Explain Socialism to Me

[quote]harduser wrote:

[quote]Bill Roberts wrote:
Hmmm… so now socialism is supposedly a mix of socialism and capitalism, with capitalism being okay if it’s small enough and the socialists deem that I earned my capital with my work. (Do business management or other intellectual inputs count as work, or only hand labor?)

So in this new version I can own the means of production unless the socialists think it has grown too much, and then I cannot own the bakery anymore, correct? Instead the folk that have been doing the routine hand work there are supposed to own it, or socialists as a whole.

But what if I don’t want to give it over when it is “too big” and employs “too many” people? How will they take it from me if not by government force backed by guns? Perhaps mob rule using fists and clubs?

Precisely how can socialism work except as theft, by those who did not create wealth, from those who do, by violence or threat of violence?

Explain, please. I started the bakery myself, using money I’d earned at other jobs. I did all the work: I earned enough money to expand and hire a worker. This process continued and now my bakery is the size that Marx had in mind. I don’t want to and don’t agree to lose ownership.

Explain how it comes to belong to “the people” or “the workers” save by force and theft.

Also, if there is this threshold between having the bakery that you think it’s okay for me to own, versus achieving more success – providing more goods and services that people find valuable and choose to pay for, as well as providing more jobs for more workers – and thereby having it taken from me, why would I want to produce such an amount of valuable goods and services? Would I not be better off keeping the total value I produce, via my bakery, to something mediocre?[/quote]

I think what he is trying to say is that once you are not baking the goods yourself, but you are the owner of a commune producing bakery, there is a certain “cap” as to how much profit you can put in your pocket, presumably something near the level that the workers get. So this would mean more money for the workers, less for the owners.

I guess you could compare it somewhat to taxes. What happens when you avoid taxes? When you get caught, you have to pay it and you might to jail. So there will probably be a limit how much money the owners and people who don’t produce something can get. If you take more profit and get caught, you probably will have to pay it back and you might go to jail. There must be some sort of a force, eg police, who does the forcing.

I guess you could call taxes theft too, on some level. As for the motivation to own a bakery, perhaps you might get slightly more money and you probably wont have to do so much hard work as the baker.[/quote]

Whatever happened to the definition of socialism as being a system wherein the means of production are not owned by an individual but by the state or social groups?

But let’s grant that the socialists here are talking about a system where supposedly the businesses of people that build them will not be taken away from them regardless of being major means of production – they will continue to own them – but the socialists deem how much income they can keep from the operation, even down to being only a small fraction of the total income earned. How does this differ from fascism? (Private ownership of means of production, but government control.)

If those of you who are socialists, because you are breathing human beings and are therefore entitled, take as much of the income from my bakery as you see fit, you control my bakery, at least so far as I am concerned. When you control what I, the owner and the person who created and built it, can keep from it and decide that I should receive little more than the manual laborers who created nothing except donuts – for which labor they were fully paid for per mutual agreement – that to the owner’s perspective is the biggest control you could have over it. You control the money: you control the business. Because you’re entitled, of course, without having created the business or paid your own money or made any decisions that helped build it, whereas I am not, despite having done all these things.

And why would we be incorrect to call various programs and plans of some politicians “socialist,” which the socialists here always object to and claim that the definition is not met, if their own definition of socialism is private ownership of business with government capping income or taking all but a fraction of income earned?

Lastly, precisely how does the previous claim work that government is not needed when these socialists have it that the business owner should not keep all his income? How are you socialists expecting to take it from him if he doesn’t want to give it, except by force or threat of force?

If not by government, how do those of you who are socialists plan to exert this force?

Or are you all just dreamers who don’t have a clue about the real world…

[quote]orion wrote:

[quote]Ryan P. McCarter wrote:

[quote]orion wrote:That is basically the labor theory of value which is complete and utter nonsense, and we know that for over 200 years now.

But even if Marx did not know that, even though he could have, today one should know that value is not objective but subjective and ordinal and not cardinal.

And everyone who has not undrstood what I just wrote is probably a socualist because his theoretical economic knowledge is so hopelessly outdated that he might as well deny the germ theory of disease .

