Category: Communism

May Day 2022 – Commie Compilation

George Noga

Humans have dreamt of a temporal paradise since the Garden of Eden.

May Day 2022 – Commie Compilation

By: George Noga – May 1, 2022

May Day commemorates the Haymarket riots, which to socialists symbolize the struggle for workers’ rights. It is the most important holiday in socialist countries such as Russia, China, Vietnam, Cuba, Laos, North Korea, Venezuela and former Soviet republics. In observance, we present a compilation of the failures of collectivism from many different angles. We do this because polls show many younger Americans prefer socialism over capitalism. Also, progressivism is a gateway drug for socialism.

Socialism fails in theory and practice: Throughout history socialism has failed everywhere it has been attempted; it never has succeeded for a group larger than a small clan, family or tribe. There is not one example where socialism has improved the human condition over a sustained period of time. Collectivism fails because it is fundamentally contrary to human nature and ignores and misaligns incentives.

Collectivism is a lie: Commies promise you liberty; you get the Berlin Wall and closed borders with watchtowers, razor wire and minefields. They promise prosperity; you get lines, rationing, shortages and shoddy goods. They promise hope; they give you nihilism. They promise truth; you get Pravda, censorship, propaganda, and banned internet. They promise life; they give you death – murdering over 100 million of their own people. They promise a workers paradise; you get a phantasmagoria of lies, terror, slaughter, misery, poverty, injustice, kleptocracy and social pathology.

Socialism is just like Scandinavia: Progressives assert socialism is just like Sweden and other Scandinavian countries. Sweden experimented with socialism in the 1970s and it was a colossal failure. They abandoned socialism and embraced free market capitalism. Today every Nordic nation is capitalist. They provide robust social benefits only because their capitalist economies generate great wealth. Sweden is not prosperous due to socialism; it is wealthy because it abandoned socialism. Moreover, if Sweden were a US state, it would be the poorest one – and by a wide margin.

Initial successes are illusory: Socialism can appear to work briefly as socialists plunder a nation’s wealth. They confiscate assets, loot industries, strip natural resources, run huge budget deficits, and borrow to the hilt. They tax the wealthy to oblivion, print worthless currency, hyperinflate, pillage banks and beg for foreign aid. They impose price, rent and currency exchange controls. For a time, these measures give the illusion of progress, but all socialists have done is steal a nation’s patrimony. After socialists are done pillaging, it always ends the same, i.e. starvation amidst plenty.

Jamestown and Plymouth: Both colonies initially were governed under socialist principles. All property was communal and there was no direct link between work and benefit. Both experienced mass starvation and death – even cannibalism. They starved to death en mass rather than work collectively. They literally chose death over socialism. Once private property rights were restored, the colonies prospered. The very same settlers who had starved under socialism, now thrived under capitalism.

Trabant versus Mercedes: The best car ever produced under socialism is the Trabant. It had a two-cylinder engine and 26 horsepower – similar to a riding lawnmower. The gas gauge was a dipstick and oil had to be mixed in with the gas in precisely the correct proportion. There was no fuel pump and the gas tank was placed above the engine for gravity flow. Payment in full was required up front and the car would be delivered in 12 years. The Trabant was made in East Germany; a few miles away in West Germany, consumers had their choice of VW, Audi, BMW, Porsche and Mercedes-Benz.

Head-to-Head Comparisons: Many years ago there were five islands, all of them poor and bereft of natural resources. Two of them chose command economies and collectivism; the three others chose free market capitalism. A half century later, the socialist islands are impoverished hell holes and the ones that chose capitalism are rich. It’s as simple as Hong Kong, Singapore and Taiwan versus Cuba and Puerto Rico.

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Progressives continue to harbor quixotic dreams of utopia; perhaps they will get it right the next time. But for the entirety of human history, it is the god that failed.

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Next is a special posting about the beginning of the spending crisis.
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Communism: The God That Failed

George Noga

Communism fails because it is opposed to and irreconcilable with human nature.

