Quotulatiousness

May 14, 2019

QotD: Karl Marx, noted racist

Filed under: History, Politics, Quotations — Tags: , , , — Nicholas @ 01:00

For those who see Marx as their hero, there are a few historical tidbits they might find interesting. Nathaniel Weyl, himself a former communist, dug them up for his 1979 book, Karl Marx: Racist. For example, Marx didn’t think much of Mexicans. When the United States annexed California after the Mexican War, Marx sarcastically asked, “Is it a misfortune that magnificent California was seized from the lazy Mexicans who did not know what to do with it?” Engels shared Marx’s contempt for Mexicans, explaining: “In America we have witnessed the conquest of Mexico and have rejoiced at it. It is to the interest of its own development that Mexico will be placed under the tutelage of the United States.”

Marx had a racial vision that might be interesting to his modern-day black supporters. In a letter to Engels, in reference to his socialist political competitor Ferdinand Lassalle, Marx wrote: “It is now completely clear to me that he, as is proved by his cranial formation and his hair, descends from the Negroes who had joined Moses’ exodus from Egypt, assuming that his mother or grandmother on the paternal side had not interbred with a nigger. Now this union of Judaism and Germanism with a basic Negro substance must produce a peculiar product. The obtrusiveness of the fellow is also nigger-like.” Engels shared Marx’s racial philosophy. In 1887, Paul Lafargue, who was Marx’s son-in-law, was a candidate for a council seat in a Paris district that contained a zoo. Engels claimed that Lafargue had “one-eighth or one-twelfth nigger blood.” In a letter to Lafargue’s wife, Engels wrote, “Being in his quality as a nigger, a degree nearer to the rest of the animal kingdom than the rest of us, he is undoubtedly the most appropriate representative of that district.”

Marx was also an anti-Semite, as seen in his essay titled “On the Jewish Question,” which was published in 1844. Marx asked: “What is the worldly religion of the Jew? Huckstering. What is his worldly God? Money. … Money is the jealous god of Israel, in face of which no other god may exist. Money degrades all the gods of man — and turns them into commodities. … The bill of exchange is the real god of the Jew. His god is only an illusory bill of exchange. … The chimerical nationality of the Jew is the nationality of the merchant, of the man of money in general.”

Walter E. Williams, “What Do Leftists Celebrate?”, Townhall.com, 2017-05-10.

December 30, 2018

QotD: The national honour

Filed under: Government, History, Quotations, USA — Tags: , , , — Nicholas @ 01:00

The Greek historian Thucydides argued that countries go to war for three reasons: honor, fear and interest. He put honor first, and yet that is probably the least appreciated aspect of foreign policy today. Historian Donald Kagan, in his essay “Honor, Interest, Nation-State,” recounts how since antiquity, nations have put honor ahead of interest. “For the last 2,500 years, at least, states have usually conducted their affairs and have often gone to war for reasons that would not pass the test of ‘vital national interests’ posed by modern students of politics.”

“On countless occasions,” he continues, “states have acted to defend or foster a collection of beliefs and feelings that ran counter to their practical interests and have placed their security at risk, persisting in their course even when the costs were high and the danger was evident.”

Americans instinctively understand this when our own honor is at stake. The rallying cry during the Barbary Wars, “Millions for defense, but not one cent for tribute,” has almost become part of the national creed. I am no fan of Karl Marx, but he was surely right when he observed that “shame is a kind of anger turned in on itself. And if a whole nation were to feel ashamed it would be like a lion recoiling in order to spring.”

Both the first and second world wars cannot be properly understood without taking the role national honor plays in foreign affairs. Similarly, Vladimir Putin’s constant testing of the West only makes sense when you take into account the despot’s core conviction that the fall of the Soviet Union was a blow to Russian prestige and honor.

Jonah Goldberg, “Humiliating Mexico Over Border Wall Would Be a Big Mistake”, TownHall.com, 2017-01-27.

