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Old 08-24-2005, 03:29 AM   #1 (permalink)
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Which system really is best?

Capitalism or communism?

I know we've all been patting ourselves on the back the last 15 years or so with the fall of the USSR and the increasing free market system in China, but didn't communism achieve a great deal in some ways?

You know, when Lenin (and more importantly Stalin) took over Russia, it was literally a nation of peasants. That whole "industrial revolution" thing bypassed 95% of the nation. Yet in 25-30 years, the Soviet Union became one of the 2 most powerful nations on earth, whipped Hitler, and became technologically advanced.

China has made similar strides and is now probably the #2 nation on earth in terms of power.

I am not advocating living in a communist system nor denying the attrocities committed by Stalin or Mao or others, but could a capitalist system have lifted these 2 nations so quickly to the heights of power they achieved?
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Old 08-24-2005, 04:37 AM   #2 (permalink)
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I know too little on the subject, but I'd like to pre-empt any anti-communist or anti-capitalist sentiment by stating that what we've seen in the past has rarely been either of these two systems. I believe that what we live in is a kind of hyper-capitalism, which has all sorts of bad results which I won't go into unless anyone needs me to. This hyper-capitalism is far removed from the ideals of... I think, in a nutshell, it's John Adams who came up with capitalism.

As far as communism is concerned, we haven't really seen that either, except in Cuba, but it's hardly been able to flourish there. Stalin's era was certainly not communism anything like what Marx had in mind.

Perhaps what your question really is, is whether more "progress" can be acheived with a dictatorship than without one. I see the essence of the question being posed, but I feel it's too broad. It also calls into question what our idea of progress is.
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Old 08-24-2005, 04:50 AM   #3 (permalink)
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Communism is a much better system than capitalism. . On paper. Trouble is it fails to take into account human nature. And the guys that are in charge are going to want to be more equal than the rest of the country. That's where corruption sets in, money starts flowing upward, leaving the peasants with very little.

It's also important to remember that communism is NOT a system of government, but of economics. It's often confused.
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Old 08-24-2005, 05:02 AM   #4 (permalink)
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I guess what I'm asking is whether a free market and democratic system could have lifted a people who were nothing but peasant dirt farmers up so quickly?

Or did it require the firm hand of Stalinist/Maoist types and a communal economic and social system to succeed so quickly?

And therefore, might there be a legitimate place in the world for such governments (less the torture/gulag/kgb elements, preferably.
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Old 08-24-2005, 05:19 AM   #5 (permalink)
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I think it might be important to figure out where America really stands before everyone associates them as being a capitalist system. After reading the Communist Manifesto and specifically the 10 planks of it, I believe the US is closer to communism than it is to capitalism. Here's a website that explains it better than I can.

The 10 Planks
Quote:
ARE Americans practicing Communism?
Read the 10 Planks of The Communist Manifesto to discover the truth and learn how to know your enemy...

Karl Marx describes in his communist manifesto, the ten steps necessary to destroy a free enterprise system and replace it with a system of omnipotent government power, so as to effect a communist socialist state. Those ten steps are known as the Ten Planks of The Communist Manifesto… The following brief presents the original ten planks within the Communist Manifesto written by Karl Marx in 1848, along with the American adopted counterpart for each of the planks. From comparison it's clear MOST Americans have by myths, fraud and deception under the color of law by their own politicians in both the Republican and Democratic and parties, been transformed into Communists.

Another thing to remember, Karl Marx in creating the Communist Manifesto designed these planks AS A TEST to determine whether a society has become communist or not. If they are all in effect and in force, then the people ARE practicing communists.

Communism, by any other name is still communism, and is VERY VERY destructive to the individual and to the society!!

The 10 PLANKS stated in the Communist Manifesto and some of their American counterparts are...

1. Abolition of private property and the application of all rents of land to public purposes.
Americans do these with actions such as the 14th Amendment of the U.S. Constitution (1868), and various zoning, school & property taxes. Also the Bureau of Land Management (Zoning laws are the first step to government property ownership)

2. A heavy progressive or graduated income tax.
Americans know this as misapplication of the 16th Amendment of the U.S. Constitution, 1913, The Social Security Act of 1936.; Joint House Resolution 192 of 1933; and various State "income" taxes. We call it "paying your fair share".

3. Abolition of all rights of inheritance.
Americans call it Federal & State estate Tax (1916); or reformed Probate Laws, and limited inheritance via arbitrary inheritance tax statutes.

4. Confiscation of the property of all emigrants and rebels.
Americans call it government seizures, tax liens, Public "law" 99-570 (1986); Executive order 11490, sections 1205, 2002 which gives private land to the Department of Urban Development; the imprisonment of "terrorists" and those who speak out or write against the "government" (1997 Crime/Terrorist Bill); or the IRS confiscation of property without due process. Asset forfeiture laws are used by DEA, IRS, ATF etc...).

5. Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly.
Americans call it the Federal Reserve which is a privately-owned credit/debt system allowed by the Federal Reserve act of 1913. All local banks are members of the Fed system, and are regulated by the Federal Deposit Insurance Corporation (FDIC) another privately-owned corporation. The Federal Reserve Banks issue Fiat Paper Money and practice economically destructive fractional reserve banking.

6. Centralization of the means of communications and transportation in the hands of the State.
Americans call it the Federal Communications Commission (FCC) and Department of Transportation (DOT) mandated through the ICC act of 1887, the Commissions Act of 1934, The Interstate Commerce Commission established in 1938, The Federal Aviation Administration, Federal Communications Commission, and Executive orders 11490, 10999, as well as State mandated driver's licenses and Department of Transportation regulations.

7. Extension of factories and instruments of production owned by the state, the bringing into cultivation of waste lands, and the improvement of the soil generally in accordance with a common plan.
Americans call it corporate capacity, The Desert Entry Act and The Department of Agriculture… Thus read "controlled or subsidized" rather than "owned"… This is easily seen in these as well as the Department of Commerce and Labor, Department of Interior, the Environmental Protection Agency, Bureau of Land Management, Bureau of Reclamation, Bureau of Mines, National Park Service, and the IRS control of business through corporate regulations.

8. Equal liability of all to labor. Establishment of industrial armies, especially for agriculture.
Americans call it Minimum Wage and slave labor like dealing with our Most Favored Nation trade partner; i.e. Communist China. We see it in practice via the Social Security Administration and The Department of Labor. The National debt and inflation caused by the communal bank has caused the need for a two "income" family. Woman in the workplace since the 1920's, the 19th amendment of the U.S. Constitution, the Civil Rights Act of 1964, assorted Socialist Unions, affirmative action, the Federal Public Works Program and of course Executive order 11000.

9. Combination of agriculture with manufacturing industries, gradual abolition of the distinction between town and country, by a more equitable distribution of population over the country.
Americans call it the Planning Reorganization act of 1949 , zoning (Title 17 1910-1990) and Super Corporate Farms, as well as Executive orders 11647, 11731 (ten regions) and Public "law" 89-136. These provide for forced relocations and forced sterilization programs, like in China.

10. Free education for all children in public schools. Abolition of children's factory labor in its present form. Combination of education with industrial production.
Americans are being taxed to support what we call 'public' schools, but are actually "government force-tax-funded schools " Even private schools are government regulated. The purpose is to train the young to work for the communal debt system. We also call it the Department of Education, the NEA and Outcome Based "Education" . These are used so that all children can be indoctrinated and inculcated with the government propaganda, like "majority rules", and "pay your fair share". WHERE are the words "fair share" in the Constitution, Bill of Rights or the Internal Revenue Code (Title 26)?? NO WHERE is "fair share" even suggested !! The philosophical concept of "fair share" comes from the Communist maxim, "From each according to their ability, to each according to their need! This concept is pure socialism. ... America was made the greatest society by its private initiative WORK ETHIC ... Teaching ourselves and others how to "fish" to be self sufficient and produce plenty of EXTRA commodities to if so desired could be shared with others who might be "needy"... Americans have always voluntarily been the MOST generous and charitable society on the planet.

Do changing words, change the end result? ... By using different words, is it all of a sudden OK to ignore or violate the provisions or intent of the Constitution of the united States of America?????

The people (politicians) who believe in the SOCIALISTIC and COMMUNISTIC concepts, especially those who pass more and more laws implementing these slavery ideas, are traitors to their oath of office and to the Constitution of the united States of America... KNOW YOUR ENEMY ...Remove the enemy from within and from among us.

VOTE LIBERTARIAN, the only political party in America that still firmly supports and diligently abides by the Constitution of the united States of America.
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Old 08-24-2005, 05:25 AM   #6 (permalink)
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Quote:
Originally Posted by samcol
I think it might be important to figure out where America really stands before everyone associates them as being a capitalist system. After reading the Communist Manifesto and specifically the 10 planks of it, I believe the US is closer to communism than it is to capitalism. Here's a website that explains it better than I can.

The 10 Planks

That's a load of hooey. That site is taking the 10 steps, which say "remove ALL property rights or remove ALL inheretance rights" and then saying we do it because SOME property belongs to the government and because the government takes SOME of the inheritance in the form of taxes, etc etc.

If the site author can't comprehend the difference between ALL and SOME, he needs to go back to watching Sesame Street and get the basics down before he starts writing political opinion pieces.
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Old 08-24-2005, 07:57 AM   #7 (permalink)
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Capitalism/Free Trade is the best system of government for large and interconnected groups of people, although al-Qaeda and other xenophobic groups are doing their best to create even more closed, isolated and poverty-stricken societies. No middle class - no progress.

"Communism - Keeping More People Miserable & Dirt Poor since 1917."
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Old 08-24-2005, 08:03 AM   #8 (permalink)
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I think the best system takes what is good from both systems an utilzes them simultaneously.

