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This weekend i spent a fair amount of time pondering what peace is and how it should be achieved.

Whenever we have a war, there's a bunch of shooting and bombing and fear and rape and famine and torture and maiming, and whole nations are deeply traumatized and face environmental and economic crises for years or decades.  And after the primary spasms of horrific violence end, there are "peace talks."  Or, often the "peace talks" happen when there's been some terrorism and skirmishing and threats.

This whole idea of "peace talks" though enshrines a number of unspoken presumptions and agendas that i want to unravel a bit. 

First, look at who gets to be party to the peace talks: the generals and warlords and state leaders and other people who masterminded the war in the first place.  Does anyone ever speak for, or listen to, the refugees, the broken families, the orphans and widows, the children who were prostituted or drugged and made into soldiers? 

Also absent are the war profiteers.  They would prefer to stay in the shadows, because they benefit most when no one pays any attention to their role in all this and everyone just assumes that they are passive merchants, not power brokers.  They want people to think that it wouldn't matter if they stopped selling arms or hiring out mercenaries because the demand exists independent of their supply, so if they got out of the war business someone else would just offer the same products anyway.

The people who do get to participate in peace talks do so in order to advance their agenda -- and i assert this to be the case for all parties no matter what ideology or doctrine they epouse: they want to duck any kind of accountability they might otherwise face for war crimes, and they want a seat in the cartel that has a monopoly on violence in the region.  Throughout the peace talks, it is in their interest to make it seem that they are willing to return to violence at the drop of a hat -- as if being violent is the easy option, and not being violent is a perpetual struggle.  Running and outfitting an army is not cheap, the resources for training, weapons, and provisions have to come from somewhere, and yet we are to believe that being nonviolent is the harder option?  At peace talks, the biggest asset one has is the appearance of having limitless capacity for violence, and how backward is that?

So the idea of "peace" promoted by the state is the absence of factional organized violence, enforced by a cartel who assert the unique authority to use sanctioned violence in that region.  Anyone else uses violence, they are criminals; the state uses violence, it is just and heroic.  This is "peace:" unrealized potential violence.  The state wants you to believe that peace comes at the point of a gun.

Which is where, like so many of the matters i consider, this comes down to one's view of human nature.  If people are fundamentally unruly animals, for whom it actually is more difficult to be nonviolent than brutal, then pacificism doesn't make sense, and neither does compassion.  Under the pessmistic view of human nature, we should be thankful if we live in an area with a strong state and a healthy culture of fear-respect for God, police and military.

However, i'm not inclined to think that way, for several reasons, not the least of which is that what we are witnessing is not the action of humans in our natural habitat but the action of humans under the severe stresses of crowding and being caged.  If our unruliness is fundamentally the reaction to this stress -- along with stress from various other stressors -- then adding the stress of perpetually-threatened state violence cannot be a lasting solution.  The better solution, it seems to me, is a more direct response to the stresses which cause our unruliness.

Is peace more than the absence of war?  I believe instead that it is the steps we take to foster greater understanding, less prejudice, and reduced stress.  If this is the case, then we all have a stake in promoting and developing peace.  And we, all of us, not just the ones with the guns and bombs, have a voice in saying what it looks like.
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Yesterday, the Mexican Federal Electoral Tribunal certified conservative candidate Felipe Calderon the winner of a close and hotly contested presidential election (spurring a serious case of deja vu for any Americans who might be paying attention). The leftist candidate, Lopez Obrador, has refused to accept the tribunal's decision and is now vowing to create a government of his own.

In Britain, the Labor government is in tatters. We saw a string of sleaze scandals earlier this year, and now members of Prime Minister Tony Blair's own party have utterly lost confidence in him, openly criticizing and even insulting him (and his ally George Bush), and now resigning in droves.

This scene could be played out soon in Israel, too, as faltering confidence in Ehud Olmert might couple with a brewing cronyism scandal to topple the ruling coalition there.

It could be that we are just seeing coincidental simultaneous instability... or, it could be that people in democratic nations are starting to become aware of the ways in which their leaders have been betraying them. Am i paranoid to think that the radical distrust of government which seems commonplace today is qualitatively different from the cynical resignation of ten years ago? What i mean by that is, i don't think that people are simply more cynical than they used to be. There is now an active distrust which may start to look like revolutionary fervor before too long.

