In the complete absence of a state, I don't think currency would function as it does. — fdrake
Currency certainly would not function as it does now, in the world of central banks, fiat currencies and periodic financial crises. But this does not imply that it would not work
simpliciter. Legal tender laws exist for the purpose of extracting taxation, and are totally unnecessary beyond this. Good monies are good monies precisely because they exemplify properties which make them marketable as monies (divisibility, portability, and so on); there does not need to be (and should not be) a law which compels people to settle debts in any kind of currency in particular.
In these kinds of discussions, there always seems to be the assumption that the way goods and services are provided under Statism is the ‘correct’ way, and the burden is on the free-marketeer (who, I believe, ought also to be an anti-Statist, as I am) to answer the challenge of how they would hope to ‘match’ the State’s performance. But why think this way? In fact, the State is truly miserable in all that it does. There is just no reason to think that an association of persons who have a monopoly on force are going to provide any service remotely competently.
The historical record weighs quite heavily against this; economies that rely on currencies have (always to my knowledge) regulative bodies (states/governments/social institutions) that deal with the currency and the legal structure surrounding production, property rights and individual rights. While this doesn't make it impossible that a market cannot operate without a state, it makes it implausible that such coincidences of markets will not occur. — fdrake
With respect, I don’t think this argument amounts to much. The mere fact that currency-based markets have (always or nearly) always been Statist societies does not imply that a currency-based market is dependent upon a State. In fact, the history of money is a history of depreciation, as governments have involved themselves more and more in monetary systems. See Murray Rothbard,
What Has Government Done to Our Money? https://cdn.mises.org/What%20Has%20Government%20Done%20to%20Our%20Money_3.pdf
When you envision extraction rights as bestowed by the state, and that extraction rights in your stateless imaginings do not have exclusive ownership, what do you imagine actually happens? Two oil companies have equal designs on an oil field, the oil field is public property; the transition from public property to making private property on it (granting access rights) ultimately is consistent with the laws of the state (in ideal circumstances), but without that transition; it could only be private property. The two oil companies both really want it, what happens? — fdrake
What happens is ultimately determined by whose property the oil field is. If the oil field belongs to one of the oil companies, then that company may extract oil from it, and sell it, without anyone’s permission. If the field is owned by someone else, then they may choose to grant the oil company permission to extract oil, for a price, or it may choose not to. If the field is owned by a community of persons, then the field’s fate is determined collectively by the co-owners. None of this requires the instrumentality of the State.
Another thing you are eliding is a market's natural tendency towards the concentration of wealth and power. If a business succeeds, it gets more money, if it gets more money, it gets easier to make more money; to employ workers and buy infrastructure to capitalise on investments, to use its money as leverage in lobbying, bribery and lawmaking. — fdrake
It is true that a successful company (that is, one which has satisfied consumer preferences successfully) now has more money than its competitors. This money then allows it to make still more money, but only by continually satisfying consumers. To invade this process, however benevolently, is ultimately a paternalistic act, for the effect is to deny consumers goods and services which they would otherwise have voluntarily purchased. You are correct that this accrued capital may then be used for corrupt ends, which serve to entrench its privileged position through lobbying and law-making. But it seems to me that it is precisely the State which presents these opportunities, and which makes them profitable.
Just as with patents and franchises, these are government-granted privileges. If the problem is that these firms have excessive political influence, then the surest antidote is surely the abolition of the very institution which they use as their instrument for such! In the minds of many, the answer to corporate corruption is to afford even more power to the State, but this is a movement in precisely the wrong direction. The reason why private firms and the State have the kind of corrupt relationship they do – and this relationship is one of which you are clearly aware – is because it is so profitable for both of them. Affording more power to the State is not going to change the incentive structure. As long as the State exists, those who are most able to benefit from it are going to continue to do so.
