Donate Bitcoin

Donate Paypal


PeakOil is You

PeakOil is You

The Economy must be doing worse than we're told

Discussions about the economic and financial ramifications of PEAK OIL

Re: The Economy must be doing worse than we're told

Postby MrBill » Mon 17 Apr 2006, 06:45:44

$this->bbcode_second_pass_quote('eric_b', 'A')nother topic that starts off well, then ends up in the shitter.

Congratulations tards.


Well, at least it give you a foretaste of how well we will work together post peak oil? ; - )
The organized state is a wonderful invention whereby everyone can live at someone else's expense.
User avatar
MrBill
Expert
Expert
 
Posts: 5630
Joined: Thu 15 Sep 2005, 03:00:00
Location: Eurasia

Re: The Economy must be doing worse than we're told

Postby MyOtherID » Mon 17 Apr 2006, 06:56:31

$this->bbcode_second_pass_quote('jaws', '')$this->bbcode_second_pass_quote('MyOtherID', 'J')aws, your arguments are asinine, so I'll forego the pleasure of duelling with an unarmed opponent. Bye.

It always warms my heart when people attack me instead of trying to refute my arguments because it is the most childish form of concession imaginable and it shows just how little they truly understand about the world.


Listen dumbo, I don't need to argue with your "Economics of Greed 101" theorizing because most civilized countries in the world have already implemented the system I favor. Eventually the US will fall in line, dinosaurs like you notwithstanding.
User avatar
MyOtherID
Lignite
Lignite
 
Posts: 343
Joined: Thu 02 Mar 2006, 04:00:00
Location: Vegas, America's cloaca

Re: The Economy must be doing worse than we're told

Postby CARVER » Mon 17 Apr 2006, 13:25:45

I don't think any of us would like to be told what to do and what not to do. I think we would rather just decide for ourselves. Will we do what we think is best for us? Yes probably. But that does not prevent us from being wrong.

Let's say we would not tax fuel, so we would probably be less inclined to opt for a more fuel efficient vehicle. That way we would use more fuel and so we rush to a period of scarcity of fuel. That scarcity would increase poverty.

We could try to teach people to be more efficient and not waste so much, and show them it is for their own good. I think this would be preferred. However it does not guarantee success, people could ignore it and opt for a wasteful lifestyle.

When they get into trouble because of that we can say: "We told you so!", but that doesn't change the situation. If they can't get what they need, they will probably be inclined to steal it from those who invested/saved more wisely. So the people who made better decisions still suffer from the poor decisions of others. They will need to put in extra effort to protect their property to prevent it from being stolen and damaged by them. That's something we probably want to try to prevent.

There is a reason why we don't allow kids to do all the things that adults are allowed to do. It would most likely give bad results, for them as well as for others. That is something they might not understand (yet). Usually we apply these rules on something that can be easily measured/checked, like age. That is usually a bit inaccurate to decide whether a person is capable of handling certain responsibilities, but to be more accurate it would become more inefficient, more costly to implement. So there is a tradeoff. The result is that some are unnecessarily restrained in their actions, or required to perform additional actions to prove that they are living by the rules.

But who are we to decide to (partially) sacrifice the freedoms of the individual for the benefit of the majority? Basically it is just a majority deciding on the rules. Everyone that breaks the rules will be punished in some way by that majority or its representatives. But isn't this the same as with property rights? Everyone that breaks the rules will be punished in some way by that majority or its representatives. The rules about property rights are forced on someone as well. It's not a law of physics. It's law imposed by man. And it is imposed for a reason, the majority thinks it will give better results for themselves.

So the majority supports a group of representatives (government) and let them get away with theft and the use of force against people, including themselves, up to a point. The government tries to change the behavior of individuals/groups where they deem it necessary.

If all this is done properly then everyone could be better off, allthough you can't say for sure because one does not know exactly what would have happened otherwise. But since power corrupts, it can also go terribly wrong. Any group of people can do whatever they like as long as they get enough support and not too much resistance. A government can't attack people if those people of whom the army or the police consist decide not to do so. Or the citizens could resist. However with a policy of: 'You're either with us, or against us' people might be inclined to join the stronger side. That doesn't only happen with governments, it happens in gangs, mafia, etc. The fear of becoming a victim yourself might stop you from not supporting, or resisting them. They can play into that by making you scared and letting you know that they will go after those who 'betray' them first. If there would not be a government, there might be some other group to take its place of power. Maybe gangs, maybe corporations. All you have to do is convince enough people that it is in their best interest to do what you say. But if you do not treat them well, then at some point they will likely revolt. You could have many small security firms protecting small cities/communities. But those would not be able to defend against much larger organisations with that kind of power.

You need to keep the people happy, because losers become spoilers. If people see others doing much better then they are, they feel like losers, not all people but some are very sensitive to that. And that's why I think you don't want to keep people ignorant, because eventually the ignorant become losers. No system will work well when there are lots of ignorant people going around messing things up without realising it. Whatever system we use, at least teach the people how it works.
User avatar
CARVER
Lignite
Lignite
 
Posts: 396
Joined: Thu 19 May 2005, 03:00:00
Location: Holland

Re: The Economy must be doing worse than we're told

Postby Chaparral » Mon 17 Apr 2006, 13:50:17

Never let human nature get in the way of a good ideology.

