Wealth can only be brought into existence by an individual perceiving something as scarce that may satisfy unknown demands.  The creation of wealth requires the individual.  Statism must lead to impoverishment.  There is no way around that.  To improve your status under capitalism, you just satisfy the demands of your fellow man.  To improve your status under statism, you must use political talents, such as demagoguery.

The means of production is highly, or totally, controlled by the state.  This will make calculation more and more difficult, even impossible.  There are no prices, or prices have been distorted to bid away resources.  So, even if a clever individual knows how to build everything, that clever individual will be unable to determine what resources go where.  No innovation happens since private property doesn’t exist or has a hampered existence.

Property is in the hands of some group somewhere.  Property is now owned collectively.  No individual can benefit from satisfying the demands of your fellow man.  The incentive to improve the quality has been reduced.  Additionally, there is no incentive to conserve the input factor.  Therefore, statism must lead to an overuse of resources.  Statism will lead to widespread slothfulness and a permanent depression.

The decisions about what to do with the factors of production are political decisions.  So, rather than serving the public, you are serving the will of the leader.  When you’re attempting to serve your fellow man, you’re trying to convince him to trade money for a good or service.  A political decision must rest on compelling.  Statism must rest on compelling, or violence.  Capitalism rests on convincing your fellow man.  Would you rather be convinced or compelled?

Statism has never worked and will never work.  Trying it has cost hundreds of millions of lives.  This is a very sad illustration but is receiving a renaissance.  It’s like people have forgot the 20^th century all together.  Either forgot or never learned about it.  Of course, if they did learn about it, it was apologized for.  Statism will always be just as Stalin said, “One death is a tragedy; one million is a statistic.”

Reference

Hans-Hermann Hoppe; Democracy—The God That Failed