Can ‘capitalism’ be free and democratic, fair and inclusive?

I came across an article from Reclaim the American Dream: Issue Brief: Inclusive Capitalism. It offers a progressive critique of present capitalism and a progressive vision of what a fair market would look like. It’s not a deep analysis, but some good points are brought up.

Here is an issue brought up just yesterday by my business management, capitalist-loving, fiscal conservative father:

“In that era, CEOs of America’s corporations did not pay themselves vast sums of company stock, as they do today. That was frowned upon as unethical insider trading, because obviously top corporate executives have inside information on new products about to appear or other major moves on the horizon.”

This is about how and where companies invest their money. Obviously, CEOs have come to see one of the best ways to invest money is by paying CEOs more. That is problematic, even ignoring the charge of “unethical insider trading” and the related moral hazard my dad mentioned. The problem isn’t just that CEOs make more money than they are worth (i.e., more than the value they contribute to the company), but that money invested in CEO pay could have been invested elsewhere.

Companies used to invest more in workers, for example. Besides ensuring their workers were healthy and safe, they did on-the-job training. It wasn’t just a time when economic mobility was high in the larger society. Mobility within companies was also higher. It used to be much easier for someone to start with an entry level job and work their way up into management.

Companies used to see employees as long term investments and employees tended to stick around for that reason. As my dad has told me, some Japanese companies still have this attitude, looking to hire people who will be long term members where the company commits to the worker in expectation that the worker will commit to the company. It’s an ethos of social trust and responsibility, a company as a kind of community.

But it goes way beyond just about the value seen and invested in employees. There used to be a mentality that a company should go to great effort to reinvest back into the company itself. That has changed so now it is seen as a priority to ensure shareholders get profit, no matter the long term damage done to the company. There has been a loss of not just social responsibility but also long term vision.

“Trillions of dollars that could have been spent on innovation and job creation in the U.S. economy over the past three decades have instead been used to buy back (company) shares for what is effectively stock-price manipulation,” economist William Lazonick reported in the Harvard Business Review in late 2014.

“The contrast between what business does today and what it used to do is stunning. In a study of hundreds of major U.S. companies, Lazonick found that in the late 1970s and early ‘80s, major U.S. companies ploughed close to half of their profits into expanding their businesses, funding R&D, retraining workers and paying them more, and paid out the other half of profits to shareholders.

“But from 2003 to 2012, Lazonick found, shareholders got 91% of corporate profits and growth got only 9%. That is a disastrous ratio the American economy.”

The focus of companies used to be on making the best products possible. Now the emphasis is more on sales and profit, with little sense of pride in doing quality work that contributes to society.

Drug companies, for example, spend more on advertising than they do on R&D; and that doesn’t even count the money they spend on lobbying, campaign donations, and maybe some astroturf. As the above data shows, this shift from investing money back into companies has become the norm.

That reminds me of what made early Quaker businesses so distinct, as they put quality of product before all else and on religious grounds were against manipulative and deceptive advertising. For a Quaker, being a businessman was a divine calling, not just a way to make money. The good and the goods of a business couldn’t be separated from moral goodness of religion and the social goodness of community.

Then again, there is the left-wing perspective. My favorite voice from the left is Joe Bageant. His writing is always amusing and insightful. One of his pieces on capitalism is Waltzing at the Doomsday Ball. With his typical style, he begins by getting straight to the point:

“As an Anglo European white guy from a very long line of white guys, I want to thank all the brown, black, yellow and red people for a marvelous three-century joy ride. During the past 300 years of the industrial age, as Europeans, and later as Americans, we have managed to consume infinitely more than we ever produced, thanks to colonialism, crooked deals with despotic potentates and good old gunboats and grapeshot. Yes, we have lived, and still live, extravagant lifestyles far above the rest of you. And so, my sincere thanks to all of you folks around the world working in sweatshops, or living on two bucks a day, even though you sit on vast oil deposits. And to those outside my window here in Mexico this morning, the two guys pruning the retired gringo’s hedges with what look like pocket knives, I say, keep up the good work. It’s the world’s cheap labor guys like you — the black, brown and yellow folks who take it up the shorts — who make capitalism look like it actually works. So keep on humping. Remember: We’ve got predator drones.”

From that perspective, it is, always was and always will be a sham. I’m sympathetic with that. When the US economy was doing its best, the US military was being ruthless around the world and even back at home the police state was being ruthless toward minorities and the poor. The American Dream was never fully a thing of substance for so many.

I do think ‘capitalism’ has become a problematic word at this point. There is no way to separate it from its long history of imperialism and colonialism, exploitation and oppression. If we honestly care about being free people in a free society with free markets, whatever that might mean, we probably better drop the baggage of capitalism.

Looking back, the capitalism of generations past can seem like a wondrous thing, at least for those who weren’t one of the many being trampled upon. It is true that many benefited and the economy grew. No one doubts that. But at what cost? Maybe what we have become was an inevitable result of what we once were. We just couldn’t see it coming. The tide that raises boats also drowns, and when the tide goes back out as it always does we are left with a bunch of stranded boats and dead bodies.

Maybe we need to rethink the whole thing, not just pine for what used to be. Still, might we salvage some lessons learned from the past?

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Libertarianism and Reactionary Conservatism

The Leopold and Loeb of Modern Libertarianism
By Corey Robin

While the disparity between the free-wheeling philosophy of the market and the reality of coercive capitalism has long been known, the last four decades have sharpened it. Partly because of the rise of an aggressive defense of untrammeled markets in the name of liberty, partly because of the assault on the welfare state and social democracy. For some on the left, today’s disparity between libertarian theories of the market and the reality of capitalism proves that the idea of the free market is a simple ideological mystification. “Nietzsche’s Marginal Children” takes a different tack: it tries to show that the practice is built into the theory, that it is not elided there but embraced.

“[ . . . ] the libertarian defense of the market—while often treated as a source of tension on the right because it conflicts with the conservative commitment to stability and tradition, virtue and glory—is in fact consistent with the right’s reactionary project of defending private hierarchies against democratic movements from below.

I’d also recommend checking out another article in The Nation by Corey Robin:

Reclaiming the Politics of Freedom

Against Capitalism: Democracy & Socialism

Introduction

This post is inspired by some articles I’ve been reading and by a discussion I was having with my pro-capitalist conservative father. The subject that I write about below involves the analysis of capitalism, socialism, social democracy, and democracy. My intentions weren’t to create a singular coherent argument backed by numerous cited examples. I just wanted to clarify some basic distinctions that aren’t well understood by the average person, especially the average conservative and right-winger (probably not even understood by the average liberal).

I will divide this post up into two parts. The first part was my response to a specific article. The second part is various thoughts of mine that I gathered together.

Part 1

Socialists everywhere – The Daily Iowan

In ancient Rome, the emperors provided the capital’s inhabitants with “bread and circuses.”  Ever since, that combination has been shorthand for rulers buying off the ruled with the necessities of life and spectacle.

“In Rome, that spectacle involved gladiatorial and other elaborate games of death that took place in the Colosseum.  In this age, our rulers, the 1% whose money has flooded the electoral cycle, are turning the election itself into our extended circus.  This year, a series of Republican televised “debates” have glued increasing numbers of eyeballs to screens — and not just Republican eyeballs, either.  Everyone waits for the latest version of a reality show to produce the next cat fight, fabulous gaffe, late-night laugh line, confession, denial, scandal, or plot twist, the next thumbs up or, far better, thumbs down on some candidate’s increasingly brief political life in the arena.

“Think of it as their bread and our circus.  Who can doubt that, like the crowds of Rome once upon a time, we await the inevitable thumbs-down vote and the YouTube videos that precede and follow it with a kind of continuing bloodlust?  The only problem: however strange all this may be, it’s not, at least in the old-fashioned sense, an election nor does it seem to have much to do with democracy.  The fact is that we have no word for what’s going on.  Semi-democracy?  Unrepresentative democracy?  1% democracy?  Demospectacracy?