A kleptocracy, established by aristocrats who band together for mutual gain, can remain in power for a while through fear and the veneer of legitimacy we're collectively willing to grant the institutions of government. But when the aristocratic self-interest leads members of a government to turn on one another and start openly sparring, it can only mean that the inevitable has happened.

What we've seen in recent decades is a worldwide attempt to disguise imperalism and cronyism as "freedom" and "democracy." While in Newspeak freedom is slavery, and the "leaders of the free world" have done their best to misappropriate the word "freedom" so that it is a mere emotional catchphrase (the so-called "Islamo-fascists" are said to "hate freedom," to which Osama Bin Laden replied that Americans should ponder why al Qaida hasn't attacked Sweden), i do not think they will be ultimately successful. That is, i'm optimistic that, in the long run, authoritarians cannot micromanage our lives and exploit us while giving lip service to freedom.
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The idea of "socialist government" is an oxymoron.

Human freedom, as defined by Marx and Engels, is essentially the freedom to "contemplate oneself in a world one has created." In other words, people are free if they have real say in the direction or future of society.

This goes beyond the popular idea of freedom which we have in the United States today. Americans have the freedom to do what they want to do with their time and to pursue what interests they want. But we do not have real freedom to shape the future, to make our voices heard against the ubiquitous ethical bankruptcy of our institutions.

The American ideal, as it exists today (it was not always so) is government of the people, by the people, for the people -- not government that facilitates and provides a veneer of legitimacy or even respectability for the slow-motion cannibalism of the lower classes. The idea of government of, by, and for "the people" points to the "naive need" for society to have just and humane governance, governance which holds perpetrators accountable for injustices at all levels.

Suppose, on a naive level, that people come together to create an institution to facilitate the protection of some degree of fairness. People do so because they recognize that human nature is not at the point where people can be expected to just do the right thing. The problem with this scheme is that the authority of an institutional edifice depends upon its mission being respected by all people. Where the aristocratic class finds a way to undermine the mission of an edifice by appointing cronies as watchdogs -- and we can regard this outcome as inevitable -- suddenly people need to be protected against the edifice itself. It has become a proponent of the injustice which they intended it to prevent.

And so it goes with government of, by, and for the people. Any government established by and for "the people," including one founded on socialist principles, can be expected to be undermined by a cabal of cronies.

We cannot even achieve justice by rebelling against an unjust government, because rebellion is part of the imperialistic scheme. The faces at the top change, the words and ideologies change, but not the methods of imperialism.

The key may be changing human nature, but what do we do until that can be achieved?

The difficulty is in imagining something that will remain "naive" without becoming undermined by cronyism, but which is simultaneously protected against imperialism from outside.

One might contemplate mutual aid organizations that are designed to dissolve every so often, and this would be a decent scheme if it contained the means to protect itself simultaneously (1) against becoming a cronyist edifice, (2) against imperialism from without, and (3) against becoming a tool of injustice against minorities.

One might contemplate a sort of "perpetual radical movement" that replenishes every generation, but such movements have not been able to avoid the fate of being either (1) suppressed and forcibly silenced or (2) misappropriated and misdirected into tacit support for imperialism. (The aristocracy does not have to silence radicals if they can make our own words meaningless by drowning us out with a popularized "safe and sanitized" version of our own terminology.)

To succeed, a radical socialist movement would have to be global in its scope, would have to focus heavily on "values education," would have to minimize power centralization (while simultaneously maintaining a high degree of universal accountability), and would have to perpetually renew to avoid having its language misappropriated and diluted.
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[livejournal.com profile] cowgrrl and i saw Who Killed the Electric Car? last night.

The movie is clearly biased (i sorta sense that some of the story was left out) but makes a good case in its indictment of the auto manufacturers, the oil companies, and their cronies in government, for killing off the market viability of a technology that stood a real chance at reducing greenhouse emissions.

The electric cars that hit the market may have had fatal limitations, but it was fairly well demonstrated in the movie that this was not for lack of ingenuity. Rather, there was concern about the profitability of selling cars that did not require a refueling infrastructure or expensive maintenance.

