Dr. Doug Cardell

An Eclectic Economist Explains Evidentiary Economics

Clear Thinking in a Complicated World

“Ideology asks for acceptance—Intelligence asks for evidence.”
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Why Socialism Struggles

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Featured Article:

   
   September 25, 2025

I'm excited to announce the launch of my new book, Why Socialism Struggles: Exposing the Economic Errors That Undermine Utopian Ideals, on January 20, 2026. This book, now available for preorder in a beautiful hardcover edition, with the Kindle version expected to follow by mid-November, is a must-read for those interested in economics, political philosophy, and critiques of socialism. The hardcover version is a limited run, with a paperback version to follow. I'd appreciate your support through preordering, and since supplies will be limited, preordering will guarantee that you can obtain a copy. If you've been intellectually stimulated by reading the articles on DougCardell.com, then you will find the book even more engaging. It covers topics that you may have read about here, but in greater depth. In the next few articles, beginning with this one, you'll get a sneak preview of the valuable insights the book offers. In Chapter 1, "What Is Socialism?", we learn that economic systems with either too little or too much control are inherently flawed and destined to fail. This chapter also provides an initial examination of capitalism, as understanding what socialism is requires understanding what it is not. The chapter discusses spontaneous order, the natural organizing system that underpins free-market capitalism. In a capitalist system, the values of the people drive the economy. Consumers influence what gets produced and sold by choosing what to buy. While some government intervention is necessary for spontaneous order to function effectively, the choices of the people ultimately take precedence over government decisions. We analyze socialism and fascism as forms of centrally planned economies (CPEs). Our examination reveals that it is impossible to centrally plan an economy while allowing people to remain free in other aspects of their lives. This contradiction is why socialism inevitably leads to dictatorship. When the state strips individuals of the ability to make economic choices—such as deciding what to own, where to live, and what job to pursue—what does freedom truly mean? Democratic socialism and communism, as they are often described, do not actually exist in practice. The social democracies of Europe, such as Sweden and Denmark, are frequently mislabeled as democratic socialist countries. In reality, they operate as capitalist economies with robust social welfare systems. Democratic socialism would imply a system where the economy is controlled by the state, governed by officials who are elected by the people. However, this scenario has only occurred for very brief periods in history. True communism has never been realized because it represents a highly advanced form of socialism, and socialism itself has never sustained enough success to evolve into communism. Socialism and fascism are often mistakenly viewed as opposites. While they do have some minor technical differences, both are types of centrally planned economies (CPEs). To label them as opposites is akin to comparing a giant sequoia to a giant redwood and declaring them opposites due to their differing shapes and hardiness. In reality, both are towering trees, just as socialism and fascism share foundational characteristics. The true opposite would be without the central features of either, like a dwarf willow that typically grows no taller than three inches. We delve deeper into the concept of spontaneous order, which is a remarkable natural process that enables a system to organize itself without external direction. The human body serves as an excellent example, as most of its functions operate independently of our conscious control. In fact, the majority of these processes occur without our awareness, yet our bodies function seamlessly on their own. Occasionally, spontaneous order can benefit from intervention. For instance, when we become ill, medical intervention can help restore our health. Today, people live longer than they did a century ago, primarily due to advancements in medical care and interventions. Economic systems function at their highest efficiency when each individual is motivated to pursue their own self-interest. It's crucial to differentiate between the concepts of self-interest and selfishness, as they carry significantly different implications. Self-interest is fundamentally tied to the survival and well-being of all living organisms, including humans; it drives individuals to seek resources, make choices, and engage in activities that bolster their own existence and enhance their quality of life. Conversely, selfishness transcends the healthy pursuit of self-interest and often undermines one's genuine needs and long-term goals. While self-interest seeks to improve one's own situation in a way that acknowledges the interconnectedness of society, selfishness is characterized by a disregard for the interests of others. It manifests in actions that involve taking from those around us, whether through deceit or coercion, with the intent to enrich oneself at the expense of others, typically leading to a breakdown in trust and community. In essence, where self-interest can foster cooperation and mutual benefit, selfishness can breed conflict and resentment. In the next article, we will preview Chapter 2. If you're ready to preorder, you can do so now at 'Amazon.'

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