Navel gazing

With all the talk about "democratic socialism", these days, including attempts to define the term that make it essentially indistinguishable from "New Deal Democrat", I've spent some time thinking about how I would describe my own political/philosophical leanings to an interested stranger. Every day is different, but today I am thinking "radical democratic socialist" because I do NOT think that capitalism with a human face is sufficient. Private ownership of capital is essentially incompatible with democracy (which is why I've sometimes argued that "democratic socialism" is a tautology). Further, paying people, let alone paying them generously, just for owning stuff, let alone just because they already own a lot more stuff than anybody else, is morally indefensible.

On the other hand, I need to add something like "pragmatic radical", because I know that wishing don't make it so, and I do not believe in letting the best be the enemy of the good (or even of the "better than now"). Morally, it is better to do something to make things better, for at least some people, than to do nothing. Pretending to a high moral stance from "keeping your hands clean" is not actually better, morally, than being "compromised" by accepting, and working for, limited reforms. Life is short and (to quote a prominent liberal), in the long run we are all dead.

This leaves out a lot. Feminism, anti-racism... or, better, pro-POC... "embracing" LGBTQ (a phrase I learned recently from a friend, and like so much better than "ally"). I like to think of socialism as not limited to the economic realm. Socialism is democracy, taken to its ultimate conclusion. Socialism is the end of all exploitation, all preferential advantage or privilege of one group over another, for whatever reason, from whatever source.

Taxes

It is true, as I understand it, that the modest amount of progressivity left in the Federal tax code means that most income taxes are paid by people who are at least moderately well off. It is also true that Federal income taxes, proper, are only a part of the overall tax burden, and when you factor in other taxes (FICA, sales taxes, gas tax, state income tax, real estate taxes) the overall tax structure in this country becomes regressive (poorer people pay a higher percentage of their income in taxes, overall, than rich people, and MUCH lower than the super-rich. That is a reason activists often give in explaining why having rich people pay more in income taxes is fair.

But there's another reason I think is even more important. Wealth, ALL wealth, ultimately derives from profits - i.e., from something like a rent for the use of your property - and not from labor. This is true even if a high income is disguised as salary. NOBODY's labor is "worth" more than 200 times the median. Ultra-high CEO salaries come from their ability to control property (their own, and that of shareholders).

And profit is essentially a privatized tax - a tax that we pay on every good and most services that we consume, but that goes strictly to the benefit of a small class of individuals. (Small in percentage population terms; rather large in absolute numbers.) Profit represents the owning class blackmailing us by threatening to withhold the means of production, which would mean that we could not, with our labor, produce anything at all. And the more that wealth becomes concentrated, the stronger the stranglehold that property has on us, and the more they are able to squeeze out.

What progressive tax rates do, in a capitalist society that refuses to simply expropriate private owners, is to reclaim part of that private tax, for the public benefit. More progressive tax rates actually represent a LOWERING of the private tax that is capitalist profit.

And that is why progressive taxes are fair.

Government control

One “common sense” argument put forth against socialism, in the (limited) sense of direct government control over the economy, is that the government cannot be trusted to invest wisely.  They may keep non-viable enterprises going, for example, pouring in money drawn from better-performing portions of the economy, in order to win votes.

As a prima facie argument, this strikes me as silly.  After all, private capitalists cannot be trusted to invest wisely, either, and to the extent that they do, they invest for their own benefit, not ours, and the public weal follows as a side effect, if at all.  It’s not that I don’t believe in the existence of the “invisible hand”.  I just think its reach only extends so far.  Maintaining jobs in a money-losing business that produces a useful commodity may actually be a perfectly reasonable public investment in some circumstances, but not one that would ever appeal to the private capitalist.

On a more detailed, implementation-focused level, of course the anti-socialist objection is not entirely ridiculous.  If we have publicly managed investments, we do want them to be managed well, and managing investments well is not a trivially easy job.  We also need to protect ourselves from outright corruption.  Addressing these issues is partly a matter of management, of checks and balances, of trying to design a system as free as possible from irrelevant, systematic distortions.  But to get a well-balanced, robust plan of public investment that takes all direct and indirect costs and benefits into account, I think we would need a much more participatory planning process.   (Note that taking ALL direct and indirect costs and benefits into account is something that capitalist enterprise management NEVER does.)