“Of course, we still speak of this as a presidential election campaign, and it’s true that 11 months from now more than 60% of the voting age population will step into polling booths across the country and cast ballots.  But let’s face it, if this is an election at all, it’s certainly one stricken with elephantiasis.  Once, as now, a presidential race had primaries, conventions, campaigning, mudslinging, and sometimes even a few debates, but all of this had limits.  In recent years, the limits — almost any limits — have been disappearing.  Along the way, the process has expanded from an eight-month-long affair that most voters only began to attend to sometime in the fall of election year to a perpetual campaign, perpetually discussed, reported on, and displayed.

[ . . . ]

“What any of this has to do with democracy, as opposed to spectacle, influence, corruption, the power of the incredibly wealthy to pay for and craft messages, and the power of media owners to enhance their profits is certainly an open question. Think, at least, how literally the old phrase “money talks” is being updated every time you hear the candidates, or see their ads, or get a robocall from one of them, or receive a geo-targeted mobile adof theirs on your iPhone or Android.

“It’s clear enough — or should be by now — that the electoral process has been occupied by the 1%; which means that what you hear in this “campaign” is largely refracted versions of their praise, their condemnation, their slurs, their views, their needs, their fears, and their wishes.  They are making money off, and electing a president via, you.  Which means that you — that all of us — are occupied, too.

“So stop calling this an “election.”  Whatever it is, we need a new name for it.”

 * * * *

I was having a discussion with my dad about a related topic. We were discussing welfare. Surprisingly, his conservative and my liberal views on the matter converge on a certain agreement. Welfare, as it is presently structured, is like the Roman’s “bread and circus” (or, at least, the bread part which is balanced by the media circus, especially the political media circus).

This is the problem. Bread and circus isn’t merely dysfunction. Welfare works, but it just doesn’t effectively solve the problems some would like it to solve. What bread and circus did for the Romans was to prevent revolution and that is what welfare does for many countries in the modern world, the US being the focus of the discussion. If welfare were to end tomorrow, revolution would begin tomorrow. Welfare is the bandaid put on the gushing wound of capitalism.

Even my dad agreed, despite his being a libertarian-leaning fiscal conservative former businessman and former business management professor. My dad is a well off white conservative and so it would be easy for him to simply blame the poor, the minorities, the immigrants… as many like him (in this demographic niche) do on a regular basis.

 * * * *

My dad explained his reasons.

From my point of view: The manual labor jobs are simultaneously decreasing in number and in pay, partly because of outsourcing of industry and because machines and computers have made many jobs more efficient while making many other jobs obsolete.

From my dad’s point of view: What has increased are knowledge jobs that are worked by people who have high levels of education and tend to have above average levels of intelligence.

This presents two problems.

The first problem my dad pointed out. The portion of the population that is highly educated and above average in intelligence isn’t increasing, generally speaking. The proportion of society remains basically the same. Throughout history, manual labor was always the primary employment available… until now. So, what is to be done with all the excess and unnecessary people who are less educated and/or average-to-below-average in intelligence? We keep those people in place by giving them welfare so that they don’t starve, so that they don’t turn to crime and revolution.

The second problem I pointed out. It is in an extension of the first. As far as I can tell, there is no clear evidence against and much reason to assume that the increase in certain sectors of jobs (such as knowledge jobs) isn’t keeping up with the decrease in other sectors of jobs (such as manural labor). This is particularly true recently. A lot of jobs have been lost. Despite big businesses doing better than ever, despite companies gaining more efficient work and hence more profit from their employees, big businesses aren’t hiring more which comes after a period when they got rid of vast amounts of employees. According to our present capitalist model, there is no reason they should hire more people.

On top of this, also consider the loss of benefits and job security, consider the stagnating wages along with the inflation and rising costs that are making those wages worth less, consider rising economic inequality along with its attendant social and health problems… and I’m sure many other factors could be added.

 * * * *

I was particularly focused on the aspect of technology replacing humans. Even some high-paying knowledge jobs are becoming obsolete.

For example, I was reading about how many newpapers no longer hire proofreaders because editing software does a good enough job. On the other end, my job as a parking ramp cashier is being threatened because management wants to put in all self-pay stations. Similarly, at O’Hare airport I’ve heard that the toilets are self-cleaning. Within the next decades, many jobs will become obsolete because of technology. Any job that is manual, repetitive, systematic or somehow with clear rules and goals (which includes many knowledge jobs) will eventually be replaced by robots and computers (maybe as a member of the older generation, my dad has faith that robots and computers won’t replace humans, a misplaced faith in my opinion).

Most jobs people do now won’t exist in the future. Furthermore, if capitalism is left to its own devices, these jobs won’t necessarily be replaced by better jobs or might not be replaced at all. So, either we have a capitalist society where welfare and oppression (our growing prison system being an example) keeps the unemployed in line or we develop a new type of economic and social system. More of the same or something new. Those are the only two choices.

* * * *

My understanding always refers back to democracy by which I mean the entire range of social democracy. I suggested to my father that we need more civic participation and engagement (an anarchist hearing this would immediately start ranting about statism). What we have now is the opposite.

Republicans have been trying to disengage much of the population such as by making voting even more difficult which inevitably further disenfranchises the poor and minorities (not to imply the Democratic Party has been trying to engage the disenfranchised to any great extent; it’s simply that the Democrats don’t attack this demographic in the way Republicans often do). This is predictable as conservatives have an inherent mistrust of democracy, but conservatives also used to have an inherent mistrust of capitalism and some conservatives are starting to wonder why they lost this mistrust. It’s hard being a conservative for all they ultimately trust is something like organized religion. Capitalism is merely a protection against socialism and even against true grassroots democracy, but conservatives must assess how well capitalism (especially in its present corporatist form) is protecting those traditional values and individual rights they claim to love so much.

My democratic suggestions, however, do start to appeal to conservatives during troubled times. Conservatives forget about community during economic upswings and find the value in community once again when the pendulum swings back. What conservatives don’t understand is socialism is simply the purest or most absolute form of community. Socialism isn’t about any particular type of community, whether hierachical or anarchistic, whether statist or minarchist. Socialism is just about making community the center of a society. This is simply traditional culture at its roots. Most early people, especially tribal, lived to varying degrees of collectivity. Socialism doesn’t deny individual aspiration or betterment. It just puts it in the context of community rather than putting community in the context of the individual. Individual efforts shouldn’t be a detriment to the community which would also mean to the detriment to all the other individuals in that community. That is insanity, our present insanity in fact.

In the discussion with my father, my specific suggestion was something like a works project. We have so much decaying infrastructure. We have so many things that need to be done in our society that no one is doing. At the same time, we have so many unemployed people who aren’t doing much despite most of them wanting to do something worthy. Most people don’t want to sit around doing nothing. People want to have meaning and purpose, to feel like they are contributing to their familes and their communities, to know that they are using their talents and at least to some degree living up to their potential. We have cities filled with trash, parks closed down for lack of money to maintain them, we have public employees being fired because of budgetary concerns, and on and on. Much of this work can be done (at minimal costs, relative to the costs of welfare) by the unemployed which includes both the educated and the uneducated, although in some cases such as construction basic training might be required (the training itself would be a good thing as it would also make them more employable in the private market).

In the past, my dad was always suspicious of such ideas. They verge on the socialist. However, when speaking with him last night, I was able to communicate the potential wisdom and benefit of such a proposal. My dad still thinks socialism doesn’t work, although through various examples (the sewer socialists, the Harmonists, etc) I’ve brought doubt to his former certainties. What he still doesn’t quite grasp is that socialism and social democracy are just different degrees of the same phenomenon.

Part 2

Democracy and capitalism are at odds. Democracy moves toward diffusion of and sharing of power. Capitalism, unlike a free market (a free market being a hypothetical that has never existed on the large scale, large corporations become bureaucracies and use centralized planning just like any socialist state), moves toward monopoly of power (by way of monopolizing capital: he who rules the capital rules capitalism). Democracy can only function when there is a functioning social democracy. Social democracy is simply the first and most basic manifestation of socialism. Democracy, social democracy and socialism are antithetical to capitalism, but they aren’t antithetical to any genuine free market.

