Arguing about freedom with a communist

I recently had an argument on Usenet with a communist regarding an important aspect of freedom: doing what you want with what you have.

My opponent, a polite Australian communist named Fran was arguing the usual undefinable socialist platitudes: that using private property for ‘frivilous’ reasons (ie. more than what we ‘need’) is immoral as it wastes resources, keeps others in poverty, violates the rules of social ‘obligation’ and leads to an empty, meaningless life.

The final posts in the thread nicely sum up the argument that occured. I’ve posted the exchange below the cut. For the purposes of readability, I’ve played with the formatting a little. Keep in mind, this was a quickly typed series of responses, not a prepared series of debate points.

Fran: Each of us, in my opinion, must decide for him or her self what is necessary, advantageous or merely recklessly indulgent. Sometimes, often, even with the best of intentions, deciding which sides of the frontier a given good or service lies can be difficult. Yet I believe it is incumbent upon all of us, and especially those of us who have rather more than we need to live in dignity, to make the effort. 

I don’t propose to legislate it — call it an “aspirational goal” — to use a current term that is doing the rounds at the moment. You can play lawyer as much as you like, but you surely are aware that the moment you interact with your fellows, you create bonds of mutual obligation, which, if you are rational person, you must of course define, according to a coherent ethical code.

Tex: It’s called “voluntary transaction” Fran. I’m just fine with it.

Fran: To do that seriously, you must devise ways of working out how to reconcile your own needs and wants with the needs and wants of others.

Tex: Simple. I want to buy something, someone else wants to sell it to me, we agree on a price (or not).

FranYou must distinguish out who is likely to collaborate with you (and for how long and on what basis) from those likely to compete with you.

Tex: It’s called the marketplace. There really isn’t anything mysterious or sinister about it.

Fran: If you know that large parts of humanity get a rather smaller fraction of their needs met than you and that the result is that you get rather more of your most indulgent wants met than otherwise, can you be indifferent to that?

Tex: Yes. I didn’t cause their problems, I don’t know what their “needs” are, or how they define them, I’m not responsible for them, and I can’t change them. Quite simple really.

Fran: I’d say not, at least, not if you believe that everyone is entitled to a shot at the same life chances that you have.

Tex: Wrong. You’re talking about equality of outcomes which cannot and has not been achieved anywhere in human history. 

Fran: I read the other day that the families of those 172 Chinese coal miners who were drowned will receive about $250 in compensation.

Tex: Unfortunate. Nothing to do with me either.

Fran: There are places in the world where life is bought and sold for less than that of course, but I’m betting that you place a higher value on your life than an amount of money with which you could to keep your petrol tank full for five weeks.

Tex: Yep.

FranI wonder, were you a bereaved family member of one of those miners, how you’d explain the differing values placed on life in China and Australia.

Tex: They’re in a poor, totalitarian society, and we aren’t.

Fran: There are parts of the world where an annual income of $300 and a working week of 80 hours is the norm. Assuming you are on $60000 a year for roughly half that number of hours, I wonder if you tell yourself that this reflects the fact that you are a good deal 400 times cleverer, more diligent or more worthy than they are.

Tex: No, it means the market I’m in is willing/able to pay more for my labor than the marketplace they are in is willing to pay for theirs.

Fran: And if you don’t suppose that that is so, how would you explain it? Dumb luck?

Tex: See above.

Fran: Are you not troubled by such an arbitrary disparity in “personal freedom”, to borrow your phrase?

Tex: There is not “arbitrary disparity” in personal freedom. You seem to equate “freedom” with “entitlement”.

Fran: If personal freedom in an intrinsic good, shouldn’t everyone get an equal amount of it?

Tex: Yep. You have this weird idea that freedom doesn’t exist unless equal outcomes are achieved, or that freedom is some kind of zero-sum game. 

Fran: And if you get rather more than someone else, shouldn’t you use it rather modestly?

Tex: Nope. Why the hell should I? What claim do you or anyone else have over I how should use what is mine?

FranI understand that you see yourself as a “libertarian”.

Tex: Yep.

Fran: In your definition, this entails distrust of collective organisation, and a belief that the action of individuals is key to happiness.

Tex: Wrong again. It entails that any collective organisation is voluntary.

Fran: You of all people should be keen to state what you and others can do, as individuals, to assist those not so well placed as you.

Tex: How does holding voluntary transaction as a high value obligate me to “assist” someone else? Especially as your idea of assist seems to involve handing over something that is mine to someone else. My interest in assisting others is in seeing that they are freed from coercion.

Fran: If resources were abundant, the point might be moot, but they are not. Everything on the planet that you’d describe as worthwhile exists as a result of the applied labour of others.

Tex: Big deal. Their labour is paid for when I buy the products they produce.

Fran: Yes, indeed, but in the end, as we know, much of the labour in those consumer goods is paid at sweatshop levels.

Tex: Really? Which ones? I’ve got news for you Fran: my Kawasaki motorbike wasn’t built in a sweatshop by child labour.

Fran: Child labour is common in much of the world, even today. And even the adults get paid a relative pittance for their efforts. Even in Australia, there are textile workers getting between $3 a $5 per hour. Is there any good reason why you should be required to contribute just 10% or perhaps 1% or even less of your time to work than any other person?

Tex: There’s a very good reason: someone is willing to pay me the amount of X for the work that I do

Fran: Is there any good reason why you ought to be able to use this privilege to burn through resources frivolously?

Tex: What “privilege” are you talking about? And what resources am I somehow using “frivolously”?

FranI read that George Bush will take an entourage of 655 people and five planes to APEC. Try as I might, I can’t imagine how this can be justified.

Tex: I agree, which is why libertarians want drastic reductions in the amount of government spending, and the size of government. I’m quite happy with the idea of starving the bastards of revenue.

Fran: Indeed, I’m far from convinced he needs to come here at all.

Tex: Agreed. 

Fran: In the time it will take me to compose this post (about 15-20 minutes), roughly 300-325 children will have died from malnutrition-related causes.

Tex: Terrible to be sure, but you not writing the post, and me not riding my motorbike isn’t going to stop that from happening.

FranI wonder how many of these might have been given what they needed in time, if the resources burned getting the lame duck president here and home in the style he has come to demand had been applied to that purpose.

Tex: And if my auntie had balls she’d be my uncle. What makes you think the resources used by El Presidente are somehow capable of being transferred over to Country X to keep some poor kiddies alive? Just look at how efficient most aid programs are.

Fran: If you have more than others without working more, it means you are living off the labour of another.

Tex: No, it means I’m living off my labour. That’s why I get paid.

Fran: That is an evasion.

Tex: No Fran, that is reality.

FranThe cost of your labour reflects factors that have nothing at all to do with your skill or your effort

Tex: Strange, most employers would disagree with you. That’s why they hire person X to do job Y for the amount of Z.

Fran: …and much to do with the resources flowing into Australia as a result of high resource prices and extensive natural resources, the quality of the infrastructure, the strength of the currency and much else.

Tex: Welcome to the world-wide marketplace Fran

FranIf you had no choice but to use whatever skills you had or could acquire growing up in, for example, Sierra Leone or East Timor, you could also “live off your labour” but not nearly so well.

Tex: Absolutely. And me not riding my motorbikes, buying DVDs or travelling isn’t going to change the lives of those in Sierra Leone one iota.

FranSomeone in a wealthy country someplace else would also be living off your labour and justifying why they needed things that you apparently didn’t.

Tex: Fine by me. It’s their money. It’s up to them to decide what to do with it. It’s none of my business, or yours.

Fran: The world is badly organised, and I don’t hold you responsible for that, but ethical people are surely chastened by that thought, and hesitant to take more than they need, no?

Tex: You are using a computer, powered by fossil-fuel-provided electricity. You don’t “need” to do that.

FranOh but I do, in my opinion. I use the computing access I have to learn more about the world about me, and to share what I’ve found with others. Usenet is indexed and archived, and what I write will be available to others long after I’ve drawn my last breath. I serve my own needs and the needs of others coterminously.

Tex: So you’re placing your thirst for knowledge as a “need”…. just like some kind in the third world has a need to eat. You’ve every right to do so as well, strange you don’t want others to have the same right.

Fran: I’m also troubled by your evident ennui. Despite your money and your avowed spending habits, you seem to find a great deal boring, You attach little value to self-knowledge and amity with others.

Tex: On what basis do you come to this conclusion?

FranYour persistance in identifying happiness with superficial things. Above you said: “Enjoying myself is important and worthy. Riding motorbikes, buying DVDs and books, travelling with my girlfriend on jet airplanes”.

Tex: None of these things are “superficial”, any more than you posting things on usenet are “superficial”.

Fran: When I suggested that going without “stuff” you didn’t need wouldn’t harm you and might lead to you reconsidering what was important and worthy in life and invited you to consider whether living this way was more pleasurable in the long run than pursuit of comfort in the possession of trivial personal effects, you responded: “Sounds dull”

Admittedly, you did toss in your girlfriend accompanying you as part of the pleasure, but it seemed to be only a minor part of a lifestyle that sounded more like a Peter Stuyvesant commercial.

Tex: …and you posting “stuff” on usenet under the more-pious-than-thou assumption that somehow your actions are somehow more worthy than others seems a waste of time to me. But there’s the rub: I respect your right to post “stuff” to usenet, because it’s your time, but you think my lifestyle should be restricted because you don’t like it.

FranThis suggests to me that your extravagance does not give you profound or lasting pleasure at all. Perhaps you should reconsider this, in your own best interest.

Tex: You wouldn’t have the slightest idea what is in my “best interest”.

FranWell I have the ideas that you invite by what you post.

Tex: So Fran, what is in my “best interest”?

FranEveryone wants freedom, but one cannot have true freedom while others are in bondage and misery.

Tex: Yes they can.

FranThen you and I have radically differing views on what true freedom is.

Tex: I dont’ think you have the foggiest idea what “freedom” is, other than you seeking to make others live by your pious dictums

FranOn the day when nobody has any basis for envying my freedom, or any basis for constraining its exercise to protect their own, I will be free.

Tex: You are “free” now. The idea that you tie your own personal liberty to the situation of everyone else on earth is little short of insanity, especially as you equate freedom with material wealth.

Fran: Most of us also want amity and community, which things sit particularly well with freedom. Why do you place so little value on these things, Tex?

Tex: I place lots of value on them.

Fran: And can you place any value on them at all if you are helping to despoil the biosphere and strip it of the things others need?

Tex: You can’t show me “despoiling the biosphere”.

FranWell if you are purchasing things frivolously

Tex: Again, you can’t show how anything I am doing is “frivilous”

Fran: that’s exactly what you’re doing. One has of course, the defence of necessity. One must eat, breath, drink and seek shelter from the elements. One should also seek intellectual enlightenment and emotional growth. If the rational pursuit of these activities consumes scarce resources, this is still defencible. But when one is profligate and reckless, the defence of necessity collapses. Are you profligate and reckless, Tex? Or do you believe in moderation now?

Tex: I’m neither profligate or reckless. I don’t believe in “moderation” in any sense other than maximising the use of my own time, health and resources.

There’s one glaring point I should have emphasised: Fran’s utterly contradictory construction of freedom. One one hand, one cannot be fulfilled without the bonds of community and the growth of one’s intellect and emotions, yet Fran argues these things are impossible without a level of material wealth she argues is ‘frivilous’. Talk about a self-defeating ideology. That’s the intellectually mushy world of communism for you.

225 thoughts on “Arguing about freedom with a communist

  1. It makes perfect sense to me:

    One can not truly be free until no one else envies the freedoms that you don’t actually have.

    I bet “Fran” had nothing to say about how this ridiculous organisation will actually be enforced! She’s just a little Stalin on the inside.

  2. One question: Did Fran self identify as a “communist”? Because there’s nothing in her words that indicate any association with the (now long dead and gone) CPA.

    Unless she did, I think you’re introduction is full of it, and posting this long and tedious conversation where you demonstrate nothing other than your own ability to indulge in solipsistic claptrap is a waste of your readers time.

    Well, to be honest, even if she did, it’s still a waste of time.

  3. “Did Fran self identify as a “communist”?”

    She has, over and over on usenet.

    “solipsistic claptrap”

    Looks like I hit a nerve with one of the pious.

    As for the CPA, your “long dead and gone” organsation still seems very much alive:
    http://www.cpa.org.au/guardian/guardian.html

    But hey, it’s just “solipsistic claptrap” to point out fact 🙂

  4. Tex:

    >She has, over and over on usenet.

    Ok, didn’t know that, but I don’t frequent usenet – I believe it’s moribund? Her self-identification in that forum has been explicit then has it?

    >“solipsistic claptrap
    >Looks like I hit a nerve with one of the pious.

    No. Look up “solipsistic”, review your side of the conversation. Your continued retreat to the “market” – a position that cannot be attacked because it is so narrow – is the very definition of solipsistic. Human relations extend far beyond the market, and Fran is right on that point.

    Why don’t you stake out a position worth defending next time?

    Oh, by the way, before boring us with this nonsense, did you ask Fran’s consent to post this? I thought she was quite generous and honest in attempting to engage you beyond your narrow parameters, and would be surprised if she’d let you just feed her comments into your little machine here.

  5. So Tex, how’s about some of them thar negro slaves? I hear they help you enjoy their life and all you need to do is feed them. They help increase your personal freedom and they are free to run away at any time, damn varmints.

    I don’t think libertarian of a rational mind or sound conscience can honestly say that the exploitation of developing nations is really in line with “freedom”. Wealth disparity is a bad thing, there is a moral imperative to help those less fortunate and anyone that doesn’t even wish to help those deprived of needs and liberty really are the scum of the earth.

    The best I can say about exploitive work-situations in developing and third world nations is “at least it’s a start”, even Britain engaged in child labour and low labour standards. A freer market did help to break down the class barriers and indeed employment provides more freedom than unemployment and more options out of poverty.

    I don’t think we have a responsibility to help so much as an ethical duty. Humans are social creatures and even others of our species we never meet are still part of our larger community.

    It is comments like yours though, Tex, that put me off libertarians. But I know we’re not all bad.

  6. Shem, Tex has said nothing about supporting slavery. How do you figure trading with poorer countries is exploiting them? Or rather, how do you think stopping trade with them will do them good?

  7. “Ok, didn’t know that, but I don’t frequent usenet – I believe it’s moribund? Her self-identification in that forum has been explicit then has it?”

    Yep. She’s called herself a communist

    >“solipsistic claptrap
    >Looks like I hit a nerve with one of the pious.

    “No. Look up “solipsistic”, review your side of the conversation. Your continued retreat to the “market” – a position that cannot be attacked because it is so narrow – is the very definition of solipsistic. Human relations extend far beyond the market, and Fran is right on that point.”

    Where have I said human relations don’t extend beyond the market? The absurd position Fran takes is that somehow material consumption is wrong because it damages those “other” sections of human life. of course, neither her nor you can show how this happens. In fact, the position is completely contradictory: One one hand, one cannot be fulfilled without the bonds of community and the growth of one’s intellect and emotions, yet Fran argues these things are impossible without a level of material wealth she argues is ‘frivilous’.

    “Why don’t you stake out a position worth defending next time?”

    Voluntary transaction is worth defending. Too bad you don’t seem to understand it.

    “Oh, by the way, before boring us with this nonsense, did you ask Fran’s consent to post this? I thought she was quite generous and honest in attempting to engage you beyond your narrow parameters, and would be surprised if she’d let you just feed her comments into your little machine here.”

    Oh for God’s sake you pious twit, it was posted on a public usenet forum. I don’t need anyone’s “consent” to post it here.

  8. Shem, regarding your idiotic comment about negro slaves, did you miss this part?:

    “How does holding voluntary transaction as a high value obligate me to “assist” someone else? Especially as your idea of assist seems to involve handing over something that is mine to someone else. My interest in assisting others is in seeing that they are freed from coercion”

    It’s really not that hard to understand

  9. I suspect Fran has a problem with excessive guilt. It’s common among females, especially Catholics, and gets worse once they have children and realise they are not perfect mothers, their kids don’t appreciate them and it’s all their fault.

    She has rationalised her guilt into an ideological framework and now seeks to encourage others to conform to it.

    She may have a lot to be guilty about, but that doesn’t mean she’s right. Or that anyone else is guilty.

  10. I think Fran has her heart in the right place, She just doesn’t realize that she’s on the side of the oppressors right now and we’re on the side of the oppressed.

    It’s an easy mistake to make and one I made for a long time.
    I can remember hearing about Bechtel in Bolivia and thinking they were the epitome of evil. They really, really suck for what they did but they weren’t the ones with the guns. It’s the Bolivian government who really let their people down by locking them into such a ridiculous contract and forcing it down their necks with violence.

    I think Fran sees the obvious: Rich people in the west paying a pittance for products and made by poor people elsewhere living on a fraction of what we make and is rightly outraged by the disparity. She doesn’t investigate further and see that the people who have invariably forced this situation onto the people aren’t the corporations, it’s the governments.

    We want Free trade with Developing Nations not just so we can benefit from cheap products but so they can benefit from our cash flooding into their country. Any attempts to regulate it cause the boat to rock and invariably hinder rather than help.

  11. Ben thats the problem. Heart in the right place, head in the clouds.

    Socialists and leftists hate our current government, but they think the solution to our problems is more government that follows all kinds of “social justice” programs.

  12. Shem, Tex has said nothing about supporting slavery. How do you figure trading with poorer countries is exploiting them? Or rather, how do you think stopping trade with them will do them good?

    I don’t think trading with poorer countries is innately exploitive. But there are definitely plenty of companies that DO exploit poor, unskilled labourers. I don’t think stopping trade will do any good. However, I do think we need to recognise that it is not a good situation and the sooner they can progress out of the industrial age the better it’ll be for them. To deny the exploitation that goes on in developing nations and to wash one’s hands of any moral duty to aid is selfish. Charity is an essential part of true liberty.

    My interest in assisting others is in seeing that they are freed from coercion

    You say this Tex, yet you are not willing to go without luxuries in order to provide charity and aid to those living in coercive situations? Your argument throughout seemed like you’re not willing to sacrifice anything to help anyone- which seems inconsistent with someone interested in freeing others from coercion. Or did you literally mean you’re just interested in seeing/ watching people become freed rather than actually helping them become free?

    Fran might claim to be a communist, but a lot of self-proclaimed communists are not in favour of government. A moral-communist is not logically inconsistent with libertarian philosophies until they start saying the government or any other body should intervene through violence. Libertarians aren’t against sharing (well, not all of us)- we’re just against being forced to share.

    In the above discussion it seemed like Fran was arguing “sharing in good” and Tex was arguing “I don’t like sharing”. Fran didn’t mention government intervention, merely moral obligations that she feels we all have. She has no right to use violence to impose her morals on anyone but she definitely has a right to value the proposition that everyone should follow her moral code. I’m challenging your statements on moral, not political grounds, Tex. Because I think there is definitely an ethical and moral obligation to share and help.

  13. Shem, slavery isn’t voluntary. And Tex made it clear he doesn’t support coercion.

    I enjoyed the discussion because, I think it’s worth analysing the methods of letting people see the light of libertarianism. Even though presumably people have several different fundamental issues that block their acceptance of libertarianism, these fundamental issues need identifying so you don’t waste time arguing about unimportant details and get to the root of the argument.

    I think it’s usually irrelevant to compare wages in different countries. This is worth pointing out firstly. And secondly, why not point out how much wages have risen in China as their economic freedom has increased and as a result of foreign investment. I think on average people earn twice what their parents earnt.

    Just the other day, I heard a (supposedly intelligent) scientist say western countries are rich because they exploit poor countries. I told him that he’d be surprised how little the overall economies between first and third world countries interact (especially in the past).
    This exploitation idea is a major fallacy.
    Fran states “If you have more than others without working more, it means you are living off the labour of another”. That’s obviously incorrect. And just stupid in my opinion.

    I think some faulty socialist type ideas come from the “piece of the pie” concept. They basically think the amount of wealth/resources is largely set in stone and is a matter of distribution, not a matter of creation. The size of the pie is always changing and commies don’t realise how much it can change and how quickly. They still think like people used to in the days of kings and queens where the focus was on plundering wealth, not setting up conditions to create it.

    Commies don’t realise how much they will stifle wealth/resource creation with more government control. They don’t realise how immoral and contrary to human nature this government control is or would be.

    It’s important to cut commie arguments down quickly by pointing out that forced charity is not charity. The word charity in my interpretation, implies voluntary action. And I think commies are being dishonest (or stupid) if they praise the virtues of charity. Socialism and communism both mean government redistribution of wealth. I would argue this isn’t charity at all.

  14. The following article gives a quick snapshot of what is happening with wages in China:-

    http://english.peopledaily.com.cn/200307/09/eng20030709_119797.shtml

    The per-capita disposable income of urban residents in the city stood at 7,409 yuan (903 US dollars) during the six-month period, up eight percent, according to a sample survey conducted by Shanghai Municipal Statistics Bureau.

    The per-capita income of rural residents was 4,340 yuan (529 USdollars), an increase of seven percent.

    The consumer price index dropped by 0.4 percent as the growth in food price index was offset by decreases in clothes, telecommunication products and transport fares.

    See also:-

    http://www.forbes.com/home/2007/07/02/china-wage-growth-markets-econ-cx_jc_0702markets1.html

    The following animation tool also allows you to get a feel regarding trends over the last 30 years. For instance compare the USA with China in 1970 versus 2000.

    http://www.gapminder.org/downloads/applications/income-distribution-2003.html

  15. there are definitely plenty of companies that DO exploit poor, unskilled labourers.

    Provided the labourers can leave when they like, they are not exploited (at least, not in any adverse sense of the word). They voluntarily choose to work and companies voluntarily choose to employ them. It’s a mutual benefit.

    The fact that you would not work under those circumstances, or that they might be able to earn more elsewhere, is not relevant. Each person is entitled to make their own choices. Provided the choice is free, it is not exploitative.

    To deny the exploitation that goes on in developing nations and to wash one’s hands of any moral duty to aid is selfish.

    Selfishness and moral duty are values belonging solely to individuals. Whether we approve or disapprove of the choices other people make, they are entitled to make them as long as they accept the consequences and do not coerce others.

    Charity is an essential part of true liberty.

    Charity is a consequence of true liberty, not a part of it. Humans naturally care for their families and social networks and will assist those in need. However, they are less likely to when there is a whiff of coercion about it.

    Your argument throughout seemed like you’re not willing to sacrifice anything to help anyone- which seems inconsistent with someone interested in freeing others from coercion.

    Freeing someone from coercion does not require personal sacrifice. It simply means freeing them coercion. And there is no coercion arising just by being poorer than you.

    a lot of self-proclaimed communists are not in favour of government

    Communists believe in the withering away of the state, but not until socialism has been established. It’s the socialism bit that nobody likes. (And the fact that communism requires the complete abandonment of self-interest.)

    there is definitely an ethical and moral obligation to share and help

    Tex is unlikely to dispute that unless the “obligation” was coerced. I think he had good reason for believing that’s what Fran intended.

    Nobody should prevent you from living frugally, donating your savings to the poor and encouraging others to do the same. Equally, nobody should compel you to do that.

  16. The problem with the word exploit is that it does have multiple meanings.

    http://dictionary.reference.com/browse/exploit

    It is not unreasonable to use the term to merely mean “to use a situation to your personal advantage” as in “Fred was quick to exploit the opportunity for promotion”. And when an employer hires a worker they are certainly exploiting them in this sense of the word. However clearly the employee accepts the job in order to use the situation to their advantage. So if we are to take this meaning of the word “exploit” then it becomes clear that employees and employers both exploit eachother for personal advantage.

