Ok, gruff, I'll jump in - a bit!

This thread started being about what it means to own something. It's
meandered a bit, as threads do, and has arrived at questions
concerning the recent financial crisis and what has been done, not
done, done badly, done well, could have been done, etc. This has given
rise to considerations about systems, fixing systems, changing
systems, whether systems are central, peripheral, whether we should be
more concerned with basic questions of human nature.

Phew! Cooking stuff down like this is strenuous, but I often find that
it is helpful in a complex discussion to briefly recapitulate what's
been going on.

I'd like to try to look at some of the stuff you and Vam have been
working on within the original context of the thread. One of the basic
characteristics of "free-market capitalism," which gruff prefers, is
the primacy it gives to the concept of the sanctity of private
ownership. (I won't go into the issue of whether, or how far, this
system is actually free and fair - although it is a major point for
discussion). But, simplified, the basis of capitalism is personal
possession. Using a very old way of thinking (followed, among others,
by Marx), agreed units of energy, surplus to the basic needs of
survival and living, become the property of individuals, who use them
as they wish (money/capital). They can be traded for goods or
property, given to others (inheritance or gifts) or "invested," put to
use in such a way that their values multiply. This "surplus value"
becomes the property of the one who has invested the original units
(and, no, I don't want to get into a discussion of Marx's theory of
surplus value here), less the ensuing costs (particularly labour
costs). If a "fair" price is paid for this labour, and those involved
in the value-increasing project are genuinely empowered in the process
and given a share of the proceeds of success then it need not
necessarily seen as exploitative (although, for Marx, it always is).
It is, however, a system which invites both exploitation (both of
people and environments) and speculation. This has been, historically,
one characteristic of market capitalism. Another has been a massive
creation of surplus value. Gruff sees the way forward in preserving
this while regulating to minimise the opportunites for and adverse
effects of exploitation and speculation.

This is, now pay attention, my US American friends ;-), what Western
Europeans have been practicing since the 1950s. It's called "Social
market economy" (soziale Marktwirtschaft) and is one of the basic
ideas behind the European Union. It has been under strong pressure
since the 1980s, particularly by neo-liberal thinkers inspired by
economic thinkers like Milton Friedman and Friedrich Hayek (and their
political avatars, Reagan and Thatcher).

The crash is, to a large part, the result of the prevelance of those
trains of thought, the end products of the developments in the
eighties, which saw state/societal regulation as deeply suspicious,
something to be reduced as much as possible, and inclined to see
markets as being largely "self-regulating."

The chance which the crash gives is to critically examine some of the
basic premises behind the capitalist system, particularly in the free-
wheeling incarnation which was praised as being so successful from
1989 to 2008. You can choose to repair the system, but otherwise leave
it basically intact. Maybe move more towards social market economics,
increasing controls and (trying to) close off avenues for abuse,
exploitation and speculation. The basic principle of private ownership
remains unchanged, perhaps, because it is argued, that it best takes
into account the idea of the centrality of self-interest as a
fundamental characteristic of human nature. This, it seems to me, is
the path gruff suggests.

Vam's preference (one which I would personally share) - if I
understand him correctly - is to broaden the aspects of human nature
on which we base the structures along which we order our societies, to
include such concepts as solidarity, fairness and compassion; also, it
can be argued, fundamental characteristics of human nature. This,
however, does seem to involve a more socialist vector, in which the
primacy of private property becomes more relativised. This need not
mean a new Soviet system (I would sincerely hope not!). It does have
the advantage of allowing us to examine some sacred cows a bit more
honestly. For example, what about ideas of guaranteeing all members of
society a basic income which would guarantee their material existence,
irrespective of work? Should we think about imposing limits on how
much can be inherited (given that people would no longer have to worry
about the existential security of their offspring)? Could we develop a
sense of communal moral suspicion of the idea of making profits out of
the illness of others, or the basic principle that health, like clean
air, water, food and a roof over one's head, is a basic human right?

Personally, if the result of the crash of 08 is more "social" in the
market economy, then I'd be happy enough. Although I would regret the
(once more) lost chance to look more deeply at the ways we organise
ourselves. But the window of of opportunity is closing. Still there
are other things going on in the world. Maybe we should be looking
more closely at South America. People like Evo Morales in Bolivia, for
example. I don't dare mention Hugo Chavez, for fear that Don will come
over here to beat me up :-)

Francis

On 3 Aug., 19:03, gruff <[email protected]> wrote:
> Chris actually got this round going back on Aug 2, 1:11 pm with his
> series of one-liners but I'd like to see the both of you in this as
> well.
>
> Nice summary Francis.  Yes, I can see we are both arguing along very
> similar lines and aiming at the same goal.  But I'd like to see you
> and Chris get into the fray as well.  The more voices the more stable
> and productive the discussion would be.  After all, we each know each
> other well enough to assess each others words fairly well.
>
> /e
>
> On Aug 3, 9:23 am, frantheman <[email protected]> wrote:
>
>
>
> > Now this is what I call a discussion, Vam and gruff! (BB47 and
> > deripsni could both learn from you :-))
>
> > Maybe it's because the three of us have been around here for a while
> > that I can really appreciate what both of you are saying, because I
> > know something about the way the two of you think about a lot of
> > things. Actually, I see you both arguing along similar lines; Vam has
> > a professional background in systems analysis and quality management
> > and has a lot of experience in the practical work of building, using
> > and changing systems, while keeping his gaze frimly fixed on the goals
> > (QM as it should be be, but, in my experience, so seldom is); gruff as
> > someone who sees people/societies trying stuff, getting into messes,
> > starting over and, somehow, sometimes, getting it a bit more right the
> > next time (that old 51%/49% optimistic analogy that I often doubt but
> > always admire).
>
> > So ... I think I'll stay out of this for a while and hope you both
> > carry on!
>
> > Francis
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