See the real world examples of socialism in the US. The Shakers and Harmonists, although failing because of their celibacy rules, were some of the most successful and innovative businesses in the US when they were operating, both societies having existed for about a century. The sewer socialist mayors of Milwaukee, social democracy at its finest, governed one of the most well run cities for decades which they did so by fighting corrupt big business and promoting local small businesses that contributed to the community (maybe closer to a genuine free market), a time during which the economy boomed in Milwaukee. The collectivist Eastwind Community (a living example of a commune) has operated a number of successful businesses for decades.

The sad irony is that to fight against communism is to fight against democracy. Neither socialism nor democracy can exist without the other. Communist countries that undermine democracy will fail, just like democratic societies that undermine socialism/social-democracy will fail. It’s not an all or nothing scenario. It’s a balancing act of simultaneously seeking the common good, public freedom, and individual rights.

 * * * *

As I talked to my dad last night, I pointed out the example of Milwaukee. He said that is more an example of social democracy. Yes, but that misses the point. Social democracy is just one facet of socialism.

Conservatives like my dad (along with many misinformed moderates and, sadly, liberals as well) don’t recognize the socialism in social democracy for a simple reason. They don’t actually know what socialism is. They have such a distorted vision of socialism as bogeyman that any real example of functioning socialism must be rationalized away or somehow seen as a very limited exception… and so not worthy of being taken seriously.

At the time in the US, what the Milwaukee sewer socialists had been doing was radical socialism. They were collectivizing many aspects of society that had formerly been left private. The socialists made these things part of the government because the private sector was failing at it or not even attempting to do it. The private sector didn’t care about pollution, about clean air and clearn water, especially not in terms of the poor. The owners and operators of big businesses that were causing most of the pollution didn’t care that poor people were dying. They didn’t care because they could afford to live far away from the polluted areas and they could afford to have clean water brought to them.

The Milwaukee sewer socialists were so successful that their brand of socialism has become the norm in the US. Also, it wasn’t that all of this was simply spending other people’s money to help the poor. As I’ve already pointed out, during their time of governing, their policies helped make the local economy boom. They did this by prosecuting corruption and regulating the crony capitalism that was rife among big businesses at the time.

Like many conservatives and right-wingers, my dad is always repeating the talking point that socialism is the spending of other people’s money.

First, this is a generalization that is based on many unstated assumptions (ownership isn’t as simple as those on the right assume; as Paine correctly noted all of the earth — all the land, air, water and other resources — is part of the commons, private individual ownership being a very recent concept).

Second, it could be turned around by pointing out that capitalists use other people’s resources to make their profits in the first place (they use the commons that the government sells them at below market prices and usually by the force and protection of the government, force that is paid for by other people’s money being spent to benefit corporations; just think of all the wars the US government keeps having in countries that just happen to have lots of resources such as oil or happen to be key locations near such countries).

I don’t mean to pick on my dad. He is a smart guy. The problem isn’t specifically about him. Most Americans, left and right, are misinformed about socialism. The problem is that he is representative of the average American and hence of the mainstream culture in America. My criticisms go beyond any single person. I grew up in this same culture and it has been a struggle for me as well. We all are born ignorant and we all are bottle-fed propaganda and misinformation. All that we can hope is that our knowledge and awareness increases as we age, a struggle that only ends when we die.

From what I know and understand at this point in my life, this is how I see our dilemma: The choice we are facing at present really isn’t socialism vs capitalism. Rather, the choice is between democratic socialism vs corporatist socialism.

It’s the success of socialism that allows conservatives like my dad do dismiss it as if they weren’t surrounded by it. That is the problem of success on the left. Any progress that is made will eventually be embraced by the right and will become the new norm (for example, in the way most conservatives support Social Security), but the right will never give the left any credit for the new norm even when they benefit from it and take it for granted. People stop seeing the socialist infrastructure of society and only see the capitalist system that is made possible by it.

What they forget is that many things are possible beyond our present corporatist socialism. Capitalism isn’t inevitable. It’s a choice we have collectively made and so we can collectively choose once again. We can choose a socialism that benefits the many instead of just the few.

 * * * *

It’s very simple. Social democracy is the key element to the entire discussion. Here is what social demoocracy proves and demonstrates:

Social democracy is the meeting point of socialism and democracy, and hence it manifests qualities of both depending how fully that meeting is integrated into a functional system. But it goes further. It isn’t just a meeting point or even the manifestation.

Neither democracy nor socialism could exist outside of social democracy. When it is attempted to separate them, one gets democracy or socialism in theory (i.e., in rhetoric) but not in actual practice. The Cold War was a fight of rhetoric between a failing democratic state and a failing socialist state, both in reality fighting over the same imperial power and dominance which had nothing specifically to do with either democracy or socialism.

If you care about either democracy or socialism, you must care about social democracy. And if you care about social democracy, you must care about both socialism and democracy. It’s thesis, antithesis and synthesis.

 * * * *

I’ve heard that socialism doesn’t work so many times from conservatives and right-wingers that it boggles my mind. What does such an assertion even mean?

I pointed to several successful examples of socialism just in the US. I could add many more such examples, especially in the Northern Midwest: Wisconsin, Minnesota, Michigan, etc. Even consider North Dakota which most people don’t connect with socialism (‘The Middle West: Its Meaning in American Culture’ by James R. Shortridge, p. 112):

“North Dakota was the second state to become radical. Its Norwegian settlers, accustomed to a more socialistic system than they found in America, responded strongly to feelings of “absentee control and extortion” by the “grain lords” who controlled the transportation, storage, and grading of their wheat crops. Their political vehicle, the Non-Partisan League, assumed power in 1916, after a 10-year period of incubation, and estabilished a state-owned system of grain elevators, banks, and hail insurance, as well as other measures based on the Wisconsin model.”

Outside of the US, I could also point to some Northern European countries that have socialist governments or else strong socialist traditions within their politics. Also, there are the highly successful European Basque with their socialist-run companies.

The odd part isn’t that these conservatives/​right-wingers are merely claiming that socialism doesn’t work but that it has never worked, that it never will work, that it can’t work. When faced with examples to the contrary, they make excuses.

Anyway, what is the point? It’s like saying tribalism doesn’t work after centuries of genocide having wiped out most tribal societies. Yes, many capitalist societies have been militaristic empires or wannabe empires. And, yes, many socialist attempts have been violently wiped out or otherwise socially oppressed. Is the point merely that capitalists are best because they are the most aggressive in pushing their agenda no matter what the cost? If so, this may be capitalism but it ain’t a free market. Why would someone be proud of such ‘success’ and put it forth as something to strive for?

I could make a similar criticism about free markets. Crony capitalism and corporatism have been endlessly successful, at least in oppressing and destroying all alternatives, but free markets have never succeeded where ever they have been tried. The seeming success of free markets always ends up being their doom when they are taken over by monopolists, plutocrats and fascists.

Furthermore, what is this so-called ‘socialism’ that they think has never been successful in all of history? Talking to people making this argument, I often find that they separate social democracy from socialism. But what is left of socialism if you remove all traces of social democracy? To a socialist-leaning liberal like me, social democracy is the very heart of socialism. There is no hope of socialism without social democracy.

Socialism, in most places, includes: public roads, public libraries, firemen/women, police, ambulances, emergency rooms, basic public goods and services such as water plants, public schools, state colleges, city/county/state/federal parks and public lands, coastal waters, waterways such as rivers and streams, the FDA that ensures the safety of food and drugs, the EPA that keeps the air and water clean enough so that pollution won’t kill you, unemployment benefits, disabilty benefits, welfare, medicare, medicaid, on and on and on. We are surrounded by socialism in endless forms.