[/quote]

The subjective value theories fail to describe reality and result in circular reasoning. The labor theory is the only one capable of describing our reality (not necessarily important to an Austrianist, who does not take reality into account).
[/quote]

Look, this is not even up for debate.

No economist worth his salt that I know of, no matter what school he belongs to, believes in objective price theories since Pareto.

And Pareto wrote his book on ordinal utility around 1850.

So sorry.
[/quote]

If it’s such a sensitive topic to you (understandably so) that you don’t want to debate it, that’s fine, but to pretend that the subjective theory is the only workable theory of value is to delude yourself.

And no economist worth his salt today believes in the Austrian school, but that doensn’t stop you from asserting its truth. It is a fallacy to suggest that a proposition is true simply because it is widely believed.

Besides, Marx published Capital in 1867, which is later than 1850. What’s your point?

[quote]polo77j wrote:

[quote]Ryan P. McCarter wrote:

[quote]Bill Roberts wrote:
Hmmm… so now socialism is supposedly a mix of socialism and capitalism, with capitalism being okay if it’s small enough and the socialists deem that you earned your capital with your work. (Does business management count as work, or only hand labor?)

So in this new version you can own the means of production unless the socialists think it has grown too much, and then you cannot own the bakery anymore. Instead the folk that have been doing the routine hand work there are supposed to own it, or socialists as a whole.

But what if you don’t want to give it over when it is “too big” and employs “too many” people? How will they take it from you if not by government force backed by guns? Perhaps mob rule using fists and clubs?

Precisely how can socialism work except as theft, by those who did not create wealth, from those who do, by violence or threat of violence?

Explain, please. I started the bakery myself, using money I’d earned at other jobs. I did all the work: I earned enough money to expand and hire a worker. This process continued and now my bakery is the size that Marx had in mind. I don’t want to and don’t agree to lose ownership.

Explain how it comes to belong to “the people” or “the workers” save by force.[/quote]

There is no “too big.” If you earn money through work, you can dispose of it in any way you wish. See my post to Orion.

Socialism, so far as I know, has never advocated (outside of some fringe groups) the total and utter socializaation of every single thing. It is about the recognition of what is properly social and what is not.

Smaller businesses and independent producers would gradually become obsolete. There is no need to abolish them.[/quote]

What exactly is properly social? Who gets to decide this? Why?

So, socialism is the abollishment of competition?[/quote]

Food supplies would be one example of something which is properly social. Food comes from the land, which no human had any hand in creating, and so not only is the claim to a piece of land by one individual fallacious, but they should not be permitted to control an important resource for the purpose of profit-making.

[quote]polo77j wrote:

[quote]jkeating wrote:

[quote]animal6fat9 wrote:
government control of every aspect of your life.
it has never succeeded anywhere.
[/quote]

never succeeded anywhere? China, the biggest economy in the world, vietnam, cuba, and Laos. are all Marxist/Leninist socialist countries and Bangladesh, Egypt, India, Libya, Sri lanka, Syria and Tanzania, all make constitutional references towards socialism. Define succeed[/quote]

Top 10 GDP per capita (in order from 2009 IMF)
Qatar
Luxemourg
Norway
Brunei
United States
Switzerland
Hong Kong
Ireland
Netherlands
Austria

down near 100 is China (the biggest economy in the world lolololol) at 97 … you might want to reevaluate your argument…[/quote]

Lets not forget that he’s just plain wrong about China anyway

Hey orion, try to be more patronizing in your next post.

I know the difference between cardinal and ordinal utility.

The LTV does no such thing. I kid you not, on page 2 of Capital, Marx writes:

“Hence exchange-value appears to be something accidental and purely relative, and consequently, an intrinsic value, i.e. an exchange-value that is inseparably connected with the commodity, inherent in it, seems a contradiction in terms.” [emphasis mine]

Again, had you read the very first page of Capital, you would find this sentence:

“The commodity is, first of all, an external object, a thing which through its qualities satisfies human needs of whatever kind.”

Hence, if it satisfies no needs, i.e., it is not desired by anyone, it has no value. Only labor which satisfies a need has value. It obviously cannot be any other way. “Value” is a human concept, and so even if the basis of our judgements concerning value are objective, they must be filtered through subjective preferences. How stupid do you think Marx was?

