We Are Closer To Communism Than One Might Think

The following is an editorial from Global Gold’s quarterly outlook report. Receive Global Gold’s newsletter updates via the subscription form on their website.

Karl Marx and Friedrich Engels drew up a ten-point plan towards communism. These ten points, listed in their Communist Manifesto of 1848, seek to make “despotic inroads on the rights of property” and as “unavoidable as a means of entirely revolutionizing the mode of production.” In other words, the implementation of this ten-point plan is the basis for creating a communist world and the creation of a classless society.

So why should we be concerned with communism or Marx? Aren’t we all living in a free and capitalistic society? No. On the contrary! Not only do we see elements of this plan implemented, but we see them carried out by those very countries claiming to be far from communism. European countries and the United States, all advanced self proclaimed capitalist economies, are in fact significantly close to Marx’s dream of socialism as this article will show. Though they might call it ‘welfare state’ the resemblance to socialism is cunning.

Marx believed communism could only be reached through the ‘dictatorship of the proletariat’ where the proletariat (or the working class) leads its revolution. In the Manifesto Marx and Engels stated “the proletariat will use its political supremacy to wrest, by degrees, all capital from the bourgeoisie, to centralize all instruments of production in the hands of the State, i.e., of the proletariat organized as the ruling class; and to increase the total of productive forces as rapidly as possible.”

Communism, to Marx, is a world with no classes, no state, and no private ownership. In his view socialism cannot work until capitalism functions properly! This implies, Marx sought to ‘amend’ capitalism, as a means to eventually lead to a communist society – the implementation of these means does not necessarily imply the creation of one. To be direct: There is no such thing as a communist/socialist country! On the other hand, what we see are numerous advanced Western countries that have sought to introduce most elements of the ten-point plan who are ‘on their way’ to achieving communism, according to Marx’s formula. Below we show you the ten points of this formula and illustrate how these are reflected in today’s modern economies.

The 10 commandments of communism

  1. Abolition of property in land and application of all rents of land to public purposes.
  2. A heavy progressive or graduated income tax.
  3. Abolition of all rights of inheritance.
  4. Confiscation of the property of all emigrants and rebels.
  5. Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly.
  6. Centralization of the means of communication and transport in the hands of the State.
  7. Extension of factories and instruments of production owned by the State; the bringing into cultivation of waste-lands, and the improvement of the soil generally in accordance with a common plan.
  8. Equal liability of all to work.
  9. Combination of agriculture with manufacturing industries; gradual abolition of all the distinction between town and country by a more equable distribution of the populace over the country.
  10. Free education for all children in public schools.

Where do we stand today?

For the purpose of this article, we will highlight the centralization of credit in the hands of the state, in addition to ‘progressive taxation’ as part of the notion of the welfare state.

“An over-expansion of credit can enable the capitalist system to sell temporarily more goods than the sum of real incomes created in current production, plus past savings, could buy,” said Ernest Mandel, the Marxist scholar, quoting Marx, “but in the long run, debts must be paid”. In turn, the introduction of the central banking system has led to the centralization of credit in the hands of the state. In our view, the central banking systems in connection with the fractional reserve banking system are the main causes for economic crisis. The most recent example would be the subprime mortgage crisis in 2008, which is considered one of the worst recessions experienced by the US. We can draw the root causes of the crisis back to 2001, when the FED cut rates extensively to increase money supply and jump start the economy which had suffered from a recession following the tech bubble in the 1990s. This in turn extended to real estate market, as low interest rates were promoted the American dream of home ownership. This was in line with Bill Clinton’s National Homeownership Strategy, to achieve his target to increase homeownership to 67.5% by 2000.  This strategy ultimately promoted looser credit facilities from both the government-sponsored Fannie Mae and Freddie Mac, as well as private sector’s lending institutions, to encourage lending of low-and middle income families, or higher-risk borrowers. This low-interest rate environment created an illusion that soon turned into a bubble. Needless to say, all this was steered from the centralization of the credit system.

Back to Marx, and specifically his call for progressive taxes. Western Europe’s welfare states are upheld by their progressive taxation system. Germany for example, has a tax range between 14%-45%, the Netherlands 22%-52%, the UK 20%-25%, the United States has a maximum of 35%. These rates do not even consider other taxes such as VAT, wealth tax, real estate and many more. When one adds these to the equation it becomes clear that the total tax burden in many countries is well over 50%. Progressive taxation is a penalization of wealth, the socialist “rationale” is that the wealthy make too much but are not taxed enough. In our view the present income tax penalizes productivity. Simply put, the more we work and thus the more we earn (in theory) the more we get cut from our income. On a larger scale, we can say that progressive income tax skims off funds that are most likely to be directed into new investment and gives it to the government, which is known for its chronic mismanagement of funds.

Throughout this article, we emphasized the reality that we in fact live the Marxian dream or rather nightmare, when one considers the negative effects the (partial) implementation of the plan has on our society. Although most people would argue against the introduction of a communist society, we currently seem to be heading in that direction. As freedom loving individuals it is of upmost importance to stay vigilant in relation to these development. A wolf in plain sight is a threat, but can be dealt with a wolf in sheep’s clothing on the other hand is much more dangerous.

So why should we be concerned with communism or Marx? Aren’t we all living in a free and capitalistic society? No. On the contrary! Not only do we see elements of this plan implemented, but we see them carried out by those very countries claiming to be far from communism. European countries and the United States, all advanced self proclaimed capitalist economies, are in fact significantly close to Marx’s dream of socialism as this article will show. Though they might call it ‘welfare state’ the resemblance to socialism is cunning.

Marx believed communism could only be reached through the ‘dictatorship of the proletariat’ where the proletariat (or the working class) leads its revolution. In the Manifesto Marx and Engels stated “the proletariat will use its political supremacy to wrest, by degrees, all capital from the bourgeoisie, to centralize all instruments of production in the hands of the State, i.e., of the proletariat organized as the ruling class; and to increase the total of productive forces as rapidly as possible”



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  • robert h siddell, jr

    Judging by typically ignorant or hostile comments from way to many of our Blacks and youth, we are closer to an attempted communist take-over than you think.

  • RedScourge

    Please replace “rational” with “rationale” in this article.

  • http://www.goldsilverworlds.com/ Gold Silver Worlds

    That’s a fair point, RedScourge. We corrected the word and notified the authors. Thanks for noticing!

  • Bud Wood

    I’m not so sure that “we” are as close to communism as it may seem. Yes, it woild seem so, but democratic socialism may just implode pretty soon. Of course, that will result in various routes for the many USA states, and there’s probably a lot more free enterprise thinking in state governments simply because the socialists have been syphoned “up” into the federal system. And it looks like the federal system is running out of OPM.