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Cake day: January 15th, 2024

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  • It’s a socialist model of organization, but if it’s operating in a capitalist economy, it benefits capitalism as a model to run an economy, not socialism.

    Also no, not everyone is a worker. Not everyone is equal. Someone (or a group of someones) has the power to hire/fire, or dock pay to discourage poor performance, or grant promotions to incentivize superior performance. Someone has the power to alter the distribution of resources, because once a group of humans reaches over 150 or so they form hierarchies because it’s just too difficult to keep peer relationships with more than about 150 people. So someone is given power to speak for more than oneself, they speak for the group, and therefore have more power than a person who speaks for only oneself. That person is not a worker, now they are a politician, or a bureaucrat, or a manager, or a chieftain, or something, they are not like the others, they have more power.


  • No, I completely acknowledge capitalists largely care about their investments in capital and don’t really care so much about workers as long as they are working. But at least I know where their incentives are, what they’re trying to do. It’s difficult to predict how people are going to act if you don’t know what their incentives are, and if you can’t predict how people are going to act then your life is less stable.

    And “direct ownership” meaning like a co-op or whatever, nothing wrong with that. Collective ownership of a business is totally fine within a capitalist economy. There’s still a concept of ownership. I wish more businesses were run that way. Well, a lot of start-ups kinda are now that I think about it. People get some pay in stock options and the like. I think unions should own more shares in a company so the incentives of both the union and management are aligned to make the company money, but it’s hard to get the right balance.


  • Yes, tools don’t make things, people using tools produce things. And capitalism as a tool has been used to produce a lot of things, a lot more than socialism. But like any tool, you don’t want to use the same one all the time for everything. Economics is about incentives, and different systems put the incentives in different places. You don’t want to run a prison on capitalism because it incentivizes imprisoning people. But if you’re running a country on a planned economy it’s difficult to incentivize people to work harder just because the government said so, even if it was a democratic decision that people should work harder.


  • Workers do have a say. They own their labor. If they are educated and organized enough they can bring a corporation to its knees, because corporations can’t do anything with their capital without labor. Just because I’m arguing capitalism has merits doesn’t mean I don’t think there should be strong unions, or shared ownership of companies, or regulation of markets.

    I don’t want to do a job I don’t want to do just because the majority voted that I should do it either, really. I can count on people to vote for their own self-interest, but I can’t count on them to vote for mine.



  • I’m not saying it gets you the job you want, I’m saying no one can make you do a job you don’t want to do. People can incentivize you, with money. And I think collective organizing and bargaining is important to make things fair. I hear German firms have a union representative on the board, that seems pretty smart.

    And it needs to be regulated. The government needs to force firms to pay to mitigate harmful externalities as well as incentivize positive externalities. And there should be social programs to take some of the edge off market fluctuations, like free or cheap training, help finding employment, cushioning some of the effects of market fluctuations for the average person.


  • Well, the device you are reading this on is a product of capitalism. Whether it’s a phone or a computer, it has hundreds of chips made at hundreds of factories in at least half a dozen countries, all the parts had to be brought to a place and assembled, then brought to another place and sold to you. And you likely didn’t even have to pay for it in advance before it was assembled and ready for you to use!

    Did you eat food today that wasn’t grown near where you live? “That’s just trade” you might say, but it took a significant investment of capital to set up the system of trade that got it to you, at the very least the ship or the train it was transported on, if not the equipment used to grow and harvest it. If you ate a banana or chocolate and you don’t live in the tropics then you only ate those things thanks to capitalism.

    Are you wearing shoes? Are they completely hand-made by an artisan, did you commission them to be made and come back in a year to pick them up, or did someone invest in capital so you could buy them in a store?

    Did you go to college? Did you pay to have the school built and the teachers hired to teach you, or did someone raise and donate a bunch of capital to create it? Did it own a farm you had to work to pay for its operation, or does it have an endowment it can invest as capital to raise money to pay for some of your education? Just because it’s (hopefully) a non-profit institution doesn’t mean it would exist without capitalism.

    Just look at the improvements in the living conditions of a huge portion of the planet over the last 200 years when we had capitalism, then look at the improvements for the 200 years before that. Haven’t there been more improvements in more people’s lives since capitalism than before it?

    Look I know it’s not a perfect system, it needs regulation, and it’s not the right tool for every situation but generally it blows mercantilism and feudalism out of the water, and it’s done better than every planned economy so far.


  • I’m quite sure we’ve outlawed the direct ownership of people so, yeah, in capitalism no one tells you where to work, they pay you to work. There is a job market. In planned economies, someone tells you where to work. Planned economies are an expression of socialism. On the scale of individual firms, capitalism doesn’t require them to be organized in any particular way. If you want to run a business as a cooperative, where the workers own the company, you can certainly do that in the United States if you want. But if a collective tells you where to work, then someone is still telling you where to work. Please explain how you’d do socialism without anyone telling anyone else where to work.