I look at nations like Sweden, Canada, Finland for examples of this to greater and lesser degrees.

Capitalism can be a force for good but left unchecked it can run roughshod over people and the environment (in other words, like Communism it is a sytem that looks good on paper but doesn't take into account human nature).



The key is to find the sweet spot between the two.
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Old 08-24-2005, 08:21 AM   #9 (permalink)
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I think most people here would agree that our system is best. Economic opportunity, education, freedom of speech. I understand that I'm lumping together our economic system and political system.

I think communism made the USSR powerful at the expense of its people. This is not sustainable in the long-term, as they discovered.

Our system is not without its problems, though. It depends upon some people being relatively poor and relatively powerless. Communism also depended upon that. I think recent economic trends indicate our poor and middle class are becoming poorer, and our rich, richer. The middle seems to be getting squeezed.

I am not an economist, so I don't know if this is simply cyclical, or if this is a long-term trend that will continue and get worse with time. If it is a long-term trend, it is certainly a flaw in our system, or, at least, it is a flaw in the way we practice our system. If it continues indefinitely, in time, we will discover our system won't really be sustainable, either.

Last edited by vautrain; 08-24-2005 at 09:50 AM..
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Old 08-24-2005, 08:27 AM   #10 (permalink)
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This is a case of apples and oranges. In their "pure" forms they have very little in common other than considerations of economics.

Capitalism is neither a political nor a social theory, merely an economic one. It espouses and supports no particular form of government. Equally, there are no moral or social elements to it. Capitialism suggests that the best government would be minimalist, in that the fewer restrictions placed on manufacture and trade would produce the most abundant supply of goods, and therefore a healthier (in terms of economics only) nation. Capitialism, however, does not espouse patriotism at all; if Adam Smith were followed to the letter, manufacturers would be insane to maintain any loyalty to a specific community unless there is clear, stark economic benefit to this decision. If an item can be produced at a more competitive price with equal quality in another locale, it is incumbent upon the manufacturer to move his holdings. Pure Capitalism does not advocte anything other than getting the best price for your goods. It says nothing at all about democracy, taking care of your fellow man, playing fair, protecting the environment, supporting the government, or anything else. It is strictly a non-moralistic economic model. It should not be construed as anything else.

Communism, conversely, has elements of economics, politics, and moral structure all bound together. Prices are, of couse, of little consequence under Communism as the ultimate goal is to have a classless and moneyless society, "From each according to their abilities to each according to their needs". Eventually any vestige of government would fall away and everyone would work for the betterment of their fellow human beings. While pure Communism does speak to economics, it also speaks to how one's fellow humans should be treated, how government can best serve the common weal, why private ownership of property is evil, and even discusses the ultimate perfectability of humankind. In this regard, Communism is a more total view of society in all its forms. As such it is preferable to a simple economic model.

Neither system has been tried in its pure form and we should thank our lucky stars that this is true.

However this question could be construed to mean "Communist-Socialism as practiced in the Soviet Union" versus "Republicanism as practiced in the United States of America". In this case we are comparing to hodge-podge political-social-economic-moral systems that are the duece to untangle. Both systems were created by compromise, power grabs, enlightened and unenlightened self-interest, needs of the day, and a smidgen of foresight. If these two systems are compared, one may say that the United States came out the better simply because it can still claim to be here, while the Soviet Union, for all intents and purposes, is not.

So, again, it all depends on what you mean by the question you pose.
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Old 08-24-2005, 08:46 AM   #11 (permalink)
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Quote:
Originally Posted by highthief
Capitalism or communism?

I know we've all been patting ourselves on the back the last 15 years or so with the fall of the USSR and the increasing free market system in China, but didn't communism achieve a great deal in some ways?

You know, when Lenin (and more importantly Stalin) took over Russia, it was literally a nation of peasants. That whole "industrial revolution" thing bypassed 95% of the nation. Yet in 25-30 years, the Soviet Union became one of the 2 most powerful nations on earth, whipped Hitler, and became technologically advanced.

China has made similar strides and is now probably the #2 nation on earth in terms of power.

I am not advocating living in a communist system nor denying the attrocities committed by Stalin or Mao or others, but could a capitalist system have lifted these 2 nations so quickly to the heights of power they achieved?
The fundamental problem with communism from an economic perspective is that it is not possible to have a centrally-planned economy in this day and age because of the unbelievable complexity of a nation-wide economy. The Soviet Union's economy had become so unmanagable and inefficient by the 1980's that the whole edifice came crashing down. If you suppress market forces too vigorously, very bad things start to happy, as we have seen in communist countries around the world.
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Old 08-24-2005, 09:37 AM   #12 (permalink)
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Quote:
Originally Posted by Charlatan
I think the best system takes what is good from both systems an utilzes them simultaneously.

I look at nations like Sweden, Canada, Finland for examples of this to greater and lesser degrees.

