SteveF wrote:
A side question. If you were looking to immigrate to the U.S. would you be willing to take the following oath?
No, I could not. The first clause of denying allegiances is all well and good; but I cannot affirm the unconditional promises which follow.
SteveF wrote:
I think I'm going to need some clarification on your ideas.
I originally suggested that a society seeking to implement a system to help others was in line with a Godly principle. You responded that God nowhere commanded a secular government to implement this. I responded that there are a lot of things not commanded in scripture, like capitalism for instance.
The socialist system is a system that is based upon government
acting to carry out some end. The capitalist system is a system that is based upon government
not acting. As such, government does not implement capitalism, but capitalism is the state of affairs that comes about when government does not act. Instead citizens, which have been given liberty, do the acting. It is the socialist system which is making a definite claim of authority over certain affairs of its subjects. Capitalism, however, is an
absence of government making a claim of authority over the affairs citizens. My position is simply that God is the highest authority, and all other claims to authorities that humans may make are legitimate only in so far as God has delegated them that authority (e.g. parents over children). If God has not expressed such, it has not been granted. Of course, the capitalist system does indeed require the administration of criminal justice - and this is something which God has authorized Caesar to carry out - Romans 13.
SteveF wrote:
- The economic system works best if each person pursues his or her own self-interest, ie, the greatest profit.
- The profit motive drives economics. The only basis for making economic decisions should be what brings the greatest monetary profit.
My issue with these statements is that they are a pejorative and very distorted description of my position. The above description of capitalism exults the making of a 'monetary profit' and having a 'working economy' as if these are primary objectives. They are not. The description also gives no recognition to the fact that capitalism leads to a state of affairs where businessmen, workers, and entrepreneurs act with very diligent efforts to meeting and fulfill peoples most urgent needs and desires. The central idea here is that of
granting liberty to individuals to use their property and act according to their values.
An understanding of the value judgments, the consequent praxeological categories of profit, and loss would a long way to help in understanding my position. I've done some searching over the weekend, and found two moderate length articles that I think would be quite helpful in clarifying the position I hold. These offer a more extended treatment than I've placed thus far into my own words into this thread.
Article #1 - Describes the basics of what value is. The classic economists struggled with this idea and got it wrong, much to their detriment. I see an understanding and agreement on what value is to be essential to this topic. The article is here:
http://mises.org/story/2422. Pay close attention to the point that voluntary exchange is beneficial to both parties.
Article #2 - Describes profit in both the monetary definition and praxeological definition. Profit and Loss -
http://mises.org/daily/2321. This is a very excellent article which well addresses many of the points we have been discussing.
I'll give a few propositional statements that I hope will help to clear things up:
1. Individuals
should not pursue only their selfish interest.
2. Individuals
should be granted the liberty to use their property in whatever way they see fit, regardless of whether they act with selfish interest or not.
3. Individuals
should not be coerced into using their property in ways they do not see fit.
4. Individuals, as they are,
do not act to attain the greatest monetary profit.
5. Individuals, as they are,
do act to praxeological profit.
6. When private property rights are respected, seeking selfish interests is harmonious not contradictory to providing good for my neighbor. This is due to the mutually beneficial nature of exchange.
7. Restitution
should be required when an owners property rights are violated.
SteveF wrote:
Christians protest they are the ones to do health care, not the world. Yet not only are they not doing it, they protest that others shouldn't be doing their job. You don't seem to share this view but that is the only point the analogy was intended to illuminate.
Ok. I understand you to be saying that some Christian's claim the world should not provide health care. Since my view is that the world should provide health care, this analogy is not critique of my particular position. Please say if I misunderstood.
SteveF wrote:
Is having multitudes of people with no heath coverage good? As I mentioned before, I think we are looking at this from different perspectives. Would the morals be higher if the government did not respond to a national emergency out of principle? I find this ideology hard to get my head around.
I would like to challenge the assumption that a capitalist system would results in multitudes of people with no health coverage. I believe a capitalist system would bring about the state of affairs where health care is more accessible and affordable than a socialist system.
Regarding "Is having multitudes of people with no heath coverage good?". Of course, no one can say that a lack of something which humans desire is a good thing. I would like to submit for your consideration, however, that this is an example of asking the wrong question. Let me explain:
1. Because resources are scarce and finite we can only answer this question by considering that using additional resources for providing health care necessarily takes resources away from other sectors of the economy. If the health care industry expands, then some other industry must shrink, ceritas paribus. In order to expand health care, it is inevitable that other human needs will be less well met.
2. A value judgement of the products of other industries must be weighed against that of the health care industry. Let's suppose that we discern that for every additional worker employed in health care, one less worker be employed in the auto industry. Can anyone say there is not some equilibrium point where the number of employees in health care is balanced correctly to meet peoples needs against those employed in the auto industry? Should we cease producing automobiles to have better health care?
