This day in history: A Communist government was installed in Lithuania on this day in 1940. This form of government was rejected in 1990. Why? Because Communism (Socialism) always fails.
"While there has been extensive study of the reasons for communism's failure, researchers have pinpointed a couple of common factors that contributed to its demise.
The first is an absence of incentives among citizens to produce for profit. The profit incentive leads to competition and innovation in society. But an ideal citizen in a communist society was selflessly devoted to societal causes and rarely stopped to think about their own welfare.
The second reason for communism's failure was the system's inherent inefficiencies, such as centralized planning. This form of planning requires aggregation and synthesis of enormous amounts of data at a granular level. Because all projects were planned centrally, this form of planning was also complex. In several instances, growth data was fudged or error-prone in order to make facts fit into planned statistics and create an illusion of progress.
The concentration of power in the hands of a select few also bred inefficiency and, paradoxically enough, provided them with incentives to game the system for their benefit and retain their hold on power. Corruption and laziness became endemic features of this system and surveillance, such as characterized East German and Soviet societies, was common. It also disincentivized industrious and hard-working people. In the end, the economy suffered." Source
"Thirty years later, Lithuania is very different: more free, more prosperous, and more secure than it has ever been in the past 300 years. It shed the hammer and sickle and the planned economy, melted statues of Lenin into cans for Coca-Cola, and things could not be better." Source
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