Category Archives: Politics

A few thoughts from re-reading Heidegger’s Parmenides course in 1942-43…

Hegel’s being and nothingness dialectic is taken up (aufhebung) into becoming. Hegel notes that being and nothingness are not really opposites as much as nothingness is the immediacy of abstract being. In this sense the dialectic here is not as much a play of absolute differences as universal and particular but a play of ‘sameness’ which nevertheless gets taken up, transformed, synthesized by becoming. In any case, the notion of being as abstract immediacy is first thought as nothing, as abstract, as NOT becoming. Hasn’t the existentialist taught us that being IS becoming? …nothing more or less. If I remember Hegel correctly the dialectic cannot go backwards, i.e., from synthesis to thesis and antithesis, becoming to being and nothingness. Isn’t there a progressive directional arrow of Spirit in Hegel’s dialectic? If we take Nietzsche’s maxim seriously that,

But no such agent exists; there is no “being” behind the doing, acting, becoming; the “doer” has simply been added to the deed by the imagination – the doing is everything. [Genealogy of Morals, Chapter 7, 13]

then aren’t we drawn to the conclusion that Hegel’s dialectic of being and nothingness is merely a verbal play? If we think of being and nothingness, abstract immediacy, then we must have already thought of being as not becoming, not yet lifted up to existence. Isn’t there already at work in Hegel’s thought a dichotomy, a binary opposition or at least a separation between being and becoming intrinsic from a prior and un-thought assumption? Have we thought of being as an absolute abstraction in order to ‘found’ existence and becoming? Has Hegel really revealed something profound or has he simply lapsed into the Latin, metaphysical belief that the mind does the body, being does becoming?

And, doesn’t this assumption have a progressive direction? Is there some kind of ‘creation ex-nihilo’ at work in Hegel’s cosmogony or idea-gony? Becoming rises up from being and nothingness. Existence is surmounted from being and nothingness. An ‘I’ is concretized, existential-ized as becoming, perhaps metaphorically as rising up from a kind of human vegetative state, from the emptiness of abstract immediacy. At play here is an ancient strife, polemos, a battle epitomized in the Roman misconception of Greek thinking, the thinking of truth, veritas, as oppositional from falsity. Heidegger points out the indo-European ‘ver’ as command, as rule, as higher imperium. I wonder if there is also a tale to be told here from the Roman dissimulated notion of Greek arche; origin, as rule rather than Hesiod’s notion of arche as yawning gap, differentiation not yet determined.

Truth then is taken as oppositional to false, fallere in Latin and from indo-European ‘to fall’, fallen-ness. To fall in Christianity is to not heed the command of the Lord. Here we have the beginning and most original Form of truth and falsity as absolutely oppositional. Hegel may be the most perfect expression; teleology of the Latinized absolute-ized reduction of truth to correctness, to truth as binary oppositions. Could Nietzsche have this in mind when he writes of the binary opposition of master and slave:

The watchwords of the battle, written in characters which have remained legible throughout human history, read: “Rome vs. Israel, Israel vs. Rome.” No battle has ever been more momentous than this one. [Genealogy of Morals, Chapter 7, 16]

Could this be the metaphysical canonization of slavery, of rule and imperium, we find in Constantinople Rome? Could Heidegger have this in mind when he writes of truth in his lecture on Parmenides? The excess of aletheia, unconcealed-ness, that Heidegger brings out from ancient Greece in contradistinction to the modern conception of truth is not thought from the binary opposition of conceal and un-conceal, semblance and truth, false and real? The rule, the order, the command determines origin and makes being possible without becoming or prior to becoming in some Idea-ological determination. If the order tells us that being and nothingness come before becoming, make becoming possible as the resolution of creation ex nihilo then the determination that being and becoming are differential, differentiated, draws its breath from the metaphysics of Rome. If these distinctions are merely verbal, merely historical repetitions of rutted patterns of habitual thought which oppositional-ize, deduced from artificial origins of being and nothingness that cannot stand in existence, in becoming, aren’t we really just reifying in auto-affection a beginning rule and order, a mathematics which cannot think excess to itself.

Heidegger thinks the excess of truth forgotten in Latin as aletheia. Nietzsche thinks it as the body doing the mind, becoming doing Being. Levinas think excess as the face of the other. Is there violence in ordaining that the rule reduce these terms to oppositions and transformations, that order oblivi-ate, forget its forgetting, make order the conquest of chaos, gap, differentiation without determination and not even be able to be able to escape its absolute subjectivism?

 

An Email to Paul Krugman

 

Dr. Krugman,

I have been an author for a number of years at a blog called “Critical Thinker Applied”. Steve Horwitz of the Austrian School has occasionally provided a guest essay and commented on various essays. I was a bit taken back when he responded to a rather provocative op-ed piece I wrote called “Smart” is the new dumb. While I am not an economist, I have done some research and posted articles on some of the issues I have with Austrian Economics. Of course, Steve did not like my article which concerned my idea that the government is more like a large business conglomerate than some different kind of large, homogenous, monolithic beast. I compared the electorate to shareholders or board members who could fire politicians (management) for doing a bad job. In particular, Steve wanted to claim that the government could not retain knowledge as well as private sector business and could not be as efficient as private sector business. My idea is not so black and white. I pointed out that there are parts of government like the GAO that can be just as efficient as business and retain knowledge. I also pointed out that business can fail to retain knowledge and become inefficient at times. His rebuttal was that studies proved voting has “built-in bias that do not assure the same sort of corrective processes”. In my response I asked him,

“It appears as if you question the whole ideal of democracy as a self-correcting process, albeit bumpy and messy but a progressive form of self governance. If voting is irretrievably flawed with “built-in bias, under your systemic analysis wouldn’t that indict democracy in general? Isn’t voting the cornerstone of democracy? Are we to suppose that the unbridled governance of the market is sufficient to replace the flawed governance of democracy?”

I am perplexed by his seemingly somewhat ambivalent and arbitrary designations of government and the private sector. I am sure he must be aware that even shareholders and board members vote. If voting is fatally flawed when it comes to government, how is it that this flaw does not follow into the private sector?

Best Regards,

Steve Horwitz and’Free Market’Fundamentalism

Critical Thinking Applied is no more. Jeff, the guy that was running the site, doesn’t have time for it anymore but my posts will continue on this site.

 

It is amazing to me that listening to Republicans rail about the Obama-Care web site, they have so much more consternation about it than they ever did about the two wars their cohorts started in Iraq and Afghanistan that killed and maimed thousands of our young people and tens of thousands of civilians. Even the neocons in the administration that started the Iraq war admitted it was a “mistake” and that there were no weapons of mass destruction. Both of those wars were tragic “mistakes” and created more terrorists than they ever killed. The silence of the right at that time is now replaced with bitter screeching about Obama-Care. You would think Obama-Care was poised to kill many more than those two wars with all their high pitched commotion.

 

Personally, I am sick and tired of hearing these government haters that call themselves “patriots”. I guess I can understand now how terrorists come to think of themselves as saviors and righteous. This malady is really best understood as a psychological pathology which ravages rationality and makes topics such as ‘healthcare’ worse than any war ever could be.

 

Before Critical Thinking shut down I wrote an article titled “Smart is the new dumb“. It was very interesting that Steve Horwitz, a leading conservative academic apologist for Austrian Economics, made a comment about this article. Steve had posted an article on the Critical Thinking site before. I wrote a series of articles which addressed his article and Austrian Economics:

 

Shadow Universals

Austrian Logic

RE: “Restrictive regulation is positively correlated with corruption”

Prelude to Understanding

Fundamentalism in Market Economy: The Austrian School

Fundamentalism in Market Economy: The Austrian School and Regulation

Fundamentalism in Market Economy: The Austrian School and the Problem of Suffering

 

Steve never responded to these articles but had his devotee Jeff respond. When Steve responded to my piece I was a bit taken back that rather than try deal rationally with the issues I brought out in previous articles he would rather respond in the emotive way detailed below. I have no problem with emotive responses but I would think it would be more valuable for an academic to respond to substantial criticism rationally.

 

In any case, my opinion about Austrian Economics after reading and studying their most famous advocates including Steve is that they are Economic Darwinists with a slight difference in contemporaneous spokespeople from their historical advocates. Many of the neo-Austrians nowadays are fundamentalists Christians. Steve just wrote a series of articles on the rationality of his Christian faith. These folks cater to the new right, the ‘libertarian’ to anarchist right with roots in fundamentalist Christianity. The Austrians in the United States are very outspoken about their dogma that, in effect, government is the root of all evil. Government keeps capitalism from being capitalism in their opinion. Government is the cause not only of the 2008 recession but also the Great Depression. Regulation is not the same as monopolistic tendencies in the ‘free market’. Somehow because regulation is done by the government it makes it infinitely worse than anything a ‘free market’ monopoly could achieve. Large corporations which buy up competitors, kill smaller competitors with cheaper production costs from mass purchasing, effectively regulate the market with ‘approved partners’, ‘approved hardware/software’ as is the case for Microsoft, are exempt from artificially deforming the ‘free market’ but government cannot be absolved of its ‘free market’ sins. When these Ayn Rand’ers beat their ‘free market’ elitist chests over the conquests of economic Darwinism they also decry the source of all market booms and busts, the government. The market would not create such hyperbolic deformities in its own terms but only when government interferes with the market’s Darwinian ethos, ethics, morality of sorts.

