Democratic Socialism Is the Scenic Route to Serfdom
Where today’s socialists want more generous social protections through guaranteed health care, child care, and other benefits-in-kind, the distinction between government ownership and financing will be illusory in practice. Once government covers the costs of a service, it sets limits on how much it pays as the major consumer, creating de facto price controls. Governments attach conditions to their spending, too, defining who can work in an industry or the standards producers must meet. These regulations create shortages in high-cost areas, necessitating subsidized provision to meet demand. Before long the industry is effectively nationalized through regulation. Hayek’s key observation was that intervention creates problems that encourage further corrective intervention, eroding freedom along the way. Today’s socialists might not demand eliminating private property, nor be calling for gulags to enforce their vision. But, combined, their proposed regulatory, spending, and taxing onslaught would severely restrict freedom and undermine prosperity, just like the socialist experiments of old. By Jeffrey Miron and Ryan Bourne Learn more: https://www.cato.org/publications/com…