Capitalism can be a force for good but left unchecked it can run roughshod over people and the environment (in other words, like Communism it is a sytem that looks good on paper but doesn't take into account human nature).



The key is to find the sweet spot between the two.
Couldn't agree more.

When we practiced true Capitalism (what the neo-cons want today) in the late 1880's and up until the depression, our country was very rich or very poor.

It wasn't until we started labor boards, unions, laws that protected the worker that the US truly grew. By the 1950's through the early 70's capital was as equally distributed as it could possibly be in a socio-capitalistic society.

The government spent more on defense but the contractors (US Companies only) would take the money and put it into the labor market, research and development and profit. Education was also greatly funded and we were the envy of the world financially and socially.

We left things like transistor radios and small "inconsequential" items to the Japanese and other countries to develop. We were producing the steel, cars, appliances, and so on.... that for our companies didn't show enough profit to warrant a labor market.

However, as had happened in the early days, the unions had gotten too powerful and the companies instead of R&D had to put that money into labor, due to exorbitant wages.

This created a vacuum that allowed other countries not as bogged down to really come in. By the late 70's inflation and unemployment were high, and people started going to foreign durables because they were cheaper. They were made cheaper also and didn't last as long but the consumer looked at short term.

By the 80's the nation was highly educated, (reaching a height in white collar jobs), we looked to be on the road to recovery, the unions had been weakened not severely but enough for companies to start showing profit.

However, what we hadn't counted on was the countries that had come in and taken advantage of the pricing wars were now producing the durables that we had, and they were still doing it at a cheaper level.

During the 80's we saw the shift, and our trade deficits reached new heights almost every year.

Now our companies were losing money, the labor market had over-priced itself here and so the companies started moving offshore in order to save themselves.

The government really started cutting into unions and labor and tried to keep jobs here.

In doing so they all but weakened the unions to nothing, gave to many rights back to management and believed this would help. This allowed temp services to become the BIG labor market and thus wages dropped.

We also started complaining about our federal deficit and the fact a hammer may cost $1,000. So government contracts started being low-bid and given to anyone whether US or foreign.... (that was our true big killer and still is.)

Had it not been for the WWW. boom in the 90's, we would have been crushed. That bubble and anomoly saved us.

That brings us to today.

Today we are seeing a bit of resurgence, and had oil not gone up the way it has, we may well have been on the road to somewhat of a recovery. But the problem is, management is capitalizing on the weak labor and being as greedy themselves as the unions once were.

What the middle ground is, is making sure the laborers make enough to live on and buy product and management to make enough to be able to develop better ideas.

The neo-cons don't see this, they want management to be heavily favored and if that does happen, we will most definately fall. That's why neo-conservativism is dying fast.

The only way to bring us back to the force we were and to not continue our downward spiral, is to bring back US only contracts, and maintain the middle ground.

We can do it, it just takes true leaders who won't give the advantage to one side over the other. Which, in today's political atmosphere is almost impossible, but has to be done.
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Old 08-24-2005, 08:20 PM   #13 (permalink)
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Quote:
Originally Posted by highthief
Capitalism or communism?

I know we've all been patting ourselves on the back the last 15 years or so with the fall of the USSR and the increasing free market system in China, but didn't communism achieve a great deal in some ways?

You know, when Lenin (and more importantly Stalin) took over Russia, it was literally a nation of peasants. That whole "industrial revolution" thing bypassed 95% of the nation. Yet in 25-30 years, the Soviet Union became one of the 2 most powerful nations on earth, whipped Hitler, and became technologically advanced.

China has made similar strides and is now probably the #2 nation on earth in terms of power.

I am not advocating living in a communist system nor denying the attrocities committed by Stalin or Mao or others, but could a capitalist system have lifted these 2 nations so quickly to the heights of power they achieved?

Russia (and afterwards the USSR) was modernized by one group of people's desire to attempt to emulate the industrial advances of more traditionally western nations. The form of communism practiced by Lenin (and especially Stalin) had little to do with "true" communism and was pretty much a dictatorship with a socialist economic structure (where the upper levels of gov't also decided production). Russia most likely would have gotten more results had they not attempted communism, as market forces would have had more agricultural production (which would have stopped at least some of the mass starvation, and increased the workforce). But Lenin and Stalin's singlemindedness toward industrialization make that an impossibility-had they the same determination and better understanding of economics (or in Stalin's case, more care for human life) they would have been better off.

As for China, their growth can be directly attributed to their adoption of capitalist principles. When Mao took power, he focused more on agricultural development, which left much of China in crippling poverty and also held them back from developing. Their rapid rise is due to Mao's diminishing influence, and their willingness to use many capitalist principles in their development, while keeping gov't control of the majority of economic deciding factors and production capability. China's current power in reality could be seen as one of the greatest proofs of capitalism's power as an economic system. Adhering to communist tenets (that were somewhat misinterpreted) largely hindered China's emergence as a credible world power. I personally think that on a large scale, a truly communist nation would have to be both extremely isolationist and have the resources inherent in the countries borders to be self-sufficient, as I don't see really how a true communist nation could have any but political dealings with any outside nation without creating some heavy imbalance in their economy. If the US could better enforce the borders, I think they have both the clout to remain fairly isolationist and have the necessary internal resources to pull off communism. But that would never happen, simply because there would never be the consensus necessary for communism to function.