 

In view of this, I think the irrationality of these fundamentalist Christian Darwinists can probably not be understood as a legitimate academic pursuit as much as a psychological pathology. In my response to Steve’s comment I address the “monolith”, the “obelisk”, which conveys a kind of ‘magical’ wisdom for these pathologies. In this case, “government and not-government” which I shortened to “G and not-G” functions as government which is both a diabolic and monstrous evil and simultaneously a chaotic, bureaucratic albatross and not-government which functions as a holy order of freedom and simultaneously as a Darwinian, heroic defeat of weakness and inefficiency. It is as if God has decreed that the meek shall not inherit the earth but be banished from the earth. The beatitudes have found the ‘original intent’ in the ‘free market’. The ‘free market’ provides goods and services cheaper from a highly simplified notion of ‘competition’. It winnows out the chaff from the wheat. Instead of ‘those who will not work shall not eat’ we have ‘those who cannot win shall not eat’ and by the way, Jesus loves you.

 

Comments below:

 

  • Steve Horwitz

    October 25, 2013 at 12:20 pm· Reply

    Wow. This is what is called “critical thinking” and “reasoned discourse?” You guys sure this post was supposed to go on this site?


    It may be hard for some to handle this but the private and public sector are no different in fundamental ways. They can both be inadequate, ineffective, competent, provide an important service to the consumer. The can both put Shinola on shit. It is up to the employees and shareholders to either make the organization better or preside over their own ruin.

    This is the worst sort of uncritical thinking about markets and politics. The comparison is NOT between what individual corporations/firms and individual government departments (or gov’t as a whole) do, but the systems within which they operate.

    The argument for the superiority of markets is not that corporations are “better” or by themselves less likely to be bad in all of these ways. It’s that they operate in an institutional environment that provides them with knowledge and incentives to both KNOW when they’ve made errors and give them guidance and incentives to correct them in the right way. This is what market prices/profits/losses do and there is no comparably powerful analogue in politics. Voting doesn’t do the trick as numerous scholars have shown the ways in which that process has built-in bias that do not assure the same sort of corrective processes.

    I don’t give a gosh dilly darn about how wise/good corporate leaders and government employees are, nor about how they try to spin their mistakes etc.. What I care about are the epistemological and incentive properties of the institutions within which they operate, and on that score the theory and evidence favors markets.

    Rather than treating those of us who think markets are better as ignoramouses (do you really think the tone of this piece enhances civil discourse?) why don’t you do what critical thinkers are supposed to do and read the BEST arguments on the other side, not the strawmen you so clumsily knock down here?

    • October 26, 2013 at 12:29 pm· Reply

       

      Wow, too. I didn’t know anyone was reading this blog. It has been quite some time since I have seen any comments at all. I do not really write for others. I write these days more as a personal diary as I have found few that are really willing to hang with a detailed and prolonged argument come what may. Most of the posts here are simply copied from my personal blog. I am elated that you actually took the time to respond. I was not aware that there were any requirements for the ‘regulation’ of this site; the free market place of ideas if you will. If I were to classify this piece I would think of it more as a provocative op-ed. I guess in that sense it worked. It really came out of my frustration with the Yahoo email engine, the current propaganda about technology and Obama-Care and the highly simplistic ways these topics get tossed around. I was not trying to write a ‘critical thinking’ piece nor do I think that is a requirement for everything that gets posted here. I am not the only one that has posted these types of articles here. I have seen thinly veiled anti-Semitic, anti-Islamic, anti-liberal, anti-religious, pro-gay, civil morality lessons posts here by the other authors. I do not think or advocate that these kinds of topics should not be posted here. In many cases, they certainly are not reading and dissecting the “other side” nor do I think they necessarily should. I can comment and disagree if I choose or say nothing at all. Unlike academia I have no career to make, position to take until death do us part, economic incentive to publish or impress. As far as I am concerned all is fair here but always subject to scrutiny, objection and argument.

       

      I certainly love to engage in detailed and critical argument as the vast majority of my posts have been concerned with studies from reports by the GAO, CBO, OBM, FCIC, AEI, Congressional reports, legislative bills, Supreme Court decisions, Pew and Gallop polls, Simpson-Bowles, the Ryan Plan, historical surveys (i.e., Adam Smith, Carl Marx, etc.) and the detailed and highly referenced and footnoted series on philosophy. I believe I footnote and reference more than anyone else on this site. I have worked with statistical correlations as yet, unpublished and the problems of causality. The references below this post barely scratch the surface of the more ‘critical thinking’ posts I have published here. I also have read and dealt with articles by yourself, Jonathan Catalan, Mises, Rothbard, Rand and other publications on the Mises site. I have read much more than I have ever published from that site. I have read and commented on critiques both pro and con of empirical evidence related to microeconomics and the business cycle, regulation, inflation, boom/bust, capitalization and the Fed . The only person that ever really took the time to respond on this blog was Jeff. I really appreciate him taking the time to comment even if we disagree. I seriously doubt that you have ever read many of my posts here even the ones concerning yourself so I am a bit amazed that this post elicited a response from you.

       

      I disagree with Jeff on his notions of civility. I have no ‘ought-to’s or moral compulsions about civil argument. I do not attack individuals personally with profanity because I think that is an admonition of defeat in an argument not from some moral compulsion. As a blogger for many years I have regularly been attacked personally. I actually like it when that happens because I use it to illustrate the failure of an argument. In general, I have no problem attacking ideologies, philosophies, dogmas, etc. as they are not people but positions which can be dissected, subjected to empirical evidence, critiqued for logical inconsistencies and parodied. Provocation is one tool among others to elicit comments as you have demonstrated and possibly spur further, more critical examinations. Certainly, professors are not strangers to these tactics. I see the market place of ideas as an unfettered, type of ‘social contract’ which replaces war and violence with a cathartic sport and linguistic sparring and most important offers me the possibility of learning something, being persuaded to change my position, research and articulate issues more clearly. I would think you would not be unfamiliar with these notions.

       

      I understand your lack of concern with anecdotal comments. I enjoy theoria and praxis. Naturally, “systems” can and endlessly have been characterized and constrained to fit theoria so ‘critical thinking’ would be remiss without a healthy skepticism in this regard. I, apparently unlike some of the purported microeconomic theorists, put some stock in empirical studies and statistics. I also sympathize with Mises’ concern with underlying ideologies which has been discussed in terms of essentialism and with his distrust of positivism. However, when you argue from ‘the whole’, the somewhat editorialized “systems”, you indict and implicate the particular. Therefore, the particular is relevant and, depending on the degree to which you universalize your systemic dynamics, hold to your unique characterizations of ‘the whole’, particular divergent cases may indicate a systemic crisis with your organizational analysis, your theoria. Anecdotal evidence may be an indication of systemic inconsistencies but should not be construed as apodictive proof under any circumstances. I find theroia informs praxis and vice versa. Therefore, with regard to this,

       

      “The argument for the superiority of markets is not that corporations are “better” or by themselves less likely to be bad in all of these ways. It’s that they operate in an institutional environment that provides them with knowledge and incentives to both KNOW when they’ve made errors and give them guidance and incentives to correct them in the right way. This is what market prices/profits/losses do and there is no comparably powerful analogue in politics. Voting doesn’t do the trick as numerous scholars have shown the ways in which that process has built-in bias that do not assure the same sort of corrective processes.”

       

      I have a few comments. Your systemic assumptions here if I understand you correctly are:

       

      Private, by this I mean non-government, institutions are systemically built to retain knowledge and incentives. Is the logical contrary true that government is systemically inferior to the task of retaining knowledge and providing incentive? I assume this is implied by your reasoning.

       

      It appears as if you question the whole ideal of democracy as a self-correcting process, albeit bumpy and messy but a progressive form of self governance. If voting is irretrievably flawed with “built-in bias, under your systemic analysis wouldn’t that indict democracy in general? Isn’t voting the cornerstone of democracy? Are we to suppose that the unbridled governance of the market is sufficient to replace the flawed governance of democracy?

       

      The market is “self-correcting”. Is this in opposition to democracy’s fate fatale?

       

      Part of the problem in this undertaking has much in common with problems in Hegel. Your systemic analysis has run aground by virtue of its implied and assumed universality. The unicity which characterizes the superiority of the ‘free-market’ over the rabble of a democracy is highly over generalized. I would love to see the studies you alluded to as I am sure they and their opposing scholarly rebuttals do not paint such a clear and unobstructed path as you insinuate. In particular, you along with Ted Cruz seem to not take into account the ‘conglomerate’ organization of the Federal Government ; indeed, indeed, the possibility of any large and diversified (heterogeneous) systemic governmental organization. Do you think the GAO is micro managed from a ubiquitous hierarchy? Be careful, my wife retired as an auditor from the GAO and she loves to digest uninformed generalizations. Do you think that Federal employees are de-incentivized by a looming, homogenous bureaucracy? And would you have us believe that this does not occur in large corporations? Are all Federal agencies rendered systemically inadequate by the phallic obelisk, the evolutionary monolith, of your homogenized systemic analysis? Isn’t there some over simplification at work in such conveniences? I am not imputing a “better” or worse, a value judgment, on your analysis. I merely make the claim that the systemic underpinnings you are so eager to attribute to government and not-government (i.e., free market), henceforth G and not-G, may not be taken up (aufhebung) by what I see as the somewhat arbitrary boundaries of G and not-G, public and private, but alternatively and more appropriately by organization size, complexity, and coherency.

