Marx, Lenin, Trotsky, Stalin and the Soviet Union

Posted by PITHOCRATES - February 18th, 2014

History 101

Marx called for a Dictatorship of the Proletariat where the Workers controlled the Means of Production

Karl Marx did not like capitalism.  Or middle class people that used money to make money.  The bourgeoisie.  Who exploit the working man.  The proletariat.  The bourgeoisie used their capital to exploit the labor of the working man (i.e., taking a risk and investing in land, factories, machinery, labor, etc.) to make money.  While the working man slaved away at slave wages creating all the great things we have in the world.  Of course, the proletariat could not do any of this unless others took risks and invested in land, factories, machinery, labor, etc.

This was just not fair to Karl Marx.  Because the industrial bourgeoisie had all the power.  And their exploitation of the proletariat was nothing more than a dictatorship of the bourgeoisie.  So Marx created a socio-economic philosophy to address this dictatorship.  Marxism.  And called for a social transformation.  For working men everywhere to unite.  And break the chains that bound them in the dictatorship of the bourgeoisie.  Calling for a dictatorship of the proletariat.  For the workers to control the means of production.  In a new system that replaced capitalism.  Socialism.  Until they could usher in the true ideal.  Communism.

In capitalism the bourgeoisie get rich creating neat things people discover and want to buy.  In communism there would be no bourgeoisie using the means of production to make a buck.  Instead, wise and selfless people would determine what was best for the people.  Instead of free markets allocating scarce resources economic planners would.  And they’d do it better.  Because they are selfless.  Creating large surpluses that would go not into some rich capitalist’s bank account.  But they would fairly distribute this surplus among the working class.  So society as a whole would be better off.  Sounds great.  But if the market didn’t make the decisions of what to produce who did?  As it turned out for Marxism that was a very difficult question to answer.

Leon Trotsky was a Like-Minded Marxist and the number two Communist behind Lenin

The Russian people were growing tired of World War I.  And Tsar Nicholas.  In fact they had it with the Russian Empire.  Even before World War I.  Although serfdom was abolished in 1861 the lives of peasants didn’t improve much.  There was still famine.  And the serfs had to pay a lot to their former landlords for their freedom.  So there was revolutionary fervor in the air.  And a few peasant uprisings.  As well as a few revolutionaries.  Such as Vladimir Ilyich Lenin.  Who was a Marxist.  His anti-Tsarist political activity got him arrested and exiled a few times.  In fact, during World War I he was living in exile in Switzerland.  Hoping that the Germans would weaken Tsarist Russia enough to kick off a socialist revolution in Russia.

When revolution did break out Lenin was anxious to return to Russia.  But being in Switzerland posed a problem.  It was surrounded by warring countries.  Lucky for him, though, the Germans were anxious to close the eastern front of the war.  And a little revolution in Russia could do just that.  So they transported Lenin through Germany and helped him return to Russia.  They travelled north.  Took a ferry to Sweden.  Then by train to Petrograd.  Formally Saint Petersburg (Peter the Great’s new capital on the Baltic Sea).  Which was later renamed Leningrad.  And then later renamed Saint Petersburg.  Where he would lead the Bolshevik Party.  And the world-wide socialist revolution against capitalism.

Leon Trotsky was a like-minded Marxist.  And an anti-militarist.  He had a falling out with Lenin but eventually reunited.  With Trotsky becoming the number two communist behind Lenin.  Trotsky addressed a problem with Marxism for Russia.  Socialism was to be the final step AFTER capitalism.  Once there was a strong industrial proletariat.  Russia didn’t have that.  For it was one of the least advanced countries in the world.  An agrarian nation barely out of the Middle Ages.  So Russia had to industrialize WHILE the proletariat took over the means of production.  Which brought up a big problem.  How could a backward nation industrialize while having a revolution?  How could they do this without other advanced capitalistic countries coming to the aid of the bourgeoisie?  Which Trotsky answered with his Permanent Revolution.  For the Russian socialist revolution to be successful there had to be socialist revolutions in other countries, too.  Thinking more in terms of a worldwide revolution of industrialized states.  And not just in Russia.  Something another Marxist disagreed with.  Joseph Stalin

Communist States have Guards on their Borders to prevent People from Escaping their Socialist Utopia

During these revolutionary times workers’ councils were appearing throughout the country.  Soviets.  Which helped stir up the revolutionary fervor.  In 1917 the imperial government fell.  The Bolsheviks killed the Tsar and his family.  And Russia fell into civil war.  Which the Bolsheviks won in 1922.  And formed the Soviet Union.  Or the Union of Soviet Socialist Republics (USSR).  That stretched from Eastern Europe to the Pacific Ocean.  Under the rule of Vladimir Ilyich Lenin.  Until he died in 1924.  Then Joseph Stalin took over after a brutal power struggle.  Even exiled Leon Trotsky.  And established totalitarian rule.  Stalin created a planned economy.  Rapid industrialization.  And collectivization.  As well as famines, forced labor, deportation and great purges of his political enemies.  To strengthen his one-party rule.  To protect the socialist revolution from a return of capitalism.

The Russian Revolution was the only successful socialist revolution in Europe.  The dictatorship of the proletariat did not happen as Lenin and Trotsky had envisioned.  So Stalin abandoned the idea of Permanent Revolution.  And adopted Socialism in One Country instead.  To strengthen the Soviet Union.  And not support a world-wide socialist revolution against capitalism.  In direct opposition of Trotsky.  To aid in the USSR’s industrialization Stalin made a pact with the devil.  Adolf Hitler.  And entered an economic agreement that would allow Hitler to build and test his war machine on Soviet soil that he would use in World War II.  Then came the Treaty of Non-aggression between Germany and the Union of Soviet Socialist Republics.  And the secret protocol.  Where Nazi Germany and the Soviet Union agreed to conquer and divvy up the countries located between them.

