And the motivation behind arbitrarily increasing the cost is irrelevant. — Kenshi
If the motivation is not arbitrary, then the action is not arbitrary. You can just say "increasing the cost decreased motivation to buy". The only reason to add "arbitrary" is to try to avoid saying "for the purpose of internalizing the true cost to society". It is not just semantics.
Do you agree that increasing the cost of cigarettes internalizes the true cost to society in the cost paid for the product? Do you agree that this is a good policy to follow with cigarettes as well as any other product? Why or why not?
Capitalism is about the "free" exchange of goods and services. Capitalists often call for less government control of the market for exactly the things that you mention. There's a reason that the practices you talk about are known as "Crony Capitalism", because everyone knows that those are examples of capitalism being exploited, not implemented. — Kenshi
Yes, I mention in my post that there are two definitions of capitalism used by the proponents of capitalism: hypothetical "free markets" is one definition and "the US / Western system as it is today" is another definition. These definitions are of course not referring to the same thing.
For instance, when you say "Nearly every instance of the elimination of poverty has been the result of Free-Market Capitalism" you are clearly referring to systems that actually have and do exist.
If capitalists can use their money to pass laws to make "crony-capitalism" legal; how is this "exploiting capitalism". They've used their capital to make more capital, what's the problem vis-a-vis capitalism. Should constraints be placed on people who control large stores of capital to convert part of their capital into influence that legalizes and promotes "crony capitalism"? What should these constraints be? If there shouldn't be constraints as people should be "free to use their money as they way" and this leads to the crony capitalism being amplified, entrenched and a positive feedback loop of using crony capitalism to get generate more capital to generate more crony capitalism, how then should this problem be solved?
When you say "practices you talk about are known as 'Crony Capitalism', because everyone knows that those are examples of capitalism being exploited, not implemented" does this include the politicians implementing crony-capitalism into law and the lobby groups promoting to the public these crony capitalists laws are actually good or freedom or whatever? If these people know they are exploiting capitalism for their own benefit, how does this contradict the motivation to make as much profit as possible? Is anyone in the wrong? If not, presumably it's up to the people to stop them, but it f there is no economic benefit to engage as a citizen in politics as the effort to vote does not equate with the likelihood of affecting the outcome (free rider problem), then how are people who don't engage in politics in the wrong for likewise following their own interest?
Many, MANY more black people came to this country voluntarily than they ever did as slaves. — Kenshi
What are the numbers here? "Many, MANY" seems to me like orders of magnitude, what do you mean by this in terms of numbers?
Only 2-8% of whites owned slaves when it was legal, and there's no way that anywhere close to the majority of whites are descended from slave owners, nor blacks descended from slaves. — Kenshi
I did not say "all whites" nor a majority of whites, I said the descendants of slave owners that benefit from capital accumulated during the slavery. Is it fair they keep the benefits of slavery? To start, only even in principle. If it's fair, was slavery just and simply capitalism at work (free folk using their labour to kidnap people and use them as slaves)? If it wasn't fair nor capitalism at work, should the stocks of capital that resulted from slavery that still exist today that are used to extract rents, an example of capitalism working? My question here is not whether there is a practical method of separating slave-derived capital from other forms of capital, my question is one of principle of whether such stocks of capital are fair or not? Would such capital come from "'free' exchange of goods and service" which you claim capitalism is and so it seems to follow all stocks of capital are examples of the result of "'free' exchange of goods and services", does this include the capital that resulted from slavery? Or does capitalism not include all forms of capital. If not, please explain.
I say that the system is fair because good life choices are the biggest deciding factor in long term wealth, not race/color. The poverty rate of black married couples is 7%, the poverty rate of white single parents is over 20%. The Brookings Institution (a Liberal think-tank) found that American citizens that graduated high school, didn't have children before marriage and worked full time almost never wound up in poverty, and given the number of ways that one can ruin themselves financially, there's no reason to immediately assume that the remainder were poor because of some kind of bias. Also, "good responses"? I really hope that doesn't mean what I think it means. Also, "racism"? I'm black, so is my grandmother who grew up incredibly poor, and despite being a single mother of 2, she went to college on a loan, got her degree and worked her way up to a 6-figure salary, a 3-bedroom house and 2 cars. Living proof of what I'm talking about. (It's just an example, I'm not claiming that anecdotal evidence is finalizing) — Kenshi
I don't see what your point here is and I don't think you understood my argument.
