The 4 Hidden Problems of Socialism


hidden problems with socialismAh socialism … Many of those among us view this ideology as the straightest path to utopia. They feel it is the one type of government that is the answer to all our problems.

To be honest, many of us have been attracted to the concept of a socialistic society – especially during our younger days. And if you notice, socialism is very popular among the younger members of our society. The thing is that after we begin working and functioning in the real working world – and remove ourselves from the theoretical world of academia, and away from the influence of radical professors who are addicted to shocking the world – our instincts begin telling us that socialism would never work in our society.

However, the great thing is that we need not wait to see how it works in the real world – it has actually been attempted over and over again. There are countless examples where socialism has failed badly. For instance, we have seen it fail in Venezuela and the Soviet Union, to name a few.

If you need more examples, read the link below:

Why Socialism Fails | Hoover Institution analogy of the jockey and the horse explains the continued appeal of socialism. Socialists believe that socialist regimes have chosen the wrong jockeys to ride the socialist horse to its deserved victory. Bad jockeys such as Stalin, Mao, Fidel, Pol Pot, and Hugo Chavez chose tactics and policies that led their socialist horse astray. But actually, a look at how the Soviet Union actually worked reveals that it’s the horse itself that’s the problem. Why Socialism Fails | Hoover Institution

But let us examine further the downfalls of socialism. There are a few factors that socialistic proponents have most likely never considered. Here are 4 hidden problems of socialism.

4 Hidden Problems with Socialism

Hidden Inequalities – Equality is the biggest wish for socialism lovers. I have news for you, true equality does not exist in the real world and it never will. You can read my earlier article about income equality which explains the reasons equality is a pipe dream.

Let us imagine for a moment that we are living in world where everyone earns the same amount of income. The fact is that this world will still need people to decide what is best for society; people will need to determine who gets treated first in the single payer medical world; and what laws need to be enforced and who will enforce them, and so forth.

This means that a special group of people will have more authority and power than others. I’m sorry folks, but this is not equality – this is social inequality. And these people with the authority and power will favor certain people over others – because group dynamics works that way– which will lead to even more social inequality. It is inevitable.

Finally, your socialistic society will need to have a leader. There is no way around this – the question is how much power is this leader going to have? If other socialistic countries are any indication, your leader will have infinite power. After having this level of power, do you really believe your leader is going to earn the same level of income and live in the same kind of home as everyone else? Absolutely not – and because of this fact, your society now has even more inequality.

Higher Death Counts – Yes, you read that right, socialistic nations equal higher death counts. History proves this disturbing fact. And even more disturbing is the fact that most of these deaths are at the hands of their own country, and not because of war with other nations.

Here are some approximations of how many have been killed by their own government:

Remember, your leader has the power to decide at any time, what group of people will die. And no reason is required to execute them. And the sad thing is that you will not be able to vote them out because that’s how socialism works. Look at other nations – we’ve already witnessed this fact.

Zero Incentive – The biggest question that people ask about a socialistic government is who is going to be the garbage collectors? No one will want to perform this task, yet it will have to be done. The garbage collectors in your utopia will have to be ordered to empty your garbage, and the person who orders them will not be equal to them in status or power.

A more disturbing fact in your utopian world is that your garbage collector will earn the same income as your brain surgeon. Do you not see the problem with this? Why would anyone want to put themselves through all the schooling, all the sleepless nights as an intern, just to earn what a garbage collector or a dog catcher earns?

You see, no one will have any incentive to excel in your utopian world. There is no reward or pay off for working hard under socialism. This has always been a huge problem with this ideology.

The Scandinavian Mirage – Many proponents of socialism will quickly refer to the apparent success of the Scandinavian nations, who they claim use many elements of socialism.

I call this the Scandinavian Mirage for two reasons. The first reason is because their government requires citizens to pay around 65% taxes on their income. This creates the lack of incentive problem that we discussed earlier. Incidentally, one of the biggest advocates of socialism in America is Bernie Sanders – yet his tax returns indicate that he only paid 13% taxes in 2016. And Bernie also has more than one house, which is another socialism no-no.

The second reason for the Scandinavian Mirage is that they spend very little on military and defense. In today’s world, every nation must have the ability to defend itself.  So why don’t the Scandinavian nations spend a sufficient amount on their military?

It is because they are counting on the “capitalistic countries” in the world to defend them. They know that powerful nations like the United States and Great Britain will come to their aid if they are ever attacked. All they need to do is maintain a friendly relationship with them.

By spending less on their military, these nations have more to spend on social causes.


The interesting thing about socialism is that it was created by Karl Marx to attack the capitalists. And Marx never actually lived in or created a socialist society, he lived virtually his entire adult life in a capitalist society.

So the father of socialism never even tested his theory in real life. And it was a theory that was created solely out of envy. What’s interesting is that this same theory is being promoted by members of academia who are envious of the capitalists who are earning more than they ever will.

Listed below are some more references about socialism:

Governments Keep Turning to Socialism, Even Though It Always Fails | RealClearPolitics, more than anything else, explains why the world is twisting in financial turmoil in recent weeks. Not just Greece, but at least a half a dozen nations appear to be on the verge of bankruptcy because they can’t afford the social welfare states they have, and the bills are coming due. The socialists are getting hammered. Governments Keep Turning to Socialism, Even Though It Always Fails | RealClearPolitics

The Failures of Socialism | Principles of Macroeconomics ECO 201

Despite the good intentions of many socialist reformers, there are serious flaws with their proposals. In the present lesson, we will explain the major theoretical problems with a society that abandons the institution of private property and tries to replace it with socialism. In other words, using our knowledge of economics we will try to simply think through the idea of socialism and highlight some major problems that will occur any time it is implemented. The Failures of Socialism | Principles of Macroeconomics ECO 201


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