Wednesday, January 28, 2009

Socialist business cycle

One of the goals of socialism is to eliminate the business cycle:
"The unfettered competition of capitalists is replaced by cooperation and the business cycle by planned stability."

I agree that socialism would indeed eliminate the business cycle. But instead of "planned stability," you get perpetual recession. As occurred in Cuba, the Soviet Union, and Maoist China, the economy declines year after year. I prefer instability to their kind of stability.