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Why the Way in Which Capitalism Creates Winners and Losers is Wrong

metis

aged ecumenical anthropologist
BTW, for those who claim that socialism doesn't work, economists project that China, which has a significantly higher percentage of state-owned/controlled enterprises than the U.S., is likely to pass us up within the next 5 years. Conservatives have been predicting the economic death of China for decades now, so I have to wonder if they know any recipes for crow?

Also, I just gotta add this. When Sweden emerged from and economic in the late 1990's/early 2000's, their former minister of economics was asked how he managed that, and his answer was in two words: "Higher taxes". To one who has studied macro-economics, that can make sense and has in many cases, but to those who only march to the tune of conservative economists that are selling them a bill of goods, this wouldn't make any sense at all.
 

dfnj

Well-Known Member
Restrictions on competition are a feature of the current system. Techdirt. is a great site for following the manipulation of the legal system and government by gigantic industries and the wealthy

See my previous post which agrees with what you are saying.
 

dfnj

Well-Known Member
BTW, for those who claim that socialism doesn't work, economists project that China, which has a significantly higher percentage of state-owned/controlled enterprises than the U.S., is likely to pass us up within the next 5 years. Conservatives have been predicting the economic death of China for decades now, so I have to wonder if they know any recipes for crow?

Also, I just gotta add this. When Sweden emerged from and economic in the late 1990's/early 2000's, their former minister of economics was asked how he managed that, and his answer was in two words: "Higher taxes". To one who has studied macro-economics, that can make sense and has in many cases, but to those who only march to the tune of conservative economists that are selling them a bill of goods, this wouldn't make any sense at all.

I've done a lot of business with China 15 years ago. Companies in China are very different than companies in the US. China is a communist country. It's all about employing the most number of people. CEOs make nothing. Companies do not advertise their "brands" and are not interested in branding. Competition is so fierce everything gets produced with slave wages. And companies openly share trade secrets and designs. I've directly experience ALL of this so don't tell me I don't know what I am talking about.

One more thing, the squat toilets are amazing!
 

exchemist

Veteran Member
Air bags. India produces a car that would sell for around $3000.00 here in the US. But it doesn't have Air Bags.

Another great example is patent law. Patent law creates monopolies. Here's a really good article on how it works:

The Patented Solution for Paying Off the National Debt
OK I see what you mean. The complexity of things like product standards can create barriers to entry to a market, that only a few large companies are able to surmount. Yes I agree, that is obviously true.

But then the problem is one of the trade-offs we make as a society. Do we consider it more beneficial to allow the choice of a cheaper car in which you are more likely to die in a crash, or do we say no, the saving of lives outweighs this, given that there is already a car with an airbag that most US or European citizens can afford? Or, do we force the makers of computers and TVs to comply with electrical safety standards to reduce the chance they electrocute you or set fire to your house? I'm sure China has some very cheap ones, if you are prepared to take the risk......

The issue here, I am convinced, is to do with how much we demand "caveat emptor" from our citizens. To give you one example, when I lived briefly in the US I had to take out a corporate medical insurance plan. This came as a shock, as I am used to the UK's National Health Service. I was appalled to be given a book, almost as fat as a telephone directory, describing a huge vista of unwanted choice; a mass of bewildering options, involving different levels of medical cover at different costs. I had no idea what to do with this, at all! (If you are in the UK and get ill, you go to hospital and they fix you up. That's it. And you pay for that in your income tax.) Fortunately somebody at the company was able to advise me that most people opted for such and such option, so I picked that.

There are many products and services in modern life that are so complex that we cannot be sure we are fully aware of all the trade-offs when we choose. It seems to me that we are happy to rely on government to pre-select for us to some degree, to stop us getting shafted and to save us endless futzing around, checking every damned thing. For that we need regulation and that regulation will inevitably reduce the number of competitors.
 

BSM1

What? Me worry?
I'm not making it up, but I don't feel like being an archivist and digging out old quotes. Without mentioning Little Rascals or Scottish groundskeepers, I'll simply say that it's a commonly used argument by ideological capitalists who attempt to explain why there are such gross disparities between the rich and poor.



This is generally the context in which these discussions occur. It's done in comparison to other systems, which may not necessarily be accurate descriptions of what "the rest of the world" actually is.

I would consider an argument based in jingoism and American exceptionalism, which is all well and good, but then it's no longer an argument extolling the supposed virtues of capitalism. It's just saying that America is great, not capitalism.

