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The Inexplicable Success of Capitalist Indoctrination

MikeF

Well-Known Member
Premium Member
But what's plan of action to always keep meeting the bar? Do you consider the bar to be met currently?

First let me say that most of my comments tend to be specific to circumstances in the US. I know that is a complaint you have. I think, however, that each economy has to tackle it's problems in order. If a country has a very high level of poverty, the focus should be on building a sustainable middle class, not trying to jump to an adequate minimum standard of living for everyone.

So, in the US, the minimum standard of living that I would like to see is not met, but I think it is achievable. As to maintaining it, I don't see that as as hard a problem once it is achieved. I spoke about automatic cost-of-living increases as an example that would be applied to any aid or subsidy.

I don't think that will ever become the standard either. A more down-to-earth example: Phones, at least one car per household, air conditioners in every bedroom, private health insurance, and private schooling are socially understood as the minimum bar for a good quality of life nowadays here in Brazil, but this was not the case 40 years ago. This does mean that life got a lot more expensive. And there is no sign of the bar ever decreasing.

I see a national healthcare system as the minimum standard, not private health insurance. I see private insurance as a supplement that high income earners can use to get private hospital suite for recovery, or concierge primary care services for example. I also see public school as the minimum standard, not private school tuition. Low income housing already has air conditioning in the US as far as I am aware, so yes, I would see that as required, along with affordable water and electricity service. I could certainly see local government supplied wifi service for the whole community, but not the priority until other more basic needs met.

As to cars, depending on location, I would much rather see free or subsidized public transportation, if only for those of a certain income level, rather than a car for every household? person?
 

Koldo

Outstanding Member
First let me say that most of my comments tend to be specific to circumstances in the US. I know that is a complaint you have.

I took into consideration you were talking about the US on this sequence of posts. Thus, my question really was on regards to the US, with the expectation that the conversation could eventually lead to a more global solution.

I think, however, that each economy has to tackle it's problems in order. If a country has a very high level of poverty, the focus should be on building a sustainable middle class, not trying to jump to an adequate minimum standard of living for everyone.

I agree, as long as the very minimum is being provided.

So, in the US, the minimum standard of living that I would like to see is not met, but I think it is achievable. As to maintaining it, I don't see that as as hard a problem once it is achieved. I spoke about automatic cost-of-living increases as an example that would be applied to any aid or subsidy.

Sure, but my question was about the specifics: How would you achieve it? You speak of aids. How do you increase the aids right now? Would you increase the taxes? Don't you think a significant ammount of taxes would need to be raised though?

I see a national healthcare system as the minimum standard, not private health insurance. I see private insurance as a supplement that high income earners can use to get private hospital suite for recovery, or concierge primary care services for example. I also see public school as the minimum standard, not private school tuition. Low income housing already has air conditioning in the US as far as I am aware, so yes, I would see that as required, along with affordable water and electricity service. I could certainly see local government supplied wifi service for the whole community, but not the priority until other more basic needs met.

As to cars, depending on location, I would much rather see free or subsidized public transportation, if only for those of a certain income level, rather than a car for every household? person?

I gave you that frame of reference because here in Brazil we do have a a national healthcare system, which is unreliable. We also have public schools but they deliver, in general, a low quality service. Offering quality healthcare, education and public transportation would indeed change our perspective here on what is necessary to have a decent life... however, this would definitely require raising taxes on the wealthy substancially.
 

siti

Well-Known Member
I don't know how affluent the average RFer is, but I think it's safe to assume that most of us are not in the 1% or even only the 10% wealthiest of our societies. But I have noticed that quite a few defend inadequate taxation of the rich. It reminds me of Stockholm Syndrome, or of mistreated people who defend their oppressors.
We are tribal in other ways, but in the case of capitalism so many of the have-not betray their tribe and fight for the tribe of the haves.

Why is that? How have the ultrarich managed to convince the majority that they and their wealth are untouchable?
Fiddling with tax rates does not convert a capitalist economy to a socialist one.