If there are no structural reasons that "especially black teenagers can't find jobs"; i.e. if there are no processes in society that have disadvantaged black teenagers, that the only variable is that they are black and they can't get a job because they are not willing to work for low wages; then the only variable left is that they are black. If the only variable is that they are black, then they are poor in a fair system because they are black and because the system is fair it must be that black people are less capable.
To remind you of your words, you say "Regardless of how big a company gets, it's never worth it to pay someone say, $12/hour when their productivity earns you something like $10/hour." and you follow from this premise with the conclusion that "That's the reason that teenagers, black teenagers in particular, have so much trouble getting jobs."
The premise is true for all people, but you say it's particularly true for black teenagers. If there isn't some unfair structures within society built up over time to disadvantage black teenagers (that the system isn't fair), then your argument is it's particularly hard for black teenagers to get a job because they are black. You have no other variables in your argument and you seem to be saying the system is fair, so again, how is this not vanilla racism to attribute the cause of black "under performance" to the variable of being black?
What would "good responses" mean in this context other than solid arguments that address my questions? I don't see this or any of your response addresses my questions.
5: No, it's not a recent phenomena, it's just of particular concern to people today. Automation is on the whole, a good thing considering all of the affordable luxuries we now have as opposed to people of the same, or in many cases even greater economic strata, say a century ago. Plus, even with all of the automation and outsourcing that has and does occur, the vast majority of us are still employed. Even if you think that automation is entirely bad, you're only making it worse by arbitrarily raising the cost of labor. — Kenshi
I don't view automation as bad. I was simply pointing out that the "socialist" issue around automation is who gets all the benefits, who owns capital (the means of producing things); socialism has no problem with automation.
To provide food for though, a lot (most) of fundamental R&D is paid by the state because it is too early stage and too high risk for investors to finance. In other words, workers through their taxes fund a large part of the R&D that results ultimately in new automation that replaces their jobs; yet, the worker that is replaced doesn't benefit in this scenario. Should the state not fund R&D with people's taxes? Should part of the value produced by automation be redistributed back to the worker who's taxes helped create it (for instance, through things like re-training, health-care, general safety net while finding a new job)?
6: I wouldn't say that those things don't help the poor. I just think that the market is a more powerful tool to solve the problems associated with those institutions than the state. Also, I think it's disingenuous to say that something is good because it's free. In England, you are far more likely to die during a hospital visit, forcing universal health care on people was deemed a human rights violation by the Canadian Supreme Court, etc. — Kenshi
I'm no sure you understand what your words "Nearly every instance of the elimination of poverty has been the result of Free-Market Capitalism" mean. By saying "nearly every instance" is due to X, this implies it's a very small part that is due to not-X.
I am glad you have revised your position, and agree that universal health care and free education help the poor. However, please explain how a free market is a more powerful tool to provide education and healthcare or that going without these things is a counter-intuitive help to the poor. Also, in the case of education, please keep in mind a "voucher system" is still public funded education; I
The Prime Minister of Denmark openly said to stop pointing to them as a beacon of socialist success. "Denmark is FAR from a socialist planned economy. Denmark is a MARKET economy", he said. — Kenshi
have zero problem in principle with a voucher system, if it is the same voucher for all students it is public-funded-education and fair (whether vouchers and which kind of voucher system and if and what kind of quality control is needed, is more effective than public school boards, is a different subject). Free-market education is not public funded voucher system, but children only getting education that they or their parents can afford, and someone not being able to pay for something means not getting that something.
I said "nearly". Even so, China is a free trade GIANT. — Kenshi
Yes, I agree China is a free trade giant, is this a good example of capitalism? You seem to equate capitalism with free trade, so is communist China a good example of capitalism and the wealth the communist party has accumulated a good example of capitalism at work?
