In today’s rapidly evolving political landscape, confusion often reigns supreme. Muddled ideas seem to emerge daily, drawn from dubious intellectual sources like unsightly muck from a stagnant pond. We find ourselves tasked with clarifying this chaos, whether we choose to engage or not.
These days, those who, like John Locke, cherish truth for its own sake seem to be an endangered species. The young generation emerging from America’s educational institutions faces critical challenges, with minds clouded by misinformation. As a society, we may inadvertently bear the burden of their misguided beliefs.
Consider the case of Andy Vila. This 21-year-old immigrated from Cuba to Miami in 2004 with his parents, gaining asylum and eventually U.S. citizenship. Ironically, the socialism he fled from has become a focal point for his political activism.
The alluring notion that a large government can redistribute resources—as Marx famously stated, “from each according to his ability, to each according to his needs”—is gaining traction among America’s youth. Vila’s journey illustrates this transition. Initially identifying as a “Libertarian-style Republican,” he succumbed to the influence of what he describes as a ‘fake education’: “Course readings led him to question his beliefs further. He started attending left-leaning campus events, interacting with students of varying racial and socioeconomic backgrounds. He discovered a Miami beyond his manicured suburban neighborhood.”
“By the end of 2017,” he adds, “I had developed a disdain for capitalism and the political right. Now as a sociology and geography major, I advocate for sweeping reforms, including Medicare for all, free access to higher education, and a Green New Deal.”
Tard Buckets “R” Us
A major misconception propagated by this flawed education system is that anyone can use the political framework to reshape the world to their liking. Vila and his peers envision a society filled with free drugs, free education, and plentiful high-paying green jobs. They believe that a socialist government is the means to achieve this utopia.
In their worldview, reality is mutable. Immutable principles of logic, truth, and mathematics seem irrelevant to the ideals of these young socialists. What they prioritize are comforting feelings, eco-friendly snacks, and magical solutions to complex problems. Good intentions take precedence over sound judgment, leading them to rely on dreamers and schemers to provide a more prosperous life.
In their eyes, socialism has transformed into a pleasant shopping experience at a discount store, like “Tard Buckets R Us,” where they can choose the version of socialism they prefer.
Regrettably, this isn’t merely a whimsical notion. Political sociologist Edwin Amenta from the University of California, Irvine, asserts, “Today’s socialism for younger people means the Canadian health system and the Swedish welfare state.” It’s astonishing that Amenta presents such absurdity without a hint of irony. Meanwhile, misguided individuals nod in agreement, oblivious to the grim realities exemplified by the Venezuelan food crisis. This far-off understanding of political economy is a troubling byproduct of policies that devalue currency.
The Hollow Promise of a Statist Economy
The current economic landscape is both elegantly simple and absurdly flawed. Let’s distill it down to its core components.
The Federal Reserve controls the money supply by centrally regulating the federal funds rate. This “fake money”—debt-based currency—can be generated endlessly. Overproduction of this currency skews prices across various sectors, including stocks, bonds, and property, concentrating wealth among the elite while disadvantaging the many.
This setup bears little resemblance to true capitalism. Instead, it embodies a centrally planned economy where capital markets are manipulated from the top down. The consequences—heightened instabilities and growing wealth disparities—are grim.
Nevertheless, Vila and his fellow young socialists respond with calls for extreme government intervention. They envision planners in Washington redirecting private wealth toward noble causes as they see fit. Unfortunately, they lack a fundamental understanding of how the economy operates.
Without market-driven prices for goods and services—established through voluntary exchange—it is impossible to set fair prices that align with reality. Prices rooted in fiction distort the relationship between production and consumption. Absent the corrective influences of a market-based pricing system, overproduction and scarcity can spiral into absurd extremes.
Sadly, these young socialists are disengaged from these inconvenient truths. They perceive hard work and financial independence as relics of a bygone era. Meanwhile, living off government support promises an alluring but ultimately hollow future.
Sincerely,
MN Gordon
for Economic Prism
Return from The Hollow Promise of a Statist Economy to Economic Prism