Trotsky did not like what the Soviet Union became under Stalin.  An oppressive dictatorship of Joseph Stalin.  Not the dictatorship of the proletariat envisioned by Karl Marx.  And he didn’t like that pact with a militarist Nazi Germany.  He predicted that Stalin’s USSR would not last.  Either suffering a political revolution like Tsar Nicholas suffered.  Or it would collapse into a capitalist state.  Stalin disagreed.  And killed him and his family.  Getting rid of the last of the old Bolsheviks.  Leaving him to rule uncontested until his death in 1953.  Exporting communism wherever he could.  Where it killed more people than any other ideology.  Until the great and brutal socialism experiment collapsed in 1991.  For Trotsky was right.  It could not survive when a better life was just across a border.  Which is why all of the communist states have guards on their borders.  To keep their people from escaping their socialist utopia.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Communism, Karl Marx, Marxism, Surplus Labor and the Labor theory of Value

Posted by PITHOCRATES - August 20th, 2013

History 101

(Originally published December 13, 2011)

Some would call Putting Profits before People Heaven if they had Lived in the Caring Hell of Communism

No ideology killed more people than communism.  In total numbers.  Such as Joseph Stalin in the Soviet Union.  Or Mao Tse-tung in the People’s Republic of China.  Or as a percentage of population.  Where Pol Pot’s Cambodian genocide holds this honor alone.  These communist leaders killed their people directly for political purposes.  Or starved them to death because of agrarian reforms that produced famines.  All in the name of freeing their people from the horrors of capitalism.

Heaven and hell.  That’s how a defector who escaped communism and made it to capitalism would describe what it’s like to live under each system.  Capitalism would be heaven.  And communism would be hell.  The problem with communism was that it didn’t work.  Economically.  People lived in want of the basic staples of life.  And often went hungry.  When they didn’t starve to death by yet another famine.  And if they complained or spoke out against the system they risked torture.  Or they simply just disappeared.  Banished to a work camp.  A reeducation camp.  Or killed.  So it’s no surprise that people trapped in these countries tried to escape.  Which is why communist states were oppressive police states.  To prevent people from escaping their horrible lives.

And yet to this day some people still hold up communism as the ideal socioeconomic system.  The one that cares about the people.  The one that puts people before profits.  Unlike capitalism.  Which puts profits before people.  Of course some would call putting profits before people heaven.  Especially if they had lived in the caring hell of communism.

Communism as an Economic System is an Utter and Abject Failure

Those who champion communism don’t blame the ideology.  They say it’s the people.  The few who use the ideology for personal gain.  And by few they mean basically everyone.  But if everyone is doing it it’s not the people.  It’s the ideology.  And it goes back to its utter and abject failure as an economic system.

Communism goes back to Karl Marx.  The guy that coauthored the Communist Manifesto in 1848.  And from which we get the terms Marxism.  And Marxist.  To describe varying forms of communism.  And communists.  He’s the guy who said that capitalism exploited the working man.  Those with money (capital) who owned factories, the industrial bourgeoisie, charged more for their goods than they paid their workers to make those goods.  Because Marx believed the value of any good was the labor that made it (the labor theory of value), this excess value (profit) was a labor surplus.  And belonged to the worker.  So he encouraged class conflict.  For the proletariat (the working class) to rise up and take over the means of production from those who owned it.  These middle class capitalists.  The industrial bourgeoisie.  And establish a dictatorship of the proletariat.  So the bourgeois capitalist pig-dogs couldn’t exploit the proletariat any more.  And everyone would then live happily ever after.

But no one ever did.  Like in capitalism.  Where happiness abounds.  Because, in capitalism, the market determines prices.  Not some bureaucrat counting up labor inputs through the manufacturing process.  From the mining of resources.  To the final assembly.  Which can make things very expensive.  And, worse, unwanted by the people.  Because when the market sets the price and assigns value, the market tells people what to make.  Normally when something is a hot seller it tells manufacturers to make more of it.  To cash in on those high prices.  So they do.  And people tend to buy this surge in products.  But when the market isn’t setting the price and assigning value, the market can’t tell people what to make.  So a bureaucrat must.  Which is what happens in communism.  Bureaucrats decide everything.  From what to make.  To the allocation of resources.  To the selling price.  And the things they decide to make are rarely what the people want.  Explaining why stores in communist countries were full of stuff no one wanted to buy.  And why people had to stand hours in line to get the things they did.  Or paid more on the black market.  Which is why communism as an economic system is an utter and abject failure.  And why people wanted to escape it.  Their only obstacle being that brutal and oppressive police state.  Which was necessary because if everyone left that wanted to the communist leaders wouldn’t have anyone to provide for them.

There are no Such Things as Market Failures under Capitalism

Communism was one of the worst man-made tragedies to ever befall man.  Karl Marx was wrong.  And his asinine theories killed tens of millions of people.  People enjoy life and prosper under capitalism.  Under communism they set records for genocide.  Why?  Because the communist economic model is an utter and abject failure.

The struggle between communism and capitalism was an economic one.  And pitted the market against bureaucrats who thought they were smarter than the market.  But it turned out they weren’t.  Not by a long shot.  And despite this history people are constantly talking about market failures and the evils of capitalism.  Much like Joseph Stalin, Mao Tse-tung and Pol Pot.  But for them it was never about the economics.  It was about the power.  Much like it is today.  Because there are no such things as market failures under capitalism.  It’s the bureaucrats who fail.  Not the markets.  At least, based on all recorded history.

Markets fail only when they aren’t free.  They fail when bureaucrats insert themselves into the economic process.  Via regulatory policy.  Or high taxes.  When they try to shape market forces to a political end.  And when they do it is capitalism no more.  It’s crony capitalism.  Or worse.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

2012 Endorsements: Karl Marx

Posted by PITHOCRATES - October 29th, 2012

2012 Election

Because Workers just don’t Spontaneously Join Together into a Functioning Business they need Capitalists

Karl Marx is the father of socialism.  And communism.  He was also the author (along with Friedrich Engels) of the Communist Manifesto.  The 19th century book that said, “Let the ruling classes tremble at a Communistic revolution.  The proletarians have nothing to lose but their chains.  They have a world to win.  WORKINGMEN OF ALL COUNTRIES, UNITE!”  Some people heeded his advice.  Vladimir Ilich Lenin, Joseph Stalin, Mao Zedong, Kim Il-sung, Fidel Castro, Ho Chi Minh and Pol Pot, to name a few.  The greatest mass murderers of all time.  No ideology has killed more than communism.  Not even the socialist Adolf Hitler, leader of the National Socialist German Workers’ Party (more commonly known as the Nazi Party) killed more.