Now, if instead you change communism (which is something that deals primarily with economics) with totalitarianism/authoritarianism (which can both be used to describe the gov't structures of the USSR and China) you have an argument that I think is largely true-namely that in many situations totalitarianism/authoritarianism is better than more democratic forms of government.

edit-I read the OP's further remarks and redefining question, and I think that it would be very possible that a centralist/totalitarian gov't could function better than a more democratic one (as I said above). However, with that will inherently come the gulags/kgb/torture/etc. because they are the most effective ways of enforcing and maintaining the control needed for a gov't like that to function and not fall into anarchy or revert to democracy.

Last edited by alansmithee; 08-24-2005 at 08:26 PM..
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Old 08-24-2005, 08:29 PM   #14 (permalink)
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Quote:
Originally Posted by Charlatan
I think the best system takes what is good from both systems an utilzes them simultaneously.

I look at nations like Sweden, Canada, Finland for examples of this to greater and lesser degrees.

Capitalism can be a force for good but left unchecked it can run roughshod over people and the environment (in other words, like Communism it is a sytem that looks good on paper but doesn't take into account human nature).



The key is to find the sweet spot between the two.
I would actually argue that capitalism looks very bad on paper, but works because it DOES take into account human nature.
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Old 08-25-2005, 08:10 PM   #15 (permalink)
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Quote:
Originally Posted by shakran
Communism is a much better system than capitalism. . On paper. Trouble is it fails to take into account human nature. And the guys that are in charge are going to want to be more equal than the rest of the country. That's where corruption sets in, money starts flowing upward, leaving the peasants with very little.

It's also important to remember that communism is NOT a system of government, but of economics. It's often confused.
I disagree. Any system that entirely disregards imbalances in individual productivity in favor of total equality to is fatally flawed. Perhaps on the most basic level, when it is required for the survival of a small group, then it is appropriate or even ideal, but on a large scale I feel that a free market with only minimal limitations is the best solution. I have no problem with a limited welfare program to help the truly unable to sustain themselves, but those who are not willing to work deserve nothing.

This post: http://www.tfproject.org/tfp/showthread.php?t=93643 gives us a good idea of how we work. If our entire community is within ever member's monkeysphere, then we will be able to sustain a communist tribe. Once it grows beyond, competition is required to sustain us.

Quote:
Originally Posted by pan6467
Today we are seeing a bit of resurgence, and had oil not gone up the way it has, we may well have been on the road to somewhat of a recovery. But the problem is, management is capitalizing on the weak labor and being as greedy themselves as the unions once were.
I think that the oil price spikes are goign to be a huge stimulus for our economy as soon as they hit a point high enough to force us into alternative energy solutions. The Europeans might be fine just dealing with high prices as part of life, but we're some stubborn bastards over here and we won't be happy until we can pour another 60 gallons of 50-cent-per-gallon corn oil into our Hummer H155's and giggle childishly as that tiny, efficient European sedan drives under us with enough clearance to go over a speedbump without so much as a dented roof

Last edited by MSD; 08-25-2005 at 08:17 PM..
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Old 08-25-2005, 09:55 PM   #16 (permalink)
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Originally Posted by the_ref
Neither system has been tried in its pure form and we should thank our lucky stars that this is true.
*cough*
Quote:
Classical Liberalism in Argentina: A Lesson for the World
by Jacob G. Hornberger, July 1994

Two centuries ago, Adam Smith asked a very fundamental question: what are the nature and causes of the wealth of nations? Note that Smith did not ask what most people today ask — that is, what are the causes of poverty? Smith understood that poverty had always been the natural state of mankind. He wanted to know something much more vital — what is it that causes certain nations to be wealthy and prosperous?

The history of Argentina provides the answer that we are seeking to this vitally important question.

Argentina declared its independence from Spain on May 25, 1810. For several decades after that, the country was plunged into a series of disastrous civil conflicts, which culminated in "order" being established under a brutal tyrant by the name of Juan Manuel de Rosas. In 1852, Rosas was overthrown and forced into exile.

The outcome was one of the most unusual periods in the history of man. Nothing like it appears anywhere else in all of Latin American history. The period from 1850 to 1930 in Argentine history is a model — a beacon shining through the darkness of history — a confirmation that what Adam Smith had discovered was true.

In his great treatise — An Inquiry into the Nature and Causes of the Wealth of Nations — Smith asked, what have been the traditional means of combating poverty throughout history? The answer, of course, was government. People had always believed that governmental policies were necessary to ensure that people did not starve to death or suffer lives of impoverishment. Yet, despite the best efforts of governmental officials throughout the ages — such as with the English Poor Laws, the Corn Laws, price controls, and antispeculation laws — people had continued to suffer deep privation.

