Posts Tagged ‘neoliberalism’

Robert Reich is wrong about Trump

June 13, 2023

In his article in todays Guardian, There will be no Civil War over Trump Mr Reich makes the classic intellectual error that people do things for clear reasons, and with good understandings. And thus they will not generate war over Trump. This proposition is simply not true. People do things for non-rational reasons; feelings of disquiet, distrust, disgust, misery, not having a vision of a beneficial future, ‘knowing’ stuff at an emotional level which they cannot express and so on.

Trump appeals to this knowing, and his inarticulateness and personal grievance, make him appear to be one of those people who, like us all, share grievances and cannot express them. People can relate to Trump, and he allows them to displace their grievance onto the State and the Democrat/Liberal ‘humanist’ elites, and distract them from the real cause of their misery. And as the State is part of the problem, it no longer appears to stand for the people, it is not a completely false target.

Most people in the English speaking world have experienced over 40 years of neoliberal policies (promoted by media, politicians and corporately sponsored think-tanks), in which corporate power has been protected from democracy, wages have stagnated or declined, working conditions have declined, social welfare and social security have become punitive and inadequate, bosses have gained arbitrary power, wealth has been siphoned off to the already hyper-rich, wealth inequality has increased along with political inequality. People’s futures have been taken over by crisis and the realisation that their children and grandchildren and not going to have it good. Community co-operation appears to be breaking down. There are apparent threats everywhere, increased violence, political corruption, corporate corruption, climate change, ecological destruction, pollution, irresponsive government, friction between social groups. Disorder seems to be increasing, and there is little attempt to put in a new order which benefits most people.

The problem people face is neoliberalism, corporate dominance and wealth syphoning. The State is part of this problem, because it has enabled all this to happen through its overt support of neoliberalism, and coporate power.This is a story which ‘the left’ does not seem to want to tell, because it (just like ‘the right’) depends on corporate donations, and fears organisations of corporate bodies, like the ‘minerals council of Australia’ or whatever, which have the huge monetary resources to make that attack count. The Media largely does not want to tell the story, because it is owned by corporations and billionaires, and depends on corporations buying advertising space. The right does not want to talk about it, because it is their fundamental policy.

Hence we have a stressed out working and middle class, who are risking descent into poverty all the time. Nobody is giving them a real explanation of their problens, or a set of policies which deal with the problems or can get traction without the promoters risking political death from corporate backlash. Trump voters know something is wrong. They know the system is not working. Trump, for all his faults, acknowledges this loss. ‘Make America Great Again’, expresses a feeling that it is possible to restore previous plenty, and this is welcomed by people. Sure Trump has few policies, and those policies almost certainly do not benefit the people who vote for him, but that is not the point. He is showing awareness and concern for the problem. He, and the Republican establishment, are generating scapegoats for the real issues, to explain why things are not better: as if drag queens, tran-sexuals and people worried about racial discrimination are responsible for economic decline and loss of futures. These people are made to symbolise all that is wrong, without threatening the market-elites, so supporting Trump seems secure to those market elites. Trump seems funded by his supporters, to an extent which seems unusual in modern politics and shows his appeal, and he is funded by the rich-elites.

In a way Trump is perfectly correct, people might need to join in a “final battle” for America -“These people don’t stop and they’re bad and we have to get rid of them. These criminals cannot be rewarded. They must be defeated.” The problem is that the people Trump wants to fight are often not America’s problem, they are just scapegoats, or people who point out that Trump is the criminal. It is as Reich says…. “a final battle over … himself,” but Trump is no longer just a corrupt politician, he has become a symbol for fears and aspirations which are real, no matter how fake he is.

As Reich reports, Trump has mainstream Republicans supporing violence to defend him. For some reason Reich decides this unimportant, rather than an indication of how Republicans are bound up with Trump and protecting Trump, and violence against Trump’s ‘enemies’.

There are many more posts on Twitter which incline more to violence than these, because people have been convinced that Trump is innocent, that the Department of Justice and the FBI are weaponsed against all ‘conservatives’, that the whole thing is an attempt to distract from Biden’s corruption, that Trump is the only honest politician and that he will smash the corruption (something also being said by Trump), that revenge is necessary on those who are really corrupt, and so on. It is endless. There seems to be a real fury out there – and it is absurd to pretend people are not being stoked for war. That may not mean war is inevitable, but the possibility is there, and little can stop it – certainly Trump being convicted is not going to stop it, whatever the evidence against him.

According to a CBS poll 76% of Republican voters think the charges are politically motivated, 61% think the charges won’t change their views about Trump, 14% changed their views for the better. 80% think that even if Trump is convicted he should be able to be President. If Trump could not run, then 74% of Republican voters want someone like Trump. 45% thought it important to punish the Democrats.

Oddly the more Trump is attacked, and shown to be criminal, the more he can be seen to be one of the masses, victimised by the powers that be. He can’t be guilty any more than ‘we’ are guilty for what is happening to us, and if he is guilty what hope is left? The rationale that the current charges he faces seem justified is completely irrelevant to Trump’s supporters. These charges are another fake, another step in the battle to keep them down.

The more that the left attacks Trump’s followers as stupid ill-educated morons (which is really common), then the more they fall into the Republican Trap, because they make it seem clear that ‘Democrat elites’ have nothing but contempt for working and middle class people, and therefore, as Republicans allege, are generating the problem. Democrats are not acknowledging the real problems people face, or their feelings as valid.

If this continues, there is no reason not to expect violence and highly disruptive violence. It may not be organised. It may be sporadic, but it will happen.

Modern weaponry means that a few well organised people can do significant amounts of damage, and protect themselves through generating fear and images of heroism.

As long as the violence is against Democrats or scapegoated outsiders, then Republicans will support it, or not object….. The violence can be repressed, which will generate more violence as more people get caught in the hunt to suppress, or the violence will be met by a violent oppositional response. What level of continued violence counts as civil war is irrelevant, what matters is using violence to promote and protect Trump and allow him to create a state of terror.

If Democrats don’t put forward a coherent world view as to what is wrong, acknowledge that wrong, acknowledge the real grievances of Trump voters, and put forward plausible solutions, then Trump will win. People seem not to appreciate that his vote increased in the last election, with people’s experience of him still fresh. It is simply optimism to think his base is moving away, that Biden will win without effort, and that there is no possibility of continuing political violence.

Against Libertarians and Neo-liberals again

November 13, 2022

There are significant problems with modern formulations of ‘free markets’ by libertarians and neo-liberals. This is another attempt to express my discontent with these positions

There is no evidence that capitalism can exist without government. It has not done so, so far.

  • Libertarians are not real anarchists, as they ignore the power differentials in capitalism or assert that with real free markets the State will collapse – a bit like communists insist that after the dictatorship of the proletariat the State will collapse, sometime in the future, and that imagined collapse justifies whatever is happening now.
  • Capitalist markets have never existed without a State.
  • Some libertarians and neoliberals try to avoid this problem essentially by asserting trade is capitalism, and that therefore lots of Stateless capitalist societies have existed.
  • But there are many modes of exchange and not all of them are capitalistic.
  • If we accept that capitalism is trade, then communism is capitalism. Both systems engage in trade. Capitalism does not encourage free trade, but trade according to the rules of the rich elites.
  • Capitalism is a particular set of political organisations of production and restrictions on trade and property, that stops most people from being self-supporting and demands they engage in wage labour, favors hoarding by the rich elites, and suppresses opposition to those elites.

Capitalism promotes wealth inequality

  • Most libertarians and neoliberals celebrate inequality of riches.
  • They argue that massive inequality of riches is reward for talent alone. Power has nothing to do with the inequality.
  • But one possible part-definition of capitalism is that it is a system of exchange organised to benefit the rich elites and increase their power over everyone else who has to depend on them for survival because everyone else has to engage in a market controlled by those rich elites.
  • The fundamental social relationship in capitalism is not liberty but obedience to a boss who is wealthier than you are. Capitalism is about submission to wealth.