[quote]Objective prioce theories break down at the slightest challenge and cannot account for things like decreasing marginal utility, voluntary exchange and other, most basic economic activities people perform daily.

I.e. they are bullshit.
[/quote]

Perhaps you disagree with the LTV because you know nothing about it?

[quote]orion wrote:

[quote]Ryan P. McCarter wrote:

[quote]orion wrote:

[quote]Ryan P. McCarter wrote:

You are free to buy and possess anything that you can afford with the money that you earned through your work.
[/quote]

Really?

And what if he saves and buys machinery and produces even more?

What if he hires people to work on his machines and yet produces even more?

Seems to me you commune will look like Hong Kong in a few years.

[/quote]

He would not be at all competitive with the huge cooperatives which would dominate manufacturing and other capital-intensive industries, and so he would barely tread water or go out of business. His choice.
[/quote]

Yeah then I will ask you yet again:

Why not build a huge awesome cooperative and show those capitalist pigs?

But if you do, tell us in advance, because your production meetings will be well worth a plane ticket.
[/quote]

For the same reason that a bunch of guys don’t get together and start an aerospace company to compete with Boeing.

[quote]LIFTICVSMAXIMVS wrote:

[quote]Ryan P. McCarter wrote:
Socialism, so far as I know, has never advocated (outside of some fringe groups) the total and utter socializaation of every single thing. It is about the recognition of what is properly social and what is not.
[/quote]

ALL relationships are social! So does this mean there should be interference by the planners to direct these relationships?

And I am speaking in broad strokes with the term relationships because I am not merely speaking about family, sex, etc., but also about those relationships we have with employers, customers, et al.

So where do Socialists draw the line?[/quote]

It’s actually not as difficult as you’re making it. Things like food production, utilities, manufacturing, are social in that they not only affect society at large, but are the product of the coordinated labor of many persons.

[quote]LIFTICVSMAXIMVS wrote:See, Ryan? This quoted text contains two examples of subjective valuation and I will provide one more just for illustration:

I would not pay to listen to you speak, ever![/quote]

sniffle

tears robe

[quote]John S. wrote:
Since I apparently don’t get it and some of our members on here claim that socalism is the way I figure I would start this thread so that they can clearly describe how their system would work.[/quote]

Socialism works great until you run out of other people’s money.

The major means of production would be (though the state takes a different form under socialism than it has under capitalism, and so the term “state ownership” is misleading). Furthermore, unlike capitalists who imagine that we have arrived at “the end if history,” socialists realize the economic system will evolve over time. It would begin, as I said, with major industries converted into cooperatives and placed under some degree of democratic control, in keeping with the idea of planned production for use. Over time, more and more industry would likely come under communal ownership.

In brief, nothing “happened” to that definition, you simply misunderstood it.

Where did that idea come from? No one is interested in taking anything away from you (unless you owned, for instance, a large factory, a large bank, a large farm, etc., in which case you would be expropriated–sorry [though you might be compensated]). But I am assuming you are talking about small businesses, which would likely remain largely untouched. Small businesses pose no threat to the public.

Stop right there. You’re pulling all of this straight out your ass. What part of “abolish all unearned income” is so difficult to comprehend? That kind of thievery is what socialists are against. If you want to get paid, you must work. This applies to everyone, and so there is no welfare, wealth transfer, etc. (again, aside from temporary unemployment, disability, etc).

Because it bears no resemblance to socialism. That’s why.

Again, you’re incredibly confused.

[quote]Ryan P. McCarter wrote:

[quote]LIFTICVSMAXIMVS wrote:

[quote]Ryan P. McCarter wrote:
Socialism, so far as I know, has never advocated (outside of some fringe groups) the total and utter socializaation of every single thing. It is about the recognition of what is properly social and what is not.
[/quote]

ALL relationships are social! So does this mean there should be interference by the planners to direct these relationships?

And I am speaking in broad strokes with the term relationships because I am not merely speaking about family, sex, etc., but also about those relationships we have with employers, customers, et al.

So where do Socialists draw the line?[/quote]

It’s actually not as difficult as you’re making it. Things like food production, utilities, manufacturing, are social in that they not only affect society at large, but are the product of the coordinated labor of many persons.[/quote]

EVERY SINGLE RELATIONSHIP AFFECTS SOCIETY.