Smith's conclusion was a revolutionary one — and one that did not find a ready audience among public officials. Smith concluded that throughout history, it had been governments' attempts to defeat poverty that had prevented nations from becoming wealthy and prosperous . That is, government itself — through its taxing and interventions into economic activity — was the source of the privations and sufferings that had afflicted mankind throughout the centuries. If government was prevented from attacking poverty, Smith argued, people would prosper! In other words, once the heavy burden of taxation, subsidies, and interventions were lifted, a nation would enjoy wealth and prosperity.

There were a few countries in the 1800s that put Smith's ideas to the test. Among them was Argentina.

Upon Rosas' ouster, a new constitution for Argentina was drafted. The man most responsible for the new constitution was Juan Bautista Alberdi — one of the greatest men in Argentine history. Alberdi had been strongly influenced by the ideas of the Founding Fathers of the United States. Like Thomas Jefferson and James Madison, Alberdi believed that individuals had inherent rights of life, liberty, and property with which no government could legitimately interfere. He believed that the primary purpose of government was to ensure the protection of these unalienable rights.

Alberdi's book, Bases for the Political Organization of the Argentine Republic , first published in 1852, the year of Rosas' defeat, became the framework for the new Argentine constitution. The spirit of liberty still lives in the words of Juan Alberdi:

"Today we must strive for free immigration, liberty of commerce, railroads, the navigation of our rivers, the tilling of our soil, free enterprise, not instead of our initial principles of independence and democracy, but as essential means of assuring ourselves that these will cease being mere words and will become realities. . . . Our revolutionary wars sought to establish liberty from outside oppression . . . what we now need is liberty within. . . . Our leaders want both glory and liberty, and the two are contradictory. . . . As South America has contributed nothing to world civilization except its wars and the victory in its struggle for independence, the only glory which exists among us is martial glory, and our great men are all military heroes. Not a single invention like that of Franklin, like that of Fulton, like the telegraph, and many others which the civilized world owes to North America, has been contributed by our America of the south."

The Argentine constitution that Alberdi crafted was modeled on that of the United States. The result: for the only time in all of South American history, government's power over the citizenry was extremely limited. With various exceptions (land grants to railroads being among the most notable), people were free to engage in any economic enterprise without governmental interference and to accumulate unlimited amounts of wealth. There was no income taxation, and indirect taxation was extremely low. Enterprise, by and large, was free — very few licenses, permits, regulations, and other governmental barriers interfered with people's ability to earn a living. There was virtually no governmental welfare system.There were few barriers to trade and investment. And, perhaps most striking, there were no barriers to immigration!

Sound familiar? Well, it should to Americans — because these were the principles that once guided the American people!

And what were the results of this unusual way of life? They are almost unbelievable. The data is set forth in a book entitled Argentina: 1516-1987 by David Rock:

"By 1890 the British had inundated Argentina with an estimated £157 million of investment capital. The great symbol of the new British connection was a burgeoning railroad system . . . most of it in the hands of private British companies — over which were transported 10 million passengers and 5 million tons of cargo. Foreign trade similarly expanded: in 1861 total foreign trade, both imports and exports, was valued at 37 million gold pesos; by 1880 at 104 million, and at more than 250 million by 1889."

"Meanwhile, the nation's population increased from an estimated 1.1 million in 1857 to approximately 3.3 million by 1890. . . . Immigrants arrived in enormous droves: between 1871 and 1914 some 5.9 million newcomers, of whom 3.1 million stayed and settled. Altogether between 1830 and 1950 Argentina absorbed some 10 percent of the total number of immigrants from Europe to the Americas."

"By the outbreak of World War I Argentina had experienced almost twenty years of prodigal expansion. Per capita income equaled that in Germany and the Low Countries, and was higher than in Spain, Italy, Sweden, and Switzerland. Having grown at an average annual rate of 6.5 percent since 1869, Buenos Aires had become the second city of the Atlantic seaboard, after New York, and by far the largest city in Latin America. . . . Except entrepôts like Holland and Belgium, no country in the world imported more goods per capita than Argentina. By 1911, Argentina's foreign trade was larger than Canada's and a quarter of that of the United States."

The Argentineans had proven Adam Smith correct. By using their constitution to strictly limit the power of their government to interfere with their economic activities, the result was one of the most prosperous periods people had ever experienced.

However, it was not to continue. In the 1930s, a military coup ousted the popularly elected government. Unfortunately, the new Argentine rulers rejected the Smith-Jefferson-Madison-Alberdi philosophy of economic freedom; instead, they turned to the socialist, fascist economic philosophy of people such as John Maynard Keynes, Benito Mussolini, and Franklin D. Roosevelt.

Income taxation was instituted. A central bank was created, and the gold standard was ended. Exchange controls and trade restrictions were imposed. Price supports and controls were instituted. Regulatory boards were put into place.