Riches buy power

  • Riches can buy all forms of power, especially if riches are considered good in themselves. they can buy control over: Violence, Communication, Information, Energy, Religions, organisational power and so on.
  • Riches can also buy liberty for those who have riches.
  • Therefore the more unequal the riches the more unequal access there is to power and liberty.
  • Libertarians and neoliberals support liberty for rich people, and the rights of rich people to not be hindered in any of their activities, including those which impinge upon poorer people.
  • At the extreme point, the legal system (courts, judges, lawyers, police etc) is up for sale to the highest bidder, so there can be no challenge to the rich at all.
  • In neoliberal or libertarian capitalism your rights are what you can pay for.

Capitalism tends towards plutocracy

  • Humans tend to collaborate with each other. You could not have corporate capitalism if this was not the case.
  • Therefore it is likely the hyper-rich will collaborate to either set up government in the unlikely event that there was no government previously, or take over the government if there is a government.
  • Once they take over the government, they will promote government for their collective interests, and collective liberties, and suppress other needs or other liberties which conflict with theirs, or their riches. This is what people often do.
  • They can stack government with their supporters, and make legislation which supports them and makes it harder for others. They can repeal legislation which impinges on their liberty, but keep legislation which impinges on the liberty of others.
  • As they control information and support generation of information which supports them, they will attack the best truth we have, if it conflicts with their dominance or wealth generation for themselves.
  • They suppress other modes of power which are not capitalistic. Which means there is little in the way of division of power – capitalist States tend to become mono-powers, and encourage capitalistic organization for everything.
  • Capitalists will set up plutocracy, and curtail the liberty of other ‘classes’. It is very hard to find a capitalist system in which this does not happen.
  • Indeed, we have had forty years of talk about free markets and we now have a straightforward plutocracy. The plutocracy is unstable, because it has ignored and suppressed inconvenient people and the working classes, and has suppressed the needs and dynamics of the ecology we live within. But corporations and their interests come first (although they may pretend not).
  • Libertarians seem far more comfortable with authoritarian capitalists, authoritarian religions, and State removal of the rights of workers than they seem comfortable with democratic socialists, or communal anarchists, who want to overcome the suppression of people in general. Given capitalists, in practice, use the State all the time, this comfort has nothing to do with getting rid of the State or increasing liberty.

The origins of capitalism do not reside in hard work but theft and violence

  • The libertarian, neoliberal and capitalist origin myth asserts that inequalities of riches (and the other inequalities these buy) arise from hard work and talent.
  • But capitalism arose in theft and oppression.
  • It started in aristocracy which depended on the taking of land, usually through violence or conquest.
  • Capital developed by stealing. People’s lives were stolen through slavery, indentured labour, truly terrible and often cheap but lethal working conditions, and so on. Land was stolen by ‘colonial’ violence from people who already used the land as in India, the US, Australia, and in the UK by theft of commons. It originated in the theft of treasure from India, and South America, or more accurately in the South American case, from British pirates stealing from Spanish treasure ships. It originated in massive cheap pollution, poisoning and environmental destruction which stole people’s lives and health.
  • Wherever it was arrived, capitalism stole property and self-sufficiency from people and turned them into wage laborers, depriving them of basic liberty.
  • Capitalist colonialists would often impose monetary taxes on people to force them to engage in otherwise meaningless wage labor, and submit to the colonial forces.
  • There is no reason to think that this is no longer the case, and that capitalism is now not structured by riches inherited from that violence, or that if violence and ecological destruction can be got away with profitably it will not be engaged in.
  • Libertarians and neoliberals are really good at seeing that ordinary people can co-operate to inhibit the market and they seem to want to suppress such movements. However, they are pretty useless at seeing the normal violence of capitalism or the ways that capitalists can cooperate to interfere with the market, both with the State and outside the State, for their benefit and power.
  • Libertarians often seem to define their “non-aggression principle” to exclude normal capitalist violence and suppress real rebelliousness, or demands for recompense for capitalist theft as aggression, probably because they support the establishment more than then people.

People are not just driven by profit or power

  • While in actual life libertarianism and neoliberalism reduces everything to profit and the liberty of the wealthy humans have many other drives
  • Libertarianism and neoliberals essentially dismiss these drives. If it does not make money, its of no value or use . If it does make money it is of value of use.
  • We may example: not very good art, non-capitalist religion, co-operation, care, love etc are all downplayed by libertarians and neoliberals in favor of the market.
  • It might be that everything worthwhile in life comes from outside the capitalist market and is destroyed by that market, as everything is reduced to money and profit.

Capitalism damages people

  • Historical theft and violence continues to damage people today, as colonialism and its racism, class distinctions and so on continue to affect peoples lives and allocate life chances. This does not mean people cannot triumph against huge obstacles, but they face those obstacles and structural inhibitions, because of previous and continuing capitalist theft and violence.
  • It has already been stated that capitalism damages and poisons ecology. People need functional ecology to live well, so damage to ecology damages people.
  • Capitalism encourages obedience and submission with the threat of being dumped into poverty.
  • Capitalism requires most people to have no relationship to what they produce, or to take no reward in what they produce, and have no control over what happens to what they produce. This is what Marx called alienation. It harms people’s involvement in their own lives.
  • Capitalism encourages machine production, and therefore, for most people, discourages craft production or the development of holistic skills and the use of their body and mind and feelings etc. This damages them. Adam Smith while encouraging division of tasks and labour, recognised that it inculcated mental and ‘spiritual’ stultification.
  • Capitalism encourages exhaustion, not just of land, but of people through overwork, media saturation and so on. This lessens their ability to respond to life and problems, or to reject capitalism.
  • People can nearly always be replaced, as they have no intrinsic value. This also damages people and shows they are of no real worth, as bosses cannot be bothered to treat them like ‘human beings’.
  • Possibly all the major problems in the West have been generated by capitalism and its markets.

Principles of Neoliberalism – yes again

October 23, 2022

I know I’m flogging a dead camel, but here we are again. People are saying neoliberalism is dead, but its still seems the common sense of the time, although Liz Truss’s unfinanced taxcuts and cuts to spending did upset the markets. However, its replacement with more austerity for ordinary people seemed to be perfectly acceptable.

We need to be clear. Neoliberalism is not just an economic theory, it is a political programme, backed by the corporate elites, and their networks (such as the Atlas Network), to increase their power and riches.

The principles of neoliberalism:

  • Business is good. Big Business is better than small business
  • Business generates riches, therefore it must be protected.
    • As big business is better than small business, it needs more protection.
  • The Market should govern everything.
  • The Market is the best way of doing everything.
  • The Market is the only important thing in life.
  • Anything which interferes with the market is very very bad.
    • These bad interference things include; unions, environmental protections, anti-pollution laws, planning for the good of society, taxes on the rich, affordable health care, democracy, and so on.
    • The ecology is a subset of the market, and the market can ignore it and fix all its problems.
    • These bad things must be inhibited or prevented by State legislation. Tax cuts for wealthy people and big business are nearly always acceptable, even if apparently unfunded.
  • Some things which appear to interfere with the market are not really interferences with the market and can be ignored.
    • Such as: taxpayer subsidies for established companies; military spending; rich people or organisations buying policies or being able to regulate the market; state contracting to business; cartels; monopolies; businesses co-operating to reduce wages and conditions or set prices; price gouging; suppressing data harmful to business etc.
    • If these are faults then they will be corrected by the market. No need for legislation.
  • Neoliberals should never talk about the possibility of wealth being a source of power, or wealthy people co-operating for their personal good against workers, and the word plutocracy should never be mentioned. As this is unreal. The Market will not allow it.
  • It should never be discussed, but plutocracy is good, and we call it democracy – as it counts the people who count.
  • Market failure, is always the fault of the government.
  • Poverty is always the fault of the poor. If they are poor that is because they are incompetent, lazy, stupid or criminal.
  • The term ‘class war’ can only be applied when poorer people, or workers, attack the neoliberal system of plutocracy. If the Rich classes attack the poor, then that is just The Market in Action and hence is good for everyone..

