The big difference between capitalism and socialism is incentive

Once again, the youth are being seduced into socialism with the promise of free stuff, economic equality, and the elusive “workers paradise.” But the key thing that is missing in socialism is incentive.

Capitalism gives people the incentive to go to work — to work hard — to provide for their families, to make their lives better than it is now. Investors are encouraged in invest more in businesses, thus providing capital for businesses to use to expand. At the same time, employers have more capital to hire more employees, who in turn do better for themselves. So, in a growing economy, everyone who wants to work can win — the wealthy, the investors, the business people, the employees, and even the government, because more money means more tax revenue.

Socialism takes away that incentive. The government will take care of you — why should you work hard if you can’t get ahead? Just take your free stuff. Socialists like Ocasio-Cortex will want to raise taxes on the “rich” to “pay their fair share” for all that “free stuff.” So as happened under Obama, those who are invested in the stock market will sell to avoid the higher taxes. Socialist love regulations, which imposes increased compliance costs on businesses — which means job loss, as happened under Obama. Democrats like Nancy Pelosi will again be singing the praises of unemployment, which she actually claimed is “good” for the economy.

The stock market eventually bottoms out, and a modest recovery will follow. But, the business future is uncertain, businesses won’t be hiring in such a business hostile environment. Investors will sit on the sidelines waiting for years for better times, what was once called a “capital strike.” People out of work, a tepid economy, no incentive to work. Socialism.