Why did socialism fail?
(This is a follow-on from thread HG Wells 1933 “The shape of things to come”. Before reading this book, I had no clue as to the vast difference between socialism and communism).
Reading further, Wells transition to utopia is a rehash of Leninist socialism. So why did this fail.
Timeline of book
- p. 47 Criticism of capitalism.
- pp 54-71 The Great War.
- pp 85-168 Between the wars.
- pp 168-211 The Last War. Predicts that Japan, Germany, Italy and Austria will be defeated by China, the US, Britain, France and Russia.
- pp 211-215 The pandemic.
- p. 250-258 De Windt fills in what Marx omitted – how to run a socialist control of production. Promotes socialist education as a total replacement for human nature.
- pp. 276-286 First Basra conference. Aviators start a transport workers union around which a world government will later form. Beginning of Lenin-like socialism.
- pp. 306-310, 352-362 Second Basra conference. Starts a World Government and imposes a Stalin-like tyranny.
- pp. 349, 371-374 Megève conference. Socialist propaganda has been completely successful, everyone is now an altruist. End of World Government in a laissez-faire utopia.
Where Wells went wrong in the worst possible way.
- The assumption that socialist education is a total replacement for human nature, ie. that nurture always trumps nature. In real life, biologists have found that nurture and nature have roughly equal influences on behaviour.
- The assumption that capitalism and socialism are mutually exclusive opposites. They work together. Wells’s mantra “The primary task of world administration is to arrest this squeezing out of human beings from active economic life” is easily satisfied in a capitalist economy.
- The assumption that socialism works.
- The assumption that the 100% government control of socialism can transition to a 0% government control in utopia overnight.
Problems with Lenin-like socialism. What went wrong with socialism? Well, a lot of things.
- Captialism has problem of competition → efficiency → overproduction and unemployment. Socialism has the opposite intrinsic problem of low efficiency and underproduction.
- The US claims that it “won” by forcing more and more Soviet people into arms production away from goods production.
- Power hunger by minority ethnic groups led to the physical break-up.
- In socalism, everything new had to be approved by the government. Even with the best intentions, the country drowned in red tape that could only be cut by bribery. Without bribery, the country would have collapsed sooner.
- Hard physical work in a low-paid job leads to massive problems with alcoholism.
- Secret police enforcing the “no capitalism” and “no criticism” rules. The subsequent curtailment of transport and communications for the convicted people turns huge areas (eg. Siberia) into vast prisons.
- Secrecy in all levels of government attracts corruption.
- Jealousy of better standards of living elsewhere.
- Malicious compliance.
- Organised crime.
I want to discuss “Malicious compliance” in more detail. “Malicious compliance” is more than “work to rule” and less than “sabotage”, and unlike sabotage is entirely legal under a socialist scheme. It occurred everywhere throughout the USSR and can be blamed for the exceedingly high rate of failure of complex military equipment. Suppose as an example a producer is contracted to produce 10,000 shoes. Malicious compliance is:
- Producing 10,000 shoes, so satisfying the contract,
- all the same size,
- with different numbers of left and right feet,
- small,
- from the cheapest possible leather, stitching and glue,
- without any pretense of quality control.
- etc.