I was listening to a podcast on NPR recently and heard a show that was defending socialism. I know that my conservative friends will probably disown me for being so open-minded. I would probably be classified as center-right. You know, that perfect position where you literally piss off and annoy both sides of the political debate. Anyway, the hosts of the show were interviewing one of the rare economists that actually endorsed socialism. A liberal economist probably isn’t that rare considering all the liberal schools that there are. Although most economists are pretty conservative. There was a quote by Freiderick Hayek that said, “if socialists understood economics, they wouldn’t be socialists.”
The show went on to describe the natural cycle of booms and busts that occur within the capitalist system as being an actual flaw. The socialist’s solution to this flaw was to artificially inject money into the economy to stabilize it during recessions. The few people who have common sense and a head for business will see the immediate flaw with this theory. Then again the difference between common sense and booksmarts is real.
Notice the natural booms and busts occur every seven years or so. This is not by accident as the number seven is a divine number. I would venture to say that the natural business cycle was God’s way of keeping the economy in balance. The divine force is likely the invisible hand of economics that was described by Adam Smith that guided the economy. The free market if left alone can meet the needs of every member of society. The socialists want to create an economy that works for everyone and if they actually understood economics they would realize they already had it.
Maybe since most liberal socialists are secular, they lean more towards big government because they lost faith in their Creator and the free market?
Those who endorse central banking will tell you that during the 19th century, when the United States had a freer market, there were more booms and busts. Maybe that was a good thing since an educated person who knew how to time the market would come out ahead than those that aren’t as educated. The busts would also lead more people to rely on their communities more until the economy got going again.
Those that endorse central banking its offspring, the Internal Revenue Service, may have lost faith in their Creator and natural community and turned to government to bail them out of fiscal jams.
An interesting fun fact to close out on is the real reason that the Titanic sunk. It was widely known back then that there were a few men on board the ship who opposed the creation of the federal reserve. You can do your own research to verify this. Sometimes just understanding history and how the world works is all the confirmation that you need to know something is likely true.
One final thought, the natural booms and busts are not a flaw within capitalism. It is the natural business cycle that occurs. Life is naturally up and down. Someone once said that the only thing that travels in a straight line is a dead man.