3. A part of the calculation argument is that this balance can only be attained where individuals are confronted with making choices of either-this-or-that. Market prices are the outcome of the scarcity of resources, and given my wage I may be able to get a good car, and a bad health insurance policy, or a bad car and a good health insurance policy - but not both. Claiming it to be good or bad should be permitted to reside in the choices of the affected individual - does he value the quality of the car more or less than the quality of his health care? A market economy allows each individual to express and act on his unique preferences. The socialist approach forces all individuals into a common set of preferences as decreed by the State, which will inevitably result in some individuals being forced to have what they value less than the alternative that they could otherwise have attained. Thus, a socialist approach is a loss to citizens, not a benefit.
Yes the morals would be higher. Government can only give to one person what it takes from another. I do not consider that government officials are exempted from the general law that theft is wrong - even if the proceeds of what is stolen is given to the needy.
SteveF wrote: I find it hard to imagine a city with no city planners. Who would have the knowledge to know and decide what goes where?
The owners of property, investors, and entrepreneurs will make these decisions. They will make judgements about the use of resources. In a capitalist system the control of resources passes inexorably from those who are less skilled at adopting to the needs and values of the people they serve to those who are more skilled and faithful in doing so. There are numerous examples of cooperation in industry (e.g. SAE standards), cooperation in infrastructure and real estate will come about.
SteveF wrote: I must say that your argument here is consistent. If you are willing to pay a Chinese or German company for the use of a sidewalk and even willing to see your entire country purchased and run by foreign investors then you are definitely sticking to your principles.
Thanks. I have no particular concerns if the owner is a citizen of any given nation. In any case, the mutually beneficial nature of trade is such that I can rest assured of a cooperative situation with the owner so long as the rule of law (the administration of criminal justice) remains operative in the land. I would face concerns over followers of Islam which who disregard property rights of those who do not adhere to their religion.
SteveF wrote: I can say that every Canadian I interact with would prefer our system over the American. Is there room for improvement? Absolutely. Canadians, in general, are so afraid of their system becoming Americanized that politicians can't even mention the word privatize without risking political defeat. I actually disagree with this because I like taking all options into consideration. Also consider that life expectancy is longer in Canada and the infant mortality rate is lower.
I have great disdain for the American health care system, and I do not consider it to be a capitalist system. The health care services are very highly regulated, subject to differential tax treatment (e.g. we are forced to rely on out employers for insurance), and subject to lawsuits due to legal liabilities. The operation of the present system is inhibited greatly by these things, and hence its ability to provide for the needs of citizens is hindered.
There are a multitude of particulars about which we could compare systems. I am not of the opinion that it is possible to compare them and draw a conclusion about whether socialism is better or worse than capitalism. There are several reasons for this, but here I'll restrict myself to giving just one reason which is a sufficient reason; I do not consider the US to have implemented a capitalist system in health care.
SteveF wrote: It's my understanding that there is a larger issue in the U.S. though. Individuals that are intelligent and desirous to make money are not heading into professions like engineering and medical science. They are heading to Wall Street. They invest their intelligence in learning how to "work the system" and make money off of stocks etc; Thus, little production is put back into society. Corporate executives, a generation ago, made 40 times the average salary. Now it's 400 times. For those who are smart and strictly looking for money this is a powerful drawing force.
I lack a sufficient understanding of how wall street works. In principle there is are legitimate and valuable functions which a stock market serves. Namely, it is the mechanism by which investors allocate funds to entrepreneurs. I think the valuable, if not essential, role of an entrepreneur is unfortunately all to often neglected. Entrepreneurs are those who have the vision and foresight to identify what end products are needed at any given time, and what resources should be redirect away from one effort and brought into the service of another effort. Since the economy is not static there is a continually change needed in how resources are to be allocated and processed to yield the end goods that customers wish to buy. The investor is looking to employ his capital in an effort that serves the needs of customers (so he can earn a profit). The stock market seems to be one way this is done. Second, the market provides an opportunity for speculators to be able to act. Speculators who buy up products when the are inexpensive, and sell them when they are expensive provide a very valuable service. These speculators actions result in the preservation of resources which would otherwise have been consumed in order to provide for peoples needs when they are most in demand. As they act to make resources available to people when their need is most acute, I can only say that the profiteering speculator has done a great good - something a Christian should commend, and not condemn. There may be better ways to do things, and people should be granted liberty to make whatever arrangements are necessary to bring this about. How much it will continue to resemble the present stock market, I don't know.
I am unconvinced the corporate exec's are unworthy of their wages. Just to say one makes a lot of money is not in my mind a sufficient argument to conclude that their employment was not worthwhile to the company. After all, were the companies owners not free to higher someone else for the job at a lower rate? Further, if wall street fails to perform its function, what could possibly prevent a competing institution from arising which refrains from paying those who deserve it not. The executives entrepreneurial functions are valuable and as I mentioned above often overlooked. Besides, whatever some choose to pay a person to run their company is not a decision that I am authorized to make. The owners of the company have or should have the authority to use resources in any way they see fit - in this case, to employ whomever they wish at any price they wish.