I don't believe the "majority" (or even many - including the ultrarich I would imagine) are convinced that "they and their wealth are untouchable".

Most countries with capitalist economic systems also have progressive income tax whereby higher income earners are taxed at higher levels than lower income earners...don't they?

So - since you have posted your question in the psychology forum...my response is that the "inexplicable success of capitalist indoctrination" is probably something that only happens in the minds of those who imagine that they are under some kind of oppression by said "capitalists".
 
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Firenze

Active Member
Premium Member
I disagree

I agree with this. But how are the rich not paying their fair share. Again, the top 1% pays 40% of the total income taxes while the bottom 50% pays 3%. Top 10% pays 50% of the income taxes. Why is this not sufficient?
I think it quite delusional to think that the top 1% pay anywhere near 40%. They have the benefit of $500 an hour tax lawyers the average citizen can't afford.
 

PureX

Veteran Member
So far not one of you lovers of capitalism has posed one single logical reason why any individual human on the planet deserves to possess more than about 30 million dollars. They cannot possibly have earned that much providing any products or services to other Human beings. So it’s nearly all parasitically derived wealth. And no one needs any more then 30 million to live out a very safe and comfortable life. So why should we let people pile up more then that? Especially when they use it to pile up more, and more, and more, with no limit to their greed? And especially when they can control the lives of so many other people with these big piles of money. And not in a good way. No one is being served by this kind of idiocy. And yet listen to them cry and wail at the suggestion of a 100% tax on personal wealth above 30 - 50 million. Why?

They have no reason. It’s just a blind reaction. And I’d love to know what’s driving it. But I don’t think they know, themselves. It’s automatic, or visceral.
 
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Stevicus

Veteran Member
Staff member
Premium Member
Certainly you can deny it. In my view, however, if the system has differential compensation, that meets my definition of "build in".

Okay, but I don't think it's something that happens passively or as some kind of natural consequence.

Hmmm. Are you being purposefully disingenuous? Let's look at your approach below.

Why would you say that? Don't you think it's rather whimsical and arbitrary for someone to just decide whose work is more valuable or should cost more without any real justification or explanation other than "just because they can"? You think I'm being disingenuous for recognizing it for what it is and calling it out?

What's interesting is that, when the rubber meets the road, the pro-capitalist crowd really has no answer to this point (and it's not as if I haven't invited them to give one). There is no rational, practical justification for such disparities, other than whimsy. I see this as a self-evident truth.

Your first mistake is that while many a traffic flag holder may have a High School diploma, it is by no means a pre-requisite for the job. In fact, I would think it wouldn't even require an elementary level education or even literacy. If society allowed, children as young as 8 or 9 can likely manage.

If society allowed, then a lot of things would change. The bulk of the discussion about capitalism and socialism is answering the question: What should society allow?

But okay, let's say he's a high school dropout or only has an eighth grade education. The example would still work.

Next we have the reality that while just about everyone can manage as a traffic flag holder, not everyone will be equally adept at heart or brain surgery. The work differential involved in qualifying even to go to college, let alone medical school after that, probably can be said to begin in middle school. Given the high stakes involved in heart and brain surgery and the limited number of each needed by society, we want to attract the most capable into these jobs, not merely those willing to go through the motions during the requisite years of training. High grades as the measure of high competency are required necessitating higher effort starting in middle school. This high work demand continues through college and into medical school and then into residency. Each level requiring a record of high achievement and an interview process for entry into the next level, with the number of available slots diminishing at each successive level. As to medical residencies, surgical specialties require 5-7 years of residency, 7 would be the number for our brain surgeon. So if we count schooling required after 6th grade, we are talking an additional 21 years for our brain surgeon. But let's take your number of 1.8333 * $15 to equal a wage of $27.50 per hour for the brain surgeon.

