Many people are telling us that socialism is the solution for society’s hardships and inequalities, i.e., its lack of “fairness.” These problems need to be solved but socialism is not the answer. Socialism always fails for two fundamental reasons.
The first is that socialists assume that money is always available for spending. This assumption is made because socialists do not understand where money of value comes from. If socialists were capable of thinking about this, they would be surprised to discover that the source of the creation of money of value is private businesses that make a profit.
Socialists treat businesses as an enemy to be harassed, punished and made unprofitable. This is a stupid thing to do because diminishing businesses eventually reduces the amount of money of value that a government and its people have available to spend.
The second reason that socialism fails is because socialism’s main emphasis is to spend money to address problems. Money gets spent but the problems still persist and even get worse. Spending becomes so huge that the government must resort to massive borrowing. Debt escalates relentlessly. Eventually, the government can’t borrow any more and they don’t have sufficient business activity to pay the money back. The economy collapses. The poor become worse off than ever.
There are many examples of socialism’s failures. Venezuela is the latest example. Today, most Venezuelans live in dire poverty and face massive hardships. Meanwhile, the socialist elite and their cronies live the good life. The people want a change but the socialists will not give up power. The people have lost their liberty and freedom.
If you want to see what socialism will do for you, just take a close look at Venezuela. This is the economy Hillary Clinton is offering to the United States.