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.

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LESSONS LEARNED #39: “Socialism is easier said than done.” -Old Pithy

Posted by PITHOCRATES - November 11th, 2010

The Bolshevik Revolution Gave Russian Peasants Freedom.  And Famine.

Russia was one of the most backward nations at the turn of the 20th century.  Feudalism was still the economic model.  The only European nation still using it.  There were two Russias.  Hungry and impoverished peasants.  And a rich and well-fed ruling elite.  Then World War I came.  Russia bled on the Eastern Front.  There was a lot of discontent.  Germany took advantage of this by returning the exiled Vladimir Lenin to Russia via Germany.  And it worked.  Marxist revolutionary fervor forced Tsar Nicholas II to abdicate.  Russia pulled out of the war.  Lenin led the Marxist Bolshevik Revolution against capitalism.  White and Red Russia plunged into civil war.  And a few assassination attempts later, Joseph Stalin launched the Red Terror to kill all enemies of the Soviet state.  Including the Romanov family.  When Lenin died, Stalin consolidated his power.  Through terror.  And he would rule by terror.

With capitalism suppressed, Stalin was ready to build the new socialist/communist state.  He industrialized the state (with foreign engineering and machinery).  He collectivized farms to increase output.  Soviet industry made a great leap forward.  But the cost was devastating.  Famine.  Forced deportations.  Terror.  Millions died.  And the quality of life for the common Russian peasant went into the toilet.  Anyone who complained was an enemy of the state.  There were chronic grain shortages.  Which were blamed on farmers hiding grain to force prices higher.  The solution?  Stalin deported or executed these farmers as enemies of the state.  But they never found any ‘hidden’ grain.

Dictators rise to power through terror and violence.  And they hold power by even more terror and violence.  To silence their enemies.  These enemies of the state.  You see, if you disagree with the dictator, you disagree with the state.  For they are one and the same.  So they get a little testy when their policies fail.  They blame others.  Attack those who are clinging to capitalism and liberty.  Who don’t submit themselves completely to the state.  And herein lies their fatal flaw.  Slaves don’t willingly work for the greater good.  They only do the bare minimum to minimize their pain and suffering.  Either the work or the state will kill them.  They know that.  So they work hard enough to keep the state from killing them.  But not too hard that the work does.  It’s a bleak world.  But that is the life of the slave.

China’s Great Leap Forward Resulted in Even Greater Famines

The communist/socialist movement spilled over into China from Russia.  Mao Tse-tung rose to power much like Stalin.  Ruthlessly.  He industrialized China.  And collectivized their farms into giant collective communes.  He forced peasant farmers into these communes.  Which lowered the quality of life for millions.  The result?  China’s industrial output did increase.  But, like in Russia, the cost was devastating.

The Great Leap Forward was their second five-year plan.  The plan was to increase grain harvests by using the power of the state to collectivize and direct giant farming communes.  Party members (i.e., career politicians who kissed communist ass) ran these communes.  They reported to Mao.  None of them were farmers, though.  But they acted like they were.  Trying some screwy new ideas that only reduced the harvest.  But, being good party men, they lied.  They reported record harvests.  As the lying went up the party chain of bureaucracy, party leaders made decisions based on the lie.  They took so much of the harvest for party members, cities and for export that the peasant farmers working on the communes starved in history’s greatest famines.  Note that ‘famines’ is plural.  Yeah, it was that bad.  Tens of millions starved to death.  All in the name of helping the poor and oppressed.

Everyone lives in fear in a totalitarian state.  Even members in the ruling elite.  The communes were supposed to increase the harvest.  So those responsible for that increase lied.  To minimize their own pain and suffering.  For they knew if they failed the greater common good, the state would come after them.  So they protected themselves.  At the expense of the peasant.  The life of the peasant/proletariat only got worse.  The Bolshevik Revolution was supposed to free them from the oppression of the bourgeois capitalists.  It only oppressed them more.

