Tag: corruption

MLLG

Socialism Gaining Popularity

George Noga

Socialism Gaining Popularity

Socialism may appear to succeed briefly, but it always ends the same

GEORGE NOGA
MAY 26, 2024

In recent polls, 41% of US adults have a favorable view of socialism. Among Gen Z support for socialism is 49%, while among Millennials 50% had a positive view of socialism. A majority of Americans age 18-29 believe socialism is the ideal economic system. Socialism is gaining in popularity among women and Black Americans.¹

a statue with a star on top of it

In this post I address (1) how socialism can appear to succeed briefly; (2) how it always ends; (3) what young Americans believe about socialism; (4) the truth about socialism in Sweden and Scandinavian countries; and (5) the good, the bad and the ugly.

Socialism and the Illusion of Progress

When collectivists first take over a nation, there often is a period of time – perhaps a few years – when socialism appears to work. That is because socialists plunder the wealth of the nation to pay unsustainable benefits using the following artifices.

  • Socialists confiscate assets of foreign businesses and the wealthy. However, this is a one-off thing; assets can be seized only once before they are gone forever.
  • They loot businesses and replace competent managers with political hacks who run the business into the ground. Case in point: Venezuelan oil industry.
  • They strip and plunder natural resources – despoiling the environment.
  • Progressives run huge budget deficits and borrow to the hilt before defaulting.
  • They tax the upper and middle classes into oblivion.
  • They hyperinflate and print worthless currency, as in $100 trillion banknotes.
  • They pillage banks and make phony (unrepayable) loans to acolytes.
  • Price controls and rent controls are imposed and evictions forbidden.
  • Currency and exchange controls are imposed to prevent anyone fleeing.
  • Corruption and bribery run amok as officials steal billions.

Socialism Always Ends the Same

All the above actions are used to finance the appearance of progress for a time. However, all socialism ever accomplishes is ransaking a nation’s patrimony to achieve an unsustainable and short-lived illusion that things are getting better. Socialism never creates sustainable prosperity. There is not one example in human history where collectivism has produced sustained economic gains.

Socialism always ends the same, it runs out of other peoples’ money and things to plunder. In the end, socialism has nothing to offer except starvation amidst plenty.

Brutality or Indoctrination?

Aldous Huxley (Brave New World) and George Orwell (1984) carried on a lively correspondence about the best way for collectivists to cow citizens into obedience. Huxley argued technology and drugs were were more effective than brutality.

“The world’s rulers will discover that (youth) conditioning and drugs are more effective as instruments of government than clubs and prisons. . . . Suggesting people into loving their servitude will satisfy the lust for power better than flogging them into obedience.”

Young Americans Fail to Understand Socialism

The support young Americans have for socialism is based on ignorance. They harbor warm and fuzzy notions of some abstract egalitarian utopia that does not exist and cannot exist in the real world. Simultaneously, they embrace a dark vision of capitalism, which they see as a dog-eat-dog system with great wealth disparities. They conveniently ignore socialist hellholes like Cuba, Venezuela and North Korea.

“Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. . . . those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.” C.S. Lewis

When pressed, young Americans do not see socialism as state control of industry and of the entire economy. What they really want is more government social welfare programs, i.e. a classic European-style social welfare state. When Millennials are asked how they would fund their version of socialism, their support for it plummets. They favor taxing the wealthy into oblivion, but oppose (by large margins) across-the-board tax increases and higher sales taxes. In short, they are clueless.

Socialism and Sweden

Progressives and the young who favor socialism, invariably trot out Sweden² as the poster child. Many adult Americans and most young Americans harbor some fantastical, glorified, unrealistic and unattainable vision of Sweden and, to a lesser extent, other Scandinavian countries as socialist utopias. However, Nordic nations impose much higher taxes on the middle class than the US. Furthermore, the top 10% of Americans pay a greater share of taxes than in the Nordic nations.

All Scandinavian countries have had free market capitalist economies for many decades. Sweden briefly flirted with socialism in the 1970s and 1980s. It failed abjectly and the Swedes rejected it in favor of a return to capitalism. Moreover, Sweden is nowhere near as prosperous as young Americans believe. If Sweden were a US state, it would be poorer³ than our poorest state (Mississippi) by 30%. The GDP of Houston, Texas is higher than that of all of Sweden.

The Good – The Bad – And The Ugly

If there is any good news, it’s that younger Americans really don’t want socialism per se; they just want more government programs – but they don’t want to pay for them. The bad news is they want a European-style social welfare state. The ugly news is that they are woefully ignorant about socialism, capitalism, history and economics.

  1. There are numerous polls and surveys available; I have used an average number.

  2. I have written extensively about Sweden and socialism. My most recent post is October 7, 2018 entitled “Nordic Nations and Socialism”. You can read it on my website: www.mllg.us.

  3. When adjusted for the cost of living.

    © 2024 George Noga
    More Liberty – Less Government, Post Office Box 916381
    Longwood, FL 32791-6381, Email: mllg@cfl.rr.com

MLLG

Million Dollar Classrooms

George Noga

New York spends $1 million per classroom
GEORGE NOGA
JUL 9, 2023

I have been involved in the school choice movement (one of my signature issues) on the local, state and national level as an activist and observer for 30 years. I am also a CPA and can reconstruct the true spending by government schools. This post: (1) computes the real amount spent per classroom; (2) compares classroom costs in Florida and New York; and (3) analyzes the results in a unique format that shows the money wasted by government schools. Note: My 3/26/23 post compares FL and NY taxes and spending; you may read it is on my website or in the Substack archives.

woman standing in front of children

Spending Per Classroom in New York

Based on a composite of several sources, New York State spends $30,700 per student; but that is just the starting point. To the base amount of $30,700 must be added:

  • Education spending elsewhere in the state budget and off the budget
  • Federal funding – which usually runs around 10% of total spending
  • Grants from governments, NGOs and others estimated at 5%
  • Funds paid by parents and students also estimated at 5%
  • Proceeds from bonds and other debt instruments
  • Pensions and health care for retirees
  • Debt service on school and mixed purpose bonds

Without an audit it is impossible to know precisely how much all of the above items add to the basic amount. Fortunately, someone already has done the work. The CATO Institute published a study of public school spending in several districts across the USA. CATO determined the average off-budget spending was 44%, while the minimum found in any district was 19%. Placing NY somewhere in the middle of this range, I add 30% or $9,300 to the $30,700 base amount, which results in total spending of $40,000 per student. Since the NY average classroom size is 25, the total spending per classroom is your basic one million dollars. BINGO!

It is not an accident that no human being is able to determine the actual spending on government schools. Educrats and unions intentionally make the data as opaque as possible to prevent anyone knowing the true spending. Despite the gargantuan spending, the quality of education is dismal and no one is happy. Teachers caterwaul about pay; educrats grumble about budgets; and parents flee en masse.

Spending Per Classroom in FL and Compared To NY

Spending data for Florida also is opaque as the funding comes from myriad sources. To be fair, I took data from several sources and chose the one with the highest spending, which is $11,000 per student (national average is $13,200). Adding the same 30% as New York to cover all off budget spending, means FL is spending an added $3,300, equalling total spending of $14,300. Again assuming the same 25 student class size as NY, results in spending $357,000 per classroom.

NY spends $643,000 more or 280% that of FL for each and every classroom. It costs nearly triple to educate each student in government schools in NY compared to FL. Moreover, the quality of education in FL is much higher than NY when using an apples-to-apples comparison. When deconstructing students by race and other metrics (and then reaggregating them), FL ranks #3 in the USA while NY is toward the bottom. People in NY are paying nearly triple and for vastly inferior results.

Analysis of Spending Per Classroom

To the best of my knowledge, no other source uses spending on the classroom level; they all use per student spending. However, looking at the issue by classroom reveals truths that otherwise might be masked. Let’s take a dive into the data.

In NY the average teacher salary is $80,000; when allowing an added 25% to cover benefits, a teacher costs $100,000. Of course, we also must provide for certain schoolwide expenses such as a principal, some assistants, guidance counselors, computer support, PE, art and music teachers, librarian, custodial and support staff. This should add no more than another $100,000 per classroom. And yes, we must allow for the cost of district administration which should add no more than another $50,000 per classroom – raising the total to $250,000 for each NY classroom.

