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What's so good about Market Forces, anyway?

 
  

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jbsay
14:49 / 08.12.04
Selling a new year’s model every year does not constitute GROWTH (unless you are raising prices or the population of rich people expands. If you are raising prices, then the standard of living of the rich people is going down and they are becoming poorer). Bottom line: your case allows a business owner to sell the same number every year, presumeably maintaining his standard of living but not increasing it unless he is somehow cutting costs (let me guess...he's hiring children as slaves).

But, let’s be realistic. Do you personally go out and buy a new replacement product every year for everything you own? Would you if you could afford it? Do you have 40 TV’s in your house by the time you are age 60? Do you think rich people do this? If not, what do they do with the old TV’s? Do they throw them away?

Again, under your scenario, the magical “market force” that pin likes to talk about could help. It would be in some entrepreneur’s best interest to take the old TV out of the trash (or pay the rich people a large discount to the current year's price) and re-sell it a huge discount (increasing affordability) to the masses while maintaining a profit margin. Everybody (entrepreuner, rich people, and masses) are better off under this scenario. The entrepreneur keeps his profit. The rich people are reimbursed suitably for last year’s model. The masses get improved affordability via discounted TV’s that the rich people don't want/need.
 
 
_pin
14:56 / 08.12.04
Some people want energy-efficient clean cars, but not enough people do, so they are expensieve. All the people who want to run nice cars but are poor can't. You have priced their moral actions out of their reach.

People can refuse to employ people who are gay because their employment opportunities are their own property to be given away as they see fit. All business owners feel this way. And most of their customers feel this way. All the gay people will have to stop being gay or will starve if enough people don't want to employ them.

Do enviromentalists and gays deserve to suffer because of the will of the majority?

And are you really thinking of every exchange taking place in a vacuum of two people, it seems that that is what you are implying, if there is no such thing "market price" that other people can judge their current transaction by. You surely have to deny an existence of this phenomena in order to maintain that other people's transactions do not have an effect on similar transactions carried out by different people.

I still think that not everyone shares your view of private property, and that it is too subjective for you to delcare that your view is better then theirs so you get to tell them how to view themselves. It is the result of your upbrining within a commnuity. This is where the points about community come in. You're making value calls that you can't make against other people by insisting all must live in your system (you seem to have stopped this a bit now, though).
 
 
_pin
14:59 / 08.12.04
You're misunderstanding my "market force." I'm simply talking about the outcome of two people's transactions on other, similar transactions. That's all I mean by it, because I don't think the market is real, and have been trying to point out to you all along that you are arguing concepts not facts.

Also, I thought you said there was no growth because gold just gets moved around? Why are you now argueing for growth?
 
 
jbsay
16:43 / 08.12.04
Some people want energy-efficient clean cars, but not enough people do, so they are expensieve. All the people who want to run nice cars but are poor can't. You have priced their moral actions out of their reach.

Pin. They are not expensive due to insufficient demand. Nearly everbody, given a choice (all else equal), would want an energy-efficient car. You have neatly summed up the problem of economics: how do you allocate scarce resources. So, how do you make such a car? Where would you make it? Who would you hire? How much would it cost? What technologies would it use? The reason it is expensive is the economics of making such a car using scarce resources, and that technology isn’t there yet. This is no different than when cars were originally being made back in the day. What if it takes ALL of your capital stock (plant, labor, equipment, employees etc) to build one car? Then you have no houses, no food, no clothing, etc.


People can refuse to employ people who are gay because their employment opportunities are their own property to be given away as they see fit. All business owners feel this way. And most of their customers feel this way. All the gay people will have to stop being gay or will starve if enough people don't want to employ them.

Yes, they sure can discriminate (but ALL business owners are homophobic and won’t hire gays? Come on. If a gay guy is better at his job than a straight guy, I would gladly hire him. I don’t care what he does in his personal life unless it reflects on his job performance).

Homophobia is a bad thing, no doubt. But it is irrelevant economically. Gay people can boycott those businesses. Or they can start their OWN business (e.g., selling gay newspapers, or gay literature, or gay porn, or little gay rainbow triangle stickers, or whatever it is that the gay “community” demands). And they can hire both straights AND gays (increasing competition among workers and lowering the cost of labor to the company) and sell to gays AND straights (increasing their addressable market), AND boycott the other business and thus steal market share at reduced labor cost (improved profitability) from the straight-only business. Eventually the straight-only discrimantory business will be forced to make changes to its business plan to suit the demands of consumers if it wants to stay competitive (e.g. start selling to gays, or start hiring gays, or both).

Do enviromentalists and gays deserve to suffer because of the will of the majority?

As above, gays aren’t suffering.

I’m an avid outdoorsman and love the environment. Public ownership of property (the way “environmentalists” propose that we should solve the problem) actually makes the environmental problem worse (see also, “tragedy of the commons” business example. I’d suggest you explore this problem in detail). Would you care to discuss the environmental disaster that arose from Stalin’s socialistic (public) use of the Aral sea? All the birds and fish and people that died from the toxic salts? Was that “green” use of the land?

And are you really thinking of every exchange taking place in a vacuum of two people, it seems that that is what you are implying, if there is no such thing "market price" that other people can judge their current transaction by. You surely have to deny an existence of this phenomena in order to maintain that other people's transactions do not have an effect on similar transactions carried out by different people.

This is EXACTLY right. Now we’re getting somewhere. Every exchange is by definition taking place between two people. The price system arises out of a multitude of these binary transactions (exchanges) between 2 consenting individuals of their own free will. It doesn’t occur magically, it is not a fundamental “force” like gravity that pre-exists the transactions. Does the price system portray information? Absolutely. That’s the whole point. If you (or “society” or “the state” or whatever) are directing the individuals how to exchange (telling them what’s “best for them” or “best for society”)-- which is the whole crux of socialistic central planning --instead of letting them do it themselves of their own free will, then you distort the price system. The more you do this, the more distorted the price system becomes until you have destroyed it altogether, and instead have substituted a planned (socialist) economy. Which will lower the standard of living for gays and straights alike, and the rich and poor as well, and wreak bloody havoc on the enviroment. Because you can’t make economic decisions. Should you put the entire resources of society into making one energy-efficient car, and none into producing food? Then your workers starve to death. You have no way of knowing how to allocate scarce resources, without the price system.

