The journey from there to here
Published on December 31, 2007 By Gideon MacLeish In Politics

One of my pet theories about creating a functional society deals with micro- vs. macro- socialism. I've detailed the two before, so I won't revisit that here.

One of the reasons that microsocialism doesn't get much airplay, is because true socialists don't like it. And the reason why shows precisely why socialism is wrong.

Say you have two communities. Community A is, basically a commune. Everyone contributes equally to the commune, everyone shares equally in the commune's wealth. It's a blissful little community, where every need is taken care of. Community B is entirely based on free enterprise. There is no minimum wage, the market sets the prevailing wage, and everyone is free to succeed or fail on the fruits of their own labor.

Now let's assume that you're a busy little beaver and you live in Community A. You put in 60 hours a week, and in the first month there, you have laid the septic systems for 100 houses. And you go home, right next door to your neighbour, who slept half the day on the end of his shovel handle while you labored away. Yet you have identical houses, identical cars, your appliances are all the same, everything you have is equal. You just received the exact same proceeds as a reward for working ten times as hard.

Lowering the quality and quantity of your work is not an option. You're proud of your work and you continue to labor away.

Now, someone comes to visit from Community B. Their best plumber just left town. He comes over, and because they need a plumber, and are in short supply, he tells you that you can make 20 times what you are making in Community B.

Do you stay, for the benefit of the community? Only if you have "idiot" stamped on your forehead. If you're smart, you beat feet for Community B, with the smoke rising from your footsteps.

Meanwhile, back in Community B, you set up your house next to a guy who has a habit of sleeping till noon. He's the shovel leaner in the community. His house  is in disrepair and he is in debt up to his eyeballs. He asks around about who the new guy is, and he hears you came from a community where everyone makes the same wage. Anyone want to take a wild guess what he does? Yup. He borrows enough money for a bus ticket to Community A.

Before long, Community A has a community full of shovel leaners, and Community B is wealthy beyond their wildest imagination, because they've gathered the most productive citizens, leaving the least productive to populate Community A.

Now, the only way to stop this from happening, simply, is by force. Community A will have to force their most productive members, at the point of a gun, to remain in the community. They will need to cloister themselves off, and hopefully keep these productive members from even hearing about Community B, lest they load up and leave in the middle of the night. Democracy cannot exist, because for it to exist, they would need to recognize the fact that they have essentially given a disproportionate share of power to the least productive elements.

These situations are not at all hypothetical. One look at history shows repeatedly that when one's labor is appropriated too heavily by their government, be it through taxes, tributes, or other system of economic control, the subjects do one of two things. They either emigrate, or they revolt. Don't believe me? Head on down to Little Havana in Miami and ask why those folks are there.

There are few people who doubt that we should provide a certain amount of assistance to those who CANNOT (read: are INCAPABLE OF) fend for themselves. I know I sure don't. But for those who WILL NOT, providing them with ANY government assistance is essentially penalizing the most productive elements of our society.

As we enter the primary season, it's key to note that the key Democratic proposals would essentially work to punish the most productive elements. To socialize medicine and make it work, the Democrats will need the most "productive" (read: the healthiest) individuals in the pool to minimize the risk. They cannot create a system that creates health care only for those who are currently uninsured, as many of those individuals are uninsured either by choice or because they are currently uninsurable!

It's one thing for you to have compassion for another one. That's right, and that's good. It's an admirable trait, to be sure. But it is quite another thing for you to force me at gunpoint, to exhibit the same compassion. You can sell all YOU have and give it to the poor, but do not demand that I do the same.


Comments (Page 1)
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on Jan 01, 2008
*bump*
on Jan 01, 2008
is there a happy middle
on Jan 02, 2008
I am interested to see the comments here.  I like your comparison, and want to see how some of the resident socialists will respond.
on Jan 02, 2008
i could back universal health care if it didn't take away any choices.
on Jan 02, 2008

Another good example comes two of my National Guard units.

In one unit (19th Special Forces Group), the chow was great.  The Mess Sergeant and the cooks worked hard to give us meals we would enjoy.  We all ate at that chow hall... we even looked forward to our meals there.

In another unit (144th Combat Support Hospital), the food was terrible.  The Mess Sergeant and cooks felt like all they had to do was cook the food and serve it... and that's all they accomplished.

Both units had the same food budget, both Mess Sergeants had access to the same quality and variety of food.

