A new Hoover poll recently showed that 51% of Democrats favor Socialism over Capitalism. 46% aren’t sure. I wonder if the respondents even have a clue about the difference? Let’s start with Capitalism. It’s defined as ” an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.” Production is based on “supply and demand” and is also known as a “market economy”. Socialism on the other hand is “a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.” Quite a difference!
So what are the largest Socialist countries in the world? China, Denmark, Finland, Netherlands, Canada, Sweden, Norway, Ireland, New Zealand and Belgium. Let’s look at a few of them individually.
China: The government manages and controls the economy. Many of the domestic companies are owned and run by the government. Life is mainly about work and economic issues with an average salary of $7500/year. Most people don’t own a car. The internet is censored and most computers are old. The “news” is mostly propaganda. Because they work VERY long hours there’s not much time for entertainment, music or the arts. Most never travel abroad. As for feelings about the government, most have never been exposed to anything else most of their lives. School, medical care, food and housing are provided about the same to everyone.
Denmark: It has the highest taxes in the world…45%. Equality is considered the most important value. Taxes are put towards an extensive social security network so that every resident is well-provided for at all times of life. Services from education right through to retirement are subsidized. Education is free through university level. Each student is given $900/month subsidy for room and board. New parents can take up to 52 weeks of paid leave when they have a child. Most employees receive 5 weeks/year paid vacation. Healthcare is “universal”, free and accessible to all. 70% of childcare is paid for by the state. At 65 everyone can retire with a government pension of around $785/month.
Finland: According to a Gallup Poll, Finland is the “Happiest Country in the World”! It’s very similar to Denmark. Free education, universal healthcare, almost non-existent crime. They also have the “northern lights” and it’s cold and dark as hell most of the year!!
Netherlands: Actually a Social Democracy….think Bernie Sanders. Social democracy is kind of like a highly regulated capitalism with a strong welfare state. Most of the countries of western Europe are social democracies. The Netherlands has a very high standard of living. Not everything is free. You are required to buy health insurance. You can apply for rent subsidy. There are “child” benefits to cover schooling and daycare.
Canada: Extensive welfare benefits, free public healthcare (also private if you can afford it!), 28% tax rate, the state only controls 35% of the market, lots of private businesses, all education is NOT free. Is Canada really socialist? Not really. Closer to a Social Democracy.
There you have 5 examples of the largest “socialist” countries. China’s population is 1.4 BILLION….very standardized living standard but virtually no chance of “getting ahead”. On the other hand Social Democracy sounds pretty good for the average working Joe! One of the biggest problems is that it destroys that human spirit to advance. There’s not a lot of need for innovation or an entrepreneurial spirit. How about some of the Socialist nightmares? Here are a few.
- Russia: Has a very long history of Socialism going back to the Marxism-Leninism of the U.S.S.R. (United Soviet Socialist Republic). The state was to control the economy, means of production, suppress opposition, promote “collectivism” (giving a group priority over each individual in it). In the 1920’s Joseph Stalin promoted it even further. He created a one-party totalitarian police state, build-up of government run industrial manufacturing and control of agriculture (collectivized). In the late 1930’s Stalin launched a purge of anyone that even vaguely didn’t support the party. Millions were executed and an estimated at 7 million to 15 million were sent to the forced-labor camps that Stalin made an integral part of the Soviet economy. Millions died of starvation and another 20 million were victims of imprisonment, exile, and forced relocation. Ultimately the U.S.S.R. broke up 1991. Today Russia is a democratic republican style of government.
- Venezuela: Closer to home we have Venezuela. In 1999, Hugo Chavez of the MVR (a democratic socialist political party) was elected. He quickly created widespread nationalization of private industry, currency and price controls, and fiscally irresponsible expansion of welfare programs. From 1999 to 2016, his regime robbed more than 600 million acres of land from “rich” landowners for agricultural production. Next Chavez nationalized electricity, water, oil, banks, supermarkets, construction, and other crucial sectors. Nationalization destroyed businesses because the government couldn’t run them successfully. Price controls on everyday items made it impossible to be profitable and businesses failed resulting in shortages of practically everything. Social “missions” aimed at tackling poverty, illiteracy, and healthcare were created resulting in huge financial deficits that the government addressed by literally printing more money and unbelievable inflation….hmmm…sound familiar? Chavez died in 2013. Nicolás Maduro, current president of Venezuela, was previously a bus driver, union leader and unconditional follower of Chávez. The country remains in turmoil. A UN report estimated in March 2019 that 94% of Venezuelans live in poverty and more than ten percent of Venezuelans (3.4 million) have left their country.
So there you have it. A representation of existing and past socialist countries. In an ideal world it would be nice to have the best of both. The safety net and security of financial, educational and healthcare assurances along with the opportunity to attain whatever lifestyle you desire to work toward. No one should lose their home or financial security due to illness. If you are willing to work you should be entitled to a fair wage that enables you to have decent housing, food and support your family. Education should be affordable for those willing to demonstrate an earnest desire to learn. Does that need a label….who knows? As with all things in life I’ve discovered the truth always lies somewhere in the middle.