I still think that not everyone shares your view of private property, and that it is too subjective for you to delcare that your view is better then theirs so you get to tell them how to view themselves. It is the result of your upbrining within a commnuity. This is where the points about community come in. You're making value calls that you can't make against other people by insisting all must live in your system (you seem to have stopped this a bit now, though).

You don’t have to share my opinion. This is a conversation, I’m telling you why my way is better.

Ah, the the old Marxist “thinking along class lines” trick. Nice try comrade. Are you denying that there is such a thing as objective rationality? Does it matter whether Newton was rich or poor when he came up with F=ma, or what community he grew up in?

I’m not making value calls, unless you call me leaving it up to other people to set their own values and expecting them to leave mine up to me (assuming we don’t violate each other’s property rights) a “value call”. Your system doesn’t do this. It makes value calls from the top down. You’re ok with it as long as it is enforcing morals that you agree with (e.g. gay rights) but hypocritically protest when it doesn’t (free market economics). Economics and liberty go hand in hand.

As for the growth comment, I was responding to MJ not you. But…gold getting moved around is not growth (all else equal, limited supply, blah blah blah), it is wealth getting redistributed among different individuals (nothing wrong with this if it is done freely and by their consent, that’s what barter is all about). Gold is just a highly marketable commodity. However, if the gold can BUY you more stuff (purchasing power increases) because the market has made goods and services more affordable relative to an ounce of gold, then your standard of living has risen. This is "growth" or "progress".
 
 
jbsay
17:04 / 08.12.04
Aral sea:

http://mondediplo.com/2000/07/19envidisaster
http://www.sheilaomalley.com/archives/001930.html

you can probably find more on your own
 
 
Lurid Archive
18:39 / 08.12.04
Pin. They are not expensive due to insufficient demand.

When it suits you, you claim that the evil hand of socialism is distorting the system. And when it doesn't, the magic, magic, hand of the market is making itself felt. The research and infrastructure which affect costs do not spontaneously appear. If you feel that they currently distort everything then you have no basis on which to make arguments about demand.

How did the Great Depression happen, by the way? An increased desire for leisure? No, it must have been the fault of SOCIALISM. Oh wait, statistics can't be used in economics, therefore we can just ignore it. But still blame it on you-know-who.

What if it takes ALL of your capital stock (plant, labor, equipment, employees etc) to build one car? Then you have no houses, no food, no clothing, etc.

Right. Economic choices come down to moronic dichotomies. Thats what made the Soviet Union collapse. They tried to build one really, really big car.

Homophobia is a bad thing, no doubt. But it is irrelevant economically.

You think so, but I don't see why anyone should concede that. You cannot divorce the social fabric of a nation from the functioning of its economy.

Gay people can boycott those businesses. Or they can start their OWN business (e.g., selling gay newspapers, or gay literature, or gay porn, or little gay rainbow triangle stickers, or whatever it is that the gay “community” demands)....Eventually the straight-only discrimantory business will be forced to make changes to its business plan to suit the demands of consumers if it wants to stay competitive (e.g. start selling to gays, or start hiring gays, or both).

Right, because discrimination could never, ever, marginalise a section of the population economically. Slavery, for instance, could never have happened under capitalism, because the slaves would have started selling things. Cute little ball and chain pendants maybe, or whatever it is that the slave "community" wanted.

As above, gays aren’t suffering.

Except when they get lynched, only that isn't *really* suffering. If they really minded, they would boycott homophobes who would then starve and be too weak to lift blunt instruments. Unless SOCIALISM intervened, naturally.
 
 
jbsay
18:55 / 08.12.04
When it suits you, you claim that the evil hand of socialism is distorting the system. And when it doesn't, the magic, magic, hand of the market is making itself felt. The research and infrastructure which affect costs do not spontaneously appear. If you feel that they currently distort everything then you have no basis on which to make arguments about demand.

No, I’m very consistent. Your point here is unclear. Please rephrase and get back to me

How did the Great Depression happen, by the way? An increased desire for leisure? No, it must have been the fault of SOCIALISM. Oh wait, statistics can't be used in economics, therefore we can just ignore it. But still blame it on you-know-who.

Actually, not to be a wiseass here, but yes. It was the fault of socialism. Pretty simple. The federal reserve (socialist central bank…centralization of credit in the hands of the State, by means of a national bank with state capital and an exclusive monopoly, as per plank 5 of the Communist Manifesto) was instituted in 1913. It then started printing money out of thin air and fucking with interest rates. This caused a boom (roaring 20’s), and a ton of malinvestment (similar to Greenspan in the 90’s and 2002-present). The washing out of this malinvestment (gross distortion of the economy due to the central bank) was the great depression. The government attempts to keep the bust from happening only served to prolong the misery and deferred the rest of it to our generation (how’s social security doing? We’re about to pay the price). This was predicted ahead of time by Mises and the Austrians. I would suggest you read Rothbard’s “America’s Great Depression”

What if it takes ALL of your capital stock (plant, labor, equipment, employees etc) to build one car? Then you have no houses, no food, no clothing, etc.

Right. Economic choices come down to moronic dichotomies. Thats what made the Soviet Union collapse. They tried to build one really, really big car.

No. The point here is that you have no idea how much it costs to build a product, or what anything else costs for that matter, or how much you can produce because there are no prices. You can pick whatever example you want, the point remains


You think so, but I don't see why anyone should concede that. You cannot divorce the social fabric of a nation from the functioning of its economy.

Yes, I think so. You don’t have to concede it. You just can’t use force to make me change my mind (or, if I were gay, to stop me from being homosexual).


Right, because discrimination could never, ever, marginalise a section of the population economically. Slavery, for instance, could never have happened under capitalism, because the slaves would have started selling things. Cute little ball and chain pendants maybe, or whatever it is that the slave "community" wanted.

Slavery is a violation of property rights. A person belongs to himself.

Except when they get lynched, only that isn't *really* suffering. If they really minded, they would boycott homophobes who would then starve and be too weak to lift blunt instruments. Unless SOCIALISM intervened, naturally.

