RE: MD the ideology of capitalism - what is capitalism?

From: David Buchanan (DBuchanan@ClassicalRadio.org)
Date: Sun May 22 2005 - 20:39:13 BST

  • Next message: Mark Steven Heyman: "Re: MD The Carousel of Faux Philosophy"

    Sam, Mark and all MOQers:

    msh said to Sam:
    Capitalism is a socio-economic system in which the means of production of
    essential goods and services are privately owned and managed by individuals
    or small groups...

    Sam replied:
    Well, to nobody's surprise, we have different understandings of what
    capitalism is. In my understanding of capitalism, all of the above
    options are capitalist, in so far as there is a conceptual embodiment
    of physical resources (ie an extension into the fourth level of the
    MoQ, allowing the conceptual embodiments to go off on purposes of
    their own). I note that you haven't tried to link in your
    understanding of capitalism with the MoQ.

    dmb says:
    Conceptual embodiment of physical resources? I think Sam's position here
    reflects Platt's view but not Pirsig's. Let's not forget that he has
    explicitly described money as a measure of social value and has explicitly
    described the conflict between capitalism and socialism and part of a wider
    conflict between social and intellectual values. We can examine capitalistic
    systems intellectually and ecomonics, econometrics and a number of other
    academic disciplines are dedicated to doing just that, but that doesn't make
    the marketplace intellectual nor does it necessarily mean that the economy
    is intellectually guided. I mean, we could discuss the science of water
    treatment plants, but that doesn't mean that sewage is intellectual.
    Further, your pal de Soto seems to think that law and order is some fancy
    new idea, as if contemporary economists just dreamed it up. But all he did
    was point out the most obvious requirements for civilizaton itself. Heck,
    ancient Babylon and Egypt had law and order and created great wealth out of
    that organization. That's pretty much the definition of civilzation and
    could be applied to Sparta and Amsterdam equally. But anyway...

    sam said to Mark:
    If so, it seems to me that the heart of the description rests with
    the question of _control_, and is not an economic description as
    such. In other words, it doesn't engage with economic questions, only
    with political questions.

    msh:
    Well, political decisions can have direct effects on the economy, so
    I wouldn't make such a sharp distinction. That's why I talk about a
    socio-economic system, rather than just an economic one.

    dmb says:
    Right. The phrase "political economy" is a little like "timespace" and
    "Judeo Christian". One can make the distinction for purposes of clarity, but
    they are also inter-related in an almost organic sense. As I understand it,
    there are very few cultures where wealth and power do not go hand in hand.
    Its one of the most basic features of the great civilzations, the richest
    guy was king, not least of all because that meant he could afford to keep
    and army and such. Obviously, there are lots of differences between
    corporate capitalism and a monarchy, but without intellectual guidence it
    still means that the richest guys are running the show. The US congress in
    coin-operated, baby. The laws are often literally written by vested
    interests and passed by those who recieve large contributions from that same
    vested interest. Its become a government by, for and of the corporations.
    (There is a fabulous documentary called simply "The Corporation". Check it
    out. Netflicks has it.)

    msh asked Sam:
    If De Soto really does have at heart the best interest of the poor, why
    would he advocate a system that requires private rather than community
    ownership of land and resources? The vast majority of people in so-called
    third-world countries don't own land.

    sam replied:
    Well, as I said before, de Soto is NOT advocating a system that
    requires private rather than community ownership. He is advocating a
    system that transposes the enforcement of ownership from social
    customs and physical power (levels 3 and 2 of the MoQ) onto the
    conceptual level 4. So community ownership of the HEP and lake is
    just as capitalist as private ownership of the HEP and lake,
    according to de Soto's analysis.

    dmb says:
    Community ownership is just as capitalist as private ownership? Again, I'm
    with Mark. I think it would be confusing to call that capitalism. And it
    seems to me that its correct to say that, since the dawn of civilization,
    economies have been guided by social customs/laws and have been protected by
    cops and armies of some kind, have been enforced through physical coersion.
    And that will never go away entirely, I suppose. But an intellectually
    guided economy will, ideally, ensure that the laws are based on principle
    rather than custom and the law enforcement officals are charged with
    protecting those principles rather than just being thugs for the man. In
    other words, money and power are not allowed to trump rights. We don't just
    have laws. Moses had laws. We have laws ABOUT laws, see? Property rights, to
    the extent that they only protect the rich guys ability to exploit the poor
    guy, is unlike the other rights. I'm always suspicious of thinkers who
    trumpet property rights as if it were the only right worth having. When the
    rights of property owners is the only principle mentioned, I smell a rat. It
    wasn't so long ago in the Western world and in my own country, that property
    owners were the only ones with rights, which makes them priviledges and not
    rights at all. Would anyone like some cheese?

    msh said to Sam:
    ........To simply grant legal right to existing landholders without
    consideration of how they acquired the land in the first place is not going
    to work. That is, we first need to institute some idea of agrarian reform.

    sam replied:
    There is here, though, the issue about individual rights. Your analysis
    seems to give all political control to the group. I'm not sure how that
    allows any transcending of level 3 (leaving aside the wider questions).

