rotting bones wrote: ↑Tue Jan 19, 2021 6:46 pm
As for having info, I've said several times that demand is not a kind of knowledge.
And yet supply, demand, and how people prioritize their expenses are all essential information.
Under your system, am I allowed to choose between beans made by coop A and those made by coop B? Can I pick a computer by coop C or one by coop D? Am I allowed to work wherever I like? Can a coop hire whoever they light?
If not, we're essentially trusting the voters to make a choice based on information they don't have.
If yes, then you do have markets and competition.
I know that my proposal will keep many enterprises alive that won't make it in a free market economy. I just don't understand why economists think I should care. I want some financially inefficient enterprises to thrive when there is popular demand for them. Eg. When environmental regulations make capitalist businesses unprofitable, when the people want to support traditional craftsmen who can't compete against robots, etc.
No disagreement here; but I should point out that nobody, outside of the most contrarian type of libertarian, opposes that kind of measures!
On more local government and smaller groups: an idea to look at is subsidiarity. The basic idea is that a local issue should be treated by the smallest political entity that is capable of dealing of it. Basically, everything than can be handled at town level is handled there; if the town can't, the county, or the region, then the country, then a larger supranational entity.
Central government only handles that which can't be done at a local level.
That's not too popular on the left since it's mostly a Christian Democratic policy, advocated by Protestant and held as a basic principle in Catholic thought...
What about people like me, who are alienated from our home communities? Will you sweep us under the rug because we are a minority?
That's a very good point. A few ideas on that:
- There should be a mechanism for rules to be applied from the top down. Local communities can have a significant amount of leadership, but there must be ground rules at some point. Local communities should get a great deal more political power, but no 'white only' towns, please, or local tax havens.
- Moving between communities should be possible and not only in a theoretical sense but in a real, practical sense. One problem we have with the UE is that subsidiarity is enforced between the UE and member countries, but not below the national level. It's counter-intuitive but we may get better results by moving power to even more local levels. Currently, the Polish conservative can make life very difficult at a national level, and practically moving to, say, Germany is a very significant change most people won't undertake. On the other hand, if people could move to a more liberal Polish city where other laws are applied, this might make things easier. (It's not ideal, mind. But OTOH wishing conservative voters would just disappear isn't practical).
- Generally it would provide a testing ground for a wider variety of approaches.
On co-ops! I've got nothing against the co-op model; but I don't think it's necessarily the best approaches in all cases.
Take, for instance, Pfizer, which is currently worth 181 billion dollars.
It has 81800 employees; that means under a co-op, each would own about $1.443 million. Among other consequences, this means a new employee can't, in practice, buy his own share. Another problem is what happens if someone leaves Pfizer to go work at a much smaller co op.
More generally, on ownership of the means of production:
Currently, a capitalist enjoys the luxury of a diversified portfolio. Pfizer's current owners don't just invest in pharmaceuticals; they have capital in plenty of other sectors too. They do that for the very simple reason that you don't put your eggs in the same basket.
I don't see why, under a more egalitarian system, ordinary folks shouldn't be allowed the same luxury.
Owning a share of the company/coop your work at is all right, but there are all sorts of legitimate reasons why you don't want all your assets there: you don't like the way it's currently run (yes, this can happen even with worker democracy!) or it's just a source of extra income that you don't particularly care about.
I'd suggest a more general solution of a very distributed ownership of capital, which could take many forms: co-ops, yes, but also investment by small shareowners or investment funds handling small scale portfolio.
The obvious rebuttal to that is that it's just reintroducing capitalism through the back door; to that I'll answer that one specific issue is the concentration of capital and that we can deal with that.
Basically, everyone gets to own some capital, and this is enforced by preventing concentration of capital beyond a certain degree.
That is indeed feasible:
a) If you think socialism is possible at all, then I'd like to point out that if you can socialize the economy right now, tax havens, capital flight and huge concentrations, then dealing with the much simpler problem of preventing capital accumulation before it reaches toxic levels should be fairly easy.
b) The much harder problem of dealing with 19th century style rentiers has been solved before, by -- as Keynes charmingly put it -- euthanizing them. For that matter, France was able to nationalize a solid chunk of its economy as late as 1981. Again, the easier task of redistributing parts of much smaller portfolios is entirely possible.
Nationalization and state ownership of a sizeable chunk of the economy is a possibility too, and to some extent desirable. Currently, the net worth of your average Western state approaches zero (taking into account both assets and debts). Considering that everyone outside hard core libertarians has a very long list of what they'd wish the state would do, it's completely absurd to entrust so much to an entity that for all practical purposes owns nothing at all.
On the other hand, I don't think state should have too much control over the economy, production and investment, for the very simple reason that it's not very good at it.
Leaving the Eastern bloc entirely aside, the track record of state capitalism in the Western world is mixed: sometimes positive (high speed trains, space programs), sometimes successful but entirely at odds with what people wanted (France's civil nuclear program), sometimes sub-par (France's plans for telecommunication, networks and computing, which worked but undeniably outperformed by Silicon Valley solutions and reduced to irrelevance in a few years) and sometimes a complete failure (Britain's deep crisis in the 1970s, various attempts at providing home grown alternatives to Google).