The Problem of the Rich as Saviours

October 10, 2022

It is quite clear that the neoliberal experiment has so-far benefitted those who are already rich. Most of the ‘new’ wealth has gone to them. In the UK figures from the ONS for example, assert that the average household wealth of the top 1% (263,000 people) is £3.8 million, while that of the poorest 10% of households is £15,400. The median wealth was £302,500. People in the lowest 60% hold just one fifth of wealth. In Australia, the richest 20 per cent hold nearly two thirds of Australia’s wealth. Oxfam claim that the world’s richest 26 people possess the same wealth as the poorest 50% of the world’s population.

Oxfam said the wealth of more than 2,200 billionaires across the globe had increased by $900bn in 2018 – or $2.5bn a day. The 12% increase in the wealth of the very richest contrasted with a fall of 11% in the wealth of the poorest half of the world’s population.

The rich have wealth and the power it brings and they seem to reassure themselves this is because they are more deserving than others. The working class has been stuck with low wages and bad and precarious conditions of work – if workers become unemployed then the system sets out to persecute them until they take whatever is going, no matter how much it cripples them. There is more freedom for the rich.

However this change in patterns of wealth and income, has also lead to us depending on the rich for action as they control the money and property and the businesses. And action to reduce Climate Change or social inequality has almost not happened at all.

So we have a problem with no apparent solution.

The rest of this post largely comes from another blogger whose work I admire. I’ve edited, rearrange, added and abridged a little. But please go to the original.

There are regular laments these days about our crisis of imagination. We face existential crises, and yet nobody with any sort of influence has any sort of idea what to do about any of it. The typical strategy seems to be ‘more of the same’ on steroids. Who would suggest that doing the same thing is going to have different results? And not only different, but polar opposite results! This is idiocy.

We turn to the rich for solutions. Living on the borderlands of that world, as I do, I’ve known quite a number of rich people… and they’re not sociopaths… they’re just… not that bright… The rich are not cruel by design. They often desire to do good in the world and believe they are doing so. But they are so blinded by their own sense of self worth — I must be smart; I have all this money! — they don’t see the real world effects of their actions….

In this self-reinforcing world, wealth and status can breed complacency and a sort of smug sense of rectitude — which then turns into social blindness, self-absorption, and not a little stupidity…. Partly this is because there is a high degree of reluctance to call them on their idiocy.  They live in an opaque bubble-land that admits no opinion or evidence that might conflict with their own wants or values or need to be smart. They are ignorant, and yet lead through their wealth.

This blind ignorance of society’s leaders is not something we like to acknowledge. Yet it holds sway over everything, over all the conversations we are having, and these leaders are the people who have orchestrated this whole mess

I don’t think we have a crisis of creativity or a lack of imagination, but I do think we are looking for imagination from the wrong people. Those who do not have wealth or prestige are creating wonderfully imaginative new ways of being. In fact, those who are outside this system, the have-nots, have always made life with few resources and with an inventiveness that is just astounding.

We need to look away from the money and status and look instead to those who already live small lives, as our exemplars

We can’t depend on power and wealth to unmake themselves. Powerful and wealthy people are just not smart enough to make these changes, and they think they will survive anyway.

*****

Wealth can protect people from information, or hide it from them, or make it so they don’t want to know about things which might threaten that wealth, no matter how nice they are – and their servants/employees may not want to upset them either, as its often not a good recipe for keeping a job.

If we are looking for solutions, then we may need to look away from the centres of the problem. We may have to rely on those who are already facing the problems of life as they are now and working together to do their best to defend against them, or change the system, while being ignored by the rich. These people may have much greater capacity for change.

Inflation and interest rates

September 13, 2022

I probably do not understand economics that well, so feel free to inform me. But here we go:

The consumer price index goes up by x% mainly because of food and energy (drought, floods, sudden gas shortages, increasing energy company profits), but possibly also because of Covid lockdowns in China, or climate change in China, India and Pakistan which is knocking factories out.

The central bank claims people have too much money (there is a loose money supply), so that is why we are getting inflation. I have not seen much evidence that most people, have too much money, or that inflation is being driven by wages increasing faster than profits. Indeed quite the other way around….

Anyway, the central bank appears to assume that people in general must have too much money, therefore it increases interest rates to restrict the money supply.

As those with loans pay more for those loans, they have less money to spend… there is less demand and so prices are supposed to come down.

However, low to median wage people already have less money because its being eaten up by price rises in food and energy – which they might NEED.

Now after the interest rate rise they have even less money and may get thrown out of their homes because they also need to eat etc…. and can’t pay off the loan increases…. Some people live pretty close to the edge.

They can always starve the children I guess, but the situation is likely to get worse as small business with little capital reserve need to put up prices in general to pay off the increased interest on the loans they have taken….

So inflation increases as prices go up and therefore the central bank puts interest rates up again, to try and lower inflation, and drives more people out of their homes and, just maybe, some small businesses go out of business, because they cannot compete with those big businesses with capital reserves…. and the economy gets even more centralised, and people have even less chance of upwards social mobility.

And given small businesses are major employers, it possibly means that closing small business increases unemployment. The IMF apparently has argued that US unemployment should about double to about 7.5% (I can’t find this information, so it may not be correct.). You might wonder about a system whose solutions to problems, openly involve making ordinary people’s lives more precarious.

With less competition, big companies can put up prices, and they can easily coordinate putting up prices, and blame it on inflation. They don’t have to do this of course, but I’d be surprised if some near monopolies don’t – after all making profit for the least cost, is the point of the game. They can also argue that because of cost increases they can’t afford to put up wages – again making profit for the least cost. So the policy is likely to help the transfer of income from ordinary people to the corporate rich and shareholders.

With all the homes being sold, and high interest rates perhaps house prices fall, perhaps they don’t – they didn’t with huge interest rates some years back, where I live. I guess people with money just bought more property.

So this common anti-inflation technique, is bad for people and small business, but ok for big business and people with money to invest in property, and it protects the banks because they get more income, and more foreclosures?

Is that how it works?

The non-commons

September 9, 2022

The non-tragedy of the commons

I assume people know about the so called “tragedy of the commons” which was later retracted by its populariser, Garrett Hardin. The theory is that naturally selfish people will seek to take personal advantage of common land, and this uninhibited usage will eventually destroy the land through over-grazing over-cropping, over-fishing, etc.

This proposal stands in contrast to the empirical fact that there are commons on the Earth, which have survived as commons or shared property for hundreds and possibly thousands of years. What we might call hunter and gather societies generally exist with common ownership of ‘country’; the people are connected with the land they roam upon. They may even share the land with other groups.

These commons are managed by the users, who also have an interest in the commons being maintained for their own, and other locals’, benefit. So they try to stop people over-exploiting the commons – just as non-commoners might try and stop other forms of theft. You can look up the work of Elinor Ostrom and her followers if you choose to see how this works.

It appears that capitalist modes of behaviour, and capitalist ‘common sense’, destroy the commons. In capitalism people’s control over non-private property which serves them all, appears to be largely unrecognised by business or State. Capitalists regularly pollute the air, rivers, fields, towns, and so on – because they have ‘defined’ and ‘enforced’, this common space as an ‘externality’ – something which is external to the regime of private property, or economic cost, and therefore does not count. The power of local people over non-private property, or even their private property that obstructs big business, is often destroyed or marginalised. Consequently, we could expect capitalists to behave disastrously towards commons in the way that Hardin described, and indeed many argue that taking away the commons was part of the transition to capitalism. Therefore his article could better be titled “The Tragedy of all commons and common resources under Capitalism.”

By saying that people cannot naturally own things in common, he also works to discourages people from working together for common production and for shared benefits. The alternative is that one person has to own property, and the others labour for the owner, in return for the common benefits. This helps establishes an authoritarian basis for common work, and gets rid of democratic voices.

This hostile attitude to commons, and the declaration that common selfishness will destroy it, is possibly one of the roots of the ecological crisis. Common and private land, and anything else, can be happily ruined by its owners. Any commons, again including the air and the climate, can be ruined if it is not privately or State owned, or if the owners don’t have comparable power to those doing the ruining. Capitalism assumes Common Property is up for defacement and destruction, and that there is no such reality as common benefit without the exchange of money. The regime assures people that state owned property (crown land etc) is always vulnerable to being sold off to people with influence.