You expect someone to go through all that hard work and competitive stress for 21 years to only earn $27.50 an hour? No one we want doing those surgeries is going be remotely interested in such a compensation scheme.

Well, it was a rather contrived comparison to begin with, so I was just thinking of one possible measure in order to answer your question, especially since a common justification for these disparities involves claims that the skill levels are equally disparate. Taken to its logical conclusion, comparing the number of years of school and associating that with the purported skill levels makes sense, in the absence of any other hard information or input.

But it's not really so cut-and-dried as comparing a traffic flag holder to a brain surgeon. The dollar amounts are really just numbers. You ask if I expect someone to go through all the hard work and stress of becoming a brain surgeon for only $27.50 per hour? In the United States right now, I wouldn't expect that. I was just using that as a measure to compare it with the figures you were using either. We're just comparing numbers here. As you say, it takes a lot of hard work to become a surgeon, so I'm not begrudging them any of that.

In essence, I agreed with your basic premise that, due to the surgeon's greater skill and education, they should earn more than the traffic flag holder. Whether that disparity should be 1.83 times higher or 26.67 times higher seems to be where there might be disagreement. What about 10 times higher? Would that be enough to attract enough people to become brain surgeons, or should it be higher?

And what about these "diminishing available slots" you mention? In a country where it's being routinely reported that there are shortages in the medical profession, why on earth would they be intentionally limiting the number of available slots? They should be doing just the opposite and trying to get as many trained doctors and nurses as needed by society. It might be argued that they warrant high salaries because their skills are so rare and in high demand, but as a society, we have to ask ourselves why that's the case? Why aren't there enough skilled people available?

I can't believe it's because there aren't enough people willing or capable of learning it, not in a country where over half of the adult population has a college degree. But as you say, there are only a few slots available, and it's also so prohibitively expensive and takes so many years. That's also something that might be examined. Does it really need to take that long? I've heard some suggestions of fast-tracking and compressing medical education so the medical schools can educate and train doctors in less time.

If you consider your suggestion as remotely plausible, we can leave the discussion here and agree to disagree. :)

ETA: I forgot to highlight that after all that hard work to become a qualified heart or brain surgeon, the job itself entails long hours, the stress of peoples lives on the line, and the continual requirement of study to stay abreast of changes and improvement to the medical field. Much different than that of our flag holder.

There is a saying, "You get what you pay for." I would think about that in this context.

Actually, a traffic flag holder does serve an important public safety function, and it's a job that someone has to do. If that someone is a human being, then the bottom line is that human being has rights. Ultimately, that's what we have to ask ourselves: What kind of society do we want to live in? It's not really about how much money anyone makes, but whether or not we have a genuine desire to adhere to the principles of human rights and the basic idea that every human being has value and worth.

We didn't always believe in such principles, much less practice them. But many people seem to believe that we've evolved and become more enlightened in the modern age. And there is a great deal of truth to that. But there's still a lot more work to do in that department.

My grandfather and a lot of people of his generation went through the Depression and had a pretty strong work ethic. They tended to believe in capitalism - or at least the basic principles of the free market system. But they also believed in the value and dignity of work. They did not countenance those they regarded as "bums" or "lazybones." Everyone had to work, in their minds. But those who did work deserved respect and fair recompense. Even if they're a traffic flag holder.

That's one thing that does bother me about the general attitude which can often be displayed in these kinds of discussions - not so much here on RF, but elsewhere I've seen. It's the idea that people who do menial or unskilled jobs are somehow deserving of scorn, ridicule, or mockery. I'm not saying that you've done anything of the sort, and it's even kind of rare on RF, although sometimes I suspect it might be an unspoken idea bubbling under the surface. I would just see it as further indication that we still have a long ways to go before our civilization can ever claim any real enlightenment. I worry that we might be regressing to some degree.
 

MikeF

Well-Known Member
Premium Member
Sure, but my question was about the specifics: How would you achieve it? You speak of aids. How do you increase the aids right now? Would you increase the taxes? Don't you think a significant ammount of taxes would need to be raised though?