Another way to put it, socialism is about the commons, where community merges with sense-of-place (to understand the value of the commons, see this article and this video). Caring about the commons means caring about yourself for the reason that the commons are what defines us as a social species and defines each of us as part of a living community: a community of people and a community of environment. Shared land (resources), shared living (communities), and shared governance (democracy) all meet together in the commons (the manifestation of socialism and social democracy).

In terms of countries, one socialist idea (that more anarchistic socialists disagree with) is a centrally planned economy (which is a way of seeing the economy as part of the commons since it is, after all, a public affair that impacts every person, nothing private about it at all… in the way getting  punched in the nose isn’t private). China’s centrally planned economy has been massively successful (not that I agree with the purposes this serves in the same way I don’t agree with the purposes of the former Harmonists, but purely in terms of economic success it can’t be denied). David Harvey has mentioned that the most successful example of a centrally planned economy was the US during WWII.

In the US, one of the greatest (and one of the most disappointing) examples of socialism is the military with its public-minded purpose, collectivist culture and socialist health care. In terms of how much the government (local and federal) operates and manages, the US itself is an example of successful socialism in action (see: my argument defending the efficiency of government). It’s not that the US is entirely or even mostly socialist, but if you took away the socialism from American society it wouldn’t be recognizable as the country we now know. I realize many are trying to do this by privatizing everything. That would be sad considering that privatizing usually just leads to a dysfunctional socialism where the profits are privatized while the costs continue to be socialized (see: The Conservative Nanny State by Dean Baker).

Like most countries around the world, the US has a mixed economy. It isn’t entirely unregulated capitalism nor is it entirely socialist. It has elements of both. This balance is far from perfect, but we should at least be honest and well-informed enough to acknowledge it for what it is.

Conclusion

I thought I should add some concluding thoughts to clarify where I’m coming from.

I consider myself a liberal, but for the sake of precision it would probably be best to call me a left-liberal. I like the general label of ‘liberal’. The problem is that this label has become almost meaningless. To the right-winger, liberal means left-winger, specifically of the Commie variety. To a left-winger, liberals seem like at best moderates (i.e., centrists defending the status quo of power and wealth) and at worst watered down conservatives (the difference between neoconservatives and neoliberals merely being that of emphasis).

In terms of the above commentary, I promote socialism in a social democracy sense. So, you could call me a sewer socialist or municpial socialist or you could call me a Fabian. I’m not a radical, but I am a strident defender of democracy. My sense of democracy is social democracy. My relationship to socialism is the following. I think social democracy is a stepping stone to socialism in that even those who are afraid of socialism can often accept social democracy. Social democracy is the baby pool of socialism, less scary for those still developing socialist swimming skills. I understand socialism in terms of democracy for I don’t think socialism is possible without democracy. I’m not even sure anti-democratic statism as found in some so-called communist countries can fairly and reasonably be called socialism or no more socialist than any other form of statist government.

I’m not a radical. I believe in reform and I’m not entirely against revolution when all alternatives have become impossible. My lack of radicalism probably is more of a personality trait. I’m not an aggressive person. I like the idea of gradual change and I like the ideal of cooperation/compromise. I don’t want to live in a world of conflict and fighting. Even if a revolution was going on, it might still take a lot to cause me to become a revolutionary.

Even though I could be considered a left-liberal, I can’t quite bring myself to embrace left-wing politics in their entirety. It’s more the attitude of most left-wingers that I can’t embrace. Likewise, I’m sure most left-wingers don’t wish to embrace me. Most socialists probably wouldn’t consider me a fellow traveler. So, my analysis of socialism may not (with heavy emphasis on the ‘not’) be supported by more radical socialists who are the movers and shakers in the socialist movement. I’m more or less an ordinary guy who simply wants to live in a fair and equal society. Even so, I try to keep my knowledge of the world above average when possible. The fact that my moderate liberalism seems radical from a mainstream perspective is no fault of my own.

Addendum

I was editing this post in order to clean it up a bit and clarify a few things in my writing. As I did this, I was noting my frustration. I was wondering about its source.

In my analysis, I used my dad’s conservatism so as to have something off of which I could bounce my own liberalism. I’m more of a socialist than my dad, but that isn’t saying much. My knowledge of socialism is shaky in that I’ve never done a careful survey of the history of socialism, but I have done some research on it and I have thought about it quite a bit. So, my frustration, instead of being about my limited knowledge, is about how my limited knowledge makes me even more aware of how limited is the knowledge of the average American. It would be nice if everyone, myself included, had a better working knowledge of socialism.

I get into discussions about socialism and it isn’t always clear to me what the word ‘socialism’ means to other people. What often is clear to me is that the way right-wingers and conservatives define socialism isn’t the way socialists define socialism and yet those on the right are perfectly fine with projecting their preconceptions about socialism onto socialists, thus pretending socialists actually believe in the caricature of socialism that anti-socialists portray. If those on the right aren’t criticizing the socialism proposed by socialists, then whose socialism are they criticizing? The only answer I can come up is that those on the right are simply criticizing their own version of socialism. That is fine as far as it goes. I’m willing to bet pretty much all socialists would join in criticizing the right’s distorted and biased dystopian vision of socialism.

Still, I don’t know that this gets at the core of my frustration. I could name many words and ideas that are misunderstood by various people. Those on the right certaintly could do the same thing. Arguments over what something means are dime a dozen. Maybe my frustration is more basic in that the difficulty of communication can feel like a tiring if not impassible barrier. I would be unfair if I blamed this problem entirely on the right. Communication is a two-way street.

So, what is the problem with communicating here? In essence, socialism seems like a rather simple idea. It just means people working together using shared resources toward a shared goal. From my perspective, those on the right aren’t able or willing to see this simple idea and what to make it into something big and scary. Am I wrong about that? What critcisisms of socialism from the right are fair and useful? Everyone knows Stalinism is bad. Even most socialists these days loudly and openly criticize oppressive statism even when it uses the rhetoric of the left-wing.

The real disagreement is elsewhere, but I can’t quite put my finger on it. As far as I can tell: Anything the right doesn’t like about the government is socialism. And anything the right does like about government isn’t socialism. Am I being unfair in that assessment? Am I missing something here? Do I fundamentally not grasp what those on the right are trying to communicate in their criticisms?

I’m trying to understand, but apparently I’m failing.

The End of Libertarianism – Jacob Weisberg

The End of Libertarianism
By Jacob Weisberg

Illustration by Robert Neubecker. Click image to expand.“A source of mild entertainment amid the financial carnage has been watching libertarians scurrying to explain how the global financial crisis is the result of too much government intervention rather than too little. One line of argument casts as villain the Community Reinvestment Act, which prevents banks from “redlining” minority neighborhoods as not creditworthy.Another theory blames Fannie Mae and Freddie Mac for causing the trouble by subsidizing and securitizing mortgages with an implicit government guarantee. An alternative thesis is that past bailouts encouraged investors to behave recklessly in anticipation of a taxpayer rescue.

“There are rebuttals to these claims and rejoinders to the rebuttals. But to summarize, the libertarian apologetics fall wildly short of providing any convincing explanation for what went wrong. The argument as a whole is reminiscent of wearying dorm-room debates that took place circa 1989 about whether the fall of the Soviet bloc demonstrated the failure of communism. Academic Marxists were never going to be convinced that anything that happened in the real world could invalidate their belief system. Utopians of the right, libertarians are just as convinced that their ideas have yet to be tried, and that they would work beautifully if we could only just have a do-over of human history. Like all true ideologues, they find a way to interpret mounting evidence of error as proof that they were right all along.

“To which the rest of us can only respond, Haven’t you people done enough harm already?We have narrowly avoided a global depression and are mercifully pointed toward merely the worst recession in a long while. This is thanks to a global economic meltdown made possible by libertarian ideas. I don’t have much patience with the notion that trying to figure out how we got into this mess is somehow unacceptably vicious and pointless—Sarah Palin’s view of global warming. As with any failure, inquest is central to improvement. And any competent forensic work has to put the libertarian theory of self-regulating financial markets at the scene of the crime.”