December 6, 2018

“Marx was right”

Filed under: Europe, History, Politics — Tags: , , , , , — Nicholas @ 03:00

An interesting little bit of history and philosophy over at Rotten Chestnuts:

Marx was right: Society really is shaped by relations between the means of production.

The Middle Ages, for instance, organized itself around defense from marauding barbarian hordes. Fast, heavy cavalry were the apex of military technology at the time; the so-called “feudal” system were the cavalry’s support. The system was field tested in the later Roman empire — medieval titles like “duke” came from the ranks of the Roman posse comitatus — and perfected in the Dark Ages.

When the barbarians had been pacified sufficiently that Europeans had leisure time to think about this stuff, they took the feudal system — at that point a cumbersome relic — as their model for society. Hobbes, Locke, et al saw it as the origin of the Social Contract; Marx saw it as finely tuned oppression. But here’s the fun part:

Hobbes ends his Leviathan with the most absolute monarch that could ever be. He starts* with… wait for it… the equality of man. Marx, on the other hand, ends with the equality of man. He starts with a frank, indeed brutal, acknowledgment of man’s inequality. As much as I love Hobbes (and consider Leviathan the only political philosophy book worth reading), he’s wrong — fundamentally wrong — and Marx is right. Marx went wrong somewhere down the line; Hobbes jumped the track from page one.

Marx only went wrong when he started dabbling in metaphysics. Marxism isn’t the original underpants gnome philosophy, but it’s certainly the best — not least because Marx’s followers were so successful at hiding the deus ex machina that was supposed to bring Communism about. Marx didn’t just say “The Revolution will happen because that’s the way all the trend lines are pointing.” He said “the trend lines are pointing that way, and oh yeah, the animating Spirit of History demands that the Revolution shall happen.” This is so obviously sub-Hegelian junk that his followers dropped it as fast as they could, but to Marx himself it was the key to his philosophy. For all its formidable technobabble, Marxism is just another chiliastic mystery cult.

[…] Enlightenment-wise, Hobbes was the start, Marx the end of political philosophy, and both are flawed beyond redemption. Hobbes sure sounds like a viable alternative to Marx, because Hobbes’s reasoning seems sound, and based on an irrefutable premise: That in the State of Nature, life is nasty, poor, solitary, brutish, and short. But that’s not Hobbes’s premise — the fundamental equality of man in the State of Nature is. Life in the State of Nature is brutal because all men are equal.

* If you’ve read Leviathan, of course, you know he starts the book itself with a long discourse on contemporary physics. Hobbes was an innovator there, too — he’s the first person to put forth his humanistic ideas as the coldly logical deductions of physical science. It’d be fun to taunt the “I fucking love science” crowd with that, except they think Hobbes is a cuddly cartoon tiger and “Leviathan” one of the lesser houses at Hogwarts.

September 22, 2018

QotD: Epicurean influences on Marx

Filed under: Books, History, Quotations — Tags: , , , — Nicholas @ 01:00

… what’s also interesting is that our friends the Marxists also thought Epicurus was a great philosopher. Marx himself did his doctoral dissertation on the differences between the atomism of Epicurus and his forerunner Democritus.

Most books on Epicureanism published in France in the 20th century were written by Marxists. (Well, I suppose you could say that of most books published in France on any topics in the 20th century…!) I have a booklet on Lucretius at home published in France in the 1950s in a collection called Les classiques du peupleThe classics of the people. In the Acknowledgement section, the author thanks all the Soviet specialists of Epicureanism and materialism for any original insight that might appear in the book.

Marx found in Epicureanism a materialist conception of nature that rejected all teleology and all religious conceptions of natural and social existence.

Martin Masse, “The Epicurean roots of some classical liberal and Misesian concepts“, speaking at the Austrian Scholars Conference, Auburn Alabama, 2005-03-18.

