CAPITALISTIC MANIFESTO

CAPITALISTIC MANIFESTO (Do not rush – read it. These are 7 pages about your fate)

Doctor Yuri Okunev, New York, USA Professor Alexander Yabrov, Toronto, Canada

DEGENERATION OF THE AMERICAN DREAM –

Unearned welfare from the cradle to the end

(Objective analysis of the ongoing Trump – Clinton fight)

Discussions of the current presidential election campaign of the 2016 represent a collision of

ideologies of capitalism and socialism though all the participants thoroughly avoid this terminology.

It is well known to the thoughtful people that it is namely capitalism which is based upon private

property of the tools and means of production, free entrepreneurship and the market economics, with

minimal interference by the state, resulted – during the last two centuries – in the tremendous

achievements of humankind in all spheres of life: in manufacturing, technology, science and culture, in

the daily life of common people, and even in social and economic support of the needy. Nevertheless,

politicians are afraid to say something positive about capitalism. They even avoid using this word.

Nowhere would you meet the political parties which would use the word “capitalism” in their name.

There is no “Capitalistic Party”, no “Capitalistic Party of Entrepreneurs”, or say, “Capitalistic Party of

America”.

It is well known to many, but far from everyone, what kind of the monstrous consequences

brought socialism based upon public property of the tools and means of production, and the

governmentally regulated economics with absolute interference of the state in all the spheres of life of

the population. Italy under Mussolini, Germany under Hitler, Soviet Union and the Eastern-European

countries of the socialistic camp, China, North Korea, Vietnam, Cuba, and Venezuela are the most

expressive, but not exhaustive examples. Nevertheless, many politicians use the term “socialism” in a

rainbow-pink light. In our days we now have a multitude of the Socialistic Parties, Socialistic Worker’s

Parties, and even National-Socialistic Parties, and the like…All these acutely remind to those who know

history, of the name of the Hitler’s party: “National-socialistic Worker’s Party of Germany”.

American youth at mass supports in the current electoral run Mr. Bernie Sanders – a socialist

with a strong Marxist-Leninist tendency. When we hear Mr. Sanders speak at length about anti-people’s

Wall-street, we unwittingly recollect our younger years, when in Soviet elementary schools we were told

of “this den of imperialism”, and of getting rich at the expense of the laborers by these “wall-street

sharks of bourgeoisie…”, and of other horrors of capitalism. We recall also when coming many years ago

to New York, we visited Wall Street and were terribly disappointed: the ominous sinister “sharks”

happened to be very businesslike, hard working young people. And no “lion dens” could be observed

anywhere around.

All this would be laughable if it were not so sad. American youth, to whom belongs the future,

as they say – under the influence of their left-liberal mentors, held captive of their own historic-social

ignorance, might with time, as a devil’s joke, build socialism in America, bring this country to the point of

no-return from degradation, after which the proponents of capitalism would find themselves in the

concentration camps; that being the best case. The worst case is the firing squad - soviet style.

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Striving for freedom – as an opposite to oppression, dependence and slavery – is proclaimed to be

a fundamental property of the human spirit introduced by the Providence from the very beginning of

humankind, and became deeply rooted in the laws, constitutions and numerous declarations. Striving

of Man for freedom became almost a pivotal subject of the world literature and art. Even the fierce

tyrants are trying to persuade one’s subjects that they are the freest in the world. In the years of Great

Terror, population of the Soviet Union, which lived behind a wall of the concentration camp, was

obliged to sing with enthusiasm: “I do not know the other country where a man breathes so freely”.

Does Man so strongly strive to be free, actually? Do people, as a whole, place freedom on a

sufficiently high position in the System of their Values?

Alas! It seems to us it is impossible to answer these questions positively. Furthermore, watching

the dynamics of the social movements for a long time, to our surprise, and we acknowledge with

regret, we observe huge masses in different countries voluntarily choose the way of slavery for

themselves and their children. To their freedom of choice and independence they prefer the patronage

of the state; to their strenuous productive labor of the free individuals – a collective dependence at the

expense of the state funds; to the American dream – dreary, but relatively full vegetation under the

cover of the Trade Unions; to the creative fantasy and entrepreneurial risk – existence at the expense

of the state donations and benefits.

