Posts Tagged ‘Supply and demand

13
Jan
12

Arguments for Communism

A while ago, I wrote a post listing brief counterarguments to the claims usually used to “disprove” Communism. To this day, it’s been one of the most read pieces I’ve written, so I thought it might be time to expand it a bit. Written below are the most common arguments people use against Communism, and my responses to them.

 

Communism Has Been “Tried and Failed”:

The problem with this commonly used argument is that more or less everything has been tried and failed. Take democracy for example. Can I argue that democracy is a futile endeavor because it failed not once but multiple times it was tried?

"I propose we write really depressing plays!"

If I recall, democracy didn’t work for the Athenians.

"I propose we totally rip off of the Greeks!"

And the republic didn’t exactly wind up being a lasting facet of Roman society.

Even in America, democratic government needed to be reworked- but despite the many failed attempts at democracy, the idea that anyone today would want anything other than a democracy is laughable. Let’s keep this in perspective before claiming that Communism was tried once and should now be abandoned for all time.

 

Communism is “Great on Paper”:

I’m particularly irked by this argument because most everything is “great on paper”! Now there’s no real response to the whole “Communism is great on paper but doesn’t work in application” because of how broad it is. Really, it’s more of a prefix to an argument (such as the ones below), and any response is going to have to be more specific. Still, if you really do need an immediate response, simply point out that egalitarian, classless societies that shared work and held common property have existed since the beginning of time.

Remember us?

Communism Conflicts with Human Nature:

I’ve found this line of reasoning especially prevalent among religious groups, and while you could debate whether or not humans are basically good or bad till the end of time, there is an argument you can use in defense of Communism even if humans are inherently evil (which, for the record, I myself believe).

 

Now the argument tends to go “If humans were also basically good, Communism would work. But humans are basically bad- that’s why Capitalism works. Capitalism takes humanity’s evil nature into account.”

 

See, this argument is just ridiculous- first, if humans were basically good, we wouldn’t even be having to bring up Communism to begin with. Second, Capitalism doesn’t so much “take humanity’s evil nature into account” at it does reward it. Greed, deception, selfishness, reckless individualism, decadence, and the like- these are all things that Capitalism not only makes excuses for, but encourages! If we’re going to base our economics on the concept that greed is acceptable, should we then base our legal system on the concept that perjury, harassment, and murder are acceptable?

There's actually a big market for furniture made from human skin...

Just because humans are naturally bad doesn’t mean we should base our entire society around the hopes that they’ll act badly.

 

Communism Is Against Religion:

Let’s face facts- Marx was an atheist, as were many prominent Communists. However, to assume that Communism and religion are opposed would be wrong- indeed, if you take a look at what Marx wrote about religion, you’ll find his issues weren’t so much with faith, as the use of religion by the powerful for control, and the use of religion by the powerless as an excuse for not taking action. In reality, even Communists who would describe themselves as “anti-theist” almost universally hold to the belief that what you believe (or don’t believe) is your own business. On the other end of the spectrum, you will in fact find Christian Communism, liberation theology, and social justice movements arguing that it is not Communism but Capitalism that is antithetical to the basic principals of religion.

Totally what Jesus had in mind...

Communism is Against Democracy:

My response to this accusation is two pronged- first, we need to point out that not all Communist leaders seized power, most prominent among Marxists democratically elected to power was Chilean president Salvador Allende, who lost his life in a CIA-backed military coup. Second, while there were dictators who claimed to be Communist, these men were Marxists in about the same way that the propagators of the Spanish Inquisition were Christian. Take a look at the writings of Marx or Engels or Luxembourg and you’ll see the demands for power to be put in the hands of the people, not the party chairman or head of the military. Communism believes in democracy- it is with Capitalism that democracy doesn’t mesh so well. Democracy is meant to be a system in which all have equal power. However, in a system where money is power, any inequality in wealth is going to mean an inequality in influence over government. The wealthy man can hire lobbyists, give campaign contributions, fund advertising, hire people to smear his opponents, and so on (and let’s not forget the straight-up bribe). Is that equality? Let’s take a look at what democracy looks like in the US.

Not exactly faith-inspiring is it?

Planned Economies Aren’t Efficient:

It’s not a common argument, but every once in a while you’ll run into someone with a penchant for economics who’ll take this line of argument. They state “Hey, there’s no way a planned economy will work unless you’re always over producing ______ or trying to catch up to the demand for ______. It’s inefficient.”