Again, this is a property rights issue. If my body is my property, you cannot physically assault me for being homosexual (or anything else, for that matter) without violating my property rights. Then the legal system (or whatever structure you want), will punish you accordingly. I am also legally allowed to use the necessary force to defend myself from your violation of my property rights.
 
 
jbsay
19:07 / 08.12.04
Lurid,

You argument against capitalism is that they have monopolistic control over the food supply, and that 100% of the capitalists are homophobic, and that 100% of the capitalists don't sell food to the homophobes to starve them off so they can't wield blunt instruments to rise up against the evil capitalists in a proletariat rebellion? And that there are no "straight" people who would think to buy food from "staight capitalists" and then re-sell it to the starving gays for a profit?

How's that for a moronic dichotomy.
 
 
_pin
08:54 / 09.12.04
They can't opt out of the system because they couldn't produce goods on a large scale because there is a small market because few people are gay because they get beaten up all the time and so the goods the produce are expensive but all the gay people are poor so they can't buy them.

They can't even leave because you took the fucking roads away and made them pay for it.

On the other hand, you appear to be saying people should use their property in a way that makes their business work better. That seems to be denying people the ability to use their property how they see fit because of profit demands.

And your view of people making exchanges without any reference to how much a product would cost them somewhere else is just stupid. Perfect information is impossible, but no information?

If everyone wnats energy efficient cars why do they drop their kids off to school in SUVs?

And coming back to Wal-Mart; people hate them because they destroyed local town retail alternatives and now people who want to oppose their employment practises can't because there's no where else to go. People started shopping there without being aware of the employment practises. This is a pretty good example of how people's choices within a market nmay not be the best example of their favoured choice.

And surely you can only do whatever you want with your property so long as everyone else wants to buy it at a price that allows you to keep using it that way. So free...

There is an objective reality, but as noted so many times in this thread it iis subjectively experienced by people with different priorities. These filters are largely created by socalisation and as such ther's no real way to judge between them. So you can't say yours is better.
 
 
Atyeo
08:55 / 09.12.04
Who's going to uphold this "violation of property rights"?

A police force I assume.

Therefore, you need a government.

Do you really want to live in a society where the people with the most guns get to decide everything?

I'm sure you'd say we already do, and you may be right, but at least you can peacefully change those in charge.
 
 
jbsay
12:10 / 09.12.04
Who's going to uphold this "violation of property rights"?
Depends on how you decide to organize your community. Me personally? Despite being an uber-capitalist, I personally could do without money and possessions. I have a backpack with everthing I need in it, and wouldn't mind in the slightest living off the land (farm/hunt/fish). Probably would like it more than office work, and when I retire this is what I plan to do. I'd be perfectly happy arming myself to protect my property rights (farm/cattle/etc). However, you do raise a good point.

What about women/children/people who don't want to arm themselves/etc? I'd argue that yes, you probably want some VERY limited form of government whose ONLY job is to protect private property. The point is, communities can decide for themselves. THis is the beauty of a minimal, decentralized government.


A police force I assume.
Again, I'd be happy to live in the woods and fend for myself. But yes, you could assume that you would need a police force, just like you have now. THe big difference is what they can and cannot do. Can they arrest you for homosexual sex? Can they arrest you for smoking weed in your house?

Therefore, you need a government.
Not inevitably, but most people would probably feel more comfortable with a limited decentralized government, with judiciary and police force. Yes.


Do you really want to live in a society where the people with the most guns get to decide everything?

Not at all. This is the situation we have now, however. Do you think I'd willingly pay taxes and use pieces of paper for money if the people with the guns weren't telling me to do this?

The government (almost by definition) is monopoly on the use of force. Right now, you need to get permission from them to get a gun, if you can get one at all, and you cannot get certain types of guns. Virtually every genocidal government in history has used gun control (from registration to outright banning). http://www.jpfo.org/deathgc.htm


I'm sure you'd say we already do, and you may be right, but at least you can peacefully change those in charge.
Yes, I'd say that. And no, you can't peacefully change those in charge. You can vote on things, sure. But rarely do they let you vote on issues of substance. For instance, in america, how would I go about shutting down the socialist Federal Reserve? Alan Greenspan isn't elected by anyone, I dont get to vote on his policies.
 
 
jbsay
12:22 / 09.12.04
Pin,

How do I opt out of your socialist utopia? I've read 1984 and Brave New World and Atlas Shrugged, and I dont particularly like how these little socialist utopias turn out. So, if you're not letting me keep my property, how do I opt out?

They can't opt out of the system because they couldn't produce goods on a large scale because there is a small market because few people are gay because they get beaten up all the time and so the goods the produce are expensive but all the gay people are poor so they can't buy them.
Not sure you're writing coherent english, but i'll give it a shot anyway. Let's say you're right--gays would get beat up under capitalism (i think this is an absurd viewpoint, and it i consider it illegal to attack someone else). I don't see how this would be any different than what you have now--gays are getting beaten up all the time RIGHT NOW under MASSIVE, CRIPPLING, socialist governments. Under socialist governments, HUNDREDS OF MILLIONS OF PEOPLE HAVE BEEN KILLED FOR THE "GREATER GOOD". From the gays, to the Jews, to the Ukranians, to the Chinese, to the Cambodians, to the Vietnamese. "Mentally ill" people (perhaps gayness is a "mental illness"?) have been sterilized, killed, or locked up in insane asylums by your socialist govenrments.

They can't even leave because you took the fucking roads away and made them pay for it.

What are you talking about? Who took what roads away?

But again, let's walk through the "taking roads away". The economically parasitic government stole money from the productive (capitalist) part of society to build the roads in the first place. They use theft (tax money) to keep the roads up. They also charge tolls for you to use the road. What happens when you've redistributed all the wealth away and now everyone is of even income? Your roads fall apart.


On the other hand, you appear to be saying people should use their property in a way that makes their business work better.

No. I'm saying people use property however they see fit. If they want to take their property and burn it to the ground they are more than welcome to. I'd think they were stupid, but there's nothing I can do about it. If they want to donate all of their property to charity, they can do that as well. None of my business what you do with your property


No. See above.

And your view of people making exchanges without any reference to how much a product would cost them somewhere else is just stupid. Perfect information is impossible, but no information?

If everyone wnats energy efficient cars why do they drop their kids off to school in SUVs?

And coming back to Wal-Mart; people hate them because they destroyed local town retail alternatives and now people who want to oppose their employment practises can't because there's no where else to go. People started shopping there without being aware of the employment practises. This is a pretty good example of how people's choices within a market nmay not be the best example of their favoured choice.

