A former Sandinista supporter, Clifton Ross, loses faith in socialism as a result of seeing close up its failure in Venezuela:
I’d visited Cuba twice—in 1994 and again in 2010—and now, with my experience of Venezuela, I felt I’d seen the best socialism could offer. Not only was that offering pathetically meagre, but it had been disastrously destructive. It became increasingly clear to me that nothing that went under that rubric functioned nearly as well on any level as the system under which I had been fortunate enough to live in the US. Why then, did so many decent people, whose ethics and intelligence and good intentions I greatly respected, continue to insist that the capitalist system needed to be eliminated and replaced with what had historically proven to be the inferior system of socialism?
The strongest argument against state control of the means of production and distribution is that it simply didn’t—and doesn’t—work. The proof, as they say, is in the pudding—and in this case, there was no pudding at all. In my own lifetime, I’ve seen socialism fail in China, fail in the Soviet Union, fail in Eastern Europe, fail on the island of Cuba, and fail in Nicaragua under the Sandinistas. And now the world is watching it fail in Venezuela, where it burned through billions of petro-dollars of financing, only to leave the nation worse off than it was before. And still people like me had insisted on this supposed alternative to capitalism, stubbornly refusing to recognize that it is based on a faulty premise and a false epistemology.
As long ago as the early 1940s, F.A. Hayek had identified the impossibility of centralized social planning and its catastrophic consequences in his classic The Road to Serfdom. Hayek’s writings convinced the Hungarian economist, János Kornai, to dedicate an entire volume entitled The Socialist System to demonstrating the validity of his claims. The “synoptic delusion”—the belief that any small group of people could hold and manage all the information spread out over millions of actors in a market economy—Kornai argued, leads the nomenklatura to make disastrous decisions that disrupt production and distribution. Attempts to “correct” these errors only exacerbate the problems for the same reasons, leading to a whole series of disasters that result, at last, in a completely dysfunctional economy, and then gulags, torture chambers, and mass executions as the nomenklatura hunt for “saboteurs” and scapegoats.
The synoptic delusion—compounded by immense waste, runaway corruption, and populist authoritarianism—is what led to the mayhem engulfing Venezuela today, just as it explains why socialism is no longer a viable ideology to anyone but the kind of true believer I used to be. For such people, utopian ideologies might bring happiness into their own lives, and even into the lives of those around them who also delight in their dreams and fantasies. But when they gain control over nations and peoples, their harmless dreams become the nightmares of multitudes.
Capitalism, meanwhile, has dramatically raised the standard of living wherever it has been allowed to arise over the past two centuries. It is not, however, anything like a perfect or flawless system. Globalization has left many behind, even if their lives are far better than those of their ancestors just two hundred years ago, and vast wealth creation has produced vast inequalities which have, in turn, bred resentment. Here in California, the city of Los Angeles, “with a population of four million, has 53,000 homeless.” Foreign policy misadventures and the economic crash of 2008 opened the door to demagogues of the Left and the Right eager to exploit people’s hopes and fears so that they could offer themselves as the solution their troubled nations sought to the dystopian woe into which liberal societies had fallen. In his fascinating recent jeremiad Why Liberalism Failed, Patrick Deneen itemizes liberal democracy’s many shortcomings and, whether or not one accepts his stark prognosis, his criticisms merit careful thought and attention.
Nevertheless, markets do work for the majority, and so does liberal democracy, as dysfunctional as it often is. That is because capitalism provides the space for ingenuity and innovation, while liberal democracy provides room for free inquiry and self-correction. Progress and reform can seem maddeningly sluggish under such circumstances, particularly when attempting to redress grave injustice or to meet slow-moving existential threats like climate change. But I have learned to be wary of those who insist that the perfect must be the enemy of the good, and who appeal to our impatience with extravagant promises of utopia. If, as Deneen contends, liberalism has become a victim of its own success, it should be noted that socialism has no successes to which it can fall victim. Liberalism’s foundations may be capable of being shored up, but socialism is built on sand, and from sand. Failures, most sensible people realize, should be abandoned.
Go here to read the rest. The exploded idea of Socialism is a tribute to the ability of so many to overlook facts in the search for utopia, a search that is always pernicious this side of the grave.