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Today we turn our attention back to Greece. Over at the Mises Institute website we find a post written by Patrick Barron. The title of this post is Greece Illustrates 150 Years of Socialist Failure in Europe and I have reproduced it below.
The reason that I am bringing this post to your attention is that the situation in Greece demonstrates a point that we have been making lately, most recently presented in our post titled Visibilium Omnium, et Invisibilium (see here). In this post we wrote:
The Credo begins with the following text:
We believe in one God,
the Father, the Almighty,
maker of heaven and earth,
and of all that is, seen and unseen.
The reason that I am drawing your attention to this passage is due to the fact that when we recite the part about the …Maker […] of all that is, […] unseen, we are dealing with all the “processes” in the natural law that govern the behaviour of us fallen human beings.
To develop this above thought further, when dealing with individual human behaviour or organizational behaviour, one is ALWAYS dealing with constructions that MUST conform to the “of all that is, […] unseen”. In the Visibilium Omnium, et Invisibilium post, we demonstrated how human behavioural traits can be recognized regardless of the area or discipline of human activity that a particular individual engages in.
In today’s post, we turn our attention to the behavioural aspects of organizations. To be more precise, we will examine how organizations likewise need to conform to this
general principle natural order “of all that is, […] unseen”. The below post clearly explains how organizations that at their base have a faulty construction, i.e. do not conform to “of all that is, […] unseen” are destined to fail. This observation made in the below post, can also be extended to organizations such as Modernist Rome, an organization that has thrown away its Thomist philosophical foundation and as a result, is in the process of “dying away”. Here I would just draw your attention to the John Lamont essay that appeared at the Rorate Caeli blog that we highlight in various posts. (see here) Here is the relevant passage:
The key to the neomodernist capture of power is however also the reason for their failure to sustain a religious culture. Neomodernism is not like Protestantism, which contains ideas with a positive content as well as being a rejection of Catholicism. These ideas – justification by faith, and the like – are not correct, but they say something substantial, and have an appeal that can give rise to an important movement. Neomodernism, however, on a religious level is a purely negative thesis. As a result it has no attractive force of its own, and ecclesiastical structures that fall into its grip eventually die away – a process now visible all over the world.
Given the above, below is a good explanation of another organizational construction erected on a “neo-modenist” foundation, i.e. socialism. When reading the below, please keep in mind how a parallel case can be made between the different socialist experiments that have been tried in various countries and the different “theological
experimants accents” of the various post-conciliar popes. To be perfectly frank, the latest iteration of this post-conciliar “accenting” will play out before our very eyes in 89 days from today at the Stealth Sex Synod of Bishops of 2015.
And now, Patrick Barron’s post that was published at the Mises Institute.
Greece Illustrates 150 Years of Socialist Failure in Europe.
Greece cannot pay its debts … ever. Nor can several other members of the European Union. That’s why Europe’s elite are loath to place Greece in default. If Greece is allowed to abrogate its debts, why should any of the other debtor members of the EU pay up? The financial consequences of massive default by most of the EU members is hard to predict, but it won’t be pretty. Europe has built a financial house of cards, and the slightest loss of confidence will bring it crashing down.
The tragedy of Europe has socialism at its core. Europe has flirted with socialism since the late nineteenth century. Nineteenth century Bismarckian socialism produced two world wars. Leninist socialism slaughtered and enslaved hundreds of millions until it collapsed, mercifully without a third world war. Yet, not to be deterred, in the ashes of World War II, Europe’s socialists embarked on a new socialist dream. If socialism fails in one country, perhaps it will succeed if all of Europe joined a supra-national socialist organization. Oh, they don’t call what has evolved from this dream “socialism,” but it is socialism nonetheless.
Socialism will not work, whether in one country, a multi-state region such as Europe, or the entire world. Ludwig von Mises explained that socialism is not an alternative economic system. It is a program for consumption. It tells us nothing about economic production. Since each man’s production must be distributed to all of mankind, there is no economic incentive to produce anything, although there may be the incentive of coercion and threats of violence. Conversely, free market capitalism is an economic system of production, whereby each man owns the product of his own labors and, therefore, has great economic incentives to produce both for himself, his family, and has surplus goods to trade for the surplus product of others. Even under life and death threats neither the socialist worker nor his overseer would know what to produce, how to produce it, or in what quantities and qualities. These economic cues are the product of free market capitalism and money prices.
Under capitalism, man specializes to produce trade goods for the product of others. This is just one way of stating Say’s Law; i.e., that production precedes consumption and that production itself creates demand. For example, a farmer may grow some corn for his family to consume or to feed to his own livestock, but he sells most of his corn on the market in exchange for money with which to buy all the many other necessities and luxuries of life. His corn crop is his demand and money is simply the indirect medium of exchange.
Keynes attempted to deny Say’s Law, claiming that demand itself — created artificially by central bank money printing — would spur production. He attempted, illogically and unsuccessfully, to place consumption ahead of production. To this day Keynes is very popular with spendthrift politicians, to whom he bestowed a moral imperative to spend money that they did not have.
We see the result of 150 years of European socialism playing out in grand style in Greece today. The producing countries are beginning to realize that they have been robbed by the EU’s socialist guarantee that no nation will be allowed to default on its bonds. Greece merely accepted this guarantee at face value and spent itself into national bankruptcy. Other EU nations are not far behind. It’s time to give free market capitalism and sound money a chance: it’s worked every time it’s been tried.