Socialism’s Freebies: Don’t Buy Them

As quick review, a nation’s government is most distinguished how the economy and property ownership works. America encourages private business ownership and the acquisition of private property (your own home, for example). This is all part of America’s vibrant “market-based economy.”

In contrast, a socialist economy determines how and where the citizens’ money is spent. Enticed by "free stuff", the government soon “redistributes” the income they produce and gives it to others. This never ends well - and why would it - or why should it? People just don’t work as hard when others reap the benefits of their labors.

So many socialist countries have had a bitter experience – and today's America needs to remember that history. We need look no further than the daily news for a real-time example.

Venezuela in South America has one of the world’s richest oil reserves, but its now-impoverished people are fleeing the country. Its president Nicolas Maduro (in office since 2013) is not poor, of course. That is because he controls the money and who gets it. Leaders in socialist countries don’t go without.

Meanwhile, his people pick through garbage for food. They stand in long lines for hours just to shop for basics like toilet paper and food – if the stores haven’t run out by the time they finally reach the door. Because inflation has hit one million percent, their money is almost worthless. It takes a huge stack of bills just to buy a chicken for a family meal.

Fifteen years ago, visiting Venezuelans told me about government confiscation of private business and private property. People were frightened and selling both as fast as they were able. Ten years after that, a Venezuelan doctor told me of shocking shortages of food and goods. They were, by then, keeping newborns in dresser drawers because infant beds were non-existent. Furthermore, people were destroying their own furniture to use for fuel for heating and cooking.

Now Venezuela is in total predictable meltdown. Food lines, riots, contested elections and imprisonment and the killing of political enemies are the norm. There is insufficient water and power blackouts. Reportedly, 80% of children under five years of age are starving to death. The United States has shipped food and other necessities to the country, yet President Maduro refuses to let it reach the people.

In short, a few politicians co-opting and manipulating everyone’s income makes their lives easy, while everyone else becomes dis-incentivized, disillusioned, desperate – and as we see in Venezuela - poorer. Likewise, free stuff promised today by our own politicians isn’t free. Someone has to produce, pay for and ship the goods and services that other people receive and use. It doesn't take a rocket scientist to figure that out.