For the partisan of deadly nonsense, the person on the other side is neither right nor wrong, since rightness and wrongness are never to be discussed: the person on the other side is merely a jackass, a bigot, ignorant, uninformed, pathetically stupid, Neanderthal, reactionary, bitter, a yokel, a class-traitor, and racist, racist, racist, and racist.
If you are arguing with someone, say, who has a better education than you, a higher I.Q., with perhaps a doctorate in law and a career as a journalist and a published series of books on his resume, that does not matter. The mere fact that he comes to different conclusions than the Party line indicates that he is stupid uneducated Nazi bigot, and a stupid bigoted fascist racist moron.
This is argumentum ad cloaca —— ratiocination via offal. Whatever the loudest donkey laughs loudest at, you take to be untrue. Since that was the way (admit it!) you yourself were convinced, O ye of little mind, it is the first, usually the only means, to which you resort to convince others: the volume and clamor is what matters, not the content.
The reason for the inadequacy of these condemnations, the reason why they are so unimaginative, is because of the paucity of the moral vocabulary of the Left. They do not have words to express outrage, so they sneer and yodel. They are like creature struck dumb, and only able to act out their condemnation by means of antic pantomime.
The more closely they follow Marx, the more impoverished their moral vocabulary becomes. You cannot call someone evil once you accept the proposition that all standards of good and evil are merely genetically-determined group survival behaviors, or merely culturally determined artifacts, or merely ideological superstructures meant to promote class interests. Your concept has lost its referents: it can be used only metaphorically, or ironically.
Likewise, you cannot call someone damned if you don’t believe in damnation. There is no such thing as blasphemy if there is nothing sacred, supernatural, or divine.
Likewise again, you cannot call someone illogical if logic is no longer the standard used to separate self-consistent from self-contradictory statements: because then you would have to argue the merits of the case, and rely on reason, like Adam Smith, rather than on verbal fetishes, like Karl Marx.
Our Progressive detractors have to call the object of their scorn a racist (or a parallel word, such as sexist, lookist, homophobe, capitalist, colorist, agist, whateverist) because that is the only arrow in their quiver. That is the only thing they have to shoot, so they shoot, and do not care how short of the target the dart falls.
John C. Wright, “The Crazy Years and their Empty Moral Vocabulary”, John C. Wright, 2019-02-18.
March 19, 2022
QotD: The sterility of partisan political argument
February 13, 2022
QotD: Marx’s labour theory of value gets tenure
According to the Collge Fix, labor-based grading “involves assigning grades based on the ‘labor’ students put into their assignments, rather than the grammar, style and quality of their work.”
At last, we know the answer to the question almost no one was asking: What happens when Karl Marx’s labor theory of value gets tenure?
The labor theory of value is very popular on the Left, probably because it makes no sense. Marx — who never labored once in his entire life — proposed that “labor” has inherent value, that “if we disregard the use-value of commodities, they have only one property left, that of being products of labor.”
I assure you it sounds even stupider in the original German.
The short version is that “labor” determines a product’s value, not the competitive marketplace.
It’s a crackpot theory, easily demolished.
Take the example of a skilled pastry chef and … me.
Give a few dollars worth of flour, sugar, butter, etc., to that chef and after a couple of hours of his labors, he can sell you a gorgeous and tasty cake that you would be happy to pay a lot of money to buy.
I don’t bake and have no interest in baking. Let me labor on those same ingredients for the same two hours, and you’ll get a hot mess worth less than the value of the ingredients that went into it.
(Apologies: This is not my example, but I can’t find an online resource listing the original author. [I first encountered this in a Robert Heinlein novel, but he may have been paraphrasing someone else])
It’s not the “labor,” it’s the results.
Now we’re supposed to apply this same thinking to grading English papers.
We’re supposed to accept that one student’s craptaculently-written essay has the same value as another student’s beautifully written paper because they both put the same amount of labor into writing them.
What Inoue wants college instructors to do is apply crackpot Marxist theory to those who will be disadvantaged the most if they aren’t taught proper English.
