One of the questions I am asked most often is whether I am worried about one situation or another in the economy or geopolitics, as is currently the case with the war in Iran. My most recent answer is that what truly worries me today is the lack of understanding of, and advocacy for, the great advantage capitalism offers over any other economic model.

As the November elections approach, one of the most controversial issues is the growing momentum of socialism in the United States and, more broadly, the Western world. They call themselves “Democratic Socialist of America,” and, quoting their website: “Capitalism is a system designed by the owning class to exploit the rest of us for their own benefit.” It goes on to say: “We want to collectively own the key economic drivers that dominate our lives, such as energy production and transportation. We want to achieve ‘radical’ reforms, eliminate the police and reinvest those resources in communities.” (Link at the end.)

I am convinced that, depending on the generation we are born into, our perspective on the role government should play varies significantly. Those who benefited from a system and those who were harmed by it cannot hold the same opinion. The problem I see does not lie in the ideals, but in the reality of those ideals put into practice. In other words, the problem is human nature. For this reason, one system works better than another when it uses mechanisms that reward and penalize certain actions. For example, it is extremely difficult to find an instance in which the government operates more efficiently than a private enterprise. Thinking it is a good idea for the government to take over and control the engines of the economy is quite far removed from the reality we see today. Some time ago, I wrote about the billions of dollars invested in a high-speed train in California, and we still do not have one. By contrast, Florida allowed a company to make the investment for profit, and it already has a great system operating between major cities.

What concerns me is the disconnect between the new generation of left-wing politicians and the realities of both economics and human nature. I wish what I wrote about the democratic socialists were something far removed from us. It is a reality, and people with this mindset are being elected to government positions today. Examples include the mayor of New York and the mayor of Seattle, who openly seeks to eliminate the police while citizens suffer from disorder in the streets.

To conclude, I understand that people are angry with the system and want change. I also understand that it may seem unfair for some people to be extremely rich while others are extremely poor. However, that does not mean the answer is to dismantle everything and start over, and that is the most dangerous thing happening. People are aligning themselves with this ideology, thinking it only harms the very rich and makes them “pay” for that injustice. The reality is that everyone ends up being harmed, and the only thing that really changes is who ends up controlling the economy. China is a great example. When they need growth, they open their doors to the world. When they think it is enough, they close them and end up imprisoning—and sometimes making disappear—those who do not follow the new order. (I recommend the book Red Roulette by Desmond Schum, who explains it better than I do.) Capitalism provides freedom, while socialism restricts it. Capitalism offers opportunities, while socialism defines what is needed and what is not. Developing countries (called the Third World in earlier times) know very well how serious it is to let the government take control of resources, while people in the United States are only beginning to get a small taste.

https://www.dsausa.org/about-us/what-is-democratic-socialism/