One Giant Monopoly

Socialists warn about the dangers of monopolies in capitalism, but ironically enough, socialism establishes one giant monopolist (the government) in control of all industries.

The difference is that in capitalism entrepreneurs and other businessmen welcome huge volumes of business with open arms, whereas government-regulated utilities scold their customers for using too much resources. There is a simple explanation for this: the government agencies in socialism cannot be fired. People must use their services and products, they cannot go anywhere else. The only way a manager of a branch in socialism will get better employees is if his superiors do so – and why would they focus on his employees when they have many other things to do?

The worst an entrepreneur can do is fire you (if you are his employee) or refuse to sell you anything (if you are a customer). In contrast, if the government makes all hiring decisions and controls all the grocery stores, it can intimidate critics easily by shipping them off to work in Siberia or starving them.

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