Socialism is Failure V: On Capitalism, Anti-capitalism, and Socialism

The modern ideology of socialism in undiluted form is essentially the belief that the government can be abolished if its function of protecting private property is done away with. This would be accomplished through both the abolition of private property, and its representation, capital.  Anti-capitalism thus becomes a supposed program of liberation. Socialism itself is the imagined post-capitalist world, where the economy meets everyone’s needs, people get along in harmony as “citizens of the world,” and they share with one another without question.

Obviously, not all that involves property and capital is capitalism; just as not everything that involves anti-capitalism is socialism. There are certain principles acknowledged by capitalists as indispensable to maintaining a functioning market system; namely, private property, sound currency, and enforced contracts.

By extension, in the capitalist system if private property is violated through wealth distribution, it destroys the positive reinforcement mechanism of wealth generation; it also severs the negative reinforcement mechanism of poverty for idleness. If sound currency is violated through depreciation, it destroys savings and long-term investment, leading to a live-for-the-day mentality, economic shortsightedness, and speculative folly. If contracts are not honored, then social trust is undermined, since a man’s word is his bond.

But as was claimed earlier, not all that presently falls under the heading of “capitalism” jibes with even the fundamentals. Private property is massively redistributed through the progressive income tax, to the point that the lower 50% pay no federal taxes, and the upper 20% pay over half of these taxes. One’s property can be seized by the state in the name of eminent domain, an egregious and direct affront to private property. And of course, there are the innumerable regulations that go along with the government telling the individual how to run his business, whom to employ or not to employ, and in some cases, requiring the individual to pay the state merely for the privilege of living his own life and supporting it through his labor.

While capitalism is thus smeared as any system where there is some private property and some currency, socialism can be denied to have ever existed in practice because the lofty standards socialists set have never been fulfilled. Of course, everything tending towards socialism, by virtue of its own theoretical construct, is anti-capitalism; which essentially means the destruction of the free market system by various means, including, but not limited to: statist domination, over-regulation, progressive taxation, certification hurdles, exorbitant compliance costs, and arbitrary intervention, such as subsidies, bailouts, and stimulus.

But socialism in pure practice is said to be the never-existing nirvana that is supposed to arise after the capitalist system is laid to waste; but in reality, it is the North Korean hell-state that is supposed to have “withered away.” So obviously there is a disparity between the claims of socialists and the reality of socialism as practiced.

Therefore we can see the constant obfuscation by leftists that such-and-such is not socialism and so-and-so is not a socialist. These are just word games. What conservatives are talking about are the erosion of capitalist principles and the tendency towards the totalitarian system of socialism. A socialist would not act any different than an anti-capitalist, simply because the teleology of the socialist leads to paradise, while an anti-capitalist qua anti-capitalist is merely a nihilistic anarchist. By extension, a fascist is one who destroys the market economy through the principle of unity in the state, and whose tactics almost irreducibly seem to be the same as the anti-capitalist or socialist in practice.  Yet the purpose of the fascist’s destruction of market economy is to consolidate economic control; the socialist’s supposed aim is to yield such economic control to the workers. But pray tell me, socialists, when this has ever happened? Where is this beloved worker’s state, or a shred of its manifestation, even in embryonic state?

Thus when it comes to fascism, socialism, and anarchism we are reduced in our analysis to a guessing game over who intends what. But we might say that a fascist is a socialist who doesn’t believe in the stateless utopia; while the socialist persists in his belief in such a place, regardless of evidence to the contrary.

The beauty of Marxian dialectics in the Fabian socialist mode is that the result is a mixed economy where the leftist believes capitalism is the problem, and the moderate believes that the self-contradictory workings of the economy are either the fault of incompetent technocrats or of the messy, democratic process itself, which necessarily requires endless compromise (of those with principles to those without principles).

But one without the ability to see things in the historical view is like the child riding in a car going 80 miles per hour; he sees the blur of trees, the rails of the bridge, and the fields of grain, but he doesn’t know he has crossed over the bridge from one state to the next. But hopefully this brief tour of socialist history demonstrates that we are indeed on a map, and not just floating around in the solipsistic world of leftist imagination. It is the trend that matters, and the immoral tactics and failing policies that supposedly achieve the socialist utopian end cannot be excused, merely because those who carry out such actions believe they will result in paradise.