Ron Paul’s 19th Century Fantasy

I was just listening to a speech Ron Paul gave at a Tea Party convention. Some commenters noted it was the first full Ron Paul speech they’d seen from a major news source. Guess what the source is? RT America which is a Russian network that is partly financed by the Russian government.

It’s rather ironic because Americans like to think of themselves as being independent-minded, but you have to turn to a Russian network to get a diversity of alternative American voices. RT America has as guests such people as Thom Hartmann (originally from Air America radio), Cenk Uygur (started the most successful internet news show), and Alex Jones (of conspiracy theorist fame).

I like Ron Paul if only for his sincerity which is a rare attribute for a professional politician. Also, he is far from being stupid… but… His overall repetitive message of big government being the problem comes off as simplistically naive. No one could make such an argument if they knew history and were able to see outside of their own ideological reality tunnel.

I don’t blame Ron Paul per se. He is a businessman and so sees everything through the model of business. His idol is the free market. He honestly believes in it.

People like Ron Paul seem to argue that a free market would solve any problem. The simplest criticism is that a free market has never existed. There are always various people and groups controlling markets. The fundamental concept behind the free market argument is that businessmen have practical knowledge and so are economically smarter than politicians and regulators, smarter than academic professors and researchers. It is claimed that anyone other than businessmen will just mess up everything.

The context of this argument is the idiosyncratic history of America. The US early on was fairly isolated from other powerful countries and many of the communities on the continent were isolated by vast land, but it’s obvious the country wouldn’t remain that way. They didn’t need much of a military or navy. The powerful countries were busy fighting each other. The only reason America won its independence was because Britain was busy elsewhere. The reason the US didn’t need a strong navy was because the French navy defended the waters used by American trade ships. The American sense of exceptionalism arose from this isolation because there was no powerful countries nearby who either were able or willing to threaten us. All the wars we fought early on were minor and easily won.

So, unlike other countries, US markets developed with little regulation. The Boston Tea Party was partly motivated by fighting the collusion between big government and big business. The Founding Fathers intentionally wanted a disconnection between businesses and state just as they wanted between church and state. As far as I know, this was the first large-scale experiment ever to try to develop a free market. This was possible because America as a country grew as industrialization was beginning. The hope was that free markets would regulate themselves through competition and the innovativeness of early industrialization made people optimistic, but this experiment was largely a failure during the Gilded Age… or at least a failure in terms of a democratic society, especially as understood today.

Before the Progressive Era regulation, big business was powerful which led it to be oppressive and sometimes outright violent. They didn’t call them Robber Barons for nothing. Companies back then didn’t have to deal with government interference. There was no regulation and no safety inspections. Some companies even owned entire towns which they ran like anarcho-capitalist fiefdoms. They owned the stores, the hospitals, the schools, the housing. They owned everything. And, of course, workers had very little control. These company towns was nearly indentured servitude because workers could never make enough money to ever save and cost of everything was high.

https://benjamindavidsteele.wordpress.com/2010/02/12/anarcho-capitalism-stateless-society/

Ok, but what about vertical oligopolies and monopolies, as MettaliarYanto says in his response? Also, what prevents a “monopoly of force in a given area” your definition of the state?

“[I]f one starts a private town, on land whose acquisition did not and does not violate the Lockean proviso [of non-aggression], persons who chose to move there or later remain there would have no right to a say in how the town was run, unless it was granted to them by the decision procedures for the town which the owner had established.” [Robert Nozick, Anarchy, State and Utopia, p. 270] Is that not such a monopoly, i.e. state, if private?
Is that not such a monopoly, i.e. state, if private? Contracts that employees signed could have provisions forbidding strikes, organizing, etc., agreeing to pay for police, courts, doctors, stores and militaries hired by the employer.
Company towns had every feature which anarcho-capitalists propose, private police, courts, military, etc. Company rules were law. Buying at the company store was required by their contracts. If they sturck or formed a union, they were fired and evicted instantly. The contracts were entered voluntarily, in your sense. Since rights can be waived, exactly what stops this? The British East India Co. was its own state, ruling for centuries. Same with King Leopold’s Congo, run by his corporation.
“Each mining camp was a feudal dominion, with the company acting as lord and master. Every camp had a marshal, a law enforcement officer paid by the company. The ‘laws’ were the company’s rules. Curfews were imposed, ‘suspicious’ strangers were not allowed to visit the homes, the company store had a monopoly on goods sold in the camp.
The doctor was a company doctor, the schoolteachers hired by the company . . . Political power in Colorado rested in the hands of those who held economic power. This meant that the authority of Colorado Fuel & Iron and other mine operators was virtually supreme . . . Company officials were appointed as election judges. Company-dominated coroners and judges prevented injured employees from collecting damages.” [The Colorado Coal Strike, 1913-14, pp. 9-11]

Working conditions were unhealthy and dangerous. It was common for workers to be become sick, to be maimed or killed. If their health became bad enough or they were maimed badly enough, the person lost their job and probably wouldn’t be able to find another. There was no unemployment or disability pay. If the person died, their family lost it’s main source of income and kids would grow up without a parent. Also, many kids went to work early on and so didn’t get education. Because kids were small, they were used in mines. Because kids were cheap labor, they were used in factories. Many kids also were maimed and killed.

Work was hard and brutal. People were forced to work long hours without breaks, without overtime pay, and without any days off. People were forced to take any work no matter how dangerous because there was no welfare. If you lost your job, you became homeless and possibly starved to death. There were more people looking for work than there were jobs. Life was cheap. Basically, businesses had the upperhand. If you were fired for no reason or were cheated out of pay, you had no recourse. There was practically no regulation and no worker protection. There wasn’t yet any established and powerful unions to represent workers. When workers organized, they were fired and blacklisted. When workers attempted to form unions, union leaders were threatened and killed. When workers protested, private police or goons were used to terrorize and brutalize workers.

Despite all of this, so many people were poor and desperate that they confronted this private power even when it meant mass slaughter. Most of these working class people didn’t have guns or any kind of weapons. These people were so poor they owned very little. All they had was their own life to put on the line.

There was no legal guarantee of workers rights. The government mostly left companies to sort out their own problems. When the government did become involved, it was mostly local government and not the Federal government. In these cases, the government usually sided with the companies. But, in some cases, the Federal government intervened and enforced peace. Workers had more to fear from local governments because local politicians were more closely connected with local business owners.

For example:

This is similar to the civil rights movement. It was local (i.e., small) government that was acting oppressively and unconsitutionally. And it was the federal government that stepped in to help the average citizen. If businesses and local governments acted morally, the federal government would never have had to take drastic measures. The Federal government was responding to a real problem. People like Ron Paul idolize both free markets and small government, but it was the failure of both that caused people big government to defend their rights and lives.

The other thing these capitalist worshippers fail to understand is that, during the Wild West free market of early industrialization, many businessmen weren’t opposed to government just as long as it served their purposes. Bribery and corruption was common. The so-called free market was rife with cronyism. In the early 20th century, many businessmen supported and did business with fascist states around the world. There was even a planned fascist coup of the US which was linked to some businessmen.

If you want to look for the earliest defenders of consitutional rights and civil rights, you wouldn’t look to big businesses. There were, however, some collectivist communities like the Shakers that operated their own businesses and did so successfully. And there were the Wobblies which was one of the early workers movements. Neither of these was anti-capitalist by any means, but they were against the so-called free market that served corrupt power and oppressed the citizenry. Both accepted women and men, blacks and whites as equals in their organizations. The Shakers and Wobblies were some of the only places at the time where women and blacks could have their voices heard and could hold positions of power.