As much as I like the world of John Galt I'm afraid Carver has it right WRT keeping everyone happy. So long as jealousy and envy are hardwired into our brains our economic systems will have to take that into account.

The question then becomes one of finding that line that maximizes individual freedom and collective well-being. I envision almost as a socioleconomic derivitave equation. d[sub]individual[/sub]/d[sub]collective[/sub]=d[sub]where we need to be[/sub].
User avatar
Chaparral
Tar Sands
Tar Sands
 
Posts: 767
Joined: Sun 14 Aug 2005, 03:00:00
Location: Dead civilization walking

Re: The Economy must be doing worse than we're told

Postby jaws » Mon 17 Apr 2006, 14:43:29

$this->bbcode_second_pass_quote('MyOtherID', 'L')isten dumbo, I don't need to argue with your "Economics of Greed 101" theorizing because most civilized countries in the world have already implemented the system I favor.

True, but some of them have collapsed from generalized corruption, impoverishment, injustice and brutality. It might not be a good idea to support more of it.
$this->bbcode_second_pass_quote('', 'E')ventually the US will fall in line, dinosaurs like you notwithstanding.
The U.S. is already in line with you. They've been since the 1930's. If it's not working out, it's your fault.
User avatar
jaws
Heavy Crude
Heavy Crude
 
Posts: 1228
Joined: Sun 24 Apr 2005, 03:00:00
Top

Re: The Economy must be doing worse than we're told

Postby jaws » Mon 17 Apr 2006, 14:54:55

$this->bbcode_second_pass_quote('CARVER', '
')But who are we to decide to (partially) sacrifice the freedoms of the individual for the benefit of the majority? Basically it is just a majority deciding on the rules. Everyone that breaks the rules will be punished in some way by that majority or its representatives. But isn't this the same as with property rights? Everyone that breaks the rules will be punished in some way by that majority or its representatives.

The rules about property rights are forced on someone as well. It's not a law of physics. It's law imposed by man. And it is imposed for a reason, the majority thinks it will give better results for themselves.
But the rules about property rights are universal, egalitarian laws. It says that "everyone has the right to own property created by their work free from agression by anyone." Therefore the rule is not imposed by anyone because we are all equal before it. It is like the rule against murder.

A rule that says "the government will force the rich to provide health care to anyone" is imposed on someone because the rich are the victims of the rule instead of beneficiaries. The rule that creates property does not create any victims.
$this->bbcode_second_pass_quote('', 'Y')ou need to keep the people happy, because losers become spoilers. If people see others doing much better then they are, they feel like losers, not all people but some are very sensitive to that.

Revolutions and uprisings are always the outcome of oppression and excessive state aggression that result in impoverishment. The more we reduce these aggressions and allow people to be free, the safer we will be from revolutions. The wealthier the people will be, the more comfortable and happy they will be. It doesn't matter if they see someone making a billion dollars a year as long as they are free to comfortably provide for themselves and their families. Only when they are denied this freedom does revolution become a possibility.

Freedom works. How many violent revolutions has Switzerland had?
User avatar
jaws
Heavy Crude
Heavy Crude
 
Posts: 1228
Joined: Sun 24 Apr 2005, 03:00:00
Top

Re: The Economy must be doing worse than we're told

Postby MyOtherID » Mon 17 Apr 2006, 15:58:53

$this->bbcode_second_pass_quote('jaws', 'H')ow many violent revolutions has Switzerland had?


Why do I bother? Switzerland’s universal-coverage health care system consumes a larger fraction of gross domestic product than most other countries (source: JAMA). Per capita, it is the second most expensive health system in the world, after the United States. That's because it relies on ~100 insurance companies and a model similar in many ways to the US model, which has been proven again and again to be extremely inefficient and wasteful.

And BTW, Swiss has only had peace for about 150 years. Before that it was always at war internally. Wiki on Switzerland: "The violent conflict between both sides was never-ending" (the conflicts were mainly between "Republicans" who were in favour of a centralised government, and "Federalists", as well as Protestants and Catholics.)
User avatar
MyOtherID
Lignite
Lignite
 
Posts: 343
Joined: Thu 02 Mar 2006, 04:00:00
Location: Vegas, America's cloaca
Top

Re: The Economy must be doing worse than we're told

Postby jaws » Mon 17 Apr 2006, 16:26:19

$this->bbcode_second_pass_quote('MyOtherID', 'A')nd BTW, Swiss has only had peace for about 150 years. Before that it was always at war internally. Wiki on Switzerland: "The violent conflict between both sides was never-ending" (the conflicts were mainly between "Republicans" who were in favour of a centralised government, and "Federalists", as well as Protestants and Catholics.)