This set of preferences of the contemporary population of the planet, definitely leads not to

freedom, but opposite – to slavery, whose common and unifying name is – socialism.

One of the theoreticians of classical liberalism, outstanding economist and sociologist of the 20th

century, Nobel Prize laureate - Fredric August Hayek - clearly and directly to the point determined

socialism as a road to slavery. His book dedicated to the analysis of socialism is named “The Road to

Slavery”. He and other major theoreticians of classical liberalism of the last century, among them such

titans as Ludwig von Misek and Karl Popper, have proven that the properties found at the base of

socialism – socialization of economics, collectivization and governmentalization of social life of the

individuals - lead unavoidably to the totalitarianism in the political arrangement of society.

History gave people a unique opportunity to test in practice as how true were these conclusions of

the liberal theoreticians. A strict, refined socialistic system, without any reservations, has been built in

the Soviet Union. With the 100% collective property of the tools and means of production, and the

100% control by the State of the social life of the populace. This grandiose socialistic experiment, which

lasted for the most part of the 20th century, has led the largest and one of the richest countries in the

world to the economic and moral collapse. To the people of the USSR, socialism cost tens of millions of

ruined lives. This monstrous circumstance alone demands exclusively serious attention to the soviet

socialistic experiment.

The first generation of the soviet people in 1920’s learned grammar by the verbal combination:

“We are not slaves – slaves are not us”. Learning to read and write these remarkable words, the

neophytes of the socialistic doctrine with great enthusiasm and – pay attention – mainly quite

consciously and voluntarily, have built in Russia a feudal slave-owning system. In comparison to which

horrors of the old regimen’s “slavery” look like stories from the grandmother’s fairy-tales. Since

socialism was built in the USSR by the strict marxist-leninist- stalinist outline, it has turned into a total

slavery extremely quickly. There is no necessity to repeat as how - during several years in the end of the

20’s and beginning of 30’s - Russian peasants were turned into law-less serfs. All the stages of this brief

barbaric process were represented by confiscation of bread and cattle, hunger-killing, exile to Siberia,

partition of families, repressions, executions, liquidation of the hard-working peasantry, and

deprivation of passports and of rights for mobility of those who survived. Less known are the analogous

processes of conversion of socialism into slavery in relation of the soviet laborers and the office

workers. Therefore, as an illustration, we allow ourselves to quote an excerpt from a decree of the

Presidium of Supreme Counsel of the USSR of January 26, 1940 on the prohibition of the transition of

workers-slaves from a one place of work to the other:

“Prohibit unauthorized departure of laborers and office workers from the state, cooperative and

public enterprises and institutions, as well as unauthorized transfer from one enterprise to another.

Departure from an enterprise and institution, or transfer from one enterprise to another and from one

institution to another could be allowed only by a director of the enterprise, or the head of the

institution.”

Soviet laborers and office workers turned, in fact, into state serfs; and directors of factories and

plants and the heads of enterprises – into feudal lords. If to consider that at that time, peasants were in

the collective-farms serfdom already for ten years; this decree permanently legally established the

state slavery in the country. It would be useful to remind it to the contemporary admirers of Stalinism

who experience nostalgic bouts for the Stalinist socialism. It is necessary also to remind that the

“developed” socialism has instilled into the generations of soviet people contempt toward freedom,

democracy, religious tolerance, clemency, and many other properties of a free person, invariably

included into ethic basket of civilization. Soviet socialism washed out from the national character the

feeling of gratitude for help, compassion to the grief of others, and even elementary manifestation of

kindness not inspired by the authorities…

Parallel with the Soviet Union, socialism with racist flavor was built in Germany and Italy. Frederic

Hayek, still in the 40’s, has shown that Nazism in Germany and fascism in Italy were not “the

reactionary forms of capitalism”, as it was asserted by the soviet ideologists, but a form of developed

socialism. Causes of barbarism and violence of the totalitarian regimes of that time in Germany, Italy

and the Soviet Union were contained in the realization of the socialistic planned economics, which

unavoidably led to oppression and slavery of the population, even if it was not an initial aim of the

adepts of socialism. All kinds of socialism, collectivism and planned economy contradict the principles

of a state based on the rule of law and the individual rights.

