Capitalist, Communist and National Socialist economic systems.

Capitalist, Communist and National Socialist economic systems.

by tonytran2015 (Melbourne, Australia).

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(Blog No. 3.. ).

#Capitalism, #communism, #National Socialism,

Conventional “history books” often state that the two victorious economic systems of WW2 are capitalism and communism had made an alliance to defeat the “National Socialism” system. However it is hard to find any clear characteristic definition of a National Socialist economy. Conventional sources always interweave National Socialism with the much criticized racial policies of Nazis Germany.

In this politically polarized world with so much disinformation it is really difficult to find a clear description of those of three competing social systems of WW2. This posting tries give simple description of each of those systems, with their economic characteristics totally decoupled from all racial policies.. This will help with proper characterization of current regimes in the world and prevents the smearing of potential friendly states by devious powerful political and lobbying groups.

1. The essential decoupling of nationalist or racial policies out of the description of any economic system.

The world has been divided into different areas. Inhabitants in each area want to keep the area for themselves. They want to organize their ways of life according to their own wish. They don’t want to suffer from irresponsible actions by people from outside their area. Hence borders are necessary and unavoidable.

By their way of life and their environment, people in each area may have similar characteristics and may share their languages. They may want to strengthen their mutual bonds and arbitrarily define their “race” by combining a number of characteristics that may be defined biologically (e.g. by hair color, by eye color, by bio-metric data, by DNA), by ancestry, by language or by location of living. Some nations may apply some policies regarding their arbitrarily defined “races” in their respective territories. Other nations should leave them alone if their policies do not apply outside their respective territories while not causing their respective own internal problems.

Examples:

All declarations about races such as “America for Americans”, “Africa for Africans” are not racist as long as their applications are kept wholly within their respective countries and do not cause racial discontents within their respective countries.

The racial policies of German Third Reich had been denounced to be racist by their contemporary opponents Soviet Union, England and USA for creating inequality between people who had been living in Germany for many generations.

However the Soviet (Bolsheviks) governments of Lenin 1917-1924 were considered racist by Russian writer Alexandr Solzhenitsyn

“ You must understand, the leading Bolsheviks who took over Russians were not Russians. They hated Russians. They hated Christians. Driven by ethnic hatred they tortured and slaughtered millions of Russians without a shred of human remorse. It cannot be overstated. Bolshevism committed the greatest human slaughter of all time. The fact that most of the world is ignorant and uncaring about this enormous crime is proof that the global media is in the hands of the perpetrators.” ~ Alexandr Solzhenitsyn. https://rudarts.home.blog/2019/09/22/every-man-woman-and-child-should-know-this-part-of-real-history-by-the-real-enemies-of-humanity-who-still-exist-and-are-still-in-power/, https://en.wikipedia.org/wiki/The_Gulag_Archipelago

and their successor Bolsheviks governments were also considered racist by their Ukrainian victims (for creating the holodomor of 1932-1933 that killed between 3.3 and 10 millions Ukrainian)

A U.N. joint statement signed by 25 countries in 2003 declared that 7–10 million perished. Research has since narrowed the estimates to between 3.3 and 7.5 million. According to the findings of the Court of Appeal of Kiev in 2010, the demographic losses due to the famine amounted to 10 million, with 3.9 million direct famine deaths, and a further 6.1 million birth deficits. https://en.wikipedia.org/wiki/Holodomor.

USA has been denounced to be racist against its original inhabitants of USA and against its black people. England has been denounced to be racist against the inhabitants of its former colonies.

It is surprising to find that the Citizenship and Entry into Israel Law (Temporary Order) 5763 (https://en.wikipedia.org/wiki/Citizenship_and_Entry_into_Israel_Law) is somewhat similar to the much criticized 4th demand of NSDAP of the Third Reich ((https://en.wikipedia.org/wiki/National_Socialist_Program#German_Party_program)) !

Racism is thus a contentious issue that may cloud any discussion on economic system and should be left out of any economic discussion.

Therefore we only consider here economic systems without regard to the racial policies of their respective governments.

2. Capitalism.

In a capitalist regime people are allowed to own properties and all people and organizations (including government institutions) have to exchange their properties (or real money) with someone to exchange for good or service. The exchanges are voluntary. On top of that, each person also has to pay his government his yearly taxes in gold or its equivalent.

The real money they use are often gold, gold coins or jewelries which may be borrowed from private bankers (who may be and often are predatory lenders).