    Of course the term “exploit” is generally used in such contexts as a pejorative term. The user generally implies that it is a good guy versus bad guy type of situation. It is another examply of trying to impose a particular narrative onto a given situation. A narrative that is more appropriate in the context of sport, checkers, politics and other win/lose competitive zero sum games. Trade however is not a zero sum game.

  17. Nobody should prevent you from living frugally, donating your savings to the poor and encouraging others to do the same. Equally, nobody should compel you to do that.

    I agree 100%. But I do and will encourage everyone and anyone that does not donate to the poor to do so. I will criticise those that do not.

    It is not the role of the government to force charity. But it is the role of a decent human being. I decided to put my money where my mouth was as the result of this conservation and sponsored a child through plan.org.au Growing up a Mormon a 10% tithe was expected. Now that I am of a more secular mind I think 10% of even a “penniless student’s” income is not too big of a sacrifice to make.

    I think leadership is leading by example. People do want the government to provide moral leadership and role-models. They’ve done a piss poor job of that in most occasions. Government should not lead through coercion or violence but rather government leaders live according to their own philosophies.

    I am against socialism because I believe in the goodness of individuals. But that means I have to prove my argument by being a good individual. It is well and good for a fundamentalist libertarian to argue that private charity is capable of providing for the needy when they don’t pay a cent to private charities. Any libertarian that refuses to help the less fortunate is just providing fuel for the socialists that say “all capitalists are greedy and self-interested, unwilling to help the needy”.

  18. Sorry for the double post, but:

    “Yes. I didn’t cause their problems, I don’t know what their ‘needs’ are, or how they define them, I’m not responsible for them, and I can’t change them.”

    doesn’t sound like the words of someone interested in private charity.

    My original response was a little harsh, Tex. But I can’t stand the self-interest in our consumption driven society. The fact is there is a lot that we do, as humans that is frivolous and a waste of resources, especially when others are dying without necessities.

    Unlike Fran I don’t think sitting here online and chatting about politics is helping. I admit that some of my actions ARE frivolous. Socialists, given their ideologies, are some of the worst offenders. One of the top-dogs of the Socialist Alliance at Melbourne Uni drives a car to Uni because “public transport is dirty”. I try not to be a hypocrite like that, but I’m sure at times I still am.

    We do have a responsibility to look out for the well-being of others. And we should have the freedom to be fucking bastards and ignore that responsibility…

  19. Okay since I’m on a roll I might as well go for a hatrick.

    In terms of exploitation I fail to see why exploitation cannot be voluntary- look at the age of consent laws. Just because a children says “yes I want you to have sex me, Mr. NAMBLA” that doesn’t mean it is informed consent.

    Similarly people in developing nations are often roped into deals without being fully informed. Information is key to non-exploitive and non-coercive behaviour. Fraud is as much a crime against freedom as violence. And often “voluntary” agreements are entered into on false pretenses or when power levels aren’t equal. People will allow themselves into exploitive work situations if they feel its their only option or if they are tricked into thinking it’ll be a better deal than it is. Living in fear of losing ones job due to non-performance issues may not be exploitive exactly, but its definitely not the definition of “freedom”.

  20. This reminds me of the discussion earlier, when people bandied the word ‘socialist’ around, as though it were the ultimate brand of evil. Having a social conscience, and having socialist thoughts, is not evil, unless you try to compel other people to your cause.
    Nor is there anything wrong with being a self-interested capitalist. I prefer to be an enlightened self-interested capitalist, who gives to his own chosen charities because he thinks it is of ultimate benefit of all concerned. I disagree with Shem, because that last word ‘needy’, is simply too flexible.

  21. Shem, it is incorrect to use the example of a child consenting to sex. Children are incapable of making consent decisions about sex. So consent is not relevant. And child sex is involuntary. The most horrific and damaging form being when the parent is the offender.

    I can think of some cases however where a dodgy government in one of these developing countries will bend over backwards to try and attract foreign investment and in doing so directly violate the rights of their citizens or fail to protect the rights of their citizens.
    The company is still to blame but the incompetency or criminality of the government is often overlooked by simplistic socialists.

    Nicholas, no thought is a crime. (Although when I was a kid going to church, I had to chant every week that I’d sinned in thought word and deed).

    However socialist ideology is a rationale for theft, something evil. I speculate that the common car thief or burgular would rationalise their crimes in a very similar way to socialist governments rationalising stealing businesses from their owners for example.
    So the criminal and the communist can be quite similar in some respects.

    I’m probably one of those people who “brandies the word socialist around as though it were the ultimate brand of evil”.
    And by socialist, I mean people who think property should be owned by the community not individuals. Nothing to do with having a social conscience.

  22. Shem, equating workers in developing nations with children is paternalistic and patronising. People certainly suffer from information deficits and ignorance. However adults are the best custodians of their own lives. They don’t need to be protected from living life and making choices. It is by doing so that we all learn and grow.

  23. Personally I think that it’s patronising the way teenagers and children are treated a lot of the time, too. Especially legally… But I won’t get into that now.

    It was a bad example, but like children, workers in developing nations lack education, information and empowerment.

    If you aren’t literate and you are handed a contract to sign which is legally binding, then you are being exploited. It verges on slavery.

    Voluntary interaction predicated on a lie cannot be said to be voluntary.

  24. Shem,

    If by “we” you mean “you”, then I am in complete agreement with you. You can allocate as much of your resources to meeting the needs of others as you want. I shall do the same with my resources.

    The problem comes when some socialists feel that some aren’t allocating enough of their resources to the welfare of others. Then they start taking resources by force, and once they use force, any claim to moral superiority ends. Socialists want to exploit the labour and resources of some (the wealthy) to the benefit of others (the poor). If exploitation is the problem, how is this fixed by even more exploitation?

    I will politely listen to your calls for greater charity, and if I agree with you, I may increase my charitable contributions. The key is the voluntary acceptance of your persuasion and the voluntary change in my actions.

    Socialists, for all their good intents, want to short cut this through the use of force, and have forgotten that the ends do not justify the means.

  25. Terje, I don’t think a literacy rate of 91% can be called “high”, even if it is high compared to the, say, 73% in Cambodia…

    There are plenty of documentaries about exploitation in developing nations. Some are politically biased, of course, but I don’t think it is a problem “we” should ignore.

    Because Brendan, while I support the rights of others to hold a different set of ethics to myself I don’t think that belief is justified or “right”. I mean, I could believe in invisible pink elephants on Mars, but with no logical argument to back up that claim I am on shaky ground. I think rationally, and logically “we” as people in the developed world should be doing far more. I think that people that do nothing are immoral and wrong. And I have every right to hold that view as long as I don’t steal or use violence to achieve my end.

    I agree that government focused socialists (which- especially now- not all are) are trying to short-cut the path to equality which is voluntary interaction. But I’ll do what I can voluntarily and I’ll exercise my right to free speech to criticise those who do nothing. Not all socialists believe in government solutions.

    There is a tendency on this blog is to criticise all Greens, Socialists and Communists as Statist. Not all are. You can hold socialism/ communism as a moral philosophy without believing in state-violence as a solution. Most young socialists these days are highly cynical of government and support collective action over political movement. The term “socialist” does not entail “statist” any more than “capitalist” entails “favouring big business”.

    My sense of ethics is based on utilitarianism, which, to me has as much of grounding as “freedom”, if not more so. Usually “freedom” brings about the most utilitarian outcomes, but in situations where that is not the case I think that one immorality- that is the violation of freedom- can compensate for a greater immorality- that is the violation of utilitarian principles.

    My view on charity is pretty much in line with Peter Singer’s Drowning Child parable.
    http://www.utilitarian.net/singer/by/199704–.htm

    Because we can’t see the Drowning Children in the world they often are left to drown. That is regrettable. Surely sacrificing a couple of DVDs to save lives is a worthy trade?

  26. Shem, there is a big difference between your argument and Fran’s. Fran is basically arguing that Tex’s enjoyment of DVDs and motorcycles is immoral, with a strong implication that his consumption actually induces (if indirectly) the “Drowning Child”, to use your analogy.

    If you buy into that sort of morality, then I’d have to say I disagree with you. Consuming goods and services does not cause in any way, shape or form poverty. Telling people that their lifestyle’s are immoral and implying that they are somehow responsible for killing children by not giving more to charity is a negative argument, and I wish you good luck with it.

    Myself, I’d go with “doesn’t it feel good to help” campaign with lots of celebrity endorsements. Sell the consequences of charitable giving, not the reasons why it is needed.

    One of the problems with Fran’s point of view is that we can’t end hunger or disease or poverty or political oppression by donating $10 a week, nor can we do it by restricting economic growth through taxation, tariffs or boycotts. The best way to reduce these things is trade, even with countries with sweatshops, since the people that suffer the most from charity are often the poorest people.

    Next time you donate clothes, consider that the trade in donated clothing displaces the local rag trade. After all, who can compete with charities that receive their inventory for free? Then you end up with those weird news clips of fly bitten starving bloated Africans wearing Nike t-shirts.

    Next time you buy fair trade coffee, consider the adjacent farmer who may produce a cheaper and better product, but doesn’t recieve a subsidy from guilty white rich people, and so go out of business. The less efficient fair trade farmer stays in business, wasting scarce capital and resources that could be better used.

    Want to boycott trade with nations that have child labour? I hope you then feel ok about starving families that rely on the entire family’s production capability to feed their brood and who then under feed their kids because the breadwinner is doing just that and the kid is just another mouth to feed that contributes nothing. Rich people can feel bad about poor people’s kids not getting a proper education or having a childhood, but the poor can’t, they’re often worried about their next meal. Without the labour of the child, they can’t afford to keep them healthy.

    Life is more complicated than not buying that Firefly DVD box set equating to saving a poor child in perpetuity. The best way forward is to improve the capital stocks of the poorest through trading with them. Then they can benefit through the technology gains that we have made on the back of capital accrued from the times when Australians and before that European nations were poor, faced regular famine and had child labour.

    I’m sorry if this sounds like a rant against you, it is not, it is just that talk of DVDs and drowning children does sound like a very slippery slope towards statism. I completely dispute Peter Singer’s idea of an expanding circle of responsibility as both being impractical and fundamentally flawed. You are responsible for your actions, not your inactions.

  27. Shem,

    You suggest that Socialists, Communists and Greens are not necessarily statists. I understand your point, however I think you are mincing words. What you seem to be saying is that some people believe in sharing and caring and goodwill towards strangers and in being nice and that materialism is not everything but they are not statists. Which is fine. However if they are not statists (eg you) then I would never use the word socialist to describe them. I wonder why you need to use the term in such an unconventional way. What benefit does it bring?

    The term “green” is more tricky because it has a shorter history. However the political party that has assumed that name is definitely statist in its instinct. I would have an easier time referring to people as green and accepting that they were not socialists. Although it seems to be getting harder all the time.

    You should tell such people that their political philosophy is libertarian. It offers greater clarity.

    Regards,
    Terje.

  28. So Shem are you saying there are “socialists” who want everything to be community owned and all earnings to be shared but want people to achieve this voluntarily?
    Sounds very suspicious.

    Anyway, I think this would need another term like libertarian socialist or something. Actually, perhaps the traditional use of the word anarchist applies best. Because to me, a non-statist socialist is a contradiction in terms. I think it is correct to assume commies want forced government control.

    Personally I think the above described system is contrary to human nature and would not result in as good overall outcomes compared to a competitive system where people maximised personal responsibility and had more to gain from high achievment (which could then indirectly benefit others).
    However I have no problem with a community that organises a voluntary system where all property and rersources are community owned and don’t think anyone else at this site would have major problems with this system. I can even see the utility of this system at very minor levels, ie: perhaps everyone could put in cash to maintain a town hall or something.
    However it’s not the usual use of the word socialist.

    It should be noted that these voluntary socialist communities could exist within the larger realm of a capitalist system.
    So these socialists should be arguing for capitalism so they can then set up their communities voluntarily.

  29. Dear Tim R., regarding thoughts.
    Your statement about thoughts not being crimes is true- “Thoughtcrime” is not on our legal books. But there was no call to mention your upbringing, since ‘Sin’ is not the same as ‘crime’. You might want to keep the concept of sin, since you think that socialists are evil, and a socialist is someone who THINKS that property should be communal. Since thoughts are not crimes (bad), such thoughts must be sins (evil). See how useful the concept of sin is?

  30. I’m using the words as they are used at Melbourne Uni today. I’m using the words as self-proclaimed socialists use them.

    Arguing against semantic change with a linguistics major isn’t going to get you guys far, sorry. There is nothing about socialism- ie “a belief that wealth distribution should be shared equally” that is inherently statist. Even if there once was, the word has progressed to include new non-statist senses. Anarcho-communists are still communists and indeed “anarcho-communist” fully entails “communist” provided the sense of communist is “a belief in communal ownership”.

    A libertarian socialist is what I call myself and indeed the term does apply to a lot of the people I’m talking about. But “libertarian socialist” is a term that follows the principle of compositionality, a “libertarian socialist” is both a libertarian and a socialist. To say that a libertarian socialist is not a socialist is a misnomer.

    Words always undergo semantic drifts and English is rife with examples of polysemy. Perhaps the older socialist movement was inherently statist, but that is no longer the case. Self-identified socialists and “lefties” are usually distrustful of government as much as they are big business. If you want to restrict socialism to “supportive of big government” then why not restrict the term capitalist to “supportive of big business”? Because essentially that’s how capitalism is seen, even though it is definitely not the reality of the capitalist ideology. Similarly the reality of the socialist ideology is that SOME socialists are statist, other socialists are not.

    Criticism of “the left” and “socialists” isn’t going to win us any friends because I can tell you, apart from hard-capitalist economics majors, a lot of our friends probably will be left refugees like myself. Why not reserve our criticism for statist of any kind? I’m not particularly fond of Pinochet despite what he may have done economically. Or if you think civil liberties are a worthy sacrifice for economic freedom why even bother with libertarianism?

  31. I don’t know anyone who defines socialism as a question of choices made by individuals. Even in the most post-modern context it’s invariably a social system excluding choice.

    In your terms socialism could simply mean “generous”, “philanthropic” or even “I give my money away because I feel guilty for being richer”. The sentiment is fine but I think the terminology is incorrect.

    And Pinochet is not a pin-up boy for either capitalism or libertarianism.

  32. Ok, sorry to have a cheap shot at Christianity Nicholas. You are right to point out there is a distinction between sin and crime.
    I suppose thoughts can be immoral in some cases, or should I say, lack of thought (ie: deliberately evading thought instead of confronting facts and putting them in context).

    So what do you think of my example comparing rationales of the common thief to socialist government rationales. I imagine a burglar would rationalise their crimes by thinking “Society’s not fair, I’m underprivelaged and my victim is rich enough to afford it, they’re probably insured anyway”. I would argue this type of thinking is very similar to a socialist government in say Venezuala or Zimbabwe.

    So I’m not saying socialists are necessarily evil. Just that they are more likely to be.

    It’s a bit of a slippery slope too. I have a friend that is a socialist. He recently declared himself bankrupt after maxing out a credit card on a holiday and buying a motor bike. So now he doesn’t have to pay off his debts. He doesn’t seem to think he’s wronged anyone else.

  33. Shem. “Why not reserve our criticism for statism of any kind”
    I think you’ll find plenty of people on this site who criticize statism of any kind.
    You can’t expect people not to criticize socialism if they think collectivism and socialism leads to poor economic outcomes.

    Shem, since you bring up sematics, you’re uni is not teaching what the common person in society thinks of as socialism. My personal view is that academia is often isolated from the real world. More concerned with government grants than reality.

    A voluntary system implies capitalism. (freedom to trade).
    So therefore these socialists you speak of should be arguing for freedom and capitalism.

    I’ve never seen a socialist argue for capitalism. But I’ve seen plenty at events such as APEC who are anti-free trade and hence anti voluntary interactions.

    Therefore it stands to reason that if these socialists are for voluntary interaction and are not arguing for free trade, they are either dishonest or stupid.
    Or, more likely, most socialists do support government intervention as people like me think.

    Surely it’s not hard to understand that people equate socialism and communism with regimes such as USSR, China, Cuba. All countries that have/had massive amounts of government coercion.

  34. When speaking politically, ‘Socialism’ means more intrusion by the government. Look at all the new committees Rudd would establish if his socialist party takes over! Even if only some of them make recommendations, that’s still new regulations. Red tape is the bane of business. When I vote Liberal, it’s because they’re less likely to add new rules to the economy. They were once in favour of State’s rights, but now the states can do no right.

  35. I’m not talking about how the Uni teaches it. I’m talking about self-identified socialists on campus. In addition to people I’ve spoken with online and in person.

    Socialists that are against free trade and capitalism are often against them on principle. Many socialists I’ve spoken with think that community driven opposition to capitalism is a far better way to combat it than political means. Hence the protests. And really, when they say they oppose “capitalism” what they often mean is they oppose “advertising driven mindless consumerism”.

    People refer to the EU as socialist and often hold up nations such as Sweden as model societies. Yet Sweden lacks a minimum wage and a lot of market regulations that prohibit growth. America is seen as the epitome of capitalism, when really socialist Sweden is more pure in its capitalism in some ways.

    I guess you guys interact with a different type of person than myself. But the people I speak with use socialism far more broadly, it is an ideology as much as a political movement. Check out the Wikipedia page on socialism- because a lot of people I interact with are Wikipedemics.

    Just because people that lived through the USSR equate socialism with statism people like myself, who were children when the USSR collapsed don’t draw the same parallels. I may be talking about a limited demographic, but it is the demographic most interested in socialism and a demographic that would be supportive of moderate libertarianism. Radical socialism is no longer cool, political apathy is rife, yet when asked most Uni students would still identify with the left largely because of social issues. They might claim to have socialist tendencies without having fully thought the politics through. These are the people that I am talking, who we have the potential to isolate.

    By pushing an anti-Green, anti-socialist set of politics we will be seen as valuing profit over people. I value people more than profit- but without profit people suffer. Feeding the already rich creates entrepreneurial opportunity to in turn feed the poor. This is the angle that will allow libertarianism to become mainstream- it is an angle of pragmatics and outcomes rather than radicalism.

    By pushing a hardline anti-left, anti-socialist, economy focused ideology you isolate the other haters of government. After all, as most of you probably read on this recent Catallaxy article- libertarians never used to be on the right.

    http://catallaxyfiles.com/?p=3204

    But self-proclaimed socialists do exist who will be isolated to anti-socialist statements. They aren’t statist socialists and they have the potential to become awesome people-focused libertarians. Often they don’t understand economics or policy but support socialism because it “feels right”. Often they are opponents of excessive consumerist mentalities and surely that’s a good thing? Capitalism is the best way to engage in trade, sure, but I surely don’t think excessive consumerism at the expense of charity is entirely ethical.

  36. When speaking politically, ‘Socialism’ means more intrusion by the government. Look at all the new committees Rudd would establish if his socialist party takes over! Even if only some of them make recommendations, that’s still new regulations. Red tape is the bane of business. When I vote Liberal, it’s because they’re less likely to add new rules to the economy. They were once in favour of State’s rights, but now the states can do no right.

    Yes, politically socialism means intrusion and statism. But a lot of socialists are moral ideological socialists. They follow political socialist movements not out of rationality but rather because socialists have the same moral ideologies. Being a libertarian and a socialist aren’t mutually exclusive. Joining socialist political movements and joining the LDP are mutually exclusive.

    Whether you like it or not, whether you think it is accurate or not to a lot of people “socialism” means “liberal” and “free”, especially on social issues.

  37. If socialism means ‘liberal’ and ‘free’, then people are mightily confused! Of course, socialism uses such slogans, but when it comes to practicing it, such as when a socialist party takes over a government, the average person will end up less free, and less liberated. Maybe the average Uni student needs to get out and live! If they were involved in business, they’d realise the government is already quite intrusive, and more (laws) means less (business).
    If, by socialist libertarian, they mean libertarians with a heart, not socialists seeking power, no wucking forries.

  38. Shem,

    Socialism as defined by wikipedia might be the popular use in university, but I’m interested in the socialists and greens who want to increase the size of the state to achieve their agendas. If you think I’m going to qualify my criticism of socialists and greens as criticism of only the statist ones every time I use those terms, you are dreaming. The common political usage of those terms are as statist philosophies, get used to it.

    If your moral idealogical socialists don’t want to be confused with statist socialists, they should have been a bit more careful in choosing a name that wasn’t historiacally associated with the deaths of 149,469,610 people, and that doesn’t include the national socialist body count.

    Terminology is important, and as a student of linguistics and having an interest in political philosophy, you should be the first to point out to “soft” socialists the error of their ways. Anybody that calls themselves a socialist without fully realising the connotations is a fool who is dabbling with words they don’t understand, much like the idiots that wear Che Guevera t-shirts. That is the power of such a malignant political philosophy, turning inside-out the meaning of words and forever tainting our language.

  39. Shem,

    Just in case you’ve misunderstood me, consider a patriotic communitarian, someone who believes in strong local philanthropy and community building? What meaning would you take if they called themselves a National Socialist? A bit confusing, hey?

  40. Ok, you’re making more sense to me now Shem.
    You’re interested in converting socialists to libertarians.
    I agree that the young are generally much more open to social freedoms such as gay rights, abortion, euthanasia, relaxing drug laws etc.
    But at the same time, libertarians will not compromise their principles just to get more socialists on board.
    So expect a lot of economic debate.

    If libertarian socialists are going to feel isolated by anti-socialist economic remarks, they are going to feel this anyway whether they hear them early on or whether they are gradually introduced to these anti remarks. The economic debate has to emerge sooner or later.
    And capitalist libertarians are going to argue that free trade results in better quality of life and happiness for more people.

    I don’t worry about consumerism or materialism. I think these “problems” are usually pushed by those with a career agenda who benefit from making people feel guilty over nothing. This doesn’t necessarily make them wrong but some very important things in life can never be materialistic, like family, relationships etc. No one can achieve happiness without expending energy in non material pursuits (unless they’re a clinical sociopath). Most capitalists know this.

    Perhaps what people (including socialists) are really afraid of is hedonism.
    An overly hedonistic culture is in my opinion partly due to a back lash against an oppresive society.

    All animals alter their environment for their own benefit. It’s a normal, natural thing. For humans it’s especially important because our brains are our main tools of survival from inventing fire making to vaccines. It is necessary to allow people the freedom to solve problems.
    The idea that nature exists in some kind of perfect equilibrium without humans is a myth. Everyone knows its constantly evolving. Also, without humans, life on earth will be destroyed anyway because the sun will eventually swallow up the earth as it expands or a comet will hit us or something. We know that there are mass extinctions without humans eg/ the Permian extinction and the dinasours. So this whole idea that humans should be restricted from tampering with nature is wrong (unless people adversely and forcibly affect other humans, then the courts should prosecute them).

    In regards to consumerism. I assume you’re worried about using up all the resources on the planet. Well, these days the earth supports more people than ever before and people enjoy better quality of life overall. eg/ people in the middle ages had a shocking life expectancy and there weren’t even that many of them.
    I don’t think there’s any reason to think this trend won’t continue. Science and technology need to flourish to solve any resource problems. And the best way to achieve this is when there’s more money (which in reality means more products people find valuable, or more excess resources) to spend on research. So many libertarians argue that society should be set up in a way to maximise new resource development, and that the best and most moral way to do this is capitalism. For example, when humans learnt to create excess food and store it, they then devoted their attention to improving their life in new ways.
    John Humphries led a discussion a while back (on this blog) called “techno-optimism” that is somewhat related to this idea.

