"People's Capitalism": Is this a good idea?

Well, heck, John, that’s a bit much for a country boy! Would you like a turnip, there were a bunch of them on ths truck I just fell off of…

But I seriously doubt that you can drape the determinism of physics over the quivering shoulders of economics. You and I both know that Mr Krugman and a pet economist on staff at Cato will look at the minimum wage and apply utterly accepted economic models to the question and derive entirely different results and predictions. Simply because a study uses mathematics does not render it a science, any more than putting on a little black cocktail dress and pearls will make you a girl.

And what the hell is an “atomic system”, anyway?

Do you deny that economists propose theoretical models and then test them empirically? Those theoretical models are necessarily “idealized”.

And not all physicists agree on the appropriate models to use or the best experiments to test those models in every circumstance. Now, if you don’t like the analogy of physics, how about we compare economics to evolutionary theory? Nothing “deterministic” about evolutionary theory (although I find it rather humorous that you would use that term to describe quantum theory).

Of course we’ve stayed far from the original posts that generated this little side discussion. One poster posited that anyone who disagreed with him thinks many of his fellow citizens are “subhuman”. I protested that demonization of the opposition wasn’t a worthy debate tactic, and you launched into a lecture on the superiority of cooperation over competition. As far as economics goes, I’d be interested in seeing an economists who shares that view. Because “cooperation” without competition is what we in the business call a monopoly. You know, when IBM and Apple “cooperate” to keep prices high on PCs and Macs.

Thing is, it isn’t either or. Some of us join together to cooperate in a venture that competes with another venture.

Oh… an atomic system is just a collection of atoms that interacts with one another-- eg, a molecule. Quantum Physics tells us the various wavelengths of light that such a system will emit.

And it’s good that you are here, 'luci, to keep my irony meter well calibrated. :stuck_out_tongue: I don’t know if you intentionally say things like the above tongue in cheek, knowing that it’s going to make folks roar with laughter, but I assume you do. It’s actually more funny if you are serious, but it’s pretty humorous either way.

-XT

For all his failings, he was talking about the subject. You just talked about him. See the difference? No? OK, lets try again, he was talking about the subject, but you just talked about him. Still no? Ah, well…

Okay, let’s get back on topic here.

elucidator, it seems that your position is that free markets don’t exist. I’d like you to explain this. No cites necessary, no technical jargon. Just tell me what it is about markets in general that makes them not free. And also, I’d like you to explain why you believe that the lack of freedom you seem to see in markets makes them a bad thing.

I wouldn’t dispute that there are disparities of power in the marketplace. And of course, you can’t always buy what you want. But a ‘free market’ generally means a market in which there are multiple suppliers providing goods to multiple consumers, and that in general, freedom of choice exists in that consumers can pick among many suppliers and suppliers are free to decide which products and services to offer to consumers.

Personally, I think progressives are FAR too fixated on wealth inequality. Why does it matter so much to you that there are wealthy people in the world? If someone provides a new product that you desire, and you purchase it and it makes your life better, why is it so galling to you if the supplier makes a profit? And if his product has such universal appeal that millions of people buy it and improve their lives, and therefore he becomes incredibly wealthy, why does this matter to you? This is part of the progressive mindset that just doesn’t compute for me.

I ask this because if you think about it, free markets actually provide most of the things progressives say they want. An end to racism? Markets punish racists. The abstraction of prices allows people of all races and cultures to work together without conflict. Markets help prevent war by binding countries together economically. It was the free market that gave women power and choice, as it allowed them to be financially independent from men. And so it goes. Most of the things that progressives want, markets provide.

And yet, where do progressives seem to focus their energy? On the wealth of the people at the top. But I thought a good progressive wasn’t materialistic? Why so much focus on the things other people have that you don’t? Doesn’t it just matter that your own life is better?

Progressives want democracy. But there’s nothing more democratic than the market. With government, every four years you get 1/300,000,000 of a say in who will be president. That’s not a lot of personal power. But with markets, you get to vote many times a day. Your preferences, as expressed in your buying decisions, are votes for the things you value. If you buy a Noam Chomsky book his publishers are more likely to commission more books from him and people like him. If you prefer vegetarian foods, your purchases will in a fairly substantial way bias the mix of goods in your local store towards the kinds of things you want.