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One thought on “Socialism is Failure V: On Capitalism, Anti-capitalism, and Socialism

  1. Manfred Beglaryan 02.12.2011


    At the beginning of 2008, the world economic crisis began in the USA and rapidly spread throughout the world. However, it is not clear what exactly served as a motivation for the start of financial crisis. It is supposed that it will last two more years topping out in 2009. Economic crisis, as defined, happens when the capitalist system becomes inefficient and may collapse. Certainly, the breakup of the world capitalist system may be prevented at any time with the intervention of the international financial inspectors. There is an idea that it is necessary to reconsider and improve the world capitalist system.
    The world economy has now stepped into a hard period and at the center of the global crisis is the American financial system, whose external debt is equal to 14,34 trillion US dollars. The state debt is continuing to grow at $ 3,97 a day at the average. It may sount strange that the amount of the American debt to China is as much as 1.16 trillion USD, that is equal to 8,0 % of the US overall debt. More than a quarter of the world’s population is a supporter of socialism and planned economy which may serve as an example for building a new economic system in future.
    The whole process of development and formation of human society shows that scientific and technical progress bears a changing social and economic system and that the amendments in social systems are the result of scientific and technical progress. To get to know the future it is necessary to learn the past well. Let us briefly examine the economic formations which the population faced during in the period of evolution. Knowing the approximate time of onset in each of these formations, we may build a graphical plotting and with the help of the method of interpolation define the approximate time of the beginning of the next economic formation.
    The Stone Age:
    The period of evolution of human consciousness started four million years ago. In the meantime, the descendants of mankind turned into a group of people who created а hadron collider for conducting experiments on the level of God. The peculiarity of human society was the production of tools.
    1.Primitive communal system of economic formation: 40 thousand years ago supremacy of primitive communal system was set in. People started to lead a sedentary life-style and live in caves and in wooden houses and in future they learnt also to build houses of stone. Over the period of millennium, people started to prepare tools and instruments of labor, to raise cereals and develop cattle-breeding. Single families were formed and communities started to decompose gradually. This structure existed for 35 centuries, until 3000 BC.
    2.Slaveholding system. At the end of the 4th century and at the beginning of the 3rd century BC, the primitive communal system stopped to exist as slaveholding communities and states came into existence. Significant changes were made on the level of development of productive forces. The most significant change in the field of material culture of mankind was the developing of metals like gold, copper, silver, lead, tin, and since the 14th century BC iron has been developed. The pace of development of class societies was incomparably rapid than the pace of development of primitive society. This system existed till the 6th century AD, for approximately 35 centuries.
    3.Feudal System. The 4th -6th centuries AD are considered the period of decomposition of slaveholding system as feudal system started to develop in the world. At the end of the 10th century, the period of development of feudalism came to an end i.e. the whole world was in the hands of the feudal. This system existed for approximately 14 centuries, till the 19th century.
    4.Capitalist system: By the seventies of the 19th century, capitalism was established in the majority of European countries, in the USA and in Japan i.e. the world capitalist system was established. The transition to imperialism was at the turn of 19th and 20th centuries. In the main capitalistic countries supremacy of monopoly was overwhelmed and productive forces rapidly developed as a result of well-known achievements of science and technology. This formation exists up to date (for 1.4 century).
    5.Socialist system: In the last quarter of the 19th century Marxism conquered harmony in the international labor movement. Socialism is the phase of establishment and development of socialist system, for the first time conditions are created for the unlimited progress of mankind on the basis of elimination of social inequality and rapid development of productive powers. The Communist Party of China assumed the program of struggle for establishment on all fronts of social moderation. Reforms were made in the economy, in the administrative structures as well as in judicial system. The economy of China has so much been developed that, as I have already mentioned a part of the external debt of the USA though small, belongs to China. Economic system with non-trade economy has existed since the first quarter of the 20th century, i.e. for 90 years, since the time of formation modern China and of the USSR, which does not exist now.
    6.Globalization: This system created cooperation between production of different countries, and lead to the establishment of united world market system and to the united bank system throughout the world. However, even at the beginning of its formation, the instability in the world economy started to strengthen and uneven development was deepened. Although globalization was formed decades ago, a unique social-economic system was not formed in the world as socialism was preserved in China; a country which has 1.3 billion of population and also in other countries which develop rapidly as a result of planned production which is the basis of socialist system. Globalization under the conditions of capitalism reduced to the world capitalisms and crisis on the exchange. Currently, unpredictable financial catastrophes are shaping conditioned with the unsteadiness in the financial systems and the specialists are unable to explain the ongoing processes. The absence of prediction by the specialists may serve as a proof for it. The system of globalization has existed for four decades. The giant financial pyramid created as a result of globalization turned into a soap bubble and collapsed.