Stephen Green, “Fight ‘White Language Supremacy,’ Prof Will Grade on ‘Labor’ Not Results”, Vodkapundity, 2021-11-10.
January 25, 2022
The fantasy of a modern economy without money
Jon Hersey and Thomas Walker-Werth consider the claim that we’d all be better off without money in a truly modern, egalitarian society:
Capitalism, to the extent it has existed, has been incredibly successful at lifting most of humanity out of poverty, incentivizing the creation of incredible, life-enhancing technologies, such as those Maezawa used to make his fortune — not to mention, travel to space. But it’s long had its critics, and he is far from the first to propose a sort of Garden-of-Eden world where everything is plentiful and free. Karl Marx envisioned a similar utopia. Communism, he said, ultimately would bring about a world without money:
In the case of socialised production the money-capital is eliminated. Society distributes labour-power and means of production to the different branches of production. The producers may, for all it matters, receive paper vouchers entitling them to withdraw from the social supplies of consumer goods a quantity corresponding to their labour-time. These vouchers are not money. They do not circulate.
And although “society distributes labour-power” — meaning government planners tell people what to do to ensure that things (such as “free” Ferraris) get made — workers could also all pursue whatever hobbies or occupations strike their fancy. “[I]n communist society,” Marx explained,
where nobody has one exclusive sphere of activity but each can become accomplished in any branch he wishes, society regulates the general production and thus makes it possible for me to do one thing today and another tomorrow, to hunt in the morning, to fish in the afternoon, rear cattle in the evening, criticize after dinner, just as I have in mind, without ever becoming hunter, fisherman, shepherd or critic.
[…]
Although Marx considered himself a social scientist and economist — and although his ideas are still some of the most widely taught — they aren’t much taught in social science or economics departments, except as foils. That’s because virtually all of Marx’s hypotheses have been debunked. For one, who’s going to build the free Ferraris that Maezawa has dreamed up, never mind tackle more mundane tasks, with no incentive? But for those who don’t find such commonsense thought experiments convincing — or who think, as Marx did, that human nature will somehow mysteriously change — the impracticality of Marx’s moneyless state was demonstrated by what Austrian economists have come to call the calculation problem. Ludwig von Mises once explained the problem as follows:
If a hydroelectric power station is to be built, one must know whether or not this is the most economical way to produce the energy needed. How can he know this if he cannot calculate costs and output?
We may admit that in its initial period a socialist regime could to some extent rely upon the experience of the preceding age of capitalism. But what is to be done later, as conditions change more and more? Of what use could the prices of 1900 be for the director in 1949? And what use can the director in 1980 derive from the knowledge of the prices of 1949?
The paradox of “planning” is that it cannot plan, because of the absence of economic calculation. What is called a planned economy is no economy at all. It is just a system of groping about in the dark.
In short, without prices, people have no relatable, quantifiable means of comparing and contrasting options about how to spend time and capital, which is vital for determining how best to use these naturally scarce resources. “New Scientist magazine reported that in the future, cars could be powered by hazelnuts,” said comedian Jimmy Fallon, in a skit that captures this point hilariously. “That’s encouraging, considering an eight-ounce jar of hazelnuts costs about nine dollars. Yeah, I’ve got an idea for a car that runs on bald eagle heads and Fabergé eggs.”
July 29, 2021
In The Shadow of Napoleon – The 2nd French Empire Before 1870 I GLORY & DEFEAT
realtimehistory
Published 12 Jul 2021Support Glory & Defeat: https://realtimehistory.net/gloryandd…
After Napoleon I had conquered and then lost Europe, France went through multiple revolutions. In 1851, Napoleon’s nephew and French president Louis-Napoléon Bonaparte took control and in 1852 crowned himself Emperor Napoleon III. The new French Empire wanted to regain the glory of Napoleon’s uncle and together with his wife Empress Eugenie he ruled a state known for lavish balls and spending.