       

      It might be informative to take your statistical correlations and plug in dependent variables with regard to these organizational dynamics to see what you get. It seems somewhat intuitive that size (and the quality of size) matter in this regard. If you are looking at efficiency and knowledge retention you will probably find that sheer size, obstacles throw up by complexity and the degree to which management holds or does not hold multi-varied goals, dynamics, personal and collective goals together has much more to do with your outcomes than G or not-G. This is where you lose credibility in my opinion. You apparently cannot see the ways in which G and not-G share more organization dynamics in common than mere reduction to nouns. These dynamics are verbs not nouns. A conglomerate like GE can be run efficiently and with knowledge retention by making itself more heterogeneous, localized and departmentally self-contained. The government can and has done this as well. If you think the government is organized like over-hyped politicians would have you believe you really know nothing about how the Federal Government works. It is highly intuitive to think that to the degree that the G or not-G becomes a huge, vertically non-integrated, homogenous monolith, an obelisk to chaos is to the same degree that inefficiency and learning system feedback or loopback is inhibited AND that the difference between the nouns G and not-G is irrelevant and indistinguishable except only by virtue of your ideological underpinnings. Rather, system organizational dynamics do not come from the macro but from the micro as I assume you have some sympathy. Depending on how they are run G and not-G, massive organizations, can do well with your determining criteria or fail. The praxis, the truth is always somewhere in the middle. Some things they do well and others not so well. An oracular pronouncement based on ideological persuasion does not address systems and organizations as you suppose. I beg to differ, there is no decidable difference between G and not-G based on their formal noun derived and ideological infusions but on the successes and failures of size, complexity, and coherency. The ‘decidability’ of a dynamic, a systemic organization, a verb must itself be founded on a verb not on a self-evident, apriori, dogma that rests on a name, an arbitrary designation, a merely verbal bias (originating from subtle essentialisms as Mises might inform us) as G and not-G.

  • The Free Market: Capitalism and Socialism – Part 1

    Adam Smith, an Enlightenment thinker, thought of humans as fundamentally self-interested as contrasted to Thomas Hobbes. Hobbes thought that selfishness worked as a kind of glue for society. His idea was that people are selfish; fundamentally concerned only with themselves. This meant that each person wanted to thrive based on their personal wants and needs without regard to ideals like the greater good or the plight of others. However, as selfish people, they want security at any cost. In order to obtain security, people subject themselves to the state, to laws. While individuals would freely rape, murder and plunder without concerns of conscience they do not because they do not want to be on the receiving end of their brutish desires. The free subjugation of themselves to the state is called ‘social contract’ theory.

    Adam Smith lived hundreds of years after Hobbes. He was also a social contract theorist. He was concerned with how self-interested individuals create commerce. In “The Wealth of Nations”, Smith writes:

    “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own self-interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.”[1]

    He thought that when self-interested individuals compete, the process of competition resulted in the most optimum allocation of resources because competition resulted in the lowest average cost of goods or services. In this way, he thought that self-interest served the greater good. He thought that any time the government or monopolies intervened in this process it prevented the process from working as it should and kept costs artificially higher thus interrupting the normative operation of a free market. It is important to note that Adam Smith’s ideals of the free market only work on the basis of competing individuals not market monopolizing corporations or governments. Market monopolies interfere with competition and defy the ideal of a free market.

    “The price of monopoly is upon every occasion the highest that can be got. The natural price, or the price of free competition, on the contrary, is the lowest which can be taken, not upon every occasion indeed, but for any considerable time together. The one is…the highest which can be squeezed out of the buyers…The other is the lowest which the sellers can commonly afford to take…. The monopoly price is most often sustained by “the exclusive privileges of corporations (65)”[2]

    “Smith uses the terms “self-interest” and “private interests” always in opposite ways. For former, his most famous statements are “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest (20),” and, “by directing [his] industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention (351)”. Concerning “private interests,” Smith is not so sanguine; these private interests constitute the “spirit of monopoly (371)” which Smith so much detests. It should be clear by now, from what has been said before, that Smith is well aware of the dangers of avarice and especially so since the interests of capitalists diverge, in Smith’s view, so much from the interests of the general public.”[3]

    Capitalism (a term he never uses), as Adam Smith thought, is depended on private property and private ownership. The self-interested individual had complete legal and sole rights to their property. Without private property there would be no motivation for individuals to compete and increase their property ownership, their wealth.

    Socialism believes that individual interests are served better when they cooperate with each other and not compete. Socialism believes in social ownership. In effect, this means workers own production (also called the means of production). Production is not owned privately but by a group. There are many forms of socialism. Some forms of socialism believe that the workers in a factory own the factory, but everything else in the economy is ‘free market’ and private property. There is no government ownership is this type of socialism. Some forms of socialism simply pay a social dividend based on factory profitability. Some forms of socialism nationalize factories but still maintain private ownership. Social democrats use a progressive tax system and government regulation within a private market economy. There are also anarchist and libertarian forms of socialism. Socialists tend to believe that when the individual is elevated above the group, normal human interaction and group identities tend to get ignored. Language[4] is a perfect example of how humans are fundamentally collective. People do not have ‘private languages’. Communication is only possible by sharing a language that we individually did not make up. People are not hermits. We form governments, churches and social communities.

    “As soon as the land of any country has all become private property, the landlords, like all other men, love to reap where they never sowed, and demand a rent even for its natural produce. The wood of the forest, the grass of the field, and all the natural fruits of the earth, which, when land was in common, cost the laborer only the trouble of gathering them, come, even to him, to have an additional price fixed upon them. He must then pay for the license to gather them; and must give up to the landlord a portion of what his labor either collects or produces. This portion, or, what comes to the same thing, the price of this portion, constitutes the rent of land, and in the price of the greater part of commodities makes a third component part.

    The real value of all the different component parts of price, it must be observed, is measured by the quantity of labor which they can, each of them, purchase or command. Labor measures the value not only of that part of price which resolves itself into labor, but of that which resolves itself into rent, and of that which resolves itself into profit.”[5] -Adam Smith

    It is important to note that a ‘pure’ socialism or capitalism has never existed on any large scale. Every world historical economy has always been a mixture. For example, consider the notion of rent in capitalism.

    “For the purposes of economics, Smith divides society into three economic classes: the landlords, the laborers, and the merchants and manufacturers (448), or those who live by rent, those who live by wages, and those who live by profit (217). Now the interests of the first two classes are tied to the prosperity of the nation; economic expansion raises the value of land and increases the demand for labor and hence its wages. But exactly the opposite is the case with the third class, those who live by profit:

    But the rate of profit does not, like rent and wages, rise with prosperity, and fall with the declension of the society. On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin. The interest of this third order, therefore, has not the same connection with the general interest of the society as that of the other two (219).

    Thus the interests of the third class run contrary to the interests of the other two; expansion actually raises the cost of labor and rent and increases competition, thereby lowering profits, so much so that the ruination of a country is actually in the best interests of the third class”[6]

    It is interesting to note here that economic expansion “raises the value of land” but it is uncertain how long the values of land can go higher and how exactly the profits increase unless the property owner is the sole owner, i.e., already paid for and not obtained by a loan. It would seem that profit is “high in poor countries”. Adam Smith takes this an indicator of “ruination of a country”.

    A property owner allows a tenant to live in their property for a fee. The renter does not own the property and if the renter quits paying rent they are not allowed to live in the house. Likewise, a mortgage is ‘ownership’ on paper but the bank allows a mortgagee to live in the house as long as the mortgage is paid. In both cases, ownership is not sole or absolute – it is contingent on paying a periodic fee. So, the landlord or the bank cooperates with the individual in the interest of capitalizing on the financial arrangement. It should also be noted that the bank and the landlord are likely to be indebted themselves to the third class, “those who live by profit”; the financiers, that Adam Smith writes of above.

    We can see that the renter or the mortgagee is not a property owner in Adam Smith’s notion of property ownership. However, the aspiration of the renter or mortgagee is for property ownership. Since the aspiration of sole ownership is not reality, a group arrangement is made that allows an individual to have shelter until their aspirations can be obtained. However, it is certainly true that most individuals today will never own their house outright. Therefore, in reality they will live their whole lives working and cooperating in group economic, arrangements.