And surely you can only do whatever you want with your property so long as everyone else wants to buy it at a price that allows you to keep using it that way. So free...

There is an objective reality, but as noted so many times in this thread it iis subjectively experienced by people with different priorities. These filters are largely created by socalisation and as such ther's no real way to judge between them. So you can't say yours is better.
 
 
jbsay
12:39 / 09.12.04
And your view of people making exchanges without any reference to how much a product would cost them somewhere else is just stupid. Perfect information is impossible, but no information?
Here's what I'm saying. If you abolish private property, I will let you have the nicest, smartest, most beautiful, and well-meaning socialists on the planet in charge of the economy. OK? And, I will let you have access to every computer on the planet as well. However, because there is no private property, and the price system arises ONLY from private property, YOU HAVE NO ACCESS TO HOW MUCH THINGS COST. It's not a matter of "imperfect information"--there is "imperfect information" under capitalism, because we are humans and not Gods. The point is that without access to prices, which ONLY arise from private property, you have NO PRICING INFORMATION. YOU HAVE NO WAY OF COMPARING DIFFERENT ECONOMIC OPTIONS OTHER THAN BLINDLY GROPING IN THE DARK. YOU CAN'T FIGURE OUT HOW MANY SHOES YOU NEED TO MAKE, OR IN WHAT SIZES, OR WHO TO GIVE THEM TO. SAME FOR HOW MANY DELICIOUS TWINKIES YOU NEED TO MAKE TO KEEP THE PROLETARIATS HAPPY. OK? You won't know how to make a shoe. How many people do you have to hire? What materials? Where will you put the factory? How many shifts will you operate? How many shoes will you be making? IN what sizes? Who will you get your parts from?

Read and Re-read my excerpts from Mises earlier in the thread until this is clear to you.


If everyone wnats energy efficient cars why do they drop their kids off to school in SUVs?

BECAUSE AN SUV DOES NOT COST THE SAME AMOUNT AS AN ENERGY EFFICIENT CAR. I said that--ALL ELSE EQUAL (price/performance), people would want an energy efficient car.

And coming back to Wal-Mart; people hate them because they destroyed local town retail alternatives and now people who want to oppose their employment practises can't because there's no where else to go. People started shopping there without being aware of the employment practises. This is a pretty good example of how people's choices within a market nmay not be the best example of their favoured choice.

Until you understand how capitalism works, don't even DARE shoot your mouth off about walmart.
http://www.mises.org/fullstory.aspx?control=1151
http://www.mises.org/fullstory.aspx?Id=1553
http://www.mises.org/fullstory.aspx?control=1521

And surely you can only do whatever you want with your property so long as everyone else wants to buy it at a price that allows you to keep using it that way. So free...
No, doofus. Pay attention. YOU CAN DO WHATEVER YOU WANT WITH YOUR PROPERTY. PERIOD. YOU CAN FLUSH IT DOWN THE TOILET IF YOU WANT.

There is an objective reality, but as noted so many times in this thread it iis subjectively experienced by people with different priorities.

I promise you, if you follow your policies, you will be OBJECTIVELY starving to death huddled in a hut somewhere wishing that you had learned how economics works. You may SUBJECTIVELY enjoy this experience or SUBJECTIVELY experience it differently than I will, and you may ENJOY the experience (perhaps you should join a monastary?) but I promise you that you will OBJECTIVELY be starving and cold and without shelter. Stop with this class subjectivism bullshit already. An apple is an apple, whether you grew up in London or as a Masai warrior. You can CALL it whatever you want, and EXPERIENCE it however you want, but it's STILL a fucking apple. Get a grip.

These filters are largely created by socalisation and as such ther's no real way to judge between them. So you can't say yours is better.

Yeah, I can in fact say mine is better. Your way doesn't work. You can't use subjectivity to get around this fact.
 
 
Lurid Archive
13:05 / 09.12.04
I promise you, if you follow your policies, you will be OBJECTIVELY starving to death huddled in a hut somewhere wishing that you had learned how economics works.

Wait, so you think that the US has been pursuing socialist policies for about a century. You also think that mixed economies are "impossible". And you believe that pursuing socialist policies will cause widespread starvation. Is that right?

Quite convenient that you don't believe statistics can tell you anything, I reckon.
 
 
jbsay
13:35 / 09.12.04
Wait, so you think that the US has been pursuing socialist policies for about a century.

Yes

You also think that mixed economies are "impossible".
In the long run. Obviously they are possible in the short run.

And you believe that pursuing socialist policies will cause widespread starvation. Is that right?

Correct

Quite convenient that you don't believe statistics can tell you anything, I reckon.

No, statistics can tell you quite a bit. THey just can never PROVE an economic point. For instance, I can show you how the socialist policies of Stalin starved 13 million Ukranians to death. That would be a point in my favor. But i'm not using it to prove my case. I can also pull statistics from the US government websiite's inflation calculator that shows that the purchasing power of the US$ was basically flat until 1913, and since the socialist federal reserve came into place in 1913 the dollar has lost 96-98% of its purchasing power (which means that people who live on fixed income--the poor, the elderly, etc, have been made more miserable than they otherwise would have been by constantly rising prices). You can also pull up a chart of the US$ against gold and any other basket of currencies you'd like for the past 5 years, and let me know if its "healthy" that the world's biggest economy (and the world reserve currency) are acting like this. However this does not PROVE my point. It highlights it, yes, but not proves it.
 
 
_pin
13:41 / 09.12.04
Listen, jah, I am not argueing for anything. I'm pointing out that no matter how economically right you are, uyou are morally, psychologically adn anthropolically wrong.

I want a system where by the socalists and you get to all live together without having to opt out or force anything. This is what I meant by the new game.

And you took to roads away by making them private enterprises that people ahd to pay to use. So only people with money get to use them. And why would the roads fall apart if there was equality? What if there was a sense of civic responsibility that went with equality that meant people fixed the roads themselves?

