In theWashington Post on March 6, WaPo opinion writer Elizabeth Bruenig wrote "It's time to give socialism a try." She is concerned that capitalism does not always turn out right, that it is not true that "if we only have the right attitude, everything will set itself aright."
So I am writing her a personal letter, via snail mail, in the hope that this unusual method of communication will actually get through to her.
Dear Ms. Bruenig:
I was disturbed by your recent article that "it's time to give socialism a try," and so I am writing to try to convince you to change your mind.
In the first place, I think that in 2018 it is up to the advocates of socialism to show, with irrefutable science and logic, that it is a good idea to get off the capitalist train and trying something else.
I recommend to you Deirdre McCloskey, a transgender economist, whose "Bourgeois Era" books are a celebration of the culture that gave us the market economy. Her main argument is this. The last 200 years represents a Great Enrichment in which any country that allowed capitalism has increased real per-capita income from about $1-3 per day in 1800 to over $100 per day in 2018. That is a 3,000 percent increase in 200 years, or 30 times. As McCloskey writes, there has never been anything like it, ever.
Inspired by McCloskey, I have put up "Great Enrichment" pages on my government spending websites, and I enclose copies of the charts of real per-capita income over time. Your challenge is to produce the science that can prove that democratic socialism can do any better.
I wonder why you propose the "decommodification of labor." Marx proposed this notion in the period just before the apparent contradiction of "use value" and "exchange value" had been exploded by the marginal revolution of 1870. Really, wage labor (or salary labor for you and me) is rather liberating. It lets you know how much other humans value your contribution to society, and it detaches you somewhat from the risks faced by the businessman that has hired you.
Sincerely, etc.
Well that's all I wrote to Elizabeth Bruenig. But here are the charts:
First US Great Enrichment.
The interesting thing to me is that it doesn't really show much response from the changes in government policy. It seems like a S-curve with a slow acceleration in the 19th century and a slow deceleration since 2000.
Hey. only one big glitch, in the Great Depression. Even the Great Recession wasn't so bad.
Now look at China. I only have a couple of data points before 1960.
Yes. Oy. China started the same as the US in 1800, at $4 per person per day. It was down below $3 per day by 1900. The reason the chart plunges below the x-axis is that per-capita income in China was below $1 per day for perhaps 40 years. It was $0.53 when the St. Louis Fed data starts in 1960, and went down to $0.36 by 1962. That was what the Chinese got from half a century of revolution, civil war, socialism, Great Leap Forward, and Cultural Revolution. God save us from the experience of China. $0.36.
I only wanted to write a one-page letter to Elizabeth Bruenig, but of course there is a whole world of reasons why democratic socialism is a bad idea.
First, there are the "classical liberal" writers have assembled a devastating critique of socialism in all its forms.
Really, Ben Rhodes is the go-to guy on this. He was the Obama media guy that said that:
So I am writing her a personal letter, via snail mail, in the hope that this unusual method of communication will actually get through to her.
Dear Ms. Bruenig:
I was disturbed by your recent article that "it's time to give socialism a try," and so I am writing to try to convince you to change your mind.
In the first place, I think that in 2018 it is up to the advocates of socialism to show, with irrefutable science and logic, that it is a good idea to get off the capitalist train and trying something else.
I recommend to you Deirdre McCloskey, a transgender economist, whose "Bourgeois Era" books are a celebration of the culture that gave us the market economy. Her main argument is this. The last 200 years represents a Great Enrichment in which any country that allowed capitalism has increased real per-capita income from about $1-3 per day in 1800 to over $100 per day in 2018. That is a 3,000 percent increase in 200 years, or 30 times. As McCloskey writes, there has never been anything like it, ever.
Inspired by McCloskey, I have put up "Great Enrichment" pages on my government spending websites, and I enclose copies of the charts of real per-capita income over time. Your challenge is to produce the science that can prove that democratic socialism can do any better.
I wonder why you propose the "decommodification of labor." Marx proposed this notion in the period just before the apparent contradiction of "use value" and "exchange value" had been exploded by the marginal revolution of 1870. Really, wage labor (or salary labor for you and me) is rather liberating. It lets you know how much other humans value your contribution to society, and it detaches you somewhat from the risks faced by the businessman that has hired you.
Sincerely, etc.
Well that's all I wrote to Elizabeth Bruenig. But here are the charts:
First US Great Enrichment.
The interesting thing to me is that it doesn't really show much response from the changes in government policy. It seems like a S-curve with a slow acceleration in the 19th century and a slow deceleration since 2000.
Hey. only one big glitch, in the Great Depression. Even the Great Recession wasn't so bad.
Now look at China. I only have a couple of data points before 1960.
Yes. Oy. China started the same as the US in 1800, at $4 per person per day. It was down below $3 per day by 1900. The reason the chart plunges below the x-axis is that per-capita income in China was below $1 per day for perhaps 40 years. It was $0.53 when the St. Louis Fed data starts in 1960, and went down to $0.36 by 1962. That was what the Chinese got from half a century of revolution, civil war, socialism, Great Leap Forward, and Cultural Revolution. God save us from the experience of China. $0.36.
I only wanted to write a one-page letter to Elizabeth Bruenig, but of course there is a whole world of reasons why democratic socialism is a bad idea.
First, there are the "classical liberal" writers have assembled a devastating critique of socialism in all its forms.
- Economic calculation argument. In 1918 Ludwig von Mises argued that socialism could not work because it could not compute prices.
- Bureaucrat vs. producer/consumer argument. After World War II, F.A. Hayek argued that it was impossible for a few thousand bureaucrats in the administrative state to outperform the millions of producers and consumers in the market economy.
- Regulatory capture argument. George Stigler argued that whenever government regulates an industry, the regulators end up being "captured" by the industry.
Really, Ben Rhodes is the go-to guy on this. He was the Obama media guy that said that:
The average reporter we talk to is 27 years old, and their only reporting experience consists of being around political campaigns. That’s a sea change. They literally know nothing.Only someone that "literally knows nothing" would write a piece suggesting that we give socialism a try.

