Book report: Eat the Rich, by P. J. O’Rourke

I can’t remember who recommended this book. A satirical (and hilarious) tour of the world to experience first-hand the consequences of the implementation of various theories of economics and governance: free markets, socialism, and communism. Along the way: Wall Street, Albania, Sweden, Cuba, Russia, Tanzania, Hong Kong, and Shanghai. Plus a side stop in a college Econ course to show what is wrong with basic economic textbooks (and introductory classes). [Fundamentally, they ignore the basic realities of life, in favor of theoretical equations that are irrelevant.] The amazing thing is that the author is a self-admitted former hippie and writer for Rolling Stone magazine.

The bottom line is that business and wealth creation are based on a simple principle: Voluntary exchanges, in which each party to the trade gives up something he values less in order to receive something he values more, increase prosperity. Self-interest is thereby harnessed for the good of society as a whole. (Credit to Adam Smith, The Wealth of Nations, 1776) What flows from this are a few statements that liberals and socialists reject:

•      Governments are intrinsically inefficient

•      Economies can’t be designed

•      The rule of law and respect for others’ property is an essential function for prosperity

•      Even though the poor are poorer than the wealthy, they do not improve their state in life by robbing them (criminally or through government-run redistribution).

•      Free markets tell the truth about economics

There is a short digression on the tenth commandment (Exodus 20:17). The author interprets it to mean that God says “hands off other peoples’ stuff”. He does not address the deeper spiritual question of hearts that are set on earthly treasure rather than heavenly (Matthew 6:19-21) because that is not his purpose. (I think a better understanding of the tenth commandment is that God says “hearts off other peoples’ stuff”.)

Fundamentally, the problem with socialism and communism is practical. They have been repeatedly demonstrated to be a complete failure, as recognized by the people living under them, in various places such as Russia, China, Cuba, and Tanzania. The author’s world tour provides innumerable practical examples at the level of daily life for the ordinary person. For poor people to have a better life (food, shelter, clothing, etc.), on a level above prehistoric hunter-gatherers, society as a whole needs to increase wealth. This can only happen through a free market, and will never happen under socialism or communism. And, as a bonus, in an effort to make their system work, communist & socialist leaders impose dictatorial control in a frantic (and fruitless) effort to force people to do what doesn't make sense.

My observation: This is largely why most of Latin America is attempting to emigrate to the United States - not for government handouts, but for the opportunity to participate in an economy that works.