Essay #2 Describe the impossibility of economic calculation under socialism.

(up to 500 words)

It is impossible for socialism to endure economically as constant extensions of government obligations become exponentially costly on a long enough timeline. These faults of endless social contracts are upheld due to misnomers the public believes. One misnomer is that social contracts are envisioned to be forever protected by government backing. This simply is not a good message. Government contract backing is susceptible to inflation, bad investment, and global economic unrest. A government being a backer of principal resort is counter-party to any hands-off approach to free markets, but this is accepted due to socialism instilling a feel of everyone has something, nobody has nothing. This conjured idea can be tangled with desertion, wherein the solution to not desert the people influences continuation of more government management. There is no problem with wanting to insure social good for everyone, but the methods of achieving this may need to be looked at from another angle. A group of government commanded social contracts is a lot more unmanageable than the public investing the money themselves. As truly large an instability these contracts are, the banner of collective social welfare is an accepted morality. To the chagrin of this morality, Fredric Bastiat has enforced overwhelmingly, Everyone wants to live at expense of the state, but the state wants to live at the expense of the people. Socialism has too broad of scope to manage any modest increases in government size. More ideas, minds, and thereby power results from larger webs of micromanagement, not more centralized management. The key socialism misses is that allowance of individuals to control price mechanisms and demand is the solution. Government intervention is the antithesis to solving problems of pricing related to distributed capital. Increasing of government scope leads to a central authority monopolizing creative public policy. This eventually results with large amounts of money in a small number of hands (with socialism, many times, the states hands). The more localized the origin of policy resolutions, the more hands proposed ideas can be filtered through. Socialistic economic policy starting at the top is not quite equal compared with policy origination at the base. Modern socialist governments price gauge interest rates and manipulate their monetary bases, giving more economic inequality, further digressing from free market principles. Economic implementations have unknown consequences at their creation in the past. Therefore implying socialist government can predict a solution, especially regarding the future, is a near impossible fallacy. Any power structure becomes more compartmentalized as it branches out in size, adding to the difficulty of expanding socialism. The inevitability of departmental rivalry comes with the inherent degradation of socialist economies. Ultimately the tried approach is adding faculty to manage the issue, increasing administrative bloat and cost. Tax collections go to the people and the misery is collectively equalized. These economic issues compound quickly, as has been seen. Liability must be

accounted for, not saved for a future development. Socialism demeans incentive and it is vital a better model be pursued for insuring peoples agendas.