    In finance, leverage is the ability of an investor to increase their ‘paper’ holdings based on loans. Again, a group economic arrangement allows investors to obtain securities that they would normally not be able to afford. As such, the investor is obligated to a group, cooperative arrangement to leverage their holdings. The question of fees and profit is actually an ancient issue. The Bible explicitly forbids interest or profit on loans (Exodus 22:25–27, Leviticus 25:36–37 and Deuteronomy 23:20–21). These passages state that interest is exploitative. In this sense, those that base their faith on these books would be in perfect agreement with the writings of Karl Marx (at least on this specific topic) and Adam Smith. Exploitation with higher and higher fees for loans on rental and mortgaged property are examples of how the wealthy class, the real property owners, has increased their wealth at the expense of those that are not wealthy. This exploitation has been going on from the beginning. Even Adam Smith recognized the exploitation of labor. This excerpt is from an essay on The Wealth of Nations:

    “However, in the negotiation of wages, the worker is at a distinct disadvantage. In the first place, the law prevented him from joining with his follows to bargain (71, 151). Further, the law always favors the masters over the workers (151). Workers are prevented from joining in unions to raise wages, but the masters are not forbidden to unite to lower them; indeed, the law encourages them to do so. This legal inequality particularly angered Smith, who noted that, “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 (137).” But when the workers attempt to meet, it “generally end[s] in nothing, but the punishment or ruin of the ringleaders (71).” The inequality is so great that:

    Whenever the legislature attempts to regulate the differences between masters and their workmen, its counselors are always the masters. When the regulation, therefore, is in favor of the workmen, it is always just and equitable; but it is sometimes otherwise when in favor of the masters (151).”[7] –Adam Smith

    Socialism also recognizes the tendency for exploitation of the worker and tries to address it.

    In both socialism and capitalism dues must be paid to benefit. For Christianity[8], capitalism and socialism[9] a main tenant is “He who does not work shall not eat”. Paying your dues is not an option in socialism or in capitalism. Fees are required to participate in the group. The main difference is that in capitalism, according to the ‘theory’ of Adam Smith, individualism as self-interest reigns supreme. The ideal is that the individual worker benefits with private property ownership not the financier. In socialism, the individual worker benefits as well but socialists want to formally recognize ownership of production in a group context – the laborer not the financier. Depending on the type of socialism, the group could mean anything from share holders in a factory to nationalism of a factory. In theory, the individual should benefit in both systems. However, socialism wants to take precautions to ensure that the group of laborers benefit and capitalism viz. Adam Smith acknowledges that in some cases the financiers will benefit at the cost of the laborers. Both systems distribute wealth in one way or another. The fundamental problem that Marx wanted to address with socialism was how the wealthy, the financiers, ended up with all the real private property ownership while the workers, in effect, ended up as indentured slaves barely able to pay their bills. Additionally, in both systems classes are set up in practice.


    [1] Adam Smith, Wealth Of Nations, [WN I.ii.2)

    [2] The Forgotten Agrarian: Re-Reading Adam Smith, John C. Médaille, http://www.medaille.com/newadamsmith.htm, parenthetical numbers refer to section numbers in the cited Adam Smith work

    [3] ibid

    [4] Alas, you too young, free-market libertines who rail against the socialists in your rabid individualism – you too are a product of ‘group-think’ – it is called language – you just don’t know your indebtedness yet…

    [5] Adam Smith, Wealth Of Nations, [WN I.vi.7-8: p 67]

    [6] The Forgotten Agrarian: Re-Reading Adam Smith, John C. Médaille

    [7] ibid

    [8] II Thessalonians 3:10

    [9] In accordance with Lenin’s understanding of the socialist state, article twelve of the 1936 Soviet Constitution states:

    In the USSR work is a duty and a matter of honor for every able-bodied citizen, in accordance with the principle: “He who does not work, neither shall he eat.”

    In Lenin’s writing, this was not so much directed at lazy or unproductive workers, but rather the bourgeoisie. (Marxist theory defines the bourgeoisie as the group of those who buy the labor-power of workers and engage it in the process of production, deriving profits from the surplus value thus expropriated. Once communism was realized, that is, after the abolition of property and the law of value, no-one would live off the labor of others.)

    http://en.wikipedia.org/wiki/He_who_does_not_work,_neither_shall_he_eat

    The Free Market: Capitalism and Socialism – Part 2

    Karl Marx, the founder of communism, thought there was a higher and lower form of communism[10]. Engels and Lenin called the lower form of communism, socialism. Socialism is not egalitarian. Egalitarianism means everything is shared equally. Marx described socialism like this:

    “But one man is superior to another physically or mentally, and so supplies more labor in the same time, or can labor for a longer time; and labor, to serve as a measure, must be defined by its duration or intensity, otherwise it ceases to be a standard of measurement. This equal right is an unequal right for unequal labor. It recognizes no class differences, because everyone is only a worker like everyone else; but it tacitly recognizes unequal individual endowment and thus productive capacity as natural privileges. It is therefore a right of inequality, in its content, like every right. Right by its very nature can consist only in the application of an equal standard; but unequal individuals (and they would not be different individuals if they were not unequal) are measurable only by an equal standard insofar as they are brought under an equal point of view, are taken from one definite side only, for instance, in the present case, are regarded only as workers and nothing more is seen in them, everything else being ignored. Further, one worker is married, another not; one has more children than another, and so on and so forth. Thus, with an equal performance of labor, and hence an equal share in the social consumption fund, one will in fact receive more than another, one will be richer than another, and so on. To avoid all these defects, right instead of being equal would have to be unequal.”[11]

    Karl Marx thought that communism would eventually replace socialism not by force but by natural progression. Communism is egalitarian. Communism thinks that wealth should be distributed equally among equals. Individuals should not be singled out according to class, wealth, natural abilities, etc. but should work cooperatively for the greater good of society. Communism does not believe in private property. Private ownership and competition is thought to favor the rich and; necessarily, put less wealthy individuals at a competitive disadvantage. Private property is what gives rise to a class stratified society. In communism the ideal is one of egalitarianism; that all people are equal and should receive the benefit of their labor equally.

    For communism, individual ownership is not allowed but that does not restrain class stratification. The administrators of shared wealth, the government, become the de facto upper class. Wealth gets disproportionately distributed according to this class structure in communism as well. In practice, capitalism, socialism and communism cannot claim a classless society nor can they claim that the individual is the sole beneficiary of the toil of their labor as property owners.

    What follows from this is that the group or the individual is not normative for these economies but ideals. Class is inevitable for capitalism, socialism and communism – it is utopic to think otherwise. A class is group comprised of individuals. Mitt Romney is part of a class, a wealthy class. Most of us will realistically never be in his class. However, humans are aspirational – being human is being towards a future. In this way capitalism offers the promise of a possibility – the possibility for success, the chance to be in the wealthy class. For those that extol the virtues of capitalism, it does not seem to matter as much that the vast majority of these aspirations will never be fulfilled. What matters is the place for the dream, the drama of the ideal. As individuals, we need aspiration just after the need for food and shelter. We need to think we are or will be a part of the wealthy class. The goal of this aspiration is for membership in a group, a communal hope shared in capitalism. We are ready to use our collective language, our economic group arrangements, our families, societies and affiliations to aid us in our goals – the envisioned absolute wealth of our freedom. The dream that imagines itself as self-interested individualism is all the while prefaced, perforated and dependent on the other, the group, the community – our shared language. This is what socialism recognized and tried to articulate in its economics. What communism lost was the aspirational; the value we place on the desire for moving towards a future.

    In reality, there never is an isolated individual that can cleanly be separated from a collectivity. Additionally, the dream of accumulating more and more sole property ownership based on the system of self-interested individuals appears to reach practical limits as a result of the third group Adam Smith writes of, the financiers. None of us are hermits and make up private languages as we go through our daily lives. The notion of an Adam Smith styled individualism is what many philosophers think of as metaphysical (meta-phusis as beyond physics or beyond the physical). The aspiration I have referred to is desire for the metaphysical individual. It does not reflect our lived reality but necessarily participates in our sense of meaning and hope as an ideal. Aspiration is essential for meaning. To aspire is to see beyond the hum drum, the daily grind and meaningless repetition – perchance to dream. How does the state, the government, figure into our aspirations?

    For Adam Smith the state is the guarantor of our security. It is responsible for the military. It also is responsible for enforcing the law. It holds the promise of reprisal for violations of law. It is also responsible for public works projects and certain public institutions where profit is not possible.

    “According to the system of natural liberty, the sovereign [government] has only three duties to attend to; three duties of great importance, indeed, but plain and intelligible to common understanding: first the duty of protecting the society from the violence and invasion of other independent societies; secondly, the duty of protecting, as far as possible, every member of society from the injustice or oppression of every other member of it, or the duty of establishing an exact administration of justice; and, thirdly, the duty of erecting and maintaining certain public works and certain public institutions, which it can never be for the interest of any individual, or small number of individuals, to erect and maintain; because the profit could never repay the expense to any individual or small number of individuals, though it may frequently do much more than repay it to a great society.”[12]

    Contrary to popular belief, Adam Smith was not opposed to government regulation. He spent 100 pages in the “Wealth of Nations” discussing banking regulations. As has already been mentioned he knew the financiers in a society had a corrosive effect on society. They had a tendency for exploitation and government regulation was needed to hold them in check.