It seemed that the Soviet and the Nazi experiments would completely avert the humankind from

the idea of socialism. But alas! – This idea is immortal, for namely today it most of all corresponds to

the spiritual and life aspirations of the majority of the population of the planet. Politicians thirsty for

power, skillfully exploit these yearnings. They clearly understood that socialism opens for them the

shortest way to permanent power and ultimately to the unlimited dictatorship. This is where Clinton

and Sanders call up Americans. Socialism appears to be attractive both to the low and to the upper

stratums. To the first, it portends illusory direction toward comfortable parasitic way of life at the

expense of the state; to the others it secures an unlimited power in this state. Here we have that rare

case when the lower classes want precisely that what the upper strata are ready to give them willingly.

It is incredibly difficult to resist this mutual attraction to socialism of these two opposing forces of the

public spectrum…

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In the second half of the 20th century socialistic ideas began winning in Europe. Collapse of the

USSR and the Eastern-European countries taught us nothing. Classical liberalism born in the media of

the European intellectuals – classical liberals who rationally substantiated the advantages of the free

market and the free trade without any interference of government – that classical liberalism which

invariably supported individualism, productive competitive struggle and entrepreneurial risk of

capitalism – started turning 180 degrees toward collectivism, socialization, enforcement of the role of

government in the economic, social and the private life of citizens – in short – in the direction of

socialism. Ghost of socialism wanders over Europe again. In our time, the ghost acquired quite real

contours and got an official name in the scientific literature – European socialism. Avoiding using the

term “socialistic state”, its adherents introduced into use the notion “welfare state”.

An active process of formation of the welfare states takes place currently. We would refer to the

opinion of a prominent Swedish scientist Niles Carlson – director general of the research center in the

area of modern politology and economics of the Uppsala University. He gives a negative evaluation to

the socialistic experiment in Sweden and points at the obvious signs of stagnation of the welfare

economics. By the data of Swedish professor, more than 20% of the able-bodied population do not

work and live at the expense of various welfare programs: support on poverty, pre-pension allowance,

unemployment benefits, support on illness and after illness, and the like. Note – temporary depression

and just a bad mood qualify as illnesses deserving financial state support. We should add that most of

those able-bodied are working in the governmental organizations, or are governmental dependents in

that sense that the largest part of their income comes from the public funds. Capitalism, of course,

would not allow such embezzlement of resources. Professor Carlson notices further that existence of

the welfare state is accompanied by an unavoidable and permanent growth of taxes. This is what takes

place when citizens exist at the expense of the government.

Growth of taxes leads to the increase of cost of goods and services, reduction of investments and

production, decrease of the amount of working positions and appearance of a new category of people

without means. This, in turn, forces the welfare state to introduce additional benefits and make the

next rise of taxes. Vicious circle: “increase of taxes – lowering of economic efficiency – increase of

taxes” could not be broken, so far.

Right now we see on TV the presentation by Mr. Trump of his comprehensive program of

restoration of the American might after eight years of Mr. Obama’s stagnation and decline. Again,

history gives Americans a unique opportunity to choose the natural genuinely American way of

development via entrepreneurship, creative competition, risk and hard work. This is the way out of the

vicious circle of socialism.

