Moving from Capitalism towards Socialism in America and Life in the Former Soviet Union

Posted by PITHOCRATES - October 28th, 2012

Week in Review

Clearly President Obama is trying to move the country away from laissez faire capitalism.  And towards something where the government has a much larger role in our lives.  Such as Obamacare.  More government into our lives.  The question is where does it end?  For it is a slippery slope.  In Europe there was capitalism before there was social democracy.  A transition from capitalism towards socialism without a revolution.   Does a social democracy end in socialism?  Which is a real concern as America is moving ever closer to the European social democracy.  For someone who lived in a full-blown socialist state, this trend isn’t a good one (see If You Had Actually Grown Up In A Soviet Country, This Is What You Would Have Experienced by Rob Wile posted 10/22/2012 on Business Insider).

“I grew up in a socialist country. And I have seen what that does to people. There is no hope, no freedom. No pride in achievement.

“And that’s what I see happening here.”

So begins an ad that’s been airing in the run-up to November elections, narrated and paid for by Thomas Peterffy, in support of Republican candidates.

Peterrfy, the CEO of Interactive Brokers, came to America in 1965 to escape Communist Hungary.

He fears a world where, if we’re not careful, “people will lose interest in really working hard and creating jobs. I think this is a very slippery slope.

“It seems like people don’t learn from the past…”

We turned to “Steeltown, USSR,” a book-length work of reportage from current Princeton University History Professor Stephen Kotkin, to see what life under socialism is really like.

Published in 1991, the book is Kotkin’s account of his trips to the Russian city of Magnitogorsk in the late-80s, on the eve of the fall of Communism, and his interviews with the city’s residents.

If you follow the above link you can see what it was like to live in a socialist country.  In the Union of Soviet Socialist Republics (USSR).  Here are some excerpts:

“This apartment, I waited 18 years for it. During that time, we lived four in one room. No one remembered what color the walls were. You couldn’t see them, they were so covered with our belongings stacked up to the ceiling. I worked and struggled and endured all manner of humiliation for eighteen years for this pathetic, unexceptional new apartment. It makes me sad and angry to think about it. How much evil has accumulated! I have so much on my soul!”

“If you work hard, they demand from you. You have to get up in front of everyone and make speeches; they give you medals with pompous names. So it’s best to stay quiet, not attract attention to yourself. Once in a while, you work like a bull; the remainder of the time, you rest.”

“No one makes a move until we see where the power lies. As soon as it is clear, we all quickly take that side. We’re completely dependent on them. Food, clothes, apartments, furniture, day care, summer camp, vacations — everything is allocated by them according to their lists, with which they rule over our lives. Everyone has something to lose. It might seem you have nothing, but they take something away, and you have even less.”

“A handful of Magnitogorsk youth were fortunate enough to gain acceptance to university in Sverdlovsk, the ‘capital’ of the Urals, or even to Moscow University. Yet even this select group often found itself back in Magnitogorsk upon graduation, unable (in some cases unwilling) to secure the necessary official permission to remain in the larger city.”

“For every 100 Magnitogorsk families, there were 96 radio receivers, 99 TV sets, 39 tape recorders, 34 photo cameras, 92 refrigerators, 70 washing machines and five cars.”

Sugar, meat, butter and sausages had to be rationed — they could only be purchased using coupons distributed at residences in accord with the number of people in the household.

Fewer than 50 percent of Magnitogorsk residents enjoyed their own self-contained apartments without living with the rest of their relatives. You had to qualify for new housing by having less than 9 square meters per person. And you couldn’t move.

“There were approximately 30,000 cars for the city’s 438,000 residents (135,000 households). Only 22,000 were privately owned… the wait to purchase a car was more than 10 years.”

“There was only ‘children’s’ shoes, ‘women’s’ boots or ‘men’s’ coats…Discounts or markdowns were not permitted, even if goods were not selling. There were no seasonal sales.”

“An individual established himself or herself in the community not by purchasing a home in a particular neighborhood but by landing a job in a favored shop. ‘The shop or work unit is an entire social milieu,’ one official explained. ‘It’s not a job, but a life.’ In short, the steel plant was not relaly a ‘business’; rather, it was an industrial welfare agency.”

“At home we get together with friends, sit around the talbe. All we do is talk about our problems, and insufficienceis, endlessly, until someone bangs the table and shouts, ‘Enough. No more about that.’ But what else can we discuss?”

This is where you end up when you move away from capitalism and towards socialism.  A grey and dreary life.  Long waiting lists for apartments and cars.  Where hard work is only rewarded with more hard work.  So workers strive to do the minimum.  You live in fear of the authorities because everything you have in life is dependent on how they felt towards you.  If you were quiet and suffered your privations quietly you experienced no new privations.  If you complained you suffered more privations.  The state allowed few to go to college.  And those that did rarely saw an improvement in their lives.  They rationed your food.  And forced you to live with your relatives in tiny apartments.  Everyone wore the same shoes, boots and coats.  And few found any enjoyment in life.

So should Americans be worried about sliding towards socialism?  Well, soon our health care will be dependent on some bureaucrat’s whim under Obamacare.  Student loans are now provided by the government.  More people are dependent on the government for their food than ever before.  And their housing.  The government is subsidizing green companies that can’t compete in the market place.  To provide ‘high-paying’ jobs in companies that often go bankrupt.  So a lot of what is happening typically doesn’t happen in laissez faire capitalism.  These are things that are closer to socialism than capitalism.

These expansions in the welfare state come courtesy of class warfare.  The government’s relentless attacks on those who don’t need government benefits.  Accusing them for not paying their fair share in taxes.  Creating anger in lower-income people.  And agitation.  To support further transfers of wealth.  All the elements of a worker revolution.  But without the actual revolution.  Because they’re doing it at the ballot box.

Life is better under capitalism.  Which is why athletes from behind the Iron Curtain left their socialist paradise whenever they could.  Ballet stars.  Even military jet pilots who flew their planes to freedom.  Unless Americans want a country like the country these people fled we probably should do something about our slide on that slippery slope.

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