» OUR PODCAST
https://realtimehistory.net/podcast – interviews with historians and background info for the show.» LITERATURE
Arand, Tobias: 1870/71. Die Geschichte des Deutsch-Französischen Kriegs erzählt in Einzelschicksalen. Hamburg 2018Arand, Tobias/Bunnenberg, Christian (Hrsg.): Karl Klein. Fröschweiler Chronik. Kriegs- und Friedensbilder aus dem Krieg 1870. Kommentierte Edition. Hamburg 2021
Gouttman, Alain. La grande défaite de 1870-1871. Paris 2015
Herre, Franz: Eugénie. Kaiserin der Franzosen. Stuttgart, München 2000
Rieder, Heinz: Napoleon III. Abenteurer und Imperator. München 1998
» SOURCES
Bonaparte, Prince Napoléon-Louis: Des Idées Napoléoniennes. London 1839Marx, Karl: Der achtzehnte Brumaire des Louis Napoleon. Hamburg 1869
Maupassant, Guy de: Bel-Ami. Paris 1901
N.N. (Hrsg): Fontane, Theodor. Aus den Tagen der Okkupation. Eine Osterreise durch Nordfrankreich und Elsaß-Lothingen 1871. Berlin (Ost) 1984
» OUR STORE
Website: https://realtimehistory.net»CREDITS
Presented by: Jesse Alexander
Written by: Cathérine Pfauth, Dr. Tobias Arand, Jesse Alexander
Director: Toni Steller & Florian Wittig
Director of Photography: Toni Steller
Sound: Above Zero
Editing: Toni Steller
Motion Design: Philipp Appelt
Mixing, Mastering & Sound Design: http://above-zero.com
Maps: Battlefield Design
Research by: Cathérine Pfauth, Prof. Dr. Tobias Arand
Fact checking: Cathérine Pfauth, Prof. Dr. Tobias ArandChannel Design: Battlefield Design
Contains licensed material by getty images
All rights reserved – Real Time History GmbH 2021
May 31, 2021
“For four generations our culture and education has been in the hands of an unholy hybrid of Marxism and Rousseau’s Romanticism”
In the most recent edition of the Libertarian Enterprise, Sarah Hoyt regrets not learning some traditional — manual — skills when she was younger, and how children today are even worse served by the education system:
… there are are other things. I mean, husband and I to an extent were thrown in to the world with no clue how to do the most basic things, like home maintenance or how to clean with proper products, how to take care of clothes, how to do anything with our savings other than let it sit in the bank, how to organize and sort files and records. It goes on. (I do still tend to use bleach for most things. It’s cheap. I have at least learned what it will damage.) Our first ten years of marriage would make a good sitcom, as they had a repeating pattern: figure out we need to do something; extrapolate how it can be done; invest untold amount of time and effort into doing thing; find out after that it can be done in a simpler and cheaper way. And then people wonder why I curse.
And so many times, we just come up on something that must be done — even now — and have no clue how to get to the place where we can even think about how to do it. Teaching the kids what we never learned has been fun, too.
Heck, even in my religion — and I taught it was a young woman — I keep coming across these massive gaps where no one ever taught me what to do or why. As for the education my kids got: pfui.
In the same way, I’ve spent most of my adult life learning history, grammar, natural science and the basics of things that I supposedly learned the advanced form for with my degree, but without anyone ever teaching me the fundamentals.
Kind of like part of my degree is the study of literature but until I read Dwight Swain’s Techniques of the Selling Writer I’d never realized that books are composed of conflict and reaction units. (No, not physical conflict, though heck, you could sell that.) Instead I tried to fit them into the structure of plays and wondered why it wasn’t working.
Because no one had ever taught me the basics. I mean, I knew how to do a lot of advanced things, even as a beginning writer. I just had no clue how to do the basic things. And it showed.
For four generations our culture and education has been in the hands of an unholy hybrid of Marxism and Rousseau’s Romanticism. (The two are related in that both believe that natural man left to his own devices creates paradise.)
