CaliToday (21/11/2025): Based on analysis by William Anderson (Mises Institute) Topic: Political Economy, History, Social Theory
In a biting analysis for the Mises Institute, author William Anderson exposes a truth that many modern intellectuals avoid: Socialism is not a viable economic model; it is a political strategy based on emotion and promises.
Despite a century of catastrophic empirical failures—from the Soviet Union to Venezuela—socialism is enjoying a resurgence in Western politics. How is this possible? The answer, Anderson suggests, lies in the fact that modern socialism has abandoned economic reality entirely in favor of moral posturing and electoral mechanics.
The Economic Verdict: Dead on Arrival
The article reminds us that the economic debate over socialism was settled decades ago. In 1920, Austrian economist Ludwig von Mises predicted that a socialist economy could not function because, without market prices, there is no way to calculate profit and loss or allocate resources efficiently.
History proved Mises right. Every attempt to implement these ideas—in the USSR, China, Cuba, and North Korea—resulted in stagnation and collapse.
By the late 1980s, even prominent left-wing intellectuals like Robert Heilbroner admitted defeat, acknowledging that "capitalism has been as unmistakable a success as socialism has been a failure."
The Modern Paradox: "Anti-Economics"
If the economic argument is lost, why is socialism rising in American universities and the Democratic Party? Anderson argues that today's proponents practice "anti-economics."
They do not attempt to explain how a socialist government would produce and distribute goods (because they can't). Instead, they focus on:
Ignoring Scarcity: Treating wealth as a bottomless pot that simply needs "fairer" distribution.
Moral Narratives: Framing capitalism not as a system of production, but as a source of sin and inequality.
Electoral Strategy: Groups like the Democratic Socialists of America (DSA) and publications like Jacobin openly state that their goal is not to prove socialism works, but to make it "seem plausible" enough to win elections.
As seen in cities like Seattle and New York, socialist candidates win by promising the impossible. When those promises fail, they simply blame "capitalist obstruction," keeping their moral purity intact.
"Contextual Redefinition": Spinning Misery into Virtue
One of the most dangerous tools of modern socialism, the author notes, is psychological. It is the ability to redefine failure as success depending on the political context.
Under Capitalism: Hard work is "exploitation" and poverty is a "crime."
Under Socialism: Forced labor is hailed as "noble sacrifice," and material deprivation is romanticized as "anti-consumerist purity."
This intellectual dishonesty allows the ideology to survive even when its subjects are starving.
The Inevitable Endgame
The article concludes with a grim warning. Socialism is excellent at campaigning, storytelling, and mobilizing the youth. However, it possesses zero capacity to manage a complex economy.
Once the rhetoric fades and these "planners" take power, the result is always the same:
Economic Collapse: The planners eventually "turn off the lights and lock the doors" in despair.
Predatory Taxation: To sustain the failing system, the state resorts to aggressive over-taxation (inflation and levies).
Systemic Corruption: In a society where law is replaced by political fiat, justice disappears. Bribery becomes the only way to get things done, and corruption effectively becomes legal for the ruling elite.