Before the excerpt, here are some short videos with the author, who happens to be the son of MADALYN MURRAY O’HAIR:
Here is an excellent excerpt from a book a friend got me reading:
William J. Murray, Utopian Road to Hell: Enslaving America and the World With Central Planning (Washington, D.C.: WND Books, 2016), 112-119.
…As Hayek noted back in 1944: “There can be no doubt that planning necessarily involves deliberate discrimination between particular needs of different people, and allowing one man to do what another must be prevented from doing. It must lay down by a legal rule how well off particular people shall be and what different people are to be allowed to have and do.”
From these examples you can see that the totalitarian nature of government does not suddenly appear in a democracy. First there must be social acceptance among the elite, who then persuade the rest of society to go along with them. Hayek noted this progress in his 1944 essay “The Intellectuals and Socialism”:
The political development of the Western World during the last hundred years furnishes the clearest demonstration. Socialism has never and nowhere been at first a working-class movement. It is by no means an obvious remedy for the obvious evil which the interests of that class will necessarily demand. It is a construction of theorists, deriving from certain tendencies of abstract thought with which for a long time only the intellectuals were familiar; and it required long efforts by the intellectuals before the working classes could be persuaded to adopt it as their program.
TYRANNY THROUGH THE BALLOT BOX
Hayek reminded us that socialist tyrannies can come through legal means in the democratic process just as easily as through abrupt totalitarianism. Adolf Hitler, for example, was elected to office, unlike Cambodia’s Pol Pot, who seized power. Thus, democracies aren’t necessarily a protection against utopian central planners taking away the liberties of individuals.
Quite often, democratically elected representatives can delegate authority to bureaucrats who have the authority to impose the draconian policies on an unwilling populace. Hayek wrote, “By giving the government unlimited powers, the most arbitrary rule can be made legal; and in this way a democracy may set up the most complete despotism imaginable.”
Hayek isn’t the only philosopher or economist to warn about the dangers of tyranny being imposed through the democratic process. Alexis de Tocqueville, the famous French philosopher who visited the United States in the mid-1800s to study the democratic system and culture, warned that democratic systems could become despotic.
In Democracy in America, in his classic chapter “What Sort of Despotism Democratic Nations Have to Fear” (volume 2), Tocqueville accurately predicted the rise of bureaucratic czars and webs of legislation that would stifle human freedom and productivity. It is as if he were writing prophetically about the Environmental Protection Agency, which has imposed so many irrational rules on industry that our nation is in danger of losing its ability to compete in many industries, such as energy.
Tocqueville compared the ancient tyrannies of the past and noted that Roman emperors had tremendous power over the lives of their subjects who were scattered throughout the world, but that the “details of social life and private occupations lay for the most part beyond his control.” However, Tocqueville warned:
It would seem that if despotism were to be established amongst the democratic nations of our days, it might assume a different character; it would be more extensive and more mild; it would degrade men without tormenting them. I do not question, that in an age of instruction and equality like our own, sovereigns might more easily succeed in collecting all political power into their own hands, and might interfere more habitually and decidedly within the circle of private interests, than any sovereign of antiquity could ever do. But this same principle of equality which facilitates despotism, tempers its rigour.
He continued: “I think then that the species of oppression by which democratic nations are menaced is unlike anything which ever before existed in the world: our contemporaries will find no prototype of it in their memories. I am trying myself to choose an expression which will accurately convey the whole of the idea I have formed of it, but in vain; the old words ‘despotism’ and ‘tyranny’ are inappropriate: the thing itself is new; and since I cannot name it, I must attempt to define it.”
According to Tocqueville, this kind of democratic oppression is
absolute, minute, regular, provident, and mild. It would be like the authority of a parent, if, like that authority, its object was to prepare men for manhood; but it seeks on the contrary to keep them in perpetual childhood: it is well content that the people should rejoice, provided they think of nothing but rejoicing. For their happiness such a government willingly labors, but it chooses to be the sole agent and the only arbiter of that happiness: it provides for their security, foresees and supplies their necessities, facilitates their pleasures, manages their principal concerns, directs their industry, regulates the descent of property, and subdivides their inheritances—what remains, but to spare them all the care of thinking and all the trouble of living? Thus it every day renders the exercise of the free agency of man less useful and less frequent; it circumscribes the will within a narrower range, and gradually robs a man of all the uses of himself.
America’s schoolchildren today are educated under policies of “no tolerance” that demand they become automatons. Showing various emotions, such as anger or love, can lead to expulsion from school, or worse. Children have been arrested for pointing a finger and saying, “Bang!” and suspended from classes for sharing a hug in the hallways. Currently, some high school students, thanks to legislation promoted by First Lady Michelle Obama, are not allowed to eat more than 750 calories for lunch, even boys on the football team, who require upwards of 3,000 calories a day. This is exactly the type of democratic oppression that both Tocqueville and Hayek discussed, and it continues to spread in Western nations.
Tocqueville described what happens to citizens when they’re slowly enslaved by an all-powerful central government:
It [the statist] covers the surface of society with a network of small complicated rules, minute and uniform, through which the most original minds and the most energetic characters cannot penetrate, to rise above the crowd. The will of man is not shattered, but softened, bent, and guided: men are seldom forced by it to act, but they are constantly restrained from acting: such a power does not destroy, but it prevents existence; it does not tyrannize, but it compresses, enervates, extinguishes, and stupefies a people, till each nation is reduced to be nothing better than a flock of timid and industrious animals, of which the government is the shepherd.
I have always thought that servitude of the regular, quiet, and gentle kind which I have just described, might be combined more easily than is commonly believed with some of the outward forms of freedom; and that it might even establish itself under the wing of the sovereignty of the people.
Like a frog placed in cold water, and then the temperature is increased slowly until the frog is cooked, the populace do not notice the melting away of individual liberty. For instance, the American people were placed in the cold water of a “small” income tax imposed by President Woodrow Wilson that has become today almost total control of the economy by the central government. Hayek and Tocqueville both described accurately the destruction of individual liberty, not only through absolute dictatorships, but by democratic totalitarianism as well.
THE END OF TRUTH
Hayek devoted a full chapter in The Road to Serfdom to the function of propaganda in a socialist welfare state. He pointed out that in such a totalitarian system, it isn’t enough just to force everyone to work for the end desired; they must also be convinced that those ends are actually theirs and that they are obtainable. Thus, the propagandist must be able to brainwash the populace into believing that the central planners are benevolent and that their goals are actually those of the people.
As Hayek observed, “The skilful propagandist then has power to mold their minds in any direction he chooses, and even the most intelligent and independent people cannot entirely escape that influence if they are long isolated from all other sources of information.”
According to Hayek, the moral consequence of totalitarian propaganda is that it undermines the sense of and respect for the truth. In fact, the totalitarian propagandist isn’t concerned with the truth. He only wants to convince the populace that the rulers are acting in the best interest of the enslaved citizens, to achieve their utopian dreams. Lying becomes the standard of utopian governments.
FREDERIC BASTIAT’S WARNINGS AGAINST SOCIALIST UTOPIANISM
French economist and politician Frederic Bastiat’s writings aren’t well known in the United States these days, but they certainly should be. Bastiat was the deputy to the Legislative Assembly in France during the mid-1800s, when that nation was rapidly turning into a socialist state.
Alarmed by the trend, Bastiat spent his time and energies debunking all of the excuses that were used to impose statism on the French people. His classic, The Law, was published in 1850 and followed some of the similar lines of logic as did Hayek’s later work. It was his desire to convince his fellow Frenchmen that socialism would inevitably lead to slavery and Communism. Regrettably, his warnings were mostly ignored, but his prophetic writings against socialism are very timely, as our own nation’s leaders play with totalitarian ideas about how to turn us into dependent serfs.
Bastiat began The Law by clearly asserting that God gave us life, including physical, intellectual, and moral life. In addition, God gave each person the ability to use resources to create value and to own property. He further asserted, “Each of us has a natural right—from God—to defend his person, his liberty, and his property. These are the three basic requirements of life, and the preservation of any one of them is completely dependent upon the preservation of the other two. For what are our faculties but the extension of our individuality? And what is property but an extension of our faculties?”
He defined law as the “organization of the natural right of lawful defense. It is the substitution of a common force for individual forces. And this common force is to do only what the individual forces have a natural and lawful right to do: to protect persons, liberties, and properties; to maintain the right of each, and to cause justice to reign over us all.”
But what happens when the state uses the law to destroy freedom? It is engaging in what Bastiat rightly called “lawful plunder.”
When a state legalizes plunder, wrote Bastiat, one of the first effects is to erase “from everyone’s conscience the distinction between justice and injustice. No society can exist unless the laws are respected to a certain degree. The safest way to make laws respected is to make them respectable. When law and morality contradict each other, the citizen has the cruel alternative of either losing his moral sense or losing his respect for the law.”
When legalized plunder becomes commonplace in a socialist government, noted Bastiat, every group in society will want to get their share of it. Everyone will begin plundering from everyone else: “Under the pretense of organization, regulation, protection, or encouragement, the law takes property from one person and gives it to another; the law takes the wealth of all and gives it to a few, whether farmers, manufacturers, ship owners, artists, or comedians. Under these circumstances, then certainly every class will aspire to grasp the law, and logically so.”
Bastiat clearly shows us how we can determine if a law is actually legalized plunder. His definition perfectly fits much of the transfer of wealth that occurs in Western nations today, including in the United States.
See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime.
Then abolish this law without delay, for it is not only an evil itself, but also it is a fertile source for further evils because it invites reprisals. If such a law—which may be an isolated case—is not abolished immediately, it will spread, multiply, and develop into a system.
Sadly, when Woodrow Wilson introduced the income tax, the people had the opportunity to stop just such an evil, but out of the promise that it would benefit the many at the expense of the few rich of the time, a constitutional amendment was approved to allow the theft of the income of those who produce value through labor or investment. The result is massive government today, which takes from virtually everyone’s earnings to some degree.
Bastiat continued: “Socialists desire to practice legal plunder, not illegal plunder. Socialists, like all other monopolists, desire to make the law their own weapon. And when once the law is on the side of socialism, how can it be used against socialism? For when plunder is abetted by the law, it does not fear your courts, your gendarmes, and your prisons. Rather, it may call upon them for help.”