 

Now you can probably argue exactly how a planned economy could work- and that’s a debate for another time. The easiest response to this argument is to point out that Capitalism isn’t exactly efficient either. When someone can take natural resources, use them to create a product, and finding that the market for novelty sumo tables doesn’t actually exist, be stuck with a warehouse full of the stuff, you can’t exactly assert Capitalism doesn’t have just as much potential to be wasteful.

All this and more garbage available from SkyMall!

Society Won’t Function Without the Free Market:

Another argument sometimes used by the economically minded is that the only way for society to function is through the natural process of supply and demand. Now my response to this is to use my own conditions- unless you attend a college set in an extremely rural area, I’m geussing you won’t be able to use the exact same points, but hopefully you’ll be able to use the basic logic behind them.

 

Now as I said, I attend a college surrounded by miles of forest and not much else. There is a massive demand for theaters, restaurants, shops, grocery markets, and other diversions, yet nothing happens. See, what the acolytes of the infallible system of supply and demand don’t realize is that supply and demand is like fate- it only works in retrospect. Yes, demand is met (or else, it moves elsewhere), but how long and how much do you have to demand for a product or service before it shows up? There’s no standard, no pattern, no system. Things were either meant to be or not meant to be- all in all, the whole “supply and demand will answer everything” stance taken by some really can’t be held.

Communism is Against My “Right” to Private Property:

You ever see ads for buying a star, or property on the moon? You laugh at it- maybe you’ll think it’s a nice sentiment- but at the end of the day you don’t take it seriously. After all, the moon and stars can’t be bought because they’re not anyone’s to sell. It all makes about as much sense as buying a cubic foot of air from a man named Steve. Steve can’t actually give you a cubic foot of air, can’t prevent you from moving through said cubic foot of air, and has no way of owning a cubic foot of air to begin with.

Yet we view land (and private property, made from resources from land) as a sacred right. Why? Land is just land- land didn’t belong to anyone until some neanderthal took up a club and declared that all dirt between points A, B, C, and D were his and his alone. Yet today if I were to attempt to do the same thing and claim that all within an invisible border belongs to me and no one else, I would be called a thief. That’s the origin of this so-called “right”, someone in the distant past just took it, and because of this, you can “buy” a plot of land, never use it for anything, and yet have every right to keep anyone from living there. That’s just not rational- the world belongs to everyone, and you can only “own” property in as much as you can be the one currently using it.

Communism Is Against Prosperity:

Come one- you don’t have to be a Communist to recognize that we can’t live in decadence and luxury. Communism isn’t against prosperity, but it is against mindless excess. Private jets, whaleskin leather seats for you SUV (look it up), imported caviar with every meal- there’s no way that we can live like this- the planet is having a hard enough time keeping up with current rates of consumption as it is. Further, let’s not imagine for a moment that fast cars and big houses are what make a life worth living. Freedom, dignity, peace, equality- I’d take that over a gold plated BMW any day.

If You’re a Communist, Why Aren’t You Poor?

The inbred cousin of the question of “Why can’t I be stinking rich?” is the question “Why aren’t you desperately poor?”.  Now I’ve touched on this question before, but it comes up a bit and I’ll try to address it here as well. We might not believe in decadence, but we don’t want people to be poor either- that’s not what Communism is about. Equality in wealth will mean the end of millionaires and billionaires, but for countless people across the planet, the standard of living will dramatically increase. We aren’t poor because we’re not supposed to be poor- no one is!

We’re not big fans of either extreme…

Big Government Doesn’t Work:

We couldn’t agree more. Communists don’t believe in big government, we believe in collectives,  communes, and communities working on a local level to address problems and issues unique to them. If they choose to band together for whatever reason, they may of course do so, but at the end of the day, we do not believe in the state. Even Lenin, a Communist who was about as “big government” as Marxists get, called for the abolition of the state. Communism is about power to the people, not the politician.

Communism  Has Killed Millions:

Here’s the big one.

Now if you’ll take a look at the texts of Communism, nowhere will you find anyone say “By the way, you should totally purge entire sections of your population”, yet nevertheless, it cannot be denied that millions are dead at the hands of “Communists”.