According to Marx the history of society has been a class struggle.  Before his time it was the landed aristocracy oppressing the peasants in feudalism.  Then came along capitalism.  Where the new oppressor was the bourgeoisie.  The capitalist.  The employer.  The person that paid others to work.  And kept the profits of their labors.  Basically that means your boss.  Who you may hate while you’re working.  But if business is slow and layoffs are coming you desperately hope it’s someone else and not you.  And should you lose your job you desperately look for someone else who will pay you to work.  Because that’s the only way you know how to feed yourself and buy yourself nice things.  Like a home.  A cup of coffee at Starbucks.  Or a smartphone.  Marx called this oppression.  While most everyone else would call that being happy to have a job.  Because most workers don’t have a clue on how to run a business.  Let alone build one out of nothing.  For workers just don’t spontaneously join together into a functioning business.  They need capitalists.  For without capitalists there would be no jobs for workers.

So who does the bourgeoisie oppress?  The proletarians.  The laborers.  The employees of the bourgeoisie.  The people that actually do the work.  In his day that meant the factory workers.  Who were ruthlessly exploited in sweatshop conditions toiling away at monotonous tasks beneath the dignity of a human being.  The bourgeoisie was turning man into little more than a machine.  That worked until exhausted.  And what did they get for their labors?  Barely enough to survive.  Interestingly, whenever these cruel capitalists turned to actual machines to free these workers from this inhumane labor they cried out against this capitalist greed.  For replacing workers with machines was greedy.  And destroyed jobs.  So on the one hand these jobs oppressed the working class.  But on the other they were the best thing that ever happened to the working class.

Karl Marx summarized his Theory of Communism in One Tenet: The Abolition of Private Property

That’s something else Marx didn’t like.  Change.  The bourgeoisie was always changing things.  Updating their factories.  Installing new machinery.  Forcing the people that did things the old way out of a job.  Much like President Obama blames much of our economic woes on today.  And our high unemployment.  ATMs have put bank tellers out of a job.  Self-serve checkout lanes have put cashiers out of a job.  One man and a trenching machine put hundreds of ditch diggers out of a job.  The electric light put gas lighting workers out of a job.  And gas lighting put kerosene lighting workers out of a job.  And kerosene lighting put whale oil workers out of a job.  And whale oil lighting put candle makers out of a job.  It’s this modernization that Marx doesn’t like.  It disrupts labor.  Making the old worker obsolete.  So unions come in to protect these old jobs.  Allowing people to earn high wages without having advanced skills.  So instead of learning the skills to do the new jobs of the future they can keep doing the jobs of the past.  President Obama talks about bringing back high-paying manufacturing jobs.  Where workers toil away in those monotonous tasks that are beneath the dignity of a human being.  The kind of jobs the parents of college graduates toiled away at to put their kids through college.  So their kids wouldn’t have to do what they did.  Because the new jobs are better than the old jobs.  They’re easier.  Safer.  And offer higher pay.  But the downside is that they take more education and training.  Where some people will be better than others.  Which is unfair to those who aren’t as good.

Of course to help these factory owners pay these old jobs high wages they need to sell their goods at high prices.  Often at higher prices than the market price.  So they have to unlevel the playing field.  Governments pass minimum wage laws.  Union requirements.  And minimize the competition.  Either by restricting other domestic competitors by high entry costs.  Such as licensing fees.  Or by placing tariffs on lower priced foreign imports.  Raising their prices so they don’t cost less than the higher priced domestically produced goods.  Allowing these few factory owners to pay their employees these higher wages.  By forcing the general public to spend more money than they would have without these protections.  And thereby having to make sacrifices in their lives because they have less of their earnings for their own families.  For these reasons Marx called free trade exploitation.  Because free trade made it difficult for unskilled workers to earn high wages.

Marx summarized his theory of communism in one tenet: The abolition of private property.  For it was the bourgeoisie’s accumulation of private property that exploited the working class.  So no one can own anything.  Even laborers.  Because whatever private property the laborers accumulated came from only one place.  From the exploitation of other workers.  And that’s not the only thing Marx wanted to abolish.  He also wanted to abolish the past.  Even though he held on to the jobs of the past.  Marx advocated abolishing tradition, customs, institutions and religion.  Even families.  He wanted to replace education with communist indoctrination.  Much like they did in Nazi Germany.  In the Soviet Union.  In communist China.  North Korea.  Cuba.  Cambodia.  In a socialist/communist society everyone is equally subordinate to the state.  Where there is no private property.  No bourgeoisie.  Just a dictatorship of the proletariat.  A workers’ paradise.  A communist utopia.  Where no one looked anywhere but to the state for all of their needs.

If Karl Marx were Alive Today he would Likely Endorse the Democrat Candidates Barack Obama and Joe Biden

So what would it be like in this communist utopia?  This dictatorship of the proletariat?  There would be a heavy progressive tax.  (The US has a progressive tax rate.  And the Democrats want to raise tax rates higher yet at the high end.)  No right to inheritance.  (Democrats want to raise inheritance taxes.)  Confiscation of the property of emigrants.  (The Democrats want to highly tax/seize money invested outside of the United States that is trying to escape that heavy progressive tax.)  A central bank.  (The Federal Reserve is a central bank.)  Centralization of the means of communication into the hands of the state.  (The three television news networks have a Democrat bias.  Most newspapers have a Democrat bias.  And the two areas that don’t, talk radio and the Internet, the Democrats want to regulate.)  Free public education.  That indoctrinates our children.  (Public education tries to turn our children into Democrat voters.  By teaching the unfairness of capitalism.  America’s sins.  And by scaring our children about global warming.  And that only government can protect us from global warming by regulating private industry more.  Generous tuition subsidies help continue this work at our colleges.)