This isn’t just theoretical. Neighborhoods full of Chinese people tend to have Chinese grocery stores and Chinese restaraunts. San Franscisco has more than the average number of coffee shops, vegetarian dishes, and whatever else it is that progressives like. The power of the market helps shape communities to match the desires of the people living in them.

Can you imagine government been as sensitive to the needs and desires of the people on such a micro level, in such detail? That’s real democratic power. And only markets have shown the ability to provide it. The Soviet Union, Cuba, Vietnam, and other Communist countries are or were bland places lacking in choice, with depressingly uniform concrete apartment blocks, one-size-fits-none clothing, and products of lousy quality. The voice of the people was not heard. There was no room for diversity. Don’t progressives love diversity?

Even in American politics, progressives seem to push for more control by federal government, or even world government. Why? Why do you want to smother diversity like that? From the progressive viewpoint, why isn’t it better to have government be as local as possible? Wouldn’t it be great if people’s votes mattered even more because the most government power is the closest to them, driven by the smallest possible community?

Do you think San Franscisco would be a better place for progressives if all the planning and zoning decisions for the city were made by Washington? Would you like George Bush or Trent Lott to have a say in what types of stores and services should be available to San Fransciscans? How about giving that decision to the UN? Do you think it would be more likely to meet your needs than is your state and local government?

In some ways, I think Libertarians are progressives who have figured out that markets are, on balance, the best way to achieve progressive goals. I know that I want tolerance, diversity, and peace. I like living in areas where there is a lot of choice, where people of different cultures live and work together productively. I like innovation and science, and I like equality.

The difference between me and you is that when I look around the world for the places that come closest to meeting these goals, they tend to be the places with the freest markets.

The fact that in free markets some people become very wealthy and others don’t doesn’t bother me in the slightest. In fact, I see it as a feature. I see wealth being created, and much of it going to the creators, who then create even more things. I think the world is a more exciting, interesting place with people like Richard Branson and Elon Musk and Bill Gates in it. Wealth is inspirational. It gives us goals. It shows our children that there are no limits to what they can achieve. The concentration of wealth leads to great philanthropy and great projects. The people who became wealthy forming Amazon and eBay and ID software are now making spaceships. Isn’t that fantastic?

I had no problem with the wealthy when I was dirt poor, and never understood the resentment towards them I saw in my own community. It seemed petty and mean spirited and selfish, and I think it still does.

I will certainly answer, but I have some responsibilities, gotta bugger the turkey…carve…carve the turkey. But for the sake of brevity, I will simply overlook the parts where you sing the “liberals are such hypocrites!” aria, as I find it tedious. Nor will I even try to defend myself against the suggestion that my motives are “petty and mean spirited and selfish”, seeing as how that’s pretty much impossible to disprove.

But I would be remiss not to commend you for the purity of your virtue, thanks for allowing us to bask in its glow.

More soon.

I never said you were a hypocrite - I said that you’re allowing your dislike of wealth inequality to blind to you the many other virtues of markets that satisfy progressive values. I’d add that progressive’s desire to give government more power to address wealth inequality results in the destruction of of values progressives claim to desire.

In other words, your fixation on the rich is causing you to act against your own interests.

Much like the term “liberal”, which I use myself but which seems very different from it’s true meaning, I also scratch my head at the philosophies of the so-called “progressives”. They seem to be completely at odds with what they claim to be their goals - uplift of the poor and socio-economically worse off.

  1. Fixed-pie thinking with regards to wealth creation and economics. The rich must only be acheiving at the expense of the poor.

  2. Erection of trade barriers that deny poorer people low-priced goods, and create trade wars that reduce our export potential.

  3. More unionization, which rewards seniority and political pull rather than merit. It only serves to create barriers around existing jobs…not create new ones.

  4. Disempowerment of the individual and a push towards more, and greater, government involvement in our lives. With the noted carve-outs of recreational drug use and gay marriage, of course. The government must stay way away from those.

  5. Discouragement of capital formation, investment and job creation via high taxes on entrepreneurial activity and the repatriation of overseas profits.

That’s “progressive”? That sounds extremely regressive, or perhaps stagnant at best.

This wonderfully encapsulates how I became libertarian (ish). I tried to express this in another thread, but if you have a basic understanding of economics you start to look at all sorts of problems you would like to see solved and realize that government is simply ineffective as an agent to address those problems.