Can we get a suitable democratic planning process within our current models of government?  I do not believe in the blanket statement, asserted by some on the left, that “you cannot tear down the master’s house using the master’s tools.”  But some of the master’s tools are in fact rather specifically engineered to serve the master’s purposes, and are not so readily adapted to the needs and purposes of the folk.  In my mind, our really-existing systems of representative government are examples of such tools.

Representative governments originated, in Europe, as a way for kings to appease the aristocracy, and eventually the richer bourgeoisie, without ceding too much central control.  Some constitutions, of course, were constructed as a conscious break with the rule of kings; however, the one such “revolutionary” constitution I know something about – our own in the U.S. – was consciously created to keep hoi polloi at arm’s length, and guarantee effective control by the richer classes.  Obviously, there have been modifications in these constitutions over the centuries, most of which (I think)  have been in the direction of greater democratization, but there still is a long way to go.  Most ordinary folks participate in democracy only by spending ten minutes every 2-4 years in voting  (if they even do that).  “Debate” takes place between politicians and pundits in the commercial news media (primarily), and is, to most people, at best a spectator sport.  People’s own discussions tend to take place amongst small groups of their own friends, and can influence the broader process of policy formulation only to the extent they happen to be queried through the passive (and eminently manipulable) process of polling. 

A truly democratic process would have people involved in interactive debate, with both themselves and opponents as participants; a debate taking place in a public forum that fed directly into the decision making process.  Listening to arguments pro and con, and being forced to make a meaningful decision afterwards, focuses the intelligence, I believe, like almost nothing else.

The punditry would assure us that people just don’t want to be that involved in their own government.  Maybe that’s only because they’ve never had the chance.

Madness foisted

Does anybody remember when Kleenex boxes just had a hole in the top to get the tissue out, and didn't have a slotted piece of plastic film glued around the hole to hold the next sheet in position?  Why did they change this?  Did anybody have a real problem getting the next tissue out of the old boxes?  Seriously?  The old boxes were simple, and about as cheap as they could be.  The new boxes are probably cheap, too, but making a box and gluing a sheet of plastic in it MUST be at least a little more expensive than just making the box, and it is more harmful to the environment to use the extra material, especially a non-biodegradable, petroleum-based plastic. Why?

Another of my pet peeves is coffee cup lids.  I drank coffee on the go for many years when the cups had simple, tearably-thin plastic lids with no holes to drink through.  I never had a problem getting my coffee out (improvising a sipping hole if-and-when I needed one), nor did any of the other coffee drinkers I knew.  But over time, all the coffee shops started providing (and ONLY providing) much heavier lids (more material) that couldn't easily have custom holes torn in them - but had a PERMANENT sipper hole.  The main function of these sipper holes seems to have been to dribble coffee everywhere (usually all over your clothes) while you were walking to your destination with the cup.  After several decades of this madness, some coffee shops started realizing that this was a problem for their customers.  Their solution was to provide ANOTHER thick, heavy piece of plastic to temporarily plug the unnecessary hole in the unnecessarily thick plastic lid.

The theoretical justification of the capitalist marketplace is that it "puts the consumer first" because they have sovereignty over their purchasing decisions, and producers compete to satisfy the sovereign customer.  But the only feedback is the purchasing decision, which comes LONG after the production decision has been made (and after many prior purchasing/production decisions, such as deciding on expensive retooling of factories).  But I don't think consumers were ever clamoring for plastic tissue-holders in Kleenex boxes, or thicker coffee cup lids with permanent sipping holes, and I doubt that many consumers ever made the choices of buying or not buying tissue or coffee based on these features.  These were unnecessary and irrational choices made by producers and foisted on consumers due to the inefficiency of a feedback mechanism so feeble as to be virtually non-existent.