Augustine of Hippo made a similar statement regarding government plundering in the fifth century:
Justice being taken away, then, what are kingdoms but great robberies? For what are robberies themselves, but little kingdoms? The band itself is made up of men; it is ruled by the authority of a prince, it is knit together by the pact of the confederacy; the booty is divided by the law agreed on. If, by the admittance of abandoned men, this evil increases to such a degree that it holds places, fixes abodes, takes possession of cities, and subdues peoples, it assumes the more plainly the name of a kingdom, because the reality is now manifestly conferred on it, not by the removal of covetousness, but by the addition of impunity.
Following a road to serfdom as described by Hayek inevitably leads to what might be called a benign authoritarian system, where everyone is brainwashed into docile obedience, or to a brutal dictatorship that includes a police state, a reign of terror, and gulags to keep the populace under control. Authors George Orwell and Aldous Huxley have described these two kinds of societies, but the result is the same in both: freedom of the individual is destroyed and the state rules from cradle to the grave.
Dennis Prager first read from an AP story about Jamie Foxx visiting the death hole known as Venezuela (see the Free Republic post). Later in the show he actually gets a call from Caracas, Venezuela. I teared up a bit during the call, as did Prager apparently. Good stuff Maynard!
This book is pretty amazing in that it defines the parameters that essentially make up a dictatorship. This will be especially helpful to all the Hollywood types and hipster douche-bags that like to support regimes in places like Venezuela or Cuba as good for it’s people. The book is a bit dated, but one of AYITTEY’S best.
“A political system based on force, oppression, changing people’s votes, killing, closure, arresting and using Stalinist and medieval torture, creating repression, censorship of newspapers, interruption of the means of mass communications, jailing the enlightened and the elite of society for false reasons, and forcing them to make false confessions in jail, is condemned and illegitimate.”
—Grand Ayatollah Hossein Ali Montazeri
THE TERMS “DESPOT,” “AUTOCRAT,” “TYRANT,” AND “DICTATOR” are used interchangeably throughout this book to refer to a ruler with absolute or unlimited power, but there are subtle differences. A despot may be more reminiscent of medieval monarchs who were convinced that they were endowed with the divine right to rule over their people. In other words, despotism is often infused with a dose of narcissism. An autocrat may have no such grand delusions about himself, but he still wields enormous power. A tyrant is a ruler who exercises power oppressively and harshly. The word dictator may be more applicable to a ruler with a military background who barks orders, issues diktats or edicts, and expects full compliance and obedience. It is possible to make other distinctions, such as “benign” or “benevolent” dictatorship, but this book does not do so.
Modern dictators come in different shades, races, skin colors, and religions, and they profess various ideologies. However, in general, they share common characteristics and idiosyncrasies. They are rulers who are neither chosen by their people nor represent their people.
[p.8>]The political watchdog Freedom House found in 2011 that 60 of the world’s 194 countries are “partly free” and 47 are considered “not free.” That means that the populations of roughly 55 percent of the world’s nations are oppressed.
The continent of Africa has the dubious distinction of harboring more dictators per capita than any other region in the world. Teeming with tyrants, it is the most unfree continent in the world. The usual suspects received the lowest possible ratings for both political rights and civil liberties: Myanmar (Burma), Equatorial Guinea, Eritrea, Libya, North Korea, Somalia, Sudan, Tibet, Turkmenistan, and Uzbekistan. But China, Egypt, Iran, Russia, and Venezuela are cited for having stepped up repressive measures with greater brazenness.
Despots are constantly refining their tactics and learning new tricks from each other in their efforts to control pro-democracy forces. To maintain their iron grip on power, despots invent new “enemies.” This enables them to mobilize their security forces, keep their countries on a war footing, and suspend civil liberties. These enemies are often foreign, but they might also come from within, in which case they are labeled “neo-colonial stooges,” “imperialist lackeys,” or “CIA agents.”
In some countries, despots justify their repressive rule by rallying the people around some nationalistic cause or some farcical “revolution.” In Sudan, for example, Lieutenant-General Omar al-Bashir proclaimed an “Islamic Revolution” that will deliver the Sudanese from abject poverty and squalor by tapping the country’s oil and mineral riches to create a model economy.
The despots have grown bolder as the resistance against them appears to be collapsing. The weakness of domestic opposition and inadequate support from democratic countries for that opposition, as well as fatigue, appear to be contributing factors. Unless the resistance—both domestic and international—is strengthened and democratic countries join forces, the despots will continue to gain momentum and win.
THE GALAXY OF DESPOTS: THE WORLD’S MOST ODIOUS AND DESPICABLE DICTATORS
On April 8, 2010, a coalition of opposition groups ousted Kyrgystan’s dictator, President Kurmanbek Bakiyev, from power in Bishkek. A continent away, Africans like myself cheered: “One coconut down, 54 more to harvest!” Then, on January 14, 2011, came a loud thud! Another co- [p.9>] conut down, this one in Tunisia, inspiring others to shake coconut trees vigorously. Then another in Egypt on February 11, 2011, with more to follow.
The West was caught completely off guard by the upheavals in North Africa. In fact, the West—or the international community—had lost the will to fight dictators, preferring “dialogue,” “partnership,” or “rapprochement” with such hideous tyrants as Muammar Qaddafi in Libya. Pundits intoned that “these people preferred strong men.” But this author foresaw these upheavals. Despotism has never been acceptable to “these people,” despite the veneer of “stability” despotism projects. There is one insidious and odious aspect of despotism that is particularly infuriating and galling—the political and cultural betrayal. As in Kyrgyzstan, many despots began their careers as erstwhile “freedom fighters,” who were supposed to have liberated their people from repressive rule. Back in March 2005, Bakiyev rode the crest of the Tulip Revolution to oust another dictator, President Askar Akayev. So familiar are Africans with this phenomenon that, it may be recalled, we have this saying: “We struggle very hard to remove one cockroach from power and the next rat comes to do the same thing. Haba! [Darn!].”
In an article published in Foreign Policy, I denounced these revolutionary-turned-tyrant “crocodile liberators” who were joining the ranks of other fine specimens: the Swiss bank socialists, who socialize economic losses and stash personal gains abroad; the quack revolutionaries, who betray the ideals that brought them to power; and the briefcase bandits, who simply pillage and steal. I drew up a list of the “Worst of the Worst” dictators and warned of their imminent demise. Here is my list, based on these insidious, ignoble qualities of perfidy, cultural betrayal, and economic devastation. These criteria are decidedly non-Western.
THE LIST: THE MOST ODIOUS AND DESPICABLE
Omar al-Bashir of Sudan: A megalomaniac zealot who has quashed all opposition, Bashir is responsible for the deaths of more than 4 million Sudanese and has been indicted by the International Criminal Court for war crimes. His Arab militia, the Janjaweed, may have halted its massacres in Darfur but it continues to traffic black Sudanese as slaves. Bashir himself [p.10>] has been accused of having several Dinka and Nuer slaves, one of whom escaped in 1995.
Years in power: 21
Kim Jong Il of North Korea: A personality-cult-cultivating isolationist with a taste for fine French cognac, Kim has pauperized his people, allowed famine to run rampant, and sent hundreds of thousands to prison camps (where as many as 200,000 languish today)—all while spending his country’s precious few resources on creating a nuclear program. As he succeeded his father, Kim Il Sung, Kim Jong Il is being succeeded by his son, Kim Jong Eun. The country is a “family business and property.”
Years in power: 16
Robert Mugabe of Zimbabwe: A liberation “hero” in the struggle for independence who has since transformed himself into a murderous despot, Mugabe has arrested and tortured the opposition, squeezed his economy into astounding negative growth and billion-percent inflation, and funneled off a juicy cut for himself using currency manipulation and offshore accounts.
Years in power: 29
Than Shwe of Myanmar (Burma): A heartless military coconut-head whose sole consuming preoccupation is power, Than Shwe has decimated the opposition with arrests and detentions, denied humanitarian aid to his people after the devastating Cyclone Nargis in 2008, and thrived off a threatened black-market economy of natural gas exports. This vainglorious general, bubbling with swagger, sports a uniform festooned with self-awarded medals, but he is too cowardly to face an untampered-with ballot box.
Years in power: 18
Mahmoud Ahmadinejad of Iran: Inflammatory, obstinate, and a traitor to the liberation philosophy of the Islamic Revolution, Ahmadinejad has pursued a nuclear program in defiance of international law and the West. Responsible for countless injustices during his five years in power, the president’s latest egregious offense was leading his paramilitary [p.11>] goons, the Basij, toward the violent repression of protests after the June 2009 disputed presidential election, which many believe he lost.
Years in power: 5
Meles Zenawi of Ethiopia: A “rat” worse than the “cockroach” (former Marxist dictator Mengistu Haile Mariam) he ousted, Zenawi has clamped down on the opposition, stifled all dissent, and rigged elections. After he stole the May 2005 election, his security thugs opened fire on peaceful demonstrators, killing more than 200 of them, and jailed more than 1,000 opposition leaders and supporters. Like a true Marxist revolutionary, Zenawi has stashed millions in foreign banks and acquired mansions in Maryland and London in his wife’s name, according to the opposition—even as his barbaric regime collects a whopping US$1 billion in foreign aid each year. He won 99.6 per cent of the vote in the May 2010 election—just shy of the 100 percent Saddam Hussein won in a 2002 referendum for another seven-year term.
Years in power: 19
Isaiah Afwerki of Eritrea: Another crocodile liberator, Afwerki has turned his country into a national prison in which independent media are shut down, elections are categorically rejected, military service is mandatory, and the government would rather support Somali militants than its own people.
Years in power: 17
Hu Jintao of China: A chameleon despot who beguiles foreign investors with a smile and a bow but ruthlessly crushes any political dissent with brutal abandon, Hu has an iron grip on Tibet and is now seeking what can only be described as new colonies in Africa from which to extract the natural resources his growing economy craves and in which to resettle surplus Chinese population.
Years in power: 7
Muammar al-Qaddafi of Libya: An eccentric megalomaniac infamous for his indecipherably flamboyant speeches and equally erratic politics, Qaddafi today runs a police state based on his version of Mao’s Red Book—the Green Book—which [p.12>]includes a solution to “the problem of democracy.” Under siege by rebels, he vowed to crush “the rats and traitors.” After they seized his compound on August 24, the rebels vowed to smoke out the rat from the labyrinth of tunnels beneath the compound. So who’s the real rat?