Still, one could do relatively well in the rest of the world, too. There are people in socialist countries - even those in authoritarian countries - who work hard, go to school, and make something of themselves. They've gotten rewards and perks for their hard work, just as capitalists might argue about the capitalist system.

The only real difference is that it may not be as luxurious or soft as we've grown accustomed to in America. But that, I think, cuts to the heart of the issue. People don't really need multiple luxury mansions, yachts, or private airplanes. They don't need such HUGE rewards, no matter what they do that makes them think they deserve it. The working class has to take less and pay higher prices just so the fat cats can remain in luxury.

The only thing socialists are really saying is this: Yes, you can earn your rewards for your hard work and ingenuity, but only to a reasonable level. Sure, a doctor can and should earn more than a janitor, but if the doctor takes a little bit less so that the janitor can live relatively better, what is so wrong with that? Why do so many capitalists pop a cork at even the thought of the idea? Don't they have enough money already? Seriously, what is their problem with this? I'd really like an honest answer without a lot of political grandstanding or posturing.

Tell me from your heart, BSM1, what is the problem with giving a little bit more to the poor, even if it means the rich have to take a little bit less? Is the idea of giving fair wages for a fair day's work really so offensive to capitalists that they have to start Cold Wars and go on massive crusades against Communism just to prevent that from happening?





I paid for my keyboard out of my own pocket. As a matter of courtesy, I always thank the store clerks at every transaction, and oftentimes, they thank me. But my view is that, as long they got paid, I owe them nothing more.

But you inferred that Little Rascal and Scottish Groundskeeper types would make a comment that the poor are lazy and poor by their own device. I personally know a few Little Rascal and Scottish Groundskeeper types and I can tell you that this statement is specious at best and a complete fabrication at worse.

Plus you totally missed the point about your keyboard (I may have been a little too subtle, sorry). Some capitalist thought up, designed, constructed, produced, and marketed practically every thing you use on a daily basis. Capitalist drive and competition keeps these items affordable.
 

BSM1

What? Me worry?
Inventing a straw man makes it easier to win an argument....if one
cares more about winning than about honesty & insight into an issue.
There are many interesting ways to manage capitalism to our advantage.
But a rage thread isn't the place to discuss them.

To paraphrase a line out of the movie "Billy Jack": "Jean says I need to control my anger. I try...I really try..". Well if you've watched the movie you know what happens next.
 

BSM1

What? Me worry?
That's true. Hard work has nothing to do with success. If it did, those working in the fields would be millionaires .



The rest of the world is catching up to us very quickly especially China.



Restrictions on competition are a feature of the current system. Techdirt. is a great site for following the manipulation of the legal system and government by gigantic industries and the wealthy



Capitalism is all about profit and short term profit as well as has been noted. Stockholders punish executives who dare to think long term and for the health of the whole. "Tragedy of the commons" is real and the commons is the overall health of the nation.


China? Seriously? You could probably count the successful business people in China on a very, very small abacus.
 

icehorse

......unaffiliated...... anti-dogmatist
Premium Member
But...but...could you please define "unchecked capitalism" for those of us that might not be as enlightened as you?

Oh pul-lease with the "enlightened" jab.

I don't know of a precise definition, but I meant characteristics like:

- capitalists who are allowed to exploit the commons (in various ways):
- paying wages so low that the rest of us have to support their employees
- unsustainably depleting or fouling the environment
- not paying their fair share of taxes

- capitalists who are allowed to manipulate government (e.g. with limitless campaign contributions)
 

sealchan

Well-Known Member
One thing all sides to a debate on the merits of capitalism can on occasion agree to is that "capitalism creates (or at least sorts out) winners and losers".

Proponents and opponents typically cast that principle in different lights, but often agree on that much, if nothing else.

Under capitalism, proponents often argue, the hardest working members of society receive their just reward by achieving prosperity, etc, while those who fail to work as hard in turn get what they deserve -- relative poverty. Thus, it is concluded, capitalism is a fair and just system since it is a system under which people chose what they get.

Now, as anyone who really studies these things knows, that argument is often attacked on the grounds that it is naively based on idealism and ideology, rather than on empirical science, because empirical science tells us that in a capitalist system, the predominant factor in determining where you end up is often enough how wealthy your parents were. And that is especially true in America these days. Any more, hard work doesn't even come close to determining where you end up as does how rich your parents were. That's a common enough criticism of capitalism, but it is NOT the criticism I wish to examine here today.