SOCIETY IS BUILT UPON RELATIONSHIPS.

When government messes with these relationships they actually cause discoordination in the market. No planners can coordinate society rather it is the markets that must and only can do so.

The planners will always fail at this because even food production, for example, is subjectively valued and without functioning relationships between producers, consumers, buyers, and sellers no farmers would even be capable of planting the seed.

[quote]Ryan P. McCarter wrote:
Hey orion, try to be more patronizing in your next post.

I know the difference between cardinal and ordinal utility.

The LTV does no such thing. I kid you not, on page 2 of Capital, Marx writes:

“Hence exchange-value appears to be something accidental and purely relative, and consequently, an intrinsic value, i.e. an exchange-value that is inseparably connected with the commodity, inherent in it, seems a contradiction in terms.” [emphasis mine]

Again, had you read the very first page of Capital, you would find this sentence:

“The commodity is, first of all, an external object, a thing which through its qualities satisfies human needs of whatever kind.”

Hence, if it satisfies no needs, i.e., it is not desired by anyone, it has no value. Only labor which satisfies a need has value. How stupid do you think Marx was?

[quote]Objective prioce theories break down at the slightest challenge and cannot account for things like decreasing marginal utility, voluntary exchange and other, most basic economic activities people perform daily.

I.e. they are bullshit.
[/quote]

Perhaps you disagree with the LTV because you know nothing about it?
[/quote]

Marx was a very bad economist so why would I want to solve his contradictions?

In the end he believes that you can determine the “real” value of a thing by the amount of work someone put in.

That is an objective price theory, whether he admitts that or not and all other ideas like “exploitation” and so on necesarily follow.

I have to hand it to you Ryan, you know your shit and you argue it very well. I don’t agree with you, but you are a very good adversary.

Just out of curiosity (and you certainly don’t have to answer as things on here are anonymous. Also, I don’t intend to use it against you in any way.), what do you do for a living that allows you to believe in the things you do?

[quote]Ryan P. McCarter wrote:

[quote]orion wrote:

[quote]Ryan P. McCarter wrote:

[quote]orion wrote:

[quote]Ryan P. McCarter wrote:

You are free to buy and possess anything that you can afford with the money that you earned through your work.
[/quote]

Really?

And what if he saves and buys machinery and produces even more?

What if he hires people to work on his machines and yet produces even more?

Seems to me you commune will look like Hong Kong in a few years.

[/quote]

He would not be at all competitive with the huge cooperatives which would dominate manufacturing and other capital-intensive industries, and so he would barely tread water or go out of business. His choice.
[/quote]

Yeah then I will ask you yet again:

Why not build a huge awesome cooperative and show those capitalist pigs?

But if you do, tell us in advance, because your production meetings will be well worth a plane ticket.
[/quote]

For the same reason that a bunch of guys don’t get together and start an aerospace company to compete with Boeing.[/quote]

Yeah well then, start small.

Open a cooperative coffee shop and kick Starbucks ass.

[quote]orion wrote:Marx was a very bad economist so why would I want to solve his contradictions?

In the end he believes that you can determine the “real” value of a thing by the amount of work someone put in.

That is an objective price theory, whether he admitts that or not and all other ideas like “exploitation” and so on necesarily follow.

http://en.wikipedia.org/wiki/Labor_theory_of_value[/quote]

I’ll allow you to save face by not challenging you.

[quote]LIFTICVSMAXIMVS wrote:EVERY SINGLE RELATIONSHIP AFFECTS SOCIETY.

SOCIETY IS BUILT UPON RELATIONSHIPS.

When government messes with these relationships they actually cause discoordination in the market. No planners can coordinate society rather it is the markets that must and only can do so.

The planners will always fail at this because even food production, for example, is subjectively valued and without functioning relationships between producers, consumers, buyers, and sellers no farmers would even be capable of planting the seed.[/quote]

Society is built upon relationships, but most of these have little to no systemic effect on society.

Planners, therefore, neither need nor desire to “coordinate society.” They merely need to coordinate production.

The second part of your post seems to be based on some mysterious idea that I would like to regulate interpersonal relationships.