A government in the Capitalist system cannot issue orders to its servants and soldiers until it has gold to pay them! Governments in Capitalist system thus have to borrow gold or have to obtain guarantees backed by gold from their bankers on the redeeming value of their respective paper currencies !

Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system and competitive markets (https://en.wikipedia.org/wiki/Capitalism)

Capitalism has its implied (secondary) characteristics

Capitalists seek to maximize profits and reduce the cost of labor. This sums up capitalism at its core. It is defined by these immutable objectives. It is not about democracy.(https://www.truthdig.com/articles/the-capitalists-are-afraid/).

Undoubtedly big capitalists may and will influence government policies to give them more rent seeking capacity. This may lead to the formation of chaebol capitalism like in South Korea.

Example:

France prior to its 1789 revolution was a capitalist country. USA and UK want to be truly capitalist and they are still paying their PRIVATE central bankers interests on the money printed by the private bankers (private “Federal Reserve Banks” in USA and private “Bank of England” in England) on their behalves.

One weakness of the Capitalist system is it breeds many kinds of parasites. (, posted on 17 April 2017 , , posted on 07 May 2017 , , posted on 10 Jun 2017 , The Parasites of Western Economy, Part 4: Scammers who entrap acquaintances into being guarantors for their loans. posted on 22 July 2017 , The Parasites of Western Economy, Part 5: Company Asset Strippers and Conspirators posted on 13 August 2017 , The Parasites of Western Economy, Part 6: Robbers of pension money in Australia posted on 02 May 2018 , The Parasites of Western Economy, Part 6B: Robbers of pension money in Australia. posted on 16 July 2018 , The Parasites of Western Economy, Part 7: Providers of invented inefficient service from tax money posted on 18 May 2018 , The parasites-of-western-economy-part-8-body-corporate-robbing-owners-of-low-cost-dwellings posted on 05 June 2018 , The Parasites of Western Economy, Part 9: Over-chargers-for-unfamiliar-types-of-service posted on 04 July 2018 , The-parasites-of-western-economy-part-10: Greedy-politicians-overpaid-with-our-tax-money posted on 21 August 2018 ,). Providers for health, legal service can rely on urgency and fears (of death and of imprisonment) to demand highly inflated fees

According to the researchers at the Harvard Chan School, what sets the U.S. apart may be inflated prices across the board., https://www.cnbc.com/2018/03/22/the-real-reason-medical-care-costs-so-much-more-in-the-us.html

3. Communism.

In a communist regime everyone works to his ability for the government and the government looks after all his needs and there is no private possession.

Karl Max is the father of communism. Karl Marx said

“From each according to his ability, to each according to his needs” is a slogan popularised by Karl Marx in his 1875 Critique of the Gotha Program.(https://en.wikipedia.org/wiki/From_each_according_to_his_ability,_to_each_according_to_his_needs)

Any communist government has to ensure that all its planning are effective otherwise its people will suffer (which is often the case) from the shortcomings some of them may be deadly (the Holodomor of 1932 in Ukraine).

Examples:

USSR and its Eastern Europe “Democratic Republic” allies were communist countries.

Current Russian President Vladimir Putin has delivered a strong criticism of communism at Davos World economic forum:

The flip side of the anti-crisis measures in almost every country is the concentration of the excessive assets in the hands of the state.

During the time of the Soviet Union the role of the state in economy was made absolute, which eventually lead to the total non-competitiveness of the economy. That lesson cost us very dearly. I am sure nobody would want history to repeat itself.

We should also be aware that … we have been witnessing the washout of the entrepreneurship spirit. That includes the principle of the personal responsibility – of a businessman, an investor or a share-holder – for his or her own decisions. There are no grounds to suggest that by putting the responsibility over to the state, one can achieve better results.

Another thing – handling crisis must not turn into financial populism, into rejecting a responsible macro-economic policy. Unreasonable expansion of the budget deficit, accumulation of the national debt – are as destructive as an adventurous stock market game.

(https://www.rt.com/russia/official-word/putin-s-speech-davos-world-economic-forum/)

As a communist government has to make almost all economical decisions for its people, it does need a large machinery of cadres. There is a big temptation and a danger for this class of cadres to entrench themselves with privileges forming a new ruling class while non-cadres are kept as slaves working for them. This danger had been seen by Trotsky who believes in the need for perpetual revolutions to unseat the entrenched, decaying revolutionaries turning into system exploiters.