You artificially limit the operation of power by constraining it to violating a property right! — fdrake
There is a rationale for this, though it takes us rather far afield, as it leads into a positive defence of libertarian anarchism, which is not what I intended to do here. Fundamentally, all rights are really just property rights; to engage in any activity in particular is just to make use of certain scarce resources in such a way that deprives others of their full use. A full philosophical justification for this commitment would take excessive space, but the best defence of this idea may be found in Hillel Steiner,
An Essay on Rights, or his shorter article, ‘The Structure of a Set of Compossible Rights’. A less rigorous but more accessible defence may be found in Murray Rothbard,
The Ethics of Liberty, ch. 15:
https://cdn.mises.org/The%20Ethics%20of%20Liberty%2020191108.pdf
This thesis is one which I consider to be very much in keeping with old liberalism, which saw a close connection between the exercise of individual liberty and private property rights. If I am right about this, and I believe it is right, then the power structures we see in firms are entirely justified, because they are the product of peaceful, consensual relations between persons, exercising their right of ownership over their resources and over their own selves. The obligations which are placed on employees are voluntarily assumed; they undertake obligations in return for their wage, to which they are not entitled otherwise, and they are better off having entered into the arrangement than not. The power structures are justified, in other words, because firms are not essentially coercive institutions.
An aside: in terms of basic necessities, most resources are not scarce now. — fdrake
I am using ‘scarce’ in the sense in which economists use the term. ‘Scarce’ does not mean ‘short’ or ‘not plentiful’. They are merely rationing phenomena. Rather, ‘scarcity’ is concerned with the capacity of a good to satisfy human wants. Suppose there is a resource, which is such that it may be exploited endlessly by as many people as you care to stipulate, without exhausting it. This would be a non-scarce resource. ‘Ideas’ would be an example of such. Unfortunately, the vast majority of goods are scarce. Everything (as far as I can think of) that occupies a physical location is scarce. There may well be enough productive power to feed the world twice over, but this does not render food non-scarce; the resource ‘food’ is not such that everybody may consume as much of it as they like, without depriving anybody else, or their future selves, from doing the same. The reason is that food is the result of production, and the production process itself involves the use of scarce resources, including time and labour. A resource does not become non-scarce merely because there is enough going around.
Markets in this regard create a global situation of artificial scarcity. — fdrake
‘Artificial scarcity’ also has a precise technical definition, and I don’t believe you are using it accurately. A resource is ‘artificially scarce’ if it is non-rivalrous and excludable. This means that my exploiting the resource does not deprive anybody else from exploiting it, and yet it is still possible to prevent people from having access to it. Examples would be pay-for-view television, cosmetic ‘skins’ for video game characters, software updates, etc. Once the technology is in place to make it available to one person, it can be made available to all people boundlessly, with no additional investment. Food and housing, however, do not satisfy the definition of artificial scarcity. They are just scarce in the ordinary sense (which, as I mentioned, does not mean that there is not enough going around).
Take the example of a law. Establishing a law of a country is not a predication of the aggregate on the basis of its individuals, it is an intervention which may only ever be applied to an aggregate of people; citizens, immigrants, business owners etc. IE with a logical gloss, is a relation of an aggregate to another aggregate, and can only be thought in those terms. Most of our "rights and freedoms", even constitutional ones, apply to denizens of a country in the aggregate. Person of type X has status Y (citizen has this rights, Schengen zone passport member can do this... Firm must do this...).
When someone changes or introduces a law, it affects the aggregate. If someone changes the corporate tax rate in a country, it effects firms, then it effects people. The causal arrows go law change -> firm change -> individual change. You simply can't interpret this kind of thing without appealing to emergent properties of aggregates, and the ability of aggregates to act on aggregates. — fdrake
Laws are essentially threats, threats of incarceration or worse, issued by human associations. Rights and freedoms are proper to persons, for persons are the agents of action. There’s no doubt about the fact that events can occur which affect many people, and it may affect them in virtue of a common, unifying characteristic, like being citizens of a country or members of a corporation. But that does not mean that there is a kind of emergent entity which hovers over the world of persons, with a mind and purposes and an agency of its own. There is no such thing as that.
Check this paper out for a thorough demonstration that aggregate properties (macro behaviour/macroeconomic properties) are relatively insensitive to broad classes of individual behaviour (read: microeconomics underdetermines macroeconomics). Emergence in general is a thing. — fdrake
I am not taking issue with the fact that it might sometimes be appropriate to engage in macro-level analysis. But I am not talking about methodology here, I am talking about ontology. Collective action designates the reality that individuals may act in concert with one another, towards some common end. It does not mean that there is a subsistent entity, such as you and I are, called a ‘collective’, which acts by the power of its own agency. That is poetry only.
