Many people declare that the $2Trillion Dollar Coronavirus Bill is the solution to the economic hardships created by the politicians' response to the Coronavirus. I suggest that this bill will devastate our society. I find it ludicrous that the Republicans are screaming to the tops of their voices about the hypocrisy of the left in adding a host of progressive spending programs to the bill - when the real crime, the biggest crime in history is to add $2,000,000,000,000.00 dollars to our money supply. If this is not "special pleading" on the part of the Republicans, it is nothing. If this is not a double standard, nothing is. So, as part of my criticism of "democratic socialism" in this post (taken from a future book on the virtues of capitalism), I am including the complicity of the Republicans since, in fact, they have just instituted the final victory of socialism in our society.
Advocates for socialism suffer under a dichotomy called the “subjective
versus objective” split. They have constructed a set of false ideas whose
purpose is to subvert objective reality. Let’s break it down:
I call it the magic versus reality split for starters. For centuries
mankind has suffered under a particular false proposition in its grammatical expression
of a philosophical principle. The mistake is to tie the actor to the action by means of a weak thread of magical cosmology. By connecting the actor
to the “spiritual”, we assume that thoughts can create reality by magical
means. Then we accept the assumed magical aspects of “the word” or “the thought
of god” and this sets in the mind the idea that mere thoughts can create
magical results. So if one “wants” to help people all one does is invoke a
magical altruism, the idea that wanting to help people means magically helping
them. By using such words as caring, loving, giving; and assigning a magical “air” to them, the assumption is that one is actually helping people. I believe that this “mind
trick” was used explicitly by shamans and other religious characters to
manipulate the minds of their poorly educated followers.
“If you give to God, you go to heaven.” “If you give to others who
do God’s work, you go to heaven.” “God will love you if you sacrifice your mere
worldly goods for the sake of others.” Statements like this have fooled mankind
for centuries, to such an extent that, today, we merely assume subconsciously that some good is actually accomplished without giving them much thought. We just think they are
unquestionable on a subliminal level. This is what enables altruists to assert
their commands without even asking you to think. But, the truth is, there is no
practical component to these sayings. There is no magical incantation
that has this result. Wishing does not make it so. “Giving” is not a magical
word that causes a disconnected (from reality) entity to think well of you. The
act is not magical nor virtuous intrinsically.
The subjective side of the fallacy involves the use of a near-mystical
assertion (from Hegel) that reality is “dialectic” in nature. This view posits
that ideas and history are made up of dualing principles called thesis and
antithesis (its opposite). When these two principles meet, it is thought, a synthesis is
created which resolves the conflict and yields a higher principle that combines the two. For Hegel, the dialetical process leads eventually to
an inexorable shift of history toward a principle that Hegel called the
Absolute. He even thought his understanding was the resolver of this
conflict. This is also an example of the above described “magical” thinking. There is no such cosmological
principle that resolves conflict in the universe or in nature in this way. Men
who accept the analytic-synthetic split are engaging in magical thinking and
having no impact on reality in any way. Such notions are merely the way they
think and there is no assurance that their prophesies or predictions will
resolve in this way.
For Marx, this dualism was based upon economic factors in which
each era was divided between opposing systems of economics. This conflict of economic
classes synthesized the division between capitalism and socialism that would be
resolved through the creation of a new man, the fully self-sacrificial man. This
synthesis, this new man, would do right voluntarily without coercion. The
conflict between the two systems (through the dialectic of class warfare) was thought to eventually lead to the
victory of the perfect state which was utopian society (a magical result).
This materialistic metaphysic was a false alternative. There was
no such dualism and no inexorable synthesis of socialism and capitalism. Yet,
this idea took over the intellectual establishment and brought advocates of
socialism into violent conflict with capitalist elements. When historical
materialism took over in the universities it created a bias against capitalism
that pitted the subjectivism of Marx against objective reality.