This was a time when blacks and women didn’t have the right to vote and couldn’t hold political office. Even poor white men had very little power. Industrialization was built on an ownership class with the entire working class treated like secondhand citizens. This was also the era of the genocide and ethnic cleansing targeted at the Native Americans. This is the era of the free market that so many worship as being as being an era of freedom, but the supposed freedom in reality only applied to rich white men. Yes, the rich white men were free from government imposition and free to force their will on everyone else.

http://en.wikipedia.org/wiki/Pinkerton_National_Detective_Agency

The Pinkerton National Detective Agency, usually shortened to the Pinkertons, was a private U.S. security guard and detective agency established by Allan Pinkerton in 1850. Pinkerton became famous when he claimed to have foiled aplot to assassinate president-elect Abraham Lincoln, who later hired Pinkerton agents for his personal security during the Civil War.[citation needed] Pinkerton’s agents performed services ranging from security guarding to private military contracting work. At its height, the Pinkerton National Detective Agency employed more agents than there were members of the standing army of the United States of America, causing the state of Ohio to outlaw the agency due to fears it could be hired as a private army or militia.[citation needed] Pinkerton was the largest private law enforcement organization in the world at the height of its power.[1]

During the labor unrest of the late 19th century, businessmen hired Pinkerton agents to infiltrate unions, and as guards to keep strikers and suspected unionists out of factories. The best known such confrontation was the Homestead Strikeof 1892, in which Pinkerton agents were called in to enforce the strikebreaking measures of Henry Clay Frick, acting on behalf of Andrew Carnegie, who was abroad; the ensuing conflicts between Pinkerton agents and striking workers led to several deaths on both sides. The Pinkertons were also used as guards in coal, iron, and lumber disputes in IllinoisMichiganNew York, and Pennsylvania, as well as the Great Railroad Strike of 1877.

The Pinkertons were essentially a privatized force that combined detective agency, mercenaries, and the types of activities now associated with the FBI. Big business at it’s height was potentially more powerful than the Federal government.

During the Civil War, many blacks and poor whites knew a kind of power they never had before. Their was this whole new class of people who were well-trained and often well-armed. The Pinkertons couldn’t just pick on the poor and weak anymore. There is a reason that it was the outlaws and not the Pinkerton agents who were the cultural heroes back then. There was so much corruption and oppression that people were inspired by outlaws who stood up to power and fought back.

I’ve written about this topic a number of times:

https://benjamindavidsteele.wordpress.com/2010/02/13/libertarian-nightmare/

https://benjamindavidsteele.wordpress.com/2010/08/29/anarcho-capitalism-will-not-work/

In the most recent post, I expressed my frustration:

https://benjamindavidsteele.wordpress.com/2010/10/11/anarchism-vs-progressivism/

I feel frustrated when someone offers up something like the free market. The striving for freedom won’t save us. The problem is that we aren’t free. We are embedded and enmeshed in, intertwined with and integral to the entire world. We aren’t free of anything. The very idea of freedom is one of those many abstractions that keeps us trapped in the Iron Cage of rationality, the bureaucratization of humanity… costs and benefits, ideologies and systems, improvement and progress. It’s not that any given idea is wrong. Free markets, for example, sound wonderful. What frustrates me is the mindset that constantly creates more ideas to be forced on humanity, on reality, on all the world around us. We think that if we just find the right idea or principle, the right method or framework then the the problems will be solved… but the fundamental problems of civilization are never solved… or at least not so far.

Why I feel frustrated is because of people like Ron Paul. He isn’t a radical conspiracy theorist ranting about the government nor is an uneducated ideologue. Someone like him should know about the history of the US. So, why does he act like he is ignorant of this history or considers it so irrelevant that it’s not worth mentioning? I’m not arguing that there is no problems with the unions and regulations created during the Progressive Era, but it would be morally irresponsible to pretend that vast problems didn’t exist prior to the 20th century big government. Americans gave free markets a chance and free markets failed. Why would any rational person (besides rich white males) want to return to the social and economic conditions of the 19th century?

– – –

* As a note, I should point out that there never actually was a free market during the Gilded Age. For example, the railroads were built with government subsidies and land grants. Collusion between politicians and businessmen has always existed since the beginning of civilization. It happens on the local level as much as it happens on the national level.

Also, I’m not arguing that all 19th century businessmen were corrupt. But I am arguing that most if not all of the wealthiest tycoons became successful at least partly through less than moral tactics. There were other businessmen who fought against these Robber Barons, but they aren’t the names remembered because they aren’t the businessmen who formed the groundwork for today’s big business. Some would argue that the Robber Barons only became corrupt because they colluded with big government, but this certainly wasn’t progressive big government. The point is that corrupt businessmen will try to corrupt government, big or small.

Anarchism vs Progressivism

I was having a discussion with an anarcho-capitalist who was moderate rather than ideological. It was quite refreshing. Most of the anarcho-capitalists I’ve met have been extremely ideological.

I myself am persuaded by both anarcho-primitivism and progressivism. I think civilization is problematic, but as long as civilization exists I consider it morally optimal to seek the greatest good for the greatest numbers while preventing as many problems as possible. I’m unpersuaded by the idolization of enlightened selfishness and the monetization of human life.

Here is a video this person shared with me to present his anarcho-capitalist view:


Here are two of my responses:

FIRST RESPONSE

He is right about the problems of government building logging roads and selling trees at below market cost. Derrick Jensen discusses that issue. Ownership does increase short-term responsibility. A company will want to ensure its profits are maintained in the near future, but this becomes less certain in terms of decades & completely uncertain in terms of generations.

Also, this video leaves out some important issues.

Big businesses want big governments. Big businesses don’t want anarchistic markets that they can’t control or reliably predict and they don’t want anarchistic societies with populations that aren’t controlled where protesters can shut down factories and an unrestrained population can start revolutions.

People who advocate ownership rights in terms of capitalism too often ignore the non-capitalist ownership rights of indigenous people. Big business wants big government to deal with unruly indigenous people who think they have a right to the land their people have lived on for centuries. Big businesses are too often fine with colluding with the genocide or displacement of the indigenous. Sometimes they don’t even need big govt to do this since there are examples of big business hiring mercenaries or local goons to kill or scare away the indigenous.

https://benjamindavidsteele.wordpress.com/2010/09/07/does-poverty-rise-as-biodiversity-falls-pavan-sukhdev/

Anarcho-capitalism might benefit small businesses, but it would never benefit big businesses. Big businesses have immense power. If big businesses didn’t like big govt, they could easily use their power to decrease the size of govt. But big business types such as the Bush family want the big govt. The Bush family is even personal friends with Saudi royal family which rules one of the most oppressive big governments in the world. There is no incentive for a big business owner to help create a truly free market where they have to fairly compete. If competition existed, then businesses would be forced to decrease in size and wealth would no longer be concentrated. These big business types like having their wealth and power. They would never willingly give it up just for some noble ideals of a free market.

SECOND RESPONSE

We seem to both agree that the extreme examples of corruption and oppression as seen with concentrated power isn’t human nature. However, I take it a step further in saying all modern civilization is contradictory to human nature.

Maybe I’m less critical of statism and progressivism simply because I’m equally critical of all modern systems of social, political and economic organization. My cynicism makes me have lower standards and more moderate expectations. I’m more accepting of the failings of our society because I just assume that one kind of failure or another is inevitable with civilization as we know it. Or maybe, as someone who feels like a failure at life, I feel it would be hypocritical to be too judgmental of the failure of others. I have a strong sense of sympathy for human imperfection.

Anyway, I had some thoughts that I wondered how you would respond to.

Not all costs and benefits can be monetized, but capitalism (whether free market or not) almost entirely by design excludes anything that can’t be monetized. This is less of a problem with small communities. Hunter-gatherer tribes, for instance, were more widely spread apart so the actions of one community were less likely to impact other tribes. Similarly, early small agricultural communities caused less large-scale problems. But in todays world of industrialization and globalism, impacts are non-local and the human mind isn’t evolved to understand or care about non-local impacts or the strangers elsewhere impacted. I don’t see how a free market can solve this problem inherent to the limits of human nature.