When I was poor I also came to appreciate how many of my needs were met by products produced by the free market that I could actually afford. I can now get a serviceable laptop for a few hundred dollars or a dress shirt for a few dollars. These are small miracles of efficiency.

As to the OP, the irony here is that this scheme, which I find ill advised in many ways, would benefit the rich immensely. A national mutual fund would pour money into the stock markets, which would have to inflate prices, and probably dramatically. Most equities are owned my upper middle class and wealthy investors and they would see their net worth increase. Like most government programs though it would quickly become permanent. Imagine it didn’t work, you would then have to withdraw that artificial market support and depress prices in the process. That level of government manipulation is just a terrible idea.

Of course there is a developing rich class in China. but the decisions about the industry can be sent from the top down instantly. Our process involves paying of politicians to allow the businesses to write the legislation. Then paying the pol to present the bill they wrote. Then it has to pass the house.That of course is half the battle. It starts over in the senate. Then the Prez has to go along after consulting with his lawyers and party. Is that your idea of American efficiency?
The American system permits Valdez, BP and other environmental disasters in the name of profits. We will fight every single environmental rule that could possible give a corporation a problem. Soon we will be buying all our cutting edge green technology from China. They are working hard on it. They are improving the technology because it is important to keep them from getting dirtier than they are. it is also the business of the future. Oil companies, the business of the past, a very dirty business, will not allow America to quickly regear. It is not in their financial interest to do so.
Our rich people make money off foreign business. They moved our technology and factories there. it benefits the rich. it hurts the American worker and the country though.

Spoken like a true Social Darwinist. You’ve never heard much about the human nature of greed and dishonesty, right?

I bet you’d be a great defense attorney for Bernie Madoff.

Get your history right, dude.

Lenin and Stalin came to power because of a widespread Russian reaction to the incredibly abusive Russian Tsars.

Mao came to power because of similar reactions against the frighteningly awful treatment of the people by the Chinese Emperors.

Hitler came into power because of unrest arising from the Weimar Republic fiasco.

Going by your logic we could cite Capitalism’s tie-in with the American slave trade and the extermination/ethnic cleansing of Native Americans. Either of which amounted to an equal level of human rights abuses as all of the above combined.

The only way you’re ever getting out of that is to live without a Government, pardner.

Oh that’s easy.
Government regulations make markets not free.

Next?

While you live in denial of wealth inequality and its effects.

A straw man attack on Elucidator’s position…

Elucidator never said any such thing in this thread. Nor implied it.

:rolleyes: :rolleyes: :rolleyes:

How so?

Except when they decide to start embargoing oil or resources get scarce.

No, it was feminism that did that.

Funny, history shows that the US Civil War began because Southern slave masters were flooding the market with cheap slave labor and the North’s economy suffered as a result.

Ah, don’t give a shit about others, worry only about yourself.

Well, aside from the whole “landed gentry” thing that our Founding Fathers envisioned. (IOW… BULLSHIT.)

And companies that have no direct dependence at all upon your purchasing habits (big banks, etc.) contradict the will of the People by the use of campaign contributions.

Which is how you got the whole Subprime mess.

Money. Buys. POWER.

And you know what, I’m SURE you have me on ignore - but millions of others read this and know it’s true. And THAT is why your argument loses all credibility. You’re living in denial of reality… and that’s why you’re up to your ears in opposition and why Markets.Are.Not.FREE.

Racial and cultural balkanization. That’s not racist?

[snip rest… sounds more like a cut and paste propaganda piece from the Koch brothers than a real argument…]

The idea of the ‘growing economic pie’ is dependent upon the fractional reserve banking system of “make $9 out of $1 through loans”. This depends on perpetual population growth within the affected economic system as well as perpetual wealth growth. For REAL wealth growth to happen you need access to more and more natural resources.

Fixed-pie thinking is based upon the law of physics - namely, the finite nature of real wealth (natural resources) and the finite nature of population growth.

To deny fixed-pie thinking you have to state that natural resources are infinite and that the Earth’s population will one day rival that of Coruscant. Even with recycling, assumption a) is impossible, and assumption b) is downright ludicrous.

