One doesn't need to use Hitler, Stalin or Mao ....
They think their prescription for "cutting up the pie" will lead to prosperity... just like central-planners since time immemorial.
The historical reality is that Soviet Russia had an enormous ideological impact on much of the 20th century. And even though it had been through a genuine socialist revolution in 1917, it had rather quickly degenerated into a bureaucratic authoritarian regime called Stalinism.
Like Trotsky explained in already in the 1920s, a bureaucratically planned economy does not work. In a sufficiently simple economy (small chains of dependencies etc) it can work to a certain extent and even be superior to capitalism for a while, but in the long term, Trotsky predicted (in the early 1930s!) that the Soviet Union would eventually collapse under its own weight unless his Left Opposition would succeed in its political revolution aimed at obtaining a true democracy: both politically (multiple parties) and economically (democratically planned economy). However, Stalin has brutally murdered anyone involved in the Left Opposition, including, eventually, Trotsky himself.
Thanks for the lesson on Trotsky! Very interesting. From wikipedia:
Leon Trotsky believed that central planners, regardless of their intellectual capacity, operated without the input and participation of the millions of people who participate in the economy, and would therefore be unable to respond to local conditions quickly enough to effectively coordinate all economic activity.
[23 Writings 1932-33, P.96, Leon Trotsky.
It may be on the surface surprising that Trotsky agreed with (and possibly read about) Ludwig von Mises' demolishment of central planning in the "Socialist Calculation Debate"
http://en.wikipedia.org/wiki/Socialist_calculation_debate, culmanating in his book
Planned Chaos.
[This book was published in 1947. The title comes from Mises's description of the reality of central planning and socialism, whether of the Russian or German pattern. This important work was written decades after Mises's original essay on economic calculation and includes the broadest and boldest attack on all forms of state control.
I think we need to distingish between _wb_'s use of the term "Socialism" to describe his preferred, untried government and the more common public use of the term to describe nations labeling themselves socialist since the early 20th century.
It is understandable that _wb_ does not want to associate socialist dictatorships with socialism. It is not so surprising dictatorships are led by villians, since It is not surprising that power hungry gangster type people fight to gain control of any centralized power capable of expropriation of citizens. Those states include those with the worst human rights abuses in history. By contrast, in countries more representative of respect for property rights (those rights beginning with ownership of your body) and limited government powers we saw dramatic increases in public (consumer) prosperity in the 20th century. This despite many left-leaning economists and sociologists consistently praising the Soviets and claiming that their model would overtake the west in "production". (citation needed)
I think, _wb_, that you are understandably advocating a socialist system, but without thuggish leaders. But even democratic driven socialst governments create a nexus of power - the power to "redistribute the pie" (overtly, in the name of various social goals, covertly for political interest). This pie is a big prize for thuggish gangs of people in any country. Even if the power is broadened to thousands of local government offices, each becomes a fiefdom with force of law, with its own princes and favored class (the bureaucrats). Giving such branch offices the power to confiscate property is somehow not going to be a focal point for corruption?
Thanks also for the interesting idea that the USSR didnt want "democratic-driven socialist" experiments in europe. Hadn't considered it before.
I have a lot of sympathy for not wanting to mix the ideal "socialism" with socialism as practiced. By my same standards, I would have to admit that people apply the label "capitalistic" to nations which are far from free-market societies. I would prefer something like "interventionist capitalism" to describe them. Like _wb_ I don't see any society currently implementing my preferred form of governments (minarchist, anarcho-capitalist), but I become more and more skeptical that they are realistic in the face of the real world politics of power.
Capitalism is a beautiful and elegant multi-agent optimization algorithm that is quite effective at computing a local optimum of a particular objective function that alas is not a function designed to maximize progress and minimize suffering.
Why is it so hard to see that what the consumer wants is basically what gets produced?
Progress? There have been centuries of progress (increasing worker safety, productivity) enjoyed by the more-or-less market based economies. There is a continuous flood of progress in new innovations, and design and manufacturing process improvements - can the state do this so well?
Suffering? The market provides me a large variety of places to live-in, food to satiate my hunger and television to reduce my boredom, and medicines and doctors (though limited by law) to reduce suffering.
Thanks for the discussion. Im now curious about what power Trotsky wanted the state to sieze and what not, and in what form.
Edit his complete text is written in
"The Soviet Economy in Danger"
If a universal mind existed, of the kind that projected itself into the scientific fancy of Laplace – a mind that could register simultaneously all the processes of nature and society, that could measure the dynamics of their motion, that could forecast the results of their inter-reactions – such a mind, of course, could a priori draw up a faultless and exhaustive economic plan, beginning with the number of acres of wheat down to the last button for a vest. The bureaucracy often imagines that just such a mind is at its disposal...