I can understand how those scarred by the long war of the 20th century would decide that they were going to ditch all the evil bad things in civilization and let the children grow up “naturally” so they would be sweet and innocent angels. (Spit.) I understand but I don’t forgive. If they thought what they saw in the war was the result of Western Civilization, they’d never studied other civilizations or for that matter hid in a playground and watched the children be “natural”.
Then the cascade started. People who only half learned could only half teach. On top of which the doubts instilled in them about the purpose of civilization made them teach less than half. And the next generation knew less. And then less.
More than once, as an inquisitive student, I’d go to my teacher and ask why something worked the way it did or didn’t work the way they said, only to be given a glib explanation I knew was wrong. I must have been 11 the first time I realized the teacher had no more clue than I did. (This was a good thing. It set me on a path of researching and investigating on my own.)
By the time my kids were in school it had become more so, partly because to justify themselves, and abate the feeling they were incompetent, people derived entire theories on why they shouldn’t learn the basics, learning the basics was bad, and you could be so much better by learning naturally.
I don’t have enough words to revile the “immersion” method of language learning, particularly was applied in our schools. Yes, sure “but the military used it” – yeah, but the military could enforce LIVING in the language. It also — which seems to elude most people — does teach people grammar and vocabulary in formal classroom settings.
[…]
Part of the unlearning are people who never learned enough to realize what works and what doesn’t trying to do things in ways that only work for a very few highly gifted individuals. That’s how we got whole word, new math, total immersion, whateverthehelltheyretryingnow all of which involved “less work for teachers” and the vague hope that unschooled children, or children who learned “naturally” were just somehow “better”.
Kind of like what would happen if I decided my digit dyslexic, half-baked way with wood meant my making, say, a table that was lopsided and wobbly made the table better and more authentic.
April 25, 2021
April 24, 2021
QotD: Marxism and the teenage mind
Marxism just seems right to teenagers of all ages. Teenagers’ only frame of reference is their parents, and to the inexperienced — as all teenagers by definition are — even the best parents seem willful and capricious, if not outright tyrannical. (The gray, wrinkled teenagers who refuse to learn merely substitute “society” for “their parents” in their emotional incontinence). Teenagers live in a weirdly binary world, where the switches can only be “on” or “off,” yet all terms are undefined.
That’s why the worst thing a teenager can think of is “unfair.” It’s wrong because it feels wrong, and anything that’s wrong must be somebody’s fault — again, how could it be otherwise? Parents can’t afford to let their kids learn big lessons the hard way. Literally can’t afford it, in that teenagers can’t see why, for example, you can’t take that turn at 85 mph on an icy road. You can explain it to them until you’re blue in the face, but as anyone who has spent any time around teenagers knows, there’s a large subset of them that will simply refuse to get it. Alas, those tend to be the brighter ones, and so a large part of the subtle art of teenager management is setting up smaller, less catastrophic situations for them to fuck up, such that they hopefully learn by analogy. Which is still, of course, the grownups’ fault …
A big part of growing up, then, is: realizing that not everything is someone’s fault. Every effect has a cause, that’s a simple truth of logic, but not every event has a cause. The real world, grownups know, is what Buddha said it is, a nexus of causes and conditions. Even the simplest event has innumerable proximate causes, necessary-but-not-sufficient conditions, and so on. If you want to argue, in terms of pure logic, that every event is an intersection of a long series of causal chains that are all, in theory, perfectly discoverable, go nuts, but for all practical purposes, shit just happens. Accepting that is one of the foundation stones of adulthood.
From that perspective, one’s youthful Marxism seems silly, and nothing seems sillier than Marx’s endless ranting against the perfidy of “the capitalists.” Just as your parents aren’t really the capricious tyrants you thought they were when they wouldn’t let you use the car on Friday night, so even the biggest of businessmen are just people. Marx paints them as cartoonishly evil, but though a guy like Andrew Carnegie was a real bastard in his youth, no doubt about that, he too grew up, becoming a staunch philanthropist and anti-imperialist. So, too, with the labor theory of value, which is the closest thing to the quintessence of the teenage mind ever put to paper — those Air Jordans are “overpriced,” no one denies that, but it’s simply not true that selling $5 shoes for $200 is “exploitation.” There’s this thing called “demand,” and … well, you get it.