The Democrats further this class struggle, or rather create one, with their endless class warfare.  The top 1% isn’t paying their fair share of taxes.  The Democrats embraced the Occupy Wall Street movement.  Pitting the 1% against the 99%.  The Democrats employ racism.  Tuning any criticism of President Obama into a racist attack.  The Democrats try to scare women by warning them of the Republican war on women.  Saying ‘women should buy their own birth control’ is code for Republicans hate women and will oppress them if elected.  The Democrats constantly divide us.  Putting one group against another.  Trying to keep the people agitated.  And angry.  So they will welcome more government into their lives.  And the abolition of the capitalists’ private property through that heavy progressive tax.  The empowerment of unions.  Both private and public.  The restriction of our liberties through radical egalitarianism.  By punishing achievement.  So no one can rise to a higher level of success.  Or to a higher level of wealth.  So everyone is equally miserable in their workers’ paradise.

So if Karl Max were alive today who would he support in the 2012 election?  The party that includes a lot of Marxist doctrine in it all ready.  Marx would feel at home in the Democrat Party.  In fact it would be hard not to see a bit of communist revolution in it.  Especially with communist Fidel Castro and socialist Hugo Chávez already endorsing the Democrat Party candidates.  So it isn’t much of a leap to say that if Karl Marx were alive today he would likely endorse the Democrat candidates Barack Obama and Joe Biden.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Marx, Engels, Communist Manifesto, Capitalists, Bourgeoisie, Proletariat, Private Property, Soviet Union, Iron Curtain and East Berlin

Posted by PITHOCRATES - May 1st, 2012

History 101

Nationalism, Socialism and Communism forced a more Fair, Just and Equitable Society onto the People

Karl Marx and Friedrich Engels published the Communist Manifesto in 1848.  Launching a war against capitalism.  And private property.  Intellectuals and those in academia loved this stuff.  And labor leaders.  Because it was a path to power.  Especially for those who could not create wealth.  Unlike the great wealth producers.  Like the industrialists.  The entrepreneurs.  Small business owners.  The productive middle class.  That is, the capitalists.  Who work hard and achieve success.  By using their talent and ability to create wealth.  Moving up the economic ladder.  Creating income inequality.  The ultimate sin of capitalism.  According to Marx and Engels.  Intellectuals.  Academia.  And labor leaders.

In the Communist Manifesto Marx and Engels single out the accumulation of private property as the source of all our problems.  The capitalists, the bourgeoisie, have an insatiable appetite for private property.  They just can’t get enough of it.  And therefore oppress their workers, the proletariat, to maximize their property.  By paying them less and less to maximize their profits.  So they can use those profits to buy more and more property.  Which keeps the proletariat in perpetual and abject poverty.  And concentrates all the wealth into the few hands of the bourgeoisie.  And the only way to correct this great inequity was through a worker’s revolution.  Where the proletariat rises up and takes the private property of the bourgeoisie and gives it to the state.  So it belongs to everyone.  Especially to those who did not create it.  A very popular idea among those mired in perpetual and abject poverty.  Who are easily swayed to support this more fair, just and equitable distribution of other people’s wealth.

These progressive views enthralled Europe.  Especially after the Industrial Revolution created some appalling conditions for workers.  And they took this opportunity to put them into practice.  It was the 19th century that gave us the ‘fair’ political systems of nationalism, socialism and communism.  That began the process of transferring wealth from the capitalists to the anti-capitalists.  Precipitating the economic decline of Europe.  Making America the new economic superpower.  Which still maintained the principles of free market capitalism throughout the 19th century.  Until the anti-capitalistic teachings of Marx and Engels took hold in the progressive government of Woodward Wilson.  Bringing back the federal income tax Abraham Lincoln used to pay for the Civil War.  But unlike Lincoln Wilson had no intention of repealing it.  The federal income tax was here to stay.  As progressives began building that more fair, just and equitable society.

The Soviet Union Depended on the West for Food because their Forced Collectivized Farms couldn’t Feed their People

But the equitable movement in America was not as intense as it was in Europe.  Or Russia.  Which was taking the teachings of Marx and Engels to their logical end.  They had a worker’s revolution.  They became communist.  And forced that more fair, just and equitable society on their people.  Whether they wanted it or not.  And those who objected they systematically killed.  Or exiled to a Siberian gulag.  For Joseph Stalin’s rise to power was brutal.  As was the Soviet Union.  Even making a deal with Adolf Hitler to split Poland after the Nazi-Soviet invasion of Poland that launched World War II.  Then Hitler double-crossed their Soviet ally and attacked the Soviet Union.  And the Nazis nearly overran them.  The Nazis were in Leningrad (present day St. Petersburg).  At the gates of Moscow.  And in Stalin’s city.  Stalingrad.  The Soviets were unable to resist the Nazi onslaught.  The only thing that saved them was material aid from the capitalist West.  The Soviet T-34 tank (the best in the war).  And, of course, the millions of Soviet people the Soviet generals could throw into the Nazi killing machine to wear the Nazis down.

No one suffered like the Soviet people did during World War II.  The US and the UK each lost about a half million people.  A terrible loss.  The Soviets, though, lost about 25 million people.  A number that just numbs the mind.  This was the second Russian invasion that had brought an enemy to the gates of Moscow.  The first were the French a century earlier under Napoleon.  There wasn’t going to be a third.  Wherever their armies were at the end of World War II they pretty much stayed.  Turning Eastern Europe into a communist bloc.  And to make the Soviet Union a mightier nation they embarked on a rapid industrialization program.  To make it a modern power like those great nations in the West.  But unlike them they were going to do it the ‘smart’ way.  With their command economy.  Where their brilliant state planners would marshal their resources and do what the free market economies did in the west.  Only instead of taking about a century their Industrial Revolution would take only 5 years.

With no industrialists, entrepreneurs, small business owners or a middle class it fell upon the state planners to industrialize the Soviet Union.  As well as feed the Soviet people.  Well, they industrialized the Soviet Union.  But never brought it up to par with the industrialized West.  Worse, they couldn’t feed their people.  Despite having some of the most fertile farmland in all of Europe in the Ukraine.  The Soviet Union depended on the West for food.  Because their forced collectivized farms didn’t work like Marx and Engels said they would.  And they didn’t work in China, either.  Where another brutal communist dictator, Mao Zedong, killed tens of millions of his people by starving them to death.  By forcing a more fair, just and equitable society onto the Chinese.

