Tea bagging welfare queens.

The Koch Bros. and Corporate Welfare

SOCIALIST SHIPBUILDING

Two years before founding the influential Cato Institute, Charles Koch bought a supertanker from a communist regime. According to information in the Lehman Brothers business archives, as well as records found in a Croatian shipyard, in 1975, Koch Industries purchased ship from the Socialist Republic of Yugoslavia. The ship, a standard 274,330-ton dual use tanker, was named after the Kochs' mother, Mary.

The purchase of a ship from Yugoslavia would not have been a big deal, had the Kochs not been the ones doing the buying. With the whole free world to choose from, why would a supposedly true-believer libertarian like Charles Koch buy a vessel produced in a communist country—and name it after his own dear mother, to boot? After all, didn't Austrian school economist Ludwig Von Mises, an early influence on Charles' intellectual journey to libertarianism, write in his 1933 seminal work, Socialism: An Economic and Sociological Analysis, that centrally planned economies are so inherently inefficient that "socialism must fail"?

It turned out that Yugoslavia's highly-centralized economy was the opposite of inefficient—it was on fire. In the 1960s and 1970s, the country was churning out, among other things, low-cost, high-quality ships that were sold around the world. Even the old-school libertarian magazine The Freeman couldn't help but praise the country's economic performance, writing in 1988, "Many of Yugoslavia's industries seemed highly competitive in world markets, and there were even astonishing reports that efficient Yugoslav shipbuilders wrested contracts away from the Japanese."


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