There are a number of reasons that socialism will not work. Here’s an example of one of them:
… Social Security’s trust funds will be exhausted in 2037. Those funds have actually been spent over the years on other government programs. They are now represented by government bonds, or IOUs, that will have to be repaid as Social Security draws down its trust fund.
This is from this article about the strain on Social Security.
A few reasons a completely socialist system won’t be as successful as capitalism:
1. As in the example above; the government won’t be able to keep its hands off the accumulated funds. The money I paid in to Social Security during my working life isn’t all there – it’s been ‘borrowed‘ by the government to another account, and replaced with IOU’s. The government may be able to patch this up, later, if it is supported by the capitalistic system that has brought us this far.
2. Socialistic systems are based on redistribution of wealth. This means that at some point the business owner becomes just another worker, making a wage similar to others working for the business. Would you personally be interested in starting a new business, with the headaches, long hours and risk involved, if all you were going to get for it was a common wage?[1] Consequently, few new businesses would be started, and the number of jobs available would stagnate.
ADDENDUM: Another scenario: Let’s say I’m working 45 hours a week, and drawing a reasonable wage. I have a neighbor who hasn’t done a decent day’s work in ten years, yet he (because of socialism) is doing nearly as well as I am. I would be sorely tempted to put my feet up and let the system take care of me, too. When enough people reach this point, the (socialist) system fails.
3. Going Galt: For the same reason as #2, talented people would have no particular reason to excel. No profit equals no motivation. Innovation and excellence would stagnate. There is no personal motivation to succeed in a socialistic state.
4. By the way, all of the above applies to government health care single payor systems, as well.
I strongly suspect that most of that group of people in the United States that want socialism, or think of themselves as socialists, have never lived in a socialist state.
-Popgun
[1] I work for a successful small-business entrepreneur. I see every day how he works, worries, and struggles to be successful. His success is largely based on his own combination of hard work, knowledge, ability and personality. Why does he do this? So he can provide for himself and his family a good living, a beautiful home, and enough money to enjoy life. I don’t live in nearly as nice a home as he does – but I don’t have a problem with that. He deserves every bit of what he earns. He takes on most of the headaches, and I don’t. His sort of entrepreneurship would not exist in a socialistic state.
Posted by popgun
Posted by popgun
Posted by popgun 