Ironically, the oligarchs refusal to embrace new technology -- with regards not only to electric or hybrid cars but also to emissions control -- in hopes of maintaining their profit margins may be the direct cause of their present dire financial straits. General Motors, for example, posted a loss in 2005 of over $8B. In contrast, Toyota, who's Prius is selling like hotcakes, just yesterday announced that they will sell a version of the Prius which has batteries that can be recharged by plugging the car into a typical 120-V outlet and capable of running on 85% ethanol. How marketable is 150 MPG? How marketable is zero emissions? How stupid do the Big Three look now, after whining for years that they can't meet mileage standards like 30 MPG and emissions standards lower than those of any other industrialized nation?

ETA: [livejournal.com profile] kaiyu posts today about the announcement of a new electric car by Tesla Motors.
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I saw An Inconvenient Truth this weekend. It was well-done and fairly informative, although i'm convinced that it is also a campaign film for Al Gore. An Inconvenient Al (thanks to [livejournal.com profile] _raven_ for the link) matches a lot of my reactions to the movie.

There's a scene where he shows the auto emissions standards of several countries, demonstrating how much lower they are in the US than anywhere else, even China. In fact, US-made cars cannot be exported to China because they don't meet the emissions standards there. Gore suggests this is one reason why US auto manufacturers are having trouble: instead of striving to compete against carmakers who are following international emissions standards, they are keeping them low here in the US.

Gore uses this observation to argue against the conservative position that lowering CO2 emissions will be damaging to our economy. It bears adding that any entrepreneur with enough vision could turn emissions reduction into good business.

So why isn't that happening? I gained a lot of insight into human nature in that moment.

Under capitalism, as i learned about it in college, companies change their strategies to stay competitive, or they die. But this is assuming that losses will make a company actually shut down. If one mom-and-pop store can't compete against another mom-and-pop store down the street, the closing of one such store does not impact the economy or the nation. (Well, it does, but few of us will notice.) The prospect of an airline or auto manufacturer going out of business is a different story; the state and federal governments will come up with all sorts of programs and deals to prevent an economic bomb like this from dropping.

Add to this that consumers really do not have the ability to impact the decisions a very large company makes via "voting with their shoes." This would work, again, if the business in question is a neighborhood mom-and-pop. Boycotts are ineffective; General Electric doesn't care if a small percentage of people stop buying their light bulbs.

The net result is that very large companies do not have to operate by the rules of capitalist competition and operate instead by the rules of privilege and entitlement. If a company gets large enough, its shareholders and directors will claim the ability to essentially operate in open defiance of reality, and no one can stop them. This, at its heart, is what characterizes imperialism (and usually causes empires to be short-lived).

I am a socialist, but i recognize that the problem would not be solved by nationalizing corporations. The fundamental problem remains the same: institutions that grow beyond a certain size operate under a completely different set of rules.

The great problem of the 21st Century is gearing up to be: how do we design institutions that are responsive to the actual needs of real people?
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A link on the friend's list this morning had some interesting information on the Fed's decision to stop reporting on M3 and suggesting that this is to cover up a Federal Reserve plan to hyperinflate the dollar. So far, so good; that's the kind of evil i can see happening as a result of the Fed's relative impotence in the face of Congress's utter fiscal irresponsibility. Printing lots of money is every junta's favorite way of paying off its debts.

I should have stopped reading the comments though when i saw the word "Bilderburgers." Ordinarily, i would have; LaRouchean-style conspiracy theory doesn't sit well with me.

If there were truly a conspiracy to shape the course of world events, it would not look like a secret cabal. A secret cabal could be too easily exposed for what it is. Just the fact that there is widespread speculation about secret cabals precludes the existence of one, because no secret cabal worthy of the name would tolerate open speculation about the existence of secret cabals.

No, it would look like something else entirely, something much less obvious.

I think that a lot of people are drawn to the idea of a conspiracy because, after all, there are a few people in the world who have a lot of power, money, and influence, and there are many of us who have little or none. And this is a situation with which the majority of us accept quietly, due in no small part to the presence among us of people with uniforms and guns who take orders from the influential folks. It's also a situation that exists because there are people in the world who feel completely entitled to take whatever they want, without any thought for who is put out in the process.