Economic prosperity in Argentina came to an end. The nation was plunged into a series of financial and economic crises. The culmination was the election of Juan Perón in the 1940s. Perón, together with his wife Evita, carried the welfare-state philosophy followed by Franklin Roosevelt (and his wife Eleanor) to the extreme: they gave "bread to the masses" by using the state to plunder the wealthy.

Perón's administration lasted from 1946 to 1955. Like Roosevelt's New Deal, his governmental attempts to wage war on poverty only made a bad situation worse. By the time he was ousted in 1955, the glory days of Argentine liberty and prosperity were gone.

Since then, Argentina has become just another Latin American country, perhaps more prosperous than others, but with the same basic premise as the rest — that a welfare state and a regulated economy are the way to attain wealth and prosperity. The results, of course, have been the opposite.

The year 1958 will ultimately go down as a momentous one in Argentine history. That year, a small group of Argentineans, led by a man named Alberto Benegas Lynch, who was running an organization named the Centro de Estudios sobre la Libertad (CESL), invited two Americans to deliver a series of lectures in Argentina. The two men were Leonard Read and Ludwig von Mises. Read was the founder of The Foundation for Economic Education (FEE), which had been established in 1946 with the express aim of reestablishing economic liberty in the United States. Mises, who had immigrated from Austria and was then teaching at New York University, was the acknowledged leader of the Austrian school of economic thought.

Read's lectures were published in a book entitled Why Not Try Freedom? In his introduction to the book, Read writes:

"To everyone's amazement, the 160 seats in the lecture room were filled the very first evening and 25 people were standing. The same was true for the entire series — testifying to an intense interest in liberty."

Mises' lectures were ultimately published in a book entitled Economic Policy . In the introduction to the book, his wife Margit Mises wrote:

"We arrived in Argentina some months after Perón had been forced to leave the country. He had governed destructively and completely destroyed Argentina's economic foundations. . . . Ludwig von Mises spoke without any restraint about capitalism, socialism, interventionism, communism, fascism, economic policy and the dangers of dictatorship. . . . The audience reacted as if a window had been opened and fresh air allowed to breeze through the rooms. . . . I remembered how vividly the singular enthusiasm with which those Argentineans had responded to my husband's words."

In subsequent years, Alberto Benegas Lynch fanned the embers of liberty he had so carefully lit in the 1950s. Through his center, he published a series of booklets entitled "Ideas Sobre La Libertad," which contained essays that FEE was publishing and, later, original essays written by a new generation of Argentine liberals.

Today, Alberto Benegas Lynch — now in his 70s — continues to toil in the vineyards of Argentine liberty. It was this man — and the small group aligned with him — that laid the foundation for a renewed era of Argentine liberty and prosperity. His legacy is found in the large number of free-market institutions in Argentina that now exist to promote "ideas sobre la libertad" all over the Argentine nation. The most prestigious — Escuela Superior de Economía (ESEADE) — is a post-graduate program with an emphasis on Austrian economics; it was founded and is still run by his son, Alberto Benegas Lynch, Jr. Other Argentine institutions that are leading the way to liberty are Centro de Estudios Macroeconómicos de Argentina; Fundación Republica; Fundasud; Fundación Libertad; Fundación America; and Fundación Alberdi.

And the movement toward liberty in South America is not limited to Argentina. Thanks in large part to an organization located in Fairfax, Virginia — The Atlas Economic Research Foundation, founded by an Englishman named Antony Fisher — there are now free-market institutions all over South America.

Throughout the world, people are still suffering the privation, misery, and destitution that have resulted from the age-old belief that government should wage war on poverty. Today, public officials everywhere — supported by their citizenry — continue traveling the same road to "ending poverty" — taxation, regulation, welfare, public housing, subsidies, price controls, and thousands of other forms of socialism and fascism.

But Argentina from 1850 to 1930 serves as a real beacon to all who wish to crack the never-ending cycle of poverty and misery: "To all who wish wealth and prosperity, remove the heavy hand of the state from your pockets and your economic activities."

Today, the South American liberals are leading their respective nations to liberty and prosperity. Perhaps they will lead the world — including the United States — as well.

Mr. Hornberger is founder and president of The Future of Freedom Foundation.
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Old 08-26-2005, 03:35 AM   #17 (permalink)
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I'm not sure why whenever communism and capitalism - as practiced in the world today and in the past - are discussed, everyone always jumps up to point out that "The USSR wasn't REALLY communist" or the "US isn't REALLY capitalist".

Today we play hockey and football and basketball - sports invented well over a hundred years ago - and what we play today actually bears only a passing resemblance to what was played then. Rules have changed, equipment has changed, etc. But we still call basketball by its name.

IMO, communism is/was the USSR, China, and Cuba, no matter what Marx may have written once, just as the US is capitalist, regardless of Adam Smith.
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Old 08-26-2005, 06:51 AM   #18 (permalink)
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EULA,

Some comment from you would have been appropriate, but that being said, I rather enjoyed that article.