Some costs and benefits are collective such as fire prevention. A private for-profit company couldn’t solve this problem nor could you get everyone to voluntarily agree to a single solution. A collective solution has to be forced on all because the dangers and costs of fires, especially wildfires, impact everyone in a community. A fire can spread from house to house and from community to community. Fires don’t know property boundaries. If not for government, who would bear the costs and implement collective action to do control burns and watch over vast areas of wilderness to spot fires before they spread?

Also, what about long-term costs and benefits such as with local ecosystems? And what about the extremely non-local costs and benefits of the entire biosphere? Pollution doesn’t know property boundaries or national boundaries. We all collectively share the same water and air and we share even many of the same food sources such as seafood. The challenge with environmental costs and benefits is that they’re usually only seen after decades or centuries. A problem prevented may have no short term benefits, but if not prevented it may have massive long-term costs.

As an example, the President Carter helped create the EPA. The reason it was created was because there was little monetary incentive for companies to solve the problems of pollution and environmental destruction. Much of the costs were invisible to everyday experience. Even scientists didn’t know all the potential problems with pollution, but they knew enough that prevention was the wise course despite there being no immediate and apparent benefits. One of the pollutants decreased was lead and the benefits to this weren’t seen for decades. It was only until recent research that scientists could see that the decrease of lead helped to vastly decrease the violent crime rate. No one could’ve predicted this, but problems like this need to be prevented for the very reason we don’t understand them. It’s the precautionary principle.

This issue is complicated with the inherent conflict between transnational corporations and local communities. What monetarily benefits a company such as mining often doesn’t benefit the local community. And the costs of the companies actions may not be seen until years or decades after the company has moved it’s business elsewhere or maybe even has gone out of business. Who is responsible for those costs?

When indigenous people experiences diseases introduced by foreigners… when the water supply is polluted or the wildlife scared away causing the indigenous to be no longer able to sustain their traditional lifestyle… when industrialism leads to poor health because of pollution and malnutrition, who is responsible for the costs to individuals and communities? How does a free market monetize the costs and benefits that are collective and long-term?
I’m reminded of an example that Derrick Jensen used. He was describing this particular community that was established before there was a large federal government and when people mostly solved their own problems. The first settlers killed and scared off the Native Americans living there. The people who live there and own the land are the descendants of the people who stole the land originally. The same Native Americans still live in the area among the people who still possess their stolen land, the people who are descendants of those who killed their ancestors and destroyed their way of life. The creation of such an ownership class is inherently built upon violence and sustained through oppression. All of that violence and oppression happened before big govt.

This story has been repeated a million times around the world. Right now as I write there are indigenous people being exploited and oppressed often by big business or sometimes by small business owners that settled on the homeland of the indigenous. Early settles used the principle of property rights to steal land because they believed/rationalized that he who makes use of the land has the right to the land. This was based on the concept that land in it’s natural state is worthless. This bias continues to this day. We are only beginning to understand the value of health ecosystems to ensuring water and air is clean, things we normally take for granted without considering the costs and benefits.

All these problems I speak of have their origins at the beginning of civilization. The problems of pollution and environmental destruction, malnutrition and disease became apparent the moment people left behind the hunter-gatherer lifestyle and formed permanent villages which became city-states which became states which became empires which became our present industrialized globalism. Indigenous people have perfectly healthy teeth until they are civilized and start eating a grain and sugar based diet. Capitalism or statism then offers the solution of dentistry, but capitalism and statism are part of the social condition that caused the problem in the first place. That relates to wildfires as well. We have to control nature in order to build stable societies and economies, but that control leads wildfires to become larger than they would ever have become naturally. So, once again, businesses or governments have to create solutions for the problem created by the entire system. All of civilization is the solving of problems that civilization created and every solution creates further problems.

So, the fundamental problem is civilization itself. The human species and human communities, ecosystems and the biosphere didn’t evolve under the conditions of civilization. Civilization has only existed for a few thousand years. Civilization has developed faster than evolution can happen. This has led to the extinction of massive numbers of species and the destruction of massive numbers of cultures.

The further problem is that civilization has created massive concentrated populations which are in themselves unnatural and which preclude natural solutions. We humans are a clever species, but it’s our cleverness that gets us into trouble. We like to think of ourselves as rational creatures, but fundamentally we are driven by the same non-rational impulses as any animal. The difference is that no other species has ever had the power to destroy nearly all life on the planet.

I don’t see how free markets or any other human idea can solve all these problems without just causing more problems… as history has proven. As has been said before, when you find yourself in a hole, the first thing you should do is stop digging. But how do we stop? Civilization is built on continual progress or else the whole house of cards might fall down. We collectively as a species have to keep running just to stay in place. Solution? We don’t even understand the problem. We are the problem or are at least inseparable from the problem. Any solution will have to be a complete transformation of how humans operate on a collective level, but such a solution could never be predicted just as we have never been able to predict any of the problems we’ve created. So, all we can do is cross our fingers and hope for the best.

I feel frustrated when someone offers up something like the free market. The striving for freedom won’t save us. The problem is that we aren’t free. We are embedded and enmeshed in, intertwined with and integral to the entire world. We aren’t free of anything. The very idea of freedom is one of those many abstractions that keeps us trapped in the Iron Cage of rationality, the bureaucratization of humanity… costs and benefits, ideologies and systems, improvement and progress. It’s not that any given idea is wrong. Free markets, for example, sound wonderful. What frustrates me is the mindset that constantly creates more ideas to be forced on humanity, on reality, on all the world around us. We think that if we just find the right idea or principle, the right method or framework then the the problems will be solved… but the fundamental problems of civilization are never solved… or at least not so far.

Maybe you don’t share my frustration. Maybe you have more hope in solutions despite the all the failings of history. I realize most people don’t see the world as I do. I just don’t see anything changing until something forces humans to change. I’m not filled with hope.

Anarcho-Capitalism Will NOT Work

Here is a very good analysis and criticism of anarcho-capitalism. I’ve made pretty much the exact same arguments, but this video offers precise real world examples to back up these arguments.

Info from below the video on YouTube:

I read this article in the original magazine but I see that you have to pay online. Fucking capitalist!!! Sorry.
http://www.jstor.org/stable/4017690

Somali Business Council
http://www.banadir.com/somali.htm.shtml
See how this meeting took place in 2003 before the reEMERGENCE of the state.

– – –

Since posting the above, someone linked here in an anarcho-capitalist forum:

http://freedomainradio.com/BOARD/forums/t/27229.aspx

The opening comment asked about the issue of what if corporations want a state government. The whole argument of anarcho-capitalism rests on the belief that state governments corrupt capitalism and that corporations as we know them wouldn’t exist without state governments.

I think this is a moot point in that corporations and state governments develop together. Both are simply related forms of centralized power and hierarchical organization. The only type of capitalism that is even close to anarchism is bartering which is only found (as an economic system) in pre-industrial tribal societies. However, what made those pre-industrial tribal societies work was two factors:

1) They didn’t have to compete with industrialized nation states.
2) They were traditional communities probably with traditional theocratic political systems.

These societies wouldn’t fit the utopian vision of a modern anarcho-capitalist who wants to implement the Enlightenment ideals of classical liberalism. These tribal societies are egalitarian to some extent for the simple fact they were small close-knit communities and so they could operate according to direct democracy or community councils.

My point is that we moderns wouldn’t recognize these societies as being capitalist in any aspect. And, for damn sure, a modern corporation or anarcho-capitalist DRO couldn’t be run according to the traditional theocracy of a pre-industrial tribal society. Modern capitalism goes hand in hand with modern statism. It’s just a fact. I realize that an-caps would prefer it not to be so, but it doesn’t change the facts.

In the forum thread, the first response was of course a Stefan Molyneux devotee telling the person to read Molyneux’s holy books and all would be revealed. The person who started the thread said the following:

I’ve listened to it in audiobook when I first started getting into stateless capitalism. i should check it out again. But i don’t remember him covering the subject of business actually WANTING a governement.

I’m not talking about DRO’s becoming governments. That is highly improbable for many reasons that have been explained countless times.