Pro-capitalist attack on the commons and defense of the non-commons

I was recommended to read a libertarian article on the impossibility of common property, which is interesting and a bit of an illumination of how neoliberalism works as theory. The argument goes like this:

  • Liberty is bound up in individually, or corporately owned, private property and with capitalism.
  • Hence everything should be made into private property to maximise liberty.
  • Collective property of any type, other than corporately owned, leads to other people telling you what to do (what commoners might call ‘managing shared resources’), which is bad.
  • Liberty appears to be about being able to buy what you can afford and sell what you have. Nothing else.
  • Therefore collective property, or commons, which cannot be sold, should be banned to preserve liberty and taken into private hands. [People with property seem to have the right to tell other people what to do, without it being a violation of liberty]
  • Everyone who believes in the possibility of collective property or public goods, not impinging on your right to do whatever you want, is an idiot who believes in pixie dust and the virtue of officials.
  • Free Markets on the other hand, are absolutely wonderful, and have no problems at all. There are no power imbalances in free markets. Even Mother Teresa would recognise that they are morally superior to systems which have public goods, commons, or collective forms of property. Capitalism is perfect and can only be improved by destroying stupid commons and selling off collective goods to those who can afford them, so they can control them and look after them.
  • Even public institutions should be sold off. Private police, and private courts, will support everyone’s property rights, not just their owner’s interests, or the rich who can pay more for the services. There is apparently no conflict of interest, because there is competition.
  • The idea of collective property and public goods only exists to support non-libertarian state power structures. Collective and shared property does not exist without the State. There has never been collective property without a state.
  • Once you realise all of this you will be like Frodo and chuck the evil ring of collective property into a volcano and let freedom, joy and happiness rule.

If it is not clear, I think this argument is largely glib, contradictory, unconvincing and ignorant of counter-evidence – and most of the statements could easily be reversed (“Liberty is bound with collectively owned and controlled property,” “Accumulation of private property leads to people being able to command others”) – but like most neoliberal or libertarian arguments, does help boost corporate power and control over people’s lives and freedoms. It justifies business destroying commons or stealing commons and turning them into non-commons in the name of liberty. It acts as a warning of the probable loss, and precariousness, of certain non-capitalist rights.

Tragedy of the non-commons

In some ways the article meshes with another article of Hardin’s, Lifeboat ethics, where he argues against environmentalists who say that “no single person or institution has the right to destroy, waste, or use more than a fair share of [the planet’s] resources” by suggesting we are in a lifeboat and should leave the poor (or the people in less ‘safe’ prosperity) to drown, so we can survive. Helping them simply overloads the lifeboat and we all die…. As there is no commons, and we are all thieves anyway, we don’t need to worry about those who are destroying the planet or how they do it – we just leave the poor to die and celebrate our apparent safety.

He also states: “To be generous with one’s own possessions is quite different from being generous with those of posterity.” However, that is precisely what he is doing, sacrificing posterity’s common good, for the personal present day good of the planet destroyers or the polluter elites.

We also don’t know we are safe from the planet destroyers. Self interested people, accepting this capitalist ethic, should perhaps wonder why they should assume the planet destroyers will let them use the lifeboat and not just push them away?

Commons in Practice

As stated earlier Garret Hardin in his later life recognised that the Tragedy of the Commons occurred when the commons wasn’t “well managed.” He probably realised this when, after much discussion with Elinor Ostrum, he recognised that some commons had lasted for thousands of years. (see also Buck)

For some reason his back down is nowhere near as well known as the original paper. Probably the original paper serves a more acceptable pro-capitalist ideological purpose.

So to reiterate. The forces disrupting commons tend to be:

  • Violence by the dominant classes. Generally aristocrats or capitalist, stole the commons for themselves and threw the people off, saying the land had no real ownership so it was theirs.
  • Ideologies that say everyone should exploit any situation for maximum profit as with neoliberal egotistical capitalism.

The tragedy is brought about by unequal power and capitalism, not by the human nature of the commoners.

Successfully run commons, could be considered ‘socialism’ in action.

Significant property is shared, utilised and cared for, and people who would rip it off, are ‘punished’ by the collective (reprimands, silence etc) or slowly have their rights to use commons taken away. Commons users can democratically participate in the administration (usually as a family unit) of the commons, and there is no significant inherited privilege to use force against other commoners other than to protect the commons from exploitation or appropriation, as agreed to by other participants.

The tragedy of the commons should be seen as a reason for regulating capitalists and stopping them from destroying other people’s collective property, rights and livelihood for the capitalist’s own profit, as all polluting companies do by poisoning air, water, land, ecologies and so on, to lower their costs and increase their profit. We, the people and the ecologies we live in, should not be devalued in comparison with private property or private profit.

Towards a real ‘praxeology’ of capitalism

July 6, 2022

Praxeology is the attempt to define the underlying logic of human action both individual and collective. It was a fundamental hallmark of Austrian ‘free market’ economics. It’s advantage is that, if conducted properly, it should make our axioms, suppositions, hypotheses, observations, and deductions obvious and open to criticism, so we can progress our understanding as we encounter new events and new perspectives. However, Austrian economics and its followers seem to have continually ignored empirical observations which suggest that capitalism would not work as they wanted it to behave. Rather than deal with the problems of their assumptions, or of capitalism, they have appeared to have wanted to blame others for capitalism’s failures (such as people with ‘good intentions’, socialists, state interference etc). Hence, their free market economics appears as if it is an attempt to protect capitalism from democratic influence or responsibility.

This is an attempt to describe human action without that particular bias.

This post will likely grow as I rethink it and rewrite it.

Capitalism is a set of social organisations of ‘forms’ or ‘systems’ of life:

Economic Life system: The organisation of exchange, trade, production, distribution of goods and wealth, property rights, ownership, credit, poverty, waste, pollution, extraction;
Political Life system: Relations of power and dominance, state organisation, taxes, active concerns, priorities, neglects, law, courts, regulation, policing, interaction with other groups, placing people in social categories to treat them ‘correctly’ (however ‘correctly’ is defined), warfare etc.
Informational Life system: Modes of gathering, producing, organisation, owning, distributing, suppressing or ignoring, information. Structures of communication. Modes of informational etiquette (such as abusing those who disagree) Modes of truth.
Energetic Life system: Labour, slavery, water, wind, solar, food, coal, wind, oil, nuclear etc.
Ecological Life system: Availability of resources, weather patterns, fertility, creatures, planetary boundaries etc…

  • [Capitalism also involves organisations of family, personal, educational and religious life (and so on), so that people can earn money, survive and find meaning within the overall system, but for the while we will ignore these factors, simply to make it relatively simple.]
  • [I have sometimes separated out the system of waste, pollution, dispersion, extraction and ecological destruction to emphasise its importance to current problems, and may do so again later. We can hypothesise that all economies depend on their systems of waste, pollution, dispersion and destruction.]

Despite coming last in this set of conditions, ecological systems are the fundamental basis of all life. Ecology is primary to all of economy, politics and energy use, although it is shaped by economy, politics and energy use. I’m not alone in asserting that politics and economics should be more focused on tending to the ecology, and keeping it healthy and functional, so as to help our survival. Functional, non-poisoned ecologies, in human terms, are vital.

All these forms or systems of life are bound together. You cannot separate them, and be realistic. Capitalism, politics, information, energy, ecology are all interacting complex systems. The imposition of one kind of order in one sphere, may generate unintended consequences or events, elsewhere, which are considered to be disorders.

Economic and political life are especially bound together. No capitalism has been observed without political life or without a State. Capitalism without States, may be possible, but so far it is a fantasy, and praxeology must deal with the real and observable, or be useless. Likewise no form of capitalism currently exists without an information system or without being within an ecology.

Proposition: All of these systems/forms of life have been impacted on over history, and this may affect their present condition and limit their probable futures.

The specific modes of organisation which define capitalism will become clearer as we progress, but the initial Primary guiding hypothesis is that the increase of monetary profit is the main drive and organising focus of capitalism – especially of neoliberal (current day) capitalism. Other forms and systems of social organisation, may not assume that monetary profit is the prime directive of all life. People may, for example, seek status (admiration from others) and power through displays of generosity or care.

