How does systemaccounting define socialism?


Socialism is exercising government authority to define an equilibrium price that is not equal to what an informed free market may choose. Replacing the price discovery mechanism with government authority prevents a system from identifying its most effective producers (e.g. teachers), thereby increasing the risk and spreading the cost of an unsustainable economic event.

Socialism may be measured.


M = equilibrium price of a good or service measured in an efficient free market
G = equilibrium price of the same good or service defined by government

Socialism = M - G

1. When G > M, we say, "Socialism is present."

2. When G < M, we say, "Socialism is present here, too."

3. When G = M, we say, "Government is benign."

Excepting the need to overcome inordinate costs, goods and services such as water, fire prevention, medicine, education and security are often paid for using the blunt instrument of socialism because the infrastructure enabling the public to anticipate the exact need for resources to fund them competitively is not yet present. Taxes are the largest source of socialism in an economy. When carried to excess, using government authority to define equilibrium prices causes a gross misallocation of resources and promotes disorder and instability. Since the purpose of exercising government authority is to maintain order and stability, a gentle and elegant approach to adjusting for economic unknowns in pricing is therefore indispensable. Applied correctly (G = M), government authority's place becomes that of benevolent steward over an economy rather than ignorant and whimsical overlord of it. As an economy matures to the point of being able to identify and invite its top stewards into government, the risk of socialism declines insofar as asking the most systemically-efficient price-setters to operate as public trustees is a formality that produces little change in the economic outcome: Property is governed by those who stably grow it for everyone.

Now for the disclaimer: Systemaccounting does not recognize socialism to be a real word since the technical concept it refers to has been superseded by some other ambiguous definition that aids the recruitment of people into mobs. After presenting only the technical definition, the word "socialism" is now deprecated by systemaccounting as it has no use among people who are capable of responsibly judging matters for themselves, and willing to be held personally accountable for their own opinions.

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