Sunday, May 17, 2020

Socialism vs free market

With the onset of the virus many are saying that socialism would handle things better than capitalism which means it is time for a little review of history. Socialism was tried in many places but it failed every time. Examine closely the outcome in Germany after the war. The East under central control and the West under the free market. The same people with the same culture but different economic structure. The same is true of North and South Korea. It isn't often that such direct comparisons can be made. In Korea like Germany the country was destroyed and both sides started from scratch and one side far out performed the other. It is said that you only have to fly over Korea at night to see the dramatic difference with the South being lit up and the North all dark. Since starting out even after the war the population of the south has grown twice as fast and the GDP has grown 60 times faster. While there are many improvements that can be made to the free market system to consider socialism is not the answer.

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