It's been recently established that primates have an innate sense of fair play; and so even on an unconscious level we look at the world around us and know that there is something vastly unfair going on around us. But we can't see it. That's because we've been very effectively blinkered to its existence.

THAT is what a real conspiracy looks like. It would be something we all buy into, a presumption built in to all of our language, culture, and ideology fnord. Something considered "common sense" so that the defenders of it seem rational and straightforward, can defend the unfairness of it all with a calm rational voice. Something considered "natural" so that proposals to replace it with something more fair and egalitarian sound wacky and far-out. Something we are all recruited to play a part in, unable to see it because we have been cultured from birth to see it as a normal part of the way the world works. Something we have no words to describe because we have been numbed and desensitized and because, even more subtly, we employ a censor on our consciousness to keep it from active awareness. Our own scrambling from day to day for survival keeps us from seeing it, because we are too busy worrying about our own lives and sanity. And lastly, those who do happen to look up from the grindstone to see that the emperor has no clothes are led to dualistic "us vs. them" thinking that makes it difficult to understand (and therefore criticize) the full ubiquity of the conspiracy and our own individual participation in it.

Hannah Arendt's appraisal of evil as banal holds in this case, because the conspiracy shaping world politics and events, preserving privilege for a few, looks exactly like the kyriarchy.
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A cartel is a group of legally independent producers whose goal it is to fix prices, to limit supply and to limit competition.

In Economics 101, you're taught that the cornerstone of capitalism is the free market. The theory goes, if you don't like what is being offered by one seller, you can go to another.

The problem with this theory is that the market is not as free as walking across the aisle to another stall. Exercising your consumer freedom involves an expenditure of time, energy, and perhaps money (if you have to pay to go to the next vendor). You have to spend time researching different products and vendors in order to get the best deal, and you have to have access to good information. These "free market costs" add up to leverage that can be used to the vendor's advantage -- but this kind of leverage is small compared to the leverage the vendor has if you are dependent on the product they are selling.

This leverage makes it possible for cartels to form. In a truly free market, a cartel would not be viable because a single vendor could undermine it by lowering his prices or increasing his supply. But the leverage which vendors possess makes it possible for vendors to band together and undercut the mechanism of competition by setting their own prices. Once a cartel forms, the consumer has nowhere to go to get this product without submitting to the cartel's terms -- and if the consumer is dependent on the product, the consumer cannot simply opt out of buying it.

Theoretically, when cartels are identified, the government forcibly breaks them up in the name of "preserving market competition." Another reason to break up cartels is that they often involve coersion and can lead to violence from efforts to keep the vendors or consumers in line.

The leverage which haves have over have-nots is the root of the "iron law of oligarchy," which states that "all forms of organization, regardless of how democratic or autocratic they may be at the start, will eventually and inevitably develop oligarchic tendencies."

The fact that we have authorties charged with trust-busting means that those cartels which are allowed to continue existing are given tacit legitimacy.

Is it still a cartel if it spans the entire economy? The difference between an oligarchy and a cartel is like the difference between a religion and a cult: the only real difference is size and social acceptance, the veneer of "legitimacy." If the cartel's influence is lingering and ubiquitous, we arrive at a state where we cannot imagine life without it; it becomes standard reality, common sense.

So if i were to suggest that our labor market is ruled by an enduring and powerful employment cartel, i might be dismissed as a loon, but think about it for a moment. Your employer has a strong degree of power over you. The "free market cost" of seeking another employment vendor is often high -- and is probably kept that way -- thus putting pressure on people to keep or seek jobs, no matter how cruddy or humiliating or dehumanizing they are. Dependency is high; people without their own property do not have the freedom to visualize themselves in a world of their own design, and they are kept that way because oligarchy is more profitable for the landed class than democracy.

Economists have described the "natural unemployment rate" as an inevitable aspect of a capitalist economy. But those without jobs are held up as an example for those who have jobs, to keep our enthusiasm high for whatever drudgery that we do to pay our rent. The "natural unemployment rate" is a mechanism of coersion.
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According to the "unseen hand" theory of market operation, the quest for profit in a competitive free market will magically lead to the development and production of the best products possible. Consumers will reject inferior products in favor of better ones as they come on the market. Once a need is identified, an entrepreneur will develop a product to fill that need, and this way, the market itself will see to all the needs of the population.