    dmb says:
    Here you seem to be making the classical Randian distinction between
    individuality and collectivism AND equating that with the intellectual and
    social levels repectively. I think this is a huge mistake. Its a concept
    that just doesn't work. Consider, for example, Jefferson's assertion in the
    Declaration of Independence that governments are instituted "in order to
    secure these rights". Then there is the interstate highway system, another
    collective effort that allows individuals more freedom, not less. These
    rights and freedoms, like the laws of any civilzation, depend upon
    collective security. Now, its certainly true that individuality and
    individual rights are a part of the rise of the intellectal level, but the
    point is that even those principles have a collective feature. Everything
    does. Think of contextualism and the idea that our language is a kind of
    collective possession, a intersubjective space we all share. This is true at
    the intellectual level too. Think of trying to do science or math without
    such a collective structure. It would be impossible to even add 2 plus 2
    with a common meaning for the terms. And in the Jeffersonian assertion, we
    collectively form a government and collectively pass laws and collectively
    pay for and train the police - to protect individuals rights, rights we all
    have in common. You see my point? The rights of individuals cannot rightly
    be secured except collectively and lose their meaning if they aren't
    extended universally. I'm not denying the distinction, I'm just saying that
    it can't be used to mark the difference between Pirsig's static levels.

    sam said:
    Or, governments in third world countries can copy the example of the
    United States government during the nineteenth century and bring the
    extra-legal economy within the bounds of the legal economy, thereby
    enabling the transition from lower level economic relationships to
    the level 4. It was those actions of the US government during the
    nineteenth century which enabled the creation of wealth. This does - let me
    hasten ;-) to add - ignore all the questions of destruction of the
    indigenous American tribes etc.

    msh replied:
    Glad you added the wink above. The "liberation" of wealth in the US
    up to the 1930's is neither an equitable nor a pretty picture. The
    level 4 economic solutions embodied in The New Deal, along with the
    massive injections of state cash due to WWII, had the positive effect
    of preventing violent revolution, but at the same time saved the ass
    of unrestricted capitalism, which, somewhat controlled during the
    40's through the 70's, has come back with a vengeance since the
    Reaganomic 80's.

    dmb says:
    Exactly. That's an excellect way to read it, Mark. The free-marketeers are
    always too quick to portray capitalism as synonymous with freedom and
    businessmen as heroic, to speak of it in terms of mom and pop's dignity, but
    the actual history ain't a pretty picture. I think its safe to say that
    America's wealth owes a great deal to slavery, genocide, to taking half of
    Mexico, to being situated on a huge land mass rich in natural resources. Not
    to mention the industrial revolution and the 19th century's explosion of
    technology. But never mind all that, let's just give all the credit new-age
    Ayn Randians as they conjure up and channel the spirits of Austrian
    economists.

    sam said:
    But as I keep saying, that is the political issue that remains to be
    resolved. My point is that without the conceptual transition from the
    lower levels to level 4 then there is no 'capitalism'. There are
    biological and social level behaviours, in all their complexity,
    nothing more.

    msh replied:
    And I agree that the solution will come from moving to level 4, but
    this does not mean that privitization of the means of production is
    the best idea. That's what we need to decide in this thread, I
    think.

    dmb says:
    Yea, I think the MOQ suggests a political economy that's guided by 4th level
    principles, but in a way that'll keep the market dynamic. Corporations are
    rigidly structured authoritarian pyramids. They funnel money to the top and
    basically depend on exploitaton to function. But they don't have to be like
    that. I think that if the capitalist model has any chance of becoming
    sustainable and consistent with intellectual principles, it doesn't just
    have to adjust with respect to the role of corporations within a democracy,
    the corporations themselves have to become more democratic. Maybe if they
    were employee-owned and directed, maybe if they were set up for purposes
    other than creating bigger bank accounts. The documetary I mentined, among
    many other things, points out that corporations have the same rights as
    individuals under U.S. law. The problem is that corporations don't die and
    they behave as a sociopathic criminal would. It would be funnier if it
    weren't true. Its not that making a profit is inherently evil or anything.
    Don't get me wrong. Everyone deserves to keep the fruit of their labor and
    some people do such amazing work that I can be sincerely happy about their
    well-deserved wealth. Robert Pirsig springs to mind. He created something
    good without exploiting anyone and why shouldn't he be fairly compensated?
    But this is the same principle by which we object to exploitation, which
    deprives the worker of being fairly compensated. As Mark points out, profit
    is generally generated by the difference between the value of the work done
    and the wages paid for that work. Sure, the worker is not the only one who
    adds value to the product and I'm not saying the worker should get more than
    a fair share. I'm just pointing out that in the real world the corporate
    mangers will often make many times more than other contributors, a disparity
    not at all proportional to the actual contributions.

    Here's a thought. American capitalism is tied up with the cultural and
    historical development of the West. And one of the threads that may be worth
    pointing out is the one that connects the protestant work ethic, a kind of
    prosperity theology and social darwinism. Despite the switch from a religous
    to a secular version, I think the latter is really just a mutated species of
    the former. In either version there is an underlying idea that wealth and
    poverty are produced by the character of the individual. The Victorians held
    the view that the rich were rich because God loved them more. Pirsig
    mentions of Veblen's "THE THEORY OF THE LEISURE CLASS", which shows how the
    Victorian's "conspicuous consumption" was basically a way of saying, "Hey,
    look at all my horses and the too big house. God loves me more than you."
    And then when we get to the secular 20th century version of this, we get the
    idea that the rich are rich because they're smarter and better able to adapt
    to the economic enviroment. Survival of the fittest, baby, and the rich eat
    the poor, who are just too stupid or lazy to get with the program. In both
    versions, insult is added to injury. In both cases, the victims of injustice
    are told that they deserve it and that's just how things are.

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