    For Adam Smith, self-interest is good for those that live by ‘rent’ and ‘wages’ but not for those that live by ‘profit’ as previously mentioned. Smith thought those that live by profit had a destructive influence on society. This is why Smith favored regulations for those who live by profit. The government certainly plays an essential role for ensuring a fair market. Of course, he recognized the issues with capricious regulations and the way they interfered with the normal market operation of efficient competition. However, he would have never given financiers carte blanch, deregulated access to the market. Adam Smith would have said, “I told you so” when the Gramm–Leach–Bliley Act of 1999, deregulated financial services. It repealed part of the Glass-Steagall Act of 1933 that prohibited a single institution like a bank from acting as any combination of an investment bank, a commercial bank, and an insurance company. Basically, the repeal allowed banks to use customer deposits for risky financial ventures. It also allowed banks to have conflicts of interest by ‘advising’ its customers to use its financial services and products without regard to more competitive and valuable investments. Additionally, the government was implicated in these risky investments as the Federal Deposit Insurance Corporation (FDIC) backed up customer deposits. The Dodd–Frank Wall Street Reform and Consumer Protection Act tried to restore financial oversight of banks and financial institutions and consumer protections. One thing it did was to allow the government to liquidate these institutions that are covered by the FDIC in order to keep these institutions from having large scale failures that would jeopardize the ability of the U.S. government to bail them out. Regulations not only provide a fair market but also protect the government from bankrupting itself from market excesses. Adam Smith would have understood the need for this and would not be calling for deregulation as modern Republicans have been doing.

    The issue here is that when individual self-interest promotes the healthy working of the market place then the government should stay of the way. However, the government exists to make sure it protects “every member of society from the injustice or oppression of every other member of it”. While it may be in the interest of oil companies to “drill baby drill” it may not be in the interest of the environment and therefore, other members of society to let them do it merely to increase their profits. The government’s job is to make sure the market protects other members of society whose self-interest may be damaged by one group’s profit incentive in the market.

    Adam Smith even recognized that the ‘free market’ was not a panacea that could solve all social ills. He stated that a primary function of government was to take care of public works and public institutions where the “profit could never repay the expense” of doing the project. It is certainly arguable that health care insurance providers and education could come under this rubric. It is not the profit interest of health care insurance providers to cover certain risky population groups or chronic illnesses. In order to maximize their profits it is in their interest to ‘cherry pick’ their clientele and drop clients that are a drain on the system. It would be hard to believe that anyone could seriously argue that health care insurance providers have not had quite a long history that illustrates this point. Additionally, while a very good private education is certainly feasible, the cost would prohibit many classes of society from being able to obtain an education. Education for a profit certainly works for those that can pay but simply ignoring the others that cannot pay is not in the long term interest of a society. Adam Smith argued that education is a public work when he we wrote:

    “The same thing may be said of the gross ignorance and stupidity which, in a civilized society, seem so frequently to benumb the understandings of all the inferior ranks of people. A man without the proper use of the intellectual faculties of a man, is, if possible, more contemptible than even a coward, and seems to be mutilated and deformed in a still more essential part of the character of human nature. Though the state was to derive no advantage from the instruction of the inferior ranks of people, it would still deserve its attention that they should not be altogether uninstructed. The state, however, derives no inconsiderable advantage from their instruction. The more they are instructed the less liable they are to the delusions of enthusiasm and superstition, which, among ignorant nations, frequently occasion the most dreadful disorders. An instructed and intelligent people, besides, are always more decent and orderly than an ignorant and stupid one. They feel themselves, each individually, more respectable and more likely to obtain the respect of their lawful superiors, and they are therefore more disposed to respect those superiors. They are more disposed to examine, and more capable of seeing through, the interested complaints of faction and sedition, and they are, upon that account, less apt to be misled into any wanton or unnecessary opposition to the measures of government. In free countries, where the safety of government depends very much upon the favorable judgment which the people may form of its conduct, it must surely be of the highest importance that they should not be disposed to judge rashly or capriciously concerning it.”[13]

    While this may seem to promote a certain kind of equality, it is really “the duty of erecting and maintaining certain public works and certain public institutions, which it can never be for the interest of any individual or small number of individuals, to erect and maintain”.

    The government is not a cancerous growth of society but just as essential as referees and rules are to games of sport. Getting rid of government is cutting off your nose to spite your face. It ignores the need for a market framework where fairness and protections are ensured. It should restrain monopolies and market bubbles that would cause cost to be “the highest which can be squeezed out of the buyers”. It is also responsible for filling in gaps that self-interest and profit cannot address. Karl Marx and Adam Smith both addressed the inherent exploitation built into an economy. Protecting individuals from economic exploitation is vital for an economy as socialism and Adam Smith understood. Karl Marx went further with trying to embody elements of protections for ‘self-interested’ individuals into an economy. Adam Smith understood the human need for aspiration, the need to dream, and tried to embody this in the economy of capitalism.

    What is dreamed must pertain to me and not to an abstraction about the state or egalitarianism. An ‘aspiration of the state’ is too abstract from the self-interested point of view. However, the abstract notion of an ‘aspiration for the state’ is not inconsequential – it is the aim of morality or what Adam Smith termed sympathy[14] (more like what we think of as empathy). Morality aims at egalitarianism in that it places oneself in the place of the other for Adam Smith.

    “However selfish man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though they derive nothing from it except the pleasure of seeing it.”[15]

    When I refer to morality, I am speaking specifically about the natural empathy that many people have for the suffering of others. There are very few people that proclaim outright that if you do not work just go ahead and starve to death. For most of us, we may think that those who do not work will not eat but few are willing to let children, elderly, handicapped or even lazy people die before our eyes. The same holds true for health care. We do not want to pay for others health care but the idea of just letting people die without it is abhorrent. This is why we are willing to pay more for emergency room health care than to address the issues systemically and at a lower cost. Most of us will not overtly proclaim that if you do not have health insurance go off somewhere and die. Few will proudly state that if you do not have shelter go live on the street (just not my street). While there is a certain chest beating, cathartic youthfulness about these proclamations it offends most people’s sense of responsiveness to these situations. It may help some to think that suffering is the fault of the person suffering (as certainly may be the case for some) but pushing this very far starts to look like ‘protesting too much’ and really serves only to show that the pull of morality is felt only reacted to negatively and defensively.

    This feeling of responsibility for the suffering for others is what I mean by morality. From the point of view of ‘my aspirations’, the suffering of the other is irrelevant. From the ideal of pure self-interestedness there is no place for this feeling. If the self is thought as the absolute metaphysic of individualism, the sole property owner, it does not serve the absolute interest of the self to care about the suffering of others; much less do anything about it that will not directly benefit the self. While morality is an abstraction from the point of view of self-interestedness, it is nevertheless a notion that most are not willing to depart with. Our self-interestedness tells us not to pay for anyone other than ourselves but the pull of morality will not let us ignore the suffering of the other. Morality is the ghost of our group involvement. It is the basis for the inevitability and indispensability of the state.

    As I have discussed while our metaphysics of individualism compels us towards an aspirational future, our realistic, daily involvements are fundamentally based on language, community and group. The capitalistic goal for moving into the upper class is itself a self-interested aspiration that embodies the notion of class, the group. All this shows us that individualism is perforated with group involvement and community. We are indebted to the other whether we acknowledge it or not. While chest beating individualism may be fun for some, individualism, the sole property owner, is essentially a dream, a drama that gives us meaning in our ‘me-only’ self-centeredness. However, individualism ignores the real ways in which we participate with others and are always already indebted to the other.

    Karl Marx went further than leaving the option of morality up to every self-interested individual. Adam Smith as well understood the role of government in achieving the affluence and security of individuals in an economy, protecting them from exploitation and providing public works projects. The communist notion of equalitarianism failed to make everything equal in terms of labor and preventing exploitation. However, socialism attempts legal protections of groups and individuals that aim at fairness, equal opportunity, an equal playing field and protections in an economy. It is important to note that ‘equal’ here is not some absolute ideal of equalitarianism as in communism but should be thought under the rubric of fairness. Marx fleshed out possibilities for how this could work more than Adam Smith but Adam Smith would probably have more in common with the objectives of Karl Marx’ than many of the modern Republican, the neo-conservative, advocates of capitalism.

    In any case, we are neither socialists nor capitalist; we are both. The ideal of either is not where we live. This is why there never has been a pure capitalism or a pure socialism. All great economies have essential elements of both. Beating others over the head with these labels may make some feel good but it is only a silly drama that fuels an inflated ego. These kinds of accusations can also be used to manipulate less aware people but it is really only empty rhetoric. The outcome of such practices is a chronic condition called hate and only hurts the hater in the long run. I believe it is better to ‘see’ how we live and try to ‘understand’ our drives and aspirations as they show themselves without metaphysical hermeneutics, pre-cognitive dispositions and assumptions, working below the surface. There is value in letting ourselves see and understand ourselves as we are and not in the service of some head game we play on ourselves. In all great economies, socialism and capitalism are really only two different historical ways of thinking about the same thing – an economy that works.