SteveF wrote: Ok, let's look at homosexual couples that are looking for the same benefits as a married couple. I know both of us disagree with the morals of it but I want to bring this up based on your understanding of the tyranny of the majority. If married couples can more easily settle wills, have hospital visitation, get leave from work for there spouses illness or death etc etc¿ then do you think it's a tyranny of the majority to prevent same sex couples from having the same privileges?
The State has no authority to be deciding these matters. Neither homosexuals nor the married should seek to use the State for these things. I'm not familiar current issues in the settling of wills to comment on this point, but as for the other two points:
1. Hospital visitation - the State should not be in the business of authorizing who may or may not visit a hospital. The property belongs to the hospital and the owners of the hospital should be granted to sole authority to decide who is permitted to enter their premises. If they were granted this authority what would hospital owners will do? Prudent business owners cater to the needs of their customers, and so we should expect that hospital owners would grant or deny access so as to please their patients.
2. Work Leave - the State should not be in the business of authorizing when someone may or may not leave work. The worker and employer are free to associate or to not associate based upon whatever terms they find mutually agreeable. If their terms are incompatible either the employer or worker should be free to discontinue the association.
SteveF wrote:
The market system honors the praxeological values of individuals for what they are, rather than as what any socialist dictator might wish them to be.
I just want to clarify the use of the word 'dictator'.
I mean that a powerful leader, or a majority of people can impose their values upon an unwilling minority. But businessmen cannot - they are entirely obligated to serve the needs of their customers - whatever those needs are. A businessman does not have the power to censure the values of his consumers. He will go out of business, because he must pass a profit and loss test. A government, however, does not have to pass this test.
I'll give a silly example first: I like to eat meat. But suppose I live in a country which has socialized food processing, and further suppose that about half the people favor animal rights. In the election, PETA wins with 51% of the vote, and in each branch of government they completely take over. Since they value animal rights and the State owns the food processing industry it is a trivial matter to bring about the situation where all food is vegetarian, and no meat is produced. Being taxpayer funded, and having a majority vote they can defy the desires of those voters who value eating meat more than the life of the animal they eat. In a capitalist economy, however, this is impossible. If there were zero people in the business of preparing animals to eat, then my desires are indeed be quite unsatisfied. I would pay just about anything to have some meat to eat, and I would be very appreciative of that entrepreneur who first entered the business. I would value a certain amount of meat more than a certain amount of money, and the business man would value the money more than the meat (because at this point I am willing to pay a high price). In no time at all the high price of meat would be observed by investors, and they would correctly conclude that there is an opportunity here to earn a high profit margin on producing meat. All kinds of resources would be allocated to preparing meat and the high profits would be used to expand the business operations until the size of meat producing industry was at a level commensurate with consumer desires relative to alternative uses of resources.
Now a more serious example: The government in our country has socialized education system. I value having my children taught in a certain way (e.g. God created them, abstinence, etc.). The state desires to teach them that which I do not value (e.g. evolution, safe sex, etc,.). Since we lack a free market in education, I must bear a heavy penalty if I do not consent to have the state direct the education of my children.
In the extreme case we have seen how various dictators have come to power and tried to implement some plan (e.g. the communist dictators of Russia.) Each has his particular ideas of how to arrange a country, and allocate the factors of production. Those who dissented from the plan were not just deprived of goods and services, but of life itself.
SteveF wrote:
For example, would you consider Benjamin Franklin to be a socialist dictator?
He, amongst many other social initiatives, spearheaded the first publicly funded hospital, paved roads and street lights (tax dollars were used for all of them). What about when the government declared the Grand Canyon a preservation area and eventually a national park? Was this the work of a dictator? I'm assuming you would say yes. I just want to make sure I understand how you use this term.
I wouldn't use such strong language for this, but here it is a difference of degree not of kind. I do not favor government administration of any of the areas above.
SteveF wrote: One thing that I think has become apparent is we both see things differently. I hope you are content with that fact. I don't mind continuing to simply provide clarification on my views on an exploratory level, as long as you don't. I also don't mind being a sounding board for your views either. We will just need to agree and understand that we see things differently. I tend not to follow ideologies so this leaves me open to freely consider and discuss all options. My primary concern is what works best, regardless of the political persuasion.
Thanks, I have enjoyed discussing this topic with you and I am pleased to continuing. I'm not sure that I've been able to successfully communication my position, in particular on the praxeological approach. I cited in this post two articles from the Mises institute, and I would appreciate your being a sounding board as to their validity. You've also raised some various concerns, which I have made an effort to address. I welcome your opinion on the validity of my efforts to address the concerns you raised. I do not follow a utilitarian approach, but I do think the capitalist system can be defended on this basis. Instead my starting point begins with God's law (theft implies private property; authority does not exist unless granted ; freedom of association), and works forward by applying these principles.
Although we have some disagreement about ends, I don't see this as the primarily difference for we both agree with the objective of fulfilling peoples most urgent and important needs. Rather, I believe our difference of opinion is much greater in the area of the means by which to attain that end.
SteveF wrote:
Btw are you aware of a country that has implemented views similar to yours?
Israel - Judges 21:25.