Ever heard of the concept of the ‘mature market’? The United States is one such market. Now go back for a few days and study up on the effects of a matured market on growth versus the effects of an emerging market on growth. An emerging market has huge growth when globalism arrives, compared to mature markets like the United States. The concept of the growing pie DEPENDS on accessing new, emerging markets. When Asia and Africa evolve from emerging to mature markets the illusion of the growing pie will diminish and disappear.

Granted we’re a long way from that but essentially what happened to the United States these last ten years, culminating in the near-collapse of 2008, was that America became a fully matured market with little potential for further growth compared to emerging markets like China. Case in point: look at how many cars are selling per year in China versus the United States.

Furthermore, the growth of the American pie is NOT benefitting the poor - it is only benefitting the rich. It isn’t even benefitting the middle class.

Our exports are already negative. What do we have to lose? Negative exports? I’d like to lose that!

Also your one-sided propaganda ignored, as usual, the fact that while trade barriers deny low-priced goods, it also brings in more jobs and raises income levels as a result. Incomes rise with inflation.

Worse yet, your own Straight Dopers argued this much: inflation doesn’t change much with regards to income… except recently, where wages have been falling behind inflation for the last 10 years. DESPITE the benefits of offshoring!

Of course we could always have no unions and wind up with collapsing factories and exploding coal mines like they have in China.

But, when it comes to your brand of Capitalism, who cares if workers die? They’re replaceable commodities, after all!

And corporations don’t disempower the individual? Obviously you’ve never heard of the power of campaign contributions and their ability to nullify the power of voters. Case in point: every election season we kick out politicians who are labeled national debt-raising big spenders and guess what? Their replacements do more of the same.

Except, of course, when progressives bring in liberals like Bill Clinton… :eek: :eek: :eek:

Okay, I sincerely hope you’re not reading this so that you can’t respond to these facts:

The Cayman Islands… popular overseas tax shelter for entrepreneurs and big businesses. BANKRUPT.
Ireland… popular low corporate tax shelter. Low taxes on entrepreneurial activity. BANKRUPT.
Dubai… same deal. BANKRUPT.

Furthermore, you, as with everyone else who argues your POV, have FAILED to demonstrate any affirmative link between capital formation and job creation. We have had ten years of low taxes and anemic job growth that has failed to keep up with population growth.
None of your arguments stand the test of history. Or logic.

But hey, they look good if you’re trying to get a gold star from Von Mises.

Oh my Lord. Oh dear. My, my my.

You see? This is what happens when the public-school system gets overtaken by government teacher’s unions. They too, don’t have a clue how wealth is created from finite natural resources.

But let’s give it a whirl, shall we? We’ve got the day off work, after all. And a few minutes to type…

<clears throat>

I agree that natural resources are finite. Let’s take oil, for example. The amount of fossil-fuel hydrocarbons contained on Earth is finite. There are less available hydrocarbons now, in 2010 than there were when the first well was drilled in Titusville, PA in 1859.

So according to your logic, the wealth created from oil and oil-related industry must be less now than in 1859. Back then, the stuff was mostly used to lubricate an axle of a horse-drawn wagon, or perhaps to dampen an old cloth and burn as an illuminant. The latter was done most probably by a family of farmers who squinted over an old Bible in a 200-sqft cabin.

The pie of wealth from oil and other hydrocarbons must have been fixed or shrinking over that timeframe, according to your logic.

But yet, since 1859 we’ve developed the internal combustion engine, jet transport, plastics, medical devices and a billion other things from extracted hyrdocarbons. All of these things have increased our living standards and added to our life expectancy.

The pie has increased, not decreased. Even though the metal ores, catalysts for chemical reactions, minerals for paint, and everything else in the goods I describe above are also finite.

Let’s try silicon, shall we? The amount of silicon (think of sand) on the Earth is also finite. Many years ago people used silicon as an abrasive to clean or scrub things. Today they use silicon to create computer chips that are at the heart of whatever thing you are currently typing your nonsense.

Just 20 years ago, what you are doing on your computer at this moment would have been impossible. Now it’s possible. The pie has increased, despite it’s use of finite, non-renewable resources.

How can that be? How can wealth be created from finite resources? How can the pie increase?

