Socialism and Inflation Both Decapitalize an Economy
By R. J. Rushdoony
Decapitalization means the progressive destruction of capital, so that a society has progressively less productive ability. Decapitalization is the dissipation of accumulated wealth (Prov. 14:23).
Some of the potentially wealthiest agricultural countries are importers of agricultural produce, such as Venezuela and Chile. The fishing-grounds off the Pacific Coast of South America are some of the richest known to the world, rich enough to feed the countries of that area.
Inflation succeeds when people have larceny in their hearts, and the same is true of socialism. Socialism is organized larceny; like inflation, it takes from the haves to give to the have-nots. By destroying capital, it destroys progress and pushes society into disaster.
As the products of capitalization begin to wear out, new capital is lacking to replace them, and the state has no capital of its own; it only impoverishes the people further and therefore itself by trying to create capital by taxation.
Decapitalization means the progressive destruction of capital, so that a society has progressively less productive ability. Decapitalization is the dissipation of accumulated wealth (Prov. 14:23).
Some of the potentially wealthiest agricultural countries are importers of agricultural produce, such as Venezuela and Chile. The fishing-grounds off the Pacific Coast of South America are some of the richest known to the world, rich enough to feed the countries of that area.
Chilean fishermen cannot market fish properly and dump marvelous catches of fish into the sea, because they have neither storage nor transport to take their fish to the markets. Thus, there is neither a lack of labor nor a lack of markets for the fish, but necessary capitalization to provide the facilities for bringing labor, produce and market together is lacking.Much of the world is in the same predicament: it has the labor, the natural resources, and the hungry markets for its produce, but it lacks the necessary capital to make the flow of goods possible. Socialism tries to solve this problem but only aggravates it because it furthers the poverty of all concerned. Socialism and inflation both accomplish the same purpose: they decapitalize an economy.
Inflation succeeds when people have larceny in their hearts, and the same is true of socialism. Socialism is organized larceny; like inflation, it takes from the haves to give to the have-nots. By destroying capital, it destroys progress and pushes society into disaster.
As the products of capitalization begin to wear out, new capital is lacking to replace them, and the state has no capital of its own; it only impoverishes the people further and therefore itself by trying to create capital by taxation.