Studying the Swedish experience, Nils Carlson came to a conclusion that it is insufficient to

measure the negative consequences of collectivization only by the economic markers. Welfare state

unavoidably deforms the character of Man and his morals. For those who lived in the USSR, this

conclusion is neither new, nor unexpected. The major consequence of the soviet socialism by no

means was the catastrophic diminution of the efficiency of economics, but primarily a monstrous fall of

the moral level of the citizens. As it has been shown in his book “Twilight”, by a one of the ideologists

of the Gorbachev’s perestroika – Mr. Alexander Yakovlev, the consequences of decades of socialism –

dependence, irresponsibility, lying, larceny, and laziness - are being manifested till today. Professor

Carlson has considered in details the influence of the welfare state upon human dignity, which he

defines as a measure of active responsibility of an individual for one’s own fate and the fate of the

people close to him. Healthy, still not old, able-bodied person, who lives on social donations from

national funds, cannot keep the level of merit of a free person – this is the conclusion of the scientist.

“Most of Swedes” - he writes – “so strongly depend on the government that they have neither means

nor capacities to take upon themselves responsibility for their own fates”. In a resume to his studies of

the Swedish model of the welfare state, professor writes:

“General conclusion consists in that the burden of the welfare state inhibits both the economics

and the human dignity. And if we want to increase the efficiency of economics and enhance the level of

human dignity, it is needed to diminish essentially the interference of government both in economics

and in the private life”.

Swedish scientist warns then: “Other countries aspiring to imitate the Swedish model should be

rather cautious – nobody knows when the point of no return will come.” It seems to us that the point

of no return will come when the disease of dependency, which became chronic, will turn into the

slogan of a national dream – Unearned welfare for all from the cradle to end of days!

A schizophrenic level of this slogan should not lull to sleep vigilance of the sensible people – not

only Sweden, but also many other countries definitely are moving to its embodiment. Declaring in

words their adherence to freedom, the multimillion masses prefer in real life an irresponsible life of

slaves under the patronage of the welfare state distributing benefits…

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In the USA, the obtrusive ideas of social dependence are pronounced weaker than in Europe.

Here the rating of the private entrepreneurship not controlled by the government is traditionally high,

capitalism is nearly sacred. Nevertheless, it is also impossible to miss the sprouts of the welfare state.

Professor Mark Saltsberg summarizing his life experience in the USSR and the USA came to the

following conclusion: “After living 23 years in the USA and 45 years in the USSR, I began noticing with

horror the striking similarity of many public-political phenomena in these two countries. It became clear

to me in the last years that America builds here communism, though not noticing it, yet… Slowly,

America is going to that what happened in Russia instantly in the 1917. As a result, in both chambers of

Congress, in the Congresses of the States and other organs of governance, there appeared people

whose only aim is the familiar to us principle – “To take away all and distribute!”

This is what Obama, Clinton and Sanders are aiming for. The striving for socialism, at times

subconscious, by an essential and increasing part of the Americans - is becoming obvious from the

election to election. Many politicians, even of a conservative direction, do not dare to defend openly

the American capitalism. It is becoming unfashionable and unprofitable in any election campaign. It has

become politically incorrect. However, it is necessary to say the truth: we are obliged to capitalism for

most of our achievements – both in the material and in the spiritual spheres.

A frightening form acquires the destructive role of the Professional Unions, which some time ago

defended the rights of the hard-working people, and now extort benefits for those who wish to work

the less, if at all. In the USSR was a popular slogan – “Professional unions are the school of

communism!” We could not understand as how these soviet professional unions, which were under the

thumb, and whose function was primarily the distribution of the passes to the retched “rest homes”,

could be a school of communism – “the bright future of the whole mankind”. The meaning of this

slogan became clear only here, in the USA. Professional unions render the staunch, hard-working

individuals toiling for the sake of realization of their American dream into the collective dependents-

beggars extorting from government and the private employers still new benefits. By the principle: “To

work less - to get more”. It results in decline of the productivity of labor and increase of cost of the

goods and services, which in turn leads to non-competitiveness of the entire branches of American

economics in comparison, for example, with the Asian competitors. In this sense, the trade unions are

the school of communism.