That's a religious conflict, not a revolution. You're right about one thing, why do you bother?
User avatar
jaws
Heavy Crude
Heavy Crude
 
Posts: 1228
Joined: Sun 24 Apr 2005, 03:00:00
Top

Re: The Economy must be doing worse than we're told

Postby MyOtherID » Mon 17 Apr 2006, 16:36:50

That's right, Jaws, don't defend the US health system, because you know you'd lose on that one. :-D

Hey, with a good health system, maybe you could've gotten your teeth fixed properly, huh? :razz:
User avatar
MyOtherID
Lignite
Lignite
 
Posts: 343
Joined: Thu 02 Mar 2006, 04:00:00
Location: Vegas, America's cloaca

Re: The Economy must be doing worse than we're told

Postby jaws » Mon 17 Apr 2006, 17:04:34

I've never defended the U.S. health system because it's completely corrupt and completely unjust. It has been rigged by the government to make it unnaffordable to the poor. In fact I have attacked it and pointed this out in just this thread, as well as others. For some reason you have ignored it.

The U.S. is not a free country. Using the U.S. as some kind of symbol for the free market just makes you look like a fool.
User avatar
jaws
Heavy Crude
Heavy Crude
 
Posts: 1228
Joined: Sun 24 Apr 2005, 03:00:00

Re: The Economy must be doing worse than we're told

Postby MyOtherID » Mon 17 Apr 2006, 17:18:24

I see. So in conclusion you're an impractical idealist with lots of esoteric and unworkable notions of "freedom" and how it will solve all our ills. How quaint! Enjoy your mental masturbation then. [smilie=ky.gif]
User avatar
MyOtherID
Lignite
Lignite
 
Posts: 343
Joined: Thu 02 Mar 2006, 04:00:00
Location: Vegas, America's cloaca

Re: The Economy must be doing worse than we're told

Postby jaws » Mon 17 Apr 2006, 17:22:13

I may be an idealist, but at least I stand up for the little guy.
User avatar
jaws
Heavy Crude
Heavy Crude
 
Posts: 1228
Joined: Sun 24 Apr 2005, 03:00:00

Re: The Economy must be doing worse than we're told

Postby rogerhb » Mon 17 Apr 2006, 17:24:39

$this->bbcode_second_pass_quote('jaws', 'B')ut the rules about property rights are universal, egalitarian laws.


The closest I can find this in the "ten commandments" is "don't covert thy neighbours ass" and "thou shalt not steal".

However that did not stop the Isrealites warring, whoring, pillaging and enslaving.
Last edited by rogerhb on Mon 17 Apr 2006, 22:53:18, edited 1 time in total.
"Complex problems have simple, easy to understand, wrong answers." - Henry Louis Mencken
User avatar
rogerhb
Light Sweet Crude
Light Sweet Crude
 
Posts: 4727
Joined: Mon 06 Sep 2004, 03:00:00
Location: Smalltown New Zealand
Top

Re: The Economy must be doing worse than we're told

Postby Odin » Mon 17 Apr 2006, 22:33:35

Jaws, you are using the definition of totalitarian, Marxist-Leninist, centrally planned socialism for all branches of socialism (I am a non-Marxist socialist who has no problem with private property or the Market), in other words, you are regugitating right-wing propaganda and ignorant layman misconceptions about socialism. the only requirements for socialism is that the means of production, except for small "Ma & Pa" businesses, be in the hands of employees (co-ops) and/or the government; and that there are no private investors. Some forms of socialism are perfectly compatible with the market and with property rights.

The free market-worshiping Neo-classicists like Jaws are just as loony as the Marxists IMO, both are like religious fundimentalists. There is no such thing as a truely free market, such an institution would self-distruct, you would end up with a market regulated by Big Business for Big Business's benefit, as opposed to regulation by the government for the benefit of consumers and labor.
"Peak oil is not an energy crisis. It is a liquid fuel crisis." -Starvid

The 2nd Law of Thermodynamics only applies in a closed system; Earth is NOT a closed system.
User avatar
Odin
Peat
Peat
 
Posts: 89
Joined: Sat 28 Jan 2006, 04:00:00
Location: Moorhead, MN, USA

Re: The Economy must be doing worse than we're told

Postby kabu » Mon 17 Apr 2006, 23:10:17

Fever’s over! Ruined ¾ of my holiday!

Eric, spare us. This is but a thread on a message board. It’s not like we hijacked a compilation of essays that were on the verge of being published. You’re being too sentimental.

Speaking of being sentimental, Jaws, my thanks to you for catalyzing the bettering of my understanding of socialism and capitalism, forcing me to flesh out what once contently remained superficial, at best. When you asked ID what real socialism is, I admit, I felt the need to google it- now I feel like studying economics. Formally, even… sort of… well, not really ($$$).

Anyhow, because socialism and capitalism are intertwined in virtually every society, it’s negligent to causally blame any form of depravation on one system or another, which is why I protested to your causally blaming Africa’s problems all on socialism (food drops, although, seem socialist, and they’re ruinous because they promote mere-dependency rather than self-sufficiency or even interdependency). That’s all I meant to say, but now we’re debating the merits of pure socialisms vs. pure capitalism, Eric’s lost his cool, Bill’s loosing hope, and now the moderates are intervening (and I agree with them too, but still wish to continue this debate; a good debate is one of the few things that hold my attention- it’s really the only way I can effectively learn about something).