July 23, 2018

QotD: The revolution of the proletariat wouldn’t play out the way Marx imagined

Filed under: Politics, Quotations — Tags: , , , — Nicholas @ 01:00

I remember a friend telling me that multi-culti was knocked out of his young skull when he got a job as a construction worker for the summer. Marxism too. He said if revolution came from the proletariat, the resulting society would view wife beating as a sort of little hobby, on the side, nothing bad, just a little indulgence on Saturday night. (Mind you this was not in the US. The US working class is by and large better than this.) And all those prejudices against other races/sexual orientations/etc? Yeah, the working class had no problems with those. Only a privileged twit like Marx could think that the working class all over the world wanted to unite. They tend to be rather more nationalistic than their “betters” after all. More all sorts of “ists” too (racist, sexist and homophobic[ist for completism]). It’s what works at their level, and virtue signaling buys them nothing.

Sarah Hoyt, “A Very Diverse Cake”, According to Hoyt, 2016-08-31.

July 8, 2018

QotD: Marx on how to run a true communist state

Filed under: Government, History, Politics, Quotations — Tags: , , , — Nicholas @ 01:00

What really clinched this for me was the discussion of Marx’s (lack of) description of how to run a communist state. I’d always heard that Marx was long on condemnations of capitalism and short on blueprints for communism, and the couple of Marx’s works I read in college confirmed he really didn’t talk about that very much. It seemed like a pretty big gap.

[…]

I figured that Marx had just fallen into a similar trap. He’d probably made a few vague plans, like “Oh, decisions will be made by a committee of workers,” and “Property will be held in common and consensus democracy will choose who gets what,” and felt like the rest was just details. That’s the sort of error I could at least sympathize with, despite its horrendous consequences.

But in fact Marx was philosophically opposed, as a matter of principle, to any planning about the structure of communist governments or economies. He would come out and say “It is irresponsible to talk about how communist governments and economies will work.” He believed it was a scientific law, analogous to the laws of physics, that once capitalism was removed, a perfect communist government would form of its own accord. There might be some very light planning, a couple of discussions, but these would just be epiphenomena of the governing historical laws working themselves out. Just as, a dam having been removed, a river will eventually reach the sea somehow, so capitalism having been removed society will eventually reach a perfect state of freedom and cooperation.

Singer blames Hegel. Hegel viewed all human history as the World-Spirit trying to recognize and incarnate itself. As it overcomes its various confusions and false dichotomies, it advances into forms that more completely incarnate the World-Spirit and then moves onto the next problem. Finally, it ends with the World-Spirit completely incarnated – possibly in the form of early 19th century Prussia – and everything is great forever.

Marx famously exports Hegel’s mysticism into a materialistic version where the World-Spirit operates upon class relations rather than the interconnectedness of all things, and where you don’t come out and call it the World-Spirit – but he basically keeps the system intact. So once the World-Spirit resolves the dichotomy between Capitalist and Proletariat, then it can more completely incarnate itself and move on to the next problem. Except that this is the final problem (the proof of this is trivial and is left as exercise for the reader) so the World-Spirit becomes fully incarnate and everything is great forever. And you want to plan for how that should happen? Are you saying you know better than the World-Spirit, Comrade?

I am starting to think I was previously a little too charitable toward Marx. My objections were of the sort “You didn’t really consider the idea of welfare capitalism with a social safety net” or “communist society is very difficult to implement in principle,” whereas they should have looked more like “You are basically just telling us to destroy all of the institutions that sustain human civilization and trust that what is baaaasically a giant planet-sized ghost will make sure everything works out.”

Scott Alexander, “Book Review: Singer on Marx”, Slate Star Codex, 2014-09-13.

July 2, 2018

The holy book of Marx and the religion of progress

Filed under: Europe, History, Politics, Religion, USA — Tags: , , — Nicholas @ 03:00

In the latest Libertarian Enterprise, Sarah Hoyt discusses the religious nature of progressive thought in the western world:

While the left not only filled every nook and cranny of twentieth century “narrative industries” to the point the only way a conservative could work in one of those was under deep, deep cover, the engineers made the internet.