  41. In regards to consumerism. I assume you’re worried about using up all the resources on the planet.

    Not at all, because resources can’t be used up, really. All our “used” resources still exist on earth, just in waste forms. We just need to find ways to efficiently reconvert waste into new resources without using too many other resources. We’re only seen the tip of the iceberg when it comes to recycling.

    I’m optimistic about science and I’m progressively minded in terms of the environment. I find it funny when Green conservationists call themselves progressive, really they are just environmental conservatives- reluctant to embrace change.

    Consumerism worries me because people consider a new pair of brand-name Nikes more important than preventing starvation in third-world countries; or at least the former is more prevalent in their minds than the latter. Obviously one person can’t do a lot, but approximates have been flirted with that say if everyone in a first-world country donated 10% of their income to aid programs in the third world starvation and poverty could be eradicated. Now the numbers may be off, but the principle is good.

    I do agree with Brendan above when he says certain types of aid don’t help the problem. But community building projects, where communities are given the means to efficiently and effectively produce something of worth on the global market are definitely headed in the right direction. It’s a more productive use of money than paying $40 extra for shoes that have a particular brand name on them.

    Of course, on issues of environmentalism I think that the less we change our natural environment the less coping strategies we’ll need to develop in the future. The sooner we use up resources we have experience dealing with the more pressure we’ll have on us. I don’t support the curtailing of rights in the name of Global Warming, but I do think that doing things as individuals- such as pay $2 extra per month for “Green Energy” can help slow the process.

    And Brendan, I don’t oppose semantic drifts so long as people are willing to engage in communicative clarification. My friends often use the word “gay” as an insult without thinking about it, which once was quite offensive to me. That is one word I like to try and preserve so I’ll discuss the implications of it with them, similar to the way you’ve discussed why it’s important to preserve a narrow interpretation of socialism.

    That page you linked to talks about communist deaths- most socialists now days have attempted to reclaim the word “socialist” and use “communist” to refer to previous failed communist regimes. Communist is used to mean “statist socialist”, whereas socialist refers to the ideology driving communism.

    We’ll just have to agree to disagree, “socialism” has no negative connotations to me until people start advocating government sponsored theft. Communism is something altogether different. But as with all definitions that have no real world referent they will vary from person to person. Even words with real world referents can have problems. My aunt always insisted her car was red, but to me it was blatantly orange.

  42. The following quote may be relevant here: –
    “Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience.” —C.S. Lewis

    ( Swiped from Born Again Redneck)

  43. Now that is something I agree with and indeed it is what scares me about the Christian Right. But elements of the left are just as scary, I agree. Most lefties just don’t realise they are as bad as the Christians.

  44. Shem,

    In Marxism, communism was the goal, socialism was the intermediate stage. That is why the many of the so called communist countries actually identified themselves as socialist, such as USSR. You will not convince me that socially minded people calling themselves socialists are using the word correctly.

    Try and tell the social conservatives in the Liberal Party that they are socialists, and you’ll have them choking on their English Breakfast tea, and they claim to be the protectors of traditional social institutions such as church and family that promote community building, even though this fits into your broad definition of socialism. They are statists for sure, but not socialists. If anyone who advocates social cooperation is a socialist, then just about everyone except hermits are socialist. Not a very useful definition.

    I’ll leave it here. Go on and self identify with a cause responsible for more deaths in the 20th century than any other political movement in the history of man if you want. It just makes me angry that people can dismiss a whole era of human history that is ongoing even today in North Korea and China by saying that they are socialists, but not the bad kind of socialist, our socialism doesn’t end in gulags and genocide. It is a very misguided and dangerous way of looking at the world.

  45. Christianity, as far as I know, has been responsible for more wars than any other religion in history (Islam is probably catching up). Yet people are not afraid to call themselves Christians.

    Christianity angers me, especially when the perversion of Jesus’ teachings continue to inspire hatred and groups like http://www.godhatesfags.com gladly cheer the murders of “fags” (Matt Shepherd). People still call themselves Christians, because they’re not the bad kind, their Christianity doesn’t end in death and discrimination.

    The evils motivated by certain Christian movements are not representative of the Christian belief system. Thousands of years of history- the inquisition, the crusades, etc- all the name of a Christian God were a perversion of the philosophy of Christianity.

    Similarly communist states that have existed are not representative of the socialist ideology. A century of history- the USSR, China, etc- all in the name of socialism were a perversion of the philosophy of socialism.

    The term socialism existed before Marx and before the USSR. And people believing in egalitarianism have started to reclaim the term. Now it is fair enough to criticise egalitarianism of producing negative outcomes and being impractical. But to say that socialists are inherently statist is akin to saying Christians are inherently intolerant. I don’t believe either generalisation is true.

    But I’ll end it here, too.

  46. I think the practical point to take away is that both Christianity and communtarianism only work when involvement is voluntary.

    There are many examples of involuntary socialism and Christianty being brutal, oppressive and downright medieval.

    Furthermore,

    1. Christianity is a failed belief system when your ethics are legislated. If God gave us free will, why should politicians have the power to take it away?

    2. Markets always allocate goods better because the price system is rational. Prices reflect and are concise capsules of information regarding scarcity, supply and demand and the value of goods. Communism is irrational, socialism cannot handle the information required to allocate resources as well as free enterprise.

  47. There is no reason that a socialist (or communist or whatever you might want to call it) commune can not live in a libertarian society. It would just have to be a local-level sort of thing. Most socialists think in national (or even global) terms, and this is what creates its downfall because there is just so much information and so many differing opinions between groups of large people that it simply cannot work.

    I don’t see, however, how a nationstate could be “libertarian socialist”. You both have free choice, and you don’t? You work to both your individual ends and the ends of the nation, even when these ends are different? Sounds like an oxymoron to me.

  48. The answer to Shem’s problem is to stop calling himself a socialist. His meaning differs from virtually everyone else’s, making it inappropriate. Libertarian socialist, in common understanding, is simply an oxymoron.

    If he were to call himself a voluntary communitarian, on the other hand, we’d generally know what he meant and respect his wisdom.

  49. Shem – On your 10% foriegn aid idea, a link to a research paper exploring Peter Bauer’s thesis that aid is destructive and what countries need are secure property rights. Haven’t read it myself yet, just followed the links from Catallaxy.
    http://www.independent.org/students/garvey/essay.asp?id=2042

    I think most libertarians are voluntary communitarians to some degree. For myself it is a fundamental part of my view of free markets and how consumer sovriegnty without government interference can reshape economies – empowering individuals and communities – rather then our current crony capitalism (as GMB would call it). Which is why I am involved with Bendigo Bank’s community banking programme. Which I started to write a post about some time ago but haven’t gotten back to. I call it community capitalism. Australia has a strong ethos of volunteerism, and we can run a civil society without a government, if given a chance.

  50. And we can run a civil society without big government interference if given a chance. Don’t want to be seen advocating aarcho-capitalism while being an LDP candidate, if I ever get round to doing some campaigning…

    Tim

  51. Perhaps socialists make the same mistake as George Bush and equate democracy with freedom as opposed to majority rule.

    I checked several dictionaries. None mention “voluntary” when describing socialism. Several mentioned state or government control and many mentioned a political system.

    So based on colloquial useage, dictionary definition and empirical evidence, socialism can be assumed to be involuntary.
    Totally unlike the concept libertarian that has voluntary interaction as one of its fundamentals.

    And I personally think it’s important not to let dishonesty and inconsistency creep into libertarian fundamentals.

  52. Shem… you may be a linguistics major, but I’m a political economy tutor and I promise you that your definition of socialism is wrong. Socialism means government ownership & control of resources.

    Quick polsci lesson. In 1848 Marx writes communist manifesto. The communist plan is for a dictatorship of the prolateriant that forms a socialist society with government ownership & control of resources (explicit statism). Over time the government will hopefully fade away and we’ll reach communism with no government and people voluntarily living the “good” (ie non-material) life with little (or no) money-based economy.

    A bit later there was an argument… with some in the communist movement objecting to the “socialism” part of the plan. Orwell best summed up this position, arguing that the socialist government would never fade away and would effectively enslave the people (read “animal farm”). These break away chaps called themselves “anarchists” or various other names.

    The reality is that every country trying “communism” has actually used socialism.

    The best bet for anarchy (or end-state communism) is libertarianism… extending to anarcho-capitalism… leading to more wealth… leading people to spend more time helping others and pursuing the “good” life.

    And of course, in a libertarian (or anarcho-capitalist) society, communists can always get together on their land and make their own rules and people can voluntarily join or leave when/if they want to.

  53. Damn you, I already said I wasn’t going to contribute any more, but…

    A word is a sign, which corresponds to a referent in the real world. In this case, the referent is both an ideology and a political movement and hence there are two senses of the word which is an example of polysemy (two senses of the same word with related, but distinct meanings). This is not at all uncommon and words seem to have a tendency to become polysemous- some of the most common words are the most polysemous.

    I have done an assignment recently where I identified approximately 12 sense of the word “under”- “The shark is under the boat”, “There was an intricate pattern hidden under the muck”, “The shark lives under water” and so on. Obviously these words are related, but there is not a single definition that can be used.

    Similarly, the socialist ideology and the socialist political system are closely linked, however they are two legitimate uses of the same word. Legitimate because people use the word “socialist” to refer to a moral ideology, hence there is both a referent (the ideology) and a word associated with that referent that is understood as being the sign for that referent. It may not be a universal usage, but plenty of words start out as idiosyncratic to a particular speech community.

    What we are seeing in recent times is a reclamation of the word “socialism” by the younger generation, it’s no different to how the gay community has started using the once derogatory word “queer” and extended its usage to mean “of alternate sexuality”, “socialism” is being revitalised and re-extended in scope to refer to more than just government systems as exist(ed) in the USSR and China.

    As for history, well prior to the communist manifesto there were a number of what are known as “socialist utopians” that wrote on the merits of an egalitarian society. There was nothing statist about their utopian ideologies. There was some division amongst people that followed these philosophies as to whether “socialism” or “communism” best described the ideology but the terms were used interchangeably.

    Then Marx came along, wrote the communist manifesto and imposed his own definitions of socialism and communism onto the word; though oddly in recently times socialism in the sense I have used it refers to the same thing that Marx labelled as communism. I think this is largely because communism, in the minds of the general public refers to the corrupt socialist states that existed. The cold war was fought against “communists” and the paranoia was the communists were going to take over. Additionally the word “socialist” is used in mainstream political movements to refer to a lot of parties internationally and indeed a lot of commentators will happily say Australia and European countries are social(ist) democracies.

    So we are seeing a change in definitions from what Marx intended, but Marx was hardly the creator of the terms. You can fight against the change all you want, but if the younger generation continues using the words as a speech community as they do I can assure you that over time, especially as the people that lived through the Cold War die out, the second sense of socialist will rise to prominence.

    A lot of self-identified socialists still are pushing towards government intervention as the “right” way, but those that do still see it as transitionary and not all self-identified socialists are statist, preferring to rely on community movement such as marches, strikes, etc. Even those that think state socialism is a necessary transition aren’t in favour of large government as an end.

    Libertarian socialism may sound oxymoronic, but really it is just a moderate political position for those that are ideologically aligned with anarcho-capitalism. It’s a belief in smaller and fairer government simultaneously which logically must include greater government spending efficiency. Not all political movements are fundamentalist and even the major parties in Australia aren’t exclusively capitalist or socialist. They do seem to be almost exclusively interested in larger government, though.

  54. Shem, many utopians both before and after Marx are not explicitly statist. They describe how good it will be in a society in which people don’t do this (which they are now doing) or do that (which they are not now doing). But in these ideal societies, either people are going to be free to choose whether to do this or not do that, or they’re going to be forced to obey. There is no other option. There is no middle path. There is no ‘third way’. Libertarian socialist is a contradiction in terms. You can’t be in favour of forcing people to do something if, left to their own devices they are hurting no-one, and against it, both at the same time.

  55. Justin;
    There is the possibility of another option, and that is the possibility of purchasing an area and seceding from whatever state controls it and forming your own utopian society under a predetermined set of rules, eg. socialism, communism, unchained capitalism, anarchism, religious fundamentalism, or anything else that you are into. People could be part of it as long as they agreed to the principles of that society.

    As long as the rights of the inhabitants are respected and they are free to come and go as they please I see no problem with this, apart from the fact that it has not worked in the past.

  56. Shem said:

    “Similarly communist states that have existed are not representative of the socialist ideology. A century of history- the USSR, China, etc- all in the name of socialism were a perversion of the philosophy of socialism.”

    Shem, all these countries were representatiive of the socialist ideology and that’s the whole point. The fact that they resulted in human rights abuses does not excuse the socialist belief system – it proves that the theory was wrong.

    You are merely trotting out the standard excuse that socialists themselves trot out. According to your point of view, all the human rights abuses which happened in the ‘socialist’ states – which just happened to be the most enormous and atrocious in the history of the world – were just some kind of strange coincidence – nothing to do with socialism, properly understood. Please acknowledge that the statement in the last sentence is true.

    The reason why these abuses followed from the socialist belief system – (I will not dignify it with the name of philosophy, which means ‘love of wisdom’) – has been shown by Ludwig von Mises. In short, if ‘society’ is not going to make decisions on how to allocate resources by way of the free action of individuals seeking to satisfy their own values, then it’s going to have to do it by way of command and control, and by way of bureaucracies.

    Right at the start there is the ethical difference. Libertarians oppose the use of violence or the threat of violence as a way of co-ordinating social action: socialists are in favour of it. But it gets worse.

    Since no-one chooses to pay for the services state bureaucracies provide, they are cut off from the sense and discipline of market supply and demand, and are intrinsically incapable of satisying the expectations of their consumers as to service, or cost, or both. The only alternative is the planned chaos that characterises political diirection and bureaucratic action. As the unintended consequences of each misguided intervention becomes obvious, the only remedy, since market action is out of the question, will be more state interventions, but they will all suffer from the same original problem, that the state has no way of knowing how to rationally calculate how best to use resources economically. To supply the function of individual freedom which has been banned, state officials will need more and more unlimited discretion in order to supply the flexibility of decision-making which in a free society is supplied by individual freedom. So the state will need more and more unlimited power. The state will grow and grow, and it will get the resources by violently taking them from the individuals who are subjected to it, who must necessarily be cast in the role of property of the state. What you own, you get to decide what to do with. But the individual won’t own his life or get to decide what to do with it, because the state will claim, and wil take that right on its grand quest for ‘social justice’. Individual freedom will necessarily be subjected to state power, because if it was not so, people would do what they want, and it would be capitalism. The result will be economic impoverishment, political authoritarianism, and moral confusion brought about by the original value placed on the violation of self-ownership, human freedom and property rights in the name of the ‘rights’ mandated by the state in the name of the greater good.

    That is why socialism produced the results which, when socialists see them, they want to dissociate themselves from out of shame at what a fucken mess it is. So they claim it was all a dreadful mistake, a perversion of the true values of socialism, which are kind and good. But they are merely displaying their ignorance of the consequences of their own beliefs, values and actions.

    It doesn’t matter if you don’t understand it, it doesn’t matter if people think they are doing good, and it doesn’t matter if a majority are in favour of it. The truth remains the truth whether or not it is ignored and misunderstood, and your defence of the socialist belief system is merely displaying the socialists failure to understand why it resulted in the enormous and unnecessary human sufferiing that it did. The proper course is to acknowledge the facts and learn from error, not to ignore it and arrogantly proclaim, as socialists do, the right to continue doing the same things that caused all those crimes and abuses in the first place.

    By the way, mises.org is an excellent source of information on this.

  57. Jim Fryar, regarding #69-
    When Australia formed a federation, WA was not included in the preamble, so I wonder what would happen if a part of WA seceded from the state? If the Kimberley people called their land a State, what would be its’ Constitutional status? Would it be automatically included in the Commonwealth, or could it declare itself an independent nation?

  58. Terje, I don’t agree with Australia being called a “democracy”. When it comes to ideas every person has their own interpretation, it’s not like solid objects. You can point to a tree and say “that’s a tree” but it’s much hard to point to democracy or to socialism- you can only point to examples and theories. And often the examples and theories don’t match up so you’re left with an array of definitions for the same word.

  59. Nicholas;
    I’m afraid I didn’t study constitutional law, so I am relatively ignorant on the subject. Someone else may be able to help, it would be unusual for a political party not to have a few lawyers in it. its an interesting point though.

    The old Progress Party policy was that secession would be allowable provided that the rights of the population were at least equivalent to those they were seceding from. We did have two QCs, David Russell, and Gary Sturgess but I don’t remember any discussions on the legal or constitutional aspects, although that could have occurred in my absence.

  60. I really don’t know, Viv Forbes, Ron Kitching, are people I am still in regular contact with, but neither of them have taken the bait, I hear of a few others occasionally but am not in contact. Some have joined other parties over the years, I couldn’t bring myself to do that as none of them ever represented my beliefs.

    I was actually thinking along the same lines as you seem to be, and I wish I could be of more help as they were bloody good value, but after all those years I am pushing to remember them all. Usually I remember when I hear a name and it rings a bell.

  61. When the Progress Party held meetings in Sylvania, I attended one of their meetings on a Sunday afternoon. Whilst they had some good ideas (they were the same as mine, so of course they were good!) they didn’t put forward a comprehensive plan, or have a solid book that could be used as a base for policies (Human Action, by Ludwig Von Mises, comes to mind as a good base.)
    I did get a good joke (Q. What is an agnostic? A. A god-fearing atheist!), but as a political party, it wasn’t doing much.
    Let’s hope that those Progressive people join the Liberty and Democracy Party, and that the party goes from strength to greater strength!

  62. I’d like to say that although I don’t agree with Shem’s liberal interpretation of political terminology (and said so in this thread repeatedly), it does seem he is for small government and strong property rights, so he can’t be that bad a bloke.

  63. The most active branches back then were Qld. the NT and WA, and although NSW had the most visible member,- Singo, I don’t remember much activity from them. I wonder what Singo’s views are now, the guy is a genius.

  64. Jim, and all others.
    Re #69,#72 & #74.
    The preamble leaves out a definition of the size of each State- remember when Victoria tried to grab some NSW land by rectifying the eastern border recently? Maybe a new state could be declared that is not automatically considered a piece of the Commonwealth? I know that the idea is canvassed now and again that some states are too big, like Queensland and WA. Does anyone know what their constitutional status would be?

  65. DavidLeyonhjelm: Libertarian socialist, in common understanding, is simply an oxymoron.

    Sorry, David, it’s just not that easy. “Taxes are theft” is also, in common understanding, an oxymoron or best a line of propoganda. If we are to go by “common understanding” we can’t talk about anything except in the most elementary or deceitful way. Since this is a libertarian blog by a libertarian group, I think it’s quite reasonable to expect technical terms relating to philosophical, social, and economic systems rooted in libertarianism to be be widely recognized — or at least people participating here should be willing to go look them up. A google search is just a click away.

    Libertarian socialism is a well-established term in the literature with Noam Chomsky being perhaps its most famous living example.

    I think the ALS tries to be a “big tent” liberatian group. If that excludes libertarian socialists like myself, let me know.

  66. I always thought of the Greens as Libertarian socialists. Whereby the only way they could get properly elected was if they change their views so much that they ceased to be the Greens.

    And honestly, i just cant think of Libertarian Socialism as anything but a contradiction. Seeking to completely abolish any kind of command structure, although championing Unions and workers councils.

    So…. the only way that the system can work is if everybody willingly doesnt want to better their lives, be individuals or generally anything. Also, if you were free in your individual life… *the liberal part of it* Shouldnt that include being free to set up a business and a authorative structure???

    Sounds absolutely horrible. The only benefit from a free socialist system that i can see is that people will freely be able to buy the guns to end their lives with.

  67. Trinifar,

    I think Wiki puts it well “Libertarianism is a political philosophy that upholds the principle of individual liberty. Libertarians maintain that all persons are the absolute owners of their own lives, and should be free to do whatever they wish with their persons or property, provided they allow others the same liberty.”

    “Socialism refers to a broad array of doctrines or political movements that envisage a socio-economic system in which property and the distribution of wealth are subject to control by the community[1] for the purposes of increasing social and economic equality and cooperation.”

    The only compatibility I see is if you are talking about voluntary socialism where people living under Libertarian laws voluntarily decide to collectivize. Anything else is coercion and is therefore anathema to Libertarians. You can call it Libertarian Socialism or call it New Coke but coercion of any sort is not Libertarianism.

  68. I met a socialist once, and he was amazed that the Pro-business party called itself Liberal! As I explained, they meant liberation FROM Government, not liberation BY Government. I suppose a socialist libertarian believes in first ensuring that all people are equal to start with. i think that the power to enforce such equality would be a self-perpetuating one, but I have often found myself thinking ‘If only we could start from scratch!’ Socialist libertarians would want to reform existing societies, whereas capitalist libertarians want to found new societies (and thus all start equally from the word ‘Go’) And of course, you should consider what you want to be liberated from- Big Government, or Big Business? Trinifar might be an Anti-Big-Business libertarian.

  69. Here’s the first part of the Wikipedia entry on libertarian socialism:

    Libertarian socialism is a group of political philosophies that aim to create a society without political, economic or social hierarchies – a society in which all violent or coercive institutions would be dissolved, and in their place every person would have free, equal access to tools of information and production, or a society in which such coercive institutions and hierarchies were drastically reduced in scope.

    This equality and freedom would be achieved through the abolition of authoritarian institutions and private property, in order that direct control of the means of production and resources will be gained by the working class and society as a whole.

    But that’s just one view. Here’s a one liner from another writer:

    The key elements of libertarian socialism – decentralisation, democracy, popular sovereignty and a refusal to accept that collectivism means subjugating individual liberty – have a strong pedigree, going back to the mid-seventeenth century, the English Civil War and the radical activists of that age….

    Look, I’m jaded. I don’t see any pure libertarian socialism ever coming into being, but, to me, it is a better vision to work toward than one where we all fight for resources and property — even in societies in which there is more than enough for everyone — and turn our backs on those in need.

    Perhaps Nicks label Anti-Big-Business libertarian is a fitting one too. Many business are have more power than governments. The very things that most libertarians object to in government are often found in big business: centralization, distortion of markets, arbitrary limits on personal freedom, coercion, etc.

  70. What business has the power to launch armies and to create laws? What business has a budget approaching that of the government they live under? What business can lock people in cages when it decides they have done wrong?

  71. What business spends as much as the Australian federal government on advertising (ie: propaganda)?
    None, not even the big companies like McDonalds, Nike etc come close.

  72. That sounds like utopian communism to me Trinifar. Abolition of Private Property? You cannot seriously support this can you?

  73. I don’t wish to eliminate private property, but I felt it only fair to present what seems to be one popular conception of libertarian socialism even with the bits I don’t like. I’m not head over heels in love with private property either, since it can so easily become the means to dominate others. To me it’s bad ethics to condemn coercion with it comes with the threat of prison but look the other way (or even approve) when it is done through economics.

    In fact, the concept of private property would be interesting to explore on its own thread. When you buy a book you own the paper, not the content. IPR is a vast subject. So is the older idea of owning land or any nonrenewable resource.

    One commonality between the USA and Australia is how land ownership changed between roughly 1800 and 1900. During that period European settlers simply pushed aboriginal people off the land, buy force as often as not. So in both countries today all land ownership is based on that original theft.