[quote]orion wrote:Yeah well then, start small.

Open a cooperative coffee shop and kick Starbucks ass.

[/quote]

I don’t desire to open a coffee shop, hence the endeavor has no value to me.

[quote]Ryan P. McCarter wrote:

[quote]MaximusB wrote:
If you are speaking to me, Greece was exactly how you described, even though you were joking in some of your above post. Over 1/3 of the population worked for the government, and had a debt that was over 4 times what the EU even allows. Want to guess on what tanked them? Government pensions and salaries. When you have such little private enterprise in a country, you cannot support the government workers who are paid with taxes from those private enterprises. Germany bailed them out, and has now cracked the whip on them. They are rioting in the streets in Greece, because the people are not getting their entitlements anymore. They can’t just sit at a caffÃ???Ã??Ã?© drinking espresso all day, knowing the government will take care of all their needs.

Government does not create wealth.[/quote]

But Greece was not socialist. They had a right-wing government until last year’s elections. Don’t try to unload their problems on socialism when the socialists weren’t in control.
[/quote]

Right and left wing is backward from the US in the rest of the world…or so I’ve heard.

edit…never mind, i can’t figure out what I’m talking about

Just to make it clear I am no socialist, I was just reading this interesting conversation and thought I somewhat understood the concept and could answer some of the questions that arose.

I was just speculating how such a socialist system might work based on what I read the socialist in this thread had written and what I thought might be logical.

Regarding that stopping a business owner from taking profit is theft, I think comparing it to the tax analogy is accurate. You do hard work, you sell the bakery, you earn the money and then you have to pay a significant amount to the government, just because they are entitled to. But in a socialist country perhaps such a system might exist that when you want to take out profit, you are required to pay most of it to workers. So you can’t let the workers do the job and get all the profit, but you get more money if the business does better and so do the workers. From what I have read, the concept of socialism is supposed to be that it doesn’t allow all the money to be concentrated into the hands of a few percentage of the population, but rather tries to make workers, who are the ones who produce something, get most of the money. Such a society should in theory motivate the workers, because they get the profit, not the company owners.

There might be something similar to IRS in socialism, who makes sure you follow the rules and starts the appropriate action if you don’t. It does it the same way every country now does it when a citizen doesn’t want to pay taxes. Of course there would be force and threat of jail involved.

But, thinking about the cooperative bakery, if it really works that well, shouldn’t such communes already exist even in a free market? The owner is a nice guy, he is familiar with socialism, doesn’t want the profit and tries to create his own commune. Because he won’t put the profit into his own pocket, he will be able to pay the bakers more. Because he pays more than competitors, he should get the best bakers, because they want money. Without using all the money earned for his own personal use, but using it for the bakery, he should out-compete other businesses and soon dominate the market. Why hasn’t this happened? Hasn’t anyone figured this out or maybe it just doesn’t work like that in real life?

[quote]Lordcliff wrote:

[quote]Ryan P. McCarter wrote:

[quote]MaximusB wrote:
If you are speaking to me, Greece was exactly how you described, even though you were joking in some of your above post. Over 1/3 of the population worked for the government, and had a debt that was over 4 times what the EU even allows. Want to guess on what tanked them? Government pensions and salaries. When you have such little private enterprise in a country, you cannot support the government workers who are paid with taxes from those private enterprises. Germany bailed them out, and has now cracked the whip on them. They are rioting in the streets in Greece, because the people are not getting their entitlements anymore. They can’t just sit at a caffÃ???Ã???Ã??Ã?© drinking espresso all day, knowing the government will take care of all their needs.

Government does not create wealth.[/quote]

But Greece was not socialist. They had a right-wing government until last year’s elections. Don’t try to unload their problems on socialism when the socialists weren’t in control.
[/quote]

Right and left wing is backward from the US in the rest of the world…or so I’ve heard.

edit…never mind, i can’t figure out what I’m talking about[/quote]

You’re more correct than you think you are. We have a right-wing that’s all about invasive social policy, large government spending and debt (as long as it’s either military, or corporate welfare) and a left-wing wants no military, until there’s a disaster in the middle of whogivesashitistania and then we better get on that, and wants government involvement in pretty much every aspect of our lives except: abortion, drugs and religion.