Latinos Know First-Hand Why Socialism Fails
(Washington, D.C.) – Due to the recent resurgence of socialism as an economic model dressed up in new terms, scholar Mark Perry has highlighted his 1995 essay “Why Socialism Failed” which examined why the system is flawed in premise as well as in practice. He explains that even the latest example of a socialist country – Venezuela – has failed because the economic model does not incentivize or reward production. Nevertheless, the resurgence of socialism may not necessarily indicate wanting an end to economic freedom, but rather an expanded welfare state, as polls show.
Daniel Garza, President and Chairman for The LIBRE Institute, released the following statement:
“The appeal of socialism is always there for some, but time and again we’ve seen this model fail millions, spreading misery, poverty, and famine in its wake. Venezuela, Ecuador, Bolivia, and Cuba are the most recent examples of our time. There is no positive outcome to central planning like socialism, or communism for that matter. Only the promise of giving up freedom for security has any appeal.
But it is a false promise. That’s because, in a very real way, centralizing more and more decision-making and treasure in the federal government is an increase in federal power. Every increase in federal taxation is a diminishment of an individual’s liberty, every new federal mandate makes us less free, and every new government rule or regulation derives from a politician’s desire to modify the behavior of Americans and their way of life. When government has imposed itself on the citizenry too much, it becomes a barrier to opportunity and hinders the freedom necessary for progress.
Only free market capitalism has proven to be both moral and conducive to prosperity. History shows that it was through laissez-faire capitalism that Americans were able to produce, innovate, and provide for each other. We profit by making others’ lives better. Many in our community have come to the U.S. looking for a place that provides opportunity and rewards hard work – something we didn’t have in our own countries. Latin America is filled with examples of failed socialism – and communism. Only free societies based on private property, limited government, sound money, free trade, and the rule of law have been able to prosper and free themselves from those who just want to rule.”