    7.Armageddon: During the formation of Armageddon the human civilization will be destroyed and the humans having been left alive will start to build the human society anew.
    Let us look at graphical curved processes of development of human society using the data mentioned below:

    1.Primitive communal system of economic structure – 350 centuries (from 38000 to 3000 BC)
    2.Slaveholding system – 35 years (from 3000 BC to 500 BC)
    3.Feudal System – 14 centuries (from 500 to 1870 years)
    4.Capitalist system – 1,4 years (from 1870 to 2009)
    5.Socialist system – 0.9 centuries (from 1917 to 2009)
    6.Globalization- 0.4 centuries (from 1970 to 2009)
    7.Armageddon – (from 2008- )

    For creating a graphic, let us take the time and the scientific and technical progress as a coordinates. As we may notice, the time is an absolute value and has dimensions while scientific and technical process has no dimensions and this allows us to make a quantitative and not a qualitative analysis.
    The primary period before the capitalist system. The scientific and technical progress was developing too slowly by linear law and so we will make up the graph with an optional angle at the abscissa and we will stop on point d (see figure 1). The last third of the 19th century and the beginning of the 20th century were marked by effusive abrupt growth of productive forces, by numerous achievements in the spheres of science and technology, let alone the nowadays’ achievements. That is why it is accepted that scientific and technical progress in the capitalistic society develops in accordance with exponential law