I remember stef saying that once violence is out of the equations, life will work “however the hell people want them to work”.

Now if big business “wants it to work” with a government that they set up. What’s preventing them? DROs?

I really don’t see why it’s improbable that a DRO might become a government other than the fact that a society based on DROs is itself highly improbable (that is assuming the DROs lived up to anarcho-capitalist ideals of non-aggression). But, ignoring that, this commenter brings up the same point again which no one in the thread has yet answered. What if states don’t force themselves on corporations and instead corporations choose to create states?

This is sort of like the conundrum of a democratic country like Germany leading to an un-democratic leader like Hitler. What if people freely want to give up their freedom? Similarly, what if corporations freely want to givt up some of their freedom for the stability and security of a state? What if a free market doesn’t actually benefit big businesses? Why would big businesses support anarcho-capitalism if it decreased their profit? Also, in landlord anarcho-capitalism, what if the landless peasants decided to end their contracts and take the land for themselves or create a new government? Most governments that exist were once created or supported by the masses. If the masses rose up, how would the anarcho-capitalist feudal landlord non-aggressively maintain his power and property?

One other commenter countered such criticisms with the following:

the examples and theory have to do with societies that have simply rejected the previous form of government, not by accepting anarchy for the NAP.  This is why the business leaders that remain are still reaching for the gun.

Morality is the reason for Anarcho-Capitalism, not utility.  As Stef and the Mises and Libertarians try to point out; the moral solution is also the most efficient solution as well.

Violence is not a reason for having a government, it is the reason to not have one.

His first point is that it doesn’t count because the corporations didn’t accept anarchy despite no government keeping them from accepting anarchy. Isn’t that the point of the criticism? Why would a wealthy and powerful corporation ever choose anarchy? He tried to avoid the criticism by somehow arguing real world examples don’t count.

His second point that the moral values are noble even if they contradict reality. That is the same kind of argument a Christians make. Religious fundamentalists argue that teaching abstinence is worthy even though it fails in the preventing of teen sex, teen pregnancy, and teen STDS. Religious fundamentalists argue that making abortions illegal is the morally correct action even though countries with illegalized abortions have higher rates of abortions. The sentiment is that if somehow we could change all of society and culture to fit some specific set of beliefs then the world would be a better place. Sure. Every true believer says that. Every utopian dreamer thinks his vision is worthy. So what? Reality is still reality.

Basically, people like this would prefer to live in a dream without violence than a reality with violence. It sounds nice. The only problem is that dreams don’t feed your belly. Nor do dreams protect your family from threats.

Toward A Truly Free Market w/ Author John Medaille

How can rightwingers (whether libertarians, objectivists, or social conservatives) defend local small businesses like mom & pop stores while simultaneously defending transnational big businesses like Wal-Mart?

It’s interesting that Medaille describes the internal functioning of a monopolistic corporation as being like a socialist state in that they decrease competition & having very controlled planning. Many rightwingers love both big businesses and the military which combined as the military-industrial complex form the largest manifestation of socialism in the US and possibly in the world.

In this interview, Medaille pointed out that a corporate charter originally prohibited political involvement. He also pointed out (as did Thom Hartmann in another video) that the original Boston Tea Party was a protest against a corporation and against a government that was giving tax cuts to the rich. Medaille said something I had never heard before: “Jefferson and Madison both wanted an amendment as part of the bill of rights which prohibited the formation of corporations.” Why don’t we hear conservatives and constitutionalists mention this part of history? And why do most of the people supporting today’s Tea Party movement seem ignorant of the history of the Boston Tea Party? I don’t know if Tea Party supporters are more ignorant than the average American, but you’d think they’d at least be informed about the history of the Boston Tea Party which supposedly is the inspiration of their movement.

All of this reminds me of another issue of concern in the founding and development of American society. The founding fathers idealized a professional political class which would act as a disinterested aristocracy. They hoped that this political class would be disinterested in that they’d be independently wealthy enough so as to not be directly involved in business affairs. They thought it was dangerous for powerful people to be simultaneously involved in both politics and capitalism. They wanted a political class that didn’t favor any group but instead was able to dispassionately make decisions for the good of all.

Hypocritical Critics of Government

Many Libertarians and Tea Party protesters like to claim that taxation is theft. The idea is that the Federal government does nothing to earn that money. It just takes our hard earned cash and then takes credit for redistributing the wealth. So, no value is added. This argument is so weak as to be laughable.

First, of course value is added. The Federal government adds the following values: oversight and regulation; services and goods provided or guaranteed (e.g., public roads, internet, public schools, state universities, utilities, military, police, emergency services, postal service, medicare, medicaid, disability, 40 hr work week, overtime, safe working conditions, child labor laws, abolition of slavery, Constitutional rights and freedoms, jury of your peers, etc); and on and on. Yes, the government redistributes wealth in doing all of this. So?

One response is that, no matter how good the benefits may seem, taxation is still theft.

One argument is that we have no choice in being taxed, we aren’t freely giving to the government. My response is that each of us is as free to leave the country as we are to leave our jobs. In some countries, people aren’t free to just leave, but that isn’t so in the United States. You can seek citizenship or asylum in another country. You can disappear into the wilderness and no IRS agent will track you down in the wilderness.

The other argument is that, even if we are free to give taxes or free to leave this society that is funded by taxes, the government still hasn’t earned the money it redistributes. Just because politicians provide services and goods that keep the public happy, it doesn’t mean politicians have the right to our money in the first place. Why not have a voluntary tax? To be honest, it’s as voluntary as your job. If you don’t pay your taxes, there are legal consequences. If you don’t show up for work, there are consequences as well. Did your employer earn your labor? No. We live in a society where we are forced to work or else be homeless, and the opportunities for self-employment are few and difficult (with most small businesses failing because our capitalist system favors big businesses).

Similar to the politician, what does the owner or CEO of an international corporation do to earn so far beyond the worker who actually makes things in the factory? Nothing tangible, for sure. Also, what does the international corporation do to earn the resources it takes from nature which took thousands or millions of years to form? Nothing. Like the politician, they just took it. Why has it been standard practice for both corporations to swindle land from the indigenous or else terrorize them into leaving? Didn’t the indigenous people earn those natural resources for having lived there for thousands of years?

Why is it that those who criticize taxation tend to do so in defense of capitalism and often even big business? If you think the actions of politicians is unfair, then to be fair you should also consider unfair the actions of business owners, CEOs and upper management. To be honest, it’s the workers who actually make things, who keep the economy going. In the past, prior to capitalism as we now know it, the person who made things was the typically same person who sold it and profited from it.

If government is theft, then capitalism is even greater theft. Politicians make relative little money as politicians, but business owners and CEOs make massive amounts of money. The only reason politicians do the bidding of corporations (i.e., owners and CEOs) is because politicians know they have highly profitable corporate jobs waiting for them (as lobbyists to encourage other politicians to further do the bidding of corporations).

So, there ya go. One can still criticize the government for not being perfectly fair, but if you don’t apply the same criticisms to capitalism you’re a hypocrite. Of course, many (specifically Libertarians) will gladly admit our capitalist system is imperfect and unfair, but they’ll make the unfounded claim that it’s not real capitalism, it’s not a free market. Well, it’s the only capitalism we’ve ever had. Yes, there has been an occasional experiment to implement a different capitalist system, but no such experiment has been implemented on the largescale and the experiments on the smallscale don’t tend to last long. If you’re going to defend capitalism based on an ideal, then it’s hypocritical to criticize those who defend our democratic government based on their own ideals.

I covered all the possibilities I could think of, but no doubt the pro-capitalist/anti-government types would have further arguments about why their idea/ideal is better than the ideas/ideals of everyone else.

Noam Chomsky: An Interview with Barry Pateman

 I always enjoy hearing Chomsky talk on almost any issue. In this interview, Chomsky discusses: anarchism, community, technology, class warfare, wealth transferral, taxation, free market, outsourcing, command economy, totalitarianism, Marxism, neoliberalism, and globalization.