# The PIG Guide to Socialism



## Eoghan (Jun 7, 2012)

or more fully "The Politically Incorrect Guide to Socialism" 

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I read this after reading the “PIG Guide to Capitalism” a couple of months earlier. It was one of the books on my Christmas list so I am slowly catching up probably in time for this Christmas.

So what did I make of the book. Well, it gave an insight into the characteristics of socialism as distinct from those who would call themselves socialist. After all if it walks like a duck and quacks like a duck: maybe it’s a duck! 

The main characteristic is the idea that somebody can plan things better. Now in some instances this may be true – a PC can and has been designed to be faster and more robust. The socialist however is dealing in far more abstract concepts such as a planned economy. This is where it falls down. “The market” sets prices and organises labour and resources. To the socialist this is referred to as “laissez fair” a derogatory term for a hands off approach. To the economist of the Hayek school “the invisible hand” of the market guides how things are organised. The problem comes when somebody starts to mess up the market.

How can the market be disrupted? Well at it’s simplest it means that prices are altered. This can come about through regulation or subsidies or some other way the planners intervene. Take green energy in the form of wind turbines. While the subsidy is in place the wind farms are built. The economics look good. Until the set-up cash dries up. Once it becomes a case of maintaining the wind farms the reality of the market re-asserts itself. This is why Hawaii has rusting hulks where once there was a booming business in wind farms. It does not pay to maintain the said turbines without subsidy.

This is the “Fatal Arrogance” of socialism referred to by Hayek. Socialism cannot plan without some idea of how important things are and it gets that from market prices. That is free market prices! Like a lifeboat the market should be self-righting should it “capsize.” The problem is that the central planners are busy redistributing the weight of the lifeboat such that it cannot self-right itself but sinks. 

In reality you cannot buck the market which will eventually give every theoretical Keynsian a reality check. Yes, you can prolong the agony by bailing out failing banks, even countries but sooner or later reality reasserts itself.

Ok the book: it starts with Venezuela and the importation of food by the PDVAL a government quango responsible for supplying state. It seems that having obtained their under-the-table commissions simply had no interest in the food thereafter. (p4) Venezuela of course is a socialist country essentially run by Hugo Chavez. This character is dealt with more fully later (p147) when a whole chapter is devoted to Venezuela who nationalised oil and used it to obtain foreign currency. This cash was then used to buy up industries such as the cement industry because the price for cement fixed by the central planners meant that it was more profitable simply to export. Rather than pay the market rate or admit he was wrong he simply bought out the cement factories. (p154) doing the same with other industries.

North Korea is not a country I know well. Reading about it is shocking as thay were reduced to cannabilism during food shortages and that the philosophy of “Juche” is the worlds 10th largest religion ahead of Judaism.

This explanation of how philosophy has held back a countries development was clear in the “juche” of North Korea and “gram swaraj” the legacy of Ghandi in India (p55) was a revelation it explains succinctly what drives the country (or doesn’t).

Sweden is also dealt with and it was essentially this chapter (previewed on Amazon) that sold me on the book. On the face of it this was a successful socialist country with big government. Until human nature began to reassert itself. As long as the “protestant work ethic” prevailed, people did not take advantage of the state largess. As time went by however that ethic eroded and sick pay now constitutes 16% of government spending. 73% of Swedes are members of the Church of Sweden – this in a country that is 85% atheist! (p103)

In short the book is a ripping yarn a great page turner which will have you laughing out loud at the idiocy of central planning or crying. It covers a lot of bases and uses up-to-date examples. I would thoroughly recommend it!


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