    Product life-cycle issues are interesting too. How many people properly dispose of old products in a way that ensures they go into a well-managed wastestream and don’t just pollute the commons? We don’t seem to honor the notion that owning property comes with civil responsibility. Most companies and individuals are quite happy with the notion of externalizing costs at every opportunity — which is to say, let other people pay for my satisfaction. I think it is theft.

    One of my favorite topics is fossil fuel. Who owns the oil and natural gas still in the ground? From whom did they by the rights? Since they are non-renewable, many think we own it to future generations to leave a little for them. And of course burning fossil fuel fouls the atmosphere, currently at no real cost to the person doing the burning. To me, this is a complex property rights issue.

    In short, before you think I’m insane to want curtail property rights, I think it’s only fair we try to agree on just what “property” means and whose rights are involved. For example, when it comes to fossil fuels, this is a zero sum game of the purest sort.

  74. Mark: Abolition of private property? What if I create the property?

    As I said above, the pure form of libertarian socialism calls for all property to be community owned, but I see no reason to be that extreme. It strikes me as counterproductive. But I do favor limits on private ownership if only to combat the coercion of economic domination by a wealthy minority over the working class and the poor. To me, it’s quite obvious that the few at the economic top of the spectrum have not been good stewards of the planet or the economy.

    I have this silly notion that the economy exists to serve people, not the other way around. I have another absurd notion: most people — the vast majority, nearly everyone — want to be productive members of society. There are very, very few who would, given the opportunity, sit back and let others do all the work.

    I think the rightwing libertarianism most people here seem to expouse is quite naive. Well, mostly naive. There’s a dark side too. I think for some — and I’m not thinking of anyone in particular — it’s an excuse to take as much as they can from others, a sort of “live for today and screw all future generations.”

    One distinction worth noting is the difference between an ordinary individual and a huge corporation. If you go out to your workshop in the evenings and build some furniture, I think you own that furniture and can do what ever you like with it. Sell it, burn it, sit on it, it’s up to you.

    This is vastly different from, say, big-time agribusiness in the USA which owns enormous tracts of land and is the very embodiment of industrialized agriculture. Real-world issues we are dealing with in this case include pumping out acquifers faster than they are naturally recharged, pesticide and fertilizer runoff fouling the Mississippi and other riverways (even the Gulf of Mexico and its dead-zone), monocropping, etc. I don’t think the fact that they “own” the land and the means of production means that they can do anything they wish — not when their holdings are that vast and directly affect the lives of so many. Even Adam Smith knew that the invisible hand didn’t always work optimally.

    When you are dealing with acquifers in the Midwest (one of which may be the largest in the world), one of the largest river systems in the world, and a large portion of the world’s food supply — I think it is essential for the larger society to curtial the property rights of the owners. But I’m quite happy to see individuals owning all the rights what they produce on their own — not because of some intrinsic right, but because it’s good motivation without much danger to the rest of us. Still, there are still things I want you to prevented from doing even with your own property, like creating explosive devises. For that, I’d want you to show cause and agree to be heavily regulated.

  75. I think that your getting close to the central question that politics should be focused on. The point of political discussion should be to define property and it’s boundaries and then privatise it. Once privatised any push to redefine the boundaries should be actively resisted. For example when radio waves were discovered the best course of action would have been to define the boundaries (geographic, frequence, range etc) and then to privatise the spectrum. Perhaps the initial lots put up for sale may have had some zoning (ie Radio here, TV there) but the point should have been to allow the market to merge, split and or zone lots essentially free from interference. Maybe there might be the need for the occassional appropriation (on just terms) to build the equivalent of a freeway, however that should be rare.

    Intellectual property is more fickle and less analogous to land. But the basic concept of ownership, boundaries and rights should apply.

    Of course it is all a series of experiments but the point should be to create secure domains in which people can be creative and can own the product of their efforts.

  76. “To me, it’s quite obvious that the few at the economic top of the spectrum have not been good stewards of the planet or the economy.”

    Can you give any evidence of this? Last i checked, the richest people in the world were all philanthropists, and created a huge amount of jobs for people.

    ” I think for some — and I’m not thinking of anyone in particular — it’s an excuse to take as much as they can from others, a sort of “live for today and screw all future generations.”
    “One of my favorite topics is fossil fuel. Who owns the oil and natural gas still in the ground? From whom did they by the rights? Since they are non-renewable, many think we own it to future generations to leave a little for them.”

    You know, with the whole libertarian socialism thing and conservationism, I think the Greens and you go hand in hand.

  77. To a degree i do agree with you on a few points about the run off of things from private property, for example, i have some welfare people move into a house reasonably close to mine, i dont know how they managed to afford a place in the neighbourhood, although it has been terrible since they moved in. Loud bass music at 4am, fighting on their property, dogs barking, etc. These people rent this place, and as such the land lord controls them, but if they were to own it, would we be completely unable to try to change the music and the fighting and what not? Since it would be their private property and libertarians believe on doing what you will with your property, what do you do when it spills out into other peoples lives, through noise pollution and the like.

  78. Trinifar,

    The economy doesn’t do anything. It doesn’t demand tithes.

    The economy is simply people acting in agglomeration to overcome scarcity.

    By definition, econoimic activity serves people. “People serving the economy” is a strawman.

  79. Trinifar,

    You describe a situation with Govenrment held land and a lack of clear private property rights and then blamce free enterprise and private property…

    Agribusiness is bad because it is subsidised and no one owns the aquifers. The Govenrment promotes inefficiency and the common pool problem. This is not the invisible hand at work!

    The need to get rid of the 300 bln USD pork and let people control property they use.

  80. How far should private property go? If water is privatised then do you own the water itself? Or just a collection point for the water? If I own a tree and it grows into my neighbour’s backyard and starts bearing fruit is it my fruit, or his?

    But in regards to your earlier question, Mark, how are you creating property? I’m pretty sure creation is limited to God, if you believe in one.

    All humans can do is reshape things. In reshaping things you are taking something from the earth, does that give you a reason to claim exclusive use of it?

    On the abolition of private property, in a utopian libertarian socialist world it would be replaced by the idea of personal possession, to quote wikipedia:

    Many libertarian socialists argue that large-scale voluntary associations should manage industrial manufacture, while workers retain rights to the individual products of their labor.[24] As such, they see a distinction between the concepts of “private property” and “personal possession”. Whereas “private property” grants an individual exclusive control over a thing whether it is in use or not, and regardless of its productive capacity, “possession” grants no rights to things that are not in use.[25] A property title grants owners the right to withhold their property from others, or, if they desire, to require payment from those who wish to use it. “Possession,” on the other hand, is not compatible with this form of “exploitation” or “extortion.”

    It goes back to the idea of when you are kids and you are fighting in the playground over use of a toy. The person that was using it first has a right to keep on using it. But once they are done with it, it’s fair game. Sharing is the order of the day.

    It’s an oversimplification of things, but a lack of ownership with respect for “fair use” seems like a good concept. Of course there would have to be some flexibility. When I’m at Uni I’m not directly using my house, but it would be a bit unfair for someone to start squatting just because I’m not home. I think I could reasonably argue that my house is “in use” until I move out of it.

    I am anti-big-business, too. But I’d never claim that businesses are as coercive as government. Business is the lesser of two evils, though at times it seems some big businesses have a more “evil” motivation. At least (some) governments try to do the “right thing”. Governments enforce morality, but often big-business manipulates people into immorality (best example of this is Joe Camel and child-focused smoking advertising).

    In reality if people were only allowed to keep what they use I’m not sure how things would go, whether there would be a reason to produce more than one can use as is the case in society now. One of the reasons capitalism produces a net benefit is because the wealthy can spend money producing goods for others and make even more money out of it. I don’t know if people would be altruistic enough to live in a society of real communal ownership. Then again, I doubt big-business owners would be altruistic enough to live without regulation. If regulation was minimised and law was just based on the concept of freedom it wouldn’t be surprising for big business owners to use their money to avoid the law. Corruption, fraud, deceitful marketing. These are things that have to be considered “coercive” and illegal for a pure libertarian society to work. And what is laws to stop certain business activities if not regulation?

  81. Creating property, If i get a slab of clay out of the ground and make it into a $3000 pot, that is creating property. You have made something from minscule value into something of large value.

  82. But it is only legitimate if you owned the slab of clay in the ground to start with.

    Property can never be created except when a “terra nullius” kind of policy applies in the first place. All property is owned by someone originally. “New property” can only be created by either trading or stealing resources.

  83. If I give a pottery maker a slab of clay to make me a pot, I must pay her for her services, because even though I still own the clay that made the pot, she owns the value of turning the clay into a pot.

    If she steals my clay, turns it into a pot, then returns it to me, she is still guilty of theft, as she has stolen the alternative uses (value) I may have had to use the clay.

  84. Perry Ferguson: Trinifar, You didnt answer the question about business having more power than governments.

    I didn’t mean to suggest that their power was the same as governments, only that a large business can wield power in such a way that its influence on a person, community, or region can be greater than that of the government in very important ways. For example, in the Pacific Northwest part of the USA it’s not unusal for a small community to be dominated by a large timber/lumber company headquarted in another state. In one notorious case such a company was being sued by the local district attorney for breach of contract (the company had clearcut a hillside above a village and a subseqent mudslide destroyed six homes). The company, based in Texas, funded a local recall election to remove the district attorney (and thankfully won re-election).

    Other examples involve Wal-Mart’s enormous stores destroying a local economy by moving in, undercutting the local competition, then closing the store when it’s no longer profitable. The locals are left with nothing — it’s a sort of invisible hand of distruction. There are whole websites dedicated to documenting these and other wonderful aspects of Wal-Mart’s power.

    The economy of a small community is quite different than that of a city, and examples of large companies abusing their power to the detriment of the locals are common enough.

    An different but equally odious effect can be seen in a country like Nigeria where large oil companies are more or less doing as the please while enriching a handful of government officials. Very hard to see the average Nigerian benefitting from having their oil transfered to other countries. Could say the same about oil companies in Saudia Arabia from about 1920 to the 1970’s. Ditto for Iraq and Iran. Look how well that’s turned out.

    As others have pointed out, a big business has no goal other than to make a profit and increase share holder value. It has no morality or ethics.

    It’s this kind of capitalism that drives John Bogle up the wall, as you’re about to learn. John Bogle believes owners should be in charge — and accountable. He’s known and respected world-wide as the father of index funds and the founder of The Vanguard Group, one of the largest mutual funds anywhere, with over a trillion dollars in assets.

    Check out this interview with Bogle (both video and transcript at the link). I found it rather riveting to listen to a superstar capitalist talk about how important it is to regulate the economy for a variety of good reasons.

  85. In your last example, i wouldnt blame Big Business for that but Big government, the thing that you are apparently supporting.

  86. Perry is right Trinifar. There is no way for a company to exploit people unless there is a government hand in it.

    As for your Wal-Mart example: What is to stop someone else starting up a business after Wal-Mart moves on? Why should Wal-Mart keep running an unprofitable store? Why would you usurp the customers freedom of choice to shop at Wal-Mart if they’d prefer to?

  87. Ben & Perry: There is no way for a company to exploit people unless there is a government hand in it.

    Have you ever lived in a small town dominated by one or just a few big employers? I admit, if the these big businesses are run in an enlightened way it’s not a problem. But I ask you to admit that if they are only focused on increasing shareholder equity and, as is usually the case, those shareholders are not part of local community, it can be at best problematic, and often disasterous.

    Take the case of a small rural community that has a variety of locally run businesses. Wal-Mart moves in and everyone hails the virtues of a vast coporation bringing them, among other things, cheap products from China. But the local businesses get wiped out, they don’t have the economy of scale of a Wal-Mart, and the downtown area starts to be boarded up. After a while local people who can start to leave since without a vital downtown it’s not an attractive place to live. With the local economy depressed and people leaving, Wal-Mart decides to close its store. The remaining locals try to pick up the pieces, but the people who anchored the local economy have left, Wal-Mart has left taking its jobs with it, there’s now no reason for the community to exist. How has this series of events benefitted anyone but Wal-Mart’s shareholders?

    The government has no hand in this scenario. It’s just free market capitalism. You might say that if this can occur it’s a benefit to the larger society, but I’d challenge you to explain just how. At one point you had a viable community, then after the Wal-Mart experience you don’t. How has that improved the world, or even the region?

  88. Perry: I always thought of the Greens as Libertarian socialists. Whereby the only way they could get properly elected was if they change their views so much that they ceased to be the Greens.

    Fair point. Sounds a lot like Ron Paul running as a Republican — a pragmatic strategy.

  89. Trinifar and Shem

    I admit libertarian socialist seems like a contradiction in terms to me. I suppose if one advocated socialism that didn’t depend on compulsion, and people voluntarily participated in the socialist schema, then that would be libertarian socalism, is that what you’re saying? By these lights, mutual schemes, insurance, partnerships and corporations, are all ‘libertarian socialist’.

  90. Trinifar, other people are not your property. People who live in a small town don’t have any right to other people’s lives, freedom, labour, or property, unless it’s with the consent of those other people. If this were not so, we would be denying the principle of self-ownership, and must necessarily be affirming the principle that someone else owns you, which is exactly why socialism has so consistently been involved in human rights abuses.

    Absent privileges granted by government, business big or small is entirely subject to consumer sovereignty for every dollar of its revenue. Since the consumer has the choice whether or not to enter into the transaction
    a) it means people will only enter into the transaction if they think they will be better off
    b) they think that what they are getting out of the deal is a higher value than what they have given.

    That is why wealth increases under capitalism. Because voluntary transactions create value on both sides. By contrast, in coerced transactions the stronger takes from the weaker, there is a win/lose, and social value is destroyed.

    Profit is what is left over after the capitalist has provided to each consumer more value than the consumer thinks he has given. There is nothing immoral or unethical about making profits. Profit is a sign that the capitalist is serving the most urgent and important needs of the consumers, as *they* see them, as they really are, not according to the fancy of the grumbler or would-be dictator.

    It would be easy to make sure that companies don’t make higher profits: just do everything in a more inefficient way! Waste more resources. That is why ‘not-for-profit’ government departments always cost more than a private business to provide the same service. They still take profit, but it’s not called that: they take it in the form of chatting that big longer over the water-cooler, doing their emails and insurance at work, being paid more than anyone would consensually pay them for that work, taking longer lunch hours, unnecessarily compliicated procedures, and all the rest of it.

    To say that a person is ‘exploited’ in a voluntary transaction is to assume that you know what’s better for people, than people. You don’t, and what is more, that stance, especially if backed up by force, is far more immoral and unethical than any amount of community service that is based on freedom, consent and mutual benefit, any amount of profit notwithstanding.

    Socialists have always seen profit as an immoral quantity based on sheer economic ignorance deriving from the mistaken opinions of Karl Marx, which have been refuted in theory and practice so many times that it’s just not funny.

  91. By the way, big government favours big business because the taxation and regulation pushes many small business to the wall. There would be a lot more small business but for the many socialist schemes which are intended to improve society. Then when these schemes produce the unintended consequence that big businesses get bigger and can make bigger profits than would otherwise be the case, socialists in their ignorance blame capitalism.

  92. The profits that big business make are only the surplus value created on *their* side. But that is only one half of the equation. Each consumer also generates a surplus value from each transaction, in that he places a higher value on what he gets from the transaction than what he gives – otherwise he wouldn’t enter into it.

    According to the socialist logic, all this surplus value is also wicked and evil and nasty too. Since the business would cease to exist without their custom, and is dependent on them to buy its goods, they are ‘exploiting’ the business, because they are ‘forcing’ the business to trade the only things that it has to survive – its products – and the consumers are ‘expropriating’ the surplus value.

    Garbabe in, garbage out. See how the socialist belief system is able to construe the process by which society makes everyone better off at the same time as it respects freedom and responsibilty, and avoids violence as a solution to social problems, as an offensive, anti-social, immoral phenomenon?

  93. Libertarian socialism, as I see it, has two sides- the objective ie “a society where people freely enter into equal distribution of wealth without coercion from government or any other forces” and the process “smaller, more efficient government”.

    In the short term some welfare and some regulation produces higher quality outcomes than a totally free market would. Big businesses ARE smarter than most people and they are able to coerce people into buying inferior products with crafty advertising. Most people are dumb consumers- myself at times, too. I KNOW that my local Fish’n’Chip store sells better, bigger and cheaper hamburgers than McDonalds- yet I am still a sucker for advertising and marketing, I still pay more for an inferior product. Some people have bad luck, other people make bad choices and in some cases the government can minimise the harm, or do the research on companies so that consumers don’t have to themselves.

    There aren’t many roles that the private sector couldn’t take over. But in the short term, until a private company is able to monitor and regulate other businesses I’d like the government to have some involvement.

  94. Crafty advertising is not coercion.
    Buying inferior products is due to human guilibility, or ignorance. And humans learn quickly. Or perhaps, the product isn’t as inferior as you think, ie/ the product may be more easily available from many locations (eg/ McDonalds vs fish and chip shop).

    Definition: co·er·cion
    1. the act of coercing; use of force or intimidation to obtain compliance.
    2. force or the power to use force in gaining compliance, as by a government or police force.
    And don’t give me any semantics rubbish because I’ve posted a definition. Definitions are fundamental to concepts.

    Shem, I’m a bit worried about this last post of yours. You seem to be sliding down the slippery slope towards government regulation. You’re not talking about libertarian socialism any more. Now you saying that regulation is necessary in vaguely stated “short term”. Regulation as it exists today, usually means property rights violations by the state.

    In addition, you’re logic in the 2nd paragraph doesn’t follow. Just because someone or some business is “smarter” doesn’t mean they need regulating or mean they are likely to use coercion. Libertarians are smarter than your average joe and they’re anti-coercion! Dumb thugs are more likely to use coercion.

    You say that “in the short term, some welfare or some regulation produces higher quality outcomes than the free market”. This may be true in the very short term (although please provide examples). Long term analysis is definitely important and you are right to point out that regulatory assessment is often too short term.
    But as well as identifying “short term” analysis as a problem, there is another important and obvious aspect of regulatory assessment that is often overlooked: 2nd and 3rd order interactions. ie/ Some government regulation benefits one particular group at the expense of another. When assessing both groups overall, a net loss would be apparent. However the government investigation into the efficacy of the regulations will only look at the direct effects on the 1st group and forget flow on effects.

    And just to reinforce what I consider an important and basic libertarian point: Advertisment has nothing to do with coercion.
    NB/ Deliberate public dihonesty is wrong. But it’s not “crafty advertising”.

    The only way a business can coerce general people is through government involvement or government deals. For example, our government bails out drought stricken farmers.
    Also, just in case you think this, private monopoly is not coercion. It’s simply a lack of other choices.

  95. The LDP is in favour of keeping some regulation in the short-term.

    Let’s remove legislation where we can.
    Let’s improve legislation where we can’t.

    I want SOME body, whether private or the government assessing the content of my food periodically to ensure that I am not being sold dog meat labelled as “beef”. Without regulation a company could get away with that. If there is enough profit in using dog meat instead of beef, then they will be able to bribe people, lie and cheat to ensure that no-one ever finds out. Corruption is entirely possible without regulation.

    Regulation COULD move to the private sector, organisations like the “Heart Foundation” approving certain products would be great. But unless such organisations take over from government regulation I’ll happily tolerate government meddling in big business.

    If you don’t consider fraud/ dishonesty an act of coercion ie “forcing someone to do something they don’t want to do” then I think libertarianism has to take fraud into account separately. Usually the libertarian argument says “do you what you want, as long as it doesn’t involve violence or coercion”. If people are able to lie and cheat “freely” at the expense of the freedom of others than I think libertarianism has to take into account lying and cheating. And bribes. And manipulation.

    I don’t think a true libertarian society will be possible in my life time, if at all. But that doesn’t mean it’s a bad objective to work towards. Smaller government doesn’t mean no government. There’s a lot the government could stop being involved with.

    People allow the government to be involved because the government is great at manipulating the human mind. Big businesses are also great at manipulating people. But at least the objective of government should be improving society. The objective of big business is profit- if a business could make a profit by poisoning people and it was legal to do so, it would.

    In terms of advertising- look at Ribena- they lied- they claimed that the vitamin C in their product was much higher than it was. People bought it on those grounds. If I lie to you to obtain your money, it is theft. If I lie to have sex with you, it is rape.

    Government regulation- where it prevents theft and murder- is a good thing. If people stop buying McDonalds because they poisoned me, it isn’t going to do me much good, dead. I’d rather either the government OR an independent body do tests and ensure that their product won’t be capable of poisoning me in the first place. But as I said, it doesn’t HAVE to come from the public sector and in fact I think the private sector would have less motivation to allow itself to be bribed.

  96. Oh and just to emphasise the point- I’m a political conservative in that I think the rate of change in society should be moderate. I don’t and would never support a transformation to libertarianism overnight. But I think its the right direction to head in. Elements of the status quo deserve praise, too, though.

  97. Nice one, Tex.

    I have a small suggestion for anyone out there who has deformed notions about the greatness of Communism, or who perhaps thinks that ‘the people’ in Communist countries are better than those in the decadent West…

    Come and pay me a visit. At my current home, in China. I promise to show you more than you could possibly believe, and there’s not a shred of doubt in my mind that you’ll get back home and head straight for the gun store.

    Alternatively, instead of visiting me, keep acting like fucktards, continue weakening your respective nations, and simply wait for a few years. Because the Chinese have a strong desire to visit you, and bestow upon you their wonderful system of governance. Believe it.

    You might love the Communists, but they don’t love you.

    Oh, and Tex, keep up the good work.

  98. I don’t and would never support a transformation to libertarianism overnight. But I think its the right direction to head in. Elements of the status quo deserve praise, too, though.

    Very few would tolerate it, and only some of us. Fortunately our rise to government is likely to be done over a matter of years so we have a chance to prepare the people for full on liberty as our influence steadily increases from election to election.

  99. I do think fraud and dishonesty are wrong and criminal.
    I also think coercion is wrong and criminal.

    I do not think crafty advertising is any of the above. It’s definitely not coercion as you stated.

    It’s not in the best interest of a company to sell you dog meat. Companies regulate themselves by having quality control in terms of physical testing and documentation. I’ve worked at a pharmaceutical company. You probably have no idea how seriously companies take quality control.
    It’s in their interest to make sure you’re happy. It’s in their interest for the product to work. It’s criminal for them to lie to you.

    You said: “Government regulation – where it prevents murder and theft is a good thing”.
    This is a, “the ends justify the means” argument.
    Theft and murder are always wrong and should be prosecuted. The only legislation needed is that theft and murder should be illegal. Government regulation is often theft in itself. I think it’s wrong to attempt to prevent theft with theft regardless of the extent of the respective thefts.

    Regulation is implemented on the grounds it provides preventative protection. However I argue against it on the grounds that it is rights violation in itself, it often doesn’t work and it makes everyone suffer.
    Why is government wronging OK? Why should everyone suffer due to a few bad apples? Does regulation even work?

    You say that regulation can stop McDonalds poisoning you. McDonalds are highly unlikely to poison you as you yourself point out. But accidents can happen regulation or no regulation. Regulation doesn’t stop accidents or even evil minded people.

    Ribena were if I remember correctly found guilty in New Zealand of false advertising.
    Basically, Ribena’s defence was that a blackcurrent has 4X the vit C than an orange (on a weight for weight basis) and this was what they claimed to have meant. But according to the ruling, the ad implied that Ribena itself had 4X the vit C than orange juice which is not true.
    I’m not really sure if Ribena were treated harshly, that’s for legal professionals to debate the wording and context of the advertisment.