In terms of the US, my first priority would be universal healthcare, a real overhaul, not just cobbling something out of what currently exists. What would be unique in my plan, is that the national healthcare plan would be funded through a national sales tax. In essence, health insurance premiums would be either partially or wholly covered by the sales tax. The idea here is that the sales tax would vary depending on a products health impact. Alcohol and tobacco would have a higher sales tax. Products with added salt and sugar would have a higher sales tax. In this way, if you consume a lot of things that negatively impact your health, then your higher premiums paid through tax would cover that high risk lifestyle. If there is a larger tax on a 2L bottle of soda, but none on a gallon of milk, the health impact of food choices would be captured in the product pricing. If you are a very moderate soda drinker, you are not going to see much difference in you grocery budget. If all you drink is soda, then you are covering the cost of the increase health risks associated with that behavior. Beyond food, there could be a component attached to gas prices to cover health care costs related to nationwide traffic injuries for example. Each years taxes rates would reflect previous years actuarial and epidemiological data.

Minimum wage would be another area to address, but that seems to be going up nationwide now in the US.

The jobs issue would be one of the toughest nuts to crack, and may require permanent depression era work programs to guarantee entry level work opportunities and the ability to build a good work history in disadvantaged communities with high unemployment.

As to housing, perhaps government housing consisting of very small studio apartments that would provide transitional housing for entry level workers that they would eventually transition out of as they gained work experience and skills.

Education would also be a high priority with emphasis on quality preschool programs in poor communities as well as advanced technical training opportunities. Not everyone is suited to going to college nor needs to go to college.

Last, I would make birth control options free of charge. Having children too young or when one is not financially ready can have a tremendous impact on ones financial future.
 

Stevicus

Veteran Member
Staff member
Premium Member
See, I think you can build a consensus around these goals and that these goals are achievable. This can be done regardless of how wealthy the wealthy are. The differential does not matter if these goals are met.

I am not saying that the wealthy should be immune from any taxation. I am more than happy to remove tax laws that unfairly advantage those with established wealth over those who do not. But fairly and appropriately taxing high income individuals is not the same as saying there should be no high income individuals or those with a high net worth.

Then I can see that we are mostly in agreement here. I think the "tax the rich" mantra might be more of a trope or a slogan, not necessarily a concrete proposal. I don't think the issue is just about taxation, though. Government spending is another factor, as well as governmental priorities which are manifested in the spending.

Some conservatives have argued that they agree in principle with the basic idea of giving the common people in society a decent standard of living, but they don't seem to believe that it's really affordable, feasible, or that there are enough resources in the world to make it happen. Plus, with climate change being another issue looming in the backyard, it's almost as if everything we've learned about industrialism these past 200 years was all wrong.

Let's say we want to improve the world's standard of living (a goal I heartily agree with, by the way). Let's say we have the resources to give everyone in the world a basic standard of living comparable to a working class family in the West. This means that they all get some sort of fixed residence - perhaps a house or apartment, with electricity, fixed plumbing, running water. They get a car and a traffic infrastructure on which to drive it. They get air conditioning and heat if needed. They have grocery stores nearby, stocked with the same volume of food as one might see in Western supermarkets. Even Americans of relatively modest means get these things (even that traffic flag holder we were talking about), so why not everyone in the world? Why not make that a goal?

It's obviously not something that can be done overnight, but is it achievable? Could the climate and global eco-system withstand the kind of increases in energy consumption and pollution which would result from spreading the good life of capitalism to the entire world?
 

Heyo

Veteran Member
But it's not really so cut-and-dried as comparing a traffic flag holder to a brain surgeon. The dollar amounts are really just numbers. You ask if I expect someone to go through all the hard work and stress of becoming a brain surgeon for only $27.50 per hour? In the United States right now, I wouldn't expect that. I was just using that as a measure to compare it with the figures you were using either. We're just comparing numbers here. As you say, it takes a lot of hard work to become a surgeon, so I'm not begrudging them any of that.

