People criticize capitalism. A recent Axios-Generation poll says, “College students prefer socialism to capitalism.”
Why?
Because they believe absurd myths. Like the claim that the Soviet Union “wasn’t real socialism.”
Socialism guru Noam Chomsky tells students that. He says the Soviet Union “was about as remote from socialism as you could imagine.”
Give me a break.
The Soviets made private business illegal.
If that’s not socialism, I’m not sure what is.
“Socialism means abolishing private property and…replacing it with some form of collective ownership,” explains economist Ben Powell. “The Soviet Union had an abundance of that.”
Socialism always fails. Look at Venezuela, the richest country in Latin America, about 40 years ago.
Now, people there face food shortages, poverty, misery, and election outcomes the regime ignores.
But Al Jazeera claims Venezuela’s failure has “little to do with socialism, and a lot to do with poor governance…economic policies have failed to adjust to reality.”
“That’s the nature of socialism!” exclaims Powell. “Economic policies fail to adjust to reality. Economic reality evolves every day. Millions of decentralized entrepreneurs and consumers make fine-tuning adjustments.”
Political leaders can’t keep up with that.
Still, pundits and politicians tell people, socialism does work – in Scandinavia.
“Mad Money”‘s Jim Cramer calls Norway “as socialist as they come!”
This, too, is nonsense.
“Sweden isn’t socialist,” says Powell. “Volvo is a private company. Restaurants, hotels, they’re privately owned.”
Norway, Denmark, and Sweden are all free market economies.
Denmark’s former prime minister was so annoyed with economically ignorant Americans like Bernie Sanders calling Scandinavia “socialist,” he came to America to tell Harvard students that his country “is far from a socialist planned economy. Denmark is a market economy.”
Powell says young people “hear the preaching of socialism, about equality, but they don’t look at what it actually delivers: poverty, starvation, early death.”
For thousands of years, the world had almost no wealth creation. Then, some countries tried capitalism. That changed everything.
“In the last 20 years, we’ve seen more humans escape extreme poverty than any other time in human history, and that’s because of markets,” says Powell.
Capitalism makes poor people richer.
Former Rep. Jamaal Bowman (D-N.Y.) calls capitalism “slavery by another name.”
Rep. Alexandria Ocasio-Cortez (D-N.Y.) claims, “No one ever makes a billion dollars. You take a billion dollars.”
That’s another myth.
People think there’s a fixed amount of money. So when someone gets rich, others lose.
But it’s not true. In a free market, the only way entrepreneurs can get rich is by creating new wealth.
Yes, Steve Jobs pocketed billions, but by creating Apple, he gave the rest of us even more. He invented technology that makes all of us better off.
“I hope that we get 100 new super billionaires,” says economist Dan Mitchell, “because that means 100 new people figured out ways to make the rest of our lives better off.”
Former Labor Secretary Robert Reich advocates the opposite: “Let’s abolish billionaires,” he says.
He misses the most important fact about capitalism: it’s voluntary.
“I’m not giving Jeff Bezos any money unless he’s selling me something that I value more than that money,” says Mitchell.
It’s why, under capitalism, the poor and middle class get richer, too.
“The economic pie grows,” says Mitchell. “We are much richer than our grandparents.”
When the media say the “middle class is in decline,” they’re technically right, but they don’t understand why it’s shrinking.
“It’s shrinking because more and more people are moving into upper income quintiles,” says Mitchell. “The rich get richer in a capitalist society. But guess what? The rest of us get richer as well.”
I cover more myths about socialism and capitalism in my new video.
John Stossel posts a new video every Tuesday about the battle between government and freedom. He is the author of “Government Gone Wild: Exposing the Truth Behind the Headlines.”
COPYRIGHT 2025 BY JFS PRODUCTIONS INC.
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
For those college students who prefer Socialism…Democrat Congressman-funded one-way ticket to the Socialist country of their choosing. While there, place their citizenship status in a “suspended” mode. If they wish to return, they must “earn” having their citizenship returned to a fully active mode by performing two years of mandatory military service PLUS immediate repayment of any college loans. In order to discourage them from insurgent actions against US citizens or government, they should sign a document explaining which of their family members will be imprisoned until they themselves are brought to justice for their crimes.