What I wish to point out is that, even if the proponents of capitalism were correct in assuming that it is a "system under which people chose what they get", pure unregulated and unrestricted capitalism would not be the optimal system for human well-being because it selects "winners and losers" on much too narrow of a basis.

Put as briefly as possible, capitalism does not select for many human traits that most us who are not psychopaths might find it valuable for a social/economic system to promote. Traits such as compassion, kindness, cooperation, generosity, community-mindedness, consideration for the well-being of others, etc.

At best, I think, it is arguable that capitalism does not actually prevent anyone from being those things, or from cultivating those things in themselves. But even there, I think one is on thin ice. For example, the corporation that lays off three thousand workers by offshoring their jobs to a nation with much lower wages and fewer environmental and work regulations is certainly displaying none of those traits -- and yet it is to be praised, by the logic of capitalism, for increasing its economic efficiency by reducing costs and thus increasing its value to shareholders in the form of profits -- to say nothing of the praise it might also deserve for increasing its competitiveness.

In sum, I think the commonsense question to ask whenever some proponent of capitalism claims it is an especially moral system because it picks winners and losers who should or ought to be winners or losers -- the commonsense question to ask is "Moral for whom?"

Pics of kittens? Brief, but poignant accounts of loves lost? Tearful and/or mouth frothing denials that there's even a little truth to the OP? Legitimate questions and/or comments?




______________
Sadly Necessary Footnote: None of the above should be taken as proof that I am anti-capitalist. I am not. I am just anti-unregulated, unrestricted capitalism, such as we seem to have increasingly turned to over the past 40 or more years in America.

Capitalism is a fundamentally amoral system. It doesn't concern itself with moral outcomes only efficiencies and supply and demand. Over that we need social contracts that protect against immorality and short term abuse of common resources as well as ecological/ biological diversity.

Plus a technologically developed nation should be able to gradually provide services as a right with costs shared by all. A spiritually developed nation will be able to use these self-granted rights without significant abuse issues.

Competition is a great motivator...to a certain degree. The rules must be made and kept...no one likes a cheater.
 

Phantasman

Well-Known Member
Without capitalism, you might as well remove "the fruit of ones labor" from the Constitution.

Once laborless people get the fruits of others labors you are socialist. This doesn't include those who cannot work but those that have no drive for opportunities of a better life. The US has more opportunities beckoning each of us everyday. Many just won't heed the call. Poverty level in the US is about $12,100. Many would just struggle with that amount rather than get a job or education making twice (or more) than that amount.

Most of the time it's a psychological rut. One that seems to be fed by "liberal" thought.

A perfect example is the new "per head" tax Seattle placed on it's businesses like Amazon to feed and house the homeless in their city. Basically, Amazon will increase the costs of their nationwide distributed products to offset the extra cost. So basically, the nation will be paying for Seattle's homeless problem. Why should I have to pay for Seattle's problems? Or the rest of the nation have to pay?

There needs to be a better solution than just throwing money at the problem. These people can make money pushing a cart around in a business, than pushing one around dumpster diving. Job placement might be a better solution in these big cities rather than milking the rest of the nation to do their job.
 

metis

aged ecumenical anthropologist
I've directly experience ALL of this so don't tell me I don't know what I am talking about.
I didn't state nor imply that you did, so where did this come from?

China has averaged roughly 10% sustained growth over the last three decades, which is roughly three times higher than here in the States. Does that mean that it is some sort of worker's utopia? Of course not, but it is a fact that their system, as reprehensible as much of it is, does work, which also goes to show that socialism also does work.

BTW, a close friend of mine works there in the area of education, and there are some things she likes and some she doesn't, but she will be coming back to live in the States hopefully sometime next year.
 

metis

aged ecumenical anthropologist
A perfect example is the new "per head" tax Seattle placed on it's businesses like Amazon to feed and house the homeless in their city. Basically, Amazon will increase the costs of their nationwide distributed products to offset the extra cost. So basically, the nation will be paying for Seattle's homeless problem. Why should I have to pay for Seattle's problems? Or the rest of the nation have to pay?
One could say much the same about paying for the military even though they may be pacifists. IOW, it's the price of living in a "society".
 