As i pointed out in a previous post, the only truly "free market" we have is the one for widgets, and in recent years there has certainly been an explosion of new and exciting widgets. Cell phones that take pictures and let you surf the internet, portable music players that can hold your entire CD collection, and so on.

The big problem is that our participation in most markets is not fully voluntary. Most of us cannot stop buying food or selling labor. In other markets the choice not to participate could create considerable hardship or reduction in quality of life -- housing, clothing, heating, medicine, and so on. Other products are physically or psychologically addictive; these have historically been very profitable (and have even played an important role in the growth of empires).

A mindset has developed where people are pushed into being "good consumers;" there is a lot of pressure in the media to consider consumption a civic duty, on a par with voting and paying taxes. It is as if producers have come to think of consumption as something they are owed.

It is said that this could be countered by asserting one's independence and will -- and that is true, to an extent. (In the past i have asserted that developing the will and freeing it from archontic/memetic fetters is the original purpose and use of esoterica.) My concern is that people do not seem to have an equal ability to assert their independent will, and for even those who can, there is a lot of pressure against it.

There's the use of memetic programming -- advertisements designed to "colonize" the brain and implant emotional investments in certain kinds of products. This is a modern version of the memeplex i've called Viceroy.

Our educational system appears designed to discourage independence in thought and deed when it comes to the market; children are not taught to research before they buy, to budget their money, to see through advertisement scams. Producers circle around schools and colleges like sharks because young people are fresh meat, more apt to be taken advantage of.

On top of this is the mechanism i've mentioned in previous posts: the fact that those who come to the market with an existing disadvantage find that disadvantage amplified. Those whose access to the market is limited, or who operate with limited information, will find themselves taken advantage of. For example, it has been well documented that the poor pay more for things; those who sell primarily to the poor charge more because they can. Markets in poor areas of town charge more; poor people without cars are much less able to take advantage of price competition. The poor are charged higher interest rates and are even encouraged to express gratitude for having the opportunity to show they aren't a "credit risk."

The profit motive also encourages dishonesty. In the last few years the American public has been subjected to a plethora of greed-driven scams, some of which affected whole sectors of the population. The stock market crash of 2001 could well be the largest scam in history; New York A.G. Eliot Spitzer (my hero!) is still rooting out the corporate culture of unethical practices in the insurance and stock brokerage industries. Enron engineered an energy crisis in California in 2002 before it crashed. Don't forget Ford and Firestone; Vioxx; war profiteering in Iraq by Halliburton and MCI/WorldCom; and on and on and on.

In the absence of effective laws and enforcement promoting and preserving market competition against oligarchy, monopoly, and monopsony, and in the absence of a culture promoting and preserving individuality and will, the market will inevitably devolve into an oligarchical collective, where rich merchants and industrialists warp the political and cultural landscape via influence peddling and advertising to suit their greed.

So an economic system that trusts the profit motive cannot possibly be just. In the absence of true freedom, the market amplifies social stratification and turns those at a disadvantage into prey.
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Since i can't sleep, i thought i'd reply to a locked conversation that took place with a friend regarding my free market post. This friend is a free-market supporter, but was not one of the true targets of my sentiment, since i do not question hir compassion and commitment to genuine human freedom.

In a subtle way it was a Hurricane Katrina entry, because i am still fighting anger and disgust towards those who have sought to argue that the plight of the poor in the hurricane's aftermath was basically their own fault; or, alternatively, that it was the fault of the welfare state for putting people in a state of "learned helplessness." I am still angry and indignant towards victim-blamers who can't stand to see direct evidence of class oppression and exploitation in our society.

If ever there was proof of it, there it is.

I feel strongly that no free market exists, and furthermore that the free market cannot possibly exist (except possibly in a post-scarcity world). In my opinion the dehumanizing effects of commodification, the coersion exerted by creature needs for necessities, and involuntary participation in the labor market by anyone not independently wealthy, are fatal flaws.

