Capitalism and Socialism: The Good, The Bad and The Ugly

It's also the case that postmodernism is a similar reaction to enlightenment-materialism: no, we aren't just biological programs or Darwinian creatures, there's more to life than "rational choice" and so on. We should be better than that. This was the initial motivation I think, and there's truth to that obviously.

Except that it was run off the rails by pathologicals and those driven primarily by self-interest (again, we live in a fundamentally STS world as the Cs have so often reminded).

It's a cliché in Europe, but perhaps there is some truth to it: that the US in particular has less noble values than Europe, i.e. more greed, consumerism, fixation on money, dog-eat-dog.

I reminded of Donald Rumself dismissing some European resistance to the invasion and destruction of Iraq as the mealy-mouthed quibbling of 'old Europe'

However, following this line of reasoning, perhaps we could say socialism is the more realistic vision, because it's at least theoretically possible to have a virtuous leadership, as opposed to a population of virtuous individuals. And if you have such a leadership, at least to some degree, like Putin's Russia for example, then this virtuous leadership can "pull up" the entire country. It's pulling the drug addicts out of their addiction, in your analogy.

What's interesting is the supposed conservative or libertarian desire for as little government as possible contrasted with the major support for Donald Trump in the last election from those very same conservatives and Libertarians (and let's remember that he likely got way more of the vote than officially recorded), and their continued, rather fervent support for him to this day. For all of their claims to prizing individual liberty and personal sovereignty over all other things, they do seem to love a good old fashioned government to come in and put the country to rights.
 
What seems to be pretty clear is that some kind of mix of socialism and capitalism is the best it can get here on the BBM, perhaps like others have suggested, some socialism at the government level, i.e. redistrubtion of reasonable taxes to fund health care and education (although not necessarily with a government designed curriculum) and infrastructure and capitalism (without is focus on rampant materialism) as an individual and collective work ethic that encourages creativity. It's just the crazy knee-jerk reaction, mostly from Americans, to any idea of socialism that is pretty perplexing and looks like evidence of some kind of brainwashing.
 
Here's an intro to a video on social democracy in Sweden from an American perspective.


Full video here

 
As I said previously, it's probably not very productive to talk at a practical level of how these systems are implemented today because they are corrupted by pathology, but rather in their 'ideal' implementation. In an ideal scenario socialism would be encouraged or facilitated by the state, i.e. there would be no impediments to people cooperating with others, it would be facilitated and encouraged. To do that, people would have to be free of unnecessary suffering brought on by the selfishness and ruthlessness of others. Again, we're talking about an ideal society here, and in an ideal society I don't think anyone would disagree that a "me first" or "dog eat dog" mentality has no place.

A few thoughts: I did not realize that we were talking about socialism in a best case, utopian scenario. That actually gives me a great deal of relief because I felt like there was support for socialism beyond the social democracies in Europe. Obviously when I read the phrase "wealth redistribution" something happens...
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What seems to be pretty clear is that some kind of mix of socialism and capitalism is the best it can get here on the BBM, perhaps like others have suggested, some socialism at the government level, i.e. redistrubtion of reasonable taxes to fund health care and education (although not necessarily with a government designed curriculum) and infrastructure and capitalism (without is focus on rampant materialism) as an individual and collective work ethic that encourages creativity. It's just the crazy knee-jerk reaction, mostly from Americans, to any idea of socialism that is pretty perplexing and looks like evidence of some kind of brainwashing.

I think that's the most realistic way of looking at it. To go with your earlier idea of looking at ideal or 'pure' outcomes, I'm not sure how useful that would be, just because I think it is almost impossible to imagine - my brain can't handle that many variables! For example, do we keep the nation state model? Money? What about foreign relations? International trade? Are there limits on private property? How much? I don't know enough to even begin to speculate much here, but I can't picture a world without at least some degree of 'free-market capitalism'. And here I'm not necessarily talking about 'capitalist speculators', just basic concepts and practices like private property, voluntary contracts, market competition at the most basic level of multiple people producing and selling their wares for some degree of profit, specialization, unskilled (and skilled) labor, trade with other regions, etc.

As I said previously, it's probably not very productive to talk at a practical level of how these systems are implemented today because they are corrupted by pathology, but rather in their 'ideal' implementation. In an ideal scenario socialism would be encouraged or facilitated by the state, i.e. there would be no impediments to people cooperating with others, it would be facilitated and encouraged. To do that, people would have to be free of unnecessary suffering brought on by the selfishness and ruthlessness of others. Again, we're talking about an ideal society here, and in an ideal society I don't think anyone would disagree that a "me first" or "dog eat dog" mentality has no place.