A Secondary guiding hypothesis, which does not seem uniquely relevant to capitalism, is that the ruling elites (wealth or otherwise) will seek to maintain the conditions of their existence, and to increase their power (and profit). However, while they may have these intentions, there is no guarantee that they will succeed, or that they will not undermine themselves. The world is complex and escapes anyone’s total control.

Propositions on Profit

Definition: Profit is the extraction of money from the general economic process and its allocation to particular people in positions of business ownership, through legal means (ie political action), who then are said to make, and own, the profit. Profit arises within an underlying complex set of social processes or interdependencies (labour, provision of goods, provision of energy, regulation, interactions with other businesses, customers and so on). The law allows its separation out from this complex set of interdependencies. Recognised money makes profit ‘real’ and ‘storable’. As Ruskin suggests profit is not to be confused with wealth. Profit can also be a source of ‘illth.’

Question: Is there any form of what we call capitalism which does not require money?

Assertion based on the primary guiding hypothesis: Taking, and increasing, Profit is the fundamental underlying (and moral) principle of capitalism. The more intense the power of capitalists the more likely this is the case. Profit is needed for survival as a business.

Proposition 1: In capitalism, high profit (within the law) is considered good and less profit bad.

Proposition 2: The more costs of production can be lowered to increase profit the better.

Therefore: Workers are a drain on profit, and should be either eliminated or underpaid. The same may be true of suppliers. Likewise, pollution, poisoning, and unremediated ecological destruction are useful as they cut costs, and so are dismissed in capitalism as externalities. They are said to be external to the economic system, having no effect. Essentially externalities are the ways in which the capitalist class can freeload costs and suffering onto others to increase profit. One significant problem is that the planet and its ecologies are not external to survival and are finite. They have limits, and freeloading will eventually catch up with everyone. We have known this in theory since at least 1966, although the realisation seems to have been put to one side.

Question: Is capitalism more or less driven to destroy the ecology which supports it, through the drive to ‘externalise’ and ignore ecological damage, in order to increase profit?

The desire to continually increase profit, leads to growth (enlargement rather than development) being the mark of a successful business. Enlargement is not necessarily sustainable in all conditions for everyone – hence most businesses collapse, and only the most profitable (or ruthless) survive and eat everything else. To repeat, this increases the necessary power of profit, it keeps you in business, and that is more important than valuing ecology in this system.

Freeloading

Definition: Freeloading involves letting other people, or other companies, do the socially useful survival work (like not emitting pollution, feeding the workers), and avoiding the costs of that work and therefore increasing profits at the expense of those who don’t freeload.

Empirical generalisation: Corporate freeloading is often hidden by the information system, while worker freeloading is exposed.

Hypothesis: Freeloading is moral in capitalism, if it makes a profit and its done by the corporate class against the non-corporate class.

Question: Is there anything in capitalism, which prevents individualists from refusing to participate in the general costs of survival, by hiding their freeloading on those who do absorb those costs, then continuing with making the damage, making more profit and surviving when the other ‘responsible companies’ collapse?

If nothing opposes this, then all companies will be inclined towards freeloading for the sake of their survival.

Prices

It may be important to distinguish price from value, although they are often confused. Fresh air may be valuable but it may not yet be priced. Love may be valuable, but it may not always be priced. Price is the amount of money something can be charged for on the market.

It may be important not to assume that the value of anything is solely (and objectively) its price.

Proposition 1: In capitalism, high profit (within the law) is considered good and less profit bad.

Proposition 3: The higher the prices that can be charged to the customer, the greater the profit.

Therefore: Prices should continually increase until the products cannot be sold at a profit or potential customers move to products produced by other people with roughly the same function. This process is generally called competition.

Competition involves information. People have to know they can get the cheaper useful product for competition to work. Complete information is impossible, but fraud is possible. that is the cheaper product may not work.

Transactions with new businesses are risky. Companies are not providing exactly the same products. Cheaper may be cheaper, but they may not be good, the new company might break down, and leave you without a supplier, and so on.

Question: Do businesses generally regard competition as bad, and head towards monopoly, cooperation and/or suppression of information?

Empirical observation: Companies can, and do, create the illusion of competition by manufacturing different brands of ‘stuff’ at different prices.

Question: Is attempting to confuse the market (or the customer) a standard or vital tactic for business to help increase the price they can charge?

Historical Digression: Trajectories of Capital accumulation

Question: If there is no legal force which demands peace recognised, what crimes will be perpetuated in the name of profit?

Empirical observations: the East India Company. The Opium Wars. Tobacco companies.

Accumulation of capital, or the profit, to begin capitalism, has been historically brought about through violence.
Feudalism, conquest, colonialism, theft of treasure and resources (gold and silver from the Americas and India), ‘enclosures’ or dispossession of people from land, stripping people of their right to self sufficiency, slavery, cheap (but crippling or deadly) working conditions, downplaying the value of labour, reducing obligation and care to ‘money,’ together with repression of rebellion until this set up became taken as natural because people had never experienced anything else.

Capitalist colonialism has always attempted to eliminate non-capitalist ways of organising economic behaviour. Sometimes this destruction was deliberate (imposing wage labour, dispossessing people from land, or otherwise promoting the need for currency through taxes etc.) and sometimes it may have been accidental through the inability to understand that non-capitalist economic systems existed or had any virtues (ie through the capitalist shaping of the information system, and through the fact that not all these economies valued a constant increase in monetary profit at all costs). We might call this “The Natives are lazy” syndrome, found in Australia under Terra Nullius, which claimed that aboriginal people ignored the land and did not exist, which ‘therefore’ justifies taking the land, the destruction of non-capitalist people, ecologies and economies. Sometimes the destruction was by spread of disease, deliberate or otherwise.

Observation: The history of capitalist accumulation seems to be brought about by elites co-operating with each other and their ‘workers’, and doing far more damage than they could have done alone. There is no reason to assume that they should have become ‘individual’ operators after that success. (See ‘competition and co-operation’ below.)

Differences in capital accumulation are not just the result of virtue, or productive talent as claimed by most pro-capitalist economic theory, but of violence and theft.

Question: Does this situation continue today?

Empirical observation: We are still told the poor (‘Natives’) are lazy, untalented or cursed by God to be blamed for their own poverty, and that the ‘undeveloped world’ needs more capitalists, more enclosure of property, to buy more of our products (to make money for us), the help of international corporations and minerals being taken for very little in the way of payment. In America and Australia ‘our’ economic and state institutions still keep most of the land which was violently stolen.

The use of day to day violence was partially mitigated by the rise of worker organisation, the workers standing up to the violence, the rise of independence movements, the fear of revolution, and the general failure of fascism to stabilise capitalist power. Since the late 1980s this fear has diminished and workers’ organisation has declined. We may be heading into another round of ‘stabilising’ fascism.

Another factor in the lessening of repression was the realisation that workers with higher wages can form a viable market for products and hence higher wages can benefit all through increasing the scope of the market. However such a realisation was likely to fall, because of the temptation for individual capitalists to freeload on others, and to go back to undermining, deskilling and underpaying labour to increase their own profit and power in the market, at the cost of those who treated workers better to generate a good market.

Proposition: Human Competition and Co-operation

Empirical observation: People are both cooperative and competitive
a) They tend to cooperate within ingroups, or with people the person identifies with
b) They tend to compete with outgroups, or with people the person does not identify with

Empirical observation: People can do things through co-operation they could not do alone. They can often get more done through co-operation than by working alone.

Empirical observation: Competition often occurs through co-operation, as when group co-operates to ‘defeat’ another group or to increase their power and capacity.

Corporations are examples of human cooperation and competition (cooperation and competition both within and without).

Remark: Human beings don’t have to compete for money. Humans can compete for respect, acknowledgment, fame, power, obligation and so on – all of which can be beneficial to community life.

Many economic systems rely on ‘generosity’ of gifting, to build relationships and obligations. This can mix both competition and co-operation.

To ignore one of these factors in favour of the other, is to suppress awareness of human complexity.