I’m going to create subtitles for each subtopic, I think, just so that the readers who’ve so far managed to stand reading this thread can easily follow what we’re bickering about. I’ll also reorder everything so that premises within one subtopic that rest one another are underneath it that subtopic. Let me know if this makes things worse.


Whether or not basic needs are objective:
$this->bbcode_second_pass_quote('jaws', '
')It is impossible to know what people's needs are. They are, have always been and will always be individually subjective.

You can't even claim that "food" is an objective need, since some people will find some foods to be incomestible while others will find them to be delicacies.

If you want to "scientifically" determine people's needs, then you need to give someone the power to determine everyone else's needs. But since ethics requires that the rules apply for everyone, it must mean that everyone must have the power to determine everyone else's needs. That will be chaos. We can only ethically let people determine their own needs subjectively.

This may very well be the crux of our difference in opinion.

Our need to eat to live- to eat the right food (one may be lactose intolerant or something)- is objective. Our need to drink water to live is objective. Our need to have a cure- or at least treatment- for our diseases, in order for us to be healthy, is objective. Are need to be protected from stabbings, so that we can all be safe, is objective. These are basic needs. These are the needs that a state that’s adopted a socialist economy must insure all people have.

Because taste is currently still a subjective experience, what people want to eat is subjective. This is where political power, not economical power, comes in. With a democratic, socialist state, people can vote for a system that addresses this. In other words, the food provided to the people can be decided upon using true democracy (not like how an American-styled democracy would run things, where if 51% of people wanted just meat made available, 100% would have to live with it). Other wants can be meet, but they’d have to think of how produce it or trade for it themselves. Since it is of no benefit to the state to interfere outside of meeting its people’s basics needs, then this is possible; and since everyone’s only expected to contribute to everyone else’s basic needs, there is free time to be had by all.

Is it the case that a society collecting and redistributing scarce goods for the purpose of supporting everyone’s basic needs is not compatible with everyone pursuing their wants outside of this socialist market, in what you’d call a... grey market *checks dictionary*? I do not see why not, however, but I am starting to understand where you’re coming from in saying that an economy can not be purely socialist, because what I am suggesting in response to addressing these “wants” seems to be definable as departure from socialism- maybe I wont have to read that German essay, after all- I hope I dodged that bullet!

Either way, regardless of what I’m arguing, I am with the moderates and am content with a mixture. I only believe that a socialist side of an economy ought to take precedence over the capitalist side, where as you’re arguing for an economy that’s purely capitalistic.

The Causes of Poverty:
$this->bbcode_second_pass_quote('jaws', ' ')But once again, this is not a problem of scarcity, it is a problem of poverty. Someone owning a farm does not exclude anyone from owning property. It only excludes them from owning that particular farm unless they want to make a fair exchange for it. It is only government socialist interference that excludes people from owning property, and this problem will never be solved by more socialism.

Property can be anything. A business can do anything. It doesn't have to be a land-based business, and in fact land-based businesses are so unprofitable in the west that they are supported by huge subsidies. It makes no sense to give land to the poor to make them less poor, they will never be able to compete anyway. What they need is an export business that trades with the wealthy world in a way that maximizes comparative advantage. That will allow them to produce and accumulate capital and make them wealthier.

I propose that poverty is indirectly related to scarcity, because the level of scarcity is related to the value of scare goods, and it is a deficiency in necessary scarce goods which defines poverty. If one can not produce enough to obtain these scarce goods, then one becomes impoverished. If acquiring the means to being more productive (not just land, I know) requires extra capital, then how can one escape such poverty? *rhetorical question*

$this->bbcode_second_pass_quote('', 'C')apital can be imported with free trade in capital, then comparative advantage will be maximized. This is what the "miracle" economies did. All it takes is freedom. The longer you deny it, the longer people will suffer needlessly.

Right, a capitalist’s solution to this trap is to give this person a loan (imported or domestic). However, like I said, individuals also require the know-how to properly manage this capital; and this can be extremely hard, if not virtually impossible, to get (especially when such individuals are suffering from the ills of poverty). If they get the loan when they don’t have this know-how (capitalism would not prevent this, because such arrangements can be freely made), then their situation becomes even more impoverishing. Thus, they are stuck in poverty, and they might as well head back to that sweatshop so that they are at least just hungry, not starving-to-death.

And speaking of starving to death, what happens in your "Robinson Crusoe" scenario when the dude washes on shore with a broken leg that both guys agree will never really heal, especially because both fellows calculate they’ll never get off the island? How do comparative advantages help the cripple when he can only manage to knock down 1 mango/day or catching 1 fish every 2 weeks? It cost Robinson 14 mangos to catch one fish! Friday still gains by meeting Robby half-way, trading him 10 mangos for every fish, but how the fuck does that help the crippled Robinson? How the fuck’s he going fair off of one mango/day, 1/10 of a fish/day, or 1/10 of a fish and 2/7 a mango/day!? How the fuck can they both have a good time, enjoying the rest of their lives? Communism, that’s how! Well… so long as Friday lives longer than Robinson.