You're still telling me that we have two-party exchanges only. Going on what you've said, whenever your business sells anything, the people always pay money relating how much that product is worth to them, without refernce to how much said product is being sold elsewhere. I'm not arguing for socalist price-setting, I'm arguing against being stupid.
 
 
jbsay
13:42 / 09.12.04
http://www.restoringamerica.org/documents/10planks.html

1. Abolition of private property and the application of all rent to public purpose.

The 14th Amendment of the U.S. Constitution (1868), and various zoning, school & property taxes. Also the Bureau of Land Management

2. A heavy progressive or graduated income tax.

Misapplication of the 16th Amendment of the U.S. Constitution, 1913, The Social Security Act of 1936.; Joint House Resolution 192 of 1933; and various State "income" taxes. We call it "paying your fair share".

3. Abolition of all rights of inheritance.

We call it Federal & State estate Tax (1916); or reformed Probate Laws, and limited inheritance via arbitrary inheritance tax statutes.

4. Confiscation of the property of all emigrants and rebels

We call it government seizures, tax liens, Public "law" 99-570 (1986); Executive order 11490, sections 1205, 2002 which gives private land to the Department of Urban Development; the imprisonment of "terrorists" and those who speak out or write against the "government" (1997 Crime/Terrorist Bill); or the IRS confiscation of property without due process.

5. Centralization of credit in the hands of the State, by means of a national bank with state capital and an exclusive monopoly.

We call it the Federal Reserve which is a credit/debt system nationally organized by the Federal Reserve act of 1913. All local banks are members of the Fed system, and are regulated by the Federal Deposit Insurance Corporation (FDIC).

6. Centralization of the means of communication and transportation in the hands of the State

We call it the Federal Communications Commission (FCC) and Department of Transportation (DOT) mandated through the ICC act of 1887, the Commissions Act of 1934, The Interstate Commerce Commission established in 1938, The Federal Aviation Administration, Federal Communications Commission, and Executive orders 11490, 10999, as well as State mandated driver's licenses and Department of Transportation regulations.

7. Extension of factories and instruments of production owned by the State, the bringing into cultivation of waste lands, and the improvement of the soil generally in accordance with a common plan.

We call it corporate capacity, The Desert Entry Act and The Department of Agriculture. As well as the Department of Commerce and Labor, Department of Interior, the Environmental Protection Agency, Bureau of Land Management, Bureau of Reclamation, Bureau of Mines, National Park Service, and the IRS control of business through corporate regulations.

8. Equal liability of all to labor. Establishment of Industrial armies, especially for agriculture.

We call it the Social Security Administration and The Department of Labor. The National debt and inflation caused by the communal bank has caused the need for a two "income" family. Woman in the workplace since the 1920's, the 19th amendment of the U.S. Constitution, the Civil Rights Act of 1964, assorted Socialist Unions, affirmative action, the Federal Public Works Program and of course Executive order 11000.

9. Combination of agriculture with manufacturing industries; gradual abolition of the distinction between town and country by a more equable distribution of the population over the country.

We call it the Planning Reorganization act of 1949,zoning (Title 17 1910-1990) and Super Corporate Farms, as well as Executive orders 11647, 11731 (ten regions) and Public "law" 89-136.

10. Free education for all children in government schools. Abolition of children's factory labor in its present form. Combination of education with industrial production, etc. etc.

People are being taxed to support what we call 'public' schools, which train the young to work for the communal debt system. We also call it the Department of Education, the NEA and Outcome Based "Education".
 
 
_pin
13:43 / 09.12.04
Incidently, didn't Keynes have a plan to have an international currency set to a certain rate that would be unchangeable (a lot like gold to you) that countries would trade against, but business interests within the American barganing team at Bretton Woods scuppered this part of the plan?
 
 
Kit-Cat Club
13:49 / 09.12.04
What would you term 'the long run'? I'm interested because as far as I can tell, there's never been a government that you'd consider capitalist. I must say that, given this, appealing to historical examples seems a bit pointless (since surely every instance of prosperity as well as deprivation must have occurred under a socialist system), but there you go.

Basically, the problem I have with your theory (or proof, as I think you called it earlier) is that it only works as long as you don't admit any practicalities - that is, once we start thinking about things like property protection, we have to say that there would need to be a socialist element even in the most capitalist system. This means that it is difficult to accept that your theory is as absolutely correct as you claim. In addition, you seem unwilling to address more than the most basic practicalities, and this makes it seem as if you think they might have an adverse effect on your theory; and you seem unwilling to think about ways in which the system might become unbalanced over time, which has the same effect. It's very difficult to accept that, as you said to pin, his way won't work, and yours is the only one that will, when it's never actually been tried out, you know? And when you won't address questions about how it might work in practice, because they might throw a spanner in the works.

You know, you keep insisting that your way is best, and yet you haven't really shown us how people's lives will be qualitatively better.

I will be greatly obliged if you do not respond to me in caps lock mode.
 
 
jbsay
13:58 / 09.12.04
What would you term 'the long run'? I'm interested because as far as I can tell, there's never been a government that you'd consider capitalist. I must say that, given this, appealing to historical examples seems a bit pointless (since surely every instance of prosperity as well as deprivation must have occurred under a socialist system), but there you go.

No good answer to "the long run", as all individuals and economies are different, have different histories, different policies, and the future is always uncertain. The point is that "at some point in the future" you can show how things will fall apart. Sometimes this is a matter of months, sometimes it could take decades.

America as founded as a constitutional republic came close to capitalism. It was also wildly successful. The past hundred years have been exhausting the capital base built up before then, plus using the hegemony of the US$ as a reserve currency to bully other countries and siphon wealth from them.

Basically, the problem I have with your theory (or proof, as I think you called it earlier) is that it only works as long as you don't admit any practicalities - that is, once we start thinking about things like property protection, we have to say that there would need to be a socialist element even in the most capitalist system.

Don't confuse practicalities with theory. It is just as impossible to institute pure socialism in theory (how do you get rid of a black market?). THe point is that socialism can't even work IN THEORY. If you can't even get it to work even in THEORY, the practicalities are then irrelevant. So, like everything in life, you need to make compromises. The question is, do you start from the assumption that you need top-down regulation (socialism, minimizing individual freedom and maximizing government) or bottoms-up freedom (minimizing government and maximizing individual freedom).

It's very difficult to accept that, as you said to pin, his way won't work, and yours is the only one that will, when it's never actually been tried out, you know? And when you won't address questions about how it might work in practice, because they might throw a spanner in the works.

Correct. However, you have seen that the government does NOT solve problems. Does crime go away? UNemployment? Poverty? Death? So next time, instead of crying out to the government to "do something" (which will probably only make hte matter worse), let's try a different way.

