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Washington Post: North Korea proves planned economies fail.


If the control freaks in Washington get their way, American will look a lot more like North Korea in the future.

From Washington Post…

One easy way to evaluate the legacies of North Korean dictators Kim Il Sung and Kim Jong Il is to compare their country’s economic performance with South Korea’s over the past four decades. The difference is stunning.

Back in 1970, the two countries were roughly comparable — in fact, AEI’s Nicholas Eberstadt argues that, at the time of Mao Zedong’s death, North Korea’s workers were more productive and better educated than China’s. But, as you can see from the graph below, North and South Korea’s economies massively diverged around 1976, as North Korea’s rigid central-planning economy failed to keep up:

During the early 1970s, North Korea’s economy stagnated, with GDP per capita flatlining until Kim Il Sung’s death. Then, in 1994, after Kim Jong Il took over, the economy started shrinking noticeably, per capita incomes fell, and the country became dependent on emergency U.N. food aid to stave off famines that had already killed as many as 3 million people. North Korea became, as Eberstadt puts it, “the world’s first and only industrialized economy to lose the capacity to feed itself.”