Not to put this simplistically but to sum up Marxist-economist Richard Wolff. And I do not say that to be insulting but to be descriptive but what he’s basically talking about is replacing the. Private-enterprise and I say private-enterprise and not free-enterprise because thats what it is which is private-enterprise. Its not free-enterprise because all enterprise for profit in the United States are subjected to taxes and regulations. So they aren’t free to do whatever they want even as many Americans like to call it free-enterprise or the free-market. Those things simply do not exist at least in America. But what economist Wolff has been talking about at least lately and in this video he sounds different and is talking about. Cooperatives to replace corporations and what are cooperatives. Cooperatives are basically an enterprise for profit even, where the employees are the stockholders and own the company. And have say in who the management is and own stock in the company.
I do not have a problem with cooperatives as long as they aren’t forced on the entire country. The problem that I do have is what I call state-ownership or a state-run economy or. State-ownership economics where the central government and in the United States case the Federal Government. Would own the entire economy, where there would be no more private-sector and no more private-enterprise. The state would assume control over the economy, great tool to have if you are the party in power. If a news organization reports a story that you do not like. The President could just fire that reporter or cancel that program or article whatever the case may be. So why do I think this would be a bad idea, well that would be like asking me why would it be a bad idea to put my hand in a. Burning fire or go days without food or water. The answers should all be obvious but for the purpose of this blog I’ll answer my own question.
I’ll answer my question with another question and then both answer both questions myself. If that makes any sense and you aren’t dizzy from just reading that. Name a developed country in the world that doesn’t have a private-sector or private-enterprise or property-rights. There isn’t one and at this point the number of countries period that have state-ownership economic-systems are. Very small, even the Communist Republic of Cuba now have private-enterprise and even the. The Communist Republic of Korea is now talking about opening of their own economy or what’s left of it to. Private-enterprise under their new President so even the few Marxist-states left in the world are now talking about opening up their own economies. And Liberating and Liberalizing, yes Liberating and Liberalizing great words for a Liberal to use which is why I use them. The main reasons why state-ownership doesn’t work is because it doesn’t have competition, profit-motive. And independence, the entire country is dependent on the state for their well being.
Unless you have a state-ownership where all of the workers are basically Saints. Where everyone is working to make the state-economy as productive as possible even though you are incentivizing them. To do the opposite because if they aren’t successful and productive, the state will take care of them anyway. What America needs to do economically is get back to what we did well. Which is Liberal-economics, an education-system thats producing lots of workers most of their students. With the skills to be productive and successful in life. A modern infrastructure-system that allows people to get around in a timely and affordable way. And a tax and regulatory system that subsidizes success and lets failures fail. So where all Americans are judged by what they produce for society and not what they take from society. Which is what Liberal-economics is about.