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  • #16
    Re: The Last Communist City

    Originally posted by vt View Post
    Yes Cuba has had sanctions but also tens of billions of aid from Russia and Venezuela.

    South Korea did it on their own with free markets. East Germany was a disaster under communism that West Germany was not because of free markets.

    We are all here likely because, in varying degrees, we agree that FIRE is a cancer on the economy and TECI a potential great cure.

    The USSR failed miserably without any sanctions.

    The U.S. is now somewhat of a crony capitalist AND crony socialist economy, where competing elites drain the lifeblood of the middle class and free competition.

    The economic aid makes it worse(See Dutch disease.). Sanctions punish economic activity across the board. "Aid" is not going to be broadly distributed to a valuable labor force. Its just going to concentrate economic power for doing nothing. So the US helps starve the population in turn helping the Soviet Union aid go father in crushing any rival.
    "The USSR failed miserably without any sanctions. "

    Then what was the Cold War about? Why did "Star Wars" supposedly bankrupt the Soviets?

    ...And Again the Nordic states prove that "socialism" does not destroy a nation just because of socialism. China is a centrally planned state so the USSR comparisons seems more hollow. Besides that, the Russian Empire arragement also failed, meaning the Soviets did no better or worse. It isn't a viable empire. The USSR is not evidence socialism fails , its evidence empires fail. The same empire failed twice with 2 different political systems. I might add that socialism and empire is the worst combination imaginable.

    Imagine your extended family and mine. I imagine a traditional extended family could be very social. Children for example would not be considered economic inputs. The elders would also be managed differently, and not held to a standard where they must raise a barn like a 25 year old. Lazy, able bodied members would be easy to detect and managed...aka socialism would work for the same reason tribalism and family works. Between our extended families we would engage more efficiently with a capitalism flavor, leaving the social support at the extended family level while putting competitive pressure on each other. This would be why I am of the opinion, along with notable political philosophers, that federated states and confederations are the most effective large states able to have the common defense but without exploiting social safety nets. This is why Finland can be a more effective social state. Its small with lots of competitive pressure beyond its borders.


    The US is , unfortunately, heading for the big multi-ethnic state . Social responsibility will wane as we abandon the state and local level for a winner take all national level. The social safety net is just a vector of exploitation with a convenient excuse Social distrust is increasing as is any form of internal competitive pressure. We are becoming what was the Russian or Soviet empire. It goes hand in hand with the ills of communism because the social safety net just becomes an interface to exploit the rest.

    Empires have been failing in this way for thousands of years. What need have I to embrace a theory not 200 years old that social safety nets are a primary cause? Did the Hapsburg empire fall apart from a social safety net? Did Rome?

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    • #17
      Re: The Last Communist City

      Originally posted by gwynedd1 View Post
      The USSR is not evidence socialism fails , its evidence empires fail.
      Or perhaps, that size was the problem.

      Comment


      • #18
        Re: The Last Communist City

        Woodsman,

        I respect your viewpoint and derive value from it.

        As for Totten's other work I'm not commenting. I only thought that Cuba showed the failure of that system (sanctions accounted for). Capitalism tinged with cronyism fails too, but free, fairly regulated markets still, IMHO, give the best growth of living standards for the middle and lower classes. In America you should have equal opportunities, not always equal outcomes.

        I agree we need to get rid of favoritism at all levels in every corner. There a capitalist elites, FIRE elites, socialist elites, and communist elites. The common thread is that the great majority of the populations loses in each instance.

        Comment


        • #19
          Re: The Last Communist City

          "I suspect VT is referring to the admiration often found in Hollywood, academia, and elsewhere for the likes of Cuba and it's analogs...such as the martyrdom of the monster Guevara(with "Che Shirts" as common as cockroaches on campus) and Venezuela's Chavez"

          Exactly!

          I detest systems that take away freedom of people. I also condemn those that favor without merit; you earn it or you don't deserve it.Since I come from the common man (and woman) I support what is fair for the common man. I believe we should help the downtrodden through their travails, to see them improve their lot in life. and I firmly believe free markets are the way to achieve this.

          I do feel that all participants here also wish to help the common man; we may have different ideas of the best way to do so but the goals are the same.