Mind you, I suppose you’re going to tell that me that Robby, being the smart guy that he is, will present his companionship to Friday as scarce good, trading him that for food at whatever rate he desires, having a monopoly on this particular good. But… oh wait, what if a third, productive, far more interesting, exotic and sexy lady, Nubia, washes ashore??? Uh-oh, the gig is up for Robinson and Friday’s about to learn exactly why Nubia doesn’t have to lift a finger. Economics, and how Western women learnt to capitalize on its flexible principles!

The affects of aggression against private property:
$this->bbcode_second_pass_quote('jaws', '
')It is more than hurting people's feelings. To improve society means to accumulate capital. Aggression against individual private property will destroy capital and will therefore result in the impoverishment of everyone. Surely a socialist cannot support an act that leads to general impoverishment?

[…]

Capital is scarce in time. By destroying this far precious time has been lost where additional capital could have been accumulated instead of destroyed capital having to be replaced. The net effect is still general impoverishment, despite not being a reoccuring destruction.



Aggression against capital does not have to result in its destruction, especially if the aggressor has just as much know-how as the receiver. But even if it does, as it did in Venezuela’s case, unless the society being transformed has absolutely no buffer between general stability and general impoverishment, there is a margin-for-the-destruction-of-capital before impoverishment is reached. If there is no buffer, then a government shouldn’t interfere, lest lives may be lost, until the transformation can be appropriately, humanely managed.

$this->bbcode_second_pass_quote('', ' ')
It is impossible for the farm to be more productive than the previous business. Since the cattlemen were profit maximizing they would have transformed the farm if they fought that small, efficient organically grown crops were a better use of the land. Since this land use had to be forced it implies that it is less efficient than the previous organization of capital.
This assumes that its previous owner was all-knowing, like the God that I do not believe in.

The implications of capitalism/socialism on the island:
$this->bbcode_second_pass_quote('jaws', ' ')People do not produce the Earth or the rocks, but they can claim ownership of farms and metals. There is no such thing as an act of pure creation, all that we can do is re-arrange and transform the pre-existing matter of the universe. Any act of creation is an act of transformation. By selecting the most appropriate mangoes from the tree, he is transforming a naturally-occuring tree into a capital tree, thus appropriating them.
He’s only transforming naturally-occuring mangos into a capital mangos, and thus appropriating the mangos, not the trees. Yet he’s claiming the trees as his, because he came upon them first, and slept beside them for a few years. But you’re saying that Capitalism does not allow for him to claim these trees as his property, because he didn’t actually better them; he just came upon them before everyone else?

$this->bbcode_second_pass_quote('', 'A')gain you show that you are totally confused about the nature of property. If there are enough ripe mangoes for everyone then there is no scarcity, no conflict can possibly arise and there are no property rights involved.
Dammit, you’re forcing me to make my last response against a bloody mix-up? I'm getting you for that! ;)

The mangos are scarce. They are not like air; they can’t be picked, and picked, and picked, without anyone having to worry about the next guy picking them all and eating them until he’s too stuffed to get up and move, smashing the remaining ones in his pile against that large rock close by him. They have to be rationed for everyone’s tummies to be satisfied. This is where socialism (well communism, because the act would obviously be decentralized) comes in. The commune decides that it’s beneficial and fair if everyone only picks 3 mangos a day, that way the year-round mango supply which averages 30 mangos/day can sustain everybody (they’re all men so the population cannot outstrip the island). There you go, everyone gets to eat.

Now here’s my take of capitalism on the island, even without the original guy- let’s call him Friday- claiming the trees as his own. Friday sees 9 other guys arriving on the island, all hungry and tired. Friday says to the group, “Hey fellows, my name’s Friday. My God, you poor men, you all look tired!”

The group replies (in unison), “We sure are, Friday. We were stuck out at sea for awhile. Our muscles have atrophied and are organs are malnourished.”

“Yeah, I’ll bet. Hey guess what? I’ve lived here for years, and I’ll tell you, don’t worry about eating; there’s should be just enough mangos for everyone. This island can produce about 30 mangos/day”

“We’re glad to hear that, Friday. We’ll start picking them with you tomorrow.”

“Oh, no. I will certainly have any of that. The good Lord provides. Tomorrow, for instance, you guys rest and I’ll collect all the mangos. I wouldn’t want any of you to hurt yourselves while foraging, being as worn out as you all are.”

“Wow Friday, that’s awfully generous of you!”

“Don’t mention it, just pay me back once you’ve all fully recovered.”

So Friday goes out the next day and picks 120 mangos. The mangos can last for 4 days on the island before rotting, and during these 4 days they’re really not all that satisfying until the last day. He offers to distribute 27 of the mangos to the group if the group gathers and gives him 27 mangos back on third day. The group is pleased. They’d learnt from last night’s discussion that Friday used to be good friends with a banker, so they were worried that Friday might charge them interest in the form of mangos! Friday smiled when they told him that, and then said that it was a good idea but that if he did that to them, then they would do the same to him. They nodded and said that they certainly would, chuckling.