    Here’s another example. In Sth Australia, about 10 years ago a smallgoods company “Garibaldi” poisoned a couple of kids with salmonella and one died (an infant). This happened under a regulatory system.
    Garibaldi quickly went out of business and people to this day still remember the incident. I believe Garibaldi would have gone out of business and still be remembered regulation or no regulation.
    This is a much more powerful force than regulation ever will be, and it doesn’t violate anyone’s rights.

  100. Let’s take a specific case.

    I live in a remote area of the Pacific Northwest in the USA. My county has three major towns the largest of which has 28,000 people, the county as a whole is about 120,000. (It’s about 150 miles from the north to the south border.) Perhaps this is not so different than some regions of Australia.

    We have one airport where you can catch one of several daily flights to San Francisco as well as one to LA and I think one or two to Portland, Oregon. Drive time to what most of us would call a city is four hours.

    Many people, like myself, moved here because of the freedom and individualism that’s prevalent. You can enjoy the raw outdoors, the redwood forests, the Pacific coast, and the small town atmosphere. There is little pressure to “conform” to one or another particular way of life.

    One of the distrubing things I noticed recently, however, was the control the supermarkets have. They are all national or multi-national in scope. A recent “remodeling” of stores resulted in far less local fair being offered which, to me, seemed quite odd, since the local fair was excellent: fresh crab, line caught tuna, salmon, etc. Now, to get those things, I have to ferret out the local dealers, and they in turn are wondering why the local establishments aren’t willing to deal with them.

    It’s a power play. It’s economic coercion of the worst sort. What the national and multi-national brands are saying is “we have a cookie cutter concept of a grocery store which your local stuff doesn’t fit.” Thing is, it used to. The local supermarkets used to trade with local fishermen. Suddenly they don’t. So the local fishermen are now on their own to find a market, but the market is now dominated by the national and multi-national brands who buy globaly.

    Does all this mean that the local fishing effort is just inefficient in the global market and should be shut down? Do the locals prefer frozen fish over easily obtained line caught tuna and salmon? Hell, no. This is all about big business domination of the chain of distribution.

  101. “If I lie to you to obtain your money, it is theft. If I lie to have sex with you, it is rape.”

    I am sorry, WHAT?!?

    So, according to you, If i go to a bar and meet a girl, tell her I am a millionaire (even though i am not), go to a hotel and sleep with her, then this is rape?

    I am sorry but your logic mate…….

    Also, Anybody who cant tell the difference between a piece of beef and dogfood deserves whatever they get. Your arguments just dont stand up to any reasonable questioning I’m sorry. No company would do this because, 1. If anybody found out they were doing it they would never sell another burger, ever! And 2. The sickness lawsuits alone would be enough to put even Mcdonalds out of business. 3. In a free market without regulation, there would be far more competition, and as such the companys would be looking to give you the absolute best product for the lowest price, it is in their best interest to get the best ingredients and sell them to you at the lowest price possible.

  102. The stores are just exercising their freedom of association. There is no coercion. What do you have against that? They are not obligated to open their floor for any producer who demands it.

    If everyone likes the local product, they will buy it anyway. Local fresh seafood and crop markets exist throughout the world.

    What’s the problem? Both parties go their divergent merry ways.

  103. Shem;
    In terms of advertising- look at Ribena- they lied- they claimed that the vitamin C in their product was much higher than it was. People bought it on those grounds. If I lie to you to obtain your money, it is theft. If I lie to have sex with you, it is rape.

    I am not sure where you get your definition of rape from.

    If she goes to the police and says, “he forced me” they will charge you with rape.

    If she goes to the police and says, “He told me he was an airline pilot”, they will call her a silly bitch.

    Ribena is a good example of how not to do things, from being a respected company and a household name, their reputation is in tatters. I imagine this has had a serious effect on their bottom line, and their product will not only be devoid of its ‘the one to buy’ status, but will be shunned by some of those who feel they have been deceived.

    This is a good example of the way to deal with false advertising, and was not discovered by any government regulatory agency, but was the result of a students experiment.

    The objective of big business is profit- if a business could make a profit by poisoning people and it was legal to do so, it would.

    I don’t think so. In the unlikely event that they could make a profit by doing so, and it was legal to do so, the compliance of some regulatory agency would be needed.

  104. ‘Does all this mean that the local fishing effort is just inefficient in the global market and should be shut down?’

    No, because you’re going to risk your capital to supply the service which you believe is so under-supplied… aren’t you?

    Those busineeses are entirely subject to consumer sovereignty and you know it, which is why you’re not willing to risk your capital supplying the demand which you claim is there.

    You are displaying the typical socialist moral confusion over the difference between violence and non-violence.

    The mere fact that you want something that belongs to someone else, on terms on which they are not willing to let you have it, doesn’t mean you’re being coerced. According to that twisted logic, if I want to have sex with a woman, and she denies me, I’m being ‘coerced’.

    It’s like you are obstinately and wilfuly in the wrong.

    Shem said:
    ‘Libertarian socialism, as I see it, has two sides- the objective ie “a society where people freely enter into equal distribution of wealth without coercion from government or any other forces” and the process “smaller, more efficient government”.’

    The ‘without coercion from government or other forces’ bit I have no problem with. And of course if people want to freely enter into equal distribution of wealth, that’s fine by me. However it is an axiom of the Austrian school of economics that what drives human action is a desire on the part of ‘acting man’ to exchange a less preferred state for a more preferred state.

    It seems to me that what we should be valuing is each person being satisfied in getting what they want, rather than equality per se. If you and I enter into an equal partnership, and you want an ice-cream, and I want an apple, the value of equality would seemingly indicate that you should have half an ice-cream and half an apple, and I should have the equal of you.

    Balmy as this sounds, that is exactly what people do both in personal relationships and in politics in following the doctrine of equality to its logical conclusion.

  105. Trinifar, the supermarkets have no evil plan to put the local producers out of business, they simply believe that they can can get a better return on their owner’s capital by using nationally negotiated suppliers, achieving economies in scale. If there is a market for local produce, then someone will provide an outlet for it. Even London, where I currently reside, has farmers markets selling fresh local produce, and this is a city of 8 million people with hundreds of supermarkets.

    Your argument is basically that you want to deny a farmer or fisherman in Southern California or Nova Scotia or New England or wherever access to your market. What is the difference between a worker in any of these places and a local worker in the Pacific North West? Are they each equal before the law? Why do you want to punish non-local farmers and fishermen in favour of local ones? What have they done to you? This is the essence of any argument against free trade, be it domestic or international. You want to punish some people because they aren’t local to you in favour of your immediate neighbour. Socialism may claim to be internationalist, but in its anti-free trade rants, food miles, anti-GM etcetera etcetera, socialist movements are the workers worst enemies.

    You can take your local protectionism and stuff it up your xenophobic posterior.

  106. So, according to you, If i go to a bar and meet a girl, tell her I am a millionaire (even though i am not), go to a hotel and sleep with her, then this is rape?

    I am sorry but your logic mate…….

    What if I go to a bar and meet a girl, tell her I don’t have AIDS (even though I do), go to a hostel and sleep with her, then this is wrong?

    But…but…..but…….she acted voluntarily..!!!!!????

    Sorry Perry, but in a moral society it is wrong to intentionally misrepresent yourself. Furthermore, Jim is right. If you pose as a millionaire to get action (…..and what decent man wouldn’t turn a blind eye if his mate did that!!), you have acted dishonourably but no policeperson is ever going to arrest you. So don’t fret too much when you’re eying off that little blonde German piece across the backpackers bar, you odious cad!!

  107. Mick,

    Purposefully exposing someone to a known disease without their consent is assault, a form of coercion.

    Misrepresenting yourself for personal gain is dishonest, but is not coercion.

    A free society would punish assault through legal sanction and dishonesty through freedom of association.

  108. As Mick’s situation demonstrates I think you’re the one with the fault logic Perry, “mate”.

    There are situations where people are convicted of non-aggressive rape. Think date-rape. Or the case where a woman was tricked into using her vagina to apply a medicine to the penis of her “friend”- yeah, she was stupid and naive, but nonetheless he lied and had sex with her against her will.

    If I decide to trade my ice-cream for an apple and the apple I thought was shiny has a worm in the middle then it is not a fair trade.

    Big businesses aren’t machines- they are run by people. And when people have power there is the chance that they will abuse it. Ribena may not be profiting as much anymore, but that probably just means the shareholders lose out, I bet the CEOs didn’t take a paycut over it.

  109. f I decide to trade my ice-cream for an apple and the apple I thought was shiny has a worm in the middle then it is not a fair trade.

    On this one I’d actually say that you accept the risk that the apple may not be perfect (especially if you had a chance to inspect it). That’s unless your trading partner agrees to warrant the apple as good as part of the deal.

    Of course, if they guy is trading you apples that he knows are bad, then that’s a different matter and he’s guilty of defrauding you.

  110. Mick,

    First off, if I didn’t ask for proof of your wealth and its source, I would be pretty stupid to enter into such a contract, considering that any blow back from the deception would fall more heavily on my company’s reputation and brand strength. Individuals who believe the advestising also have a responsibility of protecting themselves from deception and thus should act to verify my outrageous claims of your status.

    Second, if it was a genuine case of deception in which I had reasonable reason to believe you were telling the truth, then I would still have to wear the loss of my own reputation, but I could at the least pursue you for a refund for failure to meet your end of the contract, assuming you hadn’t skipped the country in your mythical Lear jet.

    The second result would be very unfortunate for me, but I can’t own my reputation, especially if act stupidly by entering into a contract with a charlatan. After all, I am putting my reputation on the line by advertising my product and it is up to me to protect it as best I can by ensuring that I am as truthful as can reasonably be expected.

    Outside of punishing all dishonesty with imprisonment, how do you propose to make honesty mandatory? What cost the regulation required to ensure that everyone’s claims have veracity? What chance that such measures are even remotely possible to achieve. Better to have a society under which there is legal punishment for breach of contract and freedom of association to shun dishonest individuals and traders.

  111. Shem, you are forgetting that someone’s ability to enter into a consentual act is taken into consideration. That is why we have the concept of statuatory rape for sex between adults and minors, even if consent is given. The law states that minors are unable to give consent, and thus it is assault.

    Someone with a mental disability would likely be considered by the court unable to consent to sex, especially with someone who is either a stranger or has an authoritive role. Sex between similarly disadvantaged individuals may well be considered consentual, although it would make sense for their guardians or carers to inform them to the best of their ability about disease and birth control, and be mindful of their wellbeing.

    Date rape is not tricking someone into having sex. Date rape is a person known to the victim socially forcing themselves onto the victim sexually. It is simply rape. The fact that the victim knows the rapist does not mean anything from a legal point of view. A drunken adult female that consents to sex has not been raped. A drunken female that passes out and is assaulted has been raped.

    On your apple and ice cream trade. If I knowingly trade you a bad apple, then I am guilty of a breach of contract, and thus you would have claim of refund against me. Even if it is unknowingly, I am still guilty through no fault of my own, and it would be best for me to make good with a refund lest you tell all your mates that I am a charlaton.

    If my supplier of apples consistently supplies me with fouled fruit, and I do nothing about it, then I am stupid and probably shouldn’t be trading apples in the first place.

  112. First off, if I didn’t ask for proof of your wealth and its source, I would be pretty stupid to enter into such a contract,

    What if you did ask for proof and I provided you plenty of (fake) proof suct that you felt pretty confident?

    but I could at the least pursue you for a refund for failure to meet your end of the contract,

    And this is the whole point. Your ability to do this (at least in theory) is a sign of a legal system that is just (at least on principle).

    My point with your previoius example is that if the young lady agrees to have sex with you on the basis that you’re a millionaire (after consulting you on this topic) and you lied about being one then you are guilty of violating contract (and it sounds like that’s not the only thing you’ve violated on that particular night!).

    Of course this could never hold up because it could never be proven that this was part of a contact on which she was going to have sex with you. You could say I told her I was a millionaire for a bit of fun, but I never had any intention of doing any business with her (i.e. forming any sort of contract with her – so the principle of non-initiation of violence and coercion still applies). She then made a separate decision to have sex with me.

  113. For clarity I should add that the reason why the AIDS case still does form breach of contract is

    1. She can prove that she got AIDS by blood test and quite possibly prove beyond reasonable doubt that she was exposed to no other sources than you;

    2. Anyone can safely assume that had she known that you had AIDS she would not have had sex with you i.e. she would not voluntarily enter into a contract that would result in the end of life through disease; and

    3. In any contract that she entered into she would certainly have expected you to tell her that she had AIDS if you had of known about it and the threat it posed to her. i.e. the contract would be entered into ‘in good faith’.

  114. Mick,

    Since no contract was entered into, all you are guilty of is breach of trust. The girl may feel ashamed at being duped, but she should be more careful about her sexual relationships, but she has not been assaulted. She is certainly free to spur any future advances from said cad, and may well use her freedom of speech to publicise his dishonesty without resorting to filing false rape charges.

  115. So if I enter into a contract with you to advertise your product as a self-made millionaire (and you take me on my word without checking out my credentials), but really I’m not one, then this isn’t a breach of contract? It’s a breach of trust?

  116. Mick, I’ve already stated that knowingly exposing someone to a sexual disease is assault, even if the sex itself was consentual. Such a case would not be tried as sexual assault, but common assault, just as if someone with a fatal air born communicable disease deliberately breathed all over you in your sleep in order to kill you, or injected you with a vial of their contaminated blood. The assault is the exposure to disease, not the delivery method (although stabbing someone with a needle would be assault, even if it was just a needle, the disease factor would make the crime more serious).

  117. Mick, if you tell me you’re a millionaire (or a qualified doctor) and that is the basis of your employment, and you have lied, you are guilty of a breach of contract. My loss of reputation because I failed to check your qualifications or was genuinely deceived is unfortunate, but is still preferable to me not being able to make a contract with who I like for what ever reason, without regulation for my own good.

    If a person claimed to be a millionaire and promised $1,000,000 for sex, and then couldn’t pay, that would be a breach of contract (although our current prostitution laws would make such a contract unenforcable).

    Trading sex for the kudos in associating with someone who claims to be a millionaire is not a contractual relationship. Say you have shares that are worth $1,000,000 and you claim to be a millionaire on that basis. Say in between seducing someone with your massive wealth and the actual sex act, there is a stock market crash and you are now penniless, has fraud occured? You are no longer a millionaire, but she has slept with you on the belief that you are and her reputation has been harmed by sleeping with a broke stockmarket investor.

    You can’t withdraw consent post coitally, just like a boxer who gets beaten up in the ring can’t charge his co-pugilist with assault because he lost, was injured and the promoter didn’t pay up.

  118. Mick and Shem, You guys are talking about something completely different to rape as Brendan has pointed out.

    Using your logic, If i sleep with a girl who tells me that she has 34 D’s, when she actually has 28 C’s, Then she has raped me!!! The horror!!!

  119. And if we’re going to talk about AIDS here, why not go “all the way” (ha ha ha) and talk about the clap and the thousands of other STIs that can be spread without one person knowing? Maybe there should be a separate law about knowingly spreading disease (particularly HIV due to the nature of it), but it doesn’t make anyone a rapist.

  120. Shem, you have two different points mixed up.

    Conduct that is ‘misleadiing or deceptive, or likely to mislead or deceive’ is already illegal both in federal and state law, and that is as it should be. However it only applies ‘in trade or commerce’, it doesn’t apply to politics, so politicians can and do routinely engage in misleading or deceptive conduct. Fraud is illegal under capitalism, so its existence is no more an argument against capitalism than it is against government intervention.

    With capitalism you get to decide on every single transaction you enter into. With democracy, you get one vote, once every three years, on a bundled-up package, with no way to distinguish the parts you want from the parts you don’t want, and no legal way to withhold either your vote or payment, whether or not you want or get the service! Freedom is far more representative of what people want than government.

    It is not an argument for governmental intervention that there is a mere imperfection in the market’s way of doing things, since the government’s intervention may be more imperfect. That’s the whole point. There cannot be a blanket assumption in favour of governmental action, otherwise there’d be no need for human freedom. We could just abolish it and give total power to government, and hey presto: perfect society. But both theory and practice have shown that government is more likely to cost more for a given benefit, to produce unintended consequences, to abuse power, and to favour vested interests than an open and competitive society based on the principle of liberty.

    There is no business in poisoning your customers. Businesses who do it will tend to cease to exist. But if a governmental regulatory body fails to perform its basic intended function, often it will get bigger. See for example how, following an epidemic of gross neglect in the state’s hospital system, people are calling for more funding. But private hospitals weren’t putting pregnant mothers in their toilets, and neglected old people in their broom closets were they?

    The point about equality is that it is the satisfaction of human wants that should be important, not equality per se. In the example you get half of what you want, and your partner half of what he wants, because equality as a value has been promoted above satisfaction of human wants.

  121. Since no contract was entered into, all you are guilty of is breach of trust. The girl may feel ashamed at being duped, but she should be more careful about her sexual relationships, but she has not been assaulted.

    Maybe picking up in a bar isn’t the best example to use in this case because, as I said previously, it can be considered as a contract i.e. ‘I’m looking to have sex with a millionaire, are you one?’ or not a contract i.e. ‘I spun her some stupid comments for fun not really wanting anything to do with her, and later on she turned up again and offered sex’.

    My point is stil the same as I stated in the beginning: misrepresenting yourself in your dealings with other people is immoral in civil society and, therefore, it’s perfectly fine to have laws against it and put people in jail if they do it.

    The reason why this is the case is simple and obvious: every single person you enter into any form of contract with is expecting you to be honest with them as an implicit part of that contract. It may not be explicitly stated as Clause 1.4.2 in black and white, but any reasonable person can reason out the fact that when any party enters into a contract he is expecting the other party to be honest, to disclose anything that will affect the contract that they would want to know about, and that the other party is acting with honest intentons to fulfill their contractual obligations. Saying these things are not the case is like using the excuse that when you signed the contract you had no intention of abiding by the rest of the writing on the paper, and that you only wanted to see if your pen would write.

    So my point with the bar pick-up example is that if she ‘are you a millionaire I’m looking to have sex with one’ and you said ‘yes’ and gave her some good loving in the carpark then you have violated contract. Similary Perry, if you say to a young lady ‘are they 32D’s I’d really like to rub some 32D’s tongiht’ and she says ‘yes’ but they’re really 28C’s then she has violated contract.

    Of course, non of these examples are really useful in the real world as they couldn’t be proven, and in those circumstances neither party really cares if they are lied to anyway.

    I find a lot of libetarians argue the case of Justin and Perry, and this concerns me. It may be my conservative streak why I defend this so adamantly and vigorously but:

    1. My position is logically correct: when people enter into contracts they implicitly expect the other party to behave honestly and in ‘good faith’ as part of the deal. If they knew the other person was behaving dishonestly they wouldn’t enter into the contract; and

    2. This is such an essential part of civil society. Can you imagine what a repulsive and degenerate society we would have if it was the norm to misrepresent yourself in your dealings with others, even if could potentially hurt the other party. It’s certainly not a society I’d be willing to defend or support. Imagine a charity collecting money, promising one thing when you give but really doing another. Things like the whole basis of the procurement of specialist services would be undermined. This is a key benefit of, and reason we participate in, society. Specialisation is one of the key contributors to wealth generation. By definition, procurement of ‘experts’ means you are procuring something you can’t understand yourself, therefore you can’t make an assessment of whether they are able to do the job. You only can expect them to enter the contract in good faith and honour their part of the deal.

    Stuff like this is why we spend hours defending open, civil society. Yet we have some libertarians who think this is not important or to be valued. Sometimes this is why I try to differentiate myself from the ‘purist’ movement (which it isn’t, because my argument is more logically consistent).

  122. Mick,

    You’re working very hard to try and paint my position as one that doesn’t value honesty in everyday dealings by claiming that there should be law against misrepresenting yourself. I disagree that there need be a law simply on the basis that in a civil society, in the long run, good behaviour begets good behaviour, there is self-evident value in acting honestly. You seem to think that we need the state to enforce honesty, down to the level of interpersonal relationships, I argue that this would represent an unnecessary intrusion into civil society with little benefit and great cost. If you disagree, say so.

    When you enter into a clear contract, verbal or more formal, honest dealings are already enforceable by law. When there is no explicit contract, such as a girl gaining good feelings about her self-esteem by sleeping with a millionaire, then dishonesty is not nice, but neither is it the business of the police or the courts.

    The degenerate society of elaborate dishonesty is what you get ever weekend in the pubs and clubs across Australia as singles and not so singles battle it out to seduce each other. I’m sorry you are not thinking logically on this issue.

  123. By definition, procurement of ‘experts’ means you are procuring something you can’t understand yourself, therefore you can’t make an assessment of whether they are able to do the job.

    This right here is the point of minimal regulation, I believe. As I have repeatedly said, I do not believe regulation or approval HAS to come from the government, but like welfare and law enforcement the government has a role to play until society is weaned off it.

    But regulation gives an assurance- through the assessment of other experts that the experts we rely on DO know how to do the job right.

    Regardless of examples of personal morality, those examples were originally used to illustrate a point about what is necessary to protect under law in “free” society. And I think the law is even more relevant when you are talking about huge multi-nationals. I mean, if you are defrauded by McDonalds who do you blame? I mean, you can’t throw McDonalds itself behind bars, it’s a non-entity. And the company in question is already bankrupt there’s no way justice can be served.

    As for You seem to think that we need the state to enforce honesty, down to the level of interpersonal relationships, I argue that this would represent an unnecessary intrusion into civil society with little benefit and great cost.

    Some people would argue that prisons, even for murderers offer little benefit to society and at a great cost (very few murderers re-offend). But while social pressure is a great theoretical substitute for law there is definitely a need for law and regulation until society is weaned off government intervention.

  124. Justin writes:

    There is no business in poisoning your customers.

    Ah, but sadly there is.

    You may have heard of the recent meat recall in the USA due to E. coli — the second largest such recall in US history. The E. coli tainted meat was traced to a Topps Meat factory, and the company and government inspectors were able to identify three batches of meat products were contaminated.

    Businesses who do it will tend to cease to exist.

    Topps is now out of business — but only after the damage was done and little solace to the people who suffered from E. coli. So, yeah, business screws up, business fails. But how long before the event is repeated again? Somewhere there’s another company that’s going to try to short-change safety in the interest of quick profit, and in the US that’s easily done. In this case the regulating body is the US Department of Agriculture which, to every free marketers delight, only makes suggestions about how meat is to be tested. Each company is free to do what it wants.

    Turns out, Topps was the biggest such meat product company in the USA. “The NYT tells the story”:http://www.nytimes.com/2007/10/23/business/23meat.html?pagewanted=all.

    The Topps case is the most serious of 16 recalls this year involving E. coli contamination of beef. That is a sharp increase from 2005 and 2006, and the resurgence of the pathogen raises questions about whether the Agriculture Department has given the meat industry too much leeway to police itself.

    After Strategic Investments & Holdings, a diversified private equity firm, bought Topps in 2003, it brought in outside managers, invested $2.5 million in new machines and began ramping up production, ex-workers said in interviews.

    Agriculture Department investigators found that “something had changed,” Dr. Raymond said. “A lot of the policies they had had in place were not being followed.”

    In the case of Topps, the government has determined that the company reduced its testing of ground beef and neglected other safety measures in the months before the recall.

