One can understand why socialism has garnered so much appeal. Thor Halvorssen pointed out in this video that many presentations of socialism are inadequate. They are guilty of understating the data. As a consequence of that, many people are overcome by the ideals of socialism. After all, there are certainly problems in the United States. Some people do not have enough money. Students are buried in debt from taking out all of these student loans. Socialism seems to provide a solution. Halvorssen argues that socialism is not a solution. It is a quick-fix that will inevitably have catastrophic results for the United States economy.
People Will Be Unmotivated
An individual can climb out of deep poverty into immense wealth if he applies himself. This possibility simply does not exist in socialism. Further, there is really no motivation for anybody to pursue a great career, because the rich are so heavily taxed that income almost equal. In some countries, educated individuals prefer to pursue work in entry level positions because they will make more money. Accordingly, the economy suffers because talented individuals do not contribute everything that they could have.
Worker Unions Have Too Much Power
This criticism might sound appalling at first, but take a moment to think about it. If workers can dictate what they will be paid, then they are probably going to ask for something that is far beyond what their employer can afford. This means that the employer will have to go out of business. Therefore, a socialistic model could result in far fewer job opportunities because employers simply cannot afford to pay the wages that are demanded.
Thor Halvorssen may be a stern critic of socialism, but he is not hostile toward individuals. In fact, he readily acknowledged that some nations have had success with socialism. But it is far too easy for socialism to force a nation like the United States to collapse into financial ruin.
More information for Thor Halvorssen: