The Invisible Hand: The Failure Of Socialism

724 Words2 Pages

To the uneducated eye Socialism may seem like a paradise, a way to fix all of a country's problems. Unfortunately, in the real world Socialism simply doesn’t work; and that fact is simply disproven time and time again by the copious amounts of socialist societies that fall or are currently plagued with war, and civil disobedience. From East Germany, to Ukraine to Venezuela, these and many other countries are proof of the failures of Socialism.
Socialism is defined as “a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the government as a whole.” Free market Capitalism is defined as “Capitalism is an economic system that is characterized
The Invisible Hand was a metaphor that was used by Adam Smith, he explained how actions based on self interest can help other people as a whole. For example, if there is a man is working very hard to hard to support his family at a fishing dock, he works and he works and at the end of the day he has caught 12,000 fish. With hours that this man locked in, he gets a paycheck of 10,000 dollars. Now, that fish was then shipped to Japan where it can than be processed and sold to the public. That selfish act of that one man helped the lives of others in a completely different country. In a socialist society this idea doesn’t work to it’s full potential, as there is literally no incentive to work any harder, so the amount of fish that you are catching most likely stays stagnant for a long
Because humans are hardwired to think of ourselves first, socialism is bound to fail no matter what; as it goes against human nature. In sports, a good player DOES what they can do to support the team. But they will be more willing want to help the team if winning will help themselves as an individual. Liberals and leftists alike point out that Socialism can be seen as teamwork; as people are all working together to help the majority. That is a simply not true. The only reason people work together is because there is some sort of a

More about The Invisible Hand: The Failure Of Socialism

Open Document