The left didn’t even know it really had any serious opposition left. You can’t blame them too much. Even those of us who were very opposed and very disgusted kept it polite in public and treated them as retarded children who couldn’t take opposition.

Would it have made any difference if we’d talked back, say 30 years ago?

I doubt it.

You see, leftism is as much as anything else a religion. The crazy Marx with his vision of the future created an entire narrative from paradise (pre-capitalism, i.e. it never existed, guys, not even as apes. Apes, as we now know, trade) through fall into capitalism to eventual paradise again, where the New Man (what used to be called the Soviet Man) will be so altruistic and communally oriented that a government isn’t needed. (Like the peace of Islam, there’s only one way to obtain that, and no. Just no. Worldwide species extinction is as fantastical as the idea of that primordial paradise. Humans are humans, and someone will survive. I’m just not interested in letting them send us back ten thousand years.)

You hear it in the talk of the left — particularly the rather intellectually inbred fourth generation, who ate the pap the older people fed them and never had an original thought in their lives — stuff like calling us “reactionaries” (when they’re the ones in power, and have been for a long time, and the ones knee-jerk reacting) and talking about “the future” as belonging utterly to them, and the arrow of history, as though history were the chart in their book, with an arrow beneath.

Their faith doesn’t align particularly well with reality. For instance there’s the whole thing of them talking about us — always — as though we were the ones in power, when they have all the gatekeeping positions and all the contacts.

This dissonance has required them to make up invisible monsters that give us all the power: Patriarchy (a laughable idiocy in America and weak everywhere in the west. While they refuse to see it in the Middle East and Latin America where it actually exists in spades.) Micro aggressions. White privilege (which is so strong that it gives an edge to concentration camp survivors.)

All the while they refuse to admit the real privilege: Leftist privilege. The fastest way to rise in the narrative fields is to be lefter-than-thou. Because they’re in charge and that’s how the system is setup, so they can stay in charge.

Unfortunately this has created their isolation. You see, every song, every movie, ever history book, every fictional book, assures them they’ll win. They know that “the people united shall never be defeated.” They also know that though held back by patriarchy, racism, sexism and all the micro aggressions, the people really are with them. HAVE TO BE, because they’re ideology of the future, and history’s arrow points to their paradise. Every book, movie, etc. says so either subtly or openly. So they KNOW. Everybody knows.

March 21, 2018

Millennials and economics

Filed under: Economics — Tags: , , — Nicholas @ 05:00

In the Continental Telegraph, Tim Worstall views-with-alarm the economic illiteracy of many Millennials:

A most amusing piece over in Salon about how American millennials are certain that capitalism just ain’t gonna be around in the future therefore they see no point in saving for their retirements. Boy, ain’t they gonna get a surprise! One of the larger ones being that an absence of capitalism is going to, as it was before the emergence of the system, make having some savings for old age rather more important than it is now.

But there’s more there, of course there is, this is Salon we’re talking about:

    The idea that we millennials’ only hope for retirement is the end of capitalism or the end of the world is actually quite common sentiment among the millennial left. Jokes about being unable to retire or anticipating utter social change by retirement age were ricocheting around the internet long before CNN’s article was published.

Well, that’s a generation shopping in the cat food aisle for their meat requirements in retirement then. But more:

    Many millennials expressed to me their interest in creating self-sustaining communities as their only hope for survival in old age;

Certainly, that’s one way to do it. Move back to that pre-capitalist idea of the self-sustaining community which takes care of its oldsters. Be useful to have a name for those sorts of things but fortunately we’ve got one that already fits – families. Go and have those 6 to 8 kids and hope like hell that one stays home to change diapers. You did it for them after all.