    Consumer groups and other critics say it is startling that the agency does not have a better handle on the problems, which they see as emblematic of a cozy relationship between the Agriculture Department and the meat industry.

    Federal investigators found that three different lots of hamburger meat were tainted with E. coli. Moreover, they said, the company’s record keeping was so poor they could not rule out contamination of other lots.
    Batches that had been tested by suppliers were mixed with those that were not, officials said. Untested boxes from the freezer were tossed in with the daily grind, as were untested scraps from the plant’s steak line.
    To be safe, the regulators finally urged the company to recall a full year’s worth of production, or 21.7 million pounds.

    But if a governmental regulatory body fails to perform its basic intended function, often it will get bigger.

    Maybe it needs to get bigger to perform it’s intended function. Do we really have to get sick and possibly die in order to let the free market excel?

  125. I agree with Brendan here, And im glad that mick finds that alot of libertarians dont agree with him on this issue. These kinds of laws will lead to a steep and slippery slope. Regulating peoples personal inter-relationships? That is disgusting!

    I can agree with you on the point of, If i give money to a company and expect them to do X with it but they do Y. However that is a completely different situation. That is more of a proper legal contract enforced by law.

    I just couldnt think of something more totalitarian than regulating peoples casual dealings in that way.

  126. You’re working very hard to try and paint my position as one that doesn’t value honesty in everyday dealings. I disagree that there need be a law simply on the basis that in civil society, in the long run, good behaviour begets good behaviour, there is self evident value in acting honestly. You seem to mean that we need the state to enforce honesty, down to the level of interpersonal relationships, I argue that this would represent an unnecessary intrusion into civil society with little benefit and great cost. If you disagree, so say.

    This is not really my original argument. My argument was that in true civil society there is very little provision to morally misrepresent yourself i.e. the bar pick up example. You have some moral provision to misrepresent yourself in situations where others might reasonably expect you to misrepresent yourself. You have some level under the freedom of speech area. You have some under voluntary association if you choose not to associate. But for by far the most part, if you lie in your dealings with other people, and that tends to be where most people lie, then you are being immoral and there is no reason the laws of a civil society should not reflect this.

    Do I believe this needs to be enforced down to the level of personal relationships by the government? I don’t believe anything needs to be enforced at all by the government. As you correctly point out, civil society has inherent value (i.e. good behaviour begets good behaviour), and this would result in civil society coming about without government. The members of a civil society sometimes use government as a more efficient way of bringing this situation about (and, fellow citizens, this is the only moral use of government).

    Should we have government enforcement down to this level? I don’t believe that we should have the ‘pick-up police’ patrolling bars to see if people are saying they’re millionaires when they are not (for a lot of reasons: people expect to be lied to in bars, the cost benefit ratio doesn’t add up, it would be impossible to prove an injustice in most circumstances etc). But I do believe that people who misrepresent themselves in their dealings with others are acting immorally and to the detriment of civil society and people who care about civil society should see them brought to justice.

    What I find is some libertarians tend to push ideas like freedom of speech to the point of saying it’s OK to actively lie. This is not the inherent right of freedom of speech guaranteed by civil society. If you choose to associate with someone you can pretty safely assume that they expect you to be honest with them and they see this as part of the contract of association, except in some highly unusual circumstances. Violate this contract and you violate the contract of civil society. If you can’t honour the contract don’t enter into it i.e. don’t associate with that person. Or expect to face the consequences.

  127. What I find is some libertarians tend to push ideas like freedom of speech to the point of saying it’s OK to actively lie. This is not the inherent right of freedom of speech guaranteed by civil society. If you choose to associate with someone you can pretty safely assume that they expect you to be honest with them and they see this as part of the contract of association, except in some highly unusual circumstances. Violate this contract and you violate the contract of civil society. If you can’t honour the contract don’t enter into it i.e. don’t associate with that person. Or expect to face the consequences.

    My take is that a lot of libertarians also seem to think that the free market is enough to punish big businesses that lie about their products. I think in situations where people are hurt by a business lying then there has to be a law to punish them beyond the free market.

    Even for small businesses, though, I am supportive of regulation in, for example, the food and beverage industry. I’m GLAD that health inspectors exist and there are fines for businesses that don’t comply. I don’t want some stinky old fart out the back of the pizza shop scratching his balls then making my pizza with the same hand. It might never make me sick and no-one might ever know, but if there’s a threat of a fine the owner will ensure he keeps in line and doesn’t scratch his balls around my food.

  128. Hi Trinifar,

    Some could argue that the fact that the FDA exists lulls people into a false sense of security about the safety of the meat.

    If there was no FDA people could a) Stick to a company with a proven track record for meat safety. b) Look to a third party to check meat for safety. If meat safety is important to people then there is a market for it.

    No one from the FDA gets canned when tainted meat hits the markets but the loss of revenue from tainted meat being approved by a third party company would be a huge incentive for them to get it right.

  129. That’s not true Shem. All libertarians I have met think fraud is a crime.

    The market place punishes inferior products and incompetence (neither of which have much to do with dishonesty).

    Why are you so sure regulation will stop fraud? Why do you think regulation is needed as well as laws criminalising fraud?

    Also, Ben is right about the false sense of security provided by government agencies such as the FDA.
    Private groups should approve products, similar to the way we have foods with the heart foundation tick of approval, or australian made kangaroo symbol.

  130. I think of lieing as a victimless crime. If somebody lies in business then they will be punished, and those laws are already in place! If i lie to somebody about my Ferrari back home, then who is hurt? The only consequence of this event is my being made to look like a dickhead if the person im lieing to finds out that i am infact not telling the truth.

    And Shem, as there are already fines for doing such things, the most that you can hope for is deviant behaviour. That if the man is dirty enough to do that in the first place then he will check to see if anybody is looking and then scratch away.

    And as the ideas about perpetrators of lies being brought to justice, i cant wait to see the moral crusaders marching around punishing people for lieing!!!! And by god! If they lie! We will be there to set them straight! We know that he did not actually sleep with that mans mother! And we will seek to right this wrong!

    Isnt it enough to just say that, “People shouldnt lie, It is dishonest”.
    Do we really have to get to the stage, If you lie, You will be punished, beware!!!!!

  131. I’m talking about companies lying. Or fraud. Etc.

    “And Shem, as there are already fines for doing such things, the most that you can hope for is deviant behaviour.”

    The fines are in place and act as a deterrent. It’s a form of regulation and I’d hate to see that regulation not exist.

    Fundamentalists say all regulation is bad. But some is good. Some laws are good. Some welfare is good. Some government involvement is good.

    Sweden is one of the best countries in the world. Australia is too. Japan is up there as well. All three countries have quite statist governments in different ways. America, despite being the pinnacle of capitalism has a lower living standard. There are things worse than a statist government. Corrupt, dishonest businesses are worse than an honest well-intentioned government.

    To say that people will stop buying a product that has a bad reputation is like saying people will vote for the LDP because it has better policies. The people with power- in big businesses and in government- don’t want to sacrifice their power. The government does help big business, but I’m sure in the absence of government big businesses would help each other keep control and stay in power.

  132. Michael,

    Free speech is inviolable, I may say or write with my property what I wish, and you may do the same. I have no contract with you to be either truthful or honest. The benefit to me of being truthful and honest is a learned process, both through experience and through instruction from those around us.

    It is your right to actively lie, so long as that lie is not a breach of contract, either verbal or formal agreement. This is why defamation and libel suits are so unpalatable to the concept of free speech. You cannot own what people think about you, and so you have suffered no contractual loss if they think worse of you from some falsehood.

    Please, don’t mess with free speech by putting caveats on it. For one thing, if truthfulness was a prerequisite for free speech, freedom of religion would be stopped in its tracks (not to mention philosophy, politics and literature).

  133. Shem, It is unfair to call America the pinnacle of Capitalism.

    Hong Kong maybe. America…. Hillary…. Nahhh.

  134. Shem,

    There is a cost of regulation that is unseen. Regulation can give customers a false sense of security such that they suspend their natural defence against shoddy traders merely because they meet some state regulations. The greasy spoon cafe may get inspected twice a year and be tipped off by a friend or relative, or god forbid actual money change hands between proprietor and inspector to buy compliance. Health regulations do not prevent sporadic food poisonings, good business practice does this. Regulation is a race to the bottom and presents a barrier to entry for new starters which interfere with the market process of creative destruction. Often the costs of meeting health regulations for new restaurants is high, and this prevents or deters them from entering the market to compete with the dingy greasy spoon. Therefore, despite the fact that the greasy spoon is barely hygenic (and only during inspections), it has an unfair advantage over a potential competitor simply through being there first.

    Paradoxicxally, health regulations can protect the restaurant that practices unhygenic food preparation by detering competition. You ball scratching pizza chef is hiding behind a good bit of rent seeking!

  135. Shem,

    Rent seeking abounds in the US which is the big problem with Statism in business. That’s a bad example for mine. Capitol hill lobbying is massive and that’s purely based on the pure power of the state in the US.

    Sweden stays afloat because they’re all Swedish there. Have you met them? Far too nice to be trusted if you ask me. The socialist haven stays afloat because Swedes are far too nice to exploit it too much.

    To say that people will stop buying a product that has a bad reputation is like saying people will vote for the LDP because it has better policies.

    Let’s put it a different way: If people aren’t told what is OK to buy by regulation they won’t be given a false sense of security about what is good. If they still choose to buy poor quality product then that is their choice/fault. Caveat emptor.

    The people with power- in big businesses and in government- don’t want to sacrifice their power.

    Persuasive power is a different beast to coercive power. Once again buyer beware.

    The government does help big business, but I’m sure in the absence of government big businesses would help each other keep control and stay in power.

    Let’s look at a current example: Visy and Amcor reached an agreement on prices for Cardboard boxes. A clear cut case of two companies helping each other out to stay in control as you put it. Yet if the prices are inflated what is to stop me from buying my boxes cheaper from someone else? Or if they truly are the only game in town then to get into the box making business!

    If I can show an investor that I can make a profit then why wouldn’t they invest in my box company? Investors like making money. Or alternatively I can do nothing and keep paying inflated prices until someone who wants to make some money gets in there. The alternative is a pushy bureaucracy.

    It’s my choice and it’s really nobodies business but mine what I decide to buy and whether or not it’s “fair” for me.

  136. Pre-emptive regulation is wrong, costly and often ineffective.

    A law against fraud is not the same thing as regulation.

    Imagine if people were constantly having to fill out forms and get regular audits (tax payer funded of course) from government agencies to make sure they weren’t comitting non-corporate type criminal offences. That would be ridiculous. When someone commits a criminal offence eg/ theft we prosecute them only. We don’t make every person suffer by getting continually checked up on in case they may commit a theft one day.

    If someone poisons you, they have committed a criminal offence whether they are a person, business, charity or government. It’s all the same. In addition, any person, business, or whatever that wants to poison you will do so no matter how many regulations there are. Criminals don’t obey rules.

  137. Brendan, I agree with (what I think) you are saying, and this has been my position from the beginning. I agree you are free to say what you like, including lie, so long as there is no contract between us. You are fee to offer unsolicited advice and I am free to reject it. Basically what is happening here is that I am invoking my rights under freedom of association, by rejecting any association with you.

    If you are by yourself then lying has no meaning. If there is no association between us then lying doesn’t really have any meaning either, because what you are saying is being disregarded.

    However the moment we enter into any sort of a contract then, at least from my end, an implicit part of that contract is your moral behaviour, which includes not lying.

    The original point is that picking up someone in a bar is still forming a contract. Lying in that context is immoral and can have negative consequenes for the party who is still acting in good faith. I would argue that it would not be unreasonable if some of those circumstances were punishable by law (and some of them are). Basically, after an agreement has been met in which you have lied, and your lies have resulted in someone doing something that they wouldn’t have done voluntarily if they had of known the truth on that issue, then you are guilty of being immoral, and most likely should be guilty of committing a crime.

  138. Mick, your definition of a contract and mine are clearly not the same. Selling someone an apple involves a contract, picking someone up in a bar is not.

    Meriam-Webster dictionary

    Contract: an agreement between two or more parties that creates in each party a duty to do or not do something and a right to performance of the other’s duty or a remedy for the breach of the other’s duty

    I guess you are saying that in any social situation there is an unspoken assumption of honesty, and I’d agree. But if it is unspoken (implicit), how do both parties know that the other agrees? If there is no explicit agreement and no reciprocal duty (trade), there is no contract, and thus no breach of contract possible.

    Freedom of association as we both agree is the solution to this, but talking of “social contracts” confuses discussions of real contracts and plays into the hands of statists who would regulate all aspects of our lives if we let them, including who we may or may not relate with.

  139. Tim R: Pre-emptive regulation is wrong, costly and often ineffective.

    This is the point at which pure free-market libertarianism becomes ridiculous. The food industry is ripe with examples of individuals and companies making a quick buck by skirting safety practices. Your position is that those people will be punished in the market place or by the courts after the damage is done. Well, sure, we all agree that should happen. Offenders should be punished — if they are caught.

    “Pre-emptive regulation” acknowledges the obvious fact that there are people who don’t care about the health and welfare of others when it comes to making a profit. The only way to protect the achievements of good businesses in these areas is to regulate them — which is why there is so little opposition from the owners themselves to regulation. They want regulation. Their interest lies in there being a level playing field in which every participant must bare the cost of producing a verifably safe product.

  140. Trinifar,

    You haven’t answered me on why market based food safety tests wouldn’t be more efficient and safer.

  141. You haven’t proven anything. You’ve just asserted it is a ridiculous position and mentioned people breaking both regulation and common law torts.

    You haven’t proven why regulation is better.

    “Their interest lies in there being a level playing field in which every participant must bare the cost of producing a verifably safe product.”

    No. You have been totally conned.

    http://en.wikipedia.org/wiki/Regulatory_capture

    Remmeber what Adam Smith said:

    “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any law which either could be executed, or would be consistent with liberty and justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less to render them necessary.”

  142. Trinifar, I am disputing that regulations work even for direct end points, ie: not even accounting the overall cost to the majority of honest people in society.
    We see countless examples of regulations failing to prevent major problems.

    You argument says: Some people are criminal therefore we all need pre-emptive, compulsory regulation.

    My arguments are: regulation is pre-emptive (its first problem violating presumption of innocence due to use of force), it penalises everyone, it often doesn’t work, it’s unnecessary and yes I do think it is wrong to take away resources, (time and money) from everyone in an industry just in case one of them commits a crime. Unless this is a voluntary system.

    The argument you present backing up your claim is that “there are people who don’t care about the health and welfare of others when it comes to making a profit”.

    Well firstly, of course regulation or no regulation there will be bad apples.

    Secondly, your argument depends on “people making a profit”. But any company that operates in this way will not make a profit. I’ve already put up an example of how a company that wasn’t even deliberately dishonest, lost everything, went out of business, due a contaminated product. This is not a particularly uncommon example.

    And, surely you must realise this argument doesn’t work on libertarians. Put some more thought in, give us some examples at least.

    Haven’t you ever heard of voluntary recalls?
    Companies don’t want to harm you if they are in the business of making money. You don’t make money harming people. It’s difficult to sell “harm” and it won’t last.

    Why do you have so much faith in what is obviously a dodgy system at best?

    Why is it that some people hate personal pre-emptive rights violations. But not business ones?
    Why do we think different legal ethics apply to individuals, businesses and governments? We’re all people and we all live in the same society side by side.

  143. Brendan,

    I feel I must correct you here.
    The doctrine of free speech simply means the right to voice ones’ opinion in public. The government shouldn’t be able to censor or stop you beforehand.
    However, it has never meant that there will be no social consequences. If I tell lies about people, they can take me to court and sue me for damages. If I reveal the truth about the company I work for, and I had previously signed a contract or agreement to stay silent, then I can be sued in court, and ‘freedom of speech’ will not help me.
    I suppose I’m saying that anybody should put this caveat on their own speeches- Can I afford to be sued? If yes, then go ahead and speak!

  144. Secondly, your argument depends on “people making a profit”. But any company that operates in this way will not make a profit.

    As I said earlier, sure the company might not make a profit. It might end up bankrupt, but that doesn’t stop the former CEO from taking his millions and migrating to a beach in Southern Europe or Thailand.

    Oh no, the company went out of business. Who suffers? A company is a non-living entity. The only people out of pocket are the employees and the shareholders who weren’t responsible in the first place!

  145. But if it is unspoken (implicit)how do both parties know that the other agrees?

    Basically you never know 100%. You have to look at the evidence and form your opinion of their honesty from that. This is just the nature of human relations. In my dealings with you I will afford you the full rights of a citizen, but how do I know you won’t just throw it all to the wind and go on a killing spree? I can’t say with absolute certainty that you won’t, but I can look at the evidence and make a pretty accurate assessment. This doesn’t change the fact that any reasonable person would know that in my dealings with you I expect you not to go on a killing spree, and that this is part of the basis of any contract of association I have with you. No law is ever going to take this option away from you, but by having a law we (as in the members of a civil society) create a tool to assist us to deal with this situation (for example, being able to prosecute people).

    Brendan, I genrally agree with your points and I think we’ve done this one to death. Picking up in a bar is probably not the best example to discuss this one. I think while you agree that dishonesty is immoral, part of your argument comes down to a pragmatic point: we need to limit the reaches of government to stop it being able to do too much damage, viz:

    talking of “social contracts” confuses the discussion of real contracts and plays into the hands of statists who would regulate all aspects of our lives if we let them, including who we may or may not relate with.

    I don’t disagree with this sentiment. If the situation is for the most part trivial the last thing you want to do is put lots of regulations all over it, otherwise we’d never be able to live our lives. However, I also believe that we need to fully understand the basis of how society operates to have civil society, and indeed, to make effective law and prevent it being used improperly.

    Good fun working through this one.

  146. Shem, any reduced accountability of CEOs is due to our legislation. And laws are made by the state. So if a CEO escapes with these millions after committing fraud, why did our law enforcement let this happen?
    And what has this got to do with regulation?

    Again you are arguing the same thing. Bad things happen therefore we need pre-emptive, compulsory regulation. This does not follow as far as I’m concerned.

    I have repeatedly offered several counter arguments to regulation and they are not been addressed by you or Trinifar. But I’m getting tired of this discussion so will probably stop. I’m convinced of my point, you’re convinced of maintaining status quo.

    CEOs and CFOs are in Australia held accountable for fraud and can be jailed. Perhaps they should be more accountable. The whole limited liability ie: ltd thing. I don’t know much about the exact laws but I know CEOs and CFOs have legal accountability. That’s part of the reason they get such high salaries in big corporations.

  147. Nicholas,

    I had this conversation with John Humphreys arguing just your point on libel and defamation, however my argument came from the false assumption that you own your reputation, you do not. What someone thinks of you is not your property, it resides in and is generated by their brains/minds, and so you have no claim on a person’s thoughts. This is why libel and defamation laws are immoral.

    As to breaching a contract that requires confidentiality, then you are correct and I agree with you (and have never said otherwise). However no confidentiality clause is enforceable if it requires you to hide a crime. Grassing up an employer who doesn’t disclose that their product is unsafe will have consequences, but your employer would not be able to sue you for breach of contract.

    Of course I agree that social consequences of dishonesty are entirely apt, simply from my belief in freedom of association.

  148. How the courts have solved this problem is to distinguish between agreements which are intended to be enforceable – contracts – and those which are not. Contracts require offer, acceptance, consideration and an *intention* that they will be enforceable. The discussion above doesn’t seem to take this into account. Enforceability doesn’t come down to whether a person or bystander subjectively thinks it should be enforceable. It comes down to whether it is ‘objectively’ intended to be enforceable, in other words, whether the particular court thinks that ‘a reasonable person’ would have intended it to be so. Yes it’s an arbitrary construct. However in the example of the fellow telling the lady that he’s a millionaire when he’s not. the mere misrepresentation would not be actionable, because the courts would say, in context, there was no ‘objective’ intention that it would be. But however if she required it in writing, and made it expressly made it clear that she’s having sex on the fundamental condition that it’s true that he’s a millionaire, then she might have a chance. Doesn’t sound very romantic though.

  149. For an excellent case on this subject, I recommend “Defending the Undefendable” by Walter Block. For those purists who care, it has a ‘forward by Murray Rothbard, and a commentary by Von Hayek, (just flip over them Tex, I did). From memory I got my copy from Laissez Faire Books.

    The author not only defends the traditional villains in society (the prostitute, male chauvinist pig, ticket scalper, miser, profiteer, strip miner, etc, but points out why they are actually heroes.

    You will find the slanderer and libeler in the free speech section along with the blackmailer, the denier of academic freedom, the advertiser, and the guy who yells ‘fire’ in a crowded theatre.

  150. Trinifar, is that the best you can do? Your persistence in bouncing back from being thrashed would be admirable if it weren’t for the great defects in reason and evidence that you keep ignoring.

  151. And since milliner and millionaire sound similar, you could always claim she misheard. It was a noisy bar, loud music playing, and she might have had a few too many, as had you, which is why your speech was slurred.
    A jury might accept it.

  152. Ben: You haven’t answered me on why market based food safety tests wouldn’t be more efficient and safer.

    Sorry, I thought it was obvious. They have not been more efficient and safer. In the USA. meat packagers do not have regulatory requirements, just suggestions from Dept of Agriculture which in the recent case prove not up to the mark.

    Tim R: We see countless examples of regulations failing to prevent major problems.

    Do we? If we had no regulation of the food and water supply do you think we’d be in fine shape?

    Why is it that we see no outcry from food manufactures asking to reduce government regulation? My point is this is just something made up by the pure libertarian right. There is no benefit to the public or to the producers.

  153. Trinifar, you are now much safer (apparently),

    From the Mises blog:

    “The Columbus Dispatch has an article about Bob Munley, a truly evil criminal. His crime? Producing and bottling tea, unregulated and at home nonetheless. And, state regulators can’t have that. So much for Liberty.

    Any risk associated with his tea is accepted by the consumer. Funny, you can purchase and consume FDA-approved drugs that are lethal, yet woe to him who dares sell tea made at home.

    I don’t know about you, but I sure feel safer knowing that Munley is no longer selling his tea.”

    More here:

    http://www.dispatch.com/live/content/business/stories/2007/10/11/kombucha.ART_ART_10-11-07_C10_GQ85BFR.html?sid=101

  154. Trinifar, where is the cut-off point, if any, at which government should be limited? So far you have put forward the point of view that the very failure of bureaucratic regulation shows a need for more funding. So… what? Would a hundred percent of GDP suffice: total slavery? Why should there ever be any limit on the equal or better capacity of government to promote the general welfare?

  155. Yes Trinifar, if we had only voluntary and or private regulation or even no regulation of the food industry I think we’d be fine, probably even better off as more money could be reinvested in these valuable areas of human pursuit instead of going to regulators who have no market mechanism of judging their value. Human trade existed for thousands of years without regulation, before some parasite thought it up. Contracutral agreements and guarantees have also existed for thousands of years.

    Some business people do indeed complain about regulation eg/ Telstra in Aust. And many businesses are effectively forced to lobby governments for the least damaging regulation possible to their business. Look how big lobbying is in the US.

    Some business leaders may even like having an unfair regulatory advantage and tax concessions. And this system stinks quite frankly and serves to create the rich get richer, poor get poorer scenario the lefties are so scared of. I’d be surprised if you would support this.