Years in power: 42
Hugo Chavez of Venezuela: The quack leader of the Bolivarian Revolution, Chavez promotes a doctrine of participatory democracy in which he is the sole participant, having jailed opposition leaders, extended term limits indefinitely, and closed independent media outlets. He has vowed to rule till 2021.
Years in power: 10
Gurbanguly Berdymukhammedov of Turkmenistan: Succeeding the eccentric tyrant Saparmurat Niyazov (who even renamed the months of the year after himself and his family), this obscure dentist has continued his late predecessor’s repressive policies, explaining that, after all, he has an “uncanny resemblance to Niyazov.”
Years in power: 4
Idris Deby of Chad: Having led a rebel insurgency against former dictator Hissene Habre, today Deby faces a rebel insurgency led by his own brother. Deby has drained social spending accounts to equip the military, co-opted opposition leaders, and is now building a moat around the capital, N’Djamena, to repel would-be insurgents.
Years in power: 20
Teodoro Obiang Nguema Mbasogo of Equatorial Guinea: Obiang and his family literally own the economy in one of the world’s most unequal countries; the masses are left in desperate poverty in a country where oil wealth yields a GDP per capita that should be on a par with many European states. (How much oil revenue the country earns is a “state secret.”) Obiang is a vicious despot who tolerates no dissent and has amassed a fortune exceeding US$600 million. When he accused his government of corruption, incompetence, and poor leadership, the entire government resigned in protest in [p.13>] 2006. He became the chairman of the African Union in 2011.
Imagine.
Years in power: 31
Yahya Jammeh of Gambia: An eccentric military buffoon who has vowed to rule for 40 years and claims to have discovered the cure for HIV/AIDS, Jammeh insists on being addressed as “His Excellency President Professor Dr. Al-Haji Yahya Abdul-Azziz Jemus Junkung Jammeh.” He claims he has mystical powers and will turn Gambia into an oil-producing nation; no luck yet. He has threatened to behead gays. He is terrified of witches and evil sorcerers, who, he claims, are harming his country. To root out witches, villagers at Jambur were rounded up and forced to drink a foul-smelling potion in 2009. Six people later died.
Years in power: 16
Blaise Compaoré of Burkina Faso: A tin-pot despot with no vision and no agenda save perpetuating himself in power by liquidating all political opponents and stifling dissent, Compaoré rose to power after murdering his predecessor, Thomas Sankara, in a 1987 coup. He dishonors the name of his own country, Burkina Faso, which in the Dioula language means “men of integrity.”
Years in power: 23
Bashar al-Assad of Syria: A pretentious despot trying to fit into his father’s shoes, which are too big for him, Assad has squandered billions on foreign misadventures in such places as Lebanon and Iraq. After neglecting the needs of his people, they rose up against him in May 2011. But he used tanks and his extensive security apparatus to crush them and maintain his tight grip on power.
Years in power: 10
Islam Karimov of Uzbekistan: A ruthless thug since Soviet times, Karimov has banned opposition parties, tossed as many as 6,500 political prisoners into jail, and labels anyone who challenges his iron grip on power as an “Islamic terrorist.” What does he do with “terrorists” once they are in his hands? Torture them: Karimov’s regime earned notoriety for boiling[p.14>]two people alive and torturing many others. Outside the prisons, the president’s troops are equally indiscriminate, massacring hundreds of peaceful demonstrators in 2005 after a minor uprising in the city of Andijan.
Years in power: 20
Yoweri Museveni of Uganda: After leading a rebel insurgency that took power in 1986, Museveni declared, “No African head of state should be in power for more than 10 years.” He is still in power, winning one coconut election after another. Political parties can be formed legally, but a political rally of more than seven people is illegal.
Years in power: 26
Paul Kagame of Rwanda: A true liberator who saved the Tutsis from complete extermination in 1994, Kagame now practices the same ethnic apartheid he sought to end. His Rwanda Patriotic Front dominates all levers of power: the security forces, the civil service, the judiciary, banks, universities, and state-owned corporations. Those who challenge him are accused of being “hatemongers” or “divisionists” and are arrested. Such was the case with opposition leaders who were jailed days before the August 2003 election. A similar campaign of vilification was waged against the opposition in the run-up to the August 2010 election.
Years in power: 16
Raul Castro of Cuba: Afflicted with intellectual astigmatism, Castro is pitifully unaware of the fact that the revolution he leads is obsolete, an abysmal failure, and totally irrelevant to the aspirations of the Cuban people. He blames the failure of the “revolution” on “foreign conspiracies,” which he then uses to justify even more brutal clampdowns that lead to more failures. He operates from the offensive notion that the entire Cuban economy belongs to the Castro family alone.
Years in power: 2
Alexander Lukashenko of Belarus: An autocrat and former collective farm chairman, Lukashenko maintains an iron grip on his country, monitoring opposition movements with a secret police distastefully called the KGB. His brutal style of [p.15>]governance has earned him the title “Europe’s last dictator”; he even gave safe haven to Kyrgyzstan’s toppled leader during the uprising in that country in the spring of 2010.
Years in power: 16
Paul Biya of Cameroon: A suave bandit who has reportedly amassed a personal fortune of more than US$200 million and the mansions to go with it, Biya has beaten the opposition into complete submission. Not that he’s worried about elections—he has rigged the term-limit laws twice to make sure the party doesn’t end any time soon.
Years in power: 28
The list, of course, is not exhaustive or static; it keeps evolving.
DESPOTIC REGIMES AROUND THE WORLD
An analysis or a discussion of despotic regimes around the world would involve a tedious repetition of brutal acts of repression, injustices, indignities, and grotesque human rights violations. Moreover, despite regime differences, the modus operandi of one despot is strikingly similar to that of all the others. Most despotic regimes are characterized by the following:
Unyielding grip on power: Elections, if any, are farcical and are always won by the despot.
Political repression: Opposition parties are banned or afforded little political space to operate; key opposition leaders are arrested, intimidated, hounded, or even killed.
Intellectual repression: Censorship may be imposed; journalists, editors, and writers are harassed, intimidated, jailed, or killed; newspapers and radio and television stations that are critical of government policies are shut down.
Brutal tactics: Street protests are disrupted with batons, water cannons, tear gas, and even gunfire.
Flagrant violations of human rights: Opponents of the regime are detained without trial; disappearances and murder are common; freedom of expression, movement, and assembly are nonexistent.
[p.16>] Rather than discuss these traits for each despotic regime, I will just list the countries where such practices are most prevalent:
Africa: Algeria, Eritrea, Ethiopia, Sudan, Uganda, and Zimbabwe
Asia: Myanmar (Burma), Cambodia, and Vietnam
Central Asia: Kazakhstan, Tajikistan, Turkmenistan, and Uzbekistan
Eastern Europe: Belarus
Latin America: Venezuela
Middle East: Iran, Jordan, Saudi Arabia, Syria, and Yemen
Across Eurasia (comprising 12 states), governments are characterized by strong executives and weak legislatures. The primary focus of politics is on elections and on the constant tussle between presidents and parliaments over their respective authority. Presidents routinely rig elections and rule by decree, bypassing parliaments. Opposition political parties are not well organized and offer few viable alternatives. As such, “there are few intermediaries between high politics and the people, and the press that might play that role relies on the patronage of the state or powerful business cliques with their own agendas.”
The picture is much the same in Latin America. The caudillos (military strongmen) may be back in the barracks but despots now emerge from the ballot box. Once elected, they succeed in neutering and debauching the state institutions. As reported in the Economist:
Mr Chavez has turned Venezuela’s courts into a tool of the executive and used them to jail, harass or disqualify a growing number of his opponents. Nicaragua’s president, Daniel Ortega, has abused his power to rig both municipal elections and the supreme court. Less blatantly, Ecuador’s Mr Correa has tried to muzzle the media, and the Kirchners in Argentina have used the presidency to bully opponents in business and the press. Yet the leaders of the region’s main powers have stayed silent about these abuses.
Even in countries where the separation of powers exists, weak institutions are unable to uphold the rule of law, provide effective government, and advance the rights and freedoms of the people. In Peru, neither the incumbent, Alan Garcia, nor his predecessor, Alejandro Toledo, have commanded much clout or popularity. Political parties in [p.17>]Peru, the Economist went on to say, are just personal vehicles for self-aggrandizement: “For local elections in Oct 2009, no fewer than 60,000 candidates registered in 14,000 municipalities for just 2,000 slates. There is no civil service. There are constant demonstrations, some violent. In a recent poll 22% of respondents outside Lima approved of blocking roads as a form of protest.”
The Middle East is the region most bereft of democracy. Until the recent upheavals, only 3 of the 22 countries in the Arab League—Iraq, Lebanon, and the Palestinian territories—could be said to be democratic, even with some caveats. With access to the media restricted, chaotic general elections produce predictable results: the autocrats and vampire elites retain power; the opposition is demoralized, even radicalized; and the word “democracy” is bastardized. As the Economist notes:
Every Arab country now has a form of representative legislature, even if most have little power and some, like Saudi Arabia’s, are appointed by a king. Some of these autocracies allow more pluralism than others. Morocco, for instance, has widened its space for debate. Others, such as Kuwait, allow a directly elected parliament, but the ruling royal family, still ultimately in charge, has often rued the legislative near-paralysis that followed.
Whether they are monarchies or republics, the Arab states tend to act much the same. Says Larry Diamond, a senior fellow of the Hoover Institution and board member of the Free Africa Foundation: “The Arab League has become, in effect, an autocrats’ club.” Elections are for show, a window-dressing to let off steam. Technically, they are meaningless. But now the youth have started to change things. Angry street protesters sent Tunisian dictator Zine el-Abidine Ben Ali fleeing into exile on January 14, 2011, and brought down Hosni Mubarak of Egypt on February 11, 2011. In Burkina Faso, Libya, Syria, Uganda, and others, dictators put up a fierce resistance. In the end, however, the forces of liberty will triumph.