Observation: Nothing that can be called an economy does not involve both competition and co-operation.

The limits of co-operation and competition are usually set by social convention and who is defined as ingroup and who is defined as outgroup.

Rejecting ideas of co-operation and non-monetary returns, means that people ignore vital parts of society, such as the building and design of the internet (free exchange in return for status and acknowledgement), long lasting commons and shared land, and even obvious fact, that most parents don’t kill, or seriously harm, their babies.

Propositions on power and economic action

Definition: Power is the capacity for both a) free action and b) control, or influence, over others’ actions.

Empirical observation (and axiom) 1: Unequal wealth = unequal power.

In a capitalist state, and perhaps in all States, wealth buys access to political processes, free action and control over others through organised violence or law. Wealth is a basis for power for free action and control over others.

Unequal wealth and power generates unequal liberty and unequal capacity for action.

Empirical observation (and axiom) 2: Capitalism generates massively unequal wealth (Usually justified by Praxeologists on the grounds of unequal talents.)

Therefore: capitalism generates massively unequal power, liberty and capacity to act.

Suggestion: Capitalist politics enforces this unequal liberty in order to preserve its system stability, to preserve the hierarchy of power and wealth of those who have it, and to engage in ‘capitalist pillage for capital accumulation’. See above and next section.

Hypothesis: The fundamental relationship in capitalism, is between Boss and worker. The worker must, in general, do as they are told so as to maximise profit. There is no necessary relationship between boss and worker apart from obedience and money. Capitalism is about obedience, and dependence on the employer, not about liberty.

Suggestion: Maximization of profit requires that groups who might want to share in the profit they helped produce, or who might increase costs through rendering pollution a non-external cost, have to be suppressed as best as possible, without leading to their revolt. This suppression may require the State, or co-operation between businesses.

Proposition: ‘Crony Capitalism’ and ‘State Capture’ are inevitable

The hyper wealthy will tend to identify with each other against ordinary people (see the proposition ‘Human Competition and Co-operation’, above). Hence they will co-operate against ordinary people and the ‘threat’ posed by ordinary people.

This is reinforced by the ‘need’ to diminish wages and working conditions and externalise costs onto others, so as to increase profit.

Statement: Employers, large corporations and wealth elites have more power than ordinary workers

Definition: Crony capitalism is co-operation between corporations or wealth elites so as to increase wealth, profit and power. This may make use of a political class, primarily a political class which identifies with the wealth elites, or is easily bought (because profit is the main social virtue).

Crony Capitalism is normal capitalism based in ‘human nature’ and ingroup outgroup behaviour. It’s easy and it is effective in increasing profit, and hence reinforced by the normal processes of profit seeking.

That corporate elites co-operate against outgroups, does not mean they will be unified with no internal competition, but that competition maybe suppressed in their cooperation against the “common enemy”.

Proposition 1: The corporate wealth elite has more power and capacity than the ‘lower classes’

Proposition 2: The elite will co-operate against the lower classes.

Proposition 3: The corporate wealth elite will pass this wealth and the advantage it brings to their children.

Therefore: workers are more limited in their response to opportunities. Competition between workers will always drive down wages unless there are workers with skills which are in short supply, and there is no equality or freedom of opportunity in capitalism for most people.

Comment: This competition between workers to earn enough to survive seems to be encouraged by pro-capitalist politicians to force down wages, and this perhaps unintentionally lowers the capacity of the mass market to purchase products and services.

What counts as belonging to who, is an act of negotiation and power. The more powerful the workers the more ‘belongs’ to them, the more powerful bosses and business, the more belongs to them.

Proposition: Collaboration between wealth elites will also occur in the wider political sphere.

Therefore: The hyper wealthy and the corporate sector will attempt to take over or capture the State, or set up a plutocratic state, to prevent the lower classes from acting against them. This State will regulate and structure the market in their favour in order to benefit their profit; it will allow more freeloading on others; it will attempt to prevent people demanding action which is socially beneficial but which could reduce profit, and it will police challenges to this order. This is personally beneficial for the politicians in capitalist ideology.

As a result, there is no possible capitalism in which the State does not interfere with the market, especially in an attempt to support the capitalist market. Hence the State is part of the market and cannot be blamed for the failure of the market alone – the behaviour of the State is part of the market in action.

Assertion: the form of State present in a capitalist society, will tend to support the wealth elites, support the location of profit with the wealth elites, while cutting back any support for workers, cutting back attempts to end freeloading by the wealth elites and demonising those who might agitate against the wealth elites in ways which could be effective.

Siding with the elites

Proposition 1: Living the worker life is insecure and low status.

Proposition 2: People tend to avoid positions of insecurity and low status if they can.

Therefore: People can hope to increase their wealth and apparent power, by siding with employers or corporations forming the managerial class which acts as a distractor and buffer between workers and wealth elites. However, low level managers (in particular) are still workers and discardable, whatever they might hope to the contrary.

Observation: Capitalism has to attract support to survive outside of perpetual warfare.

Power in the ‘Marketplace’

Following on from the earlier propositions.

Proposition 1: Wealthier players may have less of an immediate need for a transaction – they have the ‘capital’ to prolong survival, at a loss.

Proposition 2: Poorer players may have an immediate need for the transaction to survive and may have to agree to ensure that survival. They cannot survive the loss.

Therefore: All actors in the market do NOT have equal power in the market, and that transactions are not equitable, and are not equally satisfying.

Empirical observation: People who are not self supporting, and who need wages to survive may have to accept jobs at low wages, as low wages are better than non. Low wages may provide food, delay being thrown out of accommodation and so on. The employer does not have to care that much, as there will probably be someone else out of their luck and willing to accept the wages.

Employers can also co-operate to lower wages. cf Crony capitalism. They can also oppose livable minimum wages becoming law, because they are a recognised power block.

Likewise, in certain circumstances, a supplier can be desperate for a contract, and have to take a low offer because there is nothing else around, and the purchaser can hang in. In other circumstances the purchaser may be in the vulnerable position.

Mutual satisfaction in capitalist exchange is not guaranteed.

It is almost sanctified to rip off, or cheat, the other, unless it affects profit and repeat sales. Caveat emptor (buyer beware) is the principle.

Proposition 3: Small businesses can rarely undercut big businesses.

Proposition 4: Big business can often undercut the prices of small business for long enough to break the small business. They can then put up the prices.

Therefore: Big business can usually drive out small business, or non-established businesses, if the transactions are based solely on prices.

Therefore: An established oligopoly can generate conditions in which it is almost impossible for competitors to break into a market, even if the prices they charge are vastly inflated – especially given that the competitors usually have to consume capital to enter into the market in the first place, and are therefore likely to have higher costs to recover.

The risks of interacting with new players for old customers, is also a factor which supports the oligopoly.

Information system

All social systems have information systems.

The information a person has access too will influence the way that they perceive the world and its workings. Hence, control of the information system, or parts of the system is important politically, as it brings things to notice.

Proposition 1: In a capitalist society, the main media organisations and sources of information will be owned and controlled by the wealth elites.

Proposition 2: Nearly all contemporary people will gain information about the wider world, politics, ecology and economy, from media rather than from personal experience. The world is too big to know it all personally.

Therefore: the media will, in general, defend the wealth elites, their views, and their system of wealth to help preserve the system.

Note: this does not mean every player will automatically see the rightness of a particular defense, but defense and justification will be aimed at.

Proposition 3: As the media are corporate, the main purpose of the media is to make profit.

Proposition 4: the main source of media profit is corporate advertising.

Therefore: They will attempt to not alienate their advertisers or their audience. The primary aim of media is to attract audiences for advertisers’ advertisements, not to promote accurate statements.

Proposition 5: A secondary aim will be to discredit other media to stop the audience going elsewhere, and to keep advertising revenue high. This also does not contribute to accuracy.

Proposition 6: The function of advertising is to sell products, associate engaging fantasies with particular products, get people excited about new products or imagined products, attack existing competing products, hide cheaper competing products, increase profits, justify or naturalise capitalism, or protect a company from challenge, not to promote accuracy or accurate understanding. The Corporate Media is necessarily saturated in hype, falsehood and exaggeration from the beginning. And then there is the need to hide freeloading, or create ‘greenwash’, etc, to keep markets open against protest.