    [10] http://www.marxists.org/archive/lenin/works/1917/staterev/ch05.htm

    [11] Capital, Vol. I, Chapter 1, Section 4 (p. 78); Also see http://www.lrp-cofi.org/book/chapter3_transitiontosocialism.pdf

    [12] Adam Smith, Wealth Of Nations, ([1776] 1976, 687–88)

    [13] Ibid, (WN V.i.f.61: 788)

    [14] Internet Encyclopedia of Philosophy, Adam Smith, http://www.iep.utm.edu/smith/

    [15] The Theory of Moral Sentiments, Adam Smith (TMS I.i.1.1)

    “Smart”is the new dumb

    If you listen to the propaganda of no-fault capitalism you would think technology is the cat’s meow and government comes from the other end of the cat. Well, having worked in technology for years as an engineer and engineering manager, I can certainly testify to the fact that what folks think about technology (i.e., marketing) and what it actually is diverges greatly (see references below). The new marketing gimmick is “smart”. Smart apps are so incredibly dumbed down compared to the old apps. Open a pdf file in Adobe and then try the new Windows 8 pdf reader. You will notice very few options in the smart app. This is true of all the new smart apps. They only give you a couple choices…all the ‘smarts’ it took to learn Word or Excel are gone now…and they call that smart, I call it dumb. Oh, and let’s not forget the ‘smart car’ which is a go cart with a body (not that there is anything wrong with that).

    Oh, and the ‘government’ now is dumb and can’t manage technology. Well forget defense technology or Medicare on-line, the new Obama-Care technology is what is really’ reflective of government (and naturally the root of all evils is Obama). Government conveniently is inadequate compared to free-market technology. Free market technology is competitive and therefore offers the best product at the most competitive price…this is the new Republican ‘smart’ marketing crap. Unfortunately folks the real world is a lot more complicated than this oversimplified ‘smart’ propaganda (see references below).

    Here is what I can tell you for sure, if you had cameras following any large corporation around looking for all the dirt they can dig up on the corporation you would be amazed at the lack of morals, the cover-ups, illegalities, inefficiencies, bureaucracies , politics, ignoble greediness, way overhyped marketing Shinola. Don’t believe me, look at how often Yahoo goes down:

    As of 10/25/13, see link

    There is really no difference between private industry and government. They are both flawed and do some things well. There is no ‘saving grace’ to the free market that indisputably salvages the ‘glitches’ of free market corporatism (and corporations) from the ‘bureaucratic tyranny of government’. When Ted Cruz tells those of us that want Obama-Care, elected a president, obtained a super-majority, had Supreme Court decision to uphold Obama-Care that ‘the American people’ do not want Obama-Care he is also telling a huge amount of us that we are not Americans (or not true Americans). The spin, the marketing, never stops whether it is the private sector or the public sector.

    Advocates of the ‘free market’ tell us that competition saves the private sector. Well, in democracy voting saves the public sector as the Republicans have in recent years had a taste of but still have not developed taste buds. The ‘American people’ of Ted Cruz is destined to perpetual reduction…old white guys. Their pink slip will be sent more and more until their desperate attempts to secede, to shut down the government, to refuse to raise the debt ceiling, to say ‘NO’ to everything and anything, their illusory, aspirational belief that the ‘metaphorical’ South will yet rise again’ will inevitably collapse into the oblivion of history. Conservatism will and should certainly survive but not fanaticism. Ted and company are getting fired…even corporations put underperforming employees on the ‘firing track’.

    Oh, government does have one certain difference from the private sector. How long do you think a perspective employee would last if they put on their resume that they hated the company and would do everything they could to ‘shrink it so small they could drown it in the bathtub’? Even more, if the company hired the patriotic, god-fearing terrorist and allowed the ingrate to shut down the company and destroy its ability to sell bonds, go public, raise debt to grow and sustain the company we would think that it would be absolutely nuts for the shareholders to elect this maniac to be the CEO. In this then, we see Nietzsche’s modern nihilism, the wish for decline and oblivion. When corporations reward destructive employees whether it is from political power plays, bureaucracies, inadequate and hostile performance the company has become toxic and is doomed.

    It may be hard for some to handle this but the private and public sector are no different in fundamental ways. They can both be inadequate, ineffective, competent, provide an important service to the consumer. The can both put Shinola on shit. It is up to the employees and shareholders to either make the organization better or preside over their own ruin. By the way, when Republicans piss and moan about Obama-Care as if it were the worst thing to ever happen they conveniently downplay the private tragedies that occurred daily for decades for millions of uninsured and the increased premium we all paid for emergency room health care (out of site out of mind for them I suppose). Obama has tried to address these tragedies. If you do not like it make it better but don’t advocate the destruction of the company.

    Corporations are able to maintain a relatively untarnished reputation because they can contain their blemishes and destructive tendencies. The government has to put it all out to a hungry press motivated by the latest and greatest sensational story to boost their ratings and thus, their dollars. We, the shareholders, need to strain the Shinola from the shit and make sure we keep the positives, the constructive, outweighing the negatives, the destructive. We no longer live in a naive world of heroes and villains. We need to grow up and quit looking for devils to answer our illusory need for a dying metaphysic. There is no pristine holy ‘free market’ and tyrannical government, there is just us. We can kill to protect our religion or we can modify our religious dogmas to preserve the good and constructive in spite of our own collective failings.

    References:

    The Free Market Ideal

    Apple: Price Fixing and Collusion

    Free Market Either/Or Government?

    FAQs on HealthCare Reform

    An Inquiry into Austrian Economics and Steven Horwitz

    Fundamentalism in Market Economy: The Austrian School and Regulation

    Please Correct My Math

    The Free Market: Capitalism and Socialism

    (One more thing, anytime you hear folks state socialism as the opposite of capitalism please remind them that there has NEVER been a pure capitalism or socialism in history. Opposites are mutually exclusive. Even Adam Smith spent over a hundred pages on banking regulations in his famous “Wealth of Nations”. The whole ‘smart’ ideal of the United States form of capitalism as opposite socialism is poppycock…get over it, God and the devil inevitably had the same origin if God is everything purported of Him.)…grow up please!

    …my letter to President Obama

    Mr. President,

    I am requesting that you circumvent the gridlock in the U.S. House of Representatives and by executive decree release funding for the government and for raising the debt ceiling. I know this would be questionable from a legal and precedence point of view as the GAO has maintained (http://www.gao.gov/legal/redbook/redbook.html). However, they also acknowledge that there is precedence for some legal constraints on the power of the purse for the Congress. I might add that I know “the Congress” is specifically intended as the U.S. House of Representatives but I think a legal challenge might question whether this should also include the U.S. Senate. When the Congress passes a bill it becomes legal either after a simple majority or a super majority votes aye on the bill depending on the particular branch of the Congress and its rules. Our country depends on democracy, the majority rules. If the Congress can pass a bill under majority considerations then the continuing budget should also be passed under the same existing Congressional rules for approving the law in the first place. This would make changing the law or financing the law a democratic, majority not an extreme minority affair. It would also make changing the initial bill the preferred way to address financing rather than the current system of budgets or continuing resolutions since the votes would already have to exist by majority consensus to either fund or create a bill. Additionally, the debt limit could be handled by majority consensus as well. I also believe that rules which deny the ability for a majority to even vote on an issue should be abolished. Therefore, I suggest you override the U.S. House of Representatives inability to fund the government and raise the debt limit with an executive order and let the lawyers hash it out in the courts until existing appropriations laws can be changed to reflect the spirit of our democracy and not the obstructions of the few. It seems to me that the ‘full faith and credit of the United States’ is certainly a national security issue. Additionally, the downgrading of our bond ratings has already resulted in an increase to the cost of our borrowing ability and the debt placed on our borrowing. Downgrading our bond ratings more would have catastrophic consequences on our economy and national security that every patriotic American, including yourself, should not allow to happen.

    How to make gun control work…

    Here are the simple facts of effective gun control:

    Year 

    Annual Deaths Resulting From Firearms Total 

    Annual Rate of all Gun Deaths per 100,000 Population 

     

    UK 

    US 

    UK 

    US 

    2011 

    146 

    3,216,311 

    0.30% 

    10.31% 

    2010 

    165 

    3,167,212 

    0.50% 

    10.26% 

    2009 

    150 

    31,347 

    0.40% 

    10.22% 

    2008 

    174 

    31,593 

    0.70% 

    10.39% 

    2007 

    130 

    31,224 

    0.50% 

    10.37% 

    2006 

    211 

    30,896 

    0.60% 

    10.35% 

    2005 

    162 

    30,694 

    0.60% 

    10.39% 

    2004 

    156 

    29,569 

    0.70% 

    10.10%

    2003 

    163 

    30,136 

    0.50% 

    10.39% 

    2002 

    169 

    30,242 

    0.50% 

    10.51% 

    2001 

    156 

    29,573 

    0.40% 

    10.38% 

    2000 

    234 

    28,663 

    1.30% 

    10.19% 

    1999 

    212 

    28,874 

    0.80% 

    10.35% 

     

    Sources: UK, US

    I agree with the NRA, gun control advocates in this country would have no large effect on gun violence in this country. This is because gun control advocates are trying to compromise with gun advocates to the point of offering ineffective solutions. You can’t compromise with insanity without being insane yourself. WARNING: The GUN has a toxic psychological effect on certain types of people that feel weak and inadequate. The GUN makes them feel strong and superior. This is what psychology calls ‘delusional’. Freud had further explanations about this type of pathology which involved certain human anatomical parts. People who can be very sane and reasonable in many areas can have sociological illnesses which can result in maladies such as slavery, the Reich, etc.

