This is probably the only chart that any Socialist or Marxist should ever need to see:

Total-Government-Expenditure-as-a-Percent-of-GDP-vs-Growth-Rate
The chart, posted today by Martin Armstrong shows the very clear trade-off between increased government expenditure and reduced economic growth.

We can argue about morality, ethics, and the rich poor divide, we can also argue about the difference between causation and correlation (in fact chances are higher government expenditures are both a cause and a symptom of shrinking growth).  Either way, the fact remains, the higher government expenditures tend to be, the thinner the economic growth will be on average.

Some energy rich countries like Norway have managed to do very well, but this is a statistical anomaly.  They also have some peculiarities like their sovereign wealth fund, which is really a market oriented solution to pensions.  Furthermore they maintain a transparent government which is possible owing to their small population and good education system.

To any socialist readers: I understand your struggle for an objectively better system. I understand that most of you just want compensation for your work.  But I urge you all to know your enemy and have a realistic alternative before embracing a system that guts the economy.

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One thought on “Socialism: Society’s Collective Suicide Pact

  1. Yes it is difficult to say whether this chart represents correlation or causation or something else. But it’s logical to conclude that the more bananas a 500 lb Gorilla consumes the less there will be for the Chimps.

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