The Socialist Rot

Though Miriam's writing on Adam Smith Blog about Chavez & Socialism's mismanagment of Venezuela, it could well have also been about India. Because its the same scene here. As people starve, grain stocks rot.

Note the statistics:

Grain down the drain (Punjab: 2007-2010)-

•72 lakh metric tonne of wheat grain stored
•65 lakh metric tonne of wheat grain lying in the open
•Wheat grain worth Rs 500 cr to Rs 800 cr rotting

Note Miriam:

'Despite all outrage caused by this scandal, there is nothing really new here. How many times have we witnessed a similar scenario, replayed over and over again? The Soviet Union (both before and after the perestroika) and Cuba are just a few examples. Aside all ethical and theoretical discussions, the system has proven to be unsuccessful and impracticable many times over. We knew this during Adam Smith’s day and we know it now: free markets are the most efficient means of allocating resources. Government meddling, no matter how benevolent its intentions are, will always lead to miscalculations – simply due to the staggering amount of planning involved. Decomposing containers of food in the port of a starving country is testament to this very fact.'



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