Time Froze behind the Iron Curtain and People Lived pretty much Forever in the 1940s

At the end of World War II, like at the end of World War I, no one wanted to think about war anymore.  Winston Churchill, though, did.  For he saw what the Soviet Union was doing.  And saw the spread of their communism as a threat to Western Civilization.  He gave a speech at Westminster College in Fulton, Missouri, in 1946.  And said, “From Stettin in the Baltic to Trieste in the Adriatic an iron curtain has descended across the Continent. Behind that line lie all the capitals of the ancient states of Central and Eastern Europe.”  There was now an Eastern Europe.  An East Germany.  And an East Berlin.  All behind the Iron Curtain.  All in the Soviet sphere.  All communist.  Where they all suffered under a more fair, just and equitable society.  Whether they wanted it or not.  And they clearly did not.  For the Soviets had to build a wall in Berlin to prevent those in East Berlin from escaping to West Berlin.

The intellectuals, academia and labor leaders loved Joseph Stalin and the Soviet Union.  They thought communism was the enlightened future.  Probably because they didn’t have to live in it.  But what is surprising is that a lot of college students have this affection with communism.  To this day they still wear t-shirts emblazed with the beret-wearing Che Guevara.   Who helped Fidel Castro bring that more fair, just and equitable society to the Cubans.  Who have been trying to escape it ever since by practically swimming to Florida and free market capitalism.  But the college students and their professors still yearn for a Soviet-style economy in the United States.  And condemn capitalism as they sit in coffee bars sipping their lattes.  Enjoying social media on their smartphones.  Wearing the latest fashions.  Enjoying the latest movies.  The newest music.  And dream of that more just society.  Where they redistribute wealth fairly and equitably.  And the rich pay their fair share.  Just like in East Berlin.  Where life was fair.  But it was nowhere as enjoyable as in the unfair West.

Time froze behind the Iron Curtain.  When West Berlin enjoyed the best Western Civilization had to offer in music, fashion, food, entertainment, etc., East Berlin didn’t.  For they were frozen in the 1940s.  Western music was decadent.  So instead of rock and pop music you listened to classical music.  Instead of the latest Hollywood movies you went to the ballet.  You didn’t watch Western television.  Read Western books.  Or newspapers.  No.  You only saw things approved by state censors.  And that were patriotic.  Why?  To prevent their people from seeing how much better life was on the other side of the Iron Curtain.  Where they enjoyed the latest and the best of everything.  Whereas inside the Iron Curtain you went to the black market for any real luxuries.  Like a pair of blue jeans.  Which they didn’t sell in East Berlin.  Because they were decadent.  Why, they wouldn’t even sell a t-shirt with a communist icon on it.  Because you just didn’t wear something like that in the 1940s.  But college kids will attack capitalism.  And support the fairness of socialism and communism.  Even though the things they enjoy come from free market capitalism.  And are simply not available in the communist command economy.  Because the accumulation of private property is the greatest sin of capitalism.  And not allowed under communism.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Communism, Karl Marx, Marxism, Surplus Labor and the Labor theory of Value

Posted by PITHOCRATES - December 13th, 2011

History 101

Some would call Putting Profits before People Heaven if they had Lived in the Caring Hell of Communism

No ideology killed more people than communism.  In total numbers.  Such as Joseph Stalin in the Soviet Union.  Or Mao Tse-tung in the People’s Republic of China.  Or as a percentage of population.  Where Pol Pot’s Cambodian genocide holds this honor alone.  These communist leaders killed their people directly for political purposes.  Or starved them to death because of agrarian reforms that produced famines.  All in the name of freeing their people from the horrors of capitalism.

Heaven and hell.  That’s how a defector who escaped communism and made it to capitalism would describe what it’s like to live under each system.  Capitalism would be heaven.  And communism would be hell.  The problem with communism was that it didn’t work.  Economically.  People lived in want of the basic staples of life.  And often went hungry.  When they didn’t starve to death by yet another famine.  And if they complained or spoke out against the system they risked torture.  Or they simply just disappeared.  Banished to a work camp.  A reeducation camp.  Or killed.  So it’s no surprise that people trapped in these countries tried to escape.  Which is why communist states were oppressive police states.  To prevent people from escaping their horrible lives.

And yet to this day some people still hold up communism as the ideal socioeconomic system.  The one that cares about the people.  The one that puts people before profits.  Unlike capitalism.  Which puts profits before people.  Of course some would call putting profits before people heaven.  Especially if they had lived in the caring hell of communism.

Communism as an Economic System is an Utter and Abject Failure

Those who champion communism don’t blame the ideology.  They say it’s the people.  The few who use the ideology for personal gain.  And by few they mean basically everyone.  But if everyone is doing it it’s not the people.  It’s the ideology.  And it goes back to its utter and abject failure as an economic system.

Communism goes back to Karl Marx.  The guy that coauthored the Communist Manifesto in 1848.  And from which we get the terms Marxism.  And Marxist.  To describe varying forms of communism.  And communists.  He’s the guy who said that capitalism exploited the working man.  Those with money (capital) who owned factories, the industrial bourgeoisie, charged more for their goods than they paid their workers to make those goods.  Because Marx believed the value of any good was the labor that made it (the labor theory of value), this excess value (profit) was a labor surplus.  And belonged to the worker.  So he encouraged class conflict.  For the proletariat (the working class) to rise up and take over the means of production from those who owned it.  These middle class capitalists.  The industrial bourgeoisie.  And establish a dictatorship of the proletariat.  So the bourgeois capitalist pig-dogs couldn’t exploit the proletariat any more.  And everyone would then live happily ever after.