4. National Socialism.

Here we consider only the economic characteristics of National Socialism totally decoupled from any racial policies.

In a National Socialist regime such as in the Third Reich (Hitler’s Germany) every government employee gets certificates for having done certain amount of work for the government. The certificates are used to pay his yearly taxes to the government and to exchange for good and services supplied by others. Everyone needs some certificates to pay for his tax.

Hitler’s quotes on his fiat money (Certificates) are:

Hitler said, “For every mark issued, we required the equivalent of a mark’s worth of work done, or goods produced.” The government paid workers in Certificates. Workers spent those Certificates on other goods and services, thus creating more jobs for more people. In this way the German people climbed out of the crushing debt imposed on them by the international bankers. (https://archive.org/stream/HowHitlerDefiedTheInternationalBankers/HowHitlerDefiedTheBankers_djvu.txt)

“Gold is not necessary. I have no interest in gold. We will build a solid state, without an ounce of gold behind it. Anyone who sells above the set prices, let him be marched off to a concentration camp. That’s the bastion of money.” ~ Adolf Hitler (http://libertytree.ca/quotes/Adolf.Hitler.Quote.8423)

People can still own properties and can have voluntary exchanges. This leads to efficiency in its economy. National Socialist Governments provide social services

The NSV became established as the single Nazi Party welfare organ on 3 May 1933… Hilgenfeldt was appointed as Reich Commissioner for the Winterhilfswerk (Winter Support Programme)… the programme was massively expanded … worthy to be called the “greatest social institution in the world”… Hitler had essentially nationalized local municipalities, German federal states and private delivery structures that had provided welfare services to the public. (https://en.wikipedia.org/wiki/National_Socialist_People%27s_Welfare)

How Germany Tackled Financial and Economic Crisis Within Three Years,

“Within four years,” he pledged, “unemployment must be decisively overcome … The Marxist parties and their allies have had 14 years to show what they can do. The result is a heap of ruins. Now, people of Germany, give us four years and then pass judgment upon us!”(https://dailyarchives.org/index.php/archives/85-how-adolf-hitler-tackled-financial-and-economic-crisis-within-three-years)

Note that it is very hard to extract confusing information out of Wikipedia (which has been subjected to political manipulation).

The National Socialist German Workers’ Party (abbreviated NSDAP), commonly referred to in English as the Nazi Party…The Nazi Party emerged from the German nationalist,… Freikorps paramilitary culture, which fought against the communist uprisings in post-World War I Germany. The party was created to draw workers away from communism and into völkisch nationalism…. Nazi political strategy focused on anti-big business, anti-bourgeois,… (https://en.wikipedia.org/wiki/Nazi_Party)

… a league called the Freier Arbeiterausschuss für einen guten Frieden (Free Workers’ Committee for a good Peace) was created in Bremen, Germany. On 7 March 1918, Anton Drexler, an avid German nationalist, formed a branch of this league in Munich….Drexler emphasised the need for a synthesis of völkisch nationalism with a form of economic socialism, in order to create a popular nationalist-oriented workers’ movement that could challenge the rise of Communism and internationalist politics….On 5 January 1919, Drexler created a new political party … named the German Workers’ Party (Deutsche Arbeiterpartei, DAP)…., Drexler made clear that unlike Marxists the party supported the middle-class and that its socialist policy was meant to give social welfare to German citizens deemed part of the Aryan race. DAP advocated the belief that through profit-sharing instead of socialisation Germany should become a unified “people’s community” (Volksgemeinschaft) rather than a society divided along class and party lines… Hitler made an impression on the other party members with his oratorical skills…Drexler encouraged him to join the DAP…biggest meeting yet of 2,000 people on 24 February 1920 in the Staatliches Hofbräuhaus in München…. Hitler enunciated the twenty-five points of the German Workers’ Party manifesto that had been drawn up by Drexler, Feder and himself (https://en.wikipedia.org/wiki/Nazi_Party)

The 25-point Program of the NSDAP is given below:

The 25-point Program of the NSDAP

  1. We demand the unification of all Germans in the Greater Germany on the basis of the people’s right to self-determination.
  2. We demand equality of rights for the German people in respect to the other nations; abrogation of the peace treaties of Versailles and St. Germain.
  3. We demand land and territory (colonies) for the sustenance of our people and colonization for our surplus population.
  4. Only a member of the race can be a citizen. A member of the race can only be one who is of German blood, without consideration of creed. Consequently, no Jew can be a member of the race.
  5. Whoever has no citizenship is to be able to live in Germany only as a guest and must be under the authority of legislation for foreigners.
  6. The right to determine matters concerning administration and law belongs only to the citizen. Therefore, we demand that every public office, of any sort whatsoever, whether in the Reich, the county or municipality, be filled only by citizens. We combat the corrupting parliamentary economy, office-holding only according to party inclinations without consideration of character or abilities.
  7. We demand that the state be charged first with providing the opportunity for a livelihood and way of life for the citizens. If it is impossible to sustain the total population of the State, then the members of foreign nations (non-citizens) are to be expelled from the Reich.
  8. Any further immigration of non-citizens is to be prevented. We demand that all non-Germans, who have immigrated to Germany since 2 August 1914, be forced immediately to leave the Reich.
  9. All citizens must have equal rights and obligations.
  10. The first obligation of every citizen must be to productively work mentally or physically. The activity of individuals is not to counteract the interests of the universality, but must have its result within the framework of the whole for the benefit of all. Consequently, we demand:
  11. Abolition of unearned (work and labour) incomes. Breaking of debt (interest)-slavery.
  12. In consideration of the monstrous sacrifice in property and blood that each war demands of the people, personal enrichment through a war must be designated as a crime against the people. Therefore, we demand the total confiscation of all war profits.
  13. We demand the nationalisation of all (previous) associated industries (trusts).
  14. We demand a division of profits of all heavy industries.
  15. We demand an expansion on a large scale of old age welfare.
  16. We demand the creation of a healthy middle class and its conservation, immediate communalization of the great warehouses and their being leased at low cost to small firms, the utmost consideration of all small firms in contracts with the State, county or municipality.
  17. We demand a land reform suitable to our needs, provision of a law for the free expropriation of land for the purposes of public utility, abolition of taxes on land and prevention of all speculation in land.
  18. We demand struggle without consideration against those whose activity is injurious to the general interest. Common national criminals, usurers, profiteers and so forth are to be punished with death, without consideration of confession or race.
  19. We demand substitution of a German common law in place of the Roman Law serving a materialistic world-order.
  20. The state is to be responsible for a fundamental reconstruction of our whole national education program, to enable every capable and industrious German to obtain higher education and subsequently introduction into leading positions. The plans of instruction of all educational institutions are to conform with the experiences of practical life. The comprehension of the concept of the state must be striven for by the school [Staatsbürgerkunde] as early as the beginning of understanding. We demand the education at the expense of the state of outstanding intellectually gifted children of poor parents without consideration of position or profession.
  21. The state is to care for the elevating national health by protecting the mother and child, by outlawing child-labor, by the encouragement of physical fitness, by means of the legal establishment of a gymnastic and sport obligation, by the utmost support of all organizations concerned with the physical instruction of the young.
  22. We demand abolition of the mercenary troops and formation of a national army.
  23. We demand legal opposition to known lies and their promulgation through the press. In order to enable the provision of a German press, we demand, that:
    1. All writers and employees of the newspapers appearing in the German language be members of the race;
    2. Non-German newspapers be required to have the express permission of the state to be published. They may not be printed in the German language;
    3. Non-Germans are forbidden by law any financial interest in German publications or any influence on them and as punishment for violations the closing of such a publication as well as the immediate expulsion from the Reich of the non-German concerned. Publications which are counter to the general good are to be forbidden. We demand legal prosecution of artistic and literary forms which exert a destructive influence on our national life and the closure of organizations opposing the above made demands.
  24. We demand freedom of religion for all religious denominations within the state so long as they do not endanger its existence or oppose the moral senses of the Germanic race. The Party as such advocates the standpoint of a positive Christianity without binding itself confessionally to any one denomination. It combats the Jewish-materialistic spirit within and around us and is convinced that a lasting recovery of our nation can only succeed from within on the framework: “The good of the community before the good of the individual”.[13] (“GEMEINNUTZ GEHT VOR EIGENNUTZ” [all caps in original])[14]
  25. For the execution of all of this we demand the formation of a strong central power in the Reich. Unlimited authority of the central parliament over the whole Reich and its organizations in general. The forming of state and profession chambers for the execution of the laws made by the Reich within the various states of the confederation. The leaders of the Party promise, if necessary by sacrificing their own lives, to support by the execution of the points set forth above without consideration. (https://en.wikipedia.org/wiki/National_Socialist_Program#German_Party_program)