Freedom still occupies a sufficiently high place in the system of American values. But it is

impossible not to notice how it is being washed out by the tides of immigration oriented toward

welfare state, blown out by the socialistic winds from the opposite shores of the Atlantics, deformed

beyond recognition by the disease of the leftism in liberalism. Formerly, most of the immigrants forced

their way to America for the sake of freedom. Now - to say it figuratively – for the food stamps. The

amount of able-bodied people who prefer to “sit on welfare” is growing. This – make a note of it – in a

country created by the generations of purposeful and ambitious individuals, who toiled to an utter

exhaustion for a well-deserved life of independence and freedom. From a country of risky creators-

individualists, America is turning into a refuge of cheapskate extortionists - shrouded in the legends of

the American dream: starting from nothing, to achieve all by one-self. To risk and throw upon the

scales of fate all your strength and abilities, strike the way to independence and wealth – this dream is

being replaced by the irksome arguing, or quiet vegetation under the wing of the welfare state.

Many Americans, who support the socialist reforms advanced by Obama - Clinton, do not even

suspect that they are moving toward slavery. Contemporary socialism is multifaceted and proved to be

dressed up in the attractive humanitarian clothes. It is conquering its position unhurriedly,

inconspicuously. It seizes the rights of the free people on the sly, under the guise of a protector of the

poor… As a result, it seems to many that it is possible to get from the government still new benefits

while remaining to be independent from government. Some presume it is possible to combine

socialistic morals with capitalistic freedom, socialistic dependence with the capitalistic level of

economics. Alas, such a combination does not work. Still, in the middle of the 20th century, in the so

called socialistic camp, the attempts to build “socialism with a human face” were being undertaken.

Yet, it came out with anything but the human face. At that time, academician Andrei Sakharov has

developed a theory of convergence, trying to bring closer socialism with capitalism and create some

symbiosis of the best properties of each other. This project turned up being a utopia. It became clear

that even “socialism with the human face” formally acknowledging the market economics, leads in

perspective to the removal of freedom. By the opinion of serious sociologists and economists, socialism

is in principle incompatible with the capitalistic market economics. And in its development, unavoidably

leads to the following two consequences: beggarly medial level of life, and loss of dignity, freedom and

the rights of the citizens. While analyzing the historical dispute between capitalism and socialism,

Fredric Hayek formulated this pattern definitively and harshly:

“Argument about the market order and socialism is an argument about survival – neither more,

nor less. Following the socialistic morals, would lead to the annihilation of the major part of the

contemporary mankind and impoverishment of the main mass of the remaining one.”

Those who sincerely believe in socialism, equally as those who go by its road subconsciously,

should heed the cited above conclusion of the outstanding scientist…

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In the Biblical story about first Man, it is said how “God expelled him out of the Eden garden…”

where it was possible not to work, being on support of the Creator. And uttered Lord: “In the sweat of

your face will you eat bread…” In the translation from the high Biblical style into common mundane

language, this should be understood as follows:

“It is not the welfare state for you here, gentlemen and ladies. If you wish to be the free people

upon this marvelous planet, it is necessary to toil”.

Nevertheless, the amount of people attempting to neglect this duty at the expense of others

becomes frighteningly huge. The socialistic morals of Mrs. Clinton and Mr. Sanders help these people to

comfortably bear dependency. The left-liberal ideologists are telling them that somebody has left them

destitute. That the rich are obliged to support them. That they do not bear any personal responsibility

for their own fate. That to strain oneself at work is harmful for their health… However nobody knows

when it will come, the point of no return, the point at which the knees of the capitalistic Atlantis would

waver. And then the human civilization will collapse under the backbreaking socialistic burden. For too

few will remain who are creative and hard-working individuals capable and ready for arduous labor for

the sake of freedom. The young generation should be taught to value and support capitalism. This is

what the dispute between Mr. Trump and Mrs. Clinton is all about.

Doctor Yuri Okunev, New York, USA (www.yuriokunev.com )

Professor Alexander Yabrov, Toronto, Canada (alexanderyabrov@yahoo.com)

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