Communism: The God That Failed

By: George Noga – October 24, 2021

On this day in 1917 communists took over the government of Russia to the rapture of collectivists everywhere. They now would have the chance to demonstrate, once and for all, socialism’s superiority. It would, they believed, be the fulfillment of mankind’s eternal dreams of paradise on earth. Man has worshipped at the altar of collectivism and longed for Utopia since the days of Elysium, Xanadu, Zion and Valhalla.

But despite having every opportunity to make communism work, it collapsed in less than 75 years. This should not have come as a surprise, as all collectivist schemes have failed always and everywhere. The pattern follows a preordained script: collectivists make high-minded and exalted promises, but end up delivering a phantasmagoria of terror, slaughter and poverty. In the end, it is all lies; it is the god that failed!

The Trabant could go from zero to 60 mph in the same day.

We have tried many approaches to contrast socialism with free market capitalism. This year, on the anniversary of communism, we try yet another approach. We present three examples that showcase the failure of socialism better than any academic tome.

The Trabant

The best car ever produced by commies was the Trabant. I saw one once in a museum; it looked more like a lawn mower than a car. It had a two-stroke, two-cylinder engine and went from zero to 60 in the same day. It had 26 horsepower and a top speed of 60 mph. (Note: some riding lawnmowers have 24 horsepower). The gas gauge was a dipstick and oil had to be mixed in with the gas in precisely the correct proportion. Because it had no fuel pump, the gas tank was located atop the engine for gravity flow. Despite all its deficiencies, the waiting time from order to delivery was 12-15 years.

Contrast the East German manufactured Trabant with cars manufactured in West Germany such as Mercedes-Benz, Audi, BMW and Volkswagen. All of these cars are available with a stunning array of options and can be delivered in less than one hour from being ordered. Communists promise you a Mercedes but give you a Trabant.

The Sears Catalog

There is an old commie joke wherein the chief soviet economist (oxymoron) bursts into the office of the head commie and says, “We have conquered the entire world except for New Zealand.” The head commie asks why they had not conquered New Zealand; the economist replies, “We must have one place where there are real prices.” This story is funny because it is true. Soviet commies had no way to know what things cost or what prices should be charged. So, instead of looking to New Zealand, they turned to Sears catalogs to set prices for consumer goods – as did the Chicoms.

Computer Technology

The East German communists possessed the most advanced computer technology in the Soviet bloc. Their computer scientists were subject to extreme security measures by the Stasi to safeguard their technology and to keep it from falling into the hands of enemies. They were proud that their technology was so superior. After the Berlin Wall fell, the top commie computer scientist visited West Berlin. He was flabbergasted to find far more advanced (100 times faster and better) computers for sale to ordinary citizens at ridiculously low prices. The strict secrecy was imposed not because commie computer technology was so advanced, but because it was so far behind.

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The enduring legacy of communism, and all collectivist schemes, is that it never can work because it is unalterably opposed to and unreconcilable with human nature. It fails not because it was implemented improperly, but because it was implemented faithfully. Instead of Utopia, the communists wrought gulags, death, destruction and misery on a monumental scale. Understanding the difference between communism and capitalism is as simple as the difference between a Mercedes-Benz and a Trabant.

Answers to Numeration Problems from Last Week

For those of you who missed last week’s posting about numeration, you may wish to visit our website at www.mllg.us to take the quiz before your read the answers.

Problem #1: The correct answer is (f); each answer from (a) to (d) is correct.

(a) The stock decreased by 20% as $10 is 20% of $50

(b) Since the 20% decease happened in 6 months, the annual rate of decrease is 40%

(c) To breakeven, the stock must go from $40 to $50 – an increase of 25%

(d) If you bought another 100 shares at $40, you now own 200 shares that cost $9,000. If the stock went to $45 (a 12.5% increase) the 200 shares would be worth $9,000.

Problem #2: The correct answer is (d). This is all about knowing which denominator is correct. It is helpful (but not necessary) to assume there are 10 slices. You ate 6 slices and your spouse ate 4. You ate 2 more slices than your spouse’s 4 – or 50% more – not 20%, 33% or 40%. Your spouse ate 2 slices less than your 6 slices, or one-third less.