Note: The above listed 4th demand is of similar nature to Citizenship and Entry into Israel Law (Temporary Order) 5763 (https://en.wikipedia.org/wiki/Citizenship_and_Entry_into_Israel_Law)

5. Comparing the three competing economic systems

Capitalism creates groups of capitalists who wants to have 90% of the population working as their slaves. Capitalism does not allow any government to borrow the labor and properties from even its subject for any time. This results from capitalist governments having to borrow anything it needs from its bankers. The result is the absurd fact that a nation having to pay interest to its bankers on the total amount of national currency in circulation (those bankers claim that they are entitled to the interest as the guarantee the changeability into gold of the currency!).

Communism (or currently called socialism) requires the government not making any mistakes in running its economy. It thus needs many cadres to run the system. The cadres may and will set themselves up as a new ruling class in the economy. Non-cadres are the slaves in the system.

National socialism has the ability to avoid the shortcoming of both systems (the ruling class bankers or the Communist cadres as a new ruling class). Due to this feature it has unfortunately united odd bed fellows from its adversaries (Communist governments of the Soviet Union, and Capitalist governments of England, U.S.A) together. The war happened and National Socialism was the loser and suffered the smear.

 

Ben Bernanke Says “Hitler Was the Guy Who Got Economics Right in the 1930s”, https://historynewsnetwork.org/article/161968

 

6. The current systems in the World.

The strong economic systems in USA, UK immediately after WW2 had been National Socialism in disguise even though National Socialism has been officially denounced: All money in the World have been Fiat money, infrastructures are carried out by the nations while small activities are left to private enterprises.

Communism finally went bankrupt resulting in the dissolution of the Soviet Union in 1991 and the forming of many independent non-communist states.

Lately there is a new economic system of Red Capitalism (or Crony Capitalism): The cadres of a Communist country own a company which owns almost everything in the country and can unfairly appropriate national properties. In this way the communist country claims that they are capitalist and do not suffer any sanction from capitalist countries while they are still communist with a ruling cadre class and a slave class of impoverished non-cadre people. From the capitalist side there are countries like South Korea where large capitalists entrenched themselves by forming chaebol conglomerates, the operations of chaebol capitalism and Red capitalism are almost indistinguishable. Both systems appropriate national properties to enrich their ruling classes.

References.

[1]. https://rudarts.home.blog/2019/09/22/every-man-woman-and-child-should-know-this-part-of-real-history-by-the-real-enemies-of-humanity-who-still-exist-and-are-still-in-power/

[2]. https://en.wikipedia.org/wiki/The_Gulag_Archipelago

[3]. https://en.wikipedia.org/wiki/Holodomor.

[4]. https://en.wikipedia.org/wiki/Citizenship_and_Entry_into_Israel_Law

[5]. (https://en.wikipedia.org/wiki/National_Socialist_Program#German_Party_program)

[6]. https://en.wikipedia.org/wiki/Capitalism

[7]. https://www.truthdig.com/articles/the-capitalists-are-afraid/

[8]. https://en.wikipedia.org/wiki/From_each_according_to_his_ability,_to_each_according_to_his_needs/

[9]. https://www.rt.com/russia/official-word/putin-s-speech-davos-world-economic-forum/

[10]. https://archive.org/stream/HowHitlerDefiedTheInternationalBankers/HowHitlerDefiedTheBankers_djvu.txt

[11]. http://libertytree.ca/quotes/Adolf.Hitler.Quote.8423

[12]. https://en.wikipedia.org/wiki/National_Socialist_People%27s_Welfare

[13]. https://dailyarchives.org/index.php/archives/85-how-adolf-hitler-tackled-financial-and-economic-crisis-within-three-years

[13b]. https://historynewsnetwork.org/article/161968

Ben Bernanke Says “Hitler Was the Guy Who Got Economics Right in the 1930s”

[14]. https://en.wikipedia.org/wiki/Nazi_Party

[15]. http://rielpolitik.com/2019/11/05/u-s-s-a-maga-resurrecting-the-american-economy-by-dimitry-orlov/

[15b]. http://cluborlov.blogspot.com/2019/08/resurrecting-american-economy.html

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