Trump only president in the universe that attempting to save capitalism from Biden voters.
Those people who embrace socialism have never lived under it. There doesn’t seem to be any that did live under it can endorse it. Unfortunately once you switch, there’s no changing back, not without a fight. This lure of equality in everything unfortunately has the same pitfalls as any other form of government, those at the top live like kings. But if everyone is the same, what is the incentive to excel?
Norway Sweden and Denmark population combined is probably less than that of NYC there is no comparison , what works there will not work in the country the size of USA, it is administratively impossible, let fed.. gov. do only that which is it’s responsibility don’t let them near any economic decisions, that is up to business, not bureaucrats who have no realistic view or practical knowledge. Empty headed idiots who don’t know their right foot from the left should go to China or Venezuela or Cuba to get practical experience.
Some quotations on socialism from Winston Churchill, arguably one of the wisest men who has ever lived:
I believe our BIG problem is our ‘educational ‘ system which since the Vietnam War has taken over and miseducated our population. Sadly, when you look at socialist (communist) countries such as the Soviet Union, China, et al , you see what you get.
PROOF POSITIVE, CAPITALISM IS THE ONLY WAY!!!
The choice is very simple. Just apply the standard of whatever the Democrats are for be against it. You will win every time, because all the Democrats know how to do is lose, cheat, and lie. For them the truth all depends on who they’re talking to and who is listening and how many votes will it get them. It bears no resemblance to God’s truth, they do not believe in that
If there ever were a song I want to be in the USSR I’ve never heard it.
Socialism is just a deception for tyranny of those in power. It’s an excuse to remove money from citizens and transfer to government and cronies of government.
I have to disagree. In the USA, what are there some 80 programs for the “poor, low income and ‘underserved communities’, ” to get free money from the government. Where does it come from – the middle class. Changing the metrics to make it look like the middle class has moved up is BS. Our government constantly picks winners and losers with the middle class losing. Why do we still have AMT if that program isn’t working to make the “rich pay their fair share?” Because the government spends too much money and needs to get it from middle class families who are working hard to move up. It is time to stop embracing entitlement programs, give a 1099 to everyone who receives an entitlement (welfare, housing, SNAP, LEAP, Medicaid, subsidies etc) and let’s see how much the “low income and poor” really make each year. A lot of these programs are corporate welfare, so that the poor can spend money on things they should not have money for while the middle class work their butts off. Let’s go to a flat tax where there are no write offs and limited exemptions. Let’s raise the working time for Medicare Part A and Social Security to at least 20 years with no ability to receive it on a spouse’s record and unless you have your own work record. Let’s not make people who work work longer for people who never or rarely worked. The middle class is in decline and not because the middle is moving up. Our government right now only works for the poor, low income, and rich and not the middle class.
it became very obvious democrat party selected Biden Obama as their 2 evil men or Obama wouldn’t of been Vp to Biden in 2020
The Democrats loath Capitalism, because more and more people actually get ahead in life, especially financially.
However, the Democrats can’t stand that. The MORE people they can help PUT on welfare and totally dependent the government because of their consistently FAILED LEFT-WING POLICIES, the better.
When Magaret Thatcher of England became Prime Minister, the economy took off. Government businesses (coal mining, railways, airlines) were privatized and run like a business. Onerous tax rates were lowered. Thus, the transition from socialism to capitalism. If government controls the means of production, it becomes a monopoly. Monopoly’s eventually breed inefficacy and complacency, because no one is coming up in the rear-view mirror to eat their lunch. They get a blank check to extract revenues.
Get it said, John Stossel!
Obama wife is going to be the secret candidate to end all hope of a Republic since the states agreed use tax dark money on Charlie Kirk in Utah.
Well explained. It terrifies me that the young generation thinks it is a great system. All they are thinking about is free “stuff”, such as education, free health. They are not thinking of the quality of such services though.
I don’t see how socialism can work with our violating the “Takings Clause of the Fifth Amendment.
You aren’t sure what socialism is because you are a capitalist.