Problem #3: The correct answer is (d). Dividing $90 by (1-.35) is the same as dividing $90 by .65, the result of which is $138.46. You can confirm this is correct by working the problem in reverse. Multiply $138.46 by 35% to get $48.46. Then subtract $48.46 from $138.46 to get $90 – the correct result.

Our next post contrasts the promises versus the results of communism.

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Red October – The God That Failed

George Noga
Communism fails because it is opposed to and irreconcilable with human nature.
Red October – The God That Failed
By: George Noga – October 29, 2017
       Humans have sought to create temporal paradises since the Garden of Eden. In literature, dreams of heaven on earth date to Homer’s Odyssey (Elysium) in the 12th century, BC. There have been numerous attempts to create Utopias, including colonists in Jamestown, Pilgrims in Plymouth and the 1789 French Revolution. Communism’s turn came 100 years ago this month when they took over the government of Russia.
      In all human history, attempts to create Utopia have led only to death, destruction and misery; the communists alone killed over 100 million. Never has any communist, socialist or collectivist scheme worked for any group larger than a family, clan or tribe. Despite this grisly record, many – ever in search of  Zion – continue to believe. What can possibly explain the beliefs of such people – including those who feel the Bern?
      Their belief is not based on evidence but on a longing for a moral basis in their lives. They are in search of a religion – but one without God. Politics is their new faith but they are anti-democratic because they already have all the answers. They long for equality but the equality that leads to conformity and despotism. They compare the ideal of communism with the practice of capitalism but never the results of each. They want to be judged by their intentions, never by their actions. They embrace platitudes from cans. They are oblivious to history and believe they will get it right next time.
    Capitalism stands in sharp contrast to communism. Just since 1970, worldwide poverty has fallen 80%. In arguably the greatest achievement in human history, billions of people have escaped poverty. Was this miracle due to the UN, World Bank, IMF, NGOs, government or socialism? No; it was due entirely to capitalism. Yet 70% of people surveyed believe hunger and poverty have gotten worse and only 40% of young Americans have a favorable view of capitalism. Socialism impoverishes people (Venezuela) while capitalism makes them wealthy; yet, people cling to illusions.
       Communism, socialism and collectivism are lies. They promise Xanadu,Valhalla and Elysium; they give you North Korea, the USSR, and Cambodia. They promise comradeship; they give you totalitarianism. They promise progress; they give you stagnation. They promise hope; they give you lives of quiet desperation. They promise Sweden; they give you Venezuela. They promise a new social order; they give you a smorgasbord of social pathologies. They promise truth; they give you Pravda.
     They promise liberty; they give you walls with razor wire and minefields. They promise equality; they give you equal poverty. They promise a clean environment; they give you a toxic wasteland. They promise technology; they give you Chernobyl. They promise a classless society; they give you political elites living in decadent luxury. They promise freedom and justice; they give you Gulags and the Stasi.
       They promise peace; they give you war. They promise Apple, Google and Disney; they give you lines, shortages and shoddy goods. They promise hope; they give you nihilism. They promise Mercedes; they give you Trabant. They promise Eden; they give you hell on earth. They promise Singapore; they give you Cuba. They promise abundance; they give you rationing. They promise Utopia; they give you dystopia.
       The enduring lesson of communism is that it never has worked and never can work because it is opposed to and irreconcilable with human nature. It always fails, not because it is implemented poorly but, because it is done faithfully. Although socialism, progressivism and liberalism may be less virulent forms of communism, the end result always is the same – economic stagnation, human misery and loss of liberty.
     Communism (and all other collectivist schemes) always makes high-minded and exalted promises but delivers nothing but a phantasmagoria of terror, slaughter and poverty. In the end, it is nothing but lies. It is the God that failed!
This concludes our Red October series; our next post is November 5th. 