Severian, “Marx Was Right After All (on ongoing series”, Rotten Chestnuts, 2021-01-12.
April 16, 2021
March 23, 2021
QotD: Marx was right … but not about the proletariat
Karl Marx, damn his rotten soul, was right. Or, more accurately, his followers made him right. The Proletariat never achieved class consciousness on their own. Nor did they do it with the assistance of the Vanguard Party, like Lenin thought. In fact, they only did it — incompletely; they’re in the process of doing it now — with the assistance of a bunch of drooling idiots who can’t even spell “Karl Marx.” I’m speaking, of course, of the Apparat, the managerial class, the iron rice bowl perma-bureaucracy that runs the Imperial Capital.
Those fuckheads achieved class consciousness here in the last 30 years, and now they’re doing what Marx said the Proletariat would – making Revolution, overturning the system, causing the State to wither away as they pursue their own interests against tradition, religion, all enemies foreign and domestic. Theirs is a “Marxism” boiled down to its essence: Nihilistic, suicidal envy.
[…]
Once they achieve class consciousness, the Revolution is inevitable – Marx was right about that, too. There are only so many places in the Apparat, after all, and the number of talented, ambitious people in the Empire — even now, after a century’s worth of mandatory “education” — far exceeds the number of make-work jobs the Apparat, any Apparat, can support. Provided we survive it, it will be some cold comfort, watching the bewilderment in their faces as they’re lined up against the wall. Ever read Darkness at Noon?
Severian, “Skynet Becomes Self-Aware”, Rotten Chestnuts, 2020-12-11.
February 2, 2021
When the self-defined elites achieved class consciousness
At Rotten Chestnuts Severian adds to his ongoing series of posts identifying areas where Marx was right:
… I liken Karl Marx to one of those bird-masked medieval Plague doctors — he sees the pathology clearly, indeed far faster and better than anyone else, but his proposed “cure” is far likelier to kill you than the actual disease. Worse, what makes Marx’s cure especially lethal is what ends up making his diagnosis essentially right: It’s a self-fulfilling prophecy.
The proletariat is achieving class consciousness, all right — look no further than the GameStop “short squeeze” for proof. But the only reason the proles are achieving class consciousness is because the “capitalists” forced them to, just like Marx said they would. The Elite and the Bureaucracy (usually, but not always, a distinction without a difference) finally achieved class consciousness through the combination of NAFTA and the Louvre Accords. Starting around 1990, then, the Elite self-consciously embraced their role as rootless, stateless, jet-setting parasites (with the wannabe-Elites in the Media, academia, and the bureaucracies signing up for tours of duty as fart-catchers, both to bask in reflected glory and in hopes of being promoted).
In short, our “Capitalists” — really, “financial-ists” or “spreadsheet gangsters,” since they don’t actually make anything, they just bust out existing firms via debt manipulation — behave exactly as Marx described factory owners behaving all the way back in the First Industrial Revolution.In my naivete, I used to think Marx’s ranting was hyperbole. I cited the example of Andrew Carnegie — a real bastard in his youth, who went on to be one of the world’s great philanthropists. That’s human behavior, I said, as opposed to the bloodthirsty caricature of Marx’s fantasies … but I was wrong, comrades. Carnegie happily would’ve sold his fellow Americans down the river, just as Bezos, Gates, and the rest of the pirates-in-neckties are happily selling us down the river now. Only two things prevented it back then: one structural, one cultural.
The structural one is simply technology, and therefore uninteresting. Britain’s “free traders” — you know, the Jardine-Matheson types who started the Opium Wars for fun and profit — would’ve happily outsourced Britain’s entire industrial base to China if they hadn’t been hampered by wind speed. By the time this was technically feasible — which is about 1860, if you’re keeping score — simple inertia had taken over. They didn’t retool until they had to, at which point instant communications and modern ships … well, you know the rest. Like I said, it’s vital, but boring.