Where is the other $750,000 per NY classroom? NY spends $3.00 outside the classroom for every $1 spent in the classroom, while FL spends $1.50 outside the classroom for each classroom dollar spent. Elite private schools spend about 50 cents outside the classroom for every classroom dollar. The champs are parochial schools, which spend only ten cents outside the classroom for every classroom dollar. Our local parochial school district has 15,000 students and only 3 full time administrators.

The Bottom Line

Waste, fraud, abuse and corruption are endemic in government schools which are incapable of reform. As the juxtaposition of NY and FL shows, spending and quality are uncorrelated and, in fact, negatively correlated. The only solution is universal school choice where the money follows the student. Nothing else will work.

© 2023 George Noga
More Liberty – Less Government, Post Office Box 916381
Longwood, FL 32791-6381, Email: mllg@cfl.rr.com

Why Government Always Fails

George Noga

Government failure is structural and systemic; it is utterly incapable of reform.

 

Why Government Always Fails

By: George Noga – June 21, 2020

          This post explains why government at all levels invariably fails. Next week, our companion posting shows why business succeeds. Sentient people know government fails at everything it attempts, but they often don’t understand why.

          We provide many reasons infra for government failure, but first we must explain the nature of its failure. The causes of government failure are systemic and structural; they are deeply rooted and incapable of reform. Its most common symptoms, waste, fraud, abuse and corruption are organic and cannot be eliminated; it is futile to try.

         Changing political parties, appointing different bureaucrats, increasing oversight by Congress, forming elite study commissions or hiring more inspectors general will have no effect. Government failure can’t be eliminated, but there is one, and only one, way it can be reduced. That solution is revealed at the end of this post – stay tuned.

Reasons for Government Failure

Opposed to Human Nature: A principal reason for its failure is that government is unalterably opposed to human nature, which is unchanged since we lived in trees. Humans are hardwired to advance their self interest and to respond to incentives. All the incentives in government are misaligned and contrary to the public interest. This also explains why socialism never has worked outside of a family, clan or tribe.

Public Sector Economics: This is more an explanation than a reason. It explains, inter alia, why government prefers borrowing over taxation, why taxes are opaque and why failed government programs continue to exist – and even to expand. Politicians and bureaucrats are responding to incentives, but ones that reward them, not the public. And politicians’ biggest (and likely only) incentive is to get reelected.

Failure to Attract Talented, Motivated People: Risks and rewards of government work do not attract highly talented, motivated and hard-working people. Government work tends to attract those who are risk averse and prefer inertia over action. Why would being a bureaucrat appeal to anyone who is capable of succeeding in business?

Not Market Based: Markets gather knowledge from the bottom up based on consumer choices and preferences; all transactions are non-coercive and benefit both parties. Instead of mutually beneficial relationships created by markets, government is top down, highly coercive, ignores consumer preferences and creates winners and losers.

One Person Can’t Make a Difference: Try to name one bureaucrat who transformed government for the better. You can’t because none exists. There are no bureaucratic equivalents of Steve Jobs or Jeff Bezos and there never can be. Such people would never go into government and if they did, they would soon quit in frustration.

Lowest Common Denominator: Politicians succeed most often when they appeal to our basest instincts, or lowest common denominator – instead of to the better angels of our nature. That explains why they divide people by race, gender, age and income and pursue policies they know are detrimental to those whom they represent.

Too Big to Manage: There is no way 537 politicians can manage a $4 trillion budget. Few of them have the necessary private sector experience; most serve only a few years and they have wildly different ideas about what should be done. Moreover, they are not held accountable for their (mis)management of government spending.

         Government failure, with its embedded waste, fraud, abuse and corruption, has been with us since George Washington’s administration. It never can be eliminated. There is only one way it can be reduced and that is to shrink the overall size and scope of government. That’s one reason our mantra is: more liberty and less government!

Our next post on June 28th explains why business succeeds.
More Liberty Less Government  –  mllg@mllg.us  –  www.mllg.us