Sunday, May 6, 2018

Directional Analysis

A thousand skeptic hands
Won't keep us from the things we plan
Unless we're clinging
To the things we prize
--Howard Jones

Good insight here. One way to evaluate the effectiveness of capitalism and socialism is to assess directional economic effects, i.e., what happens when a country moves more toward capitalism or socialism?

The general results are these. When a country introduces socialist 'reforms,' the country's economy tends to deteriorate. When a country introduces free market reforms, the country's economy tends to improve.

Stated differently, directional analysis suggests that half measures toward socialism make things worse. Half measures toward capitalism make things better.

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