By the day 3, the men have recovered and Friday knows them all quite well. They actually sort of look up to him, since he’d taken care of their needs for 2 days- even they really didn’t need him to, but what he said made sense, and it is good to be cautious. So they all got out and started foraging for mangos, only to find it all very tedious because not many of them were really are all that ripe. Friday followed them around, lecturing anyone who went for a mango that was within a day of being able to ripen off of its tree. He doesn’t like wastefulness on the island, and the others nodded in agreement because they don’t want anyone to go hungry due to waste. However in the end, the men were upset because only managed to appropriate 54 mangos, and they’ve got to give 27 to Friday. Friday receives 27 of the more unripe mangos. They divide the remaining 27 mangos between the 9 of them, leaving each with 3 mangos.

Two schmucks try eating one of their mangos, protesting about how horrible they taste, obviously because they're 2 days away from being completely ripe. One man’s stomach begins to hurt and he immediately starts going off at Friday, accusing him of making a fools out of the group. Friday points out that he didn’t tell the guy to eat them yet, and that it was his fault for being precipitated. Two rather muscular men nod their heads, laughing. 3 of the other 6 hesitantly smile. Friday then informs the group that he happens to have 21 now-ripe mangos of the 120 unripe mangos that he appropriated the day after they all arrived, and that he’d give them each 21 mangos if they agree to give him 30 the next day. Most of the men just frown their eyebrows, but the one with the sore stomach tells Friday to fuck off. Friday laughs and distributes 18 mangos to the group, telling them that they only owe him 27. The two gorilla-shaped men decline their groups' offer of 2 mangos each.

The 7 smaller men go back to their sleeping area and start to divide their mango stash, grudgingly giving the sick man 2 ripe mangos, like everyone else. Everyone but the sick man gets an additional 2/3 a mango, after dividing the remaining 4. They now have 25 mangos, which will be ripe the day after the next. The 7 men sit on the beach in an uncomfortable silence, faintly hearing the sound of laugher, along with the smashing of something soft-like against a rock… 3 times.

The next morning the 7 men go out to pick mangoes so that they’re able to pay Friday back his 27, while keeping their riper mangos. On their way over to the trees, the group notices that Friday and his two friends are already out and about. The group is only able to find 21 of the 27 mangos that they were hoping to appropriate. The 7 men confront Friday and tell him that he and his men already took 9 of the 30 mangos available for the day, and that that wasn’t fair because it meant that they had to dip into their savings. The man that was sick the previous night told him that they weren’t even going to pay him what they owed him and started walking away with his share of the day’s mangos; however, he was subsequently escorted back to the scene by Friday’s henchmen.

“I’m disappointed in you men. I give you what I worked for, and now you’re stating that you shouldn’t have to fulfill your end of the agreement, because we’re utilizing the island's resources too? All of you want to break the rules so I have to dip into my savings instead of you? I can see you men have to be governed, as you obviously can’t be civilized on your own.”

The small, disgruntled man lost his temper, lunging at Friday, but was intercepted by one of Friday’s officers, taking a bit of a beating as he was restrained. The other 6 started panicking, in shock over what was going on.

”Look, as long as everyone respects everyone’s property, along with all perfectly legitimate trade agreements, then we can all live in peace. If you guys really don’t want to use 6 of the 25 mangos that you’ve saved up to make up that 27 you owe me, then I guess I’ll accept 21 today and then another 9 tomorrow. Either way, every individual will have to respect all property and trade rights. Offenders will at least be facing fines.”

The 6 men left standing soon fragmented into groups, splitting what savings they had. Some thought it better to keep what they have saved, confident that they could make up for things the next day; others, being familiar with the dangers of incurring interest, believed that they should just pay up and ration what had, hoping they’d still have the strength not fall behind in production the next day. A few of them were also angry at the criminal that upset Friday, believing he would have otherwise been more charitable. Others even started wondering if there would soon be men in a worse position than themselves, so that they too could capitalize on that like Friday.

“And by the way, if any of you want to eat mangos that are actually ripe, today, let me know!”

With far more capital, a happy police force, superior knowledge of the trails- not to mention the now hard-to-get-to, hidden fishing-spot, Friday’s got 70% of the island population by the balls. And yes, mangos will be smashed. :twisted:
User avatar
kabu
Lignite
Lignite
 
Posts: 316
Joined: Sun 29 May 2005, 03:00:00
Top

Re: The Economy must be doing worse than we're told

Postby jaws » Mon 17 Apr 2006, 23:28:34

$this->bbcode_second_pass_quote('Odin', 'J')aws, you are using the definition of totalitarian, Marxist-Leninist, centrally planned socialism for all branches of socialism (I am a non-Marxist socialist who has no problem with private property or the Market), in other words, you are regugitating right-wing propaganda and ignorant layman misconceptions about socialism. the only requirements for socialism is that the means of production, except for small "Ma & Pa" businesses, be in the hands of employees (co-ops) and/or the government; and that there are no private investors. Some forms of socialism are perfectly compatible with the market and with property rights.
That argument is not even consistent with itself. There is nothing that stops ma & pa businesses and co-ops from existing in the free market. They can exist as long as they are competitive and work in the interest of the consumer. But what you are claiming is that anything but such businesses should be outlawed. That means that if ma & pa have a highly successful business that is much favored by its consumers, they cannot expand it to serve other consumers. If uncle Ted (a private investor) tries to lend them his savings so they can expand the business, the socialist government will intervene to prevent him from doing so. Thus your form of socialism is an act of aggression against liberty and property rights. Uncle Ted is not allowed to use his property as he so chooses, and ma & pa aren't free to expand their highly competitive business. Your form of socialism is an aggression against the market. It limits the choices that consumers have. It results in general impoverishment.