Red October – Humor Exposes Reality of Communism

George Noga
An emergency meeting of the USSR politburo was called to discuss pantyhose.
Red October – Humor Exposes Reality of Communism
By: George Noga – October 22, 2017
      It is possible to learn as much or more through anecdotes and humor as through rigorous economic analysis. This is especially true of communism. Following is a collection of my favorite commie stories. They reveal all you ever need to know.
      Gorbachev once presided over a special politburo meeting to address a pantyhose crisis. Pantyhose had disappeared from the USSR; even wives of politburo members could not get them and their complaints forced an emergency pantyhose politburo meeting. Imagine a US cabinet meeting devoted solely to underwear production.
     The Soviets had a broken window crisis. The problem was traced to glass factories where production quotas were based on square footage of glass. The glass commissars exceeded their quotas by producing vast quantities of ultra thin glass. To correct this, the head commies changed the quota from square footage to weight. The outcome is as predictable as it is farcical; the glass commissars switched to producing equally unuseable ultra thick glass. This is but a microcosm of what happens when there are no markets. It also proves the capitalist principle that people respond to incentives.
     One day the chief Soviet economist burst into the office of the head commie exclaiming “Congratulations comrade, we have conquered the entire world except for New Zealand.” The General Secretary was happy but perplexed; he asked, “Surely we are more powerful than New Zealand; why have we not conquered it as well?” The economist replied, “We must keep one place in the world where there are real prices.“
     Communist East Germany had the most advanced computer technology in the Soviet block. Their computer scientists were told extreme security was necessary because they were so far ahead of the west. After the Berlin Wall fell, the top commie computer scientist visited West Berlin where he was flabbergasted to find far more advanced computers for sale to the public at ridiculously low prices. The secrecy was imposed not because commie computers were so good, but because they were so bad.
       In the 1980s my friends were visiting Moscow. One day while walking around, they noticed it was lunch time and looked for a place to eat. They found a cafeteria and got in line. Despite waiting forever, the line did not move. My friend went to see what was going on. He found a sign that read: Cafeteria closed for employees’ lunch.
        I conclude with an icon of communism, the Trabant – the best car produced by commies. It had a two-stroke, two-cylinder engine and went from zero to 60 in the same day. It had 26 horsepower and a top speed of 60 mph. The gas gauge was a dipstick and oil had to be mixed in with the gas in precisely the correct proportion. Since it had no fuel pump, the gas tank was located atop the engine for gravity flow. Despite all this, the waiting time from order to delivery was 12-15 years.
      Contrast the East German manufactured Trabant with cars manufactured in West Germany: Mercedes, VW, Audi and BMW. Communism produced Trabants with a 12- year wait; capitalism produced Mercedes and BMWs available immediately and with a stunning array of options. The difference between communism and capitalism really is this obvious – – they promise you a Mercedes-Benz but they give you a Trabant!
     The final posting in our Red October series on October 29th is entitled “The God That Failed“. It is one of the most powerful posts of all time; don’t miss it!

Red October – Socialism, Sweden and Scandinavia

George Noga
Scandinavian countries are not prosperous because of socialism but despite socialism. They tried socialism; it failed; they rejected it and reinstituted free market capitalism.
Red October – Socialism, Sweden and Scandinavia
By: George Noga – October 15, 2017
      Many Americans, especially millennials and progressives, believe Scandinavian countries, particularly Sweden, are veritable socialist Utopias. Bernie Sanders and Hillary Clinton said so during the last election and were unchallenged by the equally clueless media. Whenever I discuss politics or economics with liberal interlocutors, they invariably cite Sweden as proof that socialism works. They are wrong on all counts; Sweden is neither socialist nor especially wealthy. Let’s look at some history.
        Sweden once was so dirt poor it sent waves of immigrants to America. Circa 1875 Swedes embraced free market capitalism and began to prosper. Around 1970, Sweden took a hard left turn; taxes soared, welfare expanded and private enterprise was discouraged. The predictable result was rampant crime and drug addiction, Kafkaesque bureaucracy, welfare dependency and emigration by successful Swedes. By the 1990s Swedes saw socialism as a colossal failure; they cut taxes, restored free markets and economic freedom; they replaced leftist governments with right-leaning ones.
     The stories of the other Scandinavian countries (Norway, Denmark, Finland) are similar. Today, all four enjoy dynamic market economies albeit with robust social insurance programs financed by high middle class taxes. They can afford such benefits only because of successful capitalist economies that produce sufficient wealth. No socialist economy has ever generated enough wealth to fund such benefits. Sweden is not prosperous because of socialism; it is prosperous because it survived socialism.
       Note: The Scandinavian model of social insurance can only work in small, homogeneous populations with deeply shared and ingrained values, social and cultural cohesion and a middle class (there never are enough rich) willing to accept extraordinarily high tax rates.
       Americans incorrectly believe Scandinavian countries are wealthy; however, they compare very unfavorably to the US. The GDP of Houston, Texas is larger than all of Sweden. If Sweden were a US state it would rank among the very poorest in per capita GDP. Moreover, Sweden is 30% more expensive. This means that when considering both purchasing power and GDP, Sweden would be the poorest US state – by far.
       With the lie of Scandinavian socialism outed, consider if communism, socialism or any collectivist economy ever has produced sustained prosperity. The short answer is never. Socialism may produce short-term gains by nationalizing property, debasing currency, seizing assets and borrowing. This is akin to mortgaging your home, selling your patrimony and stealing your neighbors’ property – all to finance a gigantic party. But the party always ends when the other people’s money runs out.  
       Examples of communism/socialism are Cuba, USSR, North Korea and Venezuela. Their horrors are obvious except to diehard progressives. These are the places to observe the reality of destructive collectivist schemes. Liberals and their media running dogs falsely cite Sweden and Scandinavia as socialist success stories when, in fact, they are socialist failures and capitalist successes. It is all a big lie as indeed all of collectivism is a big lie. Commies promise you Sweden but they give you Venezuela!
Red October continues next week with a healthy dose of commie humor.