I’m pretty sure that’s not how they’d see it if you presented it to them that way…

Dear Lord, has anyone even taught them some Marxism? For what’s being described there is the True Communism that will arrive once we’ve abolished economic scarcity. The thing which will come through the productive powers of bourgeois capitalism. You know, as Karl The Beard insisted? As, arguably, we have by any reasonable historical standard. A recent potter around Primark – yes, I know, not high up the list of fashionable outlets – showed that you could, or can, purchase an historically adequate set of clothing for a person for £100. Two day’s minimum wage labour. One set of clothes for everyday, one for Sunday Best. Including a warm coat and more changes of underwear than was usual back then.

No, seriously, there’s not been a period of human history when clothing – to give but one example – was as cheap as it is now. Not in relation to the effort needed to acquire it at least.

There’s actually a serious argument to be made that true communism has already arrived. Certainly Karl and Friedrich would be astonished at a society rich enough to be able to afford diversity advisers – if societal productive surplus is great enough to support that idea then surely communism has indeed arrived?

Boy, aren’t these millennials going to have a surprise when they grow up? That the Good Old Days are now?

November 17, 2017

QotD: Karl Marx and relativism

Filed under: Economics, History, Politics, Quotations — Tags: , , , — Nicholas @ 01:00

The most notable philosopher in this tradition was, of course, Karl Marx. He argued that the values of any civilisation — prior, at least, to the socialist culmination — are determined by its mode of production. He says:

    In acquiring new productive forces men change their mode of production; and in changing their mode of production, in changing the way of earning their living, they change all their social relations. The hand-mill gives you society with the feudal lord; the steam-mill society with the industrial capitalist. The same men who establish their social relations in conformity with the material productivity, produce also principles, ideas, and categories, in conformity with their social relations. Thus the ideas, these categories, are as little eternal as the relations they express. They are historical and transitory products.

This is a radically subversive claim. It allows any institution, any custom, any set of beliefs — no matter how obviously right or true they might appear — to be dismissed as “ideology” or “false consciousness”. Let this claim be accepted, and our own claims about the naturalness of market behaviour falls to the ground.

With the remaining exception of North Korea and perhaps too of Cuba, the Marxist political experiments of the twentieth century have all long since collapsed, and, bearing in mind their known record of mass-murder and impoverishment, there are few who will admit to regretting their collapse. But Marxism as a critique of the existing order and as a theory of social change, remains alive and well in the universities. In its reformulation by Gramsci, as further developed by Althusser and Foucault among others, it may be called the dominant ideology of our age. Its hold on the English-speaking world has been noted by both conservative and libertarian writers, and is subject to an increasingly lively debate.

Sean Gabb, “Market Behaviour in the Ancient World: An Overview of the Debate”, 2008-05.

April 3, 2017

Ici Londres: Karl Marx didn’t get a single thing right

Filed under: Economics, History, Politics — Tags: , , , — Nicholas @ 02:00

Published on 22 Mar 2017

March 21, 2017

QotD: Society’s unspoken rules and modern iconoclasts

Filed under: Politics, Quotations, USA — Tags: , , , , , , — Nicholas @ 01:00

Unfortunately for us, starting with Rousseau, someone mistook those rules for “arbitrary and unnecessary.” Now, a lot of them were, of course. Human societies acquire unspoken rules, a lot of them dross, like a dog acquires fleas. And yep, if you follow all the unspoken rules, you’ll reinforce the power of the elites because that’s what the rules are designed to do. […]

But the Rousseau attempt to change those rules started from the idea that all unspoken societal rules were wrong. ALL of them. And that absent them, humans would live in a sort of paradise. I wish he’d been acquainted with some savages, not the least because then he probably wouldn’t have lived to pen his awfully misguided ideas. His ideas have been bouncing around society for a while, aided by Marxism (Marx MUST have been Asperger’s. No, I mean that. He looked at society and had no clue why things functioned, and couldn’t see people as people but as widgets belonging to particular groups which MUST of course be opposed to other groups they interacted with) in its feminist and racialist versions, cut the threads of things that were actually important, functional, and so early-set-in that they were never spoken of.