THE DEVASTATING TOLL
The act of repression not only assails our human conscience and dignity but also exacts a toll in terms of human lives and economic activity. Despotism wreaks economic, social, and human devastation [p.18>]Consider the impact on economic activity: An error made by a despot who does not have the necessary experts advising him could result in commodity shortages, overproduction, or a breakdown in the productive process. Since a despot is not likely to admit this, the problems can fester until they erupt into a full-blown crisis. This was the cause of the demise of the former Soviet Union. To be sure, impressive rates of economic growth are possible under authoritarian or despotic regimes. China and the Asian Tigers (Hong Kong, Singapore, South Korea, and Taiwan) are often cited as examples, but there is a caveat. Exceptions do not make the rule. A final day of reckoning eventually arrives. In an interview, South Korea’s former president, the late Kim Dae-jung, asserted in an interview that placing economic development ahead of democracy was “the fundamental cause of the Asian financial crisis in 1998” because “the authoritarian style of government permitted corruption and collusive intimacy between business and government to flourish.”
Economic Underperformance and Collapse
In a dictatorship, the normal order of things and even common sense have been turned completely upside down. There is no freedom of speech, no rule of law, and state institutions are packed with sycophants and praise-singers. Professionalism disappears from the security forces and the civil service. Fealty to the despot counts more than competence or efficiency. Promotions and job security depend upon who can shout the loudest praise of the despot.
Infrastructure such as roads, bridges, schools, telecommunications, and ports begins to crumble because contracts are awarded by the despot to family members, cronies, and loyal supporters. To sustain the heavy patronage doled out to supporters, the despot may impose heavy taxation and tariffs. Prices—especially food and fuel prices—start to shoot up. The public might vent its outrage in street protests. The despot may clamp down brutally on these street protests and take drastic measures to prevent future price hikes. The hikes are blamed on foreign saboteurs. Property rights are scoffed at. Commercial properties of businessmen alleged to be “anti-government” may be confiscated or seized for distribution to the poor masses in the name of social justice. Such was the case for more than a decade (2000-2010) in Zimbabwe, where the despotic regime of Robert Mugabe organized ruthless thugs to vio‑ [p.19>] lently seize white commercial farmlands. Similarly, in Venezuela, Hugo Chavez “seized rural estates and factories the government deemed to be unproductive, including some assets of Lorenzo Mendoza, Venezuela’s second-wealthiest man, and of H. J. Heinz Co., the world’s largest ketchup maker.” Chavez also seized control of or nationalized oil refineries in 2008. Such contempt for property rights scares off investors, who fear that their commercial properties may be the next to be seized without due process. They flee the country and, without investment, the economy contracts.
The crisis in Zimbabwe, for example, has cost Africa dearly. Foreign investors have fled the region, and the South African rand has lost 25 percent of its value since 2000. Zimbabwe’s economic collapse caused US$37 billion worth of damage to South Africa and other neighboring countries. Although South Africa has been most affected, Botswana, Malawi, Mozambique, and Zambia have also suffered severely.
Foreign investors fled Venezuela, too. According to Bloomberg News, such investors “sold $778 million more in Venezuelan assets than they bought in the first nine months of 2006, according to the central bank; a decade ago, in the same period, they added $5.9 billion more than they disposed of”
This is also true of other Latin American countries where private property rights are not well protected because the rule of law is weakly enforced. As a result, despite Latin American economic growth rates that averaged more than 5 percent in 2004 and 2005, capital flows were negative, meaning more money left the region than entered it. The basic reason was an ongoing lack of confidence among long-term investors. Latin America expert Andres Oppenheimer was cited as saying that “only 1 percent of the world’s investment in research and development currently goes to Latin America.”
Rash diktats and reckless mismanagement inevitably produce economic crises. To deal with these crises, despots may take desperate and drastic measures, such as imposing strict economic/price controls, printing currency, and/or revaluing the old currency. However, as we shall see in chapter 5, none of these measures solves the economic crisis. Instead, they exacerbate it, creating black markets, greater scarcities, and even higher prices, resulting in a vicious downward spiral to economic collapse and a failed state (as has occurred in North Korea and Zimbabwe) unless the despot has access to substantial revenues from a mineral resource, such as oil, as has been the case with Saddam [p.20>] Hussein of Iraq, Mahmoud Ahmadinejad of Iran, and Muammar Qaddafi of Libya.
The Human Toll
The cost of despotism in human terms is impossible to estimate. A handful of despots around the world inflict misery, despair, hope-lessness—and even death—on millions of people who have protested against tyrannical rule. Hundreds of thousands have been jailed. Millions have been killed and millions more have fled their countries to become refugees elsewhere. Among the most infamous despots was Pol Pot of Cambodia, who ruthlessly eliminated anyone who posed a threat to him. Out of a population of 8 million in 1975, 2 million were executed. Another was Idi Amin of Uganda, who butchered as many as 200,000 Ugandans in the 1970s. It should be no surprise that about 70 percent of the world’s refugee population is in Africa and the Middle East—the two regions that harbor the most despots.
Particularly treacherous have been massacres condoned or orchestrated by despotic regimes against particular groups for ethnic, religious, political, or other reasons. Pogroms are violent acts by mobs that are characterized by killings and the destruction of homes, businesses, property, and religious centers. The past four decades have seen attacks on the Copts in Egypt in the 1980s, on the Tamils in Sri Lanka in the 1980s, and on ethnic Armenians in Azerbaijan in the 1990s.17 The human toll of despotism can be seen even more dramatically in the pogroms against the Igbo that led to the 1967-1970 Biafran War in Nigeria, the 1994 Rwandan genocide against the Tutsis, and the ongoing genocide against blacks in the Darfur region of Sudan. Postcolonial African leaders—mostly autocrats—have caused the deaths of more than 19 million Africans since 1960:
1 million Nigerians died in the Biafran War (1967-1970).
200,000 Ugandans were slaughtered by Idi Amin in the 1970s.
100,000 were butchered by President Macias Nguema in Equatorial Guinea in the 1970s.
Over 400,000 Ethiopians perished under Mengistu Haile Mariam.
[p.21>]Over 500,000 Somalis perished under Mohammed Siad Barre.
Man-made famines claimed over 2 million lives between 1980 and 2000 in Chad, Ethiopia, Niger, Somalia, and Sudan.
Over 2 million have died in the wars of Liberia (1993-1999),Sierra Leone (1994-1999), and Ivory Coast (2000-2005).
Over 1 million died in Mozambique’s civil war in the 1970s.
5 million died in Angola’s civil war, which began in 1975 and continued intermittently until 2002.
800,000 perished in Rwanda’s genocide in 1994.
300,000 died in Burundi in 1993-1994.
4 million perished in Sudan’s civil wars from 1960 to 2006.
6 million died as a result of Congo’s wars from 1996 to 2006.
The rough total of 19.8 million does not include conflict-related deaths in Chad, Western Sahara, and Algeria and those who perished at refugee camps. Historians estimate that the total number of black Africans shipped as slaves to the Americas in the sixteenth, seventeenth, and eighteenth centuries was about 10 million. Africa lost another 10 million people through the trans-Saharan and East African slave trade run by Arabs. This means that, in a space of just 50 years after independence in the 1960s, postcolonial African leaders have slaughtered about the same number of Africans as were lost to both the West and East African slave trades over several centuries. Think about it.
Failed States
Every year, the social and economic toll of despotism is driven home by the publication of two indices. The first is the Index of Failed States, drawn up by Foreign Policy magazine in collaboration with the Fund for Peace, an independent research organization. Using 12 indicators of state cohesion and performance, compiled through a close examination of more than 30,000 publicly available sources, the Index ranks 177 states in order from most to least at risk of failure. In the 2010 Index, most of the 20 failed states at the bottom are ruled by despotic regimes. Afghanistan, Iraq, and Pakistan may be regarded as exceptions because of ongoing wars in 2009. The majority of the failed states-12 out of 20—are in sub-Saharan Africa, and 11 out of those 12 African countries are ruled by despots. [p.22>]
Even more telling is the United Nations Human Development Index. Of the 24 at the bottom, a staggering 22 are in sub-Saharan Africa.
Despite its immense wealth of mineral resources, Africa remains mired in abject poverty, misery, deprivation, and chaos. The World Bank adjusted its yardstick for extreme poverty from US$1.00 to US$1.25 a day, which means that 389 million of the 875 million people in sub-Saharan Africa lived in poverty in 2005.
Millions of lives have been lost, economies have collapsed, and whole states have failed under brutal repression. The toll of despotism[p.23>] has been especially devastating for Africa. Africa is poor because she is not free. However, a failed state evolves through various stages. It begins as a vampire state, metastasizes into a coconut republic, and then finally implodes, becoming a failed or collapsed state.
Vampire States
“Anyone who gets to the presidency ends up with way more than he had before, while the poor and working class are the ones always left behind.”
—Roberto Pedroza, a newspaper vendor in Mexico City
The most remarkable aspect of despotism is the rapid deterioration of the institution of government. “Government,” as it is known in the West, does not exist in countries ruled by despots. Leaving aside the democratic requirement that a government must be “of the people, by the people, and for the people,” one expects a government, at a minimum, to care for and be responsive to the needs of the people, or at least to perform some basic services for its people. But even these minimal requirements are often lacking in a dictatorship, where government as an entity is totally divorced from the people and perceived by those running it as a vehicle not to serve but to fleece the people. Dishonesty, thievery, and embezzlement pervade the public sector. Public servants embezzle state funds, and high-ranking ministers are on the take. Government then becomes irrelevant to the people.
What then exists is a vampire state—a government hijacked by a phalanx of bandits, gangsters, crooks, and scoundrels who use the machinery of the state to enrich themselves, their cronies, supporters, and members of their own ethnic, racial, or religious group and to exclude everyone else. It is an apartheid-like system based on the politics of exclusion. One is poor if one does not belong to that charmed circle. The richest people in Africa and many Third World countries are the ruling vampire elites and government ministers. And quite often, the chief bandit is the head of state himself.
Examples of vampire states abound. In fact, one can characterize all communist states as such. They suck the economic vitality out of their people for the enrichment of the ruling communist apparatchiks. Even in post-communist Russia corruption has become a nearly insurmountable obstacle to the country’s economic development. Berlin-based NGO Transparency International rates Russia 146th out of 180 nations [p.24>]in its Corruption Perception Index, saying “bribe-taking is worth about $300 billion a year.”