Wasn’t the current stock of computers, iPhones, Pratt & Whitney turbine engines, artificial heart valves that save human lives, HIV-cocktail serum, Goodyear radial tires, invisible-fence dog collars, 12-packs of Pabst Blue Ribbon, GPS satellites and Nike Air Jordans already in existance, somewhere in caves, 100,00 years ago when man first started rubbing sticks together to make fire?

After all, that’s what should be the case if wealth were a fixed-pie. When those monkeys first starting ranting and raving at the beginning of “2001: A Space Odyssey” and getting a clue about things, the stock of material wealth available now, should have been available then.

That’s the incredibly obvious fallacy of fixed-pie thinking. Unfortunately, our President seems to share your thoughts on the subject.

But they did have a clue about more basic things like mathematics and reading comprehension.

Wrong. That’s not what I said. I said that the wealth that is available to extract is less now than before. Available to extract and created are two different terms.

No, that’s according to your misinterpretation of what I said. To shorten your argument here, you’re talking about the benefits of increased efficiency and its effect on the growth of the economic pie.

Fat lot of good these efficiency increases have done toward preserving our access to cheap, light sweet crude…

No one is denying that the economic pie has increased up to this point.

But your entire argument including that which you posted below is based upon the assumption that the pie will increase indefinitely. This is impossible given the simple law of entropy.

Again, you are arguing that because the pie has grown prior to this, that it will grow indefinitely. We are making more efficient use of the resources we are extracting, but we are still running out of resources: case in point, we’re now moving from cheap light sweet crude to more expensive sources like deep offshore oil reservoirs and oil shale. This costs even more energy to turn into fuel. These efficiencies are slowing down. The pie is not growing as fast in America as it used to. There is strong evidence that it may stop, or even reverse. In fact, a recession marks the shrinking of the economic pie… that’s why it’s called a recession. We’ve been having back to back recessions as of late, followed by jobless recoveries that themselves get cut short by successive recessions.

Your arguments completely fail to address this. Plus you completely ignored the flaws of the fractional reserve banking system and its effects on the growth of the economic pie.

If you took basic economics you’d understand the relationship between economic growth and the growth of the “pie”. Do you know anything about the economic sorcery of turning $1 into $9 through the use of loans? What about the difference between emerging markets and mature markets and their effect on the growth of the economic pie?

Plus you also failed to address the fact that the benefits of existing (slow) economic pie growth has poorly favored anyone but the rich.

In place of addressing these real and pressing issues you basically waxed nostalgic. :smack:

The idea of a free market is nothinbg more than the idea of people letting their freak flag fly–everyon doing what they think is best for them for that reason alone. It seems to me that you support that idea in other areas of life, but as sson as money changes hands you side with the squares.

Wow, man, you’re blowing my mind! So, what you’re saying is, its really the Republicans who are groovy! Far fucking out!

Keep thinking about the analogy–you may learn something.

Is there any Straight Doper on this supposedly intellectual powerhouse of a message board that can tell us where free markets, aka laissez-faire capitalism, is being practiced as we speak?

Can anyone give a DIRECT answer to that question? Someone? Somewhere? Hello?

State the country. Right here, between these two lines. No excuses. Tell us where laissez-faire capitalism is happening.

Go!



Let’s put this red herring to rest once and for all.

No country in the world practices Laissez-faire Capitalism.

Can you hear me now?

Now, who in this thread is saying otherwise? Tell me. Show me the post where someone has said there is a country where Laissez-faire capitalism exists? No excuses. Tell us why you think it’s so insightful that you’ve discovered this tidbit of information? One that no one in this thread is claiming.

You know what else I just discovered? No country has absolute freedom of expression. OMG!!! Free speech doesn’t exist. We’re doomed.

Try to remain calm, citizen. No one is making wild claims, like libertarianism is simply intellectual wussitude, trying to claim non-partisanship as an advantage of unbiased viewpoint, when its little more than an inability to commit. That’s crazytalk from Crazytown, so don’t worry!

Its more like pointing out that we are given that the “free market” is chock-full of crunchy goodness, it walks on water, it raises the dead and it will stop a bullet. But no one can illustrate these marvelous traits because no such conditions currently exist, or ever have. “The market” has aways been manipulated/regulated, the only issue is to whose advantage.

Here, have a nice cup of chamomile tea. Shouldn’t let yourself get all riled up, its very partisan of you.