Using Capitalism to Attack Capitalism

The socialists/communists learned some valuable lessons.  Although they may be good at terror and violence, they didn’t have any real talent or ability.  And though they hate capitalism (because they lack any real talent or ability), they understood that they needed capitalists to be their bitch.  They couldn’t kill them.  Because if they did, nothing would get done.  No wealth created.  And they needed these people to create wealth.  Because they can’t take wealth if the wealth creators don’t create it.  With no wealth to take, they have nothing to give the masses.  To keep them dependent.  And subdued.  So this was the next phase in the socialist/communist revolution.  To exploit the wealth creators for state gain.

The social democracies followed the same general plan.  Attack capitalism.  Oppress the poor by making them dependent on the state.  But instead of using physical fear and intimidation, they used psychological fear and intimidation.  At election time.  They, the compassionate state, wanted to give them stuff.  The mean, cold-hearted capitalists wanted to take away their Social Security.  Eat their children.  And other nasty things.  It worked.  It got votes.

The problem they ran into was that populations grow.  And costs go up.  That meant the social democracies had to give more and more people these ‘benefits’.  While at the same time the costs of these ‘benefits’ kept going up.  And herein lies their fatal flaw.  To keep the people dependent (and docile) you have to keep raising taxes.  But if you raise taxes too much, you kill the golden goose.  Because you can push the wealth producers only so far.  If the state makes them work harder for less so others can enjoy the fruit of their labors, the state is for all intents and purposes enslaving these wealth producers.  And what do we know about slaves?  They don’t willingly work for the greater good.  They do the bare minimum to minimize their pain and suffering. 

Communist China Concerned About the United States’ Anti-Capitalistic Behavior

There are all sorts of ways they can do this.  If the cost of hiring employees is too great, businesses will hire fewer employees.  If taxes are too high, people will cut back on their spending and businesses will lay off workers because of the weaker demand.  If the investment climate is too unfavorable (say, because of a high capital gains tax), investors will invest their money where the climate is more favorable (and not create jobs).  If taxes get too high, the economy will go underground where people pay no taxes.  As more of this happens, the government collects less and less in taxes.  They get to a point where they simply can’t raise them anymore.  So they borrow.  And when they borrow to excess and cannot borrow any more, they have to do the unthinkable.  Cut the benefits that have so successfully enslaved so many people to the government.  And when governments try, the enslaved fight back.

Following the financial crisis of 2008, some debt-ridden nations tried to do just that.  Cut benefits to avoid bankruptcy.  Greece tried.  France, too.  Both had riots.  Other nations are at the tipping point.  Great Britain is making draconian cuts that the people aren’t too happy with.  Ireland is staring down bankruptcy and may need a Greece-like bailout.  (Interestingly, Ireland’s problems don’t stem from a fat social welfare state.  Their troubles resulted from a real estate bubble fueled by the European Central Bank keeping interest rates low.  They, like the U.S., saw no downside in cheap, risky mortgages.)  And, of course, Communist China is lecturing the United States about the evils of currency devaluation as a solution to our problems.  Which we’re doing.  In a last-ditch attempt to stimulate our economy.  A weaker dollar would help.  It would make our exports cheaper.  And make our massive debt cheaper to pay off.  Which really concerns the Chinese as they’re holding the majority of that debt.  So they are not going to sit idly by while we slash the value of their U.S. holdings.  They’ll fight back.   And do whatever it takes (capital controls, tariffs, etc.) to protect their investment.

Whether by physical fear and intimidation or by bribery and deceit, socialism ends the same.  In failure.  For it to work people have to work hard so others can live better.  And people just don’t willingly submit to slavery.  When they’re forced into it, they do the bare minimum to minimize their pain and suffering.  And when people do, the economy will never reach its full potential.  Which is why the United States won the Cold War.  Capitalism encourages people to do their best.  Socialism encourages them to do the least they can get away with.  And you just don’t achieve greatness with mediocrity.

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