Apologists for the left never see the obvious mistake in their
own projection of reality. They don’t realize that they are every bit as
ignorant as the primitive witch doctor who saw a connection between the real world and
acts that “please” god. In fact, anyone living in a socialist/communist country
is a virtual slave to this idea. The left doesn’t see it because they talk themselves
out of the obvious. They never see the slavery they created because they want to
believe that people living in socialist countries are not coerced against their
wills. They don’t want to see themselves as the cause for the suffering of
mankind. They are blind to their own duplicity in the creation of mass
slaughter and the hatred of life and living. They don’t want to see
themselves as the destroyers of value when, in fact, that is what they are –
down to the deepest bone of their beings.
Despite the fact that progressives flout objective reality, they
still expect to see history make that inexorable move toward socialism and it
just won’t happen. In fact, socialism, being an expression of altruism, results
in the expropriation of the values created by productive people. The objective
result is economic depression, poverty and war, not a happy utopia. In short,
socialism is a subjective idea that leads to nihilism and destruction of civil
society. Socialism is based upon a wish that doesn’t make it so.
As we have mentioned, the idea that altruism creates a better world is built upon the idea that there is a principle in reality that creates a good result through sacrifice. Yet, in reality, there is no connection between duty and collective benefit. Non-actors have no intrinsic right to the work of actors and there is nothing to demonstrate that non-action is good by any means. It is essential neutral and can only be met, properly, by direct action on the part of the non-actor. Having all of one's wishes fulfilled by others is a false expectation.
As we have mentioned, the idea that altruism creates a better world is built upon the idea that there is a principle in reality that creates a good result through sacrifice. Yet, in reality, there is no connection between duty and collective benefit. Non-actors have no intrinsic right to the work of actors and there is nothing to demonstrate that non-action is good by any means. It is essential neutral and can only be met, properly, by direct action on the part of the non-actor. Having all of one's wishes fulfilled by others is a false expectation.
Objectively, capitalism leads to prosperity and happiness
because it is a system based upon individual rights, property rights and other
freedoms as expressed in the Bill of Rights. Capitalism liberates action in
reality that accomplishes directly (by the mind directing the hand and the body
to act). It is the mind thinking about the nature of reality that make human thriving possible. Capitalism and prosperity are economic corollaries that
complement each other, making possible the unfettered pursuit of happiness.
Economic warfare of the classes is a false alternative.
Because socialism is based upon a false, near mystical,
historical process that does not actualize itself as promised, the only existential
result of socialism is failure, corruption, theft, genocide and war. The
advocates of socialism, using a faux desire to “do good” (through individual
sacrifice for the sake of the collective), mistakenly lead men into a false
promise of prosperity that will never be realized.
To illustrate why sacrifice and socialism are false ideas, we
can look at one of the most socialist ideas of modern times which is the
Affordable Care Act. This act sought to re-distribute money from those who
purchased health care coverage to people who could not afford it. According to
this scheme, the government forced people to pay for health care features they
did not need in order to create a surplus of money that would pay for insurance
coverage for “the poor”.
The prices for these policies were so high (including the
deductibles required) that the average citizen often chose not to purchase
coverage which caused the program to fail requiring even higher premiums for
the middle class and the affluent. This exposes the truth that re-distribution
always fails because it penalizes the industrious by giving their income to
people who do not earn it.
The framers of the Affordable Care Act assumed that re-distribution of the money of productive citizens would create a magical surplus
of dollars that could be given to the poor to buy the very same health care
insurance at a discount. The average man’s inflated prices were supposed to
magically create values that the poor man would magically receive – and everyone
was supposed to be happy about it.
Why did the ACA fail? Because people can see reality. They can
see when prices are being inflated and they won’t buy. You can’t use
the magic formula of sacrifice against thinking people to make any re-distribution scheme work. Altruism, socialism and
welfare-statism are all false ideas that people begin to see through. They are
eventually recognized as false promises and those who suffer realize they
are being singled out because of their virtue of being productive. People
actually see reality when they analyze a purchase. They know that the good of
others is being provided by their blood and tears.
