Socialism (Update)

Does this show a failure of socialism or a failure to implement socialism? Notably, in the oil production plot there is a significant dip prior to socialism. Sure, total economic collapse occurred during socialism, but was socialism really the cause or was it a poorly managed government?

In Socialism, the governement both owns and controls the means of production. This is the economic definition of socialism. So to answer your question it is BOTH because they are one and the same.

Everyone intuitively understands why monopolies are bad. Because the persons who whom the monopoly is serving have no other choice. Or the people lack freedom of choice. And when that situation occurs the monopoly becomes abusive because it knows the customers have no choice and must use or buy their product. in socialism the governent is an economic monopoly.

Regarding the ups and downs of oil production. There will be small dips and bumps because when prices go up and down production will be adjusted accordingly. So it is the macro trend that is more important to look at. Yes there was an oil crash recently due to covid. But the chart shows a four year straight decline regardless of the recent price slump.

Socialism fails because when you have a monopoly that sets prices, prices are no longer reliable signals that correct the market to shift resources.

I'm not saying that all socialism, fascism, or capitolism is bad or good. There are markets where one of these three might be the natural choice. I'm not going to go into deep economic theory on when one is appropriate or not.

But in general free markets (capitolism) is the purest form of democracy. The consumer has the freedom to choose whom he will buy a product or service from. And the businesses compete for the consumers favor. Prices are allowed to freely float which signals to the market in a fairly efficient manner to balance supply with demand. Prices only send the wrong signals when the money supply is shocked or perverted. But even then prices will stabilize and resume directing the markets. Free markets are the most efficient way to allocate resources (materials, labor, etc...)

Socialism is a monopoly and prices are set by the producer. When they are set too high you end up with over production and waisted resources. When prices are set too low you end up having supply shortages. Then you add in moral hazards of all types and the system over time becomes more and more inefficient. This has repeated itself over and over. I would argue that it isn't a failure to implement socialism correctly. Instead it is what socialism is. If people were all knowing, morally unselfish, morally upright people it could work. But that isn't the case.

Fascism is a hybrid form of socialism and while perhaps a bit more efficient than socialism fails for the same reasons.

Capitolism isn't perfect either. But it is failrly easy to manage as long as the governement enforces the laws that created markets in the first place and protect the market place from monopolies.