I tend to lean towards a capitalistic system with some protections, but certainly not all that countries like Sweden practice (with their correspondingly huge taxations).
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Old 08-26-2005, 07:06 AM   #19 (permalink)
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eula... That was a rather biased bit of writing... it completely ignores that fact that under Alberdi's system many, many poor suffered while the rich got richer.

Capitalism unchecked is never a good thing for the poor, the environment, etc.

Again, the key is balance between free market and government protections...
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Old 08-26-2005, 08:27 AM   #20 (permalink)
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Quote:
Originally Posted by highthief
I'm not sure why whenever communism and capitalism - as practiced in the world today and in the past - are discussed, everyone always jumps up to point out that "The USSR wasn't REALLY communist" or the "US isn't REALLY capitalist".

Today we play hockey and football and basketball - sports invented well over a hundred years ago - and what we play today actually bears only a passing resemblance to what was played then. Rules have changed, equipment has changed, etc. But we still call basketball by its name.

IMO, communism is/was the USSR, China, and Cuba, no matter what Marx may have written once, just as the US is capitalist, regardless of Adam Smith.
It's important because in their theoretical forms there is a lot of good stuff. Anytime one tries to praise Marx's communist ideals they the same response EVERY time from people who think they know what it is, and that is: "well... the problem with communism is that is works well on paper...." I can't tell you how many times I've heard that and that's usually where that person's knowledge ends.

You're right. What I really should be saying is that the U.S.S.R. was NOT communist. The sports analogy is a false one, because current sports are intensifications of the original concept, where Russia and China were misinterpretations of Communism.
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Old 08-28-2005, 08:54 AM   #21 (permalink)
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of course, it is true to say that the free capitalist industrial revolutions of America and Europe caused far more suffering and death than the state-capitalist revolution revolutions of China and Russia.
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Old 08-28-2005, 05:57 PM   #22 (permalink)
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Quote:
Originally Posted by Strange Famous
of course, it is true to say that the free capitalist industrial revolutions of America and Europe caused far more suffering and death than the state-capitalist revolution revolutions of China and Russia.
Actually, that's not true at all. Any metric you could use would point to the Chinese and Russian revolutions causing more suffering, both across the world and in their respective countries. If you want to look at average wealth of the countries inhabitants, death totals of the respective revolutions. I don't even know of any communists that would make such a ludicrous claim in this day and age.
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Old 08-28-2005, 05:59 PM   #23 (permalink)
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It all depends on how you define "suffering" and who is doing the suffering...
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Old 08-28-2005, 06:34 PM   #24 (permalink)
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Quote:
Originally Posted by Strange Famous
of course, it is true to say that the free capitalist industrial revolutions of America and Europe caused far more suffering and death than the state-capitalist revolution revolutions of China and Russia.
This is bull, both sides and ANY system causes suffering and death. Russia killed as many if not more Jews than Hitler. China has killed, maimed millions and to this day force child labor.

Our country may have a bad history, but unlike the communists we have worked hard (and sometimes not in the best of ways.... Political Correctness, quotas, etc.) to make amends and try to better ourselves and pay retribution.

Communism never did.

Granted Neo-Conservativism is now destroyingwhat was at one time the best system in the world.... but it is a swing.... much like when unions had too much power.

We'll find the middle and swing past it and continue the cycle... until one side gets so powerful during the swing they refuse to let the swing correct itself. (That time may very well be now.... but there are signs the swing is headed back to the middle that neo-cons have reached their pinnacle).
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Old 08-28-2005, 08:18 PM   #25 (permalink)
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I believe that there are some interesting articles out there that compare Sweden's economic growth and prosperity, along with that of her people, against the US. Basically, the papers I read seemed to say that the socialism practiced by Sweden seemed to be of no hinderance to its success economically - DESPITE what is some of the highest tax rates in the west.

That being said, I seem to remember that the papers I saw didn't necessarily compare apples to apples. Also, I don't know of the collective American psyche is ready to move towads Sweden's format...although we may certainly be headed in that direction.

Sorry I'm not linking to anything, but it is 12:18am, I have a grant due on Tuesday, and I was just stopping by for a quick look to see what was happening. I can't afford to get sidetracked!

lol
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Old 08-29-2005, 10:49 AM   #26 (permalink)
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Quote:
Originally Posted by Charlatan
It all depends on how you define "suffering" and who is doing the suffering...
how would you define suffering and who would you name as the sufferers in constructing an argument positing Russian-Chinese communism/socialism to be a lesser evil than Western capitalism/democracy?
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Old 08-29-2005, 12:49 PM   #27 (permalink)
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I'd prefer communism, but only done correctly, which is impossible with human beings. At the end of the day, they're both just tools to be used in whatever way the people wish. It's like having a hammer and shovel. If you want to dig a hole, you use a shovel. If you want to nail stuff together, you use the hammer.
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