You know, you keep insisting that your way is best, and yet you haven't really shown us how people's lives will be qualitatively better.

You can look at TV's, computers, paperback books, radios, cars, whatever you'd like. These are all successes of the free market despite governmental attempts to restrain it.

I will be greatly obliged if you do not respond to me in caps lock mode.
lol
 
 
_pin
14:05 / 09.12.04
Actually, computers are only a success because governments buy so many of them they can be produced on a large scale and so cheaply so can be brought by many people.

You haven't proved your theory because you still haven't said why people would operate in a market place without refernce to other prices but only on the basis of how much they want something.

My point about WalMart was that people got what they wanted within the market, but they also don't want it at the same time. Subjective experience, and private market space actions not being the best way of showing preferences. Until you understand my point, don't you dare point me to a website whose argument depends on one person's view of private property.
 
 
jbsay
14:22 / 09.12.04
Actually, computers are only a success because governments buy so many of them they can be produced on a large scale and so cheaply so can be brought by many people.

Um, no. Show me how this is so. First of all, again, the "government" itself has no money or capital of its own. It had to take it by force from someone else. So, get around that fact, and then show me how the computers would have been unsuccessful were it not for the government buying lots of them using wealth confiscated from its citizens.


You haven't proved your theory because you still haven't said why people would operate in a market place without refernce to other prices but only on the basis of how much they want something.

What? Of course they operate with reference to other prices. That's the whole point.

My point about WalMart was that people got what they wanted within the market, but they also don't want it at the same time.
I see. I'm a little bit pregnant, also

Subjective experience, and private market space actions not being the best way of showing preferences.

Oh, i see. What is the best way of showing preferences? An opinion poll? By listening to the Fuhrer? Whose prefernces are we talking about?


Until you understand my point, don't you dare point me to a website whose argument depends on one person's view of private property.
I vaguely understand what you're getting at, but you dont say it clearly because you're so into subjective thought patterns that people outside of your head can't objectively understand your feelings.

Their argument does not depend on your view of private property.
 
 
jbsay
14:35 / 09.12.04
Incidently, didn't Keynes have a plan to have an international currency set to a certain rate that would be unchangeable (a lot like gold to you) that countries would trade against, but business interests within the American barganing team at Bretton Woods scuppered this part of the plan?

No. "a lot like gold" is not the same as gold. the dollar was originally pegged to gold. every fiat inflation in history has started this way. in france, for instance, the paper money was originally pegged to the choicest real estate confiscated from the church. (http://www.gutenberg.org/dirs/etext04/fiatm10.txt)

eventually, when it becomes inconvenient for the government, it forfeits this obligation.
 
 
_pin
14:39 / 09.12.04
But you also said that trnasactions were subjective and between two people and tehre was no such thing as a "market force" which I was using to refer to prevailing attitudes within a market. Is this like that time you said we can't know how people act, but also that you know exactly how people act?

To move from WalMart to out-of-town shopping (because I don't know where WalMart stores are positioned within American towns, but many of the points seem similar to the ones made about out-of-towns), people "get what they want" in the market by buying from these places and getting cheap stuff and blah blah fishcakes. BUT they dislike it when it closes down local shops so they can't get stuff from there when they need it in a hurry. Also, all people with cars can't get to them, but they are too small in number to keep the local shops solvent.

People dislike the outcome of out-of-town shopping, but they also like the outcome. At the same time. This doesn't have anything to do with property rights, which i thought was kind of obvious, but whatever.
 
 
jbsay
14:44 / 09.12.04
Again, Pin, if I gave up all of my money and possessions , except for the contents of my backpack, I could be perfectly happy. I would wager that I am better able to live without money/material possessions than you are, despite you being a socialist (I have a decidedly Taoist bent, and am not attached to my possessions, and I can live outdoors on my own). OK? But my UPBRINGING and SUBJECTIVE views have nothing to do with the debate here, which is how are you going to set up an economic structure to raise the standard of living of "humanity".
 
 
jbsay
14:51 / 09.12.04
But you also said that trnasactions were subjective

I never said that. You can OBJECTIVELY say that a transaction has taken place.


and between two people
Yes
and tehre was no such thing as a "market force" which I was using to refer to prevailing attitudes within a market.
Right. there is no such thing as a market force, and there is no such thing as a prevailing attitidue WITHIN a market.

Is this like that time you said we can't know how people act, but also that you know exactly how people act?
No. I'm saying that 1) humans act 2) you don't necessarily know how they are going to act until after they have acted

To move from WalMart to out-of-town shopping (because I don't know where WalMart stores are positioned within American towns, but many of the points seem similar to the ones made about out-of-towns), people "get what they want" in the market by buying from these places and getting cheap stuff and blah blah fishcakes.
Correct. People get what they want. Walmart might cause some problems for them (what good/service is ideal?) but the benefits for them outweigh the costs. It frees them up to spend the money they saved on other things, for instance.

BUT they dislike it when it closes down local shops so they can't get stuff from there when they need it in a hurry.
Sure, life has these little tradeoffs. I'm not thrilled about using Microsoft products (I like linux better), but for my purposes it is best to use them. You can't get everything you want. You have to choose between two options. Even the rich don't have unlimited wealth, they still have to maximize their satisfaction with their limited resources.

Also, all people with cars can't get to them, but they are too small in number to keep the local shops solvent.
What?

People dislike the outcome of out-of-town shopping, but they also like the outcome. At the same time. This doesn't have anything to do with property rights, which i thought was kind of obvious, but whatever.

Your point is not obvious. You won't ever be completely happy. This is not Eden. You will always have to make compromises and choices. Even the richest man in the world will have this problem. Get over it. Every product I buy has some things I like, and some things I dont like.
 
 
ONLY NICE THINGS
15:52 / 09.12.04
By listening to the Fuhrer?

Ah, the great smell of Godwin. Again.

You know, I'm worried about this thread. It seems to be getting a bit moribund. Let's see if we can't jolt some life back into it.

If I understand correctly, apart from the criticism that jah's argument fails to take into account that, if every society ever has been socialist, it seems odd to state confidently either that no socialist society can survive or that all socialist societies end in starvation. However, the distinction between history and fantasy we have already discussed. More generally, jah is preaching Leaptopianism - an ideology made famous by our own beloved Leap, a similarly excitable young man who was also rather too fond of the pointless ad hominem. In Leaptopian society, humans operate essentially at the village level. People like Leap, who combine innate ethical sense with a mastery of woodcrafts, are respected for their ability to catch food. In general, order is maintained through the judicious application of melee weapons, although grannies are allowed shotguns.

