The Failure of Capitalism

Wednesday, October 5th, 2011

I keep touching on the subject of political and economic systems and it is constantly a topic of introspection. My prior essay on the topic identified socialism and capitalism and outlined their strengths and weaknesses. One of the questions on the online dating site OKCupid is: “overall, has capitalism made the world a better place?” — yes or no. I went back and forth on my answer and offered the explanation, “umm … yes, weakly. It is ONLY good for fast growth (like building a nation), and once we get to a point that we don’t need fast growth, it is very very bad.”

But you know, I’m beginning to think it’s about as useful as using dynamite to go fishing. Sure it’s the fastest way to get all the fish, but aside from that, no good comes from it. So now I declare capitalism a complete failure.

Here’s why.

Let’s move aside from any system and talk about what kind of standards would define a good system. Kind of like a scientific-ish way of looking at it — to look at how we would measure what makes a great system, or a great society.

My first take would be “everyone is genuinely happy all the time”. That’s the ideal target which isn’t actually possible. So what would be acceptable? I’d lean toward “everyone is genuinely happy most of the time” more than “most people are genuinely happy all the time” — in other words, everyone in the society gets to be happy sometimes is better than some people never get to be happy. I’d further say that it be pretty balanced, so there isn’t a group of people who are happy one day a year and another group that are happy 364 days a year.

So what’s happy? I’m kind of a fan of Abraham Maslow’s “Hierarchy of Needs”. I learned about in an intro to psychology class in college and it’s always stuck with me. The gist is that each human being must first have jeir “Basic needs or Physiological needs” met before jee can be content in having jeir “Safety Needs: Security, Order, and Stability” met before jeir need for “Love and Belonging” before jeir need for “Esteem” (feeling successful in life to yourself and others), and all that before jeir “Need for Self-actualization”.

For reference, I’ll quote the Wikipedia’s chart of needs to identify the specific examples that Maslow defined, adding my own interpretation/clarification where applicable:

  • Physiological — breathing, food, water, sex [physiological sexual release], sleep, homeostasis [rudimentary nutrition and shelter; e.g. letting the body heal itself and not freezing to death], excretion
  • Safety — Security of: body, employment, resources, morality, the family, health, property
  • Love/belonging — friendship, family, sexual intimacy
  • Esteem — self-esteem, confidence, achievement, respect of others, respect by others
  • Self-actualization — morality, creativity, spontaneity, problem solving, lack of prejudice, accepting of facts

I claim this is the path to genuine happiness as it fits with my own life experience. For instance, I find it terribly difficult to have high self-esteem when I feel my life is unstable. I can’t say whether the highest layers apply to everyone, in part because they’re a bit more nebