Freeman

ARTICLE

Socialism Is Not The Answer

MAY 01, 1962 by DEAN RUSSELL

Dr. Russell is Professor of Economics at Rock­ford College and Chairman of the Department of Economics and Business Administration. This article is from his weekly editorial column in the Sunday edition of the Rockford (Illi­nois) Morning Star, January 21, 1962.

Sociologists generally agree that "aid to dependent children" (in­cluding foster homes for them) is a great improvement over the old system of orphanages and other institutions. And for the past 50 years, most sociologists have ad­vocated more government aid for this purpose—that is, to permit the children of deceased or destitute or depraved parents to grow up in a more normal home environ­ment than can be found in an in­stitution.

Unquestionably, the sentiment behind that objective is excellent. I am convinced, however, that so­ciologists who advocate more gov­ernment subsidies as the best so­lution to this problem are over­looking a vital point.

For example, orphanages and similar institutions have tradi­tionally operated on straight socialistic theory. The authority ex­pects each youngster to contribute to the group whatever he can. And each receives from the authority whatever he needs. Individuality is not encouraged.

The effect of this equal treat­ment has generally been dismal for all concerned. Sociologists are well aware of the drawbacks of insti­tutional life for children, but they seldom if ever consider the possi­bility that the cause of the unde­sirable consequences is the social­istic arrangement itself, rather than the absence of parents.

An Orphan’s Experience

Perhaps this true story (merely one of many I could select for the purpose) will help to illustrate the point I am here making.

A new superintendent arrived at an orphanage near Lynchburg, Virginia, in 1932. He discovered that the institution had always been run on the socialistic princi­ple of "to each according to his need; from each according to his ability." The children were treated absolutely alike; in fact, it was necessary to assign each one a number in order to distinguish their equal and identical posses­sions. That socialistic paradise of equality and security, however, was a drab and deadening place without challenge; kids were al­ways running away from it.

The superintendent immediately installed an arrangement that was as close to a free market operation as the situation would permit. All of the children (even the six-year olds) were put on an incentive system of one kind or another. Those who were age 12 and over were assigned basic quotas for their regular farm and house jobs. They were also given small plots of land for themselves, and free time to use as they pleased. If they produced more than their quotas, they were paid in cash or in addi­tional free time. Each could use as he pleased any money he earned from his own land and from his own free time.

Not surprisingly, the first thing that this competitive system brought to light was the fact that no one is equal to anyone else. That had always been true, but the so­cialistic system had tended to con­ceal it.

Quite a number of the kids (perhaps one out of five) didn’t prosper under the new arrange­ment. They earned nothing. And for all I know, the experience may have given them an inferiority complex.

Most of the children, however, were happy indeed with the new system. Almost all of them were better off in one way or another. And none ran away.

They used all of the customary ways for youngsters to earn money, and then invented a few of their own. Frequently, they produced the season’s earliest tomatoes in that area, and sold them at a high price. Sewing, baby sitting, dishwashing, cleaning, car washing, snow shovel­ing, shoe shining, delivering papers, selling magazines—you name it, and some boy or girl tried it.

One boy got rich—almost $100 in 15 months. Most of it came from his new business of selling live minnows as bait to fishermen. He finally had to hire several of his friends to catch minnows for him to sell.

When those kids left the or­phanage at age 18, they knew that people are not equal. They had been taught that their futures depended strictly on their own abilities and efforts. Thus, they were a bit sur­prised to discover that the world they were entering was moving backwards toward the socialistic system of compulsory equality and security they had abandoned. But since they were impressionable and adaptable teenagers, most of them soon reverted to the old philosophy of their new leaders.

Over the years, the number of children in that orphanage de­creased steadily—not because there were fewer orphans but because government aid to dependent chil­dren soon abolished the need for the institution. It is now closed.

Government Must Provide

Today’s children of deceased and destitute and depraved parents are now all taught that it is the duty of government to support them, as well as their parents and grand­parents and others. Since they are impressionable and adaptable teen­agers, almost all of them accept it as right, and teach it to their own children. Thus, after 30 years of such instruction, it is hardly sur­prising that most American people now believe that the primary func­tion of government is to provide for all who are having economic difficulties—real or merely com­parative.

Under that socialistic philoso­phy, crime, greed, and immorality on all levels of our society are in­creasing steadily, both absolutely and percentage wise. Most sociolo­gists are still teaching and advo­cating more government subsidies to stop it.

Perhaps they will eventually give serious consideration to the pos­sibility that socialism is not the cure but the cause of the problem.

Mental gaps in our thinking about Russia: MYTHS the Free World thoughtlessly accepts

ASSOCIATED ISSUE

May 1962

comments powered by Disqus

EMAIL UPDATES

* indicates required
Sign me up for...

CURRENT ISSUE

July/August 2014

The United States' corporate tax burden is the highest in the world, but innovators will always find a way to duck away from Uncle Sam's reach. Doug Bandow explains how those with the means are renouncing their citizenship in increasing numbers, while J. Dayne Girard describes the innovative use of freeports to shield wealth from the myriad taxes and duties imposed on it as it moves around the world. Of course the politicians brand all of these people unpatriotic, hoping you won't think too hard about the difference between the usual crony-capitalist suspects and the global creative elite that have done so much to improve our lives. In a special tech section, Joseph Diedrich, Thomas Bogle, and Matthew McCaffrey look at various ways these innovators add value to our lives--even in ways they probably never expected.
Download Free PDF

PAST ISSUES

SUBSCRIBE

RENEW YOUR SUBSCRIPTION