Now, Leaptopia has some attractive elements. Most obviously, it means that government intrusion into our lives is abolished, and also the general, nagging sensation not only that our taxes are gratuitous but also that by paying them we are funding things of which we do not approve - the war in Iraq, ID cards, that sort of thing - is abolished. In essence, it's an anarcho-syndicalist utopia in which no process of trade beyond barter exists.

So far so good. The two questions that tend to be raised at this point are: 1) how does one obtain the things that a social model based around individuals interacting with individuals doesn't do very well, like roads, national defence, health care? and 2) although many of the thjngs the government uses our money for are not things we agree with - for example, war in Iraq -are unwelcome, how do we get rid of that without alos getting rid of things we do like - for example, financial support to people at the bottom of the heap? The Leaptopian solution is that the virtuous poor would be supported by acts of individual charity. This highlights what for me is a bit of a problem with Leaptopian society: those with resources to spare get to decide who is or is not deserving. If a very small number of people in an area have resources to spare, or prioritise kindness to the needy as a desirable commodity for them to purchase, then the ranks of people who get to choose who is deserving is equally small.

So... I'd suggest that one of the aims of government bureaucracy is to prevent these sort of personal, moral judgements being applied to issues like the care of the poor. The bureaucracy's facelessness is annoying, and expensive to maintain, but it means that those who set policy have no vested interest or moral animus towards those who seek to benefit from it. In the absence of an incontestably even-handed arbiter, this is represented as the best way to get around the issue. Can individual charity perform in the same way?
 
 
Lurid Archive
16:43 / 09.12.04
Probably not. But it goes mch deeper than that. I think your Bhopal example was an excellent one and deserves further examination. What incentive does any company have to act in an ethical manner? Very little, if it is defined in terms of profit. Taking this further, it is clearly within the interests of companies not to pollute, as a group. However, as individual units solely under market pressure, they only have incentives to cut immediate costs. Thats why measures to tackle pollution are always regulatory. Even the most ardent market enthusiasts favour market distorting incentives rather than professing any serious belief in a laissez faire solution, if they actually want to tackle the problem.

This is, I think, symptomatic of how markets can go wrong. If you look at R&D, you find that companies that operate as near monopolies do well at it, but otherwise the investment into research just doesn't pay off quickly enough. Especially if you consider that serious modern research requires some kid of coherent education system. Thats the sort of thing that markets cannot provide. Same goes for health and infrastructure generally. The protests that the market would provide these things were it not for those damn pesky socialists has no factual support.

So while I agree that the ethical angle is important (paramount, in fact, but one rarely has to make the case to those who agree with that prioritisation), I also think that one shouldn't understate the case for amoral self interest. I don't think it is a coincidence that developed nations have governmental provisions for education, research and infrastructure.
 
 
jbsay
17:16 / 09.12.04
If I understand correctly, apart from the criticism that jah's argument fails to take into account that, if every society ever has been socialist, it seems odd to state confidently either that no socialist society can survive or that all socialist societies end in starvation.
You are not understanding correctly.

Not every society has been socialist. There have been feudalist societies, etc, and there are many different varieties and extremes of socialism. They end in differing degrees of devestation and collapse.

More generally, jah is preaching Leaptopianism - an ideology made famous by our own beloved Leap, a similarly excitable young man who was also rather too fond of the pointless ad hominem. In Leaptopian society, humans operate essentially at the village level.
I am preaching nothing of the sort, and I ain't excited, son.

Humans operate at the individual level. Villages have nothing to do with it any more than “society” or “nations” do.

People like Leap, who combine innate ethical sense with a mastery of woodcrafts, are respected for their ability to catch food.
Again, I said nothing of the sort. I said that I personally would be happy to live in the woods by myself, not that this is “ best for society”. I could care less if you respect me.

In general, order is maintained through the judicious application of melee weapons, although grannies are allowed shotguns.

Again, I said nothing like this. I said it may be very appropriate to have a very limited constititutional republic to protect private property rights. The U.S. Constitution tried to limit the destructive role of a centralized government by putting power in the hands of the states but built in too many loopholes (Jefferson realized this and recommended an overthrow of the government every couple decades). Others like Patrick Henry hated the constitution from the start and favored the even more decentralized articles of confederation.

In essence, it's an anarcho-syndicalist utopia in which no process of trade beyond barter exists.
No, I’m saying nothing of the sort. You’re putting words in my mouth. The most marketable commodity (usually gold, silver) with suitable money-like characteristics will be used as a medium of exchange, thus elevating society beyond simple barter. Read the Theory of Money and Credit

The two questions that tend to be raised at this point are: 1) how does one obtain the things that a social model based around individuals interacting with individuals doesn't do very well, like roads, national defence, health care?
The general class of economic problem you are referring to is a “public good” in economics speak (http://www.mises.org/journals/jls/4_1/4_1_6.pdf), a familiar example taught in schools is the lighthouse, and I have rarely seen an example of an economic “public good” that is legitimate. Others have shown why markets do a better job of providing such goods than governments do. I can give you a few quick links.

For instance, individuals interacting with individuals do an excellent job of providing healthcare. I would like you to back up your assertion that government does it better, since I specialize in the healthcare industry and I can't point to a single example. The government tampering with healthcare, or anything else, tends to fuck things up. You can look back to the history of the AMA and the use of government to artificially limit the supply of doctors, plus the smear campaign aimed at homeopaths etc., as the start of the inflationary spiral in health care costs. (http://www.mises.org/blog/archives/002110.asp) If you’re interested I can provide links on medicare, Medicaid, and socialized medicine.

Ditto for roads and lighthouses (read Coase’s history) and railroads and national defense(http://www.mises.org/etexts/defensemyth.pdf).

and 2) although many of the thjngs the government uses our money for are not things we agree with - for example, war in Iraq -are unwelcome, how do we get rid of that without alos getting rid of things we do like - for example, financial support to people at the bottom of the heap?
1) capitalism by its very nature supports people at the bottom by lowering prices for them
2) This assumes that there are no charitable people in a capitalist society. Are there church groups? Will some people use the money they aren’t paying in taxes to donate to help others? If I wasn’t paying such ridiculous amounts in taxes would I be more charitable?