Reminder: It has already been suggested that false information about markets and confusion about prices of products can be useful to competitors on the market. If people do not know what they are buying, or how much they are paying, that can also be useful to competition. (Scot Adams: ‘Confusopoly’).

Proposition 6: People depend on the knowledge system, to learn about the world, to respond to the world and to situate themselves in the world.

Proposition 7: Confused people are more easily led to avoid problems and into further destruction by those who think they benefit from ignoring the problems.

Therefore: An information system which is completely messy will allow problems to accumulate or even encourage problems and destruction to continue, so as to preserve the power and wealth structures.

Empirical observation: the information system may distract people away from important information, in order to help the system pretend it is coping, and to prevent added challenges to the system. For example, controversy about the science of climate change is promoted beyond it statistical significance, while general agreement is not. Celebrity life is more important than climate change. This helps the system keep going (for a while). Likewise, non-capitalist economics is ignored, while the virtue of ‘free markets’ is promoted. Information necessary for survival may be hidden or attacked by the information system if it is seen as presenting an unacceptable challenge to capitalism.

Question: Are these kinds of information disruption systems present within the corporation itself?

Hypothesis: In general (but not always) people at the local level have a better knowledge of what is going on locally than people distant from them.

Therefore: Locals may tend to lie to the centre, or distant power, to allow them to act appropriately.

Remark: Pro-corporate analysts recognise that distant government officials can be out of touch, but generally do not recognise that corporate officials can also be out of touch for the same reasons.

Hypothesis: A punitive hierarchy will establish a system in which people below tell people above, what those below think those above want to hear, so as to protect themselves. The people above will only tell people below, what they think those below need to hear or know, and will lie to protect themselves, or to prevent resistance. Status depends on knowledge, so few people give knowledge away.

When you buy information from a supplier to try and obtain accuracy, the buyer still faces the problem that the supplier is likely to try and keep the purchasing relationship going by providing you with what you might want to hear, rather than what is accurate, and their sources might do likewise. Think tanks are often quite overt about providing their customers with what they want.

Suggestion: to this market based information disruption, we can add the effect of the political propaganda also spread through the information system, in which various forces attempt to make the corporate sector or political parties and politicians look good or bad and provide them with the information that will change their behaviour in desired ways.

The capitalist information system is riddled with rhetoric, hype, lies, distraction, fantasy and confusion, not as an add-on or an easily correctable mistake, but as part of its normal operation.

The normal processes of the market and of customer purchase appear to disrupt the intelligence and information needed to make decisions in the market.

Eventually the whole system will collapse when reality does not match with what the people come to believe should be the case, and with how they should act. This is suicidal. The information system becomes a non-functional ecology, in human terms.

Hypothesis: this cultivation of confusion and falsity to gain and keep market advantage is one reason why economic collapses, market breakdowns and the like, always take almost all players in the market by surprise.

It has been said that the market is the ultimate and only information processor about the world. If a business gets something wrong and does not learn, it goes bust. However, markets are a subset of ecological interactions. It is the ecology which has the final say. And if the ecology collapses, it does not matter how successfully the market has operated in its own terms, it will likely go down with the ecology.

Question: Despite all this information disruption, can wealth can buy better information and therefore buy advantage on the marketplace?

Non-profit ways???

Markets, Relationships and Trust (Morals?)

Anthropological observation: Most systems of exchange are about building relationships (systems of obligation, trust, gifting, connection and status) between people to further co-operation. Humans are relational animals before economic animals, and long before becoming ‘monetary transaction machines’.

Observation: Relationality still exists when price is not the only determinate of behaviour.

People can build relationships with small companies, with corner stores, with favourite stores, with their children etc. that are more than monetary exchanges.

Relationship building seems to be one reason why ingroup and outgroup bonds are so easy to form.

Companies have often tried to take advantage of relationality, and build up a relationship between customers and products, as if it were two way, when its primarily entrapping the customer..

By trying to make price and advantage the prime mode of exchange, in which the payment of money terminates the transaction, capitalist ideology breaks down human relationships to other humans and to ecology (natural world).

This is deeply anti-human, destructive of awareness and preventative of spontaneous beneficial non-capitalist co-operation from emerging.

Building connections and co-operation within and outside capitalism, and outside its self-generated problems, is likely a step towards building a survivable and less catastrophic world.

Commons

Emphasising co-operation without pretending people are never competitive or self-interested. Common land, common tools, common property exists throughout the world. I’ve argued that common energy may be the best way out of the energy crisis, as it puts responsibility for energy and pollution squarely on those that use it. It responds to local conditions, builds functional local democracy and participation, and has to guard against freeloaders or the project will fail.

It looks as though successful commons require locally agreed upon rules of use, and sanctions for violation of those rules.

Uncertainty and experimental politics

Assertion 1: Uncertainty is fundamental in complex systems. No matter how good the information system we will probably never have certainty. Few precise predictions can be guaranteed. The system is too complicated to map completely. No information system carries completely accurate statements.

Assertion 2: Uncertainty is not fixed by imposing the certainty that free markets deal with uncertainty and always produce the best possible result. Free markets are entangled in relations of power and deceit from the beginning. The ecology is the only real marker of correctness, and its response may be violent.

Assertion 3: Due to uncertainty, most policies, ethical positions and proposed solutions are experimental, and have to be treated as experimental. We don’t, and will not, know the full result of a set of actions until after we have acted, and we need to refine actions based on the result and the feedback it gives – and recognise this may change.

Assertion 4: We do now know, that current day neoliberal capitalism does not appear able to solve the problems it generates, and largely sweeps them under the table. It’s day needs to be over, but we may not know what to replace it with. This adds to uncertainty and the need for experiment.

Returning to systems

Observation: People live within systems. They do not live as isolated individuals. They live as interdependent people. This is fundamental. Without being able to be dependent on other humans all infants would die.

Observation: People live in the interaction of numerous systems of human and non human systems.

Observation: humans live in and create complex systems…. this has consequences. (I’ve dealt with this elsewhere, but uncertainty is primary).

Hypothesis: Attempting to impose any single system on all the others can easily lead to disaster.

Imposing ‘individualistic’ capitalism, or the ideology of individualistic capitalism on everything, is causing disaster.

It does not even produce an adequate model of what happens in real capitalism or real economies.

Methodological individualism is a distortion of reality, which serves an ideological purpose alone, to help maintain the power of capitalism and to prevent co-operative innovation and moves outside of the destructive economic system.

This set of reconceptualisations, which is not claiming to be original, is important because

  • humans act in situations/contexts
  • with particular understandings.
  • Understandings are part of the information system

Humans are hampered and encouraged by the contexts they live within.

If they have fundamentally incorrect understandings of the situation then the hampering to action from that situation will win out.

For example, it is easily possible to allege that most politics allowed to participate in capitalism are politics which help the reproduction of capitalism. There may be disagreements about how this is done, ranging from pure fascist theocratic authority, to pure libertarianism, to having working social services, but the main idea is to keep capitalism and its ‘class system’ going, even if we add another class to it to help that happen.

However we could imagine a politics in which the main concern was regenerating relatively harmonious human ecological relations, so that we did came to not deplete the earth, destroy other species, or poison the world. A politics which realised that without a working set of ecologies which include us, we cannot survive let alone survive well. This would be a politics and economics which would either displace or transform capitalist destruction, and make a new more human economics. It would at the least challenge the type of assumptions that we make about the world within capitalism.

The understandings proposed here can be trivial or wrong, but I assert they are better for dealing with our situations than the ones which have informational dominance and which seem to be helping towards continuing and worsening the multiple crises we face.

….

Attempt to summarise this on the next page.

Social roots of stupidity

June 24, 2022

I’ve said this before but why not again?

In the 80s right wing parties, in much of the Western World, embraced neoliberalism. The official excuse was the oil shock and stagflation (inflation and stagnation together). The Keynesian compromise did not seem to be working.

