Firstly let me say that I am a mere High School kid, although quite interested in philosophy and poli-sci/econ (I am a Christian, so obviously a theist and dualist etc., but I am also what some would call hard-left, although I favour a form of social anarchism called Parecon. See
here for an exposition of Parecon, suited for economists).
WARNING: This is a non-technical anti-market rant. A short lesson in the political economy of participatory economics.
There are 4 values that I believe economies should promote to the greatest extent that they can. These are equity, self-management, diversity, and solidarity.
I think everyone favours equity, but controversy arises as to the extent and/or nature of this equity.
The first issue with equity is income. There are, broadly, 4 possible remuneration norms. Remuneration by contribution of personal or human assets, as well as physical assets; remuneration by only personal assets; remuneration by effort or personal sacrifice; remuneration by each persons need. This is ignoring, almost of course, a sort of brute-force purely social Darwinist stance as ethically unsound, and therefore undesirable.
Certainly within my paradigm, remuneration by effort seems to be most fair and equitable. But on to the other norms first.
Remuneration by need simply encourages freeloading. There is no way around this, and this is perhaps one of the greatest ideological failures of traditional Marxism. The fact is that people are selfish, and have an inherent want to serve primarily themselves (to Christians, this is a prime example of the noetic effects of sin) with service to others of secondary importance if at all. This seems to be born out by the economy in D2 to keep with the article, but is born out in many real life interactions too.
Remuneration by personal assets alone favours disproportionately those who are born better suited to a task. This is a purely meritocratic norm. I will be returning to this one after assessing our society's current norm.
The first norm, remuneration by both personal and material contribution gets into the issues of private ownership of the means of production, the principles of self-management, amongst other things. The rationale for this norm can be illustrated with a stew-pot analogy... If I bring more ingredients to the stew pot, even though you do the cooking, I deserve a greater portion of the stew than you, because I brought more. This norm fails on many levels... Take the Rockefeller's grandson problem. According to this norm, the grandchild of a rich person should eat a thousand times or more of the stew than a hard-working child of a pauper, even if the rich heir(ess) works not a single day in their life. But is this in any way morally desirable? This allows for a greatly widening wealth gap (take America recently... CEO pay increases 340% while worker pay increases 60%) and a disproportionately large number of the population become wage-slaves. The traditional Marxist critique of this norm is still telling, and while some may tout the values of this norm, it is distinctly immoral (at least when placed against my morality... James 1:27 for instance, and seemingly when placed against many other ethical schemes) and therefore undesirable. I am not going into this too much here, but if you are interested in this, see the online book transcript I posted the link to, and maybe see the Marxist critiques of capitalism. The conclusion is that this norm does not support equity. This is the traditional capitalist norm, and therefore capitalism exists in conflict with genuine equity (with whichever other norm is equitable and ethical)
Going back to remuneration by personal assets alone... Now we are left with a society that places higher regard on indeterminate genetic quirks rather than genuine work. The fact is that a person who is born very smart, and strong, and athletic, and charismatic should not be given a proportionately higher slice of the pie than a person born disadvantaged. This norm skirts, ethically, on a sympathy with eugenics. The fact is that to believe “all men are created equal†but then to reward people in different ways due to accidents of birth is contradictory. And I for one would rather stick with the maxim “all men are created equal†than with a norm that violates this.
So we are left with remuneration according to personal effort... The only norm which accounts only for individually determinable factors, and rejects indeterminate and fixed factors. Now this norm needs to be supplemented with, in certain cases, remuneration according to need. Take Jo. Jo has been a great worker for 15 years, but is hit by a drunk-driver and paralysed and is now completely incapable of proper work. It is obviously unfair and unethical to say that Jo now must drop out of society, and possibly die due to her inability to put forward any effort. Zero effort equals zero remuneration according to this norm unfettered. So some form of social remuneration according to need in certain circumstances is needed. I will leave the individual to determine where and when this would be needed, but suffice to say that there ARE instances when it would be necessary, to remain ethical.
This standard of remuneration removes the possibility of private ownership of the means of production (or at least, removes any and all significance that said ownership currently entails and replaces it with purely symbolic ownership) and tends to serve as the most complete rejection of the market... For if the traditional market value of property is subverted, then the rest falls too. An ideal market would not have the failings of modern markets that will appear later, but even an ideal marker remunerates unethically. The fact is that ownership becomes a meaningless concept.
Remaining with equity, but focusing now on circumstances rather than remuneration. Is it fair that some people have fulfilling, interesting and pleasant whilst others have debilitating and depressing circumstances at work? The arguments about remuneration translate almost unchanged though. If it is unethical to have remuneration by contribution, then surely it cannot be contribution that determines work conditions. If it is unethical to have remuneration determined by random genetic factors, surely this carries over to random geographical factors too, say? I think to deny this is to skirt fascism, as defined by the link given in the article.
The second value I wish to quickly explore is self-management. There are 3 basic ways that management can be distributed. 1) Vest most power in the hands of a few agents, and leave those who are affected by a decision largely without say. 2) 1 person 1 vote democratic management. 3) Vary power distribution greatly with each decision, by the amount that an individual is affected by the outcomes (i.e. greater affect, greater weight to one's vote/say).
Politically, norm one is primarily rejected as oligarchical or totalitarian. Why then is it ethical when applied to the economic sphere? (Red herring or false analogy? Maybe... wait for the rest.) Norm one is the norm primarily adopted by markets. Now take, for example, your desk at work. Who should decide how you arrange your computer and personal effects? A few decision makers at the top of the chain, dictating some sort of blanket policy that puts the monitor too close to your eyes and thus causing you pain, or too far and making work unduly hard? Or a democratic majority deciding this very same thing? Or what if the leaders, or majority, decided that you could not post pictures of your family for fear of offending those without families? Surely this is undue intervention. And if this is so with your desk, why is it different with the entire workplace? I have yet to see a telling defence of either pure democratic management, or localised and/or oligarchic management. It seems that norm 3 is the only alternative, unless someone is willing to provide a defence of the 2 other distinctly unfair and unethical norms.
Diversity seems to be a no-brainer... totally regimented life would not only be unethical in that it restricts each person's libertarian agency (here using libertarian not referring to the political ideology, but to the philosophical type of free-will) unduly. Of course, if one does not believe in free will but is a strict determinist (I am not sure about compatibilists really, I fear that I am unable to provide any telling arguments regarding diversity of outcomes with regards to a compatibilist paradigm.) then that tack falls apart. But purely for efficiency reasons, a diversity of outcomes seems desirable when compared with truly homogenous outcomes. Assuming all else being equal, an economy that promotes diversity of outcomes will excel above another if in fullfilling its functions it promotes and supports greater diversity.
Solidarity also seems to be a no-brainer. It is better if people get along than if they violate one another. So an economy that pits actors against one another is less desirable than one which encourages cooperation, given equal eficiency and attention to the above values. Markets pit actors against one another in the interests of efficiency. However parecon, as laid out by the online book, is both efficient and promotes solidarity (as well as the other values) and so is preferable.
This segways perfectly into efficiency... Efficiency is important when judging economies, and the fact is that a horribly inefficient economy that fullfills all the values I have laid out is less desirable than, say, our imperfect markets that tend to encourage only diversity.
Markets tend to be efficient, but whilst they efficiently allocate scarce resources etc. they discourage solidarity, and provide for distinctly unethical and unequitable conditions, and promote unethical management systems.
Sorry for going slightly off-topic.
in H-m
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