Wednesday, March 13, 2019

THE PROBLEM WITH SOCIALISM FROM A GENETIC PERSPECTIVE.


Ambition is an innate human emotional trait. It sometimes elevates to the more toxic level of greed. 

Every emotion is G-d given.  Ambition, like all our feelings and desires, serves a genetic purpose in life's struggle.  We must fight to survive and to provide for our offspring.  We must compete for "our share of the pie."

Ambition operates through our behaviors.  And we operate in a context. That context may be a family unit, an organizational unit or a much larger societal context such as community (e.g. town, state or country).

Now let's superimpose an economic system, such as Capitalism and free markets as the context in which our ambition operates and you'll get outcomes, good and bad.  You'll end up with giant winners, some losers and everything in between - billionaires, millionaires, the middle class and the poor. 

A healthy society will engineer ways of managing and correcting for the excesses and the drawbacks of ambition.  It will "care" for those who can not cope. It will write laws to control for abuses by those who make "bad" choices.

A healthy Capitalistic society will encourage charity and philanthropy by recognizing, incentivizing and honoring it!  A healthy society also has morality woven into it's fabric through it's civic and religious institutions. They provide a crucial safety net for those on the short end of Capitalism.  What's more, a healthy environment for Capitalism encourages the entrepreneurial spirit which  creates new opportunities for success as innovation and competition destroys and replaces existing enterprises. In a Capitalistic society there are many paths for achieving upward mobility. 

But what happens when we superimpose the economic and governmental structure of  Socialism? What happens when government, rather than a free market economy becomes the basis for distributing wealth and opportunities? What happens when government makes the choices?  Does Socialism make things fairer? 

The type of economy and government we have doesn't eliminate greed and ambition, any more than it eliminates hunger or lust. It just effects the ways that greed and ambition manifest and are exhibited. 

Free markets make choices and distribute the wealth in important different ways than a government which makes those choices and distributes wealth. When ambition, and even greed, are put in the context, or a system, of Capitalism versus Socialism you get very different outcomes.

Corruption seeps into both systems!  Both Capitalism and Socialism are vulnerable to corruption. There will always be those attempting to cheat the system.  But it is one thing for that corruption to be external of the government and another for that corruption to be internal to the system.

It is one thing for there to be special interests trying to influence the government and another thing for those in the government to be corrupt.  It is one thing for people driven by greed and ambition trying to manipulate government from the outside. It is another for someone driven by greed and ambition to be inside the government making choices to benefit themselves and their constituents.

Socialism goes wrong for many reasons.  It stifles competition and innovation.  It undermines and takes away individual freedom. Socialism removes incentives to win and encourages mediocrity.  But perhaps the most insidious reason why Socialism is the road to ruin is that is shifts the primary context for greed and ambition from being external of the government to being internal to the government.

Socialism opens the door and invites corruption. Corruption inevitably emerges in Socialist governments because ultimately greed and ambition is in our DNA whether one is a Socialist or Capitalist.  Socialism fancies itself as having a higher moral ground.  It does NOT.  That argument is fallacious.

A well designed and managed system of Capitalism has excellent corrections and controls for greed and ambition - some are inherent and some are by design. There are so called checks and balances, thanks to the brilliant design of our Constitution. Socialism does NOT. That is why Capitalism has lead to the greatest wealth and Socialism has historically always lead to ruin. 

Young people tend to be more ideal and naive. They tend to dream big and have high hopes.  As we get older we tend to become more wise and cynical. We become more realistic.  We are more aware of the risks, and with less time to correct for them we become more risk averse.  You might say older people know better because they've seen more.

Socialism sounds good to those who are young and naive. Unfortunately, young people tend to have a very poor knowledge of history. And for anyone who grew up in America we have NO direct personal experience with living under Socialism.  Many people have a very shallow actual knowledge or understanding of how Socialism works.

Ask anyone who lived in a country that was or became Socialist. Ask someone who came from Cuba or Venezuela or Russia what they think about America going down a Socialist track. Some countries that the young like to point to as success stories have turned away from Socialism because of it's flaws and failings and are moving back toward free markets and Capitalism.

The solution for America is not Socialism, it is to seek to correct for the problems in our Capitalistic system. We have to drive out corruption both internal and external sources. We have to refine the rules of the game.  We also have to be careful that we don't go too far and start to cause malfunctions.  We want to make an even better environment in which greed and ambition operate in positive and constructive ways.

Socialism will never eliminate greed and ambition. It will just lead to a corrupt government where the government becomes wealthy.  

The beauty of Capitalism, and the reason it has created more wealth, opportunity and a higher standard of living than any other form of government in the history of civilization is that it created a context for greed and ambition which leads to benefits for all of society. 

One uncomfortable aspect that comes with Capitalism is that some people will get much wealthier than the rest of us.  That is why we have to control one other G-d given desire - jealousy.  Jealousy leads to coveting and stealing.  

In case you haven't noticed, there are Commandments against "coveting" and "stealing."  And in case you hadn't noticed, there is NO Commandment against becoming incredibly wealthy.  Stealing includes taking away wealth and property regardless of who does the taking.  

There is a story, often told, that upon exiting the Constitutional Convention Benjamin Franklin was approached by a group of citizens asking what sort of government the delegates had created. His answer was: "A republic, if you can keep it."

When Americans go to the polls in 2020 the biggest decision we need to make is not a Democrat or Republican choice.  It is whether we choose of a candidate who will promote Capitalism or Socialism.