The cultural one is much more interesting. You might be tempted to say, as I did, that Jardine and Matheson were always on the lookout for #1, of course, but were sincere British patriots for all that, just as Carnegie for all his faults was an authentic American. I doubt it, comrades. I sincerely doubt it. What kept these guys in check wasn’t patriotism, or even culture. Rather, it was fear.
January 22, 2021
QotD: The enclosure movement, in historical fact and in Marxist imagining
Consider, for example, that the tenfold increase [in the population of London] was in the period before the expropriative parliamentary enclosures of Marxist legend, when state fiat was used to deny smaller farmers their ancient, customary rights to use the land near their villages. While the very first of these enclosure acts appeared as early as 1604, parliamentary enclosure only really got going from the mid-eighteenth century. Instead, for the period in question, enclosure happened in a piecemeal way, with the open fields gradually dissolving as farmers exchanged or sold their tiny strips of land, over time amalgamating them into larger, privately controlled plots. With ownership concentrated in fewer and fewer hands, it became relatively easy to gain the unanimity needed to suspend common rights. The process played out in myriad ways all over the country, sometimes with amicable agreement and voluntary exchange, sometimes with ruthless monopolising of the land, with the already-large owners systematically buying out their neighbours. In some cases it involved the consolidation of existing arable land, in others it meant the conversion of forest, heath, marsh, or fen — the traditional “wastes”, to which the poorer villagers might have had various customary rights to gather firewood for fuel, or to graze their cattle, or to hunt for small game — into land that could be used for farming or pasture.
How this process played out all depended on extremely specific, local conditions. But on the whole it was slow — piecemeal enclosure had been happening to varying degrees since at least the fourteenth century. It’s hard to see how such a sporadic and piecemeal process could have led to such consistently and increasingly massive numbers flocking specifically to London. Indeed, the fact that they singled out London as their target suggests that this narrative might have it back-to-front. Some economic historians argue that it was the prospect of higher wages in the ever-growing metropolis that induced farmers to leave the countryside in the first place, selling up or abandoning their plots to those they left behind. Rather than enclosure pushing peasants off the land and into the city, London’s specific pull may instead have thus created the vacuum that allowed the remaining farmers to bring about enclosure. Otherwise, why didn’t the peasants simply flock to any old urban centre? The second-tier cities like Norwich or Bristol or Exeter or Coventry or York would all have been far less dangerous.
Anton Howes, “London the Great”, Age of Invention, 2020-10-20.
November 30, 2020
August 3, 2020
Romanticizing the past
Sarah Hoyt points out that the past really is a foreign country and they do things very differently there … and for good reasons:
So, quickly: The industrial revolution was not a disaster to your average peasant. It was a disaster for landowners.
Yes, yes, the conditions in the factories were terrible. By our standards. The lifespan was very short. By our standards. The anomie of the big cities, yadda yadda. When compared to what? Small villages? Ask those of us raised in them. Yes, there was child labor. As compared to what at that time? Other than the life of the upper classes?
Look, we don’t have to guess about this stuff. In India, in China, in other places that came to the industrial revolution very late, we’ve seen peasants leave the land where their ancestors had labored, to flock to the big cities, to take work we find horrible and exploitative at wages we find ridiculous.
And even if China has added “labor camp” and prisoner wrinkles to it, note that’s because China is a shitty communist country, not because the migration wasn’t there before. Also the labor camp aspects, as much as one can tell (and it’s hard to tell, due to the raging insanity of the regime) seem to have grown as the people grew more prosperous, as a result of the industrial revolution and thereby demanded higher wages, which positioned China more poorly as the “factory of the world.”
In fact, idealizing “living off the land” has been in place since at least the Roman empire, and probably before. It’s also been MISERABLE at least since then and probably before.
Because pre-industrial revolution farming sucked. It sucked horribly. And it kept you on the edge of subsistence. It double sucked when you were subjected to a Lord. Look, systems of serfdom, etc. didn’t come about because living in a Lord’s domain was so great, and everyone wove wreaths and danced around maypoles all the time, okay?