That said... i am short on proposals to the contrary. I have leaned of late towards anarcho-socialism. Criticisms of government along the lines of those offered by the mutualists have stuck with me; also the thoughts of the Austrian school regarding cronyism and corruption as a human failing preventing implementation of just free markets; and i have written about the tendency for problem-solving edifices to become problems in their own right for future generations. I am aware of the failures of attempts to institute a socialist government that protects human liberty or civil rights. So i am under no illusions that socialism is necessarily the best antidote for market injustice.

I am also concerned about the potential for intellectual dishonesty that is brewing in my thoughts. To say that the failure of a free market to exist is due to an inherent flaw in the idea of the free market itself, while the failure of socialist democracy to exist is not due to a similar inherent flaw but rather of incidental problems, does not rest easily with me.

I feel i know where i stand, but just yet i feel uncomfortable walking in any one direction.

The idea has been lurking in the back of my mind that a culture which genuinely values life and accepts and celebrates diversity would find ways to alleviate the effects of inequality among its people regardless of the political or economic system it used. So perhaps our foremost goal should be the nurturing of such a culture. I fear, though, that commodification and starvation present insurmountable obstacles in the development of such a culture. (Perhaps i should be less willing to say never with regards to socio-political theories.)

Where does it begin? Where does it end?
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Brace yourself for this one.

Oil companies came under new fire yesterday when it emerged that ExxonMobil's profits are likely to soar above $10 billion this quarter on the back of the fuel crisis.

That's $110 million a day, and more net income than any company has ever made in a quarter. It's also a stunning 69 percent increase over the same period a year ago and a 34 percent jump from the $7.6 billion Exxon made just last quarter.

"Do you realize President Bush has just given a tax break to ExxonMobil?" thundered Rep. Ed Markey (D-Malden). "Of all the companies in the history of the world that needed a tax break, this month, ExxonMobil should be at the bottom of the list."

... Even oil company shareholders were critical. Hub fund manager Lee Forker, the head of New England Research & Management, said the profits reflected a failure of oil companies' leadership to invest in future production. "They're maximizing present cashflows and ignoring the future," he said.

ExxonMobil is spending about $5 billion a quarter buying back its own shares.

Forker says the oil companies bear responsibility for recent shortages, because they have held back on investment in new production for years due to a fear of a price collapse. "It could just be a big scam – 'Let's just restrict the supply along with the OPEC countries and we'll all get rich together,'" he said.

from Exxon's $10B fill-up: Cashing in on crunch (thanks to [livejournal.com profile] brontosproximo for the link)
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I am becoming anti-capitalist, but I don't know yet what would better replace it. Here's the process by which my thought is evolving.

1. What seems to me the most reasonable system is a free market, regulated to the extent that this is necessary to ensure competition and level access to all buyers and sellers. A democratic government would provide public goods like infrastructure, civil defence, and public order.

2. The problem is that any public solution that is put in place by honest people becomes a system that is, within a couple of generations, entirely corrupted. Industry convinces politicians to put its yes-men on regulatory boards, so that over time the wolves are watching the hen-house. This leaves us with the illusion of a regulatory system that claims it watches out for the public interest while increasing the opportunity for exploitation. See, for example, how the FDA and big pharma collude to mass-market poisons to the public as "medicine." Merck has, with one substance, killed over 38,000 people and hid the evidence for years while continuing to profit madly from Vioxx. There has been no public outcry whatsoever, because people trust the FDA to protect them. But also, I think there's a sense of fatalism; a sense that if we can't trust the FDA, what can we do instead that won't be similarly corrupted by cronyism?

2a. The only hope for counter-cronyism seems to be the fact that for many industries, there is a complementary industry whose profit depends on keeping the others honest. For example, the insurance industry stepped in and started doing its own auto crash testing when it became clear that the government wasn't setting safety standards high enough. The problem, though, is that while this does help keep the auto industry somewhat more honest, it doesn't always benefit the consumers, because the insurance industry makes its money by doing what it can to avoid making payouts, and there is no real market balance to help, because in an important sense there is no competition: once an accident has occurred, you can't shop around to find the insurance company that will pay you the most. Sure, if your insurance company doesn't pay out when you have an accident you can switch insurance companies, but that does you're current situation no good. Officially there is recourse to the attorney general, but if this is an elected official, chances are his biggest campaign contributions came from insurance companies -- see point 2, "cronyism," above.