In essence, I agreed with your basic premise that, due to the surgeon's greater skill and education, they should earn more than the traffic flag holder. Whether that disparity should be 1.83 times higher or 26.67 times higher seems to be where there might be disagreement. What about 10 times higher? Would that be enough to attract enough people to become brain surgeons, or should it be higher?
The traffic flag holder and the brain surgeon are not capitalists. They are both workers on a payroll, just at different skill levels. And even the brain surgeon will only be well off at the end of their career, not truly rich.
The capitalist "makes his money work", as if you could give a dollar bill a shovel. They get dividends, which don't appear in the income tax statistic and are (usually) taxed lower than income. I.e. if you work, you pay more taxes than a capitalist.
So, what are dividends? A corporation, at the end of a fiscal year, has produced revenue. (Well, the workers in the company did that.) This revenue is then distributed to the shareholders. (Not the workers.)
And that is the only way to get rich. While you can only work so much, so hard, so skilled - your money can "work" 24/7 and there is no upper limit how much money you can put to work. There is, however, a lower limit. You have to start with an amount of money, so that at the end of the year, you have more in dividends than the fees you have to pay to your broker. And if you want to get richer than before, your dividends have to be more than what you need for a living.
 

exchemist

Veteran Member
it is not enough for some.
Yes, that is a perennial debate of course.

I think there are also a couple more underlying issues that have not come up.

One is that it has always been traditional, in almost every society since the dawn of time, for the powerful to be seen as having a duty of care towards the powerless. Riches confer power.

Those of us that have grown up in older societies (I am British) are very aware that the wealthy have mostly not got wealthy purely by dint of their own talents and hard work, but at least in part by the luck of birth. In my own case, I had the good fortune to be the son of intellectual parents who valued education - and who had some help with the mortgage on the family house from money inherited from the previous generation. These factors, combined with my own (inherited, by luck) intelligence, got me to a good university, a good job and eventually a clever, industrious, high-flying wife. Et voila, I have been able to retire a fairly wealthy man.

It is part of the (somewhat self-serving) American myth that people generate their own wealth from nothing. In most cases that is untrue. There is a lot of luck, much of it associated with the class into which one is born. That's not to say there are no genuine rags-to-riches cases - of course there are - but when you dig into many wealthy, or comfortably off, people's backgrounds, you find the sort of thing I am describing. In older societies that have, or had, an aristocracy and a landed gentry class, as we have had in Britain, this is well recognised and the more fortunate have by tradition felt an obligation towards the less fortunate. (Christianity of course teaches this too and we are a Christian society by tradition, even if a lot of people no longer subscribe to the religion itself.)

One of the purposes of redistributive taxation is to enshrine this obligation of the wealthier and to limit the natural tendency to conserve wealth within a class, so that one does not make social mobility between classes too difficult.

The other issue is that it is socially unhealthy to have too wide a disparity in wealth. It breeds envy, resentment and lack of respect, fosters crime and corruption and weakens compliance with the law. This is bad for everyone.
 

Stevicus

Veteran Member
Staff member
Premium Member
The traffic flag holder and the brain surgeon are not capitalists. They are both workers on a payroll, just at different skill levels. And even the brain surgeon will only be well off at the end of their career, not truly rich.
The capitalist "makes his money work", as if you could give a dollar bill a shovel. They get dividends, which don't appear in the income tax statistic and are (usually) taxed lower than income. I.e. if you work, you pay more taxes than a capitalist.
So, what are dividends? A corporation, at the end of a fiscal year, has produced revenue. (Well, the workers in the company did that.) This revenue is then distributed to the shareholders. (Not the workers.)
And that is the only way to get rich. While you can only work so much, so hard, so skilled - your money can "work" 24/7 and there is no upper limit how much money you can put to work. There is, however, a lower limit. You have to start with an amount of money, so that at the end of the year, you have more in dividends than the fees you have to pay to your broker. And if you want to get richer than before, your dividends have to be more than what you need for a living.