But no one ever did.  Like in capitalism.  Where happiness abounds.  Because, in capitalism, the market determines prices.  Not some bureaucrat counting up labor inputs through the manufacturing process.  From the mining of resources.  To the final assembly.  Which can make things very expensive.  And, worse, unwanted by the people.  Because when the market sets the price and assigns value, the market tells people what to make.  Normally when something is a hot seller it tells manufacturers to make more of it.  To cash in on those high prices.  So they do.  And people tend to buy this surge in products.  But when the market isn’t setting the price and assigning value, the market can’t tell people what to make.  So a bureaucrat must.  Which is what happens in communism.  Bureaucrats decide everything.  From what to make.  To the allocation of resources.  To the selling price.  And the things they decide to make are rarely what the people want.  Explaining why stores in communist countries were full of stuff no one wanted to buy.  And why people had to stand hours in line to get the things they did.  Or paid more on the black market.  Which is why communism as an economic system is an utter and abject failure.  And why people wanted to escape it.  Their only obstacle being that brutal and oppressive police state.  Which was necessary because if everyone left that wanted to the communist leaders wouldn’t have anyone to provide for them.

There are no Such Things as Market Failures under Capitalism

Communism was one of the worst man-made tragedies to ever befall man.  Karl Marx was wrong.  And his asinine theories killed tens of millions of people.  People enjoy life and prosper under capitalism.  Under communism they set records for genocide.  Why?  Because the communist economic model is an utter and abject failure.

The struggle between communism and capitalism was an economic one.  And pitted the market against bureaucrats who thought they were smarter than the market.  But it turned out they weren’t.  Not by a long shot.  And despite this history people are constantly talking about market failures and the evils of capitalism.  Much like Joseph Stalin, Mao Tse-tung and Pol Pot.  But for them it was never about the economics.  It was about the power.  Much like it is today.  Because there are no such things as market failures under capitalism.  It’s the bureaucrats who fail.  Not the markets.  At least, based on all recorded history.

Markets fail only when they aren’t free.  They fail when bureaucrats insert themselves into the economic process.  Via regulatory policy.  Or high taxes.  When they try to shape market forces to a political end.  And when they do it is capitalism no more.  It’s crony capitalism.  Or worse.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

LESSONS LEARNED #68: ” Beware the demagogue, the champion of the poor, for he has dictatorial aspirations.” -Old Pithy

Posted by PITHOCRATES - June 2nd, 2011

Robespierre used the Sans-culottes

A telltale sign of royalty is a really nice pair of pants.  With a perfect, sharp crease.  But that’s today.  Back in the old days, it was a handsome pair of silk knee-breeches.  The wealthy in pre-revolutionary France all wore them.  I say ‘pre-revolutionary’ because it was not the thing to wear during the revolution.  In fact, a group of people who could not afford these fancy breeches took pride in their plain pants.  The poor working class in the cities.  Artisans and small shopkeepers.  The little guys.  Struggling to make a living.

These people did not wear the ‘culottes’ (French for ‘silk knee-breeches’) of the upper classes.  So they went ‘sans’ them (French for ‘without’).  Hence they were the Sans-culottes.  They were the people without silk knee-britches.  And the mob behind the French Revolution

They were Leftist radicals.  Anti-capitalists.  And the far-Left radical Jacques Roux used them for muscle.  Turned them against the bourgeouis (the middle class).  Caused a whole lot of unrest.  Some food riots.  And a massacre or two.  Roux was becoming too powerful so Maximilien Robespierre, a Jacobin, had him arrested.  Then he used the Sans-culottes to consolidate his power.  With the opportune assassination of Jean-Paul Marat (a Jacobin leader), Robespierre became the leader of the Jacobins and of the Revolution.  For awhile.  With the help of the Sans-culottes, he unleashed the Reign of Terror.  Marat’s assassin was a Girondin.  The Girondins were the political rivals of the Jacobins.  So Robespierre put Marat’s assassination to good use and cleaned house.  And by ‘clean house’ I mean killed as many of his political opposition as possible.  It was the time to kill.  If you didn’t like someone all you had to say was that he or she was a counter revolutionary.  And they got a date with the guillotine.  In all some 16,000 (or more) lost their heads during the Reign of Terror.  Including Robespierre himself.  Live by the guillotine.  Die by the guillotine.  And soon thereafter the Sans-culottes became less of a force as the government pulled back from the extreme Leftist radicalism of the Terror to a more conservative one.

Communist Leaders exploited the Proletariat

Marxism arose as a criticism of capitalism.  Which exploits the working class (according to Marxism).  The proletariat.  Who own nothing but their labor.  And are forced to sell it for day-wages to those who own the means of production.  The industrial bourgeoisie.  The proletariat wants to maximize their pay.  The bourgeoisie wants to maximize their profits.  Of course, one can only gain if the other loses.  Ergo, this is a class struggle.  Between the working majority.  And the capital owning minority.  Which is wrong according to Marxism.  And can only end in a proletarian revolution.  After which everyone will live a life of plenty in a classless, stateless, property-less society.  Because everyone will feel the love and work real hard to produce a lot.  Even though they won’t make an extra dime for all their extra work.  It will be a social utopia where society takes from those according to ability and gives to those according to need.  And they’ll sing workers’ songs as they eat and drink and scratch their fat bellies at the end of the work day.

As a social utopia, it’s a pretty nice one.  Especially to the working class who have worked some pretty hard lives.  So they are quick to show a lot of need.  And little ability.  Because those with the most ability have to work the hardest.  Whereas those with the greatest need get more stuff.  Even if they don’t work.  At all.  According to theory, at least.  The working class may be uneducated laborers, but they understood this.  Especially when a leader came along to lead a proletarian revolution.  I get more for working less?  I’m with you, brother.  There have been quite a few such revolutions.  Though there are some degrees of differences, we can call most of these communist revolutions.  Because communist leaders based their philosophy on some form of Marxism.