I dream of a more rational economic system in which production decisions could me made deliberatively and collectively in a broad-based social process, and not in isolation and secret by competing cabals of producers, to be "voted on" after the fact by individual consumers acting even more in isolation and faced with limited and complexly aggregated purchasing options.

But, hey, maybe its just me that's gone mad, and not the rest of the world.  Who knows?

All the Money in the World

"If you had all the money in the world, it would be worthless." At the risk of ruining the appearance of sagacity, I will 'splain my thinking.

If "money" is defined as "gold" or "cattle" or something else which has use value as well as value as a medium of exchange, then the statement in my "status" would not be true. If you had all the gold or cattle in the world, it would be worth something. But money, qua money, has value only in its role as facilitating exchange in a functioning economy. If it became TOO concentrated, it could no longer fill this role. Most people having no money, they would have to acquire goods and services they didn't produce themselves in some other way (e.g., barter or rapine), or they would have to introduce some other medium of exchange in lieu of "money" (e.g., cigarettes in prison or post-war Europe), which of course would then technically be money, in which case the people who had concentrated the official "money" in their hands would no longer have "all the money in the world".

In any case, my thought experiment ran that IF you had "all the money in the world" its extreme scarcity would make it useless as medium of exchange, and it would no longer be "money". Of course, social disruption and change (of the political system, or economic system, or both) would happen long before that that time. The relevant questions, to our own radically unequal national and (even more) world societies are: "What kind of change?" and "When?"

The Root of All Evil

The root of capitalism is the principle that the possession of property entitles you to a claim on the fruits of someone else's labor.  There is no moral justification for this.  It is on a par with "might makes right" or "the Devil take the hindmost."  Capitalism is thus corrupt at its very core, whatever social benefits it might be deemed to have in any specific time and place.

The logic of capitalism only makes sense if there is an unequal distribution of wealth.  If everybody had equal wealth, there would be no sense in property employing labor; rather, we would tend to evolve a system where men and women collectively used their property and their labor in order to socially produce things (since social production is more efficient than individual production).  Equal distribution of wealth would tend toward a cooperative society, rather than a capitalistic one.

So capitalism arises only in an unequal society; its essential logic guarantees that.  The logic of the working-out of capitalism increases the initial inequality.  If you have only a small amount of property, it is very difficult to make it grow.  Generally, only your constant labor can keep it from shrinking.  If you have a large amount of property, however, it is very difficult to PREVENT it from growing.  The process of being paid for the use of your property returns the borrowed property plus a dividend, over and over again.  The more property you possess, the larger the dividend.  If the amount of property you possess is very large, it becomes virtually impossible to spend the dividend.  Even if your wealth is a bit smaller, only a modest amount of self-restraint is necessary for savings.  So the wealth of rich people grows and grows.  Yes, it is possible for a wealthy person to "go bust" because of bad investments.  But it doesn't happen very often.  And even a wealthy person who, with great fanfare, has  "gone bust",  generally has more residual wealth than a person who wasn't rich to begin with.  Squalor turns out to be relative.

Capitalism is inherently incompatible with democracy, because capitalism concentrates concentrations wealth, and wealth is inevitably power. There is no way to decouple the relationship of wealth and power.  Regulatory tinkering, such as campaign finance rules, can only act as an impediment, an inconvenience to the wealthy when they act to assert their money-power.  Capitalist countries, then, even with republican governmental forms, tend to devolve into de facto oligarchies.  This process can be resisted only by constant vigilance, to limit accumulation of wealth, to restrain the free political exercise of wealth, to balance people power against money power (unions and voter empowerment campaigns).  This vigilance is a lot of work.  When we have won some improvements, "we the people" tend to slack off.  The capitalists never do.  The differential rewards for them - the incentives - are just too immediate and great.  Thus, when times got somewhat better in the postwar period - at least in Europe, the U.S. and Canada - the people became complacent, and in the mid-1970s the capitalists, with their neoliberal/Reaganite/Thatcherite agenda, counter attacked.  And so, here we are today, with economic inequality and poverty at record levels, with a stagnant economy, but with many capitalists declaring "recovery" despite the fact that so many remain unemployed, many, many more underemployed, and almost all of us economically insecure.