    Gun violence will not get better unless and until people recognize this malady. The solution:

    1. National gun registry

    2. Shotguns allowed with Shot Gun Certificate

    3. Manual rifles and pistols allowed with Firearm Certificate

    4. There should be a very small cartridge limit to registered firearms (I suggest 3 as many states in the US have had in the past)

    5. No machine guns, rocket launchers, pepper sprays, semi-automatic and pump-action center fire rifles, disguised firearms, grenades, torpedoes, tanks, nukes, missiles, etc. for private citizens

    6. You must have a ‘good reason’ to own a firearm and a thorough regular psychological evaluation and criminal background check

    7. Strict fines and prison terms for legal registrants which are found guilty of letting others have access to their registered gun either by consent or omission (not locking up the arms)

    8. If the current opinion of the Supreme Court as delivered by Anthony Scalia is correct concerning the second amendment (see link), then we must change the second amendment. This has been done before…i.e., the 13th and 14th amendment (slavery) and the 18th and 21st (prohibition) among others.

    9. A huge law enforcement sweep to get illegal guns out of the country and diligent border protection to keep them from coming back

    Anything less than this will not greatly reduce deaths from firearms in the United States. Gun control advocates should be careful not to advocate watered down measures that will only provide more ammunition to the NRA. Those of us who believe in gun control may have to come to grips with the fact that only a radical solution will work, as the UK demonstrates, and quit trying to appease unmitigated pathologies. After what happened in Colorado, where very reasonable gun control laws brought all the sociological crazies out to vote, we should recognize that moderate and temperate rationality will not work. I hope all the Colorado residents who voted for recalls are really proud of themselves especially after the Navy Shipyard shootings and recent shootings in Chicago. Hey, maybe Chicago is the NRA’s answer to poverty which saves the government money? Anyway, I suppose most of those voters in Colorado will sleep good at night without a conscience about their vote. I know I will sleep good knowing that nothing short of a radical solution will solve the gun problem in this country…and I have been a hunter and a police officer.

    References: link, link

    Conservatism and Liberalism: A Historical Perspective

    The data previously discussed about the conservatism of the Robert’s Supreme Court being the most conservative since the 1930s has been studied and documented in terms of actual decisions and ideological bent of the justices. Anyone that would doubt this should address their concerns to the studies and we can debate them but not to me personally as I am simply conveying the facts.

    I think one important problem that comes into play in this discussion concerns the question, what is a conservative? The only way to really address this is to clarify our terms from a historical perspective. In particular, the words ‘conservative’ and ‘liberal’ have undergone some rather substantial modifications in recent times. When the Supreme Court rules on cases it codifies not only constitutional concerns but also historical, hermeneutic concerns we call precedence. In other words, the court must inevitably interpret and codify the founding documents of the country from these considerations:

    1. the changing, historical challenge which results from shifting vernacular semantics
    2. the need for further detail
    3. the need address issues never explicitly formulated by the Country’s founders as illustrated by Amendments to the Constitution and their ramifications

    The Supreme Court does not act in a hermeneutic and historical vacuum. In order to understand what a conservative Supreme Court would be, it is important to get some historical perspective on conservatism and liberalism. This discussion makes no attempt to discuss what ‘liberal’ or ‘conservative’ mean for the studies themselves, that is already defined in the perspective studies, but only historical considerations which should come into play when contemplating these concepts.

    The Liberal and Conservative Tradition

    Traditionally, the liberal tradition since the democracy of Athens was a liberation from oppressive and entrenched social, religious and governmental power structures. This is not to suggest that ancient Greece got this right from a modern perspective, only that the beginnings of these historical notions can be found from these early sources. The word ‘liberal’ comes from an ancient Greek word eliferos. It means to free or liberate. From this root we get the words liberty, liberal, liberate, liberation, liberator, liberally, liberality, liberalist, liberalize, libertinism, libertine, libertarian.1 Liberation and freedom assume liberation from something or a freedom to something. Traditionally, this came to be thought as liberation from oppressive forms of government, ethnocentrism, misogyny, slavery, and economics. It was also thought in terms of human nature as liberation from vice, sin and selfishness. However, even in this case, socially organized, centralized power structures such as religion or secular law were typically already set up and present with the reckoned plight of the inflicted individual. Thus, in this case, liberation from an individual’s human nature was generally already entangled in a centralized secular or religious hierarchy which historically did encroach on individual liberties or freedoms (i.e., according to the Reformation’s critique of Catholicism). A historical notion that emerged from liberalism is the idea of equality. In the Declaration of Independence Thomas Jefferson in his immortal declaration declared:

    We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed

    What and how this equality gets worked out remains controversial to this day. However, from Jefferson’s explicit admonition we can say without reserve that this was an ontological claim. The claim is made on our origin, our beginning and thus, our being. In view of the aristocracies and monarchies of Jefferson’s day this was a radical and liberal statement. Jefferson, as many liberals before him, could not find a way to justify individuality on any basis other than equality. If preference is given by a state, a religion or social mores of one individual over another it is a form of untruth. Liberalism opposes favoritism and calls for impartial justice for all individuals; for not conserving the status quo of traditional power structures.

    Individualism in liberalism has historically evolved into what philosophers call a metaphysic. A metaphysic operates as an axiom of truth which cannot be proven; at least from what modernity would think as a law of physics. A metaphysic addresses us at the level of being or ontology. The metaphysical axiom operates at a pre-conscious level. We always, already act as if it was a simple given. Even when we disagree with the axiom, we are still compelled by the axiom to disagree. For example, some may want to claim some sort of racial eugenics which goes radically against equality and individuality but they continually have to fight an uphill battle to do so once the absolute metaphysic of individualism and equality has been historically established. A metaphysic has gone to the level of unquestioned truth by most and is deeply rooted in historical consciousness. It can be opposed but even in vehement opposition it assumes a struggle with a deeply rooted adversary.

    Once an absolute metaphysic of the individual is maintained, the question comes into play, how and should individuals be given preference in such an ideology? Historically, this question has been answered in various ways such as natural rights, meritocracy, libertarian, Keynesian, social safety net and civil rights. The limits of liberalism seem to be on one hand at conservatism and on the other hand at collective ideologies, which understand the individual in terms of a group and tend towards centralized organizational structures, such as various forms of socialism and communism. However, it is interesting to note that whether conservatism is on the right or the far left, both agree on a form of statism, a central governing power structure which requires conservation not liberation.

    From the ancient Greeks throughout history there were always those who interests were protected by social, political and religious structures. These folks wanted to preserve the status quo and suppress tendencies for liberation. The word, conservative, was not used until recent times but it accurately describes those that wanted to resist changes to the norm, the established order. Moral judgments such as good conservatism or bad liberalism were always relative to each group. However, historically, liberators stood for freedom from tyranny. Historically, conservatives stood for persevering what was tried and true, in their opinion. Nonetheless, problematic issues have shown themselves from the conservative/liberal dialectic.

    A historical transition from the new liberators to the old oppressors has been a constant criticism of the conservatives in order to invalidate the initial impetus for freedom. In spite of this, there has never been a shortage of liberation seeking folks as there has never been a utopia which did not necessitate liberals. Conservatives have maintained the charge that ‘the new boss may be worse than the old boss’ so to speak. As long as social doubt remains about change, the conservatives have historically won the day. However, when conditions become severe enough to necessitate change, liberals or revolutionaries have prevailed. Liberals have also been accused of enabling conservatism in the form of the bourgeoisie. The conflict between liberalism and conservatism illustrates a fundamental conflict in how humans understand being. At its roots, being has elements of individualism and collectivism. This archetypal conflict was encoded in the U.S. Constitution with the struggles of Thomas Jefferson and John Adams. After the federalism of George Washington, John Adams and Alexander Hamilton, the liberal ideology of James Madison and Thomas Jefferson won out in American politics from the 1790s to the 1820s. At that time the Jeffersonians were called the Democratic-Republicans or simply the republicans for short but they were very different from the modern Republican Party.

    Jefferson wrote in 1798:

    Two political Sects have arisen within the U. S. the one believing that the executive is the branch of our government which the most needs support; the other that like the analogous branch in the English Government, it is already too strong for the republican parts of the Constitution; and therefore in equivocal cases they incline to the legislative powers: the former of these are called federalists, sometimes aristocrats or monocrats, and sometimes tories, after the corresponding sect in the English Government of exactly the same definition: the latter are stiled republicans, whigs, jacobins, anarchists, disorganizers, etc. these terms are in familiar use with most persons.2

    However, near the end of the 1820s the Democratic-Republican Party split into the Republicans with John Quincy Adams and the Democrats with Andrew Jackson. John Adams believed in a strong central government while Jackson opposed central banks. In those days, typically, liberals were skeptical of established, centralized forms of government and defended individual freedoms. Conservatives championed federalist causes and central banking. The traditional ideas of liberal and conservative have undergone even more mutations in more recent times but these mutations may be more of a modern confusion than a real challenge to these observed categories of human behavior.