That’s “Communists” in quotation marks- you see, mass murder reflects on the ideals of Communism in about the same way that (as I’ve said above) the Spanish Inquisition reflects the ideals of Christianity. Let’s face it, people will use any justification for their actions. The men who killed in the name of Communism only used Communism as a facade for their own agendas. After all…

The Tuskegee Spyhilis experiments did nothing to treat African American farmers the researchers knew were infected, and did so  in the name of science, but exactly how is (secretly) giving someone a disease reflective of the goals of science?

And the reign of terror- was this the product of enlightenment and reason?

And is this democracy?

People kill people- that’s the sad truth. Communism has nothing to do with it.

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18
Feb
10

The Trickle-Down Theory

Though it the term originated in the 1930s, the “Trickle-Down Theory” has come into increasing use over the past year (largely due to the global financial meltdown). Essentially, the theory holds that by cutting taxes on the wealthy and/or allocating wealth to the upper classes, the money they save will be spent on luxury items that will provide work and profits to the middle class, who in turn will buy products that provide work and profits to the working class.

Obviously, this theory is complete and utter tripe.

Firstly, the theory is based on the assumption that the items the wealthy buy will somehow benefit the middle-class. In reality however, when an oil tycoon buys a diamond necklace for his wife, he isn’t benefiting anyone. If he walks into a store to buy the necklace, is he somehow benefitting the clerk behind the counter? Of course not- her wages are the same whether or not he buys anything. The profits of the sale go to the diamond magnates who own the store. In short, the wealthy get wealthier- the middle class simply facilitates the process.

Now you might say, “Hey, doesn’t the oil tycoon’s purchase help the middle-class? Without customers, the store couldn’t operate and the clerk would be out of a job! And if the clerk is out of a job, she isn’t going to be able to spend money and produce profit for the working class!”. Now that’s partly true- but only partly. The clerk’s job does depend on the store being successful, however, let’s look at the big picture. If the store is already running, then it has enough business to provide the job. Whether the tycoon has a few extra thousand dollars isn’t going to make the slightest difference. Again, you might argue “But an increase in the demand for diamonds means that more diamonds must be mined, producing work and profits for the proletariat!”. Again, this is only partly true. Now if there was a massive increase in the demand for diamonds (and let’s face it, it’s not like diamonds wear out and need to be bought by the dozen), there would indeed be more work for the proletariat. There’d be more work, not more profit. The owners of the mines can simply increase the workload- they have no reason to increase wages. Unionizing? The majority of the world’s diamonds are mined in third world countries where (1) unionizers can be beaten, tortured, or killed and where (2) the general populace is so poor they’ll take whatever wages they can get. In short, an increase in wealth for the wealthy does not equate an increase in wealth for the entire social system.

Ok, maybe that isn’t entirely true. There are certain (rare) situations in which the trickle-down theory seems to work (which brings us to the second issue). Imagine a wealthy man decides to build a sports stadium- the advocates of the trickle-down theory will argue that this will provide jobs and profits for the local community. Now this will in fact provide jobs- as food vendors and janitors. Whatever extra money they have will be spent on things too insignificant to boost the community out of poverty. I wouldn’t call that “benefiting” the working class anymore than I would call a dew-drop in the Sahara a “water-supply”.

Now I’ve stated that the origin of the term “trickle-down theory” originated in the 30s- but the actual practice has been going on since the beginning of time. It’s what they used to do with hunting dogs. Sic them on rabbits and, after the dogs catches the prey, they wait patiently under the table while the master eats the meat. When the master’s done, he throws the scraps to them. Now it might work for dogs, but if you treat a human like an animal, then it is only a matter of time before he becomes one- and an animal and has no issue with ripping your throat out.

16
Oct
09

War for Sale

War has plagued humanity since one caveman discovered that using a heavy stick got him what he wanted a lot quicker than his fists did. Since that discovery, humanity has come a long way in the development of weapons, from bronze spears to compound bows to cannons to nuclear missiles. Now of course, there is nothing wrong with this- be it saber-tooth tigers or serial killers, humans will always have something to fight. What is wrong with this, however, is that there are those who take advantage of this fact. I’d call them “human vultures”, but that would be an insult to the birds- after all, vultures don’t attempt to instigate, prolong, or exacerbate conflicts. You probably know these people as the “Industrial-Military Complex”.