In similar vocabulary to what you used, interacting parts can have wholes which have properties (and activities) which those parts don't have. Gas molecules don't have pressure. Only aggregates of gas molecules do. Gas molecules don't have temperatures; only aggregates of gas molecules do. — fdrake
That’s fine. To be sure, there are things that are proper to a part that are not proper to the whole, and vice versa. My heart pumps blood around my body, I do not. I stand in a field, my heart does not. The problem is that the kinds of things that are predicated of a human collective are not proper to it, but are really proper to individuals. Any kind of purposeful action, desire, intent, any kind of activity or psychological state at all, are predicated of a collective improperly, because they are proper to persons, and collectives are not persons. ‘The country is in mourning’, etc.
I think you parsed the example I gave as an emotional appeal, which it was in part, but it shows that the interests of the company can greatly diverge from the interests of their workers. — fdrake
But the interests coincided with the interests of consumers. Who decides what makes money, and what doesn’t? Consumers decide. If a less profitable business closes and is replaced with one that is more profitable, this is only because the latter more effectively satisfies a consumer’s wants. The firm exists to make money, and it does this most effectively when it is most effective at satisfying consumers. Why
should the interests of the workers be paramount? Why
should that trump all other considerations? A worker may feel dissatisfied with his job, but he is certainly better off for bread and milk being as cheap as they are. As a consumer, he wants things to be as cheap as possible. But we cannot have it both ways. The fact that they are cheap is owing the very same market processes which have seen him hired, and which have placed him in the conditions in which he works. There is nothing stopping 'ethical' businesses from cropping up organically, which pay their workers a living wage, see to it that they are placed in adequate working conditions, etc.; nothing, that is, except the consumer. If only the consumer were prepared to pay more, such that 'ethical' businesses were profitable, then there would be no impediment to their existing. But that is not what the consumer wants (I would be delighted to be proved wrong about this).
This is before you start to consider so called "externalities" like climate change and tobacco's influence on health. Stakeholders often care very much about things like having breathable air (choking smogs in industrial London or the current ones in Beijing), knowing whether their purchases are slowly killing them and a living wage, ability to spend a lot of time with their families. Firms don't always (read: usually have to be forced tooth and nail to) care about these things, and sometimes benefit from the immiseration of their workers. If there's no social safety net, firing creates destitution, which makes the uh... labour market very liquid, eh? In these circumstances, it doesn't matter so much how you treat your workers because you'll find someone who will do the work because they need to.
"Work here in terrible conditions or have your family starve" is not in any worker's interests. A rational utility maximiser (being tongue in cheek; we don't behave like that at all) would organise with their co workers and make a union, funny that these get beaten down and undermined as much as possible. "Have a global climate and production policy that non-negligibly risks ecological and humanitarian catastrophes" is in no one's best interests; no stakeholder's. But for the firms who profit from such replaceable labour or by maximising their short term profit rates? Yeah, works for them. — fdrake
Forgive me, I’m still struggling to tease an argument out of all this. There is so much packed in here. Governments produce their own externality problems, some of which I talk about in my other discussion, and which David Friedman discusses here:
https://www.youtube.com/watch?v=Bpn645huKUg&t=1112s
In a Stateless society, workers would be perfectly within their rights to unionise. Indeed, voluntary collectives would be commonplace, as they were before the State became involved in the provision of Welfare:
https://www.youtube.com/watch?v=jug_AcVjeAM
It just doesn’t ring true that firms are coercive institutions because they tell their workers that they must ‘work or starve’. When a State demands ‘your money or your freedom’, as it does when it taxes you, the State itself is the source of this destructive dilemma. The threat of having to hand over your property is provided by the State, and the threat of incarceration (or worse) is provided by the State, too. The State is precisely an invader of the lives and the property of their citizens (and, when it wages wars, the citizens of other countries as well). They are functionally indistinguishable from a protection racket in this respect (which do actually provide you with the service of protection). This is categorically different from being faced with the dilemma of working or starving. As you correctly point out, we must work in order to eat. One might say ‘I should not have to work in order to feed myself’, but obviously this is impossible to universalise, since at least somebody must work, or else everybody starves. The fact that you must engage in resource-gathering in order to survive is simply a fact of nature; firms are not the source of this ‘threat’. So, when the firm offers you the means of employment, which you would not have had otherwise, it is quite skewed to understand this as the firm providing you with a destructive dilemma. They are offering you a means of escape from starvation (indeed, the most effective means that the world has ever known).