Q & A with Author William Northwall

Q : Who is a socialist?

A : A person favoring socialism; Elizabeth Warren, Bernie Sanders, Cory Booker, Kamala Harris, Alexandria Ocasio-Cortez, and others. They favor government owning, or at least controlling the means of production. Socialism has also been used to refer to expanding already available social programs and potentially raising taxes to do so.

Q : What are examples of socialism?

A : Britain post-WW II. The government owned the steel mills, the railroads, and the mines. Of course, there was the Soviet Union, and there is Cuba, North Korea, and China. Today, there is Venezuela. And don’t forget Spain and Greece.

Q : The Venezuela story is really awful, what happened there?

A : In 1950, Venezuela had the fourth highest per capita income in the world, behind only the U.S., Switzerland, and New Zealand. Around 1958, the government started interfering with the economy with price controls, higher taxes, and restrictions on property rights. Then Hugo Chavez came to power in 1999. Benefiting from about one trillion dollars in oil sales during his 14 years in power, he launched massive social spending programs to secure votes. Today, the country with the world’s largest oil reserves suffers from a severely contracting economy, runaway inflation, despotism, mass immigration, criminality, disease, hunger and starvation with conditions deteriorating daily.

Q : Why does socialism fail?

A : All economic decisions are through centralized planning. Controlling all economic decisions for the millions in a country with a one-size-fits-all plan can’t satisfy the needs and wants of every individual. It is only by letting every individual pick and choose what each wants and can afford, has it proven time and again, country after country, that a free-market system is the best system of all for everyone. Anything less ends with economic distortions, waste, and worse. Leaders buying votes with massive spending programs to stay in power leads to unsustainable debt. Then there is government collapse, and then tyranny.

Q : Why do young people turn away from capitalism?

A : Some look at business people as greedy people who frequently bend the rules. When they gift charities saying they want to give back, people think they stole that wealth to begin with. And it doesn’t help when the heads of huge corporations (after laying off many) retire and take out millions. And the millennials, even if they find work, don’t pay much in taxes, yet they hear of health care insurance premiums going through the roof, and they think it only fair that the government give it to them free.

Q : What are the differences between socialism, communism, and fascism?

A : A matter of degree—socialism replaces capitalism’s innovative entrepreneurs and competition with centralized planning, while owning the means of production. Going all the way leads to communism and a tyrant in charge. When the allure of communism fades, it gives way to fascism. Hitler before, Putin today.

Read my book, Return to Capitalism, to learn more.

William Northwall Return to Capitalism

Capitalism vs. Socialism


  • Its foundation is the human mind, endowed by the creator. It is about discovering the unknown, creativity, and surprise.
  • Capitalism offers individuals the possibility to become wealthy, so they have the means to invent and discover new things.
  • Capitalism benefits individuals—all of them, the business owner and the worker.
  • Anyone investing in his business to earn more is a capitalist, and the engine of capitalism is the entrepreneur who takes the new, rare, and expensive and makes it abundant and cheap.
  • Capitalism requires a free marketplace without barriers to entry. Only in the private marketplace can wealth be created. Government is always an expense to the economy.
  • Capitalism has lifted millions out of poverty and despair, given them prosperity and a better life, and allowed the human spirit to soar.
  • The end result of capitalism is philanthropy or giving gifts back to society.


  • A belief that everything to be known is already known, so the job is to redistribute, with the key feature being planning. This requires a large government that then destroys wealth. Debt increases until the government collapses.
  • Socialism is about maintaining the status quo; there is no innovation or creativity.
  • Socialism promises benefits to the group, but the promises are hollow.
  • Socialism favors the worst people to rise to the top, and it always leads to tyranny.
  • Socialism has caused the deaths of one-hundred million in the twentieth century.
  • Socialism always fails because all economic decisions come from centralized planning, and one-size-fits-all economic decisions never satisfy the millions of consumers. The masses always prefer picking and choosing what meets their needs and what they can afford in a free and open marketplace.


Read my book, Return to Capitalism, to learn more.

William Northwall Return to Capitalism



Listen to Author William Northwall’s Interview with Randall DeWitt Tomorrow Morning at 10

Dr. Northwall will be discussing his book “Return to Capitalism” on the Morning Show with Randall DeWitt.

Tune in live to KORN AM 1490 at 10 a.m. on Wednesday to hear Dr. Northwall discuss the five ways that socialism destroys. His argument will make it clear that only wealth can be created in the private economy, and any expense of government comes out of the private economy.

KORN News Radio
AM 1490
November 28, 2018
10 a.m.

William Northwall Return to Capitalism

Is Having a Public Fire Department a Form of Socialism?

