Reaganomics is hardly neo-liberalism

On Tue, Nov 19, 2013 at 1:02 PM, meekerdb <[email protected]> wrote:

> On 11/19/2013 2:58 AM, Telmo Menezes wrote:
>
>> On Mon, Nov 18, 2013 at 6:13 PM, meekerdb <[email protected]> wrote:
>>
>>> On 11/18/2013 1:46 AM, LizR wrote:
>>>
>>> On 18 November 2013 22:41, Telmo Menezes <[email protected]> wrote:
>>>
>>>> On Mon, Nov 18, 2013 at 1:02 AM, LizR <[email protected]> wrote:
>>>>
>>>>> This is quite simple. Markets ignore the commons, hence a free market
>>>>> solution can't - or is highly unlikely - to work.
>>>>>
>>>> Yes, but this is circular. You're saying that the market cannot work
>>>> for things that you do not allow to be part of the market. The
>>>> government has to exist, otherwise how is the government to exist?
>>>>
>>>
>>> It isn't part of the market because no one wants it to be, not because no
>>> one allows it to be.
>>>
>>>>
>>>>  No one is going to clean
>>>>> up the commons, just as they didn't in medieval villages, because there
>>>>> is
>>>>> no incentive for an individual, or a specific group, to do so.
>>>>>
>>>> The medieval times were not exactly a period of free market, so this
>>>> would be an example on how government can solve things... or not. In
>>>> reality, many of the things we learned in high school about medieval
>>>> times are myths or gross simplifications
>>>>
>>>
>>> Not the tragedy of the commons, however. But even if it was the logic
>>> would
>>> hold.
>>>
>>>>
>>>>  The tragedy
>>>>> of the commons is one reason to have governments, because everyone
>>>>> wants
>>>>> something done that no one will do "off their own bat" - but they are
>>>>> prepared to chip in a donation towards the government doing it, or
>>>>> organising somone else to do it.
>>>>>
>>>> If they are prepared to chip in a donation there is no problem. If
>>>> there is money to be made, the free market will be glad to oblige. You
>>>> don't seem prepared to call things by its names: the idea of
>>>> government is that, when people are not prepared to chip in, they are
>>>> forced to do so, ultimately by violent means. The paradox here is that
>>>> you are trusting a small group of people with this coercive power and
>>>> then expecting this small group and power asymmetry to result in more
>>>> altruism.
>>>>
>>>> Again, reality is complex. Current forms of democracy would not work
>>>> if implemented in previous cultures, because people would not accept
>>>> the social norms that come with them. You cannot police everything or
>>>> even 1% of what's going on. Systems work because they become stable.
>>>> This stability does not come from consent (I was born into this system
>>>> and never consented to it, neither did you). It comes from the
>>>> emergence of sets of incentives. I disagree with many laws that I'm
>>>> not going to break because the personal cost to me would be too great.
>>>> Suppose I decide I don't trust the government with my tax money, so I
>>>> decide to take it instead and give it directly to organisations that I
>>>> deem worthy: hospitals, schools, research centres and so on. I would
>>>> end up in jail for "chipping in". In fact government robs me of my
>>>> freedom to chip in, because they take all of my "chip in" money and
>>>> then some, and then give it to banks.
>>>>
>>>> Incentives also emerge from free markets, importantly the incentive to
>>>> be nice to the people you trade with. Where there are more trade
>>>> routes there are less wars. If you are polluting the air I breath you
>>>> are being hostile towards me, and I am less likely to want to enter a
>>>> transaction with you. But these delicate balances can't arise under
>>>> coercion and market distortion.
>>>>
>>>>  And if no one does it, we all end up worse
>>>>> off (perhaps fatally so in this case). It ain't rocket science,
>>>>> although
>>>>> game theory has something to say about it.
>>>>>
>>>> Prisoner dilemma scenarios don't magically disappear once you
>>>> introduce coercion. In fact, I argue that they multiply.
>>>>
>>>
>>> You seem to be arguing against a straw man here.  I explained why the
>>> free
>>> market can't fix the tragedy of the commons. You haven't answered my
>>> point.
>>>
>>>
>>> And he's so concerned with anti-government straw men
>>>
>> I see I walked into a trap. Look back in the archives. You mentioned
>> your belief that people question global warming because they don't
>> trust the government. I argued that it's not such a bad idea to
>> distrust the government -- but never gave this as a reason to distrust
>> scientific models. Where's the straw man?
>>
>>
>>  that he hasn't noticed
>>> that a market requires government (including coercion) to define
>>> ownership
>>> and punish fraud.  Without government you couldn't own any more stuff
>>> than
>>> you could carry and defend by force of arms.
>>>
>> No, without cooperation you couldn't own any more stuff than you could
>> carry and defend by force of arms. The dogma you're proposing is that
>> central government is the only way to promote cooperation.
>>
>
> No, just the only way we know that works for nation sized groups.
>
>
>> Many alternatives have been proposed, like private arbitration courts
>> (this exists already, to a degree). If I enter a contract with you, we
>> have to agree on some court to have authority over disputes. Of
>> course, I'm free to ignore the decision of the court, but then will be
>> less likely to have people agree to enter contracts with me. There are
>> many others, you can google them. Or you can read this, for example:
>>
>> http://www.daviddfriedman.com/The_Machinery_of_Freedom_.pdf
>>
>> Could this be misguided? Sure. But let's not pretend that the level of
>> sophistication of the proposals for more freedom is lower than it
>> actually is.
>>
>
> A Randian fantasy.  What are going to do when someone doesn't want to
> abide by the contract they agreed to.  When they bribe a judge to find
> against you.  When they decide to cooperate by excluding you from the
> community.  Do you realize that this is the way it was in tribal life and
> still is in cults (you're always free to leave). Government isn't some
> imposition from Mars.  It was developed over millinea to solve those
> problems as they arose.
>
>
>> Another part of the illusion is the level of safety provided by the
>> government over your personal property. I see people trading a lot of
>> freedom for some illusion of safety.
>>
>
> I see a lot of people waving their arms and ranting about "freedom" they
> never used but want revserved just for themselves.
>
>  This illusion is being shattered
>> now, as a lot of people lost their houses and pensions after doing
>> everything the government told them to do.
>>
>
> Nobody around here lost their house because of something the government
> told them to do.  A lot of them lost their houses because they dealt with
> people who did things the government used to forbid but got changed by the
> neo-liberals.
>
>
> Brent
>
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