The PRI party, which ruled Mexico for more than 70 years, though not communist, is another example (its replacement was scarcely better). Said Lino Korrodi, finance manager for Vicente Fox’s 2000 presidential campaign: “It is evident that he (Vicente Fox) got rich during his six years in office, in a very shameless and cynical way.” Mexican presidents are limited to one six-year term. Their last year in office is cynically derided by Mexicans as “el año del dinero” (year of the money). That is when Mexican presidents bare their fangs and suck as much as they can in a frenzy. Carlos Salinas de Gortari, who served from 1988 to 1994, was probably the most bloodthirsty. His name became synonymous with fraud, corruption, and economic devastation, and he fled in disgrace into a self-imposed exile in Ireland. The New York Times reported that “In 2002, Swiss banking authorities found more than US$100 million sitting in a Swiss bank account once controlled by his brother Raul Salinas and froze it.” The loot “was held in the name of a Cayman Islands shell corporation, Trocca Ltd., secretly controlled by Mr. Salinas.”
The regimes of several other Latin American countries ruled by oligarchies and caudillos in the 1980s and 1990s can also be characterized as vampire states. Their rule deepened social and economic inequalities, provoking social discontent and sparking revolutionary movements in such countries as Colombia and Nicaragua. Widespread government dysfunction, corruption, and economic despair forced many Latin Americans to migrate and settle in the United States, often illegally. Known as the “undocumented,” their number now exceeds 10 million.
In the Middle East, the classic example of a vampire state is Saudi Arabia. Others include regimes in Tunisia (under the ousted dictator Ben Ali), Egypt (under Hosni Mubarak), Iraq (under the late Saddam Hussein), Iran, Syria, and Yemen. More examples can be found in Africa, where the state has been reduced to a mafia-like bazaar in which anyone with an official designation can pillage at will. Dictators seize and monopolize both political and economic power to advance their own selfish and criminal interests, not to develop their economies, and they don’t care about the poor. Their overarching obsession is to amass personal wealth, gaudily displayed in flashy automobiles, fabulous mansions, and bevies of fawning women. Helping the poor, promoting eco‑ [p.25>] nomic growth, or improving the standard of living of their people is anathema to the ruling elites. “Food for the people!” “People’s power!” “Houses for the masses!” are simply empty slogans that are designed to fool the people and the international community.
Nigeria is the mother of all vampire states. Between 1970 and 2004, more than US$450 billion in oil revenue flowed into Nigerian government coffers, but much of it was looted by Nigeria’s reckless military bandits. Mallam Nuhu Ribadu, the chairman of the Economic and Financial Crimes Commission set up in 2003, confirmed the theft of $412 billion over the period from 1960 to 1999. “We cannot be accurate down to the last figure but that is our projection,” said Osita Nwajah, a commission spokesman.
For 18 months (from February 1999 to August 2000), Nigeria’s vampire state was paralyzed by legislators’ wrangling over perks. Its 109 senators and 360 representatives passed just five pieces of legislation, including a budget that was held up for five months. Immediately upon taking office, the legislators voted themselves hefty allowances, including a 5 billion naira (US$50 million) furniture allowance for their official residences and offices. The now-impeached ex-chairman of the Senate from President Olusegun Obasanjo’s own People’s Democratic Party (PDP), Chuba Okadigbo, was the most greedy, according to New African:
As Senate President, he controlled 24 official vehicles but ordered 8 more at a cost of $290,000. He was also found to have spent $225,000 on garden furniture for his government house, $340,000 on furniture for the house itself ($120,000 over the authorized budget); bought without authority a massive electricity generator whose price he had inflated to $135,000; and accepted a secret payment of $208,000 from public funds, whose purpose included the purchase of “Christmas gifts.”
And it gets better: President Obasanjo went after the loot that former president Sani Abacha and his family had stashed abroad. There was much public fanfare regarding the sum of about US$709 million and another L144 million recovered from the Abachas and the former president’s henchmen. But then, this recovered loot itself was quickly re-looted! The Senate Public Accounts Committee found only US$6.8 million and £2.8 million of the recovered booty in the Central Bank of Nigeria (CBN).
[p.26>] In case after case, government officials in the developing countries get rich by misusing their positions. Faithful only to their foreign bank accounts, these official buccaneers have no sense of morality, justice, or even patriotism. They kill and maim their own people and destroy their own countries to acquire and protect their booty because, functionally illiterate, they are incapable of using the skills and knowledge they acquired from education to get rich on their own in the private sector. Needless to say, they are “derided by some experts as ‘the extractors,’ people who squandered wealth without building for the future.”
The inviolate ethic of the vampire elites is self-aggrandizement and self-perpetuation in power. To achieve these objectives, they take over and subvert every key institution of government: the civil service, judiciary, military, media, and banking. As a result, state institutions and commissions become paralyzed. Laxity, ineptitude, and unprofessionalism thus flourish in the public sector. Of course, the country may have a police force and judiciary system to catch and prosecute the thieves. But the police are themselves highway robbers who are under orders to protect the looters in power, and many of the judges are themselves crooks.
Obviously, there are no checks against brigandage. The worst offender is the military—the most trenchantly perverted institution, especially in Latin America and Africa. In any normal civilized society, the function of the military is to defend the territorial integrity of the nation and its people against external aggression. But under despotic regimes, the military is instead locked in combat with the very people it is supposed to defend. Witness the barbaric brutalities meted out against street protesters by Iran’s Basij militiamen in June 2009. Or those of North Korean security guards against market traders in December 2009. And think of Muammar Qaddafi sending jet fighters to bomb street demonstrators in February 2011. In We Wish to Inform You that Tomorrow We Will Be Killed with Our Families, Philip Gourevitch writes that, “Across much of Africa, a soldier’s uniform and gun had long been regarded—and are still seen—as little more than a license to engage in banditry.” Wole Soyinka handed the postcolonial soldiers a blistering rebuke:
The military dictatorships of the African continent, parasitic, unproductive, totally devoid of social commitment or vision, are an expression of this exclusionist mentality of a handful; so are those immediately post- [p.27>]colonial monopolies that parade themselves as single-party states. To exclude the sentient plurality of any society from the right of decision in the structuring of their own lives is an attempt to anesthetize, turn comatose, indeed idiotize society, which of course is a supreme irony, since the proven idiots of our postcolonial experience have been, indeed still are, largely to be found among the military dictators.
A simple rule of thumb on development has emerged: the index of economic well-being of a developing country is inversely related to the length of time the military holds political power. The longer it stays in power, the greater the economic devastation. Again, a few exceptions may be noted, as in the case of Augusto Pinochet of Chile, but exceptions do not make the rule.
Meanwhile, the vampire state wobbles as it lurches from one crisis to another. Its legitimacy is openly questioned. Some sections of the population are in open revolt and others may even mount roadblocks to keep out state officials, as occurred in many Latin American countries in the 1990s. Such was also the case in Libya in February 2011. The despot barks orders but is routinely ignored. His ruling vampire elites, clueless about how to resolve the economic crisis, resort to desperate measures to keep things under control, but they fail to arrest the deterioration. They readily give up and flex their muscle, daring anyone to hold them accountable or take power away from them. Steadily, the vampire state, infused with the arrogance of power, hardens into a coconut republic and provokes a rebellion: Tunisia, Egypt, Libya, and elsewhere in North Africa and the Arab world.
Coconut Republics
This invites a distinction. In a banana republic, one might slip on a banana peel but things do work for the people now and then, albeit inefficiently and unreliably. Electric supply is spasmodic and the water tap has a mind of its own. Occasionally, it might spit some water and then change its mind. Buses operate according to their own internal clock. By the grace of God or Allah, a bus might arrive, belching thick black smoke. Food and gasoline are generally available but expensive, if one is willing to contend with occasional long lines. The police are helpful when they are bribed and will then protect the people by catching real crooks. There is petty corruption. Now and then, a million dollars here [p.28>]and a million there might be embezzled. Such a banana republic often slips into suspended animation or arrested development.
A coconut republic, on the other hand, is ruthlessly inefficient, lethal, and eventually implodes. Instead of a banana peel, one might step on a live grenade. Here, common sense has been butchered and arrogant tomfoolery rampages with impunity. The entire notion of “governance” has been turned completely on its head by the ruling vampire elites, who wield absolute power, commit crimes, and plunder with supercilious arrogance. They are not answerable or accountable to anybody and one dares not ask. Impunity reigns supreme. It is here where one finds tyrants chanting “People’s Revolution” and “Freedom!” while standing on the necks of their people. A “revolution” is a major cataclysmic event that brings about an overthrow of the ancient regime. It makes a clean break with the existing way of doing things and establishes a new way or order. In politics, for example, a “revolution” occurs when the subjugated and exploited class rises up to overthrow the oppressors—as occurred with the American and French Revolutions. But in a coconut republic, it is the other way around. It is the dictators who are chanting revolution! Have you ever noticed that those Third World leaders who vociferously claim they are fighting against terrorism in order to receive Western aid are themselves sponsors of state terrorism against their own people?
In a coconut republic, the rule of law is a farce; bandits are in charge, their victims in jail. The police and security forces protect the ruling vampire elites, not the people. The chief bandit is the head of state himself. He and his family and his henchmen have a constant supply of electricity and their water taps run all the time; the people can collect rain water. There are inexhaustible supplies of food and gasoline for them, but not for the people. And there are no buses for the people, period. Those shiny buses that ply the road are for vampire elites. The people can walk. The republic sits atop vast reserves of oil and exports oil, but there is no gasoline for the people since the country’s oil refineries have broken down. Funds earmarked for repairs have been stolen, and refined petroleum products must be imported. The country may also be rich in mineral deposits such as diamonds, gold, and coltan, yet the mineral wealth has produced misery—or a curse.
Here are some examples of life in a coconut republic: [p.29>]
Hugo Chavez of Venezuela forces everyone to listen to his hours-long tirades but dozes off when he listens to them himself.
Saparmurat Niyazov, the late president-for-life of Turkmenistan, erected statues and portraits of himself everywhere and named cities, airports, and even a meteorite after himself. The months and days of the week were named after him and his family, and a family feast was celebrated every day.
When a presidential election was held in Uzbekistan in 2007, President Islam A. Karimov’s three opponents each publicly endorsed him. In the 2009 parliamentary election, all four parties in the race staunchly supported Karimov. Asked if there was any real political opposition and competition in his country, Karimov replied that the 2009 race for the parliament’s lower chamber “had injected genuine competition into the process, largely because the four parties have vocally criticized one another.”
Uganda’s agriculture minister, Kibirige Ssebunya, declared that: “All the poor should be arrested because they hinder us from performing our development duties. It is hard to lead the poor, and the poor cannot lead the rich. They should be eliminated.” He advised local leaders to arrest poor people in their areas of jurisdiction. He died four years later.
