Why Do Socialist Policies Worsen Inequality?

Socialist policies deepen polarization. Why is that? Because they undermine freedom. When individual liberty is threatened and property rights are infringed upon, society gradually loses its vitality and the economy stagnates. The socially vulnerable are pushed into even greater hardship. The result is polarization.

Some people casually say that polarization occurs because ours is a capitalist society. That reflects a misunderstanding of the capitalist system in which they themselves live. If one were to live under a socialist system, one could experience polarization so severe as to be brutal. Even those who criticize capitalism do not want such an experience.

Polarization is not an inherent characteristic of capitalism. Disparities exist in every society. Polarization worsens only when policy failures intensify it. If so, the best way to address polarization is to reduce the misguided policies that cause it. That means dismantling socialist-style policies and shifting to pro-capitalist policies.

Capitalism-friendly policies promote economic growth. Growth creates opportunities for vulnerable groups to earn income and build their wealth. In that process, the middle class expands and polarization declines. If there are still vulnerable groups left behind by such growth, welfare can be provided to them. This is sustainable because it is supported by the fruits of economic growth. In this way, society can maintain its vitality and continue reducing polarization.

In our country as well, socialist policies have penetrated various sectors, though to differing degrees. Sectors more heavily shaped by socialism are closed and lose vitality because entrenched interests monopolize privileges, causing great harm to the public and consumers. By contrast, sectors that preserve the purity of a capitalist approach remain highly dynamic because they are open and competitive.

When the socialist ideal of equality is put first, uniform systems such as rationing are introduced. People become lethargic, and society turns into one of endless struggle in which only political conflict matters. As voluntary private transactions disappear and government coercion increases, society becomes more rigid and eventually degenerates into a controlled state.

When protectionist policies for specific groups are prioritized, society becomes one that pursues privilege. Individual rights are weakened while privileges are concentrated in the hands of interest groups. Privilege benefits certain groups, but it harms the vast majority of people. Political struggles erupt as groups compete for privilege, and social conflict increases. The more socialist policies intensify, the more difficult social integration becomes.

Socialist policies are not for the people. They amount to nothing more than sacrificing the people for ideology. Now is the time to reduce the socialist policies that have spread throughout our society.

Sung-no Choi, President of the Center for Free Enterprise (CFE)

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Original title: 사회주의 정책은 왜 양극화를 심화시키나

Author: Sung-no Choi

Date: 2024-08-08

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=press&idx=26788