Each economic problem produces larger government. Lip service is given to free markets and free men, but we left that ideology a long time ago. While we still pretend to be a free-market economy, we are not in the sense that virtually nothing can be done without permission of the government and its regulatory apparatus. Our economy has been smothered and cannot recover.
We are little different from the old Soviet Union in the sense that we pretend that things are getting better. Our government statistics and measurements are manipulated just as they were in Russia.
Power and attempts to maintain it are the same the world over.
Nicholas Snow has some interesting commentary on the Soviet Union. Are we going through the same thing today with “pretend capitalism?”
by Nicholas Snow
The consensus of economists today is that socialism generally doesn’t work. Ludwig von Mises and F.A. Hayekare seen as the victors of the socialist calculation debate, which took place in the first half of the twentieth century. For the most part this consensus is new. Originally the market socialists were seen as victorious; their technical neoclassical models of trial and error, and the duration and seeming success of the Soviet Union, appeared to indicate that the two Austrian economists’ claims against socialism were wrong. There were two problems, however. First, the market-socialist models never addressed the knowledge problem at the center of the Mises/Hayek critique. Second, the Soviet Union was not what it appeared.
The closest the Soviet Union came to actual pure socialism was the period known as War Communism, 1918 to 1921. This period is unanimously seen
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