A former minister of finance was found hiding—where else?—in a coconut tree: “[Zambia’s] former finance minister, Katele Kalumba, was arrested and charged with theft after the police found him hiding in a tree near his rural home. Mr. Kalumba, who had been on the run for four months, is being charged in connection with some US$33 million that vanished while he was in office.”
The late president of Liberia, General Samuel Doe, summoned his finance minister, “only to be reminded by aides that he had already executed him.”
Tanzania’s anti-corruption czar, Dr. Edward Hosea, was himself implicated in a corruption scandal involving the award of a US$172.5 million contract to supply 100 megawatts of emergency power to a Texas-based company that did not exist.[p.30>]
Coconut Security Forces
In a coconut republic, the police are scarcely professional. Tell a police officer that you saw a minister stealing the people’s money and it is you he will arrest! After the brutal murder of politician Robert Ouko in 1990, the Washington Post reported that, according to Kenyan police, “Foreign Minister Robert Ouko was presumed to have broken his own leg, shot himself in the head and set himself afire. Two years earlier, Kenyan officials suggested that a British tourist, Julie Ward, lopped off her own head and one of her legs before setting herself aflame.”
The ever-ready security forces can unleash the full force of their fury on unarmed civilians with batons, tear gas, water cannons, and rubber bullets. But how brave are the security forces really? Ambushed by a bunch of ragtag cattle rustlers, Kenya’s elite presidential guards quickly surrendered. Johann Wandetto, a reporter for the People Daily, a newspaper in Kitale, Rift Valley province, published a story in the March 6, 1999, edition with the title: “Militia Men Rout 8 Crack Unit Officers: Shock as Moi’s Men Surrender Meekly.” Wandetto was arrested and sentenced to 18 months in prison on what the court described as an “alarmist report.”
And the mother of all security forces? When the African Union (AU) peacekeepers’ base on the edge of Haskanita, a small town in southern Darfur, came under sustained rebel assault on September 29, 2007, the AU soldiers fled. According to the Economist, “Ten were killed; at least 40 fled into the bush. The attackers looted the compound before Sudanese troops arrived to rescue the surviving peacekeepers.”
Coconut Elections Coconut elections are, essentially, farcical elections in which the incumbent writes the rules and then serves as a player, the referee, and the goalkeeper. The deck is hideously stacked against the opposition candidates, who are starved of funds, denied access to the state-controlled media, and brutalized by government-hired thugs as the police watch. Opposition parties may be banned too.
By contrast, the incumbent enjoys access to enormous state resources: state media, vehicles, the police, the military, and civil servants are all commandeered to ensure his re-election. Further, the entire electoral process itself is rigged: voter rolls are padded with ruling-party supporters and phantom voters while opposition supporters are purged. The electoral commissioner is in the pocket of the ruling party, as are the judges who might settle any election disputes. During the election campaign, posters of the incumbent are everywhere while pro-government [p.31>] thugs terrorize the populace and anyone perceived to be a supporter of the opposition parties. Innocent civilians are force-marched to attend the incumbent party’s rallies, while opposition rallies are violently disrupted and opposition supporters are brutalized and even killed as the police look on.
On election day, the ruling party resorts to various tricks to steal the election. Ballot papers do not arrive on time, inducing frustrated opposition supporters to leave polling stations. Ballot boxes may eventually arrive but are already stuffed with votes for the incumbent. (Mayoral elections were held in Kampala, Uganda, on February 18, 2011. When the polls opened at 7:00 A.M., ballot boxes were already full of pre-ticked ballots for the ruling National Resistance Movement candidate, Peter Samatimba. This led to the cancellation of the results. Queried, Samatimba denied any involvement. “This could have been done by my opponents to discredit me,” he said.) And if during the vote count the opposition appears to be winning, the process can be halted and the ballot boxes transported to a secret location where the votes are counted in camera. Most often, posted election results do not reflect actual voting. This was the case in Ghana’s 1996 elections, where Major Emmanuel Erskine, a challenger to the brutal regime of Fte./Lte. Jerry Rawlings, did not even get one single vote in his own constituency. That is, the results indicated that he did not vote for himself and his wife and four children did not vote for him. After he complained bitterly about the rigging, the electoral commission tossed six votes his way.
Here is a short list of instances that indicate coconut elections:
The electoral equipment for coconut elections, the results of which are stolen anyway, was itself stolen (Nigeria, December 9, 2010).
Both candidates—Laurent Gbagbo and Alassane Ouattara—claimed victory and installed themselves as presidents after Ivory Coast’s November 2010 elections.
For the November 7, 2010, elections in Myanmar (Burma), military rulers bestowed upon their country a new flag, a new seal, and a new anthem. The old flags were to be lowered by people born on a Tuesday and the new flags were to be raised by people born on a Wednesday. Then all the old flags were to be burned. Many parties were blocked from participating by fees set so high that in many districts only government-backed [p.32>] candidates could register, by stipulations that the military could allot close to one-quarter of all seats after the election took place, and by the harassment and threatening of opposition candidates who tried, against all odds, to compete. No international observers were permitted, and no foreign journalists were allowed in. The military junta declared victory even before voting started.
At the time of the August 25, 2003, elections in Rwanda, opposition leader Faustin Twagiramungu found his campaign stymied at every turn by government security forces. His rallies were canceled, his workers arrested, and his brochures seized. On the eve of the voting, “police arrested 12 of Twagiramungu’s provincial organizers, saying they were preparing election day violence.” Additionally, “In Mr. Twagiramungu’s home town, soldiers reportedly looked at ballot papers and ordered those who voted the wrong way to try again.” For the August 2010 elections, preparations for the September victory celebration by the incumbent despot, Paul Kagame, began before the voting did.
The year 2010 reaped a harvest of coconut elections in Belarus, Burkina Faso, Myanmar (Burma), Egypt, Ethiopia, Ivory Coast, and Rwanda. No incumbent lost an election.
Belarus, a country of 10 million, held its presidential elections on December 19, 2010. Long-term dictator Alexander Lukashenko, who had been in power for 16 years, won handily. His government controls the media, and opposition candidates were denied airtime. An agency called the KGB watched over the people. Intimidation was the order of the day. The government machine that pressured people into early voting was in place, and those who failed to vote early were threatened with the loss of their jobs in the state sector.
Lukashenko won nearly 80 percent of the vote and his closest rival 1.8 percent. Opposition activists and critical journalists denounced the vote as fraudulent, and over 10,000 demonstrators poured into the streets in a protest march toward Independence Square in the heart of Minsk. But heavily armed security and police forces unleashed their full fury on the demonstrators, who were savagely beaten. Seven of the nine opposition candidates were arrested, and over 600 protesters were taken into custody.
[p.33>] The opposition candidate Vladimir Neklyayev, who received 1.8 percent of the vote, was beaten unconscious and rushed to the hospital. While he was being treated for head wounds, he was abducted by several men in civilian clothes. Also severely beaten and rushed to a hospital was another presidential candidate, Andrei Sannikov. And what was the reaction of the head of the Central Elections Commission, Lidiya Ermoshina—who was appointed by Lukashenko? According to an article in Der Spiegel, she “said that her office was aware of only very few complaints about the elections.” Naturally.
Coconut Reform It is clear that the vampire state or the coconut republic must be reformed and replaced with a well-functioning state. To establish one, reform is needed in many areas—in the political system, the economic system, the judicial system, the educational system, and the electoral system. But reform is anathema to the ruling vampire elites and coconut heads, for it would threaten their lucrative businesses and their hold on power.
Ask them to privatize inefficient state enterprises and they will sell the companies to themselves and their cronies at fire-sale prices: examples are Uganda under Yoweri Museveni and Egypt under Hosni Mubarak. Said Muhammad Al Ghanam, the former director of legal research in Egypt’s Ministry of Interior: “The Mubarak era will be known in the history of Egypt as the era of thievery.”
Ask them to develop their economies and they will develop their pockets. Ask them to seek foreign investment and they will seek a foreign country in which to invest their loot.
Ask them to enforce the rule of law and they will force the law to respect their whims. Said The Economist: “In Zimbabwe, the thieves are in charge and their victims face prosecution.”
Ask them to trim their bloated bureaucracies and cut government spending and they will establish a “Ministry of Less Government Spending.” Ask them to establish a market-based economy and place more emphasis on the private sector and they will create a “Ministry of Private Enterprise,” as Ghana did in 2002.
Ask them to reform their abominable political and economic systems and they will perform the “coconut boogie”—one swing forward, three swings back, a jerk to the right, and a tumble [p.34>] to land hard on a frozen Swiss bank account. Swiss authorities froze the bank accounts of Laurent Gbagbo of Ivory Coast, Zine el-Abidine Ben Ali of Tunisia, Hosni Mubarak of Egypt, and Muammar Qaddafi of Libya in 2011.
Ask them to establish democratic pluralism and they will create surrogate parties, appoint their own electoral commissioners, empanel a gang of lackeys to write the constitution, inflate the voters’ register, manipulate the electoral rules, and hold coconut elections to return themselves to power. Even African children could see through this chicanery and fraud. Said Adam Maiga from Mali: “We must put an end to this demagoguery. You have parliaments, but they are used as democratic decoration.”
Reform becomes a charade. The reform process has stalled through vexatious chicanery, willful deception, and vaunted acrobatics. The ruling vampire elites and the coconut heads are just not interested in reform, period. They benefit from the rotten status quo. But without reform, their countries could implode or collapse in a Tunisian-type revolution. In fact, the adamant refusal of despots to reform their odious and dysfunctional political systems has ignited revolutions:
Nicaragua: In 1979, a revolutionary movement called the Sandinistas, led by Daniel Ortega, ousted from power Anastasio Somoza, whose family had ruled the country since 1936.
Indonesia: In 1998, Suharto, who had held power for 32 years, was forced to resign following the Asian financial crisis. In May 1999, Time Asia estimated Suharto’s family fortune at US$15 billion in cash, shares, corporate assets, real estate, jewelry, and fine art. Of this, US$9 billion was reported to have been deposited in an Austrian bank. Suharto was placed highest on Transparency International’s list of corrupt leaders with an alleged misappropriation of between US$15 and 35 billion during his 32-year presidency. His ouster led to the breakaway attempts by East Timor and Aceh.
