Originally posted by: PJABBER
Originally posted by: bamacre
Are you implying that Communism could have worked, successfully, had it not been for our intervention?
if you address the question to me, I would say there are innate and fatal weaknesses in state controlled economies and political systems. These "centrally" planned and forced systems are inevitably resisted and eventually fail from both internal and external factors.
It is hard to think of any totalitarian economic and political system that lasted all that long, not that democratic capitalism has such a long history itself. Of course, you can have a succession of despots, but it is usually a self-defeating progression that implodes or is driven into failure. And you can have democracies which are weakened by self doubt destroyed by totalitarianism's siren call.
The economic and political democratic capitalist system is likely the closest that anyone has come up with to satisfy the economic and aspirational needs of humanity. It is fragile in that the opportunities and freedoms it offers must be won again and again.
The nations which have chosen this path have a responsibility to more than their own citizens. They have an obligation to cry out against all of the alternatives which can only offer more oppression. Perhaps that is why so many around the world are wondering why the United States is now straying away from that which made them exceptional and inspirational.
Yeah, the Friedman market reforms have done so much for the economic aspirations of the average Russian. I mean, only
54% of Russian households with one child live in poverty. That includes 34% of households where someone has a university degree. The Gini coefficient went from .29 when the USSR collapsed to .41 in 2006. Another stellar accomplishment. Things were so bad after the collapse that in 1996 the Russians came fairly close to electing a Communist president.
Then there's this little jewel from the
Washington Post.
Supporters say Putin and his circle of advisers simply cannot yet trust the Russian people to make correct political choices. "The Kremlin is absolutely not ready to give power to any of the opposition parties," said Sergei Markov, a political consultant who works with the Putin administration. "They think if Russian people had absolute freedom of elections they would vote for a combination of nationalists and Communists."
Yeah, looks like things are going swimmingly well for people in Russia who would vote for Nationalists (that's National Bolshevik Party) and Communists.
Freedom has largely been reversing for the worst in Russia. The articles about it are relatively easy to find, places like
here. Friedman's shock treatments
were disasterous for Russia.
But hey, why shouldn't we trust Friedman? His favorite example of Capitalism was the
positive noninterventionism that exists in Hong Kong. Who could blame him? Low unemployment, no minimum wage, very low taxation, good GDP growth, consistently ranked the freest economy in the world, so good times for all, right?
Well, except a few minor issues. With economic freedom came great wealth disparity. Their Gini index in 2001 was 52.3 (and has been steadily increasing), even higher than the US in 2007. Oh yeah, and
one-sixth of Hong Kong's population lives in poverty. It doesn't help that over the last 20 years that high-earners income jumped 34.7% compared to low-earners which saw their wages fall 3.3%. The free economy hasn't done much for the working poor
at all. On top of this, the average work week in Hong Kong is 47 hours. So what happens when you have a large wealth disparity and force the poor, middle-class, and rich to compete for limited resources, such as housing in Hong Kong? Easy enough to predict,
48.8% of the Hong Kong population lives in public housing or subsidized housing, unable to afford a lease of their own. A real laissez-faire utopia. For their troubles, Hong Kong only gets a 5 on Freedom House's Political Rights index and is listed as "partly free." I wish Friedman cared more about the human condition than nominal GDP growth.