I recently attended a book author event put on by my publisher. Hoping to sell a few books, I set up a booth and waited for guests to arrive. In came a large, older fellow who took one look at my cover, Return to Capitalism, and with a finger pointed at me, said, “We already live in a capitalistic country. There is socialism, like the fire department. That’s socialism. If we were purely capitalistic, each person would have to hire their own firemen.” After I remarked, “You’re not going to buy my book, are you?” he left.

This little exchange really illustrates the public ignorance over what socialism is and isn’t. This is why I wrote my book. Capitalism allows individuals to make choices about what they buy in an open and free market, where there are no restrictions to entry for anyone willing to sell their goods and services. Buyers buy at price-points that sellers agree to sell at. Price is the signal that determines the exchange.

The individuals living in a capitalistic system each make their choices freely as they determine what is the best value to them for something they need or want. Now, expand this community to millions living in the nation, and then one can start to understand the simplicity and marvelousness of how every individual in the country can find what they need and want at a price they can afford. What I’ve just described is a system of private enterprise, which can be understood as, and is called, the “private economy.”

In this capitalistic country, the people formed a government, and to the government they assigned various duties which would be impractical for every individual to perform themselves. Obviously, such assignments would include establishing courts and a system of laws and ways to enforce the laws. Public health and safety also get included. This part of the economy can be called the public part of the economy. And of course, protection and maintenance of the free marketplace with no restriction to entry and eliminating monopolies is necessary.

An important aside that needs emphasis is that wealth accumulation can only take part on the private side. The public side is always an expense to the private side, as it never adds wealth; it only subtracts from it. But understand, this public side is not socialism.

In this private economy operate the entrepreneurs who are the engines of the new and innovative, which advance our culture, and our wealth. Those working at business ventures, if successful, earn a profit from their endeavor, and saving a portion of their earning to be reinvested in the business is how they grow their wealth. This is definitely not a selfish act that benefits only the businessman, but rather a gift to those buying the goods and services who now can acquire the best possible at the cheapest price. But not only does the system benefit the consumer and the business owner, but maybe the biggest benefit of all goes to the worker. He or she now gets a broader choice of jobs leading to greater job satisfaction, as well as the ability to “shop” for the highest wages.

Of course, there are other magic ingredients that make the capitalistic way operate efficiently. Freedom of individuals to make all choices beneficial to them goes hand-in-hand with a capitalistic system. Property rights and the rule-of-law become very important if not necessary. There must be a stable and reliable monetary system to facilitate trading of goods and services. And government needs to be efficient, and free of waste and corruption, so that taxes, always a drag on the private economy’s wealth creation, are as low as possible.

Okay, that’s capitalism. Its polar opposite is socialism. So, what defines socialism? Basically, all economic decisions are no longer made by individuals, but rather by central planning committees or agencies. This ostensively for the public good. Not only is all industry and business owned by the state, but all economic decisions are made by the state. While this can become a siren call to the masses for how to acquire wanted things, the end-result instead of efficiency, low cost, and satisfying the most people, becomes rather a wasteful, expensive, and stale system dissatisfying the maximum number of people. Why? Committees can not create or innovate; only individuals can do that. Can you think of great artwork, or literature created by a committee? How about marvelous new inventions created by a committee? Can you imagine a centralized planning committee, in our huge country, order up products or services of anything that satisfies everyone and gives them the best value at a price that is affordable and low? Nowhere is this more true than in supplying everyone with health care. Think of how we’ve seen a steady progression of new machines and new pharmaceuticals, as well as new ways of doing things. No way can government make all health care decisions by a central planning committee that satisfies everybody. Don’t take my word for it, just look at the experience in England and Canada. The experience in so many other socialistic countries is this; cost balloons, supply then gets restricted resulting in rationing, and needed surgeries get postponed resulting in long waiting lists. The overwhelming number of new drugs, equipment, and improvements in treatment occur in the United States. Ignore this lesson at your hazard.

Trump Says Puerto Rico Set Back Our Budget – What’s Your Take?

Trump has come under fire for saying that PR has set our country’s budget back, but we’ve been in trouble for decades. Today we are mired in a mess that our politicians of both parties have created; unbelievable public debt, excessive taxation stifling our economy, entitlements well on their way to insolvency, poor inner-city schools and unaffordable higher education, and the list goes on and on. The solution to most of our problems is a return to capitalistic approaches to these numerous problems. The moral sanctity of capitalism remains intact. It has lifted up millions from poverty and despair. Its nemesis, socialism, with its siren call for unlimited gifts for all, has given rise too frequently to tyranny and the deaths of millions at its worst, and poverty and economic stagnation at its best.

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