Can't disagree with that! I'd just add that if there are no impediments to people cooperating, what about competing? Of course there's healthy competition and then there's being a selfish jerk. But even in healthy human pursuits and interactions there is an element of competition, even if it's only implicit. We do that every time we display or recognize excellence, talent, skill. We compete with ourselves and with others. And if money exists, should we place an upper limit on what people can make as a result? For example, should a best-selling author be allowed to make several times the profit of what his 'competition' makes? Or a specialist of some sort who is leagues ahead of her peers at whatever it is she does? To reference Haidt's work, is that "fair"? And even in a world without psychos, we'll still have conservatives for whom the answer will be no, it's not fair. Yeah, that will lead to some level of inequality, but that's life and nature. Some people will always be better than others - at everything - and that will be reflected in all kinds of ways - economic, social, interpersonal, even spiritual...

Socialism, in essence, is based on Haidt's 'care foundation' and focuses on the group or "greater good". Capitalism is based on Haidt's loyalty and 'ingroup' and 'fairness' foundations and focuses on the individual. As a 'caring' system, socialism requires the input of compassionate, critical thinking humans to modify it so that it does not become totalitarian in its care. As an 'individual' system, capitalism requires the input of compassionate, critical thinking humans so that it does not become ruthless and totalitarian in its promotion of 'individual rights' and materialism. BUT, if you have to choose one or the other, and with the ALL important understanding that human beings themselves are self-serving by nature, which of these approaches would be the more appropriate basis on which to form a society that is made up of materialistic and self-service inclined humans?

I think you already answered this in your latest post above, but why do you have to choose? I think one of the great implications of Haidt's work is that we can't ignore these other taste buds (and it's actually liberals who choose one over the other, and conservatives who try to balance them all). Actually, I think an 'ideal' state has to take all this into account, i.e. by giving each value its due: fairness, care, etc. And I think this is what humanity has actually done for millennia. We haven't necessarily done it well, of course. But we're constantly navigating this world of meanings/values, weighing them in the moment, balancing and re-balancing, and sometimes wrecking things almost completely.

I know that the above can come across as awkward since the middle age is depicted so systematically as such a dark age. I'm not saying it was perfect but that is the unexpected picture I got from this period by reading various books, the latest one being "Montaillou, an occitan village 1294-1324". I mention it because it's based on hundreds of testimonies by local villagers "thanks" to the inquisitor of the time, Fournier, who interrogated the villagers and wrote down their testimonies over a period of 30 years.

Thanks for the recommendation! I bought it last year after seeing a recommendation from Nassim Taleb, but haven't gotten around to it yet. And it reminds me of what Collingwood wrote about the medieval worldview in the first chapter of Speculum Mentis. Maybe someone can find it and post it. If not, I'll try to get to it this week.
 
Just watched the Yang interview. The problem of the automatization of jobs in the coming years is discussed somehow in the thechnosphere but not so much in the political sphere. Entrepreneurship is going to be more limited than it is. Not sure for now about his proposition, but the devil's detail of the latest minutes of the interview are somehow intersting: He buys into the Russian interference conspiracy theory, like Joe Rogan, but his solution sounds like a belicose military threat. Very charming.
 
I'd just add that if there are no impediments to people cooperating, what about competing? Of course there's healthy competition and then there's being a selfish jerk. But even in healthy human pursuits and interactions there is an element of competition, even if it's only implicit. We do that every time we display or recognize excellence, talent, skill. We compete with ourselves and with others. And if money exists, should we place an upper limit on what people can make as a result? For example, should a best-selling author be allowed to make several times the profit of what his 'competition' makes? Or a specialist of some sort who is leagues ahead of her peers at whatever it is she does? To reference Haidt's work, is that "fair"? And even in a world without psychos, we'll still have conservatives for whom the answer will be no, it's not fair. Yeah, that will lead to some level of inequality, but that's life and nature. Some people will always be better than others - at everything - and that will be reflected in all kinds of ways - economic, social, interpersonal, even spiritual...

I think competition and inequality are just part of life, and if you take socialism to the extreme (i.e. communism/equality of outcome), only bad things will come of it. The question is just "how much is okay"? I think most people don't have a problem if Stephen King or some lawyer working 80+ hours a week earn, let's say, 10 times more than them. But if global capitalists earn 1000 times as much as the average guy, then something is deeply wrong!

