Jacinda Ardern says that Neoliberalism has failed: Time for a history lesson

KERRY MARSHALL/GETTY IMAGES
Jacinda Ardern: “New Zealand has been served well by interventionist governments.”

[…] “Neoliberalism” traditionally describes the political shift in the 1980s towards privatisation of government services, a focus on individual freedoms over collective good, and a general glorification of market principles.

[…] “New Zealand has been served well by interventionist governments. That actually it’s about making sure that your market serves your people – it’s a poor master but a good servant,” Ardern said.

“Any expectation that we just simply allow that the market to dictate our outcomes for people is where I would want to make sure that we were more interventionist.”

[…] “For me the neoliberal agenda is what does it mean for people? What did it mean for people’s outcomes around employment, around poverty, around their ability to get a house? And on that front I stand by all our commitments to say that none of that should exist in a wealthy society. And there are mechanisms we can use that are beyond just our economic instruments and acts, to turn that around,” she told RNZ.

-Stuff

Labour leader Jacinda Ardern has said that neoliberalism has failed and that New Zealand has always been served well by ” interventionist governments “which are weasel words for socialism and an interfering nanny state. Examples of failed socialist countries are plentiful and cannot be reasonably compared to successful and prosperous New Zealand in any way shape or form. Ms Ardern needs to have a history lesson.

History shows us that socialism should be considered a thoroughly discredited system of the past. In 1991 the Soviet Union collapsed and then in 1989 the Berlin Wall came down. China re-established the Shanghai Stock Exchange in 1990.

Socialism always fails because

[…] it’s a flawed system based on completely faulty principles that aren’t consistent with human behavior and can’t nurture the human spirit.

Why Socialism Failed:

1. Socialism is the Big Lie of the twentieth century. While it promised prosperity, equality, and security, it delivered poverty, misery, and tyranny. Equality was achieved only in the sense that everyone was equal in his or her misery.

[…] A pyramid scheme is ultimately unsustainable because it is based on faulty principles. Likewise, collectivism is unsustainable in the long run because it is a flawed theory. Socialism does not work because it is not consistent with fundamental principles of human behavior. The failure of socialism in countries around the world can be traced to one critical defect: it is a system that ignores incentives.

In a capitalist economy, incentives are of the utmost importance. Market prices, the profit-and-loss system of accounting, and private property rights provide an efficient, interrelated system of incentives to guide and direct economic behavior. Capitalism is based on the theory that incentives matter […]

2. The strength of capitalism can be attributed to an incentive structure based upon the three Ps: (1) prices determined by market forces, (2) a profit-and-loss system of accounting and (3) private property rights. The failure of socialism can be traced to its neglect of these three incentive-enhancing components.

3. By their failure to foster, promote, and nurture the potential of their people through incentive-enhancing institutions, centrally planned economies deprive the human spirit of full development. Socialism fails because it kills and destroys the human spirit–just ask the people leaving Cuba in homemade rafts and boats [and those waiting in long lines today in Venezuela struggling, and often failing, to buy food].

4. The temptress of socialism is constantly luring us with the offer: “give up a little of your freedom and I will give you a little more security.” As the experience of this century has demonstrated, the bargain is tempting but never pays off. We end up losing both our freedom and our security.

[…] Capitalism will play a major role in the global revival of liberty and prosperity because it nurtures the human spirit, inspires human creativity, and promotes the spirit of enterprise. By providing a powerful system of incentives that promote thrift, hard work, and efficiency, capitalism creates wealth.

The main difference between capitalism and socialism is this: Capitalism works.

 

 

 


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