Red October – A Tale of Six Islands

George Noga
Communism promises Xanadu, Valhalla, Elysium and Zion; it delivers North Korea,
Venezuela, USSR and Cuba. It promises a Garden of Eden but delivers hell on earth.
Red October – A Tale of Six Islands
By: George Noga – October 8, 2017
      Our month-long series chronicling 100 years of communism continues; this week we compare island nations with command economies to ones with market economies. There is something about the self-contained nature of islands that invites comparisons. For good measure, we contrast liberal US cities and states with conservative ones.
       Communist Cuba, a brutal dictatorship, has a failed economy; its GDP ranks 137 and its freedom index 171. Most Cubans’ take home pay is $30/month. It is a nihilistic society where one-third of all pregnancies are terminated. Socialist Greece, constantly being bailed out by its neighbors, is a failed state. Uber-liberal Puerto Rico is bankrupt; it owes $75 billion in bonds and $40 billion in unfunded pension liabilities – equal to $100,000 per household. People are rapidly fleeing this crime-riddled wasteland.
       Singapore is rich; less than 20% of its economy is in the public sector and taxes are half that of the US. It ranks #2 in the world for economic freedom. The #1 place for economic freedom is affluent and capitalist Hong Kong. Taiwan, a vibrant free market democracy, ranks high in both wealth and freedom. A mere few generations ago all six of these places were desperately poor. Today, the ones (Singapore, Hong Kong, Taiwan) that chose freedom and capitalism are all rich. The ones (Cuba, Greece, Puerto Rico) that chose collectivist, anti-market schemes are impoverished hellholes.
       Deep blue states (California, New York, Illinois) are hemorrhaging people with 1,000 each day abandoning them for deep red states (Texas, Florida, Utah). They move to escape blue states’ confiscatory taxation, job killing minimum wages, forced unionization, welfare fraud, choking regulations, green energy mandates and social pathologies. As humans always have done, they gravitate to places with economic freedom where household income is $10,000 higher and people are happier.
        Many cities have been governed by progressive politicians, often for more than a half century; Detroit, Newark, Cleveland, Chicago, and Washington come to mind. The legacy of such liberal stewardship is bankruptcy, shrinking population, failed schools, high taxes and crushing debt. They are dismal, dangerous and dirty places. If liberal policies worked, they should be thriving magnets showcasing progressive ideas and the failure of free market capitalism. Instead, contrast these failed cities with successful ones such as Dallas, Houston or Salt Lake City. Whether it be islands, states or cities, it is clear that more liberty and less government works and that socialism fails.
       As I oft have written, liberalism (and every one of its collectivist cousins) is a lie. They promise Utopia, Xanadu, Nirvana, Elysium, Valhalla and Zion but what they give you is death and desperation as in Venezuela, Cuba, the USSR and North Korea. Economist Ludwig von Mises nailed it nearly 75 years ago when he wrote:
    “The champions of socialism call themselves progressives, but they recommend a system which is characterized by rigid observance of routine and a resistance to every kind of improvement. They call themselves liberals, but they are intent on abolishing liberty. They call themselves democrats, but they yearn for dictatorship. They call themselves revolutionaries, but they want the government to be omnipotent. They promise the blessings of the Garden of Eden, but they plan to transform the world into one gigantic post office with every man but one a subordinate clerk in a bureau.”
Red October continues next Sunday with “Socialism, Sweden and Scandinavia”.

