Zonie63 -> RE: Another interesting article... (7/29/2014 7:31:46 PM)
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ORIGINAL: DesideriScuri What really grates people who support Capitalism is criticism of Capitalism when it's not really Capitalism at work. The Corporatism we have today isn't really Capitalism. Therein lies the issue. Fair enough, but why is that capitalists are the first ones to balk whenever someone wants to move the system away from corporatism? You complain about corporatism, but why go against proposals which would curtail or possibly end the corporate stranglehold on our nation and economy? Today's corporatism is the result of implementing policies that the capitalists wanted back in the 1980s and 90s. You may not like corporatism, but you can't deny that it's because of ardent support of capitalistic policies that got us here in the first place. Deregulation, free trade, and other maneuvers designed to benefit the free market/private sector interests clearly did just that. Corporations are also part of the private sector, so it was only natural that they would wind up at the top of the food chain. Capitalists typically refuse to see this as a consequence of the ideology they support. They seem to believe that any problems within our economy must be due to some nefarious intangible "communist plot" or something. It can never be due to anything they did or supported. It's always somebody else who is to blame. quote:
I linked to the article, brother! I wasn't going to quote it all out, but give a synopsis. You asked, so... quote:
The first factor is simple ignorance. Few people credit capitalism for the fact that they “enjoy amenities that were denied to even the most prosperous people of earlier generations.” Telephones, cars, steel-making, and thousands of other advancements are all “an achievement of classical liberalism, free trade, laissez faire, and capital” — with the driving force being the profit motive and the deployment of capital used in the development of better tools and machines and the creation of new products. Take away capitalism and you wipe out most or all of the extraordinary progress that has been made in raising living standards and reducing poverty since the dawn of the Industrial Revolution.
That's still a somewhat narrow and limited viewpoint which doesn't change my earlier point. This only looks at the good points of capitalism and ignores the bad, and it also completely disregards a plethora of other historical factors leading to the rise of Western power and prosperity in the 18th, 19th, and 20th centuries. This guy makes it sound like Capitalism descended in like Tinkerbell and magically transformed the world. In short, it's not "ignorance" that he's addressing here. It's a lack of worship. quote:
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2. "The second factor is envy, the green-eyed monster, which causes many people to think they have gotten the short end of the stick." This is possible as a peripheral factor, although this should be expected as a natural reaction to any form of inequality or disparity in wealth. One problem here is that this statement carries the implication that there must necessarily be a "short end of the stick" in a capitalist society. It demonstrates ideological thinking and an inability to think outside the box. quote:
The second factor is envy, the green-eyed monster, which causes many people to think they have gotten the short end of the stick. As Mises observes: “Capitalism grants to each the opportunity to attain the most desirable positions which, of course, can only be attained by the few … Whatever a man may have gained for himself, there are always before his eyes people who have outstripped him … Such is the attitude of the tramp against the man with the regular job, the factory hand against the foreman, the executive against the vice-president, the vice-president against the president, the man who is worth three hundred thousand dollars against the millionaire, and so on.”
I would find this view to be a bit of an oversimplification. Not everyone in this world is gripped by envy, but envy can very easily lead to ambition and greed which might lead to a favorable outcome from a capitalistic viewpoint. quote:
The "short end of the stick" mentality isn't a necessity, but it's a reality. I'd love to make Lebron James type money, but I quite easily admit to not having the abilities that he has and is getting paid for. But, I don't begrudge him getting paid what he gets paid. Just as long as wages stay high enough so fans can continue buying tickets to his games. He won't be earning that kind of money if people can't afford the tickets. You don't want the "short end of the stick" to get too short. quote:
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3. "And finally, the third factor is the unceasing vilification of capitalism by those who seek to constrain or destroy it. " This is a circular point, as much as saying "people hate capitalism because they hate it." Nothing to address here. quote:
And finally, the third factor is the unceasing vilification of capitalism by those who seek to constrain or destroy it. As Mises notes, the critics and anti-capitalists go on telling and re-telling the same story: saying that “capitalism is a system to make the masses suffer terribly and that the more capitalism progresses and approaches its full maturity, the more the immense majority becomes impoverished.” Well, it's not exactly so far off the wall as the author implies here. After all, Malthus and others of that ilk during the early days of the Industrial Revolution gave their own unique "moral justification" for the very atrocities which took place in the early days of capitalism. Of course, that was before a number of revolutions and wars gripped Europe and forced capitalism to make a few changes. In the US, similar changes had to be made, which ended the excesses of capitalism which characterized much of our history throughout the 18th, 19th, and early 20th centuries. Things started to get better for the average citizen as capitalism became more restrained and regulated. But in recent decades, capitalists have been balking against that, saying that they don't want to be restrained and regulated anymore. They wonder why people are against unrestrained, unregulated capitalism, but given our history, it shouldn't really be that great of a mystery. quote:
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If capitalists are losing sleep and worried that people would "renounce freedom and voluntarily surrender to the suzerainty of omnipotent government," why can't capitalists try to offer a better choice and show some willingness to negotiate and compromise? That's where they lose credibility, since a little flexibility on their part would work wonders right about now. But time and time again throughout history, we've seen political systems overthrown and countries turned upside down, mainly as a result of those in power being too stubborn, arrogant, narcissistic, and egotistical to give even just a little bit. When facing such a brick wall of ideological intransigence, what can people do? What choices do they have? What would capitalists be willing to give up in order to avoid "the suzerainty of omnipotent government"? If capitalists simply raised wages on their own - before they're asked to, before workers threaten to go on strike, before the government forces them to raise wages - then they could avoid a lot of the "unpleasantries" that come with government interference. But no, they stubbornly stick to their guns until the issue is forced and THAT'S what brings about all this loathing of capitalism. I'm not saying that capitalism is ALL bad, but it's not all good either. As long as capitalists are willing to acknowledge this and willing to negotiate on a fair and objective level, then perhaps a balanced compromise can be achieved which would help us all sleep better at night. What are they willing to offer? Maybe if capitalists actually tried to look at this issue as practical business people rather than as rigid ideologues, they might be able to come up with better ideas. Another aspect that needs to be examined is not just economic but the overall condition and position of the country as a whole. The role of the government in the economy became more predominant largely because it was necessary for our national security, such as active intervention in the free market during WW2. The government determined that the nation's survival was at stake, so they had to do what was practical - even if it mildly broke some of the tenets of capitalist orthodoxy. Back then, they were willing to be flexible for the good of the country, but I don't see very much of this flexibility among capitalists of today. Therein lies the problem, Zonie: finding the right mix of Capitalism and Government. There are those who want more G than C. There may be people who don't want any C, unless it's really all G. There will be those who want no G at all, too. Then, there are those people who want more C than G. Within that last group (and within the first group mentioned), you're also going to find people who are going to argue about the specific levels of both. It's not surprising to me. The problem we're facing today is that society is just too big and complex to expect it to run efficiently and orderly under laissez-faire conditions. Even back in the early days of cars, steel-making, and telephones (which the author credited to capitalism), there was also a great deal of violence and other labor unrest, in addition to other problems our country was facing. Eventually we realized that we really couldn't have laissez-faire capitalism and become a superpower. Now that the powers that be have been pushing for a global economy and free trade, it makes the bigger picture all the more complicated and large. We can no longer think of capitalism as simply an isolated exercise that we practice within our own boundaries. If we have a global economy, then we have to consider the global ramifications of whatever we do. That's the reality that we're stuck with now.
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