The trouble with the free market analogy I think is that it's just that: an analogy. But free-marketeers, in typical schizoidal fashion, just generalize it across the board. Or in Collingwood's terminology: they create a monstrous abstraction and take it to be something real. But obviously, a free market where farmers and shoemakers sell their wares in a fair competition is something very specific and cannot be generalized. I mean, there are tons of "markets" that by their very nature are something altogether different: large industries, organizations providing public service, "winner-takes-it-all" businesses such as online platforms, infrastructure, imaginary "capital-products" such as collaterals etc.

As for Haidt's moral foundations, perhaps we can "save" Joe's argument by going beyond Haidt's work, which after all is rooted in materialistic/Darwinian thinking: perhaps we can say that the "care" foundation is in a sense the primary one, as it points to an altruistic outlook and in the direction of STO. But from a spiritual perspective, the devil is in the details, big time: just how do you care, for whom do you care, in what situations do you care, what are your motivations etc.? And here, considerations like the spiritual path of the recipient as well as your own come into play - is he/she really asking, is perhaps a little "tough love" needed, what exactly would help him/her in this specific situation etc. In that view, Haidt's other moral foundations fall into place quite naturally. But we then stop talking in utilitaristic/Darwinian language ("advantage of group cohesion" etc.), but talk about ultimate goals of the Cosmos, STO, spiritual advancement and so on. FWIW
 
I think that accounts for a lot of what people call capitalism, but not necessarily all. Because some people work really hard to get to the point where they have to put in the least effort, materials and overhead. And some keep working really hard after that too. I'm interested in knowing how that breaks down. I'll be doing some research in the coming months (books!). I think one of the most resentment-inducing types of wealth is 'old money'. Those people didn't have to do any work to become successful, and people who work hard without becoming wealthy naturally resent that. Which is why I found the following interesting:

I'd argue that most people who are well off worked hard to get there,having known a few millionaires,they all spent decades building a business from nothing and working 6-7 day weeks non stop.Even now in their 60-70 they still pass up holidays and weekends to ensure smooth operation.They understand that tons of people are relying on them for their paychecks.
As for inherited wealth,I don't see anything wrong with it.Don't you want your kids to be better off than you?To enjoy the fruits of your hardships?Pretty normal sentiment.The problem is (as everyone has already pointed out) is lack of controls for pathology/corruption.Gov/biz collusion is a very destructive combo as can be seen from the medical/nutritional fields.That goes for other fields as well,the technology in our cars and planes is archaic compared to what it could be if companies like Boeing didn't deliberately keep inventors from pushing tech forward.There are literally thousands of patents that you can see for yourself that go back about a century and are more advanced than the transportation tech we use now.
So again it comes back to big corporations using government welfare to stay in business,when in any honest market they'd be out competed by people like Townsend Brown.
 
Actually, all the issues come back to lack of controls of pathological individuals in society and that goes back to lack of real public awareness of same. I think that awareness is something we need to spend more time promoting when possible.
 
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Thinking some more about the "free-market": it actually even falls short on the local village level. For example, people may buy at a specific farmer because they enjoy chatting with him, or they know his wife is ill and want to support him etc. even though he may not have the best products at the best price. Or someone buys at a shoemaker becaue the guy's cousin helped him raise his barn etc. It's community-driven. Life just ain't no free market!

The whole thing reminds me a lot of Darwinism: you start with a fundamentally wrong theory, and then add ever-more BS and workarounds to make the square peg fit into the round hole. Like: oh, companies tend to develop towards monopolies/oligopolies, so let's have anti-trust laws! Oh, for the market to work, people need to be informed but aren't - so let's have regulations for labeling and informing customers! Oh, business owners tend to talk to another, so let's forbid price fixing! Oh, turns out people aren't actually "rational, selfish actors", so let's incentivize competition! Oh, free-markets destroy beauty such as the high arts - so let's make an exemption and finance classical music and museums! Oh, free markets actually destroy communities and families, so let's put limits on it to protect them! Oh, free-market dog-eat-dogging produces misery outside the big centers, but that's the bedrock of our community - so let's subsidize/protect peeps in weaker regions! And on and on...

Just as with Darwinism: how much bad stuff your theory needs to produce before you ask the question whether the problem is your theory?

The irony here is that all the over-boarding and stupid government bureaucracy conservatives hate so much is actually a consequence of their own silly free-market theory! LOL!
 
Obviously when I read the phrase "wealth redistribution" something happens...

Apparently so! You obviously project a bunch of stuff onto that phrase, but it describes a central part of any government that collects taxes.
 