So it turns out that not money, but private capital is the root of all evil, arising only in conditions of inequality, sustaining and promoting inequality, and undermining democracy.  Ultimately, if we want secure and just economies, we need to decouple property and income, by recognizing that all capital is socially constructed, and must be socially owned. 

Casinos, capitalists and class struggle

The rush of Massachusetts to build casinos and other gambling dens makes me crazy.  The casinos are sold to us as a jobs program - this is almost a pure scam.  It is as if the 1% were to hire a small number of the 99% to construct, and then operate, a gigantic vacuum cleaner, the sole purpose of which was to suck money out of the pockets of the 99%, and deposit it in the bank accounts of the 1%.

Compare this with a genuine jobs bill - the Conyers bill, HR 870, which would tax the 1% (through a small financial transactions tax) and use the proceeds to hire some of the 99% to build and repair things (schools, roads, bridges) that belong to the 99%.

In today's political parlance, the second bill – the genuine jobs bill – is considered class warfare.  Casino construction, which employs some people to better exploit others, is not.  Essentially, "class warfare", for the punditry, is a term used to describe anything that acts effectively to the detriment of one specific class - the ruling class.

Even a casual student of Marx knows that the class struggle is not an option - something one chooses to engage in, or not.  It is an inevitable side effect of a class society.  As long as the economy is structured so that one particular class – feudal landowners, slave-owners, or capitalists – derives its income solely and explicitly by the exploitation of others (aka the workers), then you have a class society, one feature of which will be a struggle over the degree of exploitation.

A Keynesian analysis of a capitalist economy suggests there may be some "sweet spot" for the capitalist class, a level of wages that balances off increased demand and economic activity against a reduced profit margin, so as to maximize the capitalists' overall net income.  But there's no magic way to detect this "sweet spot", and the capitalists' greed is such that they will tend to overshoot when it comes to driving down wages.  Also, manipulating the overall wage rate in the economy, so as to manipulate demand, is beyond the power of most individual capitalists, or even cartels. 

At a given level of output and technology, the individual capitalist can only increase his income by increasing the level of exploitation - his profit.  Any such increase in profit comes directly out of the worker's wages.  So struggle is inevitable.  The only question is whether the workers resist low wages individually (in which case the majority of them are bound to lose), or collectively, through labor unions and political action, in which case they have a chance.  It is this latter form of collective struggle that the right wing insists on calling "class warfare".

A genuine jobs bill, like the Conyers bill, would strengthen the working class, lessen inequality, and make the 99% genuinely better off.  The casino alternative plays some in the working class against others, and its overall effect is to further the impoverishment of the 99% with respect to the 1%. 

Some with in the Occupy movement have started saying "They only call it 'class warfare' when we fight back."  I would add that they only call it "class warfare" when we adopt a strategy that might actually win results.

Capitalism has got to go

The other night, Susan and I saw a television commercial for a new and infinitesimally improved type of contact lens, and we thought, "All the money (millions and millions of dollars) that goes into developing and marketing such an unnecessary product as this." (And this is hardly the most egregious example!)  Meanwhile, a 3 year old toddler is being gunned down on the streets of Boston. This is crazy!  It's just crazy!  Capitalism is MANIFESTLY unable to deliver resources according to need, except in the sick, twisted, circular definition of "need" put forward by capitalism's apologists.  We can pay millions for trinkets, but we can’t afford the policing, educational resources and jobs programs that would make inner city youth feel they had real life alternatives other than joining a gang and dealing drugs.  How much longer can we tolerate this monstrous system?

The rationalizers of markets claim that capitalism will reflect peoples “real” needs, as determined by their marginal utility.  That people’s “free market” decisions reflect their marginal utility isn’t really something that can be proven – it’s taken as self-evident.  And since we can’t know what is in people’s minds except by their actions (as expressed in their market behavior), the only way we have to measure people’s needs is by what the market produces.  This leads to the circularity in the argument that says market outcomes are good because the only way we can know what is good is to look at what the market produces, which, since markets satisfy peoples real needs, which can only be measured their market behavior, must be good.