Now of course, “Industrial-Military Complex” is a term often misused. Conspiracy theorists warp the definition to describe supposed shady corporations controlling the military, or vice versa. In reality, however, the term “Industrial Military Complex” is simply used to refer to companies and corporations that develop and/or sell weapons for combat (as opposed to hunting and recreation). Now is there anything wrong the research and manufacturing of arms? Of course not- every government in the world has a need to defend itself- to spend money and effort on maintaining a strong defense force is both right and natural. The problem is the Capitalist system allows for all forms of commerce, from advertising to research to fast-food to prostitution. Anything and everything can be produced and sold- including weapons.

Now the issue here should be obvious- if a corporation creates a products (a fighter jet, for example), it isn’t enough to simply have a  supply of the product- you have to sell it; to sell something, there must also be a demand. As you can imagine, a fighter jet isn’t exactly cheap- selling it is going to make you a massive profit. Of course, you’re going to need someone to sell your fighter jets to, and let the facts be faced, people aren’t going to wake up one morning with a sudden urge to buy one. So now you have two options: (1) scrap trying to sell fighter-jets and sell something else or (2) create a demand for fighter-jets (and whatever other weapons you might be selling).

Now let the facts be faced; people who feel secure don’t attempt to fortify their houses or stock up on assault rifles. People only raise the drawbridge when they feel threatened– either by violence or the fear of violence. Of course, it is in the interests of those selling the weapons to promote either (1) violence or (2) fear (which, incidentally, is the definition of “terrorist”). How does one go about doing this? There are a number of ways. You could make sizable campaign contributions to “hawk” (pro-war/pro use of military action as a first resort) politicians. You could make sizeable campaign contributions to politicians in hope to buy their sympathies. You could advertise- try to convince the public that they live in a dark, scary world filled with monsters they need to protect themselves from. You could attempt to- through any number techniques- disrupt the attempts of peace negotiations (after all, the more war, conflict, and violence there is, the more weapons people will pay for).

Now this obviously isn’t right. To feed off of fear and conflict and escalation is- frankly- sick. War is and always will be a tragic but often necessary event in human history. To incite, encourage, prolong, or exacerbate violent conflict for profit is perhaps the height of immorality, and yet by the Capitalist standard the industrial-military complex is not an abomination but simply free trade- the production and exchange of goods for capital (money).

Now my message here is simple. War is being sold to you- don’t buy into it. Don’t be frightened by stories of monsters under the bed when you have the real monsters trying to scare you into buying their automatics and Kevlar. Don’t be imprisoned by paranoia.

Be brave.

26
Aug
09

Vox Populi… (Part 1)

It has been said that “the customer is always right”. That seems to make sense- after all, in a Capitalist society, supply-and-demand (with the emphasis on the “demand” part of the equation) is the driving force of the economy. Companies, corporations, businesses, entrepreneurs- everyone caters to the consumer. Naturally this sounds like an excellent system- the people demand a product or service and the companies develop and create it. Simple, efficient, and like most things in the Capitalist system, deeply, deeply flawed.

It has also been said that “the voice of the people is the voice of God”, essentially an earlier, Roman version of “the customer is always right”. The problem with that phrase however (and indeed, the entire supply-and-demand theory) is that humans are far from divine. Supply-and-demand looks great until we look at the things we demanded over the past ten-thousand years or so. Slaves, narcotics, war, segregation, excess, genocide, nuclear arms- just to name a few. Let’s use war to study the issue a bit more. Humans love war- we can’t get enough of it. Since the dawn of time we’ve been trying to find quicker and more efficient ways of clubbing each other. Obviously with such a massive demand for war, there are those who- like the good Capitalists they are- make a living off of conflict. They sell mercenaries, arms, guns, knives, mines- anything and everything to anyone willing to pay for it. Naturally, this only intensifies the horrors of war, it perpetuates the violence and weakens the chances of peace and diplomacy. If guns are used to slaughter minorities, or if grenades are pushed into the hands of child soldiers- who cares? If weapons are demanded, then they are supplied- the voice of the people is the voice of God!

Now obviously we can see that this is horribly wrong. Now I am not attempting to argue that any demand is wrong- humans have, after all, basic needs. Catering to humanity’s baser appetites doesn’t satisfy them, it only creates a greater hunger. Regulations? Regulations are an interference with the free market system- a form of “corruption” as Milton Friedman is attributed with saying.

Is supply-and-demand such a great idea? I submit that we cannot have our every whim met, that to supply every human demand would be the equivalent of granting a three year-old’s every wish. Anyone even remotely familiar with human history can tell you that we as a species have a difficult time figuring out what’s good for us.

Quite simply, we can’t always get what we want.