Phantasman

Well-Known Member
One could say much the same about paying for the military even though they may be pacifists. IOW, it's the price of living in a "society".
Actually, the US governments main role is the protection of our country (system) and it's people from foreign adversaries. This includes a military. The "second amendment" backs it up with a well armed militia.

Article 1 Section 8 provides for Armed Services.

Government Military and Armed Militia are two different entities. The government legally cannot use the military against it's own people. The founders made sure of this with the second amendment. Domestic issues are addressed by the National Guard, which may be made up of former military, but are now militia (Country AND state) .
 

PureX

Veteran Member
Capitalism is a fundamentally amoral system. It doesn't concern itself with moral outcomes only efficiencies and supply and demand. Over that we need social contracts that protect against immorality and short term abuse of common resources as well as ecological/ biological diversity.

Plus a technologically developed nation should be able to gradually provide services as a right with costs shared by all. A spiritually developed nation will be able to use these self-granted rights without significant abuse issues.

Competition is a great motivator...to a certain degree. The rules must be made and kept...no one likes a cheater.
I think the key to human motivation lays in finding and understanding the balance between individual and collective well-being. The problem with the systems we employ, now, is that they depend too much on individuals desires, and well-being, at the cost of the collective society. And as a result we have a few individuals who's greed is bottomless, striving relentlessly to own and control everything and everyone, while the well-being of the many, suffers. And as those individuals gain in wealth and power, everyone else's well-being is decreased.

Competition, it turns out, really is not the motivator that serves us best. In fact, it's the motive that divides us against each other, and thereby destroys the fabric of human society.

Whereas cooperation (not competition), in the service of the well-being of the whole society (not just a few individuals within it) is what will serve everyone most fully, and result in the greater well-being, overall. And it mystifies me that we humans are so persistently unable to grasp this simple logic, and implement it.
 

sealchan

Well-Known Member
I think the key to human motivation lays in finding and understanding the balance between individual and collective well-being. The problem with the systems we employ, now, is that they depend too much on individuals desires, and well-being, at the cost of the collective society. And as a result we have a few individuals who's greed is bottomless, striving relentlessly to own and control everything and everyone, while the well-being of the many, suffers. And as those individuals gain in wealth and power, everyone else's well-being is decreased.

Competition, it turns out, really is not the motivator that serves us best. In fact, it's the motive that divides us against each other, and thereby destroys the fabric of human society.

Whereas cooperation (not competition), in the service of the well-being of the whole society (not just a few individuals within it) is what will serve everyone most fully, and result in the greater well-being, overall. And it mystifies me that we humans are so persistently unable to grasp this simple logic, and implement it.

This is insightful IMO...but it also takes us into the realm of human psychology...underlying such persistent inscrutibles are often psychological considerations...
 

Sanzbir

Well-Known Member
@Sanzibir, as you might be aware. . .

Sunstone, the primary problem with your response to my post is that you are taking my Devil's Advocacy more seriously than I am myself. :p

See, the way I see my own post is somewhat similar to the Taoist Zhuang Tzu's parable of Robber Chih, in which Zhuang Tzu presented Robber Chih as fitting the definition of a virtuous Confucian despite simultaneously being a vicious bandit leader.

So when you say something like:

This is hardly community-mindedness in most people's books.

My only thought is: Of course!! And Robber Chih's generosity is hardly generosity in most people's books, but it is generosity none-the-less.

I'll continue to address this with the same level of irreverence and lacking total seriousness.

Obviously, capitalism promotes a sort of tribalism in which the corporation is one tribe and its competitors are other tribes. If you do not see that, then how is it possible to justify capitalism on the grounds that capitalist businesses ever seek to compete by producing better and better goods and services at lower and lower prices? By what mechanism would they be market driven if they did not need to compete?

See part of the problem here is you seem to think, from what I have underlined above, I have an interest in "justifying capitalism". Which is not my interest. My only interest is in that indulging that Devil's Advocate side of myself that wishes to present the obvious fact that these virtues are promoted in a capitalist society. Try not to approach my words as a defense of capitalism, I'm only trying to take the position here that capitalism promotes the virtues you said it did not. And only that position, since that's the only thing that strikes me as amusing to discuss. :D

Just because capitalism involves competition, doesn't mean that it doesn't also involve cooperation. Inevitably, every society you can come up with will emphasize a mix of cooperation and competition.