They also only really lift people up when they display excellence of some kind and greatly impose on the freedoms of such ones. — Kenshi
I'm not sure what this means, but I understand that you admire parts of the Chinese communist party system? Or no?
My support of Capitalism is really more about freedom than anything else. Even though China is rich, it's not free. So no, I don't think the citizens of China are well off, but it has nothing to do with Capitalism. — Kenshi
How does this follow from China being a free trade giant due to integration with the global capital system? Since you agree that the Chinese are not better off because they are not more free (we agree here), how is capitalism not involved if the wealth and power of the communist dictatorship is due to integration with free markets? Is the global free market system not an example of capitalism?
In regards to the Scandinavian countries, Sweden is probably the most successful and they have VERY low tax rates on big businesses and the wealthy, it's the middle and lower classes that are funding their welfare state. — Kenshi
But above you said that a free market system is more effective than universal health care and free education. If Sweden is a success, did they achieve this despite inefficient well fair state policies or because of them?
It's not clear what your position is on universal health care and free education.
The Prime Minister of Denmark openly said to stop pointing to them as a beacon of socialist success. "Denmark is FAR from a socialist planned economy. Denmark is a MARKET economy", he said. — Kenshi
Yes, Scandinavia is a market economy, but not anything close to a free market economy. The Scandinavian countries have a social democratic system with a strong well fair state. There are a lot of environmental regulations, there are strong unions, there is free education at all levels, free money for the poor and various poverty programs, there is universal health care, there are tax and tariff systems that seek to internalize the true cost of products.
Do you view all these policies as example of well run free market system? If not, how does this square with your view that these countries are a "success"?
The U.S. has the largest defense budget in the world and spends more than the next 26 highest spending countries combined. This is because the U.S. has a vested interest in keeping as many countries free and trading as possible, because that keeps the country rich. Most of the free world benefits from this, ESPECIALLY the smaller European countries. At the end of the day, all of the Scandinavian countries employ Capitalism just to stay afloat, and in some ways are MORE Capitalist that we are. — Kenshi
I'm not sure how this argument follows. How are the Scandinavian countries "more Capitalist"? Also, keep in mind that Finland has conscription and is not part of NATO, and so has hundreds of thousands of reservists; Sweden too has conscription (we Finn's just don't take them seriously).
They don't even have a minimum wage. Every time I've tried to find it, I'm given graphs of "average earnings", not minimum. They understand that the rich are the ones stimulating their economy and that without them, the whole thing would crash and burn. — Kenshi
I'm not sure about the other Scandinavian countries, but in Finland it is true there is no mandated minimum wage across all industries. However, there is a law that if unions representing 50% of an industry come to an agreement with their counter-party employers on a minimum wage, this minimum becomes law for the whole industry; i.e. smaller unions or non-unionized businesses cannot undercut the large unions. It is basically the extreme opposite of right-to-work laws. Is this Finnish approach to minimum wage a good example of "more capitalism" in the sense of free trade based on personal value? Why or why not?
I'd just like to conclude by saying that you are very well spoken and intellectually challenging, which I greatly appreciate. I get the feeling that neither of us is going to budge on this, but I appreciate you forcing me to try rationalizing my positions. I hope we can both agree that we both want what's best for our poor and just don't see eye-to-eye on the solution to poverty, rather than assuming malicious intent of the other. Cheers! — Kenshi
I have not assumed any malicious intent, so please be at ease. Where I am unsure of your position I have asked for clarification. I appreciate you reading and responding to my post. I think it is premature to assume no one will budge. I have moved a lot on all these issues over the years.
However, when you say that the debate has "helped you rationalize your positions", it is an interesting phrasing. One interpretation is that you already decided your on your conclusions even if you had no good reason to at the time, and now generating reasons backwards from your conclusions. Another interpretation is that you have strong intuitions that require more work to articulate. Perhaps a combination of both. Maybe worth thinking about.