This is my rough draft for a script for a response-video to Paleocrat. Paleocrat's videos can be found here:
Part 1:http://www.youtube.com/watch?v=t-tnG-GELK4
Part 2:http://www.youtube.com/watch?v=uq33ki2_o-8
I, the lowly migkillertwo, have been endowed by the almighty paleocrat with a video response discussing just some comments I left on his video. I just wonder why someone as ignorant as I am and someone who is part of the "mongrel horde" warrants the devotion of over 20 minutes of life. I guess I'm trying to get at the fact that I'm very flattered that you just left a substantive response (not that I agree with the substance)
There were several points in these two videos Paleocrat made, and they were kinda jumbled, but I'm going to try to make my response as clear and ordered as possible.
The First point I want to tackle was Paleocrat's last point about Anarchy being impossible because a state would just rise again just if only a few people want to implement a state. Paleocrat's more thorough explanation can be found in his video "Anarchist Conundrums"
http://www.youtube.com/watch?v=IUSFi4PvghE
This claim is false on both theoretical and empirical grounds
Theoretically speaking, this claim is false because a marginal state cannot be sustained. To clarify, a marginal state is a state whose will is forced upon the people purely by violence. For instance, here in the United States, we don't kill very many tax-evaders. Ergo, we do not have marginal state. Robert Mugabe's state was much more marginal than our own state, and a bank robber holding his hostages at gunpoint is a purely 100% marginal state. No marginal state could exist for a prolonged period of time for two big reasons
1: People are not going to blindly accept that this marginal state is legitimate
2: Violence is expensive, and unless people recognize the legitimacy of that state, the state will not be able to use violence.
Empirically speaking, it is false because there are examples of when civilizations existed without a state. The earliest permanent settlements archaeologists have been able to unearth had pretty much equal buildings and no sign of a hierarchy. There were no palaces or chiefly residences. The oldest civilizations were stateless. The first large, ornate buildings that have been unearthed were temples. The oldest states were theocracies.
Another example is Pre-conquest Ireland. The Irish before being savagely conquered by the British were, practically speaking, stateless, and they were so for a thousand years, and it took the British a century to finally conquer Ireland.
I like Confederalsocialist's explanation for this phenomena. Ireland was difficult to conquer for the same reason you can't tame Afghanistan. There is no structure by which you can coerce people. It was like Napoleon going to Moscow after the Czar had left. Unless there's a fantasy structure in place, you'd have to subdue every town and village in order to establish a state.
In sum, anarchy is possible because establishing a state in a stateless society (By stateless society, I mean a society where there is no state and people do not believe in states, not a once-statist society wherein the government has been completely eviscerated by a violent Coup) would be like herding cats.
The next point that Paleocrat makes is that Free trade and relying heavily upon imported goods is like "putting all your eggs in one basket", and therefore, to some degree, independence and self-sufficiency is the ideal.
Empirically and theoretically speaking, this is wrong
On the empirical level, this is wrong because there has never been a famine in a free-market society.
Theoretically speaking, the reason for this is that the price system causes people to shift buying habits. If one source of food can no longer produce the required amount, it will be bought elsewhere. Sure, it'll be bought at a higher price, but it will not completely disappear
The next point Paleocrat makes is criticizing me for advocating an ideal when Statism is the status quo. Do you fail to see the inherent hypocrisy in such a statement? You yourself are a distributist. You are advocating that, rather than the status quo where productive property is concentrated in the hands of the few it ought to be dispersed among the general population.
The next point was a response to my point that less income equals less demand. I was arguing this point because if wages really are and really do plummet here in the united states thanks to outsourcing, then we will stop outsourcing because there will no longer be a need to outsource because there's no demand to satisfy.
Paleocrat's response was very semantical. The economic literature uses "demand" and "spending" synonymously when dealing with macroeconomics.
The next point that Paleocrat makes is one that is incredibly popular. Corporations hire factories which pay their workers very poorly and even use child labor. Basically those big bad evil corporations build their products with wage-slavery.
Empirically speaking this argument wouldn't even carry against market anarchy, the most radical tradition of capitalism. Every single nation has, at some time or another, employed child labor. Sweden used to do it, Western Europe used to do it. The UNITED STATES used to employ child labor. "wage-slavery" and child labor is an inevitable result of industrialization.
And why complain about this anyway? For children, the alternative to working in a sweatshop is subsistence agriculture, drug dealing, or prostitution.
Its easy to understand why. In a purely free market, no two parties will enter into a contract unless they both benefit. So the only way you could plausibly rid the world of sweatshops would be if people were forced to work in sweatshops by the state.
I want to cap my discussion about wage-slavery by saying this: By calling people who work menial jobs for meager pay "wage-slaves", it marginalizes the brutality and barbarism of real slavery.
The next claim that Paleocrat makes is that wages for middle-****Americans have been stagnant or have, for some, been depressed over the past 30 years.