The problem is that market theory fetishizes isolated, individual, decision making models, but this is not the way we make our BEST decisions.  Our best decisions are made collaboratively, after discussion and deliberation with our friends and other interested parties.  That is to say that GOOD decisions are made collectively, deliberatively, democratically.  Classical economics has built a whole theory of “optimal” resource distribution around the WORST kind of human decision making – isolated, individual, selfish, snap-judgments.

Now there’s a word for making economic decisions collaboratively, deliberatively, and democratically.  That word is SOCIALISM.  Socialism gives us a theory of resource distribution based on the BEST kind of human decision making.  Capitalism gives us a theory based on the worst kind.  And so capitalism always gives us bad results.  Capitalism gives us the things we think we need when we’re unconsciously reacting to hormonal stimuli (don’t even get me started on advertising...)  It does NOT give us the things we would REALIZE that we needed if we stopped and thought, listened to other people, and considered what our priorities really were.  And THAT leads to horrible maldistributions of resources in ways that don’t satisfy ANY of the needs that most of us REALLY feel.  As the sorrowing parents of far, far too many murdered children, in Boston and elsewhere about this nation and the world, could tell you.

True Tax Freedom = Progressive Taxation

Soak the rich
'Til there are no more.
When that day comes
There'll be no more poor.

Of course, that's an over-simplification, because it is possible, in theory and at times in history, for there to be poverty w/out wealth. In our age, however, we clearly have the productive technology to adequately provide for every man, woman and child on the planet (although if the population countinues to double every 50 years, all bets are off). Poverty is therefore, in our world, the product of an unjust and undemocratic capitalist system, which orders production and distribution primarily for the needs and wishes of the well-off, and leaves immense numbers of the poor effectively w/out any voice. The solution is for people to become enlightened and rise up, throwing off the mental chains created by the lying propaganda of the Right (e.g., the concept of "Tax Freedom Day"). Progressive taxation is therefore a symptom and an instrument of the solution, and not, of course, the solution, itself.

Anyway, for me, April 15 is not so much tax day as the day my wonderful daughter arrived in our lives.

Random firings

March has been a very busy month. I’ve been doing a lot, reading a lot, thinking a lot, but haven’t had time to sit down and write a coherent blog post. So I’m going to try cobbling one together out of some of my shorter journal entries for the month. I’ve been rereading Dewey’s Experience and Nature (among other things), and much in the following musings is influenced by that. The last, however, was influenced in part by discussions at a recent DSA meeting on Monte Pearson’s Perils of Empire, and by an article by Arthur MacEwan.


3/5/10

Rules of arithmetic have their properties only in virtue of the abstractness of numbers. For instance, consider X&Y chromosomes. Normal human females have two X chromosomes, normal males have one X and one Y. Thus,

F: 2 ea x 1 type = 2 chromosomes
M: 1 ea x 2 types = 2 chromosomes

Abstracted to the level of chromosomes, this gives:

2 x 1 = 1 x 2 = 2

which is valid, but the practical significance of the information lost to abstraction is far from trivial.

In general, classes of things are classes only if the difference between members is unimportant, which is a function of the analysis to be performed, and the level of abstraction appropriate to that analysis.


3/12/10

Reality is always there, it is just-as-it-is. But knowing always involves an abstraction. There is no way to know something just-as-it-is. The notion of doing so is vacuous: there is no meaningful way to understand it. The just-as-it-is cannot be inside your head. What is in your head is a pattern of neurological activity, chemicals, electricity... This neural pattern is associated with the just-as-it-is. They are linked in experience. This linkage is knowing. It involves a process of abstraction (choice from among the full range of experience presented) and analysis (ordering and associations upon the objects of choice).


3/17/10

Confusion around the concept of causation may result from applying (as a metaphor) concepts pertaining to the goal-directed action of sentient things to non-sentient nature. For us, the results of our actions come at the end of a causal chain (or intermediate results come as intermediate points on the chain). We look for the same effect in nature.


