Thursday, February 16, 2012

Reading Bookchin.



Murray Bookchin is slowly becoming one of my favorite libertarian thinkers. He was the founder of many movements, the Social Ecology movement, the Communalist movement, the idea of Dialectical Naturalism. He was fascinating, brave, imaginative, passionate, eccentric, and highly personal.

He was a great lecturer and writer, always interesting. I've gravitated more towards his views, particularly on Social Ecology, and the radical possibility for social change through technology, post-scarcity thinking and other things. I'm currently reading his essays on Libertarian Municipalism, and I admire the idea. Bookchin's theory of town halls and interconnecting systems of federations give an appealing alternative to modern life. He was a libertarian socialist, but not an anarchist for the latter part of his life. It reminds me of how Proudhon later on in his life moved to a system similar to a minimal state. This quote by Proudhon, addressing his critics explains it well:

“Since the expression ‘anarchical government’ is a contradiction in terms, the system itself seems to be impossible and the idea absurd. However, it is only language that needs to be criticized. … It means that once industrial functions have taken over from political functions, then business transactions and exchange alone produce the social order.” 

While I'm not sure I can accept, or even defend all his ideas, I am certainly in awe of his legacy. If you haven't read him or seen any of his lectures, I suggest you start with Post-Scarcity Anarchism , a collection of essays, and see his lecture "Forms Of Freedom". Watch the first part here:

Tuesday, January 17, 2012

Some empirical research on the Labor Theory of Value.

Here are some interesting pdfs on the empirical strength of the LTV.  People who believe that Austrian, marginalist economics can be absolutely proven a priori need to ask themselves: If price tends to gravitate toward the cost of labor in actual markets in a way that is empirically provable, is there something wrong in your a priori analysis?


Monday, January 16, 2012

The Different Kinds Of Democracy.


Democracy: Just two wolves and a sheep voting on whats for dinner? Or an empowerment to the individual? This is an issue that I think is very confused. Noam Chomsky sees democracy as the main goal of society, while H L Mencken said this in Prejudices, Fourth Series (1924):

For if experience teaches us anything at all it teaches us this: that a good politician, under democracy, is quite as unthinkable as an honest burglar.
Is democracy good? Does it promote freedom? Or is it mob rule? Does it infringe on the individual rights of the minority?

It is important to note that all democracies aren't equal. They all talk about majority rule in some way, but not majority rule in the same way. Majority rule, or rather majority decision making isn't inherently good or evil. In my mind, some democratic systems are barbaric, oppressive, negative and corrupting. However, some democratic principles are useful, liberating, and beautiful.

Now, there are a lot of different democratic systems, but I'm only going to analyse these three:
  1. Representative Democracy, as in the system of democratically elected political leaders that is the most common in the western world
  2. Statist Direct Democracy: As in a system of government where the people directly control the laws through democracy rule.
  3. Free Association Democracy: As in democracy that is voluntary and based on the principle of free association. 
Let's start with Representative Democracy. I think, with the last 100 years of western civilizations attempts at making the world a better place through electing new representatives every 4 or five years has proven it is not an effective, fair, or moral system. I don't think it requires a great deal of intellect to dismantle this sort of system, but somehow people are still repeating it's empty and often false rhetoric like drones, but that's probably because they've been fed this sort of thinking from a very young age. Very often you'll hear these people say things like "a real democracy would not treat minorities this way" like majority rule is not inherently oppressive towards minorities.

However, the main flaw of this, from a democratic standpoint, is that the power is not directly in the hands of the people. The power is in the hands of those who decide what questions to ask, that is, the congress, the parliament, the elected representatives. 

The elected representatives do not represent you, at. Governments and the people who represent them have a self-interest, contrary to what many moderates and liberals seem to assume. Government in a Representative Democracy does not work for you, it works for it. 

The problems with a Representative Democracy are almost too many to count, but I'll mention two. First of all, it divides people against each other by providing people with package deals. For our purposes, you get the Democratic and the Republican. Instead of reflecting independently on each issue, you most likely have to compromise on issues to get one issue across. Let's, for example say you believe that grown adults should be able to carry guns or firearms freely, a traditionally Republican or Conservative issue, but your other opinions lean more left, say, you believe in universal health care and ending the drug war. What candidate is going to meet those preferences? If you vote Republican, you most likely won't get free health care, and if you vote Democrat, you might get some health care reform, but guns will probably be more heavily regulated. 

And secondly, the promises of power that is inherent in representative democracy are corrupting, as we know by both looking at the present systems and the past. People will do many things for this kind of power, like providing people with empty promises (see: Obamacare), favoring the rich and powerful, giving privileges to some and oppressing others, all depending on who's in the majority. As Butler Shaffer put it:

"Democracy is the illusion that my wife and I, combined, have twice the political influence of David Rockefeller."
What about statist, or governmental Direct Democracy? Direct Democracy is, in comparison with most other governmental system, on of the most empowering to individuals, collectives and communities. It means that people vote directly on issues without electing a representative. It is often called pure democracy. It's best features are the absence of a power political elite, an equal saying in issues, a better representation of the will of the people than the often corrupt representatives of the above mentioned system. This sort of system radically decentralizes power to individuals and communities.

But there are clear problems with the system. In Switzerland, a land that practices direct democracy more than any other country, and has through it's system given the people more power and liberty than most other places, the tyranny of the majority-problem is still very prevalent. They've banned Minarets and deport foreigners if they are convicted for a felony. Religious rights are not respected, people are seen as either countrymen or foreigners, and the majority becomes the oppressor of the few. That is precisely the problems that lead the Founding Fathers of America to write down the constitution, and why most countries have some sort of limit to the power of democracy.