So women didn’t see the two sides of the bargain and just saw the way their side of it “oppressed” them, which led them to lose the power they did have in society, and now they want it back – see the way they’re racing back to the fainting couch where men can’t touch them or look at them – but since they don’t understand its origins, they’re trying to get it back in all the wrong ways. It’s all “check your privilege” but without ever checking their own privilege, even as it causes white knights to run to their defense. I don’t know how long a society or a culture can last like this. Every time I know of in history, it ended in tears or guillotines.

Sarah Hoyt, “Noblesse Oblige and Mare’s Nests”, According to Hoyt, 2015-05-05.

February 1, 2015

The diminishing applicability of Marx’s view of the class system

Filed under: Books, Economics, History, Politics — Tags: , , — Nicholas @ 04:00

Rick McGinnis on the steadily reducing relationship between the class system as described by Karl Marx and the modern world:

I blame Karl Marx for a lot of things, but after inspiring some of the most destructive and blood-thirsty governments in modern history, his most abidingly destructive legacy is hobbling our understanding of the word “class.” For as long as I’ve been alive, when almost anyone talks about the class system they end up invoking images frozen somewhere in the middle of the European 19th century.

Arrogant entitled aristocrats and heartless mill owners; upright bourgeois, dispirited workers and peasants. It’s a world of frock coats and cloth caps and sunless terraced slums under smoke-filled skies, and while it’s a useful image if you want to start a discussion about the Industrial Revolution, it doesn’t do much to help describe the fluid, amorphous, endlessly adaptable way that class works in the modern world – and probably always has, even if one writer managed to fix the word to a tether at a spot roughly between Jane Austen and Charles Dickens.

Which is why I don’t have much hope that Joel Kotkin’s The New Class Conflict (Telos Press, 220 pages) will do much to budge our discussion of class to a point somewhere closer to the world of suburbs, computers, megamalls, and package vacations. It’s not that Kotkin’s book doesn’t struggle – mostly successfully – to make a discussion about class relevant, but that decades of framing class in antique trappings has made the word and everything it invokes seem anachronistic, or even irrelevant, to modern people and especially Americans.

[…]

Whether intended or not, Kotkin points out that encouraging people to live in crowded cities not only stifles the ownership of private property that’s been a mark of increasing mass material prosperity for two centuries, but it re-creates a renting class at the mercy of moneyed landowners that he describes as a “new feudalism.”

H/T to Kathy Shaidle for the link.

January 2, 2015

QotD: The co-ordination problem of pure Marxism

Filed under: Economics, History, Politics, Quotations — Tags: , , — Nicholas @ 01:00

… it is interesting to analyze Marx as groping toward something game theoretic. This comes across to me in some of his discussions of labor. Marx thinks all value is labor. Yes, capital is nice, but in a sense it is only “crystallized labor” – the fact that a capitalist owns a factory only means that at some other point he got laborers to build a factory for him. So labor does everything, but it gets only a tiny share of the gains produced. This is because capitalists are oppressing the laborers. Once laborers realize what’s up, they can choose to labor in such a way as to give themselves the full gains of their labor.

I think here that he is thinking of coordination as something that happens instantly in the absence of any obstacle to coordination, and the obstacle to coordination is the capitalists and the “false consciousness” they produce. Remove the capitalists, and the workers – who represent the full productive power of humanity – can direct that productive power to however it is most useful. In my language, Marx simply assumed the invisible nation, thought that the result of perfect negotiation by ideal game theoretic agents with 100% cooperation under a veil of ignorance – would also be the result of real negotiation in the real world, as long as there were no capitalists involved. Maybe this idea – of gradually approaching the invisible nation – is what stood in for the World-Spirit in his dialecticalism. Maybe in 1870, this sort of thinking was excusable.

