Glenn Beck’s pencil test: The simple object that exposes why socialism always fails

If you’re not familiar with the power of a simple yellow pencil and what it can teach about economics, freedom, and the limit of government power — then Blaze Media co-founder Glenn Beck is here to help.

“I’m holding a pencil. Yellow, six sides, little pink eraser at the top. And we’ve used these our whole life,” Glenn begins.

“The cedar comes off a mountain in the Pacific Northwest. It’s cut by a steel saw. That steel came from an iron ore in Minnesota, smelted with coal hauled by the rails by people who are long dead,” he says.

“The graphite comes out of the ground in Sri Lanka, and it’s mixed with clay from Mississippi. The little band up at the top, that used to be copper from Chile, zinc from Canada. The yellow paint, the rubber that never once met a rubber tree in its life,” he continues.

“All of these things, thousands of people on five continents that don’t speak the same language, who never met, who’d probably cross the street to avoid each other … these people couldn’t agree on lunch, and they built the pencil,” he adds.

The point, Glenn says, is that “no one was in charge.”

“There’s no department of pencils in a marble building deciding how much graphite Sri Lanka needs to mine this year. Nobody on the planet wakes up at 3:00 in the morning in a cold sweat thinking, ‘Dear God, does Ohio have enough erasers?’ Nobody does,” he says.

“So here’s how you explain capitalism and socialism. If no one is smart enough to plan a pencil, nobody … it just happens. Who exactly do we figure is smart enough to plan an entire economy?” he asks, before citing the economist Friedrich Hayek.

Glenn notes that Hayek “spent his life on this one idea,” which was that “the knowledge that it takes to run an economy doesn’t live in any one place.”

“It’s scattered across millions and billions of heads. It’s the welder who can feel a batch of steel running brittle. It’s the grocer who notices that young families are starting to move in, and they got all these kids, so I better stock up on more diapers. It’s the farmer that can read the sky,” he says.

“None of them could write down what they know. They couldn’t fill it out in a form. They’d lose the form. But they act on it every single day,” he adds.

However, when you introduce a central planner, Glenn explains, even the ones with the most sincere hearts will fail.

“And that’s when the bread line happens. Bread lines are real, and it happens the same way every single time,” he says.

“It’s like a band that only knows one song. That’s what socialism is,” he adds.

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