Liberty Discussion on ‘Why Socialism Won’t Work’ by Allison Schrager

On February 28, the participants of Liberty Discussion gathered to analyze Allison Schrager’s ‘Why Socialism Won’t Work’. The article, published on Foreign Policy, argued why capitalism still stands as the most viable economic system in the world.

According to Schrager, stands as the essential tool to maintain effective price through the chemistry of demand and supply. In favor of a market-oriented system, participants put forward the example of the idealized healthcare system of the Canadian government, which leaves many citizens waiting for a longer period for critical healthcare. Although government-led services fulfill the essential needs of many citizens with limited access to resources, participants also argued that it is important to limit such services to the minimum. For example, the Nepal Airlines Corporation may have delivered basic air-travel services across the country in the past, the airline has now lost its competitive edge in the presence of numerous private airlines. The discussion concluded that state intervention, with services like these, only prevents the market mechanics of demand and supply to unfold in a manner beneficial to the people.

The participants agreed that while socialist economies focus on distributing the economic pie, capitalist economies encourage growing the pie, through risk-taking and innovation. However, participants argued that capitalism is not free of flaws. Although capitalism promotes competition, in practice, many capitalist economies have given way to cronyism and market monopolies.

Even though the time was limited, participants were able to experience a vibrant session. As always, they can continue in the official Facebook Group. If you also want to join the Liberty Discussion, do write to us.