But in capitalism, only competition with the people offering the same services as you is a competition you need to have.

And in fact, you need to cooperate with people. The voluntary transaction of goods is quite literally the cornerstone of the entire economic theory. You need to cooperate with a person to make a trade or deal. Cooperation, not competition, is the very cornerstone of the system.

And it's not purely tribalistic in the sense of inter-company cooperation. You need to cooperate with as many people as possible to sell as many things as possible. You need to cooperate with the outgroup consumers to make any money. :D

So of course a capitalist society must by necessity value this trait. :p

You are using "consideration" here in a limited case scenario.

You are doing the same. :D Everyone does, I suspect.

Where is the "consideration" when an unregulated or poorly regulated capitalist business discoverers it can reduced costs by dumping industrial waste into a nearby river relied on by hundreds of thousands of people downstream of it for their drinking water?

Well they're going out of business as soon as that story breaks, so they aren't very good capitalists.

One would think that would be a violation of the people downriver's property rights, so under a capitalist system, this theoretical company has violated the capitalist values of private property.

Where is the "consideration" when a capitalist business discovers it can increase shareholder value by offshoring legions of jobs to China?

What are ya, some kinda bigot? :p

This theoretical business goes out of its way to provide jobs for hardworking Chinese people, and you think it's a bad thing?

Why? Because some Americans could have those jobs instead?

So you're saying that Americans should get jobs before Chinese?

That sounds like you're the one lacking consideration of others to me. :p :p :p

It also sounds like you're the tribalistic one here to me. :D

Among other things (see above), I would hardly call a conscious attempt to build one's customer base through a bit of insincere solicitude to be evidence of genuine compassion and/or kindness.

Well in that argumentation one could argue that no compassion is genuine compassion or kindness.

You can see plenty of edgelords on the interwebs making just that same argument you are making to assert there is no "genuine" compassion or kindness.

So I see no reason to repeat their arguments here.

Again, see above. What corporation, for instance, is going to go out of business rather than ship jobs out of a community and to a foreign country if their finances require it?

Into a different community??

What are you saying?? "Oh no, poor brown people have jobs now when we could have proper white Americans benefiting instead!!" Why are Indian communities less valuable in your eyes than American ones??

Now I know that's not what you're saying, don't worry.

But it sounds a little silly to me that you ask me to treat privileged Westerners as somehow more innately deserving of jobs than the less fortunate citizens of the world who, frankly, need those jobs more than you people living in privileged wellfare states do. :p

It's basically just blind tribalism. I wonder if you can see the innate silliness in people who make the argument that people in other countries somehow don't deserve jobs. :D

To add to that, what business if faced with a competitor that can produce their goods at a quarter of their cost by shipping jobs to China does not at least seriously consider shipping their own jobs to China? And is even seriously considering such a thing "generosity"?

Seriously, why are you soooo racist against the Chinese?? What did they ever do to you?? :D :D :D

Why is providing employment to 'Muricans generous but providing employment to Chinese not so??

I know you probably aren't actually racist, but this idea that "giving jobs only to Americans" is somehow a position of compassion and generosity is flat-out ridiculous and humorous to me.

No, it's not. Your position is blind tribalistic nativism. Compassion, generosity, and kindness, only to the in-group nation, and denying those things to foreigners. Sorry, but I don't view what you describe as genuine compassion. :p
 

Shadow Wolf

Certified People sTabber & Business Owner
Actually, the US governments main role is the protection of our country (system) and it's people from foreign adversaries.
From the preamble of the US Constitution:
We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
Notice, if you will, that providing for a common defense is not the only objective listed.
 

Twilight Hue

Twilight, not bright nor dark, good nor bad.
I think one of the contentions is some people are born with clear advantages that others cannot access in their lifetime if ever

If you're born in a rich and or influential family, it's likely you're going to be rich and or influential when you die, if not even in a more advantageous position. There clearly will be better access to products and services like education, availability of work, granted positions of power or influence, whether it be through government or corporate affiliations.

One could say some people are born into success well others have to fight and claw their way if they ever can even make it.
 

Phantasman

Well-Known Member
From the preamble of the US Constitution:

Notice, if you will, that providing for a common defense is not the only objective listed.
Funny how it doesn't list illegal entry as a citizen, but ourselves and our offspring.

"We the people of the United States" has been redefined by progressives to include anyone standing on the land.
 
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