Neoliberalism is essentially the public doctrine that the free market liberates creativity and solves all possible problems the best possible way, and brings liberty, as the government “gets out of your life”

The secret doctrine of neoliberalism, which is pretty open, is that the market rules, and makes the rules, and government should aim to protect successful players in the market, as they are the best possible people. Hierarchy in the market is god-given. and market leaders are chosen by the market for their virtues. Even monopoly in a market is competitive according to ‘Contestability theory’.

This policy aims to give more power and wealth to the established wealth elites, and takes money, power and working conditions from the poorer and the middle classes. As a result, the new Wealth Elites are amazingly more wealthy and powerful than even the ordinary wealthy.

You cannot honestly sell these policies to the electorate in a democracy.

  • So you need culture wars about nothing.
  • You need to encourage anger and hysteria in the populace to inhibit calm dispassion
  • You need to encourage fear of other news sources
  • You need to make scapegoats who can be used to explain ordinary peoples’ losses, and who cannot respond in kind.

Democracy and a well informed electorate is anathema – because informed, powerful people would take back their power and ‘interfere in the market’ – perhaps to protect their local environment, stop their children being poisoned or shot, get better working conditions or higher pay etc. They might act to lower profit or reduce the wealth hierarchy – and this is bad, this is what neoliberalism protects corporations from, and so it endlessly promotes helplessness, distraction and displacement.

When neoliberalism clashes with the best knowledge we have, then the best knowledge we have has to be destroyed. People have to be told that by not believing this best knowledge they are being independent thinkers, and standing up to the left wing establishment who are supposedly oppressing them by promoting this knowledge.

The only real knowledge that can be allowed are worldviews that support neoliberalism.

So a significant number of people start believing whatever is reassuring: Climate change is not real. Climate change is not a problem. Covid restrictions are tyranny. Covid is a mild flu that rarely hurts anyone. Covid is a global medical conspiracy to impose communism. The US election was stolen by Joe Biden. Free Markets deliver liberty. etc etc

People become accustomed to believing improbable things, without wondering if they are true or not, or only reading those who support the untruths, and that becomes stupidity. One you accept one or two overtly false axioms you can be lead to believe almost anything.

Stupidity is a political policy- engineered to support and encourage plutocracy.

The Great Delay on Climate

June 22, 2022

We gave up on climate long ago. We have known since the 70s of last century what the result of burning fossil fuels would be, and…..

  • We have had decades of avoidance.
  • Decades of pretending it is not a problem.
  • We’ve had fossil fuel companies and corporate networks pushing against action.
  • Corporately owned and controlled media has pretended that there is a major divergence of opinion about climate change, and promoted the fossil fuel company line.
  • Various pro-corporate think tanks have spread false information, to delay action and keep the system going.
  • We’ve had governments trying to make sure its always someone else who acts first.
  • We’ve had pro-corporate political parties refusing to act at all.
  • We’ve had pro-corporate political parties claiming that climate change was politicized, as they went about politicizing it.
  • We’ve had governments sponsor and encourage fossil fuels with taxpayers’ money.
  • We’ve had confusion as in Germany where they increased emissions from lignite and locked in diesel while they almost went renewable.
  • We have had a reduction in emissions, accidentally due to Covid, but (in the last 30 years) we have never reduced the trend of increasing CO2 in the atmosphere.
  • We’ve had pro-corporate think tanks, media and parties shouting out that it will be the end of the world if we act to reduce pollution and environmental destruction.

As a result, the world will almost certainly will not act to achieve the Paris goals, and those goals will probably not have been steep enough to change the trajectory in any case.

We are gaining truly bizarre temperature levels in various places including the poles. We are getting almost global extreme flood and fire events. We are having collapses in animal and insect populations, that will disrupt the ecologies we depend upon for food.

It is logical to assume that as we reach tipping points, and the tundras release vast clouds of methane and we keep increasing the mining and burning of fossil fuels, that things will get much worse. This is only now the beginning.

And still we keep refusing to act.

It gets more difficult to act the more we wait, and the worse the conditions get.

However, we are learning the truth. Many corporations do not care whether your life and livelihood is threatened or whether their civilization is likely to collapse etc, as long as they can keep making an easy profit. Governments will rarely act against established corporate interests. We have also learnt that there are lots of people who will go along with them rather than face up to significant problems – and that they will think they are virtuous for acting that way.

The main problem hindering action on climate change remains politics and power relations, and there is little sign it is changing in the large scale. Governments and business will not do it for us. If we want action, we have to act ourselves and organize and act together.

The Positive effects of Neoliberalism?

April 15, 2022

If you want to discuss positive and negative effects of any movement, you usually have to ask “for whom?”

Definition

To some extent neoliberalism can be defined as the doctrine that the only part of society which is of any value is established business, and the bigger and more successful the business the better. A person who supports or benefits business is valuable, everyone else is not.

Positive effects

Neoliberalism has had a large positive effect on the earnings and wealth of already wealthy people.

The income of CEOs and high level executives has increased massively relative to the median income, while the income of ordinary people, factoring in inflation, has remained pretty stagnant, at least when compared to the increases in prosperity that ran through the 50s, 60s and early 70s of the last century.

The share of corporate profit in the GDP has increased, and that of wages has declined.

How has Neoliberalism achieved this?

It has allowed those hyper-wealthy people to buy political parties to help structure the market to transfer more wealth to them under the guise of ‘market liberty’ and the supposed efficiency of ‘free markets’.

It has shifted the tax burden onto the middle classes, by regularly diminishing the tax levels of the already wealthy.

It has diminished the possibility of democratic control of corporations through the same mechanisms of buying politics and tax legislation, so there is little restraint on corporate profiteering, corporate damage, or corporate extraction of wealth from workers.

Jobs have been transferred from wealthy countries to places where labour is cheaper, and this has helped prosperity elsewhere in the world, by accident, but it has significantly lowered the prosperity, work conditions, security and power for workers in the West.

It has diminished the number of large companies, as big corporations have taken over many different smaller companies. There is now little in the way of market competition, just illusory competition between parts of the same company. It has also consolidated centres of wealth and power.

Neoliberal Knowledge and Propaganda

In neoliberalism, you only listen to the market and to established profit. That is the only recognised source of wisdom and knowledge.

It trivialises the truth of information as what counts is: what sells; what promotes sales; or what promotes neoliberal power.

It has allowed the wealthy to buy “think tanks” and media, which promote neoliberal common sense, and rationality, and dismiss alternate views.

Science is to be dismissed if it suggests some forms of established profit making are destructive.

It has greatly hindered any attempts to mitigate or adapt to climate change – this will lead to problems for ordinary people who don’t have the money to move somewhere safe.

Neoliberal Virtue and liberty

It has reduced all virtue and values to profit, and thus furthered corruption.

In neoliberalism the established wealthy are virtuous, by virtue of their wealth, which proves virtue. Ordinary people are talentless fools or scum who corrupt the perfect market through laziness and envy.

The only liberty in neoliberalism, is the liberty provided by wealth and corporate hierarchy. Liberty comes down to what you can buy – liberty is to be enjoyed by the virtuous.

The Neoliberal State

Neoliberalism breaks up the ‘Welfare State’ that is potentially helpful to most people, and makes the State helpful to wealth and corporate power alone. Remember non-wealthy people are scum who need to be disciplined . Social service becomes persecutory.

This is what is meant by ‘small government’ – government defense of corporations, and a government that holds people down and gives no help unless they are wealthy and thus have virtue.

Any power used to contain the corporate sector, is an interference in the free market. Any power which supports corporate freedom to harm is the free market in action.

Some people think the only way that neoliberals can keep flourishing in a democracy is to support fascism (neoliberals love hierarchy), and to break up working class unity through culture wars. This seems to be happening.

Conclusion

Neoliberalism is great for the corporate sector although it may lead to problems if mass markets collapse through lack of money in circulation amongst not-so-wealthy people. It is not so good for ordinary people.

At best neoliberalism, is an idealism, proposed by people who know what is best for you.. It is a failed “vision of the anointed”. At worst it is a massive intensification of class war by the wealthy on everyone else.