    As mentioned, conservatives did not want change existing power structures. They wanted to guard established orders and traditions which organized society both religiously and politically. Liberalism can be traced throughout history in the writings of Aristotle, Machiavelli, Hobbes, Spinoza, Locke, Adam Smith, Kant and Thomas Jefferson. For Aristotle liberation was from personal vices and selfishness to the highest virtues. Aristotle wrote that “Of all the varieties of virtues, liberalism is the most beloved”. Others thought of liberalism as a kind of interventional development out from pure self-interest which emerges as virtuous from nature, reason, social contract either validating or invalidating government or efficient, laissez-faire capitalism. In more recent times, the notion of virtue with regard to liberalism, the esteem of individualism over protectionist institutions, has either been dismissed as yet another strategy of the state or as a metaphysically assumed, absolute individual which has no essential relation to social structures external to itself. These developments have muddled the traditional approach to liberalism and conservatism. One such example of these mutations can be thought from the perspective changes of the ‘old right’ and the ‘new right’ in the United States.

    The new right is a term used to describe a change in conservative politics starting around 1955. The previous form of conservatism, called the old right, started around 1933. They old right was for a small decentralized federal government. They opposed the federal, New Deal domestic programs started by FDR during the Great Depression. The old right was non-interventionist. They opposed entry in to World War 1 and 2. As Murray Rothbard put it:

    The Old Right experienced one big sea change. Originally, its focus was purely domestic, since that was the concentration of the early New Deal. But as the Roosevelt administration moved toward world war in the late 1930s, the Old Right added intense opposition to the New Deal’s war policies to its systemic opposition to the domestic New Deal revolution. For they realized that, as the libertarian Randolph Bourne had put it in opposing America’s entry into World War I, “War is the health of the State” and that entry into large-scale war, especially for global and not national concerns, would plunge America into a permanent garrison state that would wreck American liberty and constitutional limits at home even as it extended the American imperium abroad.3

    The old right mostly believed in laissez-faire, classic, liberalist economics such as articulated by Adam Smith. The old right was pro-business and anti-union as echoed by Robert Taft. The old right was for individualism and anti-statist or anti-federalists. As such, they resisted any intrusion of government into religion or morality. They had more of a stoic and silent opposition to legislating morality. Jeff Riggenbach claimed that before 1933 the predecessors of the old right was considered as classic liberals and claimed to be part of the older, Jeffersonian left.4 However, Jeff Riggenbach quoting Clyde Wilson, South Carolina historian Clyde Wilson, claims that the Republican predecessors of the old right departed from the company of the Jeffersonian Democratic-Republican Party:

    As Wilson tells it, “[t]he very name of the Republican party is a lie. The name was chosen when the party formed in the 1850s to suggest a likeness to the Jeffersonian Republicans of earlier history. This had a very slender plausibility.” The first problem was that “the Northern Republicans were totally committed to a mercantilist agenda, every plank of which Jeffersonians had defined themselves by being against. The Republicans of the 1850s exactly represented those parts of the country and those interests that had been the most rabid opponents of Jefferson and his Republicans.”5

    Mercantilism occurred in Europe from around 1,500 AD to 1,700AD from the collapse of the feudal system to the establishment of national states. It is generally understood as:

    The underlying principles of mercantilism included (1) the belief that the amount of wealth in the world was relatively static; (2) the belief that a country’s wealth could best be judged by the amount of precious metals or bullion it possessed; (3) the need to encourage exports over imports as a means for obtaining a favorable balance of foreign trade that would yield such metals; (4) the value of a large population as a key to self-sufficiency and state power; and (5) the belief that the crown or state should exercise a dominant role in assisting and directing the national and international economies to these ends.[link]

    While the old right was pro-business, they were also anti-mercantilist. The anti-mercantilist agenda was a reaction to the conspiratorial, monopolizing tendency of manufacturers and merchants with the government against consumers. Adam Smith and David Hume were major critics of mercantilism. Adam Smith wrote a very influential critique of mercantilism in 1776 called An Inquiry into the Nature and Causes of the Wealth of Nations. Adam Smith stated in this work:

    MERCHANTS AND MANUFACTURERS are not contented with the monopoly of the home market, but desire likewise the most extensive foreign sale for their goods. Their country has no jurisdiction in foreign nations, and therefore can seldom procure them any monopoly there. They are generally obliged, therefore, to content themselves with petitioning for certain encouragements to exportation.6

    This same sentiment can be found all the way to Aristotle. In Aristotle’s Politics he states this:

    There are two sorts of wealth-getting, as I have said; one is a part of household management, the other is retail trade: the former necessary and honorable, while that which consists in exchange is justly censured; for it is unnatural, and a mode by which men gain from one another. The most hated sort, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural object of it. For money was intended to be used in exchange, but not to increase at interest. And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of all modes of getting wealth this is the most unnatural.7

    Today, we might think of this as monopolizing market manipulation and corporatism. The old right did not think highly of the “Eastern Establishment-Big Banker-Rockefeller” wing of the Republican Party. The old right thought of the Rockefeller Republicans as statists which stood for big business and New Deal policies. The Rockefeller Republicans were subsequently referred to as RINOs (Republicans in name only). When big business in the early days of Standard Oil squashed competition through the use of government sponsored regulation, the old right saw this as a new form of mercantilism.

    The old right began to diminish with Eisenhower’s expansion into Vietnam and McCarthy’s ‘red scare’ of the 50s. The threat of worldwide communism was enough to shift the Republican Party from the old right’s disdain for centralized government to justification for a newly found conservative emphasis on justifying stronger Federalism for defense, or more accurately offensive, purposes. The new right rose with the presidential campaign of Barry Goldwater and Bill Buckley’s publication, The National Review. Writing of the fading old right and the rise of the new right, Murray Rothbard writes of one last stand by Ron Hamowy of the old right against the new right here:

    Ron Hamowy, however, managed to publish in NIR a blistering critique of the New Right, of National Review, its conservatism and its warmongering, in a debate with Bill Buckley. Hamowy, for the first time in print, pinpointed the betrayal of the Old Right at the hands of Buckley and National Review. Hamowy summed up his critique of National Review doctrines:

    They may be summed up as: (1) a belligerent foreign policy likely to result in war; (2) a suppression of civil liberties at home; (3) a devotion to imperialism and to a polite form of white supremacy; (4) a tendency towards the union of Church and State; (5) the conviction that the community is superior to the individual and that historic tradition is a far better guide than reason; and (6) a rather lukewarm support of the free economy. They wish, in gist, to substitute one group of masters (themselves) for another. They do not desire so much to limit the State as to control it. One would tend to describe this devotion to a hierarchical, warlike statism and this fundamental opposition to human reason and individual liberty as a species of corporativism suggestive of Mussolini or Franco, but let us be content with calling it “old-time conservatism,” the conservatism not of the heroic band of libertarians who founded the anti-New Deal Right, but the traditional conservatism that has always been the enemy of true liberalism, the conservatism of Pharonic Egypt, of Medieval Europe, of Metternich and the Tsar, of James II, and the Inquisition; and Louis XVI, of the rack, the thumbscrew, the whip, and the firing squad. I, for one, do not very much mind that a philosophy which has for centuries dedicated itself to trampling upon the rights of the individual and glorifying the State should have its old name back.8

    The new right increasingly gained influence in conservative politics through Ronald Reagan and Newt Gingrich. The consolidation of fundamentalist Christians and federally sanctioned morality in such issues as anti-abortion and gay marriage has continued through the present day. Jeffersonian individualism which came out of classic liberalism was wrongly co-opted partly by the new right’s mercantilism, its big business agenda, but ultimately by the statist merger of religion and the state in terms of politically sanctified issues like the moral majority, anti-abortion and gay marriage.

    When the Supreme Court rules on issues such as civil rights, gay marriage and abortion, it appears confusing to modern conservatives who have deviated from their old right roots and liberals which have moved more towards Federalist policies. However, the Supreme Court is not a modern institution only. It has a history and a precedence to preserve which does not lend itself too quickly changing ideologies. In the future I would like to look at some recent issues which have angered liberals and conservatives with a historical perspective in mind to try to understand how some of these confusions have come about not from a changing Supreme Court but more from changing historical notions of conservative and liberal ideologies.

    _________________

    1 See Link

    2 letter to John Wise in Francis N. Thorpe, ed “A Letter from Jefferson on the Political Parties, 1798,” American Historical Review v.3#3 (April 1898) pp 488-89 in JSTOR

    3 See Link

    4 Riggenbach, Jeff. “The Mighty Flynn,” Liberty January 2006 p. 34; Also, WHY AMERICAN HISTORY IS NOT WHAT THEY SAY: AN INTRODUCTION TO REVISIONISM, Riggenbach, Jeff, page 130, Link

    5 WHY AMERICAN HISTORY IS NOT WHAT THEY SAY: AN INTRODUCTION TO REVISIONISM, Riggenbach, Jeff, page 131, Link

    6 See An Inquiry into the Nature and Causes of the Wealth of Nations, page 400

    7 Aristotle, Politics, Part X, Link

    8 THE BETRAYAL OF THE AMERICAN RIGHT, MURRAY N. ROTHBARD, page 176-177, Link