If capitalists are to be thought of as anything other than parasites, part of the explanation of their contribution has to involve coordination. If Marx didn’t understand that coordination is just as hard to produce as linen or armaments or whatever, if he thought you could just assume it, then capitalists seem useless and getting rid of all previous forms of government so that insta-coordination can solve everything seems like a pretty swell idea.

If you admit that, capitalists having disappeared, there’s still going to be competition, positive and negative sum games, free rider problems, tragedies of the commons, and all the rest, then you’ve got to invent a system that solves all of those issues better than capitalism does. That seems to be the real challenge Marxist intellectuals should be setting themselves, and I hope to eventually discover some who have good answers to it. But at least from the little I learned from Singer, I see no reason to believe Marx had the clarity of thought to even understand the question.

Scott Alexander, “Book Review: Singer on Marx”, Slate Star Codex, 2014-09-13.

December 15, 2014

QotD: The “purity” of Marx

Filed under: History, Politics, Quotations — Tags: , , , , — Nicholas @ 00:01

You or I, upon hearing that the plan is to get rid of all government and just have people share all property in common, might ask questions like “But what if someone wants more than their share?” Marx had no interest in that question, because he believed that there was no such thing as human nature, and things like “People sometimes want more than their shares of things” are contingent upon material relations and modes of production, most notably capitalism. If you get rid of capitalism, human beings change completely, such that “wanting more than your share” is no more likely than growing a third arm.

A lot of the liberals I know try to distance themselves from people like Stalin by saying that Marx had a pure original doctrine that they corrupted. But I am finding myself much more sympathetic to the dictators and secret police. They may not have been very nice people, but they were, in a sense, operating in Near Mode. They couldn’t just tell themselves “After the Revolution, no one is going to demand more than their share,” because their philosophies were shaped by the experience of having their subordinates come up to them and say “Boss, that Revolution went great, but now someone’s demanding more than their share, what should we do?” Their systems seem to be part of the unavoidable collision of Marxist doctrine with reality. It’s possible that there are other, better ways to deal with that collision, but “returning to the purity of Marx” doesn’t seem like a workable option.

Scott Alexander, “Book Review: Singer on Marx”, Slate Star Codex, 2014-09-13.

March 30, 2014

In which Tim Worstall admits that Karl Marx was right

Filed under: Business, Economics, Law — Tags: , , , , , — Nicholas @ 10:37

Well, right in this particular analysis, anyway:

Which is where we can bring Karl Marx into the discussion. Wrong as he was on many points he was at times a perceptive analyst. And he noted that what determined the wages of the workers wasn’t some calculation of a “fair wage”, nor some true value of their production (although he had much to say on both points), but in a market economy the wages that were paid were a reflection of what other people were willing to pay for access to that labour.

If, for example, there were a large number of unemployed (that “reserve army of the unemployed”) then a capitalist didn’t have to raise the wages of his workers however far productivity grew. If anyone tried to capture a bit more of the value being created, say through a strike or other activity, then the capitalist could simply fire them and bring in some of those unemployed. No profits needed to be shared with the workers. However, when we get to a situation of full employment then the dynamic changes. It’s not possible to simply hire and fire to keep wages low. For the other capitalists are competing for access to that labour that makes those profits. The higher profits go the higher all capitalists will be willing to bid up wages to continue making some profit at all.

The obverse of this is if the employers collude in order to artificially suppress the wages of the workers which is why that case involving Apple, Google and so on is going to trial. That’s monopoly capitalism that is and we really don’t like it at all.

But in this case with Yahoo trying to challenge Google’s YouTube, it will be the workers who benefit. For the two companies are vying with each other for access to the content being made and thus the profits that can be made. Of whatever revenue can be made a larger portion will go to the producers of the content and a smaller one to the owners of the platforms. Which is excellent, this is exactly what we want to happen.

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