Sam Walton once had a small, ma & pa business. He was very good at it, and now his business is the biggest in the world. It is still very good at what it does. If Sam Walton had been forbidden from expanding his business, the consumers would never have profited from his talents. This is what your brand of socialism promotes, and it is thus anti-market.
$this->bbcode_second_pass_quote('', 'T')he free market-worshiping Neo-classicists like Jaws are just as loony as the Marxists IMO, both are like religious fundimentalists. There is no such thing as a truely free market, such an institution would self-distruct, you would end up with a market regulated by Big Business for Big Business's benefit, as opposed to regulation by the government for the benefit of consumers and labor.
A market regulated by big business for big business is what we have now from do-goodist socialist governments. When Wal-Mart supports an increase in minimum wage, it's not because they have such a big heart. It's because it will kill off all the mom and pop businesses that compete with it and can't afford to pay high wages.
User avatar
jaws
Heavy Crude
Heavy Crude
 
Posts: 1228
Joined: Sun 24 Apr 2005, 03:00:00
Top

Re: The Economy must be doing worse than we're told

Postby rogerhb » Mon 17 Apr 2006, 23:46:05

$this->bbcode_second_pass_quote('jaws', 'S')am Walton once had a small, ma & pa business. He was very good at it, and now his business is the biggest in the world. It is still very good at what it does. If Sam Walton had been forbidden from expanding his business, the consumers would never have profited from his talents.
........
When Wal-Mart supports an increase in minimum wage, it's not because they have such a big heart. It's because it will kill off all the mom and pop businesses that compete with it and can't afford to pay high wages.


Now remind me how Standard Oil was formed, during the heyday of laissez faire.
"Complex problems have simple, easy to understand, wrong answers." - Henry Louis Mencken
User avatar
rogerhb
Light Sweet Crude
Light Sweet Crude
 
Posts: 4727
Joined: Mon 06 Sep 2004, 03:00:00
Location: Smalltown New Zealand
Top

Re: The Economy must be doing worse than we're told

Postby jaws » Tue 18 Apr 2006, 00:06:09

$this->bbcode_second_pass_quote('kabu', '[')b]Whether or not basic needs are objective:
These are basic needs. These are the needs that a state that’s adopted a socialist economy must insure all people have.

Is it the case that a society collecting and redistributing scarce goods for the purpose of supporting everyone’s basic needs is not compatible with everyone pursuing their wants outside of this socialist market, in what you’d call a... grey market *checks dictionary*?

Note that I have never and will never claim that people's basic needs should not be met. I defend freedom and property because I have seen the irrefutable proof that this is the best way for everyone to have their basic needs, as well as their higher-order luxury needs, met.

The critical error in your reasoning is believing that society should "collect and redistribute scarce goods". This assumes that goods are a naturally occuring phenomenon and that meeting basic needs is only a process of distributing these naturally occuring goods evenly. This is completely wrong. There are no naturally-occuring goods. Every good that we consume must be produced by a human being.

Socialist redistribution does not involve "collecting" but it involves "taking" with the use of force. This has consequences on how much is produced. People will not produce a good if they know it will be taken from them. Thus any socialist program to take and redistribute is destroying the total amount of goods produced, thus resulting in general impoverishment, and actively causing people's basic needs to go unmet. For example when a government begins a program to take long-established farms and redistribute them to less productive workers, other farms will realize the danger and stop investing in the capital value of their farmland. The productivity of the country will begin to fall, wages will also fall and everyone will become the poorer for it.

The greatest victims of socialist programs are the less fortunate who are intended to benefit from them. The wealthy can suffer some impoverishment and still live well. The poor cannot do as such.
$this->bbcode_second_pass_quote('', '
')Either way, regardless of what I’m arguing, I am with the moderates and am content with a mixture. I only believe that a socialist side of an economy ought to take precedence over the capitalist side, where as you’re arguing for an economy that’s purely capitalistic.
A mixture of poison and medicine is still poisonous. A moderate amount of evil is still evil.