3. The profit motive itself seems a unversal corruptor. Far from encouraging "rational market behavior," it inspires people to look for ways to flout the rules in order to increase those profits. The more competitors there are in the marketplace, the more scarcity there is, and the more greed is favored. Game theory demonstrates that people will cheat when they can expect to get away with it. There is no economic arena where in general this has been false. So long as people are able to convince themselves that real people "out there" are not affected adversely by their market decisions, they need feel no remorse at the likelihood that their gain comes at someone else's loss. In theory, the open-information, profit-driven free market helps everyone; in practice, there is no way around the effect of greed.

4. Greed and cronyism find considerable opportunity in the vulnerabilities of those who come to the market at a social disadvantage. Members of all disparaged groups -- whether they are categorized by gender, race, religion, class, size, disability, neurodiversity, sexual orientation, or gender identity, find themselves coming up short in the labor market. To begin with they do not have equal access, which creates opportunity for exploitation for those not thusly disadvantaged. It is not an accident that in the U.S. the captains of industry, the heads of the bureaucracies, and the elected officials are disproportionately white, male, Protestant, upper-class, slender, "sane," straight, and cis-gendered. Exceptions are rare enough that they are newsworthy. Even to the extent that there is a meritocratic system, access to education and valuation of one's merit is biased in favor of those who have social advantages -- those who can "dress for success" and speak "WASPishly" enough. What with people taking any advantage they can find, and the privileged operating the level-making frameworks (such as judges or arbiters who preside over discrimination or labor-fairness lawsuits) with cronies, the slant is so strongly in favor of those with privilege that even initiatives like affirmative action and collective bargaining have done little, across society, to counter it.

4a. This combination of factors has already given us patterns like "the war on (some) drugs," in which common behavior has been criminalized in the name of "public protection." There is quite a bit of violent crime involved with the drug trade, but not driven so much by the use of it, as by the self-interested behavior that occurs in a completely unregulated system. Competing vendors feel entitled to whatever means will ensure them greater market access; and addicts, scrambling for survival in a politcal and economic system that ostrasizes them, become increasingly desperate (whether they are junkies who live in squats or tweakers who live in Manhattan penthouses). This pattern has seen the growth of a "prison-industrial complex" that actually has incentive to incarcerate people, especially for drug offenses where current federal rules allow police to confiscate and sell all kinds of personal possessions, and companies who now can have products made cheaply by effective slaves thanks to entities like UNICOR. (At least such products are "Made in America" -- which by the way has the most highly incarcerated population in the world.)

5. Advertisement has become a system whereby the consumer's brain is colonized with a consumerist mentality that puts "blinders" on us, and causes us to treat our consumer obligations as if they were integral aspects of our survival. How else would people go along with the drudgery of factory or menial office work, if they were not convinced that they needed "money" in order to survive (and by survive, I mean buy clothing in the latest fashions, the cool new CDs and DVDs and the cool new gadgets to play them on, etc.)? People facing the inability to pay their debts panic as if they were facing a predator -- people talk about their credit rating in anxious tones as if a dip would create a life-threatening emergency. Cigarette companies don't just sell cancer-sticks, they sell "masculinity in a box," wearing a poncho and riding a horse across the plains. The diet industry doesn't just sell starchy low-fat food, it sells a promise of salvation.

Since these seem to be problems that are rooted in human nature, I don't think that lasting solutions can be developed in the framework of a capitalist republic. I'm not sure, though, what to advocate as a solution. Should we fight the present battles within the current system against greed, cronyism, and class exploitation, knowing that our solutions will eventually become our children's problems? Would stronger ethical instruction during childhood produce a generation that is more compassionate and generous?

Or is the solution a truly radical overhaul that tears down not just institutional edifice, but what I've come to call "the tyranny of the written word," the use of contract and law as tools of dehumanization and exploitation? I don't want to throw the baby out with the bathwater, though; between honest people, a contract can be an instrument of mutual benefit.

Is the current system the best we can do? Without it, how could we see to things like environmental protection, defense of equal opportunity, and caretaking of the ill and disabled, which are best handled as public issues?
sophiaserpentia: (Default)
Many of the people with whom I've been debating economics in the past week and I agree that the present American political and economic system does not represent a true free market. We also seem to agree there is solid theory to back up the idea that the free market is the best way to generate wealth and establish the most efficient use of scarce resources.