Another example of the same principle occurred early during the
Obama Presidency when the administration negotiated a bailout of General Motors
and Chrysler. Obama felt that in order to save Chrysler, everyone, including Chrysler
shareholders (pension plans), should sacrifice equally (except for the unions).
He insisted that investments held by elderly investors (saving for retirement)
should be surrendered ahead of other stakeholders despite contractual
arrangements that promised they would be made whole. Obama felt that other
parties should be protected first regardless of the contracts. Again, this was
another form of re-distribution that cost people their life savings. No one was
fooled when Obama declared he was not “with” the pensioners holding Chrysler
stock.
By far, the most massive re-distribution program today is the Coronavirus Rescue Bill that re-distributes $2 trillion dollars back into the economy. The net effect of this bill will be the virtual destruction of investment capital which means that business will have less money available to them for investing in their own businesses, product development and the creation of new businesses. This violates Say's Law which holds that without production there can be no consumption. Giving people lots of money does not give them value. Most people will consume the money rather than invest it and this will stall economic recovery, not ensure it. Despite the fact that re-distribution is unfair to the individual who creates value, it is also unfair to the individual who thinks he is receiving value when he accepts counterfeit currency. It will take decades to bring economic security back with a re-distribution scheme of this magnitude and size. It is, again, the same false solution given to us by the witch doctors of the past, a promise of great advantage in return for sacrificing values.
By far, the most massive re-distribution program today is the Coronavirus Rescue Bill that re-distributes $2 trillion dollars back into the economy. The net effect of this bill will be the virtual destruction of investment capital which means that business will have less money available to them for investing in their own businesses, product development and the creation of new businesses. This violates Say's Law which holds that without production there can be no consumption. Giving people lots of money does not give them value. Most people will consume the money rather than invest it and this will stall economic recovery, not ensure it. Despite the fact that re-distribution is unfair to the individual who creates value, it is also unfair to the individual who thinks he is receiving value when he accepts counterfeit currency. It will take decades to bring economic security back with a re-distribution scheme of this magnitude and size. It is, again, the same false solution given to us by the witch doctors of the past, a promise of great advantage in return for sacrificing values.
The fact that the universities were converted to the advocacy of
socialism also meant they educated students wrongly. They educated students to “believe”
in a magical power called self-sacrifice. They promised that if students were
consistent in demanding sacrifice from their parents, they could “finally”
build the magical society free from want. They have yet to realize that it is their futures being sacrificed. It is they who will have to pay the stolen money back.
The result of socialist education is that the entire society was
educated to vote for failed re-distribution policies. The college professors (witch
doctors) deceived the students into thinking that the unrealizable socialist
dream was a magic formula that would bring prosperity. The students, when they
became leaders of society, likewise, mistakenly advanced what would become
failed re-distributionist policies, and, rather than admit failure and revert
to capitalism, they blamed the failures of socialism on “exploitation” by
capitalists.
The truth is that capitalism, because it liberates the
individual to pursue his self-interest and because it consigns the government
only to the protection of individual rights, is the only economic system that
can succeed in giving man a better life in the real world. Capitalism is the
purest form of society possible, and, it is the most superior economic system
ever devised. This is because it liberates men to produce and it enables them
to keep the results of their work which leads to capital accumulation, the free
flow of capital and constantly improving products and living standards.
Capitalism also leads to peace since it restricts the formation
of totalitarian societies that exploit man. It also creates an incentive toward
trade, contract and the right of association among men, giving them a chance to
live without exploitation by government.
Today, when people call for the establishment of democratic
socialism, what they are calling for is a reversal of progress to the days of
central planning and one man (or one party) rule. It would be a society that
tells men how to live and decides for them how they will conduct trade and other
social transactions. It would violate the rights of men and take upon itself
the authority to rule men against their wills.