$this->bbcode_second_pass_quote('', '[')b]The Causes of Poverty:
Right, a capitalist’s solution to this trap is to give this person a loan (imported or domestic). However, like I said, individuals also require the know-how to properly manage this capital; and this can be extremely hard, if not virtually impossible, to get (especially when such individuals are suffering from the ills of poverty). If they get the loan when they don’t have this know-how (capitalism would not prevent this, because such arrangements can be freely made), then their situation becomes even more impoverishing. Thus, they are stuck in poverty, and they might as well head back to that sweatshop so that they are at least just hungry, not starving-to-death.
Comparative advantage still applies. Know-how is a form of capital that can be imported. If taxation is low, then highly-skilled people from wealthy countries will move to poor countries and help them set up the new industries. People will not take out a loan for a good they cannot use. I don't take out loans to buy heavy lifting equipment, because I have no use for it. But if I need some heavy lifting done, I can hire a construction company and they will bring their equipment and their staff to run it.
$this->bbcode_second_pass_quote('', 'A')nd speaking of starving to death, what happens in your "Robinson Crusoe" scenario when the dude washes on shore with a broken leg that both guys agree will never really heal, especially because both fellows calculate they’ll never get off the island? How do comparative advantages help the cripple when he can only manage to knock down 1 mango/day or catching 1 fish every 2 weeks? It cost Robinson 14 mangos to catch one fish! Friday still gains by meeting Robby half-way, trading him 10 mangos for every fish, but how the fuck does that help the crippled Robinson? How the fuck’s he going fair off of one mango/day, 1/10 of a fish/day, or 1/10 of a fish and 2/7 a mango/day!? How the fuck can they both have a good time, enjoying the rest of their lives? Communism, that’s how! Well… so long as Friday lives longer than Robinson.

Comparative advantage still applies. A wounded Robinson is much less productive than a healthy Robinson, but he still has a relative advantage in the production of one good over another. He is then benefitting from having Friday to trade with. If Robinson were on his own he would have no hope to survive. But with Friday around, he can focus on his most productive activity and trade with Friday.

He may not have enough to survive still, but he is nevertheless better off than he would have been on his own.

To continue to survive he will require an act of charity from Friday. This is not communism because Friday's property is not being aggressed on. Friday is simply gifting Robinson with the food he needs to survive. It is purely voluntary. However should Robinson turn out to be an ungrateful jerk, Friday could stop providing him with these gifts.

Should a communist system be established to ensure that Friday is forced to provide for Robinson, then Friday would attempt to evade the system by hiding what he produces and producing nothing to be taxed. Then Robinson would starve and there would be no purpose in having a communist system any longer.


$this->bbcode_second_pass_quote('', '[')b]The affects of aggression against private property:
Aggression against capital does not have to result in its destruction, especially if the aggressor has just as much know-how as the receiver. But even if it does, as it did in Venezuela’s case, unless the society being transformed has absolutely no buffer between general stability and general impoverishment, there is a margin-for-the-destruction-of-capital before impoverishment is reached. If there is no buffer, then a government shouldn’t interfere, lest lives may be lost, until the transformation can be appropriately, humanely managed.
There is no margin at all. Capital is wealth. It is one and the same. Destroying capital immediately reduces wealth.

No destruction of capital can be justified.
$this->bbcode_second_pass_quote('', ' ')This assumes that its previous owner was all-knowing, like the God that I do not believe in.
No, it simply assumes that the previous owner was the person most qualified to know. Since they were running a successful farming business, and the government and landless poor were not, this assumption is the most sensible. If someone else knew how to run a farm better than this owner, then he could have made a purchase offer for a value greater than the current owner was currently realizing from it, thus the current owner would have been changed to the person most qualified to know.
The implications of capitalism/socialism on the island:
$this->bbcode_second_pass_quote('', 'H')e’s only transforming naturally-occuring mangos into a capital mangos, and thus appropriating the mangos, not the trees. Yet he’s claiming the trees as his, because he came upon them first, and slept beside them for a few years. But you’re saying that Capitalism does not allow for him to claim these trees as his property, because he didn’t actually better them; he just came upon them before everyone else?
The trees are necessary to produce the mangoes, thus they consist the technologically relevant unit of property. It is impossible to transform the trees without interfering with his property rights on the mangoes.
Last edited by jaws on Tue 18 Apr 2006, 00:09:22, edited 1 time in total.
User avatar
jaws
Heavy Crude
Heavy Crude
 
Posts: 1228
Joined: Sun 24 Apr 2005, 03:00:00
Top

Re: The Economy must be doing worse than we're told

Postby jaws » Tue 18 Apr 2006, 00:07:49

$this->bbcode_second_pass_quote('rogerhb', 'N')ow remind me how Standard Oil was formed, during the heyday of laissez faire.

Several oil companies decided to merge into one large company that could produce at much greater efficiency, thus reducing the price of petroleum for consumers.
User avatar
jaws
Heavy Crude
Heavy Crude
 
Posts: 1228
Joined: Sun 24 Apr 2005, 03:00:00
Top

Re: The Economy must be doing worse than we're told

Postby rogerhb » Tue 18 Apr 2006, 00:23:14

In true capitalism:

1. are monopolies inevitable?

2. are cartels permitted?

3. are workers' unions permitted?
"Complex problems have simple, easy to understand, wrong answers." - Henry Louis Mencken
User avatar
rogerhb
Light Sweet Crude
Light Sweet Crude
 
Posts: 4727
Joined: Mon 06 Sep 2004, 03:00:00
Location: Smalltown New Zealand

PreviousNext

Return to Economics & Finance

Who is online

Users browsing this forum: No registered users and 1 guest

cron