Statist direct democracy implies some very authoritarian things. All statism incorporates violence. Countries are artificial groups. Nature isn't naturally divided in to plots of land, we as humans did that, and the idea that the majority of the population in any given plot of land on earth has the right to decide for and aggress against the people in the minority is absurd. A nationality is an involuntary identity, forced down your throat. You did not agree to become a country-man, you did not agree to the principle of direct democracy, not by invisible social contract, not by merely existing. If you happen to disagree with the majority, and they impose your will upon you, they have no moral right to do so.

But, what about the last democracy I mentioned? It is the sort of democracy I personally advocate. I call it Free Association Democracy (FAD), some might call it participatory democracy or they call it voluntary direct democracy. It says the issues that effect a lot of people, should be decided voluntarily by the people who are affected by it. It does not require a state, nor does it imply an infringement on personal freedom.

Individual rights are important, and without them, a free and harmonious society could not happen. But individuals are social animals, they seek groups and collectives, based on preferences, goals and ideas. These groups are voluntary, unlike the groups of Representative or State Direct Democracy. Under FAD these associations, like your local community, your church, your workplace, your children's school, your charity organization, whatever group you may associate yourself with, works in a way that improves your individual say in the issues that are relevant to you.

In all of society, it is demanded that your give up your labor, time, freedom, pleasure and profit to bosses, companies, majors, senators and presidents. Why should it be this way? These hierarchical systems could, and should, be replaced with a system of voluntary direct democracy. The group treats each other as equals as opposed to a system of masters and slaves. A democratic system based on free association, individual freedom as well as collective freedom, a system of equality, of liberty. A system which does not claim itself to be the rightful moral owner to you and freedom, based on aggressive force or bribes.

While this sort of free association participatory democracy might not work for all economic or social relationships, it sure as hell beats most of them. This is the idea of anarchism, of libertarian socialism, of handling things locally, collectively, without the use of force. It is not a violent system of majority oppression, it's a system of groups voluntary using bottom-up methods of enforcing individual and collective freedom.

Thursday, December 29, 2011

The Labor Theory of Value.


After reading the neo-mutualist thinker Kevin Carsons books, "Studies in Mutualist Political Economy", "Orginsation Theory" and his rejoinders to the Austrians straw men that rained upon him after publishing SiMPE,plus some posts on the swedish blog http//:mutualism.blogg.se I've become more interested in the LTV, or the labor/cost theory of value.










According to Wikipedia:

 The labor theories of value (LTV) are heterodox economic theories of value which argue that the value of a commodity is related to the labor needed to produce or obtain that commodity

According to some economic thinkers, especially those of the Austrian school, it is false, because it doesn't take subjective value and marginal utility in to account, (which according to Carsons "Austrianized" LTV is false).

They also use the so-called "mudpie" argument. It says that the LTV would mean that a pie made of mud, and a pie made of for example cherries would have the same price, since the same amount of labor was put into it. Therefore, since most people would rather buy a pie made of cherries rather than a pie made of mud because of subjective values.

Sure, the cherry pie has higher utility for the consumer than the mud pie has. No follower of LTV denies this, at all. But do they pies have the same value? The follower of LTV says "yes". The value, or the labor that was put into making the pie is still the same, and the person who made the pie would still charge the same. Just because the consumer would not PAY the producer the FULL VALUE of the mudpie, it does not change the VALUE of it.

Now, let's say there's a man who is extremely poor, and walks into the café where the mud pies and cherry pies are sold. If the mud pie required an equal amount of labor for the baker as the cherry pie did, and sets the cost as such, then the poor man would surely buy the cherry pie over the mud pie. If however, the baker finds a way to reduce the amount of labor needed to create a mud pie so much that the price would be virtually nothing, the extremely poor man (emphasis on the EXTREMELY) might consider buying the mud pie, just to have something to eat. Of course, most people are not extremely poor, and not to fond of mud pies, so it would largely be a waste for the baker to make them.

The labor theory of value does not deny that subjective value plays a part in deciding market PRICES, it only says that labor is the equilibrium value that price tends toward. Desire may affect the price of a good, but labor CREATES the value. We all desire oxygen, for instance, but even though air is high on our value scale, it doesn't have market value. That is because there was no LABOR involved with creating the air. Now, if we all ran out of air, Space Balls style, and labor would be required to produce air, it would have VALUE. The cost of producing the air would be a key factor to deciding the price of a good.

DESIRE does not create value. We desire a lot of things that we would not pay for in a market, as the aforementioned "air" example.

Kevin Carson writes on his blog:

.....the LTV and other production cost theories of value simply assert that the price of reproducible goods gravitates toward a "normal" equilibrium value determined by cost of production (which is nowhere directly refuted by the subjectivists, since their claim to have replaced cost with utility as the basis of value is based on a very specialized and artificial understanding of those terms, and not on their meanings in ordinary usage).
So, the LTV is not about asserting that people value mud-pies as much as they value cherry pies. It's the idea that price is dictated or gravitates toward production cost, and it does not deny that subjective wants exist.

Now, while I do not have the economic knowledge fit to defend the LTV on court at all, and I don't have any authority to say that marginalism is wrong and LTV is correct, I at least hope this made some of my marginalist friends think about. I'm not entirely certain of my analysis, I have some trouble grasping the economic language, especially in English, at times.

Wednesday, December 28, 2011

How to dismantle capitalism*: Open-source industrial revolution.



Left-wing market anarchists and other people who oppose the hierarchical functions of state capitalism really need to watch this TED talk. It discusses the open-source website and project http://opensourceecology.org/. If this idea is spread world-wide, imagine the society we'd have!


*Capitalism meaning wealth that is centralized to the hands of a few people through government theft and privilege, not the principle of free trade (which can happen under any political system, communist or fascist).