          I don't have all the answers, or many even a few; but I constantly question and value input from all of you in this unique environment.
          Last edited by vt; May 13, 2014, 04:58 PM.

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          • #20
            Re: The Last Communist City

            I've been to Cuba. It mirrored my observations exactly.

            Sanctions are the official excuse for the economic problems there. When Cuba is free to trade with most anyone else in the world I fail to see the logic in this.

            I also see a common thread amongst people blaming the failures of our current system on the elites capture of our government. Although I concur, I think that more a symptom of big government, big regulations, and loss of the rule of law.

            Comment


            • #21
              Re: The Last Communist City

              As the chart clearly shows the overwhelming rapid growth of South Korea came AFTER they left central planning in 1979:


              Comment


              • #22
                Re: The Last Communist City

                Originally posted by vt View Post
                As the chart clearly shows the overwhelming rapid growth of South Korea came AFTER they left central planning in 1979:


                I am certainly not an expert on the economics of anywhere, especially South Korea.
                But to me the chart shows a knee from 1962 to 1978, with a further increase in slope about 1982.
                The last five year plan for South Korea included 1992.

                Source after source point to the policies of Park Chung-hee as the change in the nation's economy. This is typical:

                Since 1962, a series of ambitious five-year plans have been adopted for economic development and after normalization of relations with Japan in 1965, a policy with emphasis on foreign trade was adopted. This followed a period of boom in trade and investment and a period of rapid expansion in the 1960’s and then in the 1970’s concentrated on investment on light and then heavy industries during which the annual economic growth averaged at 8.6%.

                The South Korean model of encouraging the growth of large, internationally competitive companies called “chaebol” through easy financing and tax incentives led to the rise of family-controlled corporations which later emerged as global corporations. Some examples can be Hyundai, Samsung and LG.
                That quote from EconomyWatch.com, here http://www.economywatch.com/market/w...an-market.html

                I don't meant to quibble over semantics, vt, and I'm not defending communism.
                But South Korea is not a great example of free-market, laissez-fair policies creating huge growth.
                The central planning of Park Chung-hee is widely held to be crucial to the nation's success.
                His daughter Park Geun-hye is president of South Korea today.

                Comment


                • #23
                  Re: The Last Communist City

                  Originally posted by vt View Post
                  Woodsman,

                  I respect your viewpoint and derive value from it.

                  As for Totten's other work I'm not commenting. I only thought that Cuba showed the failure of that system (sanctions accounted for). Capitalism tinged with cronyism fails too, but free, fairly regulated markets still, IMHO, give the best growth of living standards for the middle and lower classes. In America you should have equal opportunities, not always equal outcomes.

                  I agree we need to get rid of favoritism at all levels in every corner. There a capitalist elites, FIRE elites, socialist elites, and communist elites. The common thread is that the great majority of the populations loses in each instance.
                  Why on God's green Earth are we spending a minute talking about communism and socialism in Cuba or anywhere else? Our house is burning, the crops are ruined, the creek is rising, and here we are, stuck on stupid and spending our precious time and cognitive energy on fighting a battle that ended almost 30 years ago.

                  There are 4 socialist, Marxist-Leninist states left in the entire known Universe. Among them are three international powerhouses capable of projecting enough soft and hard power to run a 60 watt bulb:

                  Laos
                  Vietnam
                  Cuba

                  The biggest and baddest of the four is our sometime partner/sometimes competitor and is socialist in name only - China. A one time colleague describe China as "2% Marxist, 98% Sopranos" and it seems the Chinese leadership pays as much attention to the Manifesto as ours does the Declaration of Independence.

                  Of the non-Marxist socialist countries, we count a similarly lopsided roll call:

                  Bangladesh
                  Guyana
                  North Korea
                  Sri Lanka
                  Tanzania
                  Portugal
                  India

                  Of these, India is another socialist in name only, considering they have been cleaning our free market capitalist clocks in those areas in which we compete.

                  I fail to see the point of continuously beating this dead horse. It is a distraction and does absolutely ZERO to help us understand how to navigate the present crisis. What possible relevance does Cuba have to us in breaking the stranglehold of FIRE? How does a debate on Che Guevara move us forward to sustainable and widespread economic growth?