Yes, these are all good points.

I'm reminded of this line:

Gordon Gekko : The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It's bull****. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now you're not naive enough to think we're living in a democracy, are you buddy? It's the free market. And you're a part of it.
 

wellwisher

Well-Known Member
The success of Capitalism is because it is very similar to evolution and natural selection. Capitalism is modeled on nature. I do not see Liberals being upset when natural selection does not pick everyone. Liberals believe in evolution but do not expect the fittest animals and plants to self amputate and self prune, to give limbs to the mutant plants animals, not selected. However, they want to do it by force for humans, via a wasteful government. That is not how natural selection works. That would make it unnatural selection, which does not align with evolution. Is the Left saying evolution and natural selection are flawed?

What would happen to nature, if we applied these Leftist principles of redistribution and manmade selection to nature? Could we still have evolution, without natural selection? Many humans have tried it, with the result being the commandeered money goes from the naturally selected earners, to those in power, who end up with much of the money, but not due to being earned but taken by force; any third world dictator. The economy collapses such that the lure of poor man greed's; steal from the rich, make the poor worse off. This is partly why there is so much illegal immigration to the USA; in USA the thieves in power are held in check.

The interest on the US national debt, due to the boneheads in Washington, is now about 18% of the budget. That means the tax payers gets a minus 18% rate of return for their hard earned dollars if Government gets it. If we steal from the rich, there is an immediate 18% loss of value for the economy. Do you think these boneheads, who preach tax the rich, are qualified to give good advice, when it comes to tax money management? They cannot even balance a check book. How about we dock their pay; 18%, for anyone who signed onto the National debt? The less money government has, the more the country can evolve; free market is not based on deficits, but GNP growth.
 
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Kenny

Face to face with my Father
Premium Member
There probably are a number of possible factors.

For one, support of capitalism has been ingrained in Americans as patriotic, since the Cold War created a national identity which is capitalistic and virulently anti-communist. So, there's been an underlying fear of being called a "traitor" for not giving 110% support to capitalism.

Secondly, for most of the generations alive today, the U.S. economy and society has been mostly insulated and enjoyed a relatively high standard of living, which many people have been (mendaciously) persuaded into believing that it was due to capitalism.

Related to the second point, even low wage workers believe they get a better deal under capitalism than under socialism. However, what they don't realize that they only get a better deal under American capitalism - something they wouldn't get if they were living under Guatemalan capitalism or Chadian capitalism. (Though I hear German capitalism isn't too bad, as you get better health benefits and more paid time off than Americans get.)

What's really been missing from the current discussion - at least a difference from what I remember from earlier decades - is a strong public voice of support for organized labor. Labor unions still support a capitalist system, and they use their right of free association and freedom of speech to advocate for better wages and working conditions for their workers. This is why support of capitalism has been rather strong among the union rank-and-file (at least traditionally). Liberal support of a strong and robust labor movement was actually quite helpful to capitalism.
Labor Unions are good or at least good when they start. In many cases, the pendulum swings from Capitalism without a heart to Labor Unions with no common sense. Both are good when hearts are good. Both can become bad when hearts are bad.

Actually, support of Capitalism started with the Pilgrims after their attempt at socialism failed.

IMV, the heart of capitalism needs its foundation to be cemented in scriptures:

I went at your bidding, and passed along their thoroughfares of trade. I ascended their mountains and went down their valleys. I visited their manufactories, their commercial markets, and emporiums of trade. I entered their judicial courts and legislative halls. But I sought everywhere in vain for the secret of their success, until I entered the church. It was there, as I listened to the soul-equalizing and soul-elevating principles of the Gospel of Christ, as they fell from Sabbath to Sabbath upon the masses of the people, that I learned why America was great and free, and why France was a slave. Tocqueville.
 
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