The bucolic paradise of a farmer’s life was mostly a creation of city dwellers, often noblemen, who saw it from the outside.
There are estimations that most people had trouble rearing even one child, and most of one generation’s peasants were people fallen from higher status. I don’t know. That might be exaggerated. Or it might not.
Even during the industrial revolution, it was normal for ladies bountiful to take baskets of food to tenant farmers because … they couldn’t make it on their own.
And btw, the more the industrial revolution pulled people to the cities, the more the Lords and “elites” talked about how great the countryside was and how terrible the factories/cities/new way of living were.
A lot of artists and pseudo bohemians jumped in on this bandwagon and so did Marx, who was both a pseudo bohemian, by birth “elite” (Well, his family had a virtual slave attached to him. He impregnated her too, as was his privilege), and by self-flattery intellectual.
Therefore the factories were the worst thing ever, the men who owned them, aka capitalists were terrible, terrible people — mostly because Marx wasn’t one, and probably because they laughed at him — and the proletariat they exploited horribly would rise up and —
All bullshit of course. Later on his fiction needed retconning by Anthony Gramsci who, having the sense to realize the “workers” weren’t rising up, just getting wealthier and escaping the clutches of the “elites” more made the “proletariat” a sort of “world proletariat” centered on poorer/more dysfunctional countries. This had the advantage of making the exploited masses always be elsewhere (or the supposed exploiters) and therefore made it easier to pitch group against group to the eternal profit of rather corrupt “elites.” Mostly political classes which are descended from “the best people.”
August 2, 2020
QotD: Marx’s imperfect economic understanding
We’re at the 200th anniversary of Karl Marx’s birth – also the 201st of Ricardo’s publication, the 242nd of Smith’s Wealth of Nations. And it has to be said that the latter two were more perceptive analysts of the human condition and also contributed vastly more to human knowledge and happiness. Most of the bits that Marx got right in economics were in fact lifted from those other two. The one big thing he got wrong was not to believe them about markets.
We can find, if we look properly, Marx’s insistences of how appalling monopoly capitalism would be in Smith. They’re both right too, it would be appalling. But we do have to understand what they both mean by this. In modern terms they mean monopsony, more specifically the monopoly buyer of labour. What is it that prevents this? Competition in the market among capitalists for access to the labour they desire to exploit. That very competition decreasing the amount of grinding of faces into the dust they’re able to do. Henry Ford’s $5 a day is an excellent example of this very point.
Ford wanted access to the best manufacturing labour of his time. He also wanted to have a lower turnover of that labour, lower training costs. So, he doubled wages (actually, normal wages plus a 100% bonus if you did things the Ford Way) and got that labour. At which point all the other manufacturers had to try and compete with those higher wages in order to get that labour they wanted to expropriate the sweat of the brow from. Marx did get this, he pointed out that exactly this sort of competition, in the absence of a reserve army of the unemployed, is what would raise real wages as productivity improved.
Smith also didn’t like the setting of wages as it precluded just such competition and such wage rises.
Where Marx went wrong was in not realising this power of markets. He knew of them, obviously, understood the idea, but just didn’t understand their power to ameliorate, destroy even, that march to monopoly capitalism.
[…]
The thing we really need to know on this bicentenary about Karl Marx is that he was wrong. He just never did grasp the power of markets to disrupt, even prevent, the tendencies he saw in capitalism. Specifically, and something we all need to know today, the power of competition among capitalists as the method of improving the lives of all us wage slaves. You know, that’s why we proletariat today, exploited as we are and ground into the dust, are the best fed, longest lived and richest, in every sense of the word, human beings who have ever existed. Something which is, if we’re honest about it, not a bad recommendation for a socio-economic system really. You know, actually working? Achieving the aim of improving the human condition?
Tim Worstall, “Marx At 200 – Yes, He Was Wrong, Badly Wrong”, Continental Telegraph, 2018-05-04.