in Germany in 1923 (which failed). Clearly, later actions by the Nazis in Germany followed the fascist praise of violence with precision.

On the economic front, fascism is profoundly socialist and admittedly anti-capitalist. (I discuss related terms and ideas here.) Mussolini and fascists in other countries, like the Nazis in Germany, ultimately sought to control and oversee the economy with strict regulation and direct take-over of major industries, setting up government-protected and directed monopolies. Bear in mind that this was the common trend of western society (and had been for a decades) and it was Mussolini’s economic policies that Franklin Roosevelt in the United States admired and sought to emulate (without the direct violence).

Romanesque Fasces

One more point of interest. In pursuit of the glorification of the Italian nation-state (created as a merging of multiple distinct regions in the 1860s), Mussolini adopted the Roman symbol: fasces. Obviously, this is where the name comes from. It is a symbol of national unity, strength, glory and power. The ax included epitomizes its praise of aggression. The fasces, in line with other Romanesque cultural elements adopted by the U.S. government, can be found in our capital, but often without the ax.

Knowing what fascism is and where it comes from helps to debunk the idea that fascism is merely passionate nationalism*. It is its celebration of violence to achieve its ends that distinguishes fascism. And despite and cultural conservatism it brings with it (such as celebrating the cultural traditions of the nation), it is also distinctly anti-capitalist and authoritarian.

If you’re up for a more extensive reading on Fascism, here is a link to a very thorough article over at Mises.org. At that post, author John T. Flynn presents comprehensive research and come to the following list of the components of fascism as implemented through policy. As the author says, fascism “is a form of social organization…

  1. In which the government acknowledges no restraint upon its powers — totalitarianism
  2. In which this unrestrained government is managed by a dictator — the leadership principle
  3. In which the government is organized to operate the capitalist system and enable it to function — under an immense bureaucracy
  4. In which the economic society is organized on the syndicalist model, that is by producing groups formed into craft and professional categories under supervision of the state
  5. In which the government and the syndicalist organizations operate the capitalist society on the planned, autarchical principle
  6. In which the government holds itself responsible to provide the nation with adequate purchasing power by public spending and borrowing
  7. In which militarism is used as a conscious mechanism of government spending, and
  8. In which imperialism is included as a policy inevitably flowing from militarism as well as other elements of fascism.”

(Source: https://mises.org/library/what-fascism)

(A note on coming posts: Back in my post, “The Issue of Standards”, I discussed the ambiguity of the typical left-right paradigm. The terms conservative and liberal carry a complex, confusing and dynamic—changing—history. As I am able, this will be the focus of coming posts. Sign up for my email to know when each one is posted!)

*I’ll have a post in the future expanding on what nationalism is; history always presents a much more complex and interesting picture than the media narrative.