Op-Ed: Why Free Markets Trump Socialism

By Steve Levy

Our next generation is being indoctrinated to believe that socialism - and even communism - is a far better system than the free market system that grew America into the greatest economic power in world history.

They are told that socialists are humanitarians, while believers in capitalism are cold-hearted, selfish exploiters.

One of the prime examples I use to explain the benefits of free market capital investment over socialism is the following:

Imagine that 100 classmates are on a boat that capsizes and they’re forced to swim to what they believe is a deserted island.

They are forced to start everything from scratch, including how they will govern themselves.

In the early going, they will act collectively. They will go out and collect berries, put them in a pot and distribute them equally. 

They’ll plant some crops together and distribute equally whatever they harvest. They’ll survive, but barely. 

Now imagine that, one day, one of the stranded students walks over a mountain on the island and sees these plush fields with tremendous crops growing throughout. He meets up with the farmer who cultivates the land.

The farmer tells the young man that he would be willing to lend the students some of his extra equipment for planting, harvesting and irrigation.

He notes that, with this equipment, the stranded students will be able to quadruple their harvest. 

All he will ask for is a slight 10% of the crop as payment for the loaning of my equipment. 

That’s how capitalism, or better termed as free markets, works:

The farmer makes a 10% profit while those who borrow the equipment are able to dramatically increase their harvest and their quality of life.

Ultimately, the students will spread out and start getting land of their own. Some will grow more than others. They’ll make sure that everyone is fed, but, with private ownership now in play, it will incentivize them to grow more and more. 

That’s what free markets do. They grow the size of the entire pie; it doesn’t matter if the richest among them is getting a bigger slice of the pie, because everyone else is as well. 

Meanwhile, under socialism, all of the members continue to get the same small sliver, because the pie never grows.

If you doubt the veracity of this argument, take a look at a photo of the two Koreas at night from outer space.

The socialist North Korea is pitch dark, while the vibrant South Korea is lit up like a Christmas tree.

Ask the students: Which Korea would you rather live in?

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Steve Levy is president of Common Sense Strategies, a political consulting firm. He served as Suffolk County, New York, executive, as a New York state assemblyman and host of the “On the Right Side Podcast.” He is the author of “Solutions to America’s Problems” and “Bias in the Media.” www.SteveLevy.info @SteveLevyNY, steve@commonsensestrategies.com.