Well first this claim is false, according to the Census Bureau. I'll just quote Daniel Griswold of the Cato Institute
If we define the middle ****as households earning between $35,000 and $75,000 a year, the middle ****in America remains a huge demographic group. According to the Census report, Table A-1, the middle ****made up 33.3 percent of U.S. households in 2005. That share is indeed somewhat smaller than in 1980, when 38.2 percent of households earned between $35,000 and $75,000 a year in real (inflation-adjusted) 2005 dollars.
Aha, so the middle ****really is shrinking if not exactly disappearing, the alarmists might respond. But the Census numbers also show that over the past 25 years, the share of U.S. households earning less than $35,000 a year has also shrunk, from 44.5 percent in 1980 to 38.4 percent in 2005. Meanwhile, the share of households earning more than $75,000 a year has jumped from 17.4 percent to 28.3 percent.
In other words, if the middle ****in America has shrunk, it is only because so many formerly middle-****households have moved to the upper-income brackets, while a significant number of households previously in the lower brackets have moved up to the middle ****and beyond.
The solid economic growth of the past two decades has indeed lifted all kinds of household boats. By the most basic measure of real household income, a broad swathe of Americans are better off than they were 25 years ago—thanks to growth fueled in good measure by lower marginal tax rates, expanding trade, and a more flexible domestic economy.
The second problem is that the people who argue this fail to take into account the fact that health and other fringe benefits have become an increasingly large portion of total compensation packages for workers.
The next claim that Paleocrat makes is that Distributism (that's his economic philosophy) embraces the division of labor and the allocation of labor where they are most talented.
Well first and foremost this is completely antithetical to an economic theory which advocates self-sufficiency.
The second point I want to make is a problem that I have with distributism, and that is the problem of economic calculation. Its just as strong here as it is with Socialism. Central planning cannot work because regulators cannot know how to plan the economy. If central planning is preferable to free-market capitalism, Then we have to believe that regulators and "central-planners" are in fact more knowledgeable about the market than entrepreneurs, workers, and investors. But this is absolutely absurd. If someone knew more about the market than the market players themselves, then they would be working as an investor, not as a regulator.
In my next criticism of Distributism, I'll just paraphrase the mises institute scholar Thomas Woods. It is not always preferable for a man to own his own business than to work for another. Managing a small-business is an extremely long, hard, and tedious endeavor. Some people would rather spend more time with their families and have a more constant and secure living. Lemme quote Ludwig von Mises take on various histories of the Industrial Revolution
It is a distortion of facts to say that the factories carried off the housewives from the nurseries and the kitchens and the children from their play.These women had nothing to cook with and to feed their children. These children were destitute and starving. Their only refuge was the factory. It saved them, in the strict sense of the term, from starvation….the fact remains that for the surplus population which the enclosure movement had reduced to dire wretchedness and for which there was literally no room left in the frame of the prevailing system of production, work in the factories was salvation. These people thronged into the plants for no reason other than the urge to improve their standard of living
The point that I am making is simply this: It is not always preferable to own a small shop or a farm (as the industrial laborers in the Industrial revolution) than to work for a rich "greedy capitalist"
Finally, my last problem with distributism is its inherent hypocrisy. In order to equally distribute property and move away from the status quo, you have to first take the property of someone else. Ergo, only some people have a real right-to-property. Distributism is not like Socialism. It advocates the right to private property, unlike Socialism which treats property as a fantasy.
The next point is about the demand for manufactured goods. You say that the demand is just as high today as it was decades ago, and that I "balked" at such a claim.
What I was trying to say is that stagnant demand is what has killed manufacturing jobs in America. The demand for manufactured goods simply has not kept pace with the skyrocketing productivity of the manufacturing sector. The production-per-man-hour of labor, over the past roughly 30 years, has gone up by 103%, but only 50% in the non-industrial sector.
Next I want to deal with Paleocrat's appeal to the Bible talking about "nations". If we are to take paleocrat's exegesis seriously then I guess slavery would still be morally permissible in our society. We, of course, know that the Bible would have to endorse slavery because of societal customs, just as it had to endorse nationalism.
Finally, I want to address the claim that capitalism causes wealth to be concentrated at the top.
I have two main problems with this contention
First, as we saw earlier, most sectors of our economy have performed better over the past 30 years. So this argument would only carry if the Rich were somehow getting rich at the expense of the poor, in essence, they were TAKING property away from the poor.
Second, the problem is that people at the top produce an enourmous amount of wealth. 20% of the people in this world (those living in developed countries) own 80% of the world's wealth. But this isn't because the West is stealing from the 3rd world, it is because 20% of the world produces 80% of the world's wealth.
Finally, Performance of CEOs isn't the sole factor which has contributed to their "obscene" salaries. The tax code, as it stands, makes it very efficient for corporations to pay executives these "obscene" wages.
More on that in the description.
Thank you for your time, I hope you enjoyed this adventure in the world of libertarian politics. Have a nice day.
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Middle ****squeeze?
http://www.cato-at-liberty.org/2006/08/29/middle-****squeeze/
Executive pay
http://www.youtube.com/watch?v=tOHcfiMwlAQ
Anarchic Ireland
http://www.youtube.com/watch?v=W1hBgcyEL-A
Civilization predates statism
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