However, Africa abounds with examples of despots who refused to heed the call to reform and, as a result, saw their countries implode in a violent vortex of chaos, carnage, and destruction, ending with their [p.35>] own deaths: Somalia (1991), Rwanda (1994), Liberia (1991), and Zaire (1996), among others. The cost of rebuilding each country devastated by war is in the billions. Rebuilding Liberia alone would cost at least US$15 billion.
The Coconut Cure Alas, there is a cure for coconut heads. In Dar es Salaam, Tanzania, there is a place called “the magic corner,” where all and sundry, including politicians, come to be relieved or cured of their problems. “Even those top leaders of the government come to that tree,” said Shabuni Haruni, a private security guard. “Yes, during the election.”
Upon the payment of a small fee, a traditional healer will take a patient to a huge baobab tree, reputed to be the abode of ancestral spirits. Patients remove their shoes and kneel in front of the tree with their eyes closed. At one session described by the Washington Post correspondent Karl Vick,
Rykia Selengia, a traditional healer, passed a coconut around and around the head of her kneeling client. The coconut went around the man’s left arm, then the right, then each leg. When she handed the coconut to the client, Mussa Norris, he hurled it onto a stone.
It shattered, releasing his problems to the winds.
In order to have a “favorable” view of socialism one must have either forgotten what the entire world learned about socialism from the late nineteenth century on, or have never learned anything about it in the first place. The latter is obviously true of much of the younger generation.
Socialism started out being defined as “government ownership of the means of production,” which is why the government of the Soviet Union confiscated all businesses, factories, and farms, murdering millions of dissenters and resisters in the process. It is also why socialist political parties in Europe, once in power, nationalized as many of the major industries (steel, automobiles, coal mines, electricity, telephone services) as they could. The Labour Party in post-World War II Great Britain would be an example of this. All of this was done, ostensibly, in the name of pursuing material “equality.”
In the foreword to the 1976 edition of his famous book, The Road to Serfdom, Nobel laureate economist Friedrich Hayek wrote that the definition of “socialism” evolved in the twentieth century to mean income redistribution in pursuit of “equality,” not through government ownership of the means of production but through the institutions of the welfare state and the “progressive” income tax. The means may have changed, but the ostensible end—equality—remained the same.
Hayek’s mentor, fellow Austrian economist Ludwig von Mises, explained in his classic treatise Socialism: An Economic and Sociological Analysis,6 that the welfare state, the “progressive” income tax, and especially pervasive government regulation of business were all tools of “destructionism” in the eyes of the socialists of his day. That is, he observed that the proponents of socialism always employed a two-pronged approach: (1) the government takeover of as many industries and as much land as possible, and (2) attempts to destroy existing capitalist societies with onerous taxes, regulations, the welfare state, inflation, or whatever they thought could get the job done.
Thomas J. DiLorenzo, The Problem with Socialism (New Jersey, NJ: Regnery, 2016), 4-5.
Firstly, for the sake of good conversation and clarity… we need [actually, Dr. DiLorenzo] to define socialism:
Here are some article headlines that will help encapsulate the quote:
FEC Democrat pushes for controls on Internet political speech ~ The FEC deadlocked in a crucial Internet campaign speech vote announced Friday, leaving online political blogging and videos free of many of the reporting requirements attached to broadcast ads — for now. While all three GOP-backed members voted against restrictions, they were opposed by the three Democratic-backed members…
Federal regulation of Internet coming, warn FCC, FEC commissioners ~ Democrats targeting content and control of the Internet, especially from conservative sources, are pushing hard to layer on new regulations and even censorship under the guise of promoting diversity while policing bullying, warn commissioners from the Federal Communications Commission and Federal Election Commission. “Protecting freedom on the Internet is just one vote away,” said Lee E. Goodman, a commissioner on the FEC which is divided three Democrats to three Republicans. “There is a cloud over your free speech.”…
[Editor’s note: that means blogs like mine of Gay Patriot’s could be considered “bullying” and to protect “freedom” they will be banned… the redefinition of the meaning of words is what allows these progressives to win in conversation.]
You Media People Should Stop Reporting on Terrorism So People Don’t Know What’s Going On ~ …This new push by Kerry shouldn’t be surprising, after all it was just a few weeks ago when Kerry essentially argued the use of air conditioners and other appliances are bigger threats to the world than ISIS. Here’s the reality: Kerry doesn’t want the press giving attention to the issue of terrorism because it further exposes the failure of the Obama administration’s foreign policy over the past eight years….
[Editor’s note: you see, if the press would stop reporting on terrorism, then more people may actually take Kerry — and other politicians — serious when they say stuff like, “air conditioners… are bigger threats to the world than ISIS.]
Another example from a few years ago is the Fairness Doctrine. Just listen to Ed Schultz admit something in this radio excerpt (below-right ~ from an OLD POST).
You see, all this is a power play. In a society becoming increasingly more-and-more socialist… power and control over every aspect of life becomes more-and-more natural. Almost a necessity [inherent] on the part of the politician. Democrats think they are for freedom, but in fact they are the root cause for the constant attacks on freedom. That is, progressive liberalism… not classical liberalism.
And as a Christian I am concerned, ultimately, for truth [Truth]. Truth is what a free society strives for… and often getting to it means discussing all options. “Options” are anathema to socialism, to wit:
Because of the inevitable failure of socialist bureaucrats to “plan” an economy and a society better than the millions of individuals comprising the society can, there will be “dissatisfaction with the slow and cumbersome course of democratic procedure which makes action for action’s sake the goal,” wrote Hayek. “It is then the man or the party who seems strong and resolute enough ‘to get things done’ who exercises the greatest appeal” to the public. The public demands a “strongman” (or strongwoman) “who can get things done”—even if it means the abandonment of democracy.
[….]
Moreover, the socialist regime is likely to be populated by “the worst elements of any society,” warned Hayek. Political demagogues (and socialists are always demagogues) have long understood that it is easier for the masses to agree on a negative program—a hatred of an enemy or “the envy of the better off” than on any positive program. In Bolshevik Russia, it was the capitalists and monarchists and Christians and independent farmers and aristocrats who were the enemy, and against whom the masses could be swayed, and against whom violence could be inflicted in the name of “the people.” In the Europe of Hayek’s day it was the plutocrat and “the Jew who became the enemy….” “In Germany and Austria the Jew had come to be regarded as the representative of capitalism,” and hence became the target of extreme hatred. In America, political demagogues target “Wall Street” and the wealthy “one percent” as the objects of their hatred. [RPT’s addition: And the “fundamentalist that would dare question transgender normalization of bathroom use and female sports, etc.]
Hatred and violence, especially for the young, is justified in the name of idealism, however perversely understood. To a socialist, the ends justify the means (which is the reverse of traditional morality) and can justify any action desired by a socialist. To a socialist, said Hayek, there is nothing “which the consistent collectivist must not be prepared to do if it serves `the good of the whole.’” This socialist mindset accepts if not celebrates “intolerance and brutal suppression of dissent,” and “the complete disregard of the life and happiness of the individual,” because the “selfish” individual does not matter; the socialist will argue that what he does is “for the good of the whole.”
In a socialist society, said Hayek, the only “power” worth having is political power, and to consolidate that political power government relies on propaganda, intimidation, and government domestic spying to discredit, bully, and eliminate possible opposition.
Socialism can lead to “the end of truth,” as Hayek called it, because socialists believe in indoctrinating people into “The Truth.” This is why socialist regimes have made us familiar with “reeducation camps” and rigid, totalitarian ideological conformity. Socialists believe that there are no legitimate, alternative viewpoints. Socialist propaganda must dominate the educational system and the mass media so that, in Hayek’s words, “a pseudoscientific theory becomes part of the official creed” which “directs everybody’s actions.” Under socialism, “every act of the government, must become sacrosanct,” while minority opinions—or even majority opinions at odds with the official ideology—must be silenced and are demonized. This all sounds like a perfect definition of the “political correctness” that plagues American colleges and universities and which has gone a long way toward destroying academic freedom both for students and professors.
“Truth” in a socialist society is not something to be debated; it is mandated and enforced by the Socialist regime, from which there is no alternative and no appeal. Once socialist ideology takes over and respect for actual truth is destroyed, wrote Hayek, then all morals are assaulted because all morality is based on respect for the truth.
Thomas J. DiLorenzo, The Problem with Socialism (New Jersey, NJ: Regnery, 2016), 55-58.
Enjoying a wonderful book… and excellent primer on socialism and the free-market. The book is by Thomas J. DiLorenzo, and is titled, The Problem with Socialism. Here is an extended excerpt… I highly recommend the book:
…economist David Osterfeld wrote: “[S]ocialism, by its very nature, rewards sloth and indolence and penalizes diligence and hard work. It therefore establishes incentives that are incompatible with its self-proclaimed goal of material prosperity. The inherent dilemma of socialism is that individuals who respond ‘rationally’ to the incentives confronting them will produce results that are ‘irrational’ for the community as a whole.”
In the early twentieth century some socialists argued that socialism would somehow rather magically transform human beings, effectively taking the place of God to create a new “socialist man” who would no longer be acquisitive and interested in pursuing his own self-interest. This was long ago proven to be a farce, as it never occurred anywhere on earth despite the use of terror and mass murder by the former Soviet Union, China, Cuba, and other socialist regimes in vain attempts to “prove” their theory to be correct.
THE KNOWLEDGE PROBLEM
A second reason for the inherent and inescapable failures of socialism as an economic system is known in the economics profession as the “knowledge problem.” This problem is associated with the writings of the Nobel prize-winning economist Friedrich Hayek, who first explained the idea in a 1945 academic journal article entitled “The Use of Knowledge in Society.” In that article Hayek explained that the kind of knowledge that makes the economic world go ’round is not just scientific knowledge but the detailed and idiosyncratic “knowledge of the particular circumstances of time and place” that the millions of people who make up the world economy possess and utilize to perform their unique jobs and live their lives. No government planner could possibly possess, let alone efficiently utilize, such vast knowledge.
For example, consider something as simple as a slice of pizza. What would it take to make a pizza from scratch? Well, the first ingredient would be dough, which would require a wheat farm to raise the wheat that is turned into flour, which in turn is turned into pizza dough. The wheat farm requires all of the engineering know-how that is used to build all of the tractors and other farm equipment; farm tools, fertilizers, irrigation systems, and what not. Then there is the grain storage business and all that goes into it, along with the trucking industry that is used to transport the grain. The transportation industry requires gasoline or diesel fuel, which means the petroleum industry must become involved, including all of the sophisticated engineering knowledge that is used to extract petroleum from the earth (or the ocean floor) and refine it into gasoline.