The Leaptopian solution is that the virtuous poor would be supported by acts of individual charity. This highlights what for me is a bit of a problem with Leaptopian society: those with resources to spare get to decide who is or is not deserving.

As opposed to socialism, where those WITHOUT resources get to decide who to plunder resources FROM, and who is or is not deserving of receiving this plundered wealth?


If a very small number of people in an area have resources to spare, or prioritise kindness to the needy as a desirable commodity for them to purchase, then the ranks of people who get to choose who is deserving is equally small.
No, again, the whole point is to make things cheaper (positive-sum game) as opposed to socialism which has to make someone else worse off to make someone else better off (zero-sum game). Under capitalism prices have a tendency to fall (making goods and services more affordable). Which is why a poor man’s clothes and sneakers and food and shelter and healthcare today are better than a King’s 400 years ago, despite government attempts to hamper this progress.



So... I'd suggest that one of the aims of government bureaucracy is to prevent these sort of personal, moral judgements being applied to issues like the care of the poor. The bureaucracy's facelessness is annoying, and expensive to maintain, but it means that those who set policy have no vested interest or moral animus towards those who seek to benefit from it

No vested interest? Are you kidding me? This is the very definition of vested interest.

In the absence of an incontestably even-handed arbiter, this is represented as the best way to get around the issue. Can individual charity perform in the same way?
Again, it’s not charity that is making people better off (although that helps also). It’s that prices for goods and services are falling, making them more accessible to everyone.
 
 
jbsay
17:19 / 09.12.04
More blogs on "public goods"
http://www.mises.org/blog/archives/001844.asp
 
 
ONLY NICE THINGS
17:53 / 09.12.04
Gosh. Would that be the Mises fansite again?

Which is why a poor man’s clothes and sneakers and food and shelter and healthcare today are better than a King’s 400 years ago, despite government attempts to hamper this progress.

This analysis seems to count out technology, mass production... all developed in socialst societies. You seem to believe that they were capitalism mutations, but I see no evidence to prove it. For that matter, I see no evidence that capitalism lowers prices. Back to Wal-Mart. Having driven local competitors out of business, they raise prices, to find a "sweet spot" where sales volumes and sales margins reach optimum levels. It is possible that some enterprising soul will saubsequently set up business and undercut them. At which point Wal-Mart has a choice of using economies of scale to undercut them again until they go out of business, at which point prices can be raised again, or telling their suppliers that they will no longer get enormous orders from Wal-Mart if they fulfil small orders to the competing business. How do you break that cycle? It strikes me that the inequalities in wealth which are to some degree moderated by these socialist societies we all live in...

Now, elsewhere I was describing Leaptopia, not "misreading" you. You have misread me - look at the post again.
 
 
jbsay
17:54 / 09.12.04
also, when you say i'm promoting anarch-syndicalism, what do you mean by syndicalism

1) special revolutionary tactics to be resorted to for the realization of socialism?

or

2) give the ownership of the plants to the workers employed in them
 
 
jbsay
19:12 / 09.12.04
Haus

1) technology and mass production are effects of the free market...the price system, profit/loss tests, division of labor, and risk-taking.

2) for walmart, (no jokes about mises site) read the Case for Walmart which answers most of your questions. if not, re-ask me after reading and i'll tyr and answer for you

http://www.mises.org/fullstory.aspx?control=1151
 
 
jbsay
21:07 / 09.12.04
What incentive does any company have to act in an ethical manner?
None. It is not defined in terms of profit. They have proper incentive (loss of profit due to liability) if they infring on other people's property



However, as individual units solely under market pressure, they only have incentives to cut immediate costs.

No. They have incentives to not violate other people's property because they are liable for the damage (this is a cost they factor in). This limits "negative externalities" like you are talking about. Whereas, under public property or ill-defined private property rights, you have an incentive for "the tragedy of the commons" like Bhopal.

Thats why measures to tackle pollution are always regulatory.
No, they are property rights.


Even the most ardent market enthusiasts favour market distorting incentives rather than professing any serious belief in a laissez faire solution, if they actually want to tackle the problem.
Again, no i don't. I advocate property rights as the solution to the problem. I have a very big incentive not to pollute the drinking water if i know that I can and will be sued for it, and have to pay damages for violating other people's property(treble damages for instance?)

If you look at R&D, you find that companies that operate as near monopolies do well at it, but otherwise the investment into research just doesn't pay off quickly enough.
I analyze businesses all day. I have never seen an example like this. For instance I look at biotech companies (not monopolies) where it may take 7-15 years for R&D to pay off. Venture capitalists and other investors who have long investment time horizons are happy to provide them with this capital and be patient for it to pay off. Please provide examples to support your point b/c I can't think of any off the top of my head.

Especially if you consider that serious modern research requires some kid of coherent education system.
Coherent, yes. Public, no. And for everybody? No. I would have much preferred to start working full-time at the age of 10. Read Underground History of American Education

Thats the sort of thing that markets cannot provide.
They can and do provide it. Education was a free-market institution in America prior to the mid to late 1800's, and literacy rate was higher then than it is now.

Same goes for health and infrastructure generally.
No. See the "public good" economics argument above. I know quite a bit about the healthcare industry, and your statement is plain wrong.

The protests that the market would provide these things were it not for those damn pesky socialists has no factual support.
Actually, they do. Read the history in the above links. If that's not enough for you contact me offline and I'll give you some books and articles to read

I don't think it is a coincidence that developed nations have governmental provisions for education, research and infrastructure.
Not necessarily a coincidence. THe more effective the free market has been, the bigger the governmental parasite can get without killing the patient (for a while).
Saying that the government provision of education, research, and infrastructure CAUSED prosperity is quite a different thing however. And i strongly disagree.
 
 
MJ-12
21:20 / 09.12.04
I analyze businesses all day. I have never seen an example like this. For instance I look at biotech companies (not monopolies) where it may take 7-15 years for R&D to pay off. Venture capitalists and other investors who have long investment time horizons are happy to provide them with this capital and be patient for it to pay off. Please provide examples to support your point b/c I can't think of any off the top of my head.

AT&T, pre-divestiture.
 
  

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