Many countries had communist revolutions.  Russia was the first.  It became the Soviet Union.  Then China.  It became the People’s Republic of ChinaNorth Korea.  And Cuba.  To name a few.  And how did the proletariat make out in those countries?  Well, suffice it to say it wasn’t quite the utopia they were expecting.  By fighting for the people, Joseph Stalin became one of the greatest mass murderers of all time.  Beating out Adolf Hitler by scores.  There was no utopia in the Soviet Union.  Unless you liked fear and oppression.  And going hungry and lacking the necessities of life.  Ditto in China.  Only their proletariat wasn’t urban workers.  They were rural farmers and peasants.  Forced into collectivized farms.  Where food production plummeted.  Resulting in one of the 20th century’s most horrific famines.  Between famine, fear and oppression, Mao Tse-tung gave Joseph Stalin a run for his money as the greatest mass murderer of all time.  Not sure who won as records are a little sketchy.  But they probably hold first and second place.  Don’t know much about North Korea because it’s such a closed society.  But they suffer some of the greatest famines of modern time.  And spend most of their nights in the dark as they have little energy (seen from space you can tell North Korea from South Korea by the lights).  And the Cubans have more than once tried to escape their social utopia by crossing the Atlantic Ocean in rickety boats and rafts to reach America. 

Life got worse for the working class in general under communism.  But it got pretty good if you were in the communist party.  It was that ‘from those according to ability to those according to need’ thing.  It didn’t work in practice.  Because it turns out people want to benefit from their labors.  Which is the basis of the proletarian revolution in the first place.  And making them work harder for less just wasn’t going to cut it.  Especially when life was better under capitalism.  For it was better when the capitalist bourgeoisie did the exploiting than the communist party.  And it wasn’t just because of the famine, fear and oppression that came with the communists.  Because the capitalists paid you according to the quality of your labor.  Not by the quantity of your need.  So the harder you worked, the more they paid you.  And that’s the kind of thing that’ll get people to work harder.  Incentive.

Peron exploited the Descamisados

Tim Rice is one of the greatest lyricists in musical theater.  Andrew Lloyd Webber‘s greatest works were those he did with Rice.  Joseph and the Amazing Technicolor Dream CoatJesus Christ Superstar.  And Evita.  The story of Eva Perón.  Wife of Juan Perón.  And their rise to power in Argentina.  With the help of their descamisados.  The poor, shirtless workers.  Who loved Eva Perón.  As she loved them.

The musical Evita has a Che Guevara-like narrator named Che who tells the story.  And participates.  He sees the Peróns for who they are.  Sees how they exploit the descamisados for personal gain.  And bankrupts the nation.  Rice does a great job of turning this story into some great songs.  This story of a workers’ revolution is accessible.  And entertaining.  Here are some of the lyrics.  Starting with the workers’ demands.

Nationalization of the industries that the foreigners control
Participation in the profits that we make
Shorter hours
Higher wages
Votes for women
Larger dole
More public spending
A bigger slice of every cake

The hallmarks of any workers’ revolution.  Which of course the leader of the workers’ revolution promises in exchange for their vote.  Even though he would prefer not to have to deal with that pretense.

It’s annoying that we have to fight elections for our cause
The inconvenience–having to get a majority
If normal methods of persuasion fail to win us applause
There are other ways of establishing authority

Then the secret police echo these thoughts.

We have ways of making you vote for us,
or at least of making you abstain

Perón wins the election.  And gives his first speech on the balcony of the Casa Rosada.

Argentinos! Argentinos! We are all shirtless now!
Fighting against our common enemies–
Poverty, social injustice, foreign domination of our industries!
Reaching for our common goals–
Our independence, our dignity, our pride!
Let the world know that our great nation is awakening
and that its heart beats in the humble bodies of Juan Peron
and his wife, the first lady of Argentina,
Eva Duarte de Peron!

Yes, he is just one of them.  Shirtless.  And poor.  Though he says this from the ‘pink’ house.  Which is more palace than house.  Che is in the crowd.  And is not amused.

As a mere observer of this tasteless phenomenon, one has to admire the stage management
There again–perhaps I’m more than a mere observer –
listen to my enthusiasm, gentleman! Peron! Peron! Peron!
Look, if I take off my shirt, will you-

At which point the security police beat him and take him away.  For they don’t like dissenters.  Typical revolutionary stuff.  But in a story told so well.  Thanks to the great lyrics of Rice.  And the music of Webber.  And after Perón gets his power, how does Argentina do?  Does Perón deliver that Promised utopia?  Che explains in a brief but passionate monolog.

What’s new Buenos Aires? Your nation, which a few years ago had the second largest gold reserves in the world, is bankrupt! A country which grew up and grew rich on beef is rationing it! La Prensa, one of the few newspapers which dares to oppose Peronism, has been silenced, and so have all other reasonable voices! I’ll tell you what’s new Buenos Aires!

It’s a story as old as time.  The revolutionary leaders get richer.  The workers get poorer.

(The original Broadway cast recording includes Patti LuPone as Eva and Mandy Patinkin as Che.  Who’ve set the bar for these roles.  You can’t get better.  So buy this recording.  You won’t regret it.)

Famine, Fear and Oppression never take a Holiday

Sans-culottes, proletariats, descamisados or some other poor class of people a revolutionary leader champions, it always ends the same.  The leaders of the revolution always seem to do better.  And the poor class continues to suffer.  Often worse off than they were before.  Some leaders come and go.  But the suffering of the masses usually lingers.  For famine, fear and oppression never take a holiday.  But liberty does.  Sadly.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

FUNDAMENTAL TRUTH #65: “The only thing the market is inefficient at is funneling money to anti-business politicians.” -Old Pithy

Posted by PITHOCRATES - May 10th, 2011

The Natural Order and a good Last Name

There are two types of people in America.  Those who work.  And elitists who want others to work for them.  It’s been this way since the dawn of civilization.  One group asserted their power over the masses.  The masses then worked.  The ruling elite didn’t.  They just gave the work orders.  The masses dutifully followed their orders and grew the food.  The ruling elite took in the bounty and ate until they were full.  And then some.  While famine thinned out the masses.  It was the natural order once upon a time.  And those who held dominion over the land liked it.

Land, then, was key.  The aristocracy owned the land.  Hence we called them the landed aristocracy.  They owned the land, the food and the wealth.  And the people.  In European and Russian feudalism there were serfs.  In the antebellum American South there were slaves.  The landed aristocracy may buy and sell land and move.  But the serfs/slaves stayed on the land.  Forever.  As their parents did.  As their children would.  It was the natural order.