                  And at a most basic level the subject is to me an eye rolling, sigh inducing bore. It might be more interesting if we managed to get the history right, but this seems impossible for us to do here. Fortunately there is plenty of scholarship available for those interested in learning more or further reinforcing their biases and I'm happy to suggest other sites where this can be studied and debated with all the ardor and enthusiasm one can muster.

                  Please, we know. Socialism and communism = bad; capitalism and free markets = good. Can we move on now and get back to putting out the FIRE?

                  Comment


                  • #24
                    Re: The Last Communist City

                    Quote Woodsman- "Why spend time on Cuba, get rid of FIRE"

                    One word: Piketty.

                    We've spent a quite bit of time on this forum with discussion of Piketty's new Marxist tome. Why not show those lured by this pied piper the reality of the ideology?

                    The Economist said it best:

                    Mr Piketty's focus on soaking the rich smacks of socialist ideology, not scholarship. That may explain why "Capital" is a bestseller. But it is a poor blueprint for action."

                    I agree. Forget Mr. Piketty's fantasies and stories of Cuban failure; concentrate of riding the world of FIRE.
                    Last edited by vt; May 14, 2014, 03:29 PM.

                    Comment


                    • #25
                      Re: The Last Communist City

                      Originally posted by Woodsman View Post
                      Why on God's green Earth are we spending a minute talking about communism and socialism in Cuba or anywhere else?
                      Um, maybe because that is the topic of this thread?

                      Comment


                      • #26
                        Re: The Last Communist City

                        Originally posted by Mn_Mark View Post
                        Um, maybe because that is the topic of this thread?
                        Thank you Commander Obvious. Carry on.

                        Comment


                        • #27
                          Re: The Last Communist City

                          Originally posted by vt View Post
                          Quote Woodsman- "Why spend time on Cuba, get rid of FIRE"

                          One word: Piketty.

                          We've spent a quite bit of time on this forum with discussion of Piketty's new Marxist tome. Why not show those lured by this pied piper the reality of the ideology?

                          The Economist said it best:

                          Mr Piketty's focus on soaking the rich smacks of socialist ideology, not scholarship. That may explain why "Capital" is a estseller. But it is a poor blueprint for action."

                          I agree. Forget Mr. Piketty's fantasies and stories of Cuban failure; concentrate of riding the world of FIRE.
                          Another word: Bullshit

                          To forget something, one must have knowledge of it in the first place. And no, ideology does not substitute for doing the work.

                          I own the book and have read maybe 10%. I don't have the stamina to pull through the rest, but I do have an advantage inasmuch as I have read the author's actual words and not a third-party's interpretation of it.

                          From that brief overview it's my opinion that most of the negative reviews expressed here are derived entirely second hand from sources cherry picked to reinforce ideological preferences. To anyone who has read it cover to cover, my congratulations and condolences.

                          After reading the TOC, the Preface, the first two chapters and the last, I can confidently report that "Capital in the Twentieth Century" describes extreme inequality as a feature of late stage capitalism that can only be reversed through state intervention, and without which will engender a crisis of democracy and governance. .

                          As for Picketty being a Marxist, we'll that's just another example of some people's dogged determination to misrepresent (or merely misunderstand) this work:

                          IC:Can you talk a little bit about the effect of Marx on your thinking and how you came to start reading him?
                          TP: Marx?
                          IC: Yeah.
                          TP: I never managed really to read it. I mean I don’t know if you’ve tried to read it. Have you tried?
                          IC: Some of his essays, but not the economics work.
                          TP: The Communist Manifesto of 1848 is a short and strong piece. Das Kapital, I think, is very difficult to read and for me it was not very influential.
                          IC: Because your book, obviously with the title, it seemed like you were tipping your hat to him in some ways.
                          TP: No not at all, not at all! The big difference is that my book is a book about the history of capital. In the books of Marx there’s no data.

                          Thomas Piketty: I Don't Care for Marx
                          Who knows, maybe Piketty is lying? Or maybe this is just another instance where ideology is a poor substitute for actual knowledge.

                          And by the way, a search for the word "Cuba" in the book came up bupkus.

                          Comment


                          • #28
                            Re: The Last Communist City

                            "TP: No not at all, not at all! The big difference is that my book is a book about the history of capital. In the books of Marx there’s no data."