So far, considering just one ingredient of a common pizza—dough—we learn that it requires the efforts of probably hundreds if not thousands of people from all over the world, all with very specialized “knowledge of the particular circumstances of time and place” that they use to do their jobs.
Then there is the tomato sauce, which requires a tomato farm and all the farm equipment, tools, fertilizers, irrigation, transportation, and so forth that is involved in growing and marketing tomatoes. A dairy farm is then needed to produce milk, which is turned into cheese for the pizza. And on and on. The lesson here is that what makes the economic world—indeed, human civilization itself as we know it—possible is the international division of labor and knowledge in which we all specialize in something in the marketplace, earn money doing it, and use that money to buy things from other “specialists.” All of this occurs spontaneously without any government “planner” consciously dictating how to make pizzas, how many to make, or where pizza parlors should be located.
As Adam Smith explained in his famous 1776 treatise, An Inquiry into the Nature and Causes of the Wealth of Nations, what motivates people to put forth all of this effort and cooperate with each other to give us “our meat and our bread” is not their selflessness or their love of their fellow man, but their concern for their own wellbeing. By pursuing their own self-interest in the free market, they coincidentally, as though led by an “invisible hand,” benefit the rest of society as well. As for socialism, it is worth repeating that no government planner or group of government planners with the most powerful computers available could conceivably possess and utilize all of the constantly changing information that is needed to produce even the most common and simple consumer goods, let alone sophisticated products like automobiles and computers.
The false notion that government planners under socialism could possess and make better use of all this information than the myriad consumers, workers, entrepreneurs, business managers, and other market participants in thousands of different industries was labeled “the pretense of knowledge” by Hayek in his Nobel prize acceptance speech in 1975. It was, said Hayek, the “fatal conceit” of socialists everywhere.
Hayek also pointed out how the free-market pricing system is indispensable as a tool of any functioning economy. Government-mandated prices, such as we have in socialist economies, produce nothing but chaos. In a market economy, prices are like road signs; in this case, they reflect the relative scarcity of goods and services, the intensity of consumer demand, and help us order our economic lives. When a product or service becomes more scarce consumers look for alternatives, which is one engine of innovation. When prices rise, investors are alerted to consumer demand and look to provide consumers with what they want at a lower price or to improve on the existing product or service.
Without market prices, rational economic decision making is impossible, which is another core reason for the failures of socialism to produce anything but poverty, misery, and economic chaos.
THE CALCULATION PROBLEM
The most devastating critique of socialism is known as the “calculation problem.” Economist Ludwig von Mises explained it in his 1920 treatise, Socialism: An Economic and Sociological Analysis, and in his later 1949 treatise, Human Action.” Socialists who advocate government “planning” with government ownership of the means of production face an impossible task, said Mises, because they have no idea how to go about arranging the production of goods and services without real, market-based capital markets (such as the stock market, private banking system, and so on). It is capitalist entrepreneurs, Mises wrote, the professional speculators, promoters, investors, and lenders, who all have a personal financial stake in the investments they make, who allocate capital in a market economy. Their indispensable tool is market prices, which guide them to invest in a rational, profitable way, meeting consumer demand. Under socialism, where government owns all the means of production and capital “markets” are nonexistent, and resources are allocated by bureaucrats to meet “plans” that might have no basis in economic reality.
In a capitalist economy, entrepreneurs have to meet consumer demand or go bankrupt. This doesn’t mean that capitalist markets are “perfect,” only that there is an enormously powerful incentive for private investors to invest their money in ways that will be rewarded by consumers. This incentive, however, is totally absent from a socialist economy, where it is not consumer demand (and the investors’ desire to make a profit and avoid a loss), but government direction, that allocates economic resources, which is why Mises deemed socialism to be “impossible” as a viable economic system; it simply makes no economic sense.
Some seventy years after Ludwig von Mises first explained the impossibility of rational economic calculation under socialism, the well-known socialist economist Robert Heilbroner authored a momentous essay in The New Yorker entitled “The Triumph of Capitalism,” in which he begrudgingly admitted that “Mises was right” about socialism all along. At the time, the seventy-year-old Heilbroner was the Norman Thomas Professor of Economics at the New School for Social Research and had spent the previous thirty years of his academic career advocating and defending socialism. (Norman Thomas was a twentieth-century presidential candidate of the American Socialist Party.)
The point here is to note the irony of the renewed popularity of “socialism” today, especially among a segment of the college student population, when even longtime twentieth-century defenders of socialism such as Robert Heilbroner finally admitted that it was a massively failed and misconceived idea. To be a modern-day advocate of socialism is to completely ignore all sound economic logic, more than a century of history, and the words of honest socialist intellectuals like Heilbroner who were finally forced to confront reality after ignoring it for most of their adult lives.
The pervasive rallying cry of socialists is “equality.” Capitalism creates too many inequities, they say. But they ignore the fact that all human beings are unique, and inequality is thus inevitable. The relentless socialist crusade for “equality” is not just a revolt against reality; it is nothing less than a recipe for the destruction of normal human society, as the Russian and Chinese socialists of the twentieth century, among others, proved. In the name of socialist equality they destroyed their economies, condemned hundreds of millions to poverty, and executed millions of dissenters. And even after all that, they never created anything remotely like an egalitarian society.
Democratic-socialist countries that have not gone to these murderous extremes have nevertheless been content to live off of the capital accumulated from limited or previous free markets in their countries.
Socialists are less concerned about equality before the law, or equal rights to liberty, than they are with material equality, which, of necessity, has to be forced upon society by the state. Rabbi Daniel Lapin, a clergyman who is also an economic writer and speaker, points out that anything made by God, whether it be humans or stones (which can range from small pebbles to glittering diamonds of infinite variety) is unique; while things made by man, like bricks, can be made uniform. The essence of the socialist enterprise is to use the coercive powers of government to turn us all into identical bricks.
The desire to turn unique human beings into identical socialist bricks explains why socialist regimes are often totalitarian—because it is the only way they can make a serious attempt to achieve their aims.
The socialist obsession with equality has always been at war with the division of labor and knowledge that comes naturally in a market or capitalist economy. Ludwig von Mises noted that “The fundamental social phenomenon is the division of labor and its counterpart, human cooperation,” which, in turn, is what leads to economic progress and development. The uniqueness of every human being—our differing physical abilities, mental abilities and interests, different aptitudes, preferences ad infinitum—mean that we naturally tend to specialize in something, to focus on what we do best.
In a market economy, this allows us to specialize in what we do best, and get paid for it, and then trade with other “specialists” for the goods and services we desire. An obvious consequence of this is that a capitalist economy creates an interconnected community that constantly strives to supply all of us with the best goods and services at the lowest price; it provides employment for people of all imaginable talents and abilities; it blows past subsistence economies (where one individual or family or village has to do everything itself); it creates wealth (which can support charity); and it encourages international trade, because not only are human beings unique, but so are their material and geographical resources. No government program, for instance, can ever change the fact that Saudi Arabia is a vast desert with huge supplies of oil, or that
the American Midwest contains millions of acres of some of the most fertile farmland on earth. The Saudis specialize in oil and sell it to Americans; Americans specialize in agriculture and sell food to the Saudis whose irrigation systems, as sophisticated as they are, still render agricultural production several times more expensive than what can be achieved by American farmers. The international division of labor, as much as a domestic division of labor, results in everyone becoming more prosperous. Another point is that the division of labor (and knowledge) has always spawned a different kind of human cooperation in the form of teamwork, for many tasks cannot be performed by single individuals. Hence, people tend to become specialists not only in some skill or trade, but also as members of a team that produces goods and services. The division of labor and the pursuit of profit encourage human cooperation.
In a market economy people are paid, and businesses earn profits (or incur losses) strictly according to how good a job they do in meeting consumer demand. A good definition of capitalism in this regard would be: “Give me that which I want, and I will give you that which you want.”
Inequalities of income are inevitable because of competition—some businesses and entrepreneurs do better than others. The key point, though, is that the market is fluid. Businesses can change or improve; workers can find more profitable enterprises or better ways to apply their skills.
To socialists, it is not just generic “inequality” that is wrong and has to be eliminated by government, there is also the so-called “Iron Law of Oligarchy.” This is the insight that in every organization or activity, a few people will typically emerge as the leaders or top producers. Thomas Jefferson called this the phenomenon of a “natural aristocracy.” We see it with “elite” athletes in professional sports; “top-of-the-chart” musicians and entertainers; Fortune 500 companies; lists of the top one hundred doctors, lawyers, or schools; and so forth. In a market economy, such “elite” individuals and institutions can demand higher wages or tuitions or whatever than the average. To most of us, there is nothing wrong with this. But socialists, and sometimes mere bureaucrats, often think differently.
The great H. L. Mencken noted that all governments, not just explicitly socialist ones, are enemies of the most energetic, productive, and motivated. In his words:
All government, in its essence, is a conspiracy against the superior man: its one permanent object is to oppress him and cripple him. If it be aristocratic in organization, then it seeks to protect the man who is superior only in law against the man who is superior in fact; if it be democratic, then it seeks to protect the man who is inferior in every way against both. One of its primary functions is to regiment men by force, to make them as much alike as possible and as dependent upon one another as possible, to search out and combat originality among men. All it can see in an original idea is potential change, and hence an invasion of its prerogatives. The most dangerous man to any government is the man who is able to think things out for himself, without regard to the prevailing superstitions and taboos.
Thomas J. DiLorenzo, The Problem with Socialism (New Jersey, NJ: Regnery, 2016), 22-36,
You would think a communist and a libertarian would be diametric opposites. But not in 2016, the year party politics went completely off the rails during the race to nominate the worst possible candidate:
Gov. Gary Johnson, the Libertarian Party candidate for president, said that he agrees with 73 percent of what Sen. Bernie Sanders (I., Vt.) says, citing that libertarians agree with socialism as long as it’s voluntary.
This one is personal for me… it involves learning through reading and my home town, Detroit:
In this first video in the new FIREWALL series, host Bill Whittle shows what four, five, six, seven or more decades of Death by Democrats has done to our nation’s cities.