Your name was very important in the landed aristocracy.  For land was hereditary.  As was wealth.  As was political power.  And it stayed this way for a long time.  While everyone who worked farmed.  But over time, something happened.  People got smarter.  They were able to grow food surpluses.  And they took these surpluses to markets.  Which became cities.  Where we saw the rise of artisans.  Skilled people who made tools and crafts that further improved our lives.  Allowed people to leave the farms.  And create a middle class.  Greatest thing that ever happened for the masses.  It allowed a way out from the back-breaking toil of working the land.  Even if you didn’t have a ‘good’ last name.

Representative Government changes the Natural Order

Of course, not everyone was keen about this.  Because it disrupted the natural order of things.  And threatened the old power structures.  Some adjusted.  Some shared the power.  Like in England.  Where there was a representative government.  There was a bicameral house.  The Parliament.  Representing all people.  The rich in the House of Lords.  And the common people in the House of Commons.  And, of course, the king.  Who represented the king.  And the state.  Now, kings like to wage war.  Conquer.  And add to empire.  But it takes soldiers and sailors to fight.  And money to pay for armies and navies.  Which the king didn’t have.  The rich people had the money.  The landed aristocracy.  The Lords.  So the king just couldn’t wage war unless Parliament consented.  Pretty nice thing this check on power.  This representative government.  It made for happy subjects.

It wasn’t like this in France. While the English were checking the king’s power, the French monarchy was absolute.  It  could do whatever it wanted.  And did.  Spent a lot of money.  Ran up great debts.  Fought a lot of wars.  Including the Seven Years’ War that lost much of French North America to Great Britain.  And helped the Americans in their War of Independence.  Helping them to gain their independence from the British monarchy.  Which proved to be a deadly game for the French monarchy.  For the French people grew fond of representative government themselves.  And they thought if the Americans can overthrow king-rule maybe they could, too.  So they gave it a try.  The French Revolution was a bit bloodier than the American Revolution, but it got the job done.  France, too, had a representative government.  Until Napoleon declared himself emperor, of course.  And then he did a lot of kingly things.  Waged war.  Conquered.  Built empire.  And added to the debt.

Great Britain gave up on minority rule.  France tried to hang on to it, lost it then Napoleon got it back.  The reason minority rule failed in these countries is because a minority ruling power needs money.  And it was easier to get money in an agrarian economy.  When all the wealth was concentrated in the few who owned the land.  The rise of a middle class changed all of that.  Artisans and merchants made a lot of money.  Some even without ‘good’ last names.  The people who didn’t have to kiss any royal ass to get or maintain their wealth.  It was a whole new game out there.  Minority rulers needed to find another way to amass money and power.  And they found it.  In the ‘lie’.

Lies from Marxism to Socialism

A ruling power lying wasn’t anything new.  But some of the lies were.  Marxism, for example, was a new brilliant lie.  It made those the ruling elite wanted to oppress ask to be oppressed.  In the name of egalitarianism.  Rise up you miserable oppressed factory workers.  Attack the industrial bourgeoisie (i.e., the middle class).  You have nothing to lose but your chains.  Karl Marx may have believed the claptrap he wrote.  But those who used it could care less about the underlying philosophy.  They just liked the power it gave them.  So those who aspired to rise to power and rule over the majority led worker revolutions.  And after they won, the workers went back to suffering just as they had before.  Only they had less.  Because the communist commissars knew jack squat about the means of production.  But that was okay.  For it just helped to enslave the masses more.  Well, that.  And the brutal police state that discouraged any inappropriate behavior.  Or thought.

It was a good run for the communist powers that be.  While the masses suffered they lived a very comfortable life.  Just like the landed aristocracy of old.  Unfortunately for them, their ruling policies sent their economies into nosedives.  And they suffered recurring famines.  Marxism was a failure.  The ruling elite knew it.  And most of the people knew it, too.  Often, those who could escape from their communist utopias did.  Because they were anything but utopian.  So those aspiring to ascend to the ruling elite needed a new lie.  And they found it in communism-light.  Socialism.  Which appealed to the people they wanted to oppress for the same reasons Marxism did.  It would stick it to the rich in an egalitarian utopia.

But there was little difference between Marxism and socialism.  Both systems tried to manage the economy.  And both did a horrible job.  Why?  Because state planning is not about improving the lives of those they rule over.  It’s about maintaining power.  An economy left alone will always outperform a managed economy.  Everyone knows this.  But if they leave the economy alone, how can the ruling elite amass power and wealth?  It can’t.  Ergo, the lie continues.  Not to improve the lives of the masses.  But to improve the lives of the ruling elite.  The minority power.  Who only ascends to power by a good lie.

Wealth Redistribution Killed the Golden Goose

The free market does have one inefficiency.  It does not enrich those who do not partake in it.  The ruling elite aspire to be in a minority rule for a couple of reasons.  First of all, when you’re stealing from and oppressing the people, the fewer people in the ruling elite the wealthier each member gets.  Which is what they want.  Wealth.  And being in the ruling elite gives them access to wealth.  Because they are so completely untalented that they could never make any wealth in the free market.  So they use the lie to acquire their wealth.  To live the good life.  Like the landed aristocracy of old.

So they become the champion of the working man and woman.  And promise to deliver that egalitarian society via wealth redistribution.  They promise to tax the rich.  And give to those who will vote for them.  It has proven to be a very effective system.  And in its heyday they were reaping in the money.  Even found a way to funnel tax money directly to them via public sector union dues.  But they just got too greedy.  Pulled too many people into the new aristocracy.  And too many people out of the work force who paid the taxes that paid for their comfortable lives of plenty.

The taxes and policies of the ruling elite have grown so anti-business that it’s reduced economic activity.  And tax generation.  So not only have they bloated the public sector with nonworking people and reduced the taxpaying workforce, they killed the golden goose as well.  And no lie may change the mess they created.  They may have no choice but to unfetter the free market.  And get real jobs.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,