Throughout history, advocates of socialism have been saying:
"socialism is a noble idea but the last group of socialists did a bad job
of it. This time, we're going to do it right" - and then they fail too.
The flaw in all the various socialist "isms" is that they all take
from (or kill) productive people. That's what causes these systems to fail. As
we have shown, socialism/communism, etc. are based upon re-distribution which
is a failed idea. I can't believe anyone today would seriously argue that a
system that has failed repeatedly is actually good, now that people know that
socialism is a false promise – it is akin to a magic formula based upon sleight
of hand and mind tricks. It is a lie.
Yet, today’s Democrats and Republicans are proposing numerous
large spending programs that promise more re-distribution, higher taxes for
both middle- and upper-classes and vast growing deficits. We need less
government, not more.
In my booklet about the Business Roundtable, entitled “What’s
Wrong with the Corporation”, I wrote:
“If you doubt that Business Roundtable membership is made up of
dupes for the politicians, consider these words: “those at the very top, the
richest individuals and the richest corporations are going to pay more”
(Warren), “we’re going to stand up to the greed and corruption and price fixing
of the pharmaceutical industries” (Sanders), “hell yes, we’re going to take
your AR-15s, your AK-47s” (O’Rourke), “I have proposed…that we, by 2028, cut
all carbon emissions from new buildings, by 2030, carbon emissions from cars,
and by 2035, all carbon emissions from the manufacture of electricity”
(Warren), “as long as Washington is paying more attention to money than it is
to our future, we can’t make the changes we need to make. We have to attack the
corruption head on” (Warren).”
In declaring that the purpose of a corporation is social justice, the CEOs of America's largest and most successful corporation are no longer concerned about shareholder value but about "stakeholder" value. This might sound leading edge to you but essentially, it represents the same old magic formula that says, "if you sacrifice you'll go to heaven." The leaders of our greatest corporations are nothing more than fools pandering to government in return for a handout. If there is anything that signifies the death of our culture it is the pragmatism inherent in the views of our most highly educated business leaders. If this is what they have become, we are doomed.
In declaring that the purpose of a corporation is social justice, the CEOs of America's largest and most successful corporation are no longer concerned about shareholder value but about "stakeholder" value. This might sound leading edge to you but essentially, it represents the same old magic formula that says, "if you sacrifice you'll go to heaven." The leaders of our greatest corporations are nothing more than fools pandering to government in return for a handout. If there is anything that signifies the death of our culture it is the pragmatism inherent in the views of our most highly educated business leaders. If this is what they have become, we are doomed.
The churches and universities have propagandized for centuries
about the imperative that men should sacrifice for the sake of others. Virtually
every socialist declares that he or she is an advocate of programs that take
from the rich and give to the poor. They declare that they love people, especially
poor people, and all they want to do is make society better. They have said
this for centuries while, time after time, we experience the utter failure of
their policies. If they truly cared for the poor, they would leap to advocate
individual rights, property rights and capitalist freedom.
Socialists seldom acknowledge that taking from the rich is an
act of force. They prefer to argue that the “social contract” declares men should be willing to do what socialism requires. Yet, the act of voting your neighbors
into slavery is also an act of force. It is a violation that destroys the
property of the productive person and destroys the incentive to work, save and
live for the future.
What will it take for a sea change back to capitalism? It can
only take a conviction that individual rights must be protected as it was with
the inception of the American experiment in 1776. Men and women must assert
their rights to be free of coercion by others and refuse to be swayed with
false promises of abundance through theft and re-distribution of income. They
must refuse to be exploited and they must refuse to exploit their fellow men.
The idea of “from each according to his ability to each according to his needs” must
be repudiated and exposed as a false promise.
The idea that each man has an unalienable right to the pursuit
of happiness and property must be shouted from the rooftops with fire and vigour.
When the promise of freedom becomes the highest value in society, that will be
the day when man signals to the world that he has finally taken charge of his
own life and that he is no longer beholden to monsters and murderers.