The Mess Sergeant at the hospital unit complained to the Sergeant Major that he and his cooks worked all day to provide meals for the unit, but only a handful of troops bothered showing up to eat.  Instead most of us were willing to pay for food at restaurants, or even bring a sack lunch from home.

Instead of chewing out the whiny Mess Sergeant for his substandard leadership and piss poor attitude, the Sergeant Major showed up at our next formation.  He gave us all a big lecture on the importance of supporting our mess section and reminded us that there might be a day when we didn't have restaurants a few blocks away.  He then read an order from the unit commander stating that none of us were excused from the armory for lunch.

I'm sure the very idea of having to be ordered to eat at the armory would have been a foreign concept at the 19th Group chow hall.

Force is the only way macrosocialism can exist.  The only reason microsocialism works is everyone who participates can choose to leave if they want.

on Jan 02, 2008

Good concepts for both communities. I however would like to put forward my version (dons flame shield

If community A were complete socialism with no market of any kind, yes you could definitely run into the shovel-leaner syndrome.

However, for community B you would ultimately run into the same scenario that we see in small towns all across north America....  a small number of individuals, say a dozen or so families meet with success and essentially take over the town. While there may be many enterprising individuals in the beginning with great ideas and plenty of motivation, most of them WILL not succeed. This is supported by numbers in the real world- the majority of small businesses go belly-up within two years. Ultimately there will be this relatively small group of winners that end up owning most of the substantial businesses, and with the profits from that they eventually get into the real estate market (unless that's where they started in the first place) and end up purchasing apartment buildings and houses, which they then rent out to the people working for them in their businesses. This is the fait d'acompli for them as now their money is largely recycled through their employees. This mini-dynasty creation doesn't happen all at once, it is a gradual thing that takes place over a period of years. There is nothing unnatural about this, we see it time and again in nature... there always ends up being a top dog or alpha male that ends up running the pack and calling the shots.

So, at the end of the day you have a group of a dozen or so families that effectively run the town, even if they aren't on council or have the mayorship (which one or two of them probably will) But they're undoubtedly all members of the chamber of commerce and respectable social vehicles like the rotary club, knights of columbus or whatever the town may have. What this means is they're in the best position- because they own most of the business and are the largest providers of employment and tax revenue (which they always take the opportunity to remind the town just how much they are needed for that tax revenue) They essentially rule the roost, and can do so because it is in their best interest to stay in solidarity with each other and on any issues that come up.

If papa Joe wants to open up a walmart in town, he and the other oligarchs can exert tremendous pressure on the town to let it go through. If an entrepreneur wants to come to town and open up a new business that might threaten the existing mini-empire built by the families, they can also effectively stop it from happening by threatening to close or move their business elsewhere. Or of course by saying that the new business would harm them, they the local small businessmen would then have no choice but to close or downsize. So best off if we just don't let it happen, wink wink nudge nudge.

In the town that I grew up in there was a fellow who owned a couple of restaurants, a bunch of rental properties and was a significant partner in the local pulp and paper mill (one of the largest employers, family owned, non-unionized with a big sign at the front gate that said "Jesus is Lord!") He was a real entrepreneur to his credit and it payed off. He also paid his employees dirt, many of whom he was also landlord to. He was very stingy on giving raises- you would have to have worked for him for several years before even considering it, but he would always help out one of his employees if they ran into money trouble by offering them a loan, with an oh-so generous interest rate of xx %.

Sadly, many of his employees thought he was the greatest thing since sliced bread and didn't see the fact that he was nakedly exploiting them. Now of course this is partly their fault in not understanding the situation, but it doesn't change the fact that he was still a scumbag that made his riches off the backs of his ignorant workers.

So yes, community A could definitely happen in pure socialism. But for community B, that kind of pure market entrepreneurial environment will never exist, because there will always be a predator looking for a kill, and a poor dumb sod who doesn't know any better and becomes the prey!

on Jan 02, 2008
So yes, community A could definitely happen in pure socialism. But for community B, that kind of pure market entrepreneurial environment will never exist, because there will always be a predator looking for a kill, and a poor dumb sod who doesn't know any better and becomes the prey!


I disagree, Arty. Our current system is NOT pure capitalism, and, in fact, is far from it. In pure capitalism, if you build a better mousetrap, and market it, you can make a living off of it. In our society, you have to run the gauntlet of patent attorneys, regulatory acts and enough bureaucracy to keep you in paperwork for years. Ever see the movie "Tucker: A Man and His Dream?" That's a good example of why our society is FAR from a pure capitalist society.