    But businesses are made up of people who often don’t complain about regulation because business people are the same as you and I, general people in society. And the general consensus, is that authority is good and shouldn’t be questioned. Blind obedience to authority is usually considered a virtue. This has in my opinion been a fundamental problem since the dawn of civilisation.
    There are other reasons too. eg/ People think the ends justify the means. An extreme eg/ Society will be better off without Jews.
    People think in context lacking catch phrases such as “if it just saves one life, it’s worth it”. Listen to a conversation at your work place and hear how much of the content is automatic, learned cliches. It’s how the human mind works. People operate on reduced-thinking parrot mode quite a lot of the time.

    And yes of course we see many examples of business incompetence or mistakes under a regulatory system. To deny this would be denying reality.
    The regulators are almost always too late to do anything. But they still benefit of course. I believe one day people will wise up to this and will be out in the streets burning their regulatory bras.

  156. Mark, that’s an interesting article about the tea maker. However, pointing to a bad regulation (or a badly implemented one) does not make all regulation bad.

    Justin: where is the cut-off point, if any, at which government should be limited?

    The cut-off point is where there is a balance in between benefit to the public and individual liberty. You seem to think there is never a net benefit to the public. I disagree and think we are surrounded by good examples as I’ve mentioned above.

    Tim: Human trade existed for thousands of years without regulation,

    Yes, and only in the 20th century did life expectancy in developed countries pass 50 years. I don’t think it is an accident that it was in the early part of that century that meatpackers were first regulated in the United States.

  157. I wasnt aware that you could contract a fatal illness from an old or wrongly prepared piece of steak. Get sick? Definately, die? that is a new one on me.

  158. Point out a good regulation that can’t be covered by tort or contract law.

    Hayek, along with Coase and Buchannan and the new instituional economic school have fairly strong arguments which favour broad, widely applciapble tort and contract based law rather than micromanaging the economy.

    Actually here is the issue: why is regulation better than tort or contract? Why must we add more layer of law on top of these sources of authority?

    Tort and contract law still deliver incentives and disincentives without restricting liberty.

  159. You can’t be serious Trinifar.

    All the advances in medicine, agriculture and construction, which are known to have directly influenced longevity are not responisble, but regulation of abbitoirs is the reason for the increase in lifespans in Western society…

    Again, why are those regulations superior to tort and contract law? A tortfeasor can bribe the aggreived party by settlement or a judgement. A producer can always bribe the regulator for less than the value of the regulation because they don’t have the same incentives as a party who has their contract breached or suffers from tort.

  160. Trinifar, how does your theory explain differences in prosperity and life expectancy of past civilizations before regulation was invented?

    Correlations are fairly useless at the best of times. Leave them for state funded “social science” uni students.

    Many people used to live longer than 50 years all throughout history, long before the 20th century as you imply. There are many examples of tribal and nomadic people living long lives without regulation. Mainly because they had better diets than agricultural societies.

    I’d say life expectancy was low in the dark ages. Lower than in Greek and Roman times. Maybe they needed regulation?!
    I think what they really needed was the discovery of microbes, less religious oppression and superstition, the ability to think more rationally, freedom from their kings and queens, and the opportunity to gain peronsal wealth.
    So looking at a more scientifically sound causation argument as opposed to correlation, lets see how regulation effects these end points:
    Regulation by definition decreases freedom, it reduces critical thought from consumers and producers who no longer have the onus of determining or assessing quality control procedures and it takes away resources in society for scientific advancement. How does regulation help a poor man become rich? It keeps the rich rich and the poor poor. It currently takes about 3-5 years of hard work to get a new product on the market. A great deal of that time would be spent liasing with regulatory offices as they determine the Australian standards for your product. How can your average Jo afford that kind of time and expense?

    Maybe we can move away from business into another area of discussion ie: Art.
    Art is a product/service that provides happiness, introspection, relaxation, emotion, abstraction etc to people around the world.
    We regulate art through government censorship. This pre-emptive, expensive approach is supposed to protect us from becoming crazy violent people or sex perverts. It’s pretty serious. Imagine if some young people playing video games became violent. That’s even more dangerous than food poisoning!
    So do you agree with censorship?
    Is censorship partly responsible for our increased life expectancy? Because I’d say the countries with the highest censorhips levels have some of the lowest life expectancies.

  161. Perry: I wasnt aware that you could contract a fatal illness from an old or wrongly prepared piece of steak. Get sick? Definately, die? that is a new one on me.

    Ever hear of E coli or Bovine Spongiform Encephalopathy (BSE, mad cow) disease? BTW, just saw this.

    Mark, see comment #145. As for tort and contract law — they are only after-the-fact economic remedies which can never correct for harming someone’s health or killing them. Necessary to be sure, but hardly a replacement for commonsense regulation.

  162. I think this has gone as far as it can go, no matter what, Trinifar prefers action to “save peoples lives”, isnt a fan of victimless crime and believes in pre emptive regulations and action to stop people from getting hurt. Individual responsibility be damned, We know whats good for you! You dont!

    This is starting to get the same as the Stockholm Syndrome already on the website,

    I eagerly await the next directive from Stockholm Central. Some suggestions;
    i) Mandatory bed times for children under the age of ten of 8pm.
    ii) Mandatory twice weekly visit to the gym (membership subsidised by govt)
    iii) A ban on sun cream sales of anything less than Factor 50.
    iv) Speed limits to be reduced by 10kph if children are present in the car.
    v) Mandatory helmets to be worn for coastal walking.
    vi) Ban on children under the age of twelve being left unsupervised by an adult at any time.
    vii) A ban on drinking alcohol while operating a BBQ.- BloodyPommy.

    I dont know if this has been previously brought up Trinifar, But are you in favour of gun possession?

    And also Trinifar, The symptoms of Madcow and alzheimer’s disease are very similar, there could be people out there suffering from Alzheimers that are really suffering from Madcow, or vice versa. As long as you hold the belief that “hey are only after-the-fact economic remedies which can never correct for harming someone’s health or killing them. Necessary to be sure, but hardly a replacement for commonsense regulation.” I just cant see this going anywhere else.

  163. “Mark, see comment #145. As for tort and contract law — they are only after-the-fact economic remedies which can never correct for harming someone’s health or killing them. Necessary to be sure, but hardly a replacement for commonsense regulation.”

    That sounds as though they are powerless – but they are not.

    Regulation offers incentives as well through the legislative punishments they are linked to. How they operate doesn’t matter as much as the incentives they provide.

    It is a matter of what is better in providing incentives. Coase, Hayek and Buchannan are clear that tort and contract law work better. The alternative is to micromanage every sector of the economy. This requires a massive, active bureacracy. This translates into a massive loss in production. Regulators do not have the same incentive to thoroughly regulate as do producers under the threat of the civil remdies. Regulators are easy to bribe.

    A judgement can only be bribed away with systematic corruption in society or by actually paying the victims off. The costs of both of these are so high it is simply cheaper to run your firm to a loss limiting stadnard.

    What has the best outcome on utilitarian grounds?

    Contract and tort law, provided private property rights are recognised.

  164. Trinifar,

    “Commonsense regulation”

    Which rule other than principles of tort and contract can truly be a one size fits all solution? What works in one firm may not be appropriate in another.

    Then the question of regulatory caputre pops up again. Examples of this are mandated equipment that must be used in certain industries. Perhaps in the medical industry in Australia, for accreditation, some of your equipment must be bought through the Government approved, private agent for the regulatory agency. Rules like this support rent seeking monopolists you so despise.

  165. I think, at the end of the day it comes down to not being dumb.

    If you’re dumb and let the government control your lives- they will screw you over.

    If you’re dumb and let businesses sell you inferior products- they will screw you over.

    The only way to stop yourself being screwed over is to not be dumb. And those that are dumb- well, I don’t think there’s much I can do for them.

  166. It all hinges on reason, Shem. How well you exist depends on how well you can reason. The level of morality in society depends on how much the members of that society choose to live by reason. A civilised society is one that uses reason as it’s primary means of making decisions.

  167. Mick: How well you exist depends on how well you can reason.

    Shem: I think, at the end of the day it comes down to not being dumb.

    Leaving aside for the moment the people on the low end of the intelligence distribution curve (being there due to genetic inheritance, accident, or illness), “how well you can reason” and “not being dumb” involves a bunch of factors. Access to education, good teachers, resources, and a supportive environment all play a role as do absence of violence, crime, abuse, and exploitation. Less dramatically, one thing all modern consumers need to make good choices is access to accurate information and often all that means is having the money to buy it — which most consumers don’t have. The wealthy do. They can buy the best information. The average person can’t compete.

    Consider the case of two equally intelligent, reasonable people. Let’s say they even have the same level of education. But one has no extra money to spend on lawyers, consultants, financial advisers, etc. while the other has the means to take advantage of such helpful services every day. Who’s going to make better choices?

    You need to figure out — reasonably and intelligently — the best way to educate your kids, the safest and most efficient way to travel, who supplies safe and healthy food, what forms of entertainment are good, what builders build good houses, etc. In general, you have thousands of choices to make about what products and services to buy. If you have wealth, you can essentially purchase that information. You transfer some of your wealth to others who have specialized knowledge in areas that are meaningful to you. If you don’t have that kind of wealth it’s just a crap shoot.

    What I hear people on this blog saying is “that’s the way it should be.” People with less wealth should be at much higher risk because they have less wealth. Seems idiotic to me.

    As Shem says, “If you’re dumb and let businesses sell you inferior products- they will screw you over.” Thing is, you can be quite smart but not have access to the information to make an informed decision which, if you are smart and wealthy, you can purchase.

    He also said, “If you’re dumb and let the government control your lives — they will screw you over.” But if you’re smart and not wealthy the government can screw over anyway. If you’re wealthy, you can influence the government in ways the non-wealthy can only dream about.

    What libertarian socialists like myself are saying is “Let’s level the playing field as much as possible since intelligence (and reason and not being dumb) doesn’t correlate with wealth.”

  168. Trinifar,

    Choice magazine subscription costs $78AUD for a year. Online perusal of all their online articles costs $18.95 per quarter. (internet cafe use in Australia cost a buck an hour).

    Remove the costs of running consumer watchdogs such as the ACCC and give that money back to the public. Then take into consideration that not having ACCC et al will increase demand for products like Choice magazine which will increase competition which will reduce prices for this information.

    Take all this into account and explain to me why we need lawyers, consultants, financial advisers, etc to make an intelligent decision. Explain to me how public service glut is a better option?

    Incidentally Choice magazine is run by the Australian Consumers Association which is a non profit organization committed to empowering consumers to get value for money.

    Check wiki: http://en.wikipedia.org/wiki/Australian_Consumers_Association

    Ruby Hutchison, MLC, the first woman to be elected to Western Australian upper house, had been receiving complaints from her constituents about the quality and value for money of goods.

    This must be an anomaly because this Government Official did not attempt to wield the mighty sword of legislation and instead attempted (and succeeded!) to DIY. Unheard of in this day and age!

    The first magazine was launched in April 1960 and distributed to 500 subscribers. Membership grew quickly…

    Why do you, as a self proclaimed Libertarian Socialist not look for working alternatives to increasing government power? I feel that it’s because of the obvious oxymoron but I’d be interested in your comments.

  169. I’d argue that money is of limited utility to a stupid person. They will end up losing it, and then continue to make the wrong choices until they are in trouble. Being able to behave according to reason is really something money can’t buy.

  170. Trinifar, I would say that you are wrong there. I think it is more a process of risk / reward situations. Should i pay a lawyer lots of money to show me how to shelter my investments from tax? Of course i should, if i am better off in the long run, i know some people who did not do this and now regret it because they didnt think it was worth paying a lawyer alot of money for him to figure out how to make their investments work best for them.

    Regardless of wealth, there are many ways of getting information about many things without spending lots of money. As Ben Shurey pointed out above. The internet CAN be a wealth of information, but many books and the like have all the information and more than a professional could ever tell you.

    As for your talk on intelligence etc, Heredity provides the potential for intelligence but that potential is either inhibited or promoted by the environment, depending upon wether the individual is in a faciliative or unfaciliative environment, we are born with a reaction range of up to 28 IQ points, where we land on this is depenant on the environment. Sorry about the school essay there but the best way to promote intelligence in the long run, is through faciliative environments which are far more common in the capitalist countries than in socialis ones. You could argue the case of China here, but China has a very free market and a very strong economy as you im sure you know.

  171. I liked this excerpt from an objectivist article by Peikoff and thought it was relevant:

    “In medicine, above all, the mind must be left free. Medical treatment involves countless variables and options that must be taken into account, weighed, and summed up by the doctor’s mind and subconscious. Your life depends on the private, inner essence of the doctor’s function: it depends on the input that enters his brain, and on the processing such input receives from him. What is being thrust now into the equation? It is not only objective medical facts any longer. Today, in one form or another, the following also has to enter that brain: ‘The DRG administrator [in effect, the hospital or HMO man trying to control costs] will raise hell if I operate, but the malpractice attorney will have a field day if I don’t—and my rival down the street, who heads the local PRO [Peer Review Organization], favors a CAT scan in these cases, I can’t afford to antagonize him, but the CON boys disagree and they won’t authorize a CAT scanner for our hospital—and besides the FDA prohibits the drug I should be prescribing, even though it is widely used in Europe, and the IRS might not allow the patient a tax deduction for it, anyhow, and I can’t get a specialist’s advice because the latest Medicare rules prohibit a consultation with this diagnosis, and maybe I shouldn’t even take this patient, he’s so sick—after all, some doctors are manipulating their slate of patients, they accept only the healthiest ones, so their average costs are coming in lower than mine, and it looks bad for my staff privileges.’ Would you like your case to be treated this way—by a doctor who takes into account your objective medical needs and the contradictory, unintelligible demands of some ninety different state and Federal government agencies? If you were a doctor could you comply with all of it? Could you plan or work around or deal with the unknowable? But how could you not? Those agencies are real and they are rapidly gaining total power over you and your mind and your patients.”

    http://www.aynrand.org/site/News2?page=NewsArticle&id=13873&printer_friendly=1

  172. Tim,

    Real life example at reason: http://www.reason.com/news/show/117351.html
    (Doctor) David Klees, got 12 to 24 years in prison…
    When Dr. Paul Heberle was arrested last April, dozens of chronic pain patients were left in agony. One of Heberle’s patients called no fewer than 37 doctors seeking care—all of whom refused to see him once he revealed the name of his prior provider….Six would later attempt suicide.

    Hooray regulation for saving us from ourselves!

  173. Perry,

    As for your talk on intelligence etc, Heredity provides the potential for intelligence but that potential is either inhibited or promoted by the environment, depending upon wether the individual is in a faciliative or unfaciliative environment, we are born with a reaction range of up to 28 IQ points, where we land on this is depenant on the environment.

    I don’t know where you get the 28 IQ point differential but I’m willing to run with it as I think it makes my case clear.

    A wealthy family ought to be able to push the high side of the envelope while a poor one might scrape the bottom. Given each type of family has a kid with a inate IQ of 100, the well-off kid might end up at 128 (approaching genius) and the poor kid at 72 (clearly disabled). How does society benefit? How do these two kids compete with each other for resources when one can easily take advantage of the other?

    Maybe I’ve misinterpreted your idea. Perhaps the wealthier child ends up at 114 and the poorer one at 86. No matter, the same thing applies.

    What you are saying is that wealthier families are somehow entitled to having better off, more intelligent children by virture of being able to provide them with a better environment — and poor families are doomed to having dumber kids. The rich get richer and the poor get poorer.

    What are the ethical implications?

    We have two children of inately equal ability. One is doomed by circumstances, the other blessed. My contention is that’s not good for society and it’s incredibly unfair to the children involved. The poor kid didn’t choose to be born into a poorer environment.

    To me it’s more than fair that the state step in and do it’s best to provide a richer environment for the poorer children. It’s not only a morally sound position, it’s better for the general economy.

  174. Trinifar; I am not sure why you equate disability in intellect due to family environmental factors with wealth/poverty. Family environment is more to do with functionality rather than how much you can afford.

    I know well to do families whose children are all successful. Those I got to know personally tended to provide a good family environment where the children (or young adults) were not indulged, and had responsibilities, and were respected.

    Others raised families of right little dropkicks who were not worth feeding even though the were given every advantage that money could buy. I suspect that the method of raising them was a significant aspect to this.

    A son of a forestry worker down the road from me, is now one of the highest paid mining engineers in the world. The family struggled to get him there, but although coming from a low income family he had the sense to take advantage of the opportunities that availed themselves to him.

    Another reasonably successful family around here are not terribly bright, but they consistently raise their kids with a good work ethic, and an ability to set goals and work bloody hard to achieve them and mostly succeed.

    Family aspects in IQ variance are I believe in the efforts in raising children, not in the wealth of the family. Money can of course help, but only if those kids have been raised to accept challenges and opportunity.

    Kids from poor families who are reasonably intelligent and determined to succeed will not be stopped by anything.

  175. Jim is absolutely right. And Trinifar – “We have two children of inately equal ability”. This is very often not the case, We inherit alot of our intelligence from our parents, it is a simple fact that more intelligent parents have more intelligent children. Although this is more because of the environment in which they grow up in. We are all born with a reaction range of 28 points, and you were right, where we are on that scale is dependant on the environment.

    However, You look at the problem merely as, These people dont have enough money, therefore they are unintelligent, therefore they need more money.
    It is far more complex, often the families that provide a severely deprived environment are ones that have been in the welfare trap for generations. Foetal alcohol syndrome has absolutely nothing to do with the amount of money a family has to spend, it purely relies on the choices of the mother. The point is that, People will spend their money however they want, especially if it is not really theirs *Welfare*.

    “To me it’s more than fair that the state step in and do it’s best to provide a richer environment for the poorer children. It’s not only a morally sound position, it’s better for the general economy.”

    The environment is not conditional on what kind of money the family has to spend, If this were the case then Paris Hilton would be a genius!!! The ultimate thing for rearing children is pretty much- You cant program what children will learn, they will only learn what they are capable of learning, which means that you must provide them with learning opportunities so that they can be the best they can be.

    It is true that socio-economic situations are the best indicator of IQ. Although poor blacks in the United States had an average IQ of 15 lower than the Average white, this was because they tested blacks from low socio economic groups however, As people progress into the middle class, their intelligence gets higher. Why is this? The more intelligent people moved up from where they were. The evidence suggests that the more free people are, the more intelligent they become.

    An example of freedom governing intelligence was- During the 70’s when the United States allowed abortion to be used temporarily, the crime rates dropped during the 90’s. When the children they would have had would have been old enough to commit it. Without that freedom for people to choose, and that freedom for the availability of what they choose, there would have been a larger amount of crime and a larger drain on the welfare system.

    This is a somewhat lame analogy, But Jim was talking about the mining engineer who came from a poor family. Lets consider him on the bottom run of the ladder when he started out, he finished on the top run at the end. Why is this? Because as Jim said – “he had the sense to take advantage of the opportunities that availed themselves to him.” Where would people go and what would people do if there was no where to go? We are all on the bottom run and the only way to get to a better run is to be in control of the country.

    Alot of the problems that occur, in very low socio economic groups, with intelligence. Are problems that reproduce themselves from generation to generation. And a part of this problem is the welfare system, providing the means for the families to keep on living as they have been for the past generations! Really the only way to stop them is to take away that bottle, or to just stop the people from reproducing.

    It is a fact that poverty breeds low levels of intelligence, And no amount of welfare and good intention and heavily taxing 98% of the population will fix this!

  176. So pretty much, Less government intervention and more economic opportunity = a higher general intelligence.

  177. Jim writes: Trinifar; I am not sure why you equate disability in intellect due to family environmental factors with wealth/poverty. Family environment is more to do with functionality rather than how much you can afford.

    Surely you can’t be arguing that rich and poor families have equal ability to provide a stimulating environment to their children? Sure, there are anomolies on both sides: the rich kid who’s a slacker and the poor kid who excels. But the average case is that rich kids do much better than poor kids — all other factors being equal — because their families can afford to do more for them. They can provide more and better educational, stimulating opportunies.

    Perry writes: The environment is not conditional on what kind of money the family has to spend, If this were the case then Paris Hilton would be a genius!!!

    Same issue. The one-off exception does disprove the general case. You say as much yourself: “It is true that socio-economic situations are the best indicator of IQ.”

    You also say: It is a fact that poverty breeds low levels of intelligence, And no amount of welfare and good intention and heavily taxing 98% of the population will fix this!

    But where is your evidence? There are two programs targeting very low income people in the US that have a relatively stellar record of success in improving the lives of poor children: WIC (Women Infants and Children) which provides quality food and some extra health care to low income pregnant mothers and young children and Head Start which provides extra educational opportunities to children of poor parents. If we are to credit anecedotal accounts, I can tell you about a math genius that I graduated from university with. He was the first to say that had it not been for Head Start he’d be — at best — working in a factory today.

    Turns out that some amount of welfare, good intention, and taxation can pay off for the benefit of everyone.

    In my own case, I was only able to finish college due to low interest government loans and a couple of small grants, but was then able to win a merit-based academic scholarship to grad school. Had it not been for those government run programs I wouldn’t have had anything like the career I’ve enjoyed.

    In both my friend’s case and my own we’ve been able to contribute far more to the economy because of government programs than we would have without them.

  178. Your saying that there is absolutely no way the merit-based scholarship could be obtained by a poor person without ‘low interest government loans and a couple of small grants’?

  179. First of all, your assumption is that without the government providing those programs then those programs wouldnt exist. The free market economy is extremely adaptable to the desires of its clients.

    2nd, You talk about one off cases not supporting the argument. How about you and your maths genius friend? The evidence is- with head start programs is that the IQ of participants gets higher WHILE THEY ARE THERE, (I write this in capitals to enforce the point) However after they go back home to their parents fulltime, IT GOES BACK TO WHAT IT WAS.

    We both argue that people in low socio economic environments are generally less intelligent than richer people. However i see this as a consequence of low intelligence and you seem to think of it as the cause.

    Unless you take drastic parternalistic action, the problem has normally developed before you have a chance to combat it. Childrens mental development potential ends at age 3, in other words if the potential isnt developed by then, then it is gone. The problems in low socio economic familys are generational, imbedded problems passed on from parent to child. If more money simply were the problem then Australian welfare and intelligence would be a shining beacon to the world. It isnt.

    The only way to combat the problems is to take control of other peoples lives and tell them what is good for them, Removing the child from the envionment would be an excellent decision for the child. However if you supported that decision based off of the face that it merely wasnt a facilitive environment by your standards. Then you would be no better than a communist, and not a libertarian socialist as you like to call yourself.

  180. In both my friend’s case and my own we’ve been able to contribute far more to the economy because of government programs than we would have without them.

    Let me try another angle on this one:

    You have said that the investment made in you has enabled you to ‘contribute’ far more to the economy. Therefore, by your definition, someone is profiting from your labours because you are contributing. People generally like to make money. If they believe that they can profit from you then they will invest in you to realise that profit. This is the market serving people in all it’s glory, which could also be said to be a group of individuals coming together to further their individual goals by helping each other out through mutual exchange of value.

    I think we probably agree on this. I was in a similar position to the one you desribed and achieved my tertiary education through signing up with the military for a period. I was discussing this one day with a computer science professor who advised me that Coles Myer (a big retail store chain) had put significantly more people through university than the Australian Defence Force had.

    Like I said, I think we’d agree that this type of thing happens. However, you’d argue that you need government when the market doesn’t do this for some reason. I’d argue that if the market sees an opportunity (for example by investing in someones education) it’s pretty good at taking advantage of it and if they market doesn’t see an opportunity there probably isn’t one there. In other words, that person will probably end up taking more than they ‘contribute’.