Apparently so! You obviously project a bunch of stuff onto that phrase, but it describes a central part of any government that collects taxes.

Yeah I mean for me the idea of redistributing wealth has nothing to do with taxes, at least not in the context of when people talk about socialism and complaining about rich people. The idea I have, aside from taxes, is the government giving money to poor people strictly because they are poor and taking it from wealthy people. Now that's probably a misunderstanding on my part which is why I said that some of these ideas should be defined.

I have had conversations with friends who complain about "old money" and how so many wealthy people in the US didn't have to do anything to become rich. They talk about the unfairness of the system and how that money would be better off redistributed to those of lesser means. That idea immediately turns me off because a) I don't believe that a majority of rich people inherited their wealth (about 1/3 in the US from what I've read) and b) because lots of people have worked really, really, really hard to make more than $100k/year and if we decide that those people should support others, what happens to work ethic, innovations in science etc.? Why do those of lesser means look down at people who have navigated the system competently and became rich, so much so that they engage the government to "even the playing field"?

It's all rather totalitarian to me. I don't have a problem with the government collecting taxes to take care of nationalized sectors which have a positive benefit to society, but I am very much against The Man putting his hand in my pocket, taking what's mine and giving it to someone "unwilling to work". But do I misunderstand that that idea is separate from wealth redistribution?
 
It's all rather totalitarian to me. I don't have a problem with the government collecting taxes to take care of nationalized sectors which have a positive benefit to society, but I am very much against The Man putting his hand in my pocket, taking what's mine and giving it to someone "unwilling to work". But do I misunderstand that that idea is separate from wealth redistribution?

It CAN become a bit totalitarian when taken to extremes, and the idea of giving tax revenue to someone "unwilling to work" who otherwise can work is obviously idiotic. Redistrubution of wealth as it is practiced in states with a mixed economies simply means using taxpayer money for social causes, that is, by definition, redistribution of the overall wealth of the country as represented by government tax revenues. Take unemployment benefit for example, that comes from tax revenue, and is given to people when they are out of work for a period of time. That benefit applies to people of all income brackets, not just the "poor". That is fundamentally a socialist idea, i.e. the government using tax revenue to provide for basic needs of people when they, for whatever reason, cannot provide those needs for themselves. Strictly speaking, under a capitalism model, there should be no unemployment benefit. If you can't gain employment, for whatever reason, then "suck it up cupcake, you'll just have to knuckle down and figure something out".
 
Australia's original Constitution of 1901 gave the Constitutional Government the right to 'coin money' on an as needed basis. For example, the Nullabor Railway was built using money produced specifically to pay for the labour and materials to build it. Taxes on the individual are not necessary to pay for domestic/social needs.

Taxes were originally and largely only applied to profits of business, then after 1914 and Australia's involvement in WW1, there was a move to tax individuals on their income to help pay the debts of war. It was meant to be a short term agreement, was originally voluntary and was seen as a patriotic duty. Outside of that, a man was seen as worth his hire - there is no profit in an equitable exchange of labour for money, so nothing to be taxed.

War bonds were also created and sold which is curious because on the one hand the worker is told that a war debt needs to be paid so we need you to pay tax, on the other an investor is told that there will be profit made from this so buy these bonds :nudge, nudge, wink, wink - watch the gullible suckers take the bait:

If anything, the privatisation of what used to be considered public assets where profit is considered before service, continual wars, skyrocketing national debt and individuals being registered as assets in service of those national debts is what has morphed tax laws into what they are today. Not only are wages/salaries taxed, but there are levies, taxes and excises on just about every product and service. What used to be considered public services are now run on business models where even levels of Government, it's agencies and subsidiaries are run on a for profit basis.

I've read that if local councils here in Australia were to ditch the business model, return to municipal offices of state government, land rates/taxes would be around 1/3 the cost they are now.

So, since the early 1900's - here in Australia at least - the burden of paying taxes has shifted from business profits to the employees - the reason why big business can pay bugger all in tax but the average worker carries the burden. After spending time reading the Constitution, Australian history, timing of acts and statutes being presented in and passed by parliament, Common Law, Civil Law and International Law it seems apparent that this was the plan all along.

So I agree with Laura - pathological influences will eventually bend any 'ism' to it's own ends and to do that, they will be telling/selling one story to the average person and another to an elite investor and the average person will pay while the elite investor will profit and the games will always be rigged against the unaware unless or until there's a 'straw that broke the camels back' situation like that has arisen in France or a decent, caring statesman like Putin takes the reins.
 

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