                            That's absolutely false. Marx wrote most of his economic works in the British Museum where we was well aware of the information available at the time. Some years ago I visited the place and you could see the exact place where Marx sat to study and write. From Wikipedia: "Given the repeated failures and frustrations of workers' revolutions and movements, Marx also sought to understand capitalism, and spent a great deal of time in the reading room of the British Museum studying and reflecting on the works of political economists and on economic data.[157] By 1857 he had accumulated over 800 pages of notes and short essays on capital, landed property, wage labour, the state, and foreign trade and the world market; this work did not appear in print until 1941, under the title Grundrisse.[132][158][159][160]"

                            There is a lot of data in Marx's work. Of course, bear in mind the difference in the availability of data in mid nineteenth century and today.

                            As to the work at the origin of this thread I was reluctant to comment since I come to itulip to get qualified economic information to be able to invest whichever monies I have and not to discuss about other matters.
                            Having begun a commentary I shall just say briefly: if TP shows an astonishing level of ignorance about Marx's work Mr. Totten has the hability to vastly surpass him. I lived in Cuba for 10 years, between mid seventies and mid eighties as an ordinary citizen, not in any tourist bubble, so I am in a condition to boast a bit more knowledge about that countrys' history, economics, politics and the such.
                            Totten's work is just a bunch of conclussions taken from a short touristic visit. Just to stimulate some thought a couple of questions: If Cuba staged a bloody revolution in the 50's against an extremely cruel dictatorship as Batista's, which was supported and armed by the near american empire, why was the same people not able (assuming it so wished) to revolt against Fidel Castro, specially when, after the demise of the Soviet Union the economic situation there became extremely dire?
                            Most of the Cuban adult population form part of the militia and command the use of weapons and military tactics. Moreover, a big chunk of them (hundreds of thousands) have real combat experience in Angola and other parts. There must be something very compelling for such a people to hold to a political system that carries a very significant level of economic sacrifice.
                            Cuban people is probably one of the most politically cultured in the world. And I asume that to be an understatement. That, of course, Totten did not find out, probably he even does not speak Spanish. So, let's leave the Cubans alone and lift the shameful american embargo, which, very reasonably in my opinion, the cubans call "blockade". After that, maybe, we could be in a position as to determine the relative "success" or "failure" of their particular ways of socialism.
                            I shall not post again in this particular thread. If many itulipers (particularly EJ) find it suitable to initiate one about Cuba and socialism then I shall gladly participate.



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                            • #29
                              Re: The Last Communist City

                              thanks SG.
                              its always good to get ACTUAL FIRST-HAND eye-witness KNOWLEDGE about 'lightning rod' topix of this sort

                              and I'm with woody on this one too - WHY are we wasting keystrokes on it?

                              what - is cuba about to become the next 'emerging market success' story?
                              somehow i doubt it...

                              Comment


                              • #30
                                Re: The Last Communist City

                                Originally posted by Wiley View Post
                                I've been to Cuba. It mirrored my observations exactly.

                                Sanctions are the official excuse for the economic problems there. When Cuba is free to trade with most anyone else in the world I fail to see the logic in this.

                                I also see a common thread amongst people blaming the failures of our current system on the elites capture of our government. Although I concur, I think that more a symptom of big government, big regulations, and loss of the rule of law.
                                +1
                                EXACTLY - and the ONLY way the bankster class was able to capture the .gov is
                                BECAUSE THE POLITICAL CLASS ALLOWED IT TO HAPPEN

                                mostly because THE ONLY THING THAT MATTERS TO (most of) THEM IS THEIR OWN RE-ELECTION

                                and they SOLD The Rest of US down the river to BUY IT

                                and the BIG SELLOUT happened after a stain on a certain little blue dress caused the largest disruption of the US.gov since watergate - and while geedubya went home/back to the ranch - where did the rhodescholar and his carpetbagger wife end up 'retiring' to ?

                                ANY QUESTIONS?

                                and anyone who insists on maintaining this canard of 'regulatory capture'
                                as being 'the root of the problem' ??
                                is simply an apologist for
                                the political aristocracy!!
                                Last edited by lektrode; May 14, 2014, 12:29 PM.

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