    Y=e X

    Let us look at the curved line L of this function, taking as a datum the coordinate of the point d (see figure 1). On the coordinate curve of the abscissa (figure 1) erecting perpendiculars from the points D, E, F on the points of intersection d, e, f, with the classical curve L, we will have the origins of systems of capitalist, socialist and globalization formations. Now let us look at the curve from points d, e, f, to the curves 1, 2, 3 up to the classical curve L i.e. to the year of 2008 when the unpredictable financial catastrophe happened.
    On the other hand we may construct the graph taking the point t’ as an abscissa of the year of the onset of economic system t’ as a coordinate of duration of economic system (see figure 2). On this graph we may view the section where the final three formations appear as in this case the remaining three ones are of no interest. On figure 2 it is seen that the formation of globalization has closely approximated to the abscissa. Joining the points 1, 2, 3 with a straight line and continuing to the line of the abscissa t’ we traverse it to the point of the year 2010 where it is equal to zero. Wherefrom it may be concluded that the next, one might say, the last system should theoretically start at present. However, no one thinks of it as everybody tries to revive the globalization formation together with capitalist system which will again lead to the financial and economic outbreak. Judge yourselves of the probability of the aforementioned statement. It is obvious that if we do not come to our senses and do not assume measures then the process of degradation, which has already begun, will lead to chaos and collapse of the civilization.
    Looking at figure 1 we see that before the formation of the capitalist system (up to the point d) there are no major achievements in the spheres of science and technology, it does not dominate, like after the point d when the curve line swiftly rises to the top under the suppressing action of the scientific and technical progress. When before the point d the politicians ruled the world it was quite reasonable and justified while during the times of the capitalist system the politicians became immoral and all their actions were directed to destruction. In the 20th century, they started two world wars and a cold war which lasted approximately to the end of the century. All the efforts of the politicians in the developed capitalist countries are directed to the manufacturing of weapons and not merely simple weapons but also weapons of mass annihilation. I do not wish to go deep into the details as you know it yourself, nowadays we may see toy rifles in the hands of little children and they learn to kill since childhood.
    Nowadays we are facing a deep genetic degradation of human biology in the result of intrusion of the genetic engineering in the production of food which may lead to the destruction of the most part of the world.
    I have the impression that some apparently believe that the artificially made up viruses being in the position to annihilate the major part of mankind are the only solution to the problem of starvation of the one sixth part of the world population. But the problem may be solved by taking control over the birth rate as it is practiced in China. It is even worse if the cultivation of mortal viruses is a result of the economic crisis i.e. stagnation created by the politicians.
    Approximately 30 years ago the night sky was a hell of a sight, the stars were enormously more visible than at present and they sparkled more brightly. We mercilessly destroy the earth atmosphere and ecological system of protection of our perfect and unique planet. During the US presidential elections, when the presidential candidates George Bush and Albert Gore were struggling for the post of president, the electorate chose the policy of Bush who was well up in weapons and wars, brewed war in Iraq and fought there for eight years. In the meantime, the scientist Albert Gore realizing the significance of ecology of environment worked in that sphere and won a Nobel Prize. As we see the incapability of dealing with scientific affairs and short-sightedness of politicians may have catastrophic results. Melting of icecaps threatens to inundate a part of continents, destroy states which will lead to wars and chaos. Our civilization at the present stage is developing exponentially, hence degradation processes also take place so the law, which means that priority should be given an immediate suspension of degradation processes.
    The pace of development of economy and science are closely tied with each other and this tie is developing more and more in future. It means that scientists must administer the economy and the science and not the politicians. It is necessary that the activities of political parties be ceased who lead the mankind to inevitable death.
    I have shown on the diagram that the Earth’s civilization must be eliminated at a certain stage of development. This is probably the universal law and it should happen to any civilization, fossils of which start to come to the end. Recently, Pope Benedict XVI officially recognized that extraterrestrial civilizations do exist, and this despite the fact that their existence is contrary to Holy Scripture. Obviously some compelling evidence was submitted to him showing him he crashed flying object, or fragments thereof, and the dead extraterrestrial humanoids. It seems to me that he could admit their existence only after that. This means that there are civilizations that have managed to overcome this barrier and develop further. As we see the graphs may not be considered to be the final verdict of the end of human civilization. It mean we can still find a way out of this situation and build a new human society. We simply must do this not only for the sake of all children on earth, but also the future generations.
    All the States were earlier guided by the principle – if you want peace get prepared for war. What a sad mistake, and, in spite of this, there always occurred wars. As you may figure out from the situation we are in, this principle was wrong. Currently the humanity is in an economic dead end, or rather a trap created by the capitalist system, with a monster called the World Banking System.
    There exists a shadow world government. That was the conclusion drawn by Zurich University expert scientists that made a detailed mathematical analysis of the relationships of the leading companies in the world. They came to surprising conclusions, finding that all processes in the world related to the economy, are led by one giant corporation, which includes the world famous companies. The economic crisis resulted from the irreversible process of globalization with which the system cannot cope and, finding no way out, it furiously rushes from side to side. Therefore, at present militant political leaders of some countries, led by the United States that – having briefly escaped from the default and impending chaos – are going even further. They do not see a way out of this situation and are very seriously getting prepared for World War, thinking that the way out is found in that. In this war, they will use all weapons of mass destruction of people, fully aware that in such war there will be no winners as there were in previous wars. Especially, after the war it will be impossible to build a states on the human cadavers, they are doomed to failure, in best case the fourty-thousand-year old human history will repeat itself.
    Russian armed forces began to vigorously protect their airspace, and the Head of the General Staff of the Russian Armed Forces doesn’t not exclude the possibility of large-scale war involving nuclear weapons on the Russian border. The head of the General Staff spoke about it before the members of the Public Chamber on November 17.
    In the near future the U.S. will be able to hit any target in less than an hour no matter wherever it is. The bill of law S.510 was filed to the U.S. Senate, which will make the cultivation, use, distribution, purchase or sale of food grown at home illicit! It is assured that privately grown foods often do not meet sanitary standards, and therefore threaten the health of consumers, which should be understood – eat up all we give you and shut up (excuse me, please, for crude expression). And they give us Genetically modified products. And the scientists know very well as to what such food presents itself who have warned since 1999 about the dangers of Genetically modified products (GMO). Currently 828 scientists from different countries presented “the Open Letter of the world scientists to all governments about genetically modified organisms.” This project with the help of the world banking system and the World Trade Organization will be applied in all countries of the world and may be the beginning of the destruction of the humanity by peaceful means, using, at first glance, innocuous food, which presents itself a genetically-modified organisms. However, unofficially, GMO food is grown and spread in many countries without warning the population, and consumers have no idea about what they eat. Shadow world government is acting secretly and cautiously, because as far as I understood their power is in money alone, that they use to bribe people occupying high positions in the governments of different states. The number of people on the planet today is seven billion, and in the beginning of last century it was only a half of it, but it does not mean that some atheists will in their own way solve the problem of rapid population growth on earth. This issue has civilized solutions, such as the one applied in China or the more commonly used abortion despite the fact that the Pope condemns the decision of the question this way. I dealt with this matter and can with the he lp of the Holy Scriptures easily prove that from the standpoint of the Bible abortion is quite acceptable. That article is found on my website, Articles by Manfred Beglaryan-Tracts.
    I think that the time has arrived to very seriously refer to the issue of removal of the politicians and political parties from power in all countries that have already openly and cynically threatened to destroy human civilization together with the overwhelming majority of people on earth. In the twentieth century they have killed more than a hundred million people. All politicians are potential killers, and we needn’t leave those atheists in power anymore. I have no idea how we can do it, but it’s the only way to save billions of completely innocent people from death.
    Instead of the United Nations we’ll have to establish the World Academy of Sciences, composed of scientists from all countries, and the clergy of all faiths. I think that along with scientists the clergy will have to occupy their rightful place in the government. Science and religion should be combined. The most direct proof of the compatibility of science and religion, as Max Planck wrote, is the historical fact that the greatest scientists of all times, some people such as Kepler, Newton, Leibniz, were imbued with a deep religiosity. This bipolar management should first and foremost completely destroy all four types of weapons and determine what social system we need to create, how to manage the world economy and which way to develop human civilization. I offered this version of the solution to the question as an example, and I do not think it’s the only one. We have no choice and no time, chaos and world war or a new humanity with a great future.

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