Red October – 100 Years of Communism

George Noga
A brief history of communism (and its socialist cousins) as it turns 100 this month
Red October – 100 Years of Communism
By: George Noga – October 1, 2017
         This month marks the 100 year anniversary of the communist takeover of Russia. Throughout this centenary month MLLG chronicles the century of communism and its close cousins – socialism, utopianism and collectivism – in our series: Red October.
      From time immemorial, quixotic romantics have dreamt of paradise: Utopia, Elysium, Valhalla, Xanadu, Eden, Nirvana. In the end, all they had to show for their fantasies and delusions was a sea of blood and millions of broken lives. Despite its grisly record, collectivism still exerts a powerful emotional appeal on progressives, who remain slaves to Utopia. Our Red October series documents communism’s century of mental poison and human misery to bestir those beguiled by its siren song.
         America’s first settlements began with Utopian dreams. When colonists arrived in Jamestown everything went into a common store, severing all links between work and benefit. Within 6 months most died from starvation. When another 500 settlers arrived, 440 more died. When the Pilgrims arrived at Plymouth, the socialistic Mayflower Compact governed them; soon they were eating rats and most died. Like socialism everywhere (Venezuela today), there was starvation in the midst of plenty. Only when they rejected socialism and embraced property rights did the colonists prosper.
         A hundred years of communism has produced death and destruction on a massive scale. Soviet communism killed 50 million, not counting tens of millions in Gulags. Not to be outdone, Mao and the Chicoms killed 70 million. Pol Pot killed 6 million in tiny Cambodia. Then there is Laos, Cuba and North Korea. The toll in death, torture, misery, destruction and suffering is unparalleled in human history. It must be noted that even the reviled Nazis were socialists as Nazi is shorthand for the National Socialist Party. Fear not, the unreconstructed commies will get it right the next time.
         The evils of collectivism are on full display today in oil rich Venezuela – once the wealthiest country in South America. After 18 years of Chavez/Maduro style socialism people are starving. Medical care is unavailable; operating rooms are filthy; and people die for lack of antibiotics. Infant mortality is higher than in war-ravaged Syria as incubators are broken and there no longer is any baby formula. Shortages, including toilet paper, are endemic. Inflation is nearly 800% and the economy has contracted by one-third. People are dying daily in the streets while others are desperately fleeing.
      The gulf between the words and deeds of communism and all forms of collectivism is an unbridgeable abyss. They speak of comradeship, equality, brotherly love, peace, prosperity, progress and freedom. Their deeds result in brutal dictatorships, Gulags, world wars, police states, totalitarianism, economic stagnation, shortages and a general sense of torpor and malaise. They promise Utopia but deliver Venezuela. They want to be judged by their lofty intentions but they are damned by their actions.
        Communism and its collectivist cousins always fail because they are diametrically and fundamentally opposed to human nature – which is deeply ingrained and cannot be overrode. From each according to his ability; to each according to his needs abrogates human nature. Even people as altruistic, homogenous and devout as the Pilgrims chose to starve rather than to modify their humanity to conform to that deadly mantra.
       Collectivism sometimes may work for a family, clan or tribe where familial bonds (a key part of our human nature) override economic incentives. However, throughout human history, there is no example extant where socialism has worked for a group of more than 25 people. Judge collectivists by their actions – not by their words!
Our Red October series continues next Sunday with “A Tale of Six Islands”.