3/20/10

When we divide the world into objects, we do so along natural lines of cleavage, but these are not the only lines of cleavage, nor do we always cleave the same reality in the same way. We parse the world into objects pragmatically, in the ways that make sense to ourselves as a species, and also relative to our objectives at a given time. Some other species, or ourselves in different exigencies, would parse it differently.


3/27/10

The logic of capitalist accumulation is much like the logic of empire. If you have a (political) empire (e.g., Rome), even if you don’t consciously wish to expand, there is always trouble somewhere on the border, which entails the risk of losing some part of your existing empire. Losing part of your empire is bad, so the wise course seems to be to “pacify” the unruly neighbor, which as a practical matter means extending the empire.

In an uncertain world, maintaining your existing power is a delicate balancing act – too delicate for anyone to be confident of his ability to do it precisely. The real alternatives will always seem to be either increase your power, or tacitly allow it to recede. Since the second is unacceptable, the first course is followed by default.

In capitalism, power derives mainly from the effective control over property. (Note that this may, or may not be, coincident with formal “ownership”.) The logic of power leads one to try to maximize the power under one’s control, thus corporate growth, thus capital accumulation.

Note 1: A corollary, of sorts, is that capitalists desire to increase the prerogatives of capital, e.g. vis. labor.

Note 2: This logic of capital is very different from the logic of labor. Individual laborers may wish to increase their small store of wealth (purchasing power), but this is not their primary source of economic power. An unorganized laborer’s primary power is in her skills, strength, ability to work. If she is more politically conscious, she realizes that her real power lies in her ability to organize, both into labor unions and politically. Labor unions may accumulate some significant store of funds, but their main source of power lies in the number of workers they have organized.

Note 3: I mean “power” very broadly as the ability to independently make, or at least strongly influence, decisions affecting your life and/or the lives of others.

Longevity and obsolescence

Every once and a while I hold some utilitarian object in my hand and marvel at how long I’ve had it. The most recent example was a humble nail clipper. In our age, to have an artifact in continuous use for a decade or two is remarkable. My kids are amazed if something is older than a year or two.

This was not always so. In older, less productive societies than our own, useful objects were handed down for generations, and it would not be uncommon for an artisan to be using tools that had belonged to his or her grandparent. But our society is SO productive, and for some reason, rather than taking the rewards of our productivity in increased leisure, we’ve chosen to use it to produce throwaway junk.

One person to recognize this tendency was that controversial and problematic economist, the late John Kenneth Galbraith. He made it, in fact, one of the centerpieces of his work, starting with The Affluent Society, and constructed an elaborate and interesting, if not ultimately convincing, system to explain it. But I find that the easiest way to understand our obsession with the new, and dispositiveness toward the old, is to go back beyond Galbraith, and find an explanation in Marxian terms.

The driving force of a capitalist economy is the desire of people with a little property to become wealthy, and the desire of those who are wealthy to become wealthier still. The wealthy derive their wealth from profits – essentially a tax on the labor of those who work. In order to maximize this tax, the working hours of the laboring population must be maximized. What better way to do this, in a world in which technology has exploded productive capacity, than by establishing a cult of the “new”. Admittedly, this cult of newness builds on the natural curiosity of humans and other primates, but it also serves the interests of the owning classes very well; and can anybody argue that corporate advertising campaigns don’t do EVERYTHING in their power to reinforce and develop it?

Of course planned obsolescence, in which products are built to fall apart after a short period of time helps, too. Late capitalism carefully defends itself against any natural selection-type processes of the market, which might discriminate against such ephemeral products. It is generally impossible to distinguish, at time of purchase, between an object that will soon fall apart and one that will not, and constant changes of brand and style protect the producer from the revenge of the customer when it comes time for replacement.

So this is where our dependence on “free enterprise” has led us. Instead of using our marvelous technology to produce (as it well could!) durable and well-functioning things that serve us for generations, free us from much toil, and greatly enhance our well being, our monkey instincts are manipulated by the greedy to force us to work endlessly in the creation of mountains of garbage, partly to satisfy our own love of novelty, but mostly to serve the relentless drive for wealth and luxury on the part of someone else.