The only reason oligarchs run our societies is because we allow it. We confuse collective bargaining with socialism, when in fact it is a key capitalist concept (capitalism is about the free marketing of goods and services; the working man has nothing to put on the market but his labor). We favor large businesses because we have such a poor understanding of economics that we believe low price equates to value when many times, it does not.

Of course, neither community could exist in its "pure" state, which is why we need, to some degree, a mixed economy. But pure capitalism is as untried as pure communism.
on Jan 02, 2008

Of course, neither community could exist in its "pure" state, which is why we need, to some degree, a mixed economy. But pure capitalism is as untried as pure communism.

Heh heh, that's what I'm trying to say in my example above. At the end of the day, nothing ever works as advertised and life ends up in some sort of compromise to try and accomodate reality!

on Jan 02, 2008
At the end of the day, nothing ever works as advertised and life ends up in some sort of compromise to try and accomodate reality!


You've hit on a very key point of mine, arty...

And that is, the reason why Libertarians make great writers and yet don't have a lot of political clout...

Because it's easy to take a hardline position on paper, not so easy to do so in the legislature.

I still remain a diehard Libertarian as I see it as the party most open to reform and closest to my views. But at the end of the day, if I'm not open to compromise, even if I get INTO office, I'm not likely to stay there. So my philosophy is to pick my battles, hold fast to my core values and be a little more willing to give on the less essential ones.

Ideally, I believe nobody should be witout the essentials of life. We agree here, we just disagree how to go about it. I believe a truly "progressive" welfare system would be tooled towards its own obsolescence, And that programs within the system should work towards addressing the core problems, not just throwing money at it. I believe these are best implemented at the state level rather than the federal level so that each state can address its own unique needs.
on Jan 03, 2008

We favor large businesses because we have such a poor understanding of economics that we believe low price equates to value when many times, it does not.

No, not really confusion.  Marketing.  Low prices (and often associated with lower quality) represent a marketing plow by (usually a start up) a company to gain market share before increasing prices.  That plus they have the advantage of lower over head (which goes to your statement that we do not have pure anything as one of the theories - unrealized mostly - is economies of scale).

With few exceptions, people understand that lower prices means lower quality, but that is what fits into their budget.  Everyone would love to drive a Mercedes as they are synonymous with quality.  Yet most do not have the capital to drive such a car.

on Jan 03, 2008
With few exceptions, people understand that lower prices means lower quality, but that is what fits into their budget.


I honestly doubt it, Dr. Guy. If people truly realized that lower price is usually not value, they wouldn't blow so much of their money on junk while scrimping on the essentials.
on Jan 03, 2008
If people truly realized that lower price is usually not value, they wouldn't blow so much of their money on junk while scrimping on the essentials.


This is one of those things that I guess will always be a matter of opinion. What you see as a failure to understand the quality, I see as consumerism. They want their wants when they want them (or as Brad has stated, they have no concept of delayed gratification).
on Jan 03, 2008
Everyone would love to drive a Mercedes as they are synonymous with quality.


They're not actually. People think they are because Mercedes have a great marketing department, but if you look at the comparison of mechanical faults over the first five years (the length of time most cars are owned) Mercedes do okay but not as well as you'd think.

Companies like Toyota, Porsche, Honday and surprisingly enough Hyundai actually top these charts.

I don't think pure capitalism could ever work because of marketing. We know too much about human psychology to ever consider the market to be a level playing field. It's always tilted towards those established enough to afford a good marketing division. If you know how people think, you can persuade a much higher number to buy your products than if you just trusted to blind luck or intuition.
on Jan 03, 2008
With few exceptions, people understand that lower prices means lower quality, but that is what fits into their budget.



reminds me of a story


this lady goes into a store and tells the clerk that she wants their best widget. so the clerk goes and gets the widget and tells the lady it was $5. the lady responds and says no i want your best widget. so the clerk goes and gets the same product 3 times and tells the lady $5. each time the lady says no i want your best one. so the guy finally goes and gets the same widget again and said $15. the lady went away happy.
on Jan 03, 2008
Companies like Toyota, Porsche, Honday and surprisingly enough Hyundai actually top these charts.


Honday?

It could very well be great marketing. But I wont buy one because I cant afford it. Now if I could........
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