    The next step is to argue that everyone deserves access to the full education system as a basic human right, even if they are not going to contribute to the community as much as their education cost the community. I would argue that it is simply a fact that there is limited resources, and those resources should go to the ones who can generate more resources for others. Furthermore, if we approach this with my attitude it will generate more wealth and there will be more to go round so more people, perhaps even everyone, will be able to afford an even higher education.

    The reality is that you got a scholarship based on merit, which allowed to get where you are. I don’t think we should ever move away from awarding resources based on merit.

  181. Trinifar,

    Let’s just leave aside the fact that a Free Market would be happy to loan someone the money for an education as long as there was a belief that it would be paid back with interest further down the track.

    The Loan the government gave you was not from it’s own money. It was Taxpayers money. Money that they could have used for things that they thought were worthy. Don’t you find that morally bankrupt? You got something out of it at the expense of the person who worked for the money and could have used it then.

    Regardless of what you may claim are the benefits of this theft it is, was and always will be theft.

  182. Trinifar, according to your logic, if a randy old man can’t get sex because attractive young women won’t agree to have sex with him, it’s okay to do ‘social justice’ and ‘equity’ and even up the ‘distribution’ of ‘society’s’ sexual ‘resources; by raping them.

  183. Mick: Your saying that there is absolutely no way the merit-based scholarship could be obtained by a poor person without ‘low interest government loans and a couple of small grants’

    Nope. To get a shot at that merit-based scholarship and grad school I had to first qualify for grad school. To do that, I needed to get an undergrad degree, and to do that I needed a way to pay tuition. (In my case, I also worked during my time as an undergrad, but it didn’t pay well enough to cover living expenses and tuition, books, fees, etc.)

    Perry: First of all, your assumption is that without the government providing those programs then those programs wouldnt exist. The free market economy is extremely adaptable to the desires of its clients.

    I assume they wouldn’t exist at the scale they do now, and they those that did exist would be far more narrowly focused and not likely to be available in rural areas like the one in which I grew up. It’s the same reason that the private sector funds very little basic research. Only the government has the funds and motivation to do that — and the private sector reaps the rewards.

    Mick: I’d argue that if the market sees an opportunity (for example by investing in someones education) it’s pretty good at taking advantage of it and if they market doesn’t see an opportunity there probably isn’t one there. In other words, that person will probably end up taking more than they ‘contribute’.

    My sense of this is that some companies would be willing to support some students as long as those students were committed to a field of study directly relevant to the company’s bottom line and would come to work for them after matriculation, e.g. Exxon would fund petroleum engineers who would be obligated to work for Exxon for a period after graduation. The private sector would not be lining up to support people interested in, say, literature, history, the arts, etc., nor would a business support people who might go to work for their competitors. I suspect most people here would say that’s as it should be.

    Again this is the same reason the private sector doesn’t support much basic research. Just like not all basic research pays off, not all students are great contributors. Businesses usually try to avoid such risks. However, society and the economy benefit greatly by taking a certain amount of such risks. The entire computer industry and the Internet are the result publicly (government) supported basic research which was then picked up by the private sector.

    One point, in addition to those you mention, that we might agree on is that, at least in my view, there are too many people wasting their time (and potentially public money) getting undergrad degrees, students who are students just because they need a BS or BA to put on a resume, not because they have any innate interest in academic study. In the US, it seems now, a bachelors degree is equivalent to what a high school degree was a couple of generations ago. Yet, it’s my experience that many are able to obtain those degrees while exhibiting very little of the knowledge and skills the degree implies.

    Ben: The Loan the government gave you was not from it’s own money. It was Taxpayers money. Money that they could have used for things that they thought were worthy. Don’t you find that morally bankrupt? You got something out of it at the expense of the person who worked for the money and could have used it then.

    Yes, this is the standard rightwing libertarian position. My view is the taxpayers elect the government, those representatives they elect are responsible to those taxpayers and are there to implement the policies and programs the taxpayers want. To me, that’s democracy in action and I’m quite thankful for it. Nothing immoral about it. To the contrary, in terms of social organization and mutual benefit, it’s the best ethical system of organizing large societies the world has seen to date. It’s also produced the greatest wealth and most fecund economies in the history of the world. Sure, it’s not without it’s problems, but I’ll take it over totalitarism, monarchy, juntas, etc. any day.

    BTW Because it’s relevant to this discussion and might seem interesting, check out my recent post subsidizing the decline of food security in which I approvingly mention — of all things — the postion of the Cato Institute! It’s a strange world. 😉

  184. It’s the same reason that the private sector funds very little basic research. Only the government has the funds and motivation to do that — and the private sector reaps the rewards.

    Can you elaborate on this? Because at face value it sounds like a croc.

    Who develops all the breakthroughs in medicine and engineering? Definately not the government. Who develops all the breakthroughs in technology generally? Definately not the government.

    You really dont have a leg to stand on with that, Was Einstein a government employee? Did somebody tell him to think up the theory of relativity? I think not.

  185. Perry,

    Einstein is a great example of the creative genius of one individual. He was also working at the beginning of the 20th century (and, I should note, took the job at the patent office, a government job, precisely because it allowed him time to do his theoretical work).

    I suppose with a lot of work we could find a few more examples of important basic science being done with out government funds after Einstein, although none come immediately to my mind. But what would that show? Only that there are exceptions to the general rule. I’m not claiming that the private sector doesn’t fund any basic research, only that the vast majority of it comes from the public sector in the form of government run labs like Los Almos, Oak Ridge, and Lawerence Livermore (and many others), goverment supported universities, government contracts to the private sector.

    I don’t think it’s bad in itself that the private sector reaps the rewards of this use of public money — I’m just making the point that pretty much all the basic science that’s been done for the last 100 years has been done with government money. Look at CERN and all the other particle accelerators in the world — all public money. Look at rocketry and space exploration, satellite communication — all established with public money.

    The Internet was born of a US Dept of Defense project. So were the Interstate highways in the US and GPS. All of those are now the basis for a huge amount private enterprise.

    Can you think of a significant advance in medicine (in the last 100 years) whose roots are not in government investment in R&D primarily in universities, medical schools, and publicly funded hospitals?

    Insulin was discovered and first synthesized by government funded scientists in Canada and made the difference between life and death for the 7% or so of the population that has diabetes. In the 1980’s a private company figured out how to produce it at a higher quality and lower cost using genetic engineering — and the then freely available science produced earlier. That’s a typical pattern. Makes sense to me that it works this way.

  186. You’re nuts Trinifar. If we suggested those projects, they would be “corporate welfare”.

    All you have proven is that science has been nationalised, largely in the name of national defence.

    Your reason for continued nationalised health and large Government goes down to your idea that basic research drives applied research.

    What you are asking everyone to do is to continue taking a huge gamble on undirected research because it has been done this way the past 100 years.

    Maybe you’re right. Look at banking. Central banking can only be done by Government.

    Wrong actually. This is simply another industry that has been nationalised for no good reason. Banking, like science requires many of the same scientific principles and skills of life and physical sciences (hence a lot of engineers are bond and derivatives traders).

    Tell me why that Government funded, basic research driven science actually works better than private, applied research science. You’re already saying it is better, but we want to know why. Why should we take a gamble that undirected basic research is going to lead us anywhere?

    Edison made most if not all of his inventions for money. We need another Edison in biotechnology.

  187. Many school and university scholarships are funded privately through donations. Often when rich people die, they donate money to causes. eg/ Carneige.

    There are many excellent private universities. Universities need research to gain credibility, status, intellectual property earnings, to attract students, to increase standards of knowledge etc. Public or private, unis will always have research.

    The nobel prize, the most esteemed in science, was set up privately.

    Why are space programs a good example of valuable research Trinifar? How many lives did it help when man walked on the moon? These are a huge waste of tax payer’s money in my opinion and are more about national pride and other government propaganda. Thank God for all that tax payer funded weapons research, and all those tax breaks for weapons manufacturers. Go government research!

    Valuable satellite building on the other hand is usually privately accomplished.

    Most of the tax burden falls on the middle class, not the minority rich (who are in small number and avoid a large amount of tax paying). These are the hard working heros being forced into the government monopoly services. The money exists because of these people and not because of the government. So it follows that the reason essential government services exist is again because of the middle class people and their work and there’s no logical reason to think that if you took away the government, these services eg/ health, research would not exist.

    Your allegation that private research is an “exception to the general rule” is totally untrue. I work for a scientific research company that employs over 7000 people. I could spend all day reeling off pharmaceutical, agricultural, biotech, electronics and other technology companies etc that do research. I’ve also worked at an Australian uni and in my experience, the standard is much higher privately. And this is even when the government has attempted to monopolise science! Imagine the possibilities of fully privatising education and research.

    Did the government build Silicon valley? Has Bill Gates ever worked for the government?

    Some people argue that theoretical science detached from any obvious immediate practical application is more likely to be done if government funded. (although this doesn’t follow looking at highly socialist and totalitarian countries). One example presented by Carl Sagan is Maxwell Plank who mathematically predicted the existence of radio waves in the 1800s. Hertz then proved their existence empirically.
    But couldn’t Mawell Plank have just as easily made his discovery if the uni he worked for was privatised? A university has a huge amount of incentive to make breakthrough discoveries no matter who funds them. And government grants have many flaws, eg/ they are subject to popular whims of the day, political correctness, bureacracy, incompetence and unreliability. Also, they ultimately have less money to distribute.

    But I suppose you’ll argue that publicly funded research is “common sense” again. A euphemism for, “I don’t know how to logically explain my argument”.

  188. NB/ I don’t have a problem with the government or any other hypothetical justice provider protecting intellectual property through a patent system. (although I admit patents are messy and expensive and I also haven’t thought about them very much).

    Some libertarians do disagree with patents, and their arguments may be quite interesting, but this is a different issue to spending large amounts of tax payer money on research. Intellectual property protection has very little to do with government research expenditure.
    The patent office that Einstein worked at, is in my opinion a valid government function.

    Possibly there’s value in an international patent office where people could simultaneously gain intellectual property rights in many countries without having to pay the large patent fees in each country they wish to gain protection?
    It should also be noted that patent offices do not guarentee protection. You still have to battle out alleged breaches in what is typically a very expensive court process.

  189. Mark,

    You’re nuts Trinifar. If we suggested those projects, they would be “corporate welfare”.

    So? Look at the benefits to the private sector. Would you roll those back?

    Your reason for continued nationalised health and large Government goes down to your idea that basic research drives applied research.

    Well, I’m speechless. How else does it work? Not the nationalize bit (we can postpone that discussion), but the bit about basic research driving applied research. I think if you look at the meaning of those terms, that’s the only way it can happen.

    What you are asking everyone to do is to continue taking a huge gamble on undirected research because it has been done this way the past 100 years.

    And, again, look at the results (many of which I enumerate above). In a sense this is the crux of my argument. If you don’t have basic research, a large part of which is relatively undirect, general, investigation into fundamental science, then you don’t have any applied research. You need basic, fundamenatal research into the nature of things in order to have the scientific progress that applied research depends on. Much of it is a gamble, that’s the nature of scientific investigation and precisely why the private sector is largely unwilling to fund it. (Some businesses do, but they are few and far between.) If we only investigated sure things, science would stall and die, and so would applied science.

    You cite Edison, another figure like Einstein from more than a century ago, and even he was using the results of other publicly funded scientists. Can you name someone in the last 100 years with a similar impact? Or even just one significant invention that doesn’t depend on publicly funded science?

    Tim,

    There are many excellent private universities. Universities need research to gain credibility, status, intellectual property earnings, to attract students, to increase standards of knowledge etc. Public or private, unis will always have research.

    Yes. But look to the source of funding for those research endeavors. In the US it’s almost all public money — whether or not the uni is publicly funded. Grant writing is a specialty unto itself.

    The nobel prize, the most esteemed in science, was set up privately.

    Right. Now look at the winners of the Nobel Prize. How many worked without public funds. I think the answer is zero.

    Why are space programs a good example of valuable research Trinifar? How many lives did it help when man walked on the moon?

    I agree that manned spaced exploration is not a good use of resources. However, it’s what happened (and it’s really hard to see how the private sector would have done this). And all of the R&D into rocketry and sattelites was publicly funded. Would you negate the private sector boost from GPS and other consequences from the publicly funded space programs?

    Valuable satellite building on the other hand is usually privately accomplished.

    Actually only a bit of it. Nearly all satellites, and certainly all of the early ones, were built with public money. The TRW and Bell designed sattelites of the 1960’s were built by the private sector but funded with pulbic money. Again, a single private company didn’t have the resources to even begin to consider this technology. Only the US government did.

    Did the government build Silicon valley? Has Bill Gates ever worked for the government?

    Yes, the government provided the foundation of Silicon Valley (that’s where I made my own money) and Gates would have gone nowhere if not for the science and technology coming out of publicly funded universities. Look into the background of Hewlett and Packard (of HP fame), checkout the origins of Stanford Universtiy and its objective of moving publicly funded science into private sector.

    It’s vital to distinguish between those that managed to succeed in building huge commercial companies and those that created the very science and technology that enabled that result. Bill Gates’s expertise lies completely in the realm of business management and contract writing (buying the DOS operating system from IBM). He never created a useful technology. I don’t say that to diminish his contribution, only to put it into prespective. Gates bought a lot of useful technology and put it into what we now know as the Windows OS. Nothing wrong with that, but a far cry from being a creator of fundamental technology, and IMO the Window OS is a far cry from the functionality to be found in GNU/Linux which is freely available.

    But I suppose you’ll argue that publicly funded research is “common sense” again. A euphemism for, “I don’t know how to logically explain my argument”.

    No, I’ll argue that publicly funded research is the only game in town. Private enterprise can not do it, can not fund it, by virture of the competive system in which it participates. I don’t mind that. I just wish more people appreciated the government’s role in promoting basic science for the common good and for the good of private enterprise.

  190. You are wrong with regartds to Edison. Much of the basics of physics and chemistry was studied privately as a matter of intrigue. Yes there was some Govenrment funding but so what – this only proves that research has been nationalised.

    Your argument boils down to:

    1. Private firms can’t get enough capital to perform their own research.

    2. Basic research can drive applied research, but no the other way around.

    1. Is laughable. 2. Is a a matter of opinion and conjecture.

    So let the private firms decide how they conduct research.

  191. In Australia we have public water service monopoly. Compared to gas and electricity, our water service has the most problems. We have water restrictions in all states and people dob in their neighbours for using water. Recently a man was bashed to death watering his garden.

    But just because the water service is public, doesn’t mean it couldn’t be privatised!

    This is the same as research.

    As far as I can see, your argument is that public research exists, therefore it’s the best approach. Have you also considered the existence of tax breaks, regulations and public grant offerings that forced high level research to be dependant on public funds?

    Public space research was as you agree, mis-directed. Well isn’t that a good example of government wasting our money. Private research wouldn’t waste money on politically driven space programs to increase patriotism or moon walks.

    Private companies always work in connection with other companies. Outsourcing certain tasks etc. No company is an island. Look how many companies are involved in the manufacture of one car. There’s no reason to think that satellite building couldn’t have been developed privately just because one company alone couldn’t have afforded it. Unfortunately the government set up conditions where this was not as viable as described above.

    You say: Bill Gates wouldn’t have gotten anywhere without the government research and then imply this means he wouldn’t have gotten anywhere without the government itself! This is B.S. Firstly Bill Gates would have always gotten somewhere. But more importantly, he lived in a world where many universities were publically funded. If he’d lived in a world where universities were privately funded, the result would be the same or better.

    Apple is another good example of private research, developed from its founders that treated computer research as a fun hobby when they were young.

    Public money always originates from private money. Without seizing private money you can’t have public money. If people are prepared to be forced into wealth distribution, logically they will be happy to voluntarily give money for research especially considering its in their best interest.

    I can name many companies that do heaps of research and don’t get government grants.
    I have also seen many privately funded research projects at the university I went to. (even in today’s system that effectively discourages this approach).

    I am reminded of someone I met the other day who was proud to claim they were a “traditionalist”.

  192. Why is the “common good” in conflict with individual good or company good?

    If this is the case (and I don’t agree that it is), then how could a government overcome this anyway?

  193. Trinifar, tell me why firms won’t realise that I am wrong and you are right and they won’t let basic research drive applied research?

    The basic research argument is used to support nationalised science, but firms won’t do it?

    Why won’t they? Basic research is no more a public good than applied research.

  194. Mark,

    I didn’t say, “Private firms can’t get enough capital to perform their own research.”

    A lot of research goes on in the private sector; I’ve tried to be clear about that. While there are some kinds of basic research, e.g. CERN, that are too big for private enterprise, the private sector just isn’t motivated to work on basic science. It’s an ROI isssue. I don’t understand why you find that laughable; it’s am matter of mainstream economics.

    So let the private firms decide how they conduct research.

    By all means. And let’s use some public funds to enable scientists to continue to do fundamental research that has no immediate payoff. That doesn’t mean it’s haphazard. Sure some silly things get through the grant process, but astronomy, basic physics, biology, geology, etc. are on the whole rather nice additions to civilization (and of great use to the private sector economy). Look at the Human Genome Project and it’s successful mapping of our DNA. Could not have been done by the private sector alone, but it has stimulated a lot of economy activity.

  195. Too big for private enterprise?

    Note the soruces – UNCTAD etc. Now that is only the largest firms as well.

    R&D isn’t too expensive for the private sector – paticularly when public funding is generated from taxation. Every $1.00 spent by Austalian public bodies costs society at least $1.19 in lost production.

    I think we can move on from the idea that R&D is too expensive for the private sector.

    You keep on pushing the idea that the private sector isn’t motivated to work on basic research. It doesn’t matter if basic research drives applied research or vice versa – if there was no public funding of basic research, private firms would have to do it anyway, either to generate new ideas or to give their applications some theoretical breakthrough.

    Tell me why firms wouldn’t engage in basic research if they had no public subsidy on this?

    Your argument is slightly flawed here since univeristies do applied research as well, generally with external financing. To say there is no spillover into basic research is a very limiting assumption of human behaviour.

    Your argument that we need publicly funded science research rests upon the baseless assumption that the private sector can’t afford it and the shaky assumption that the private sector doesn’t have the incentive.

    Your valuation tool is an indefinite payoff period, based on the fallacy of the broken window.

    You couldn’t have done a worse job in defending nationalisation of scintific research.

  196. Mark,

    You couldn’t have done a worse job in defending nationalisation of scientific research.

    Oh, given time and effort I probably could have 😉

    Sorry, but I can’t read that diagram you link too. Is there a higher resolution source?

    You haven’t countered any of the examples I’ve given of huge investments in basic research that — I contend — could not/would not have been equaled by the private sector. We agree that some part of the public money applied to space exploration is mis-spent, but, still, satellites and the rocketry to put them into orbit was all due to public money which has produced markets in imagining, communications, and GPS that the private sector was quick to exploit (and I say “good for them!”). It couldn’t have been done any other way. Some things do require rocket science. 😉

    All I am saying is that there are some projects that the private sector has no motivation (can’t see the ROI) to engage in, that are still worthwhile. This is no mystery. You don’t build the Hoover Dam with private money. You don’t build a national Interstate highway system like that in the USA with private money. You don’t fund the basic research into biology that produces modern medicine and pharmacology with private money. Even Exxon and the rest of the oil conglomerates acknowledge their debt to public expenditures funding basic geology.

    Some of my colleagues at university helped to develop massively parallel computation systems to simulate the development of oil reservoirs thus helping oil companies in finding them. A good use of public funds, I think.

    This is no slight on the capabilities of the free market — just an acknowledgement that the free market has limitations (oh my!).

  197. CERN are very proud of their industry collarborations and are reliant on their sucess in this area.

    The human genome project could have been done privately. Celera Genomics did their own genome mapping along side the mainly public mapping. And I think it demonstrates how easy privatised basic research could be even in today’s world where governments attempt to control research.

    Basic research is mainly done at universities. eg/ Human genome project. Libertarians would argue that universities could be privatised.

    Why couldn’t you build a rail network, interstate road or large dam with private money? These have been done before. The money originates privately in the pockets of your average joe.
    What is this point where something suddenly becomes too big to be done privately by one or multiple companies?
    Private enterprise runs many public transport systems and is responsible for massive projects like sky scraper buildings, big bridges and football stadiums.

  198. “You haven’t countered any of the examples I’ve given of huge investments in basic research that — I contend — could not/would not have been equaled by the private sector.”

    But you haven’t proven that nationalised research necessitates basic research. There is no need to counter the examples.

    “Sorry, but I can’t read that diagram you link too. Is there a higher resolution source?”

    The amount of R&D spending by multinational enteprises is phenomenal. The idea that the private sector cannot afford research is beyond weird.

    “All I am saying is that there are some projects that the private sector has no motivation (can’t see the ROI) to engage in, that are still worthwhile. This is no mystery.”

    Huh? If it becomes apparent that basic research drives applied research, then why won’t there be investment in basic research? Allowing the research to be private allows the most efficient level of basic research to be chosen, as firms will maximise their ROI based on the optimal mix of basic and applied research.

    All of those things can be built with private money. The scope is not too large for private enterprise. It is a shame you can’t read the table to see how wrong you are. But then you contend that private firms won’t be able to figure out which one of us is right (whether basic research drives applied resarch or vice versa) and in either case, won’t be able to choose the mix between the two which maxmimises firm value.

    This is just wrong. Business academics have known for a long time about unspecified payback periods and the contribution of “mistakes” to business successes. That said, industry probably knew about this at least implictly for a very long time.

    The market does indeed have limitations, but these are not overcome by nationalising research or the further nationalisation of private goods – under the flawed assumption they are public goods.

  199. To a certain extent, I think Trinifar is right, public research has benefited private enterprise, often without compensation (beside tax revenue). Public research that is gifted to private organisations is no more than a subsidy, and I would have thought that Trinifar would be against subsidies. Her example of the public research into oil reservoir modelling being gifted to oil companies seems a lot like the government cosying up to big oil Trinifar is likely to oppose if stated as such.

    However, what the state spends taxpayers money on, private individuals can’t use. For all the known positive results of public research (and the failures), what about the unknown uses that private research may have discovered? It is the unseen opportunity cost of public spending that is not seen and cannot be easily measured that matters.

    Basic research at any cost (to the public)? If it only saves one life? Who, but who, will think about the little children? Sound familiar?

    Perhaps if the US Army had taken the basic research it took as spoils of war from the German’s and auctioned it off to the highest bidder, not to mention the theorhetical breakthroughs in computers US public research funded, a McDonnell Douglas or Boeing might have used the rocket research to launch commercial satellites much earlier and cheaper and a IBM may have had personal computers on desks so much earlier than we actually had them.

    Instead, we know what did happen, the research into space and defence technology continued, isolated from commercial applications because of state secrecy. So instead of PCs and communication satellites in 1961, we had nuclear stand off over Cuba and mutually assured destruction by the 1970s and a moon programme whose only achievement was to show what throwing massive amounts of money at a project can do, a round trip to the moon for a handful of privileged individuals and a public bureaucracy in NASA still looking for a purpose, but spending up billions of dollars a year killing astronauts and not even able to launch satellites of any significant payload into geosynchronous orbit without using booster rockets, even retiring launch vehicles developed in the 1960s and 70s that were superior in their ability to launch satellites (and without the need to risk human life). Great use of public research, methinks not.

  200. Trinifar would convince me to the Trinifarian point of view if it could be demonstrated how firms are unable to respond to indirect incentives or cannot decide how much of capital they need to allocate to more risky projects.

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