Where we seem to disagree, is on what is required to bring about an efficient and humane distribution of resources in society. My concern is that the gap between reality and theory is too wide for an implementation of a "true free market." Humans are not perfectly rational beings; the information needed to make fair judgments is often not available, often being deliberately hidden; and stratification in society prevents people from having equal levels of access to the market (as both buyers and sellers). People are not always free to make choices with regards to certain products or services (like healthcare) and can be coerced into less than efficient purchases. Therefore the ability to provide certain goods and services translates into a degree of power which creates an inequality between buyer and seller -- even if there is perfect competition between sellers. Lastly, not all humans are compassionate or ethical, and are willing to exploit -- IOW, use what advantages they have to acquire more resources at the expense of others.

Thus without an effective social mechanism (like government) to provide a measure of "leveling" to check inequalities between people in the marketplace, inequalities in the "playing field" of the free market will tend to be amplified over time. The difficulty then becomes, creating and maintaining an effective government.

The system of oligarchical collective which exists in the United States is what the free market will morph into without sufficient checks and balances. Just as a black hole will form when there is sufficient mass centered on one location, an oligarchical collective will form when there is a sufficient degree of disequilibrium.

Because there are few available alternatives for buyers and workers, the collective is able to warp market mechanisms so as to co-opt or circumvent them, by way of "gentleman's agreements" causing prices to rise and wages to fall.

The collective is able to manipulate and increase consumers' dependence on its goods or services -- either because these goods are essential (medicine, food), or because they are addictive, or because the collective can literally re-structure society so that people are dependent on what was once a luxury. For an example of the last, consider how urban geography has been changed in the US so that it is literally impossible to exist without a car in many places. Consider how difficult it is to exist without a telephone.

If there are levelling or regulating authorities in effect, the collective is usually able to staff these authorities with pro-collective cronies, thus providing the appearance of ineffective regulation.

The collective is also usually able to co-opt and warp political discourse so as to remove scrutiny of its activity (as [livejournal.com profile] anosognosia described cogently here).

The collective is not sustainable, because it quickly runs out of local resources to sustain it. Therefore it reaches out and creates an empire, using force and coersion to feed itself. Eventually it consumes all available fuel and burns out, but not before destroying many lives.

The collective enlists all of us as collaborators (most of us are employed in jobs that in some way contribute to the betterment of the collective at the expense of someone), and then pulls the wool over our eyes by warping social discourse.

Examples of oligarchy and empire abound in human history. It seems a virtually inevitable result of imbalance in the free market.

The free market is a fragile utopia. It does, however, provide the basis for a system that could be realized, if there is absolute insistance on "sunshine" and effective regulations to protect the economically disadvantaged.
sophiaserpentia: (Default)
Today I am basically issuing a "convert me" challenge to libertarians and anarchists on my friends list.

Can you show me how privatization and de-regulation usually results in better services at better prices, despite the many instances about which I have read where these lead to higher prices or declines in service quality?

Can you show me that government regulation makes people worse off than they would be without it? That any benefits to the public over the last 100 years in the areas of food, product, and occupational safety would have been even better without government involvement?

Can you show me that 41 million uninsured Americans are better off -- financially and health-wise -- without insurance than they would be under federal single-payer healthcare?

Can you show me that people with disabilties were better off before the Americans with Disabilities Act, or would be better off without it now? Are they better off with public assistance, or are they better off relying on family wealth and charity?

Can you challenge the "Economics 102" assertion that the free market cannot provide as efficiently as public or publically-monopolized enterprise for public goods such as roads, education, and national defense? Edit: can you also show me that the environment would be better off without pollution controls?

Take note that you do not have to convince me that capitalism is the best economic system; I already believe that. I believe that it is better at creating wealth than any other system. However, I do believe in checks and balances and I am not convinced that the free market has them inherently. I am concerned that without some sort of oversight, that the free market will inherently find its way into a state of oligarchical collectivism -- via the way that immense capital can distort the market (analogous to mass distorting space and time) to shape market actions into a pattern of greed, exploitation, and ultimately oppression.

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