Dear Friends,
It seems to me, Canada is on the path to Venezuela. Venezuela was the richest country in South America after the oil boom. Once the communists gained power it went from the richest to the poorest. Not because the oil dried up, but because communists are great at usurping power but can’t run a spoon. Regardless of the intention, good or bad, of the goal, or of the people in charge… the policies of socialism always and everywhere create poverty, crime, and despotism. Venezuela, North Korea, and Cuba are a few examples. For some inexplicable reason, Canadians saw the poverty, crime, and despotism that socialist central planning brings, and thought to themselves, “I want some of that!” Then they set themselves to getting it.
Socialism or central planning is a system where those who are unable tell those who are able how to do their job. The problem is that the ability to usurp power is a different skill set than that of being able to build, innovate, and create. Those who can do, and those who can’t demand those who do… to submit. Is it any wonder then that central planning always results in poverty, crime, and despotism? How could it not? Those in charge force those who do things, to do them as the central planners demand, at the point of a gun. So those who do must do what they do burdened by ever-growing stupid regulations. The people at the center get an ever-bigger cut of the constantly shrinking pie as well. As a result, all forms of socialism produce suffering… Canada is no exception.
The thing about central planning and socialism is that on paper they sound great. The central planner looks at a factory and thinks, “Look at how efficient that factory is, if only I could apply that to the economy, scientifically, the economy would be that efficient!” It makes perfect sense to them. The problem with that thinking is it’s a category error. A factory is a Mount Fuji problem. That’s a problem where there is one peak that all upward movement is towards that peak. An economy, however, is a different category. It’s a complex system, or a dancing landscape. This is one which upward movement may be away from the optimal solution. There may be peaks and valleys between where one is and the ideal. The Canadian economy then is in a different category than a factory.
As well as being a categorical error, central planning’s vexing and uncanny ability to draw poverty from plenty leads to crime and then despotism. As the pie gets smaller and the government’s share gets bigger, little people fight over the scraps. Moreover, the hoi polloi look up at the elite and see them get more corrupt by the day. Since people follow their leaders, the whole of society becomes corrupt. This can only lead to crime and more economic disruption. To stem the crime the elite pass more and more draconian laws. Then lead the people to more crime by example. Eventually the people become fed up with their leadership and the central planner has to resort to canceling elections, banning candidates, and defrauding elections. Soon the gloves come off and despotism is undeniable, like in Canada.
You can vote your way into central planning but you have to fight your way back out. Unless someone else is willing to fight for you. That only happens when they have something to gain… and it usually doesn’t include your best interests. I have to wonder if Pierre Poilievre gains traction in the polls whether the elite will ban him from running for being a right wing extremist? After what they did to the truckers’ protest, and got away with, nothing is off the table. Canada is showing signs of being in the later stage of central planning’s catastrophe. The EU is ahead in that regard but Carney has got the pedal to the metal. The Canadians, however, seem to like their despotism. Maybe they were cowed by the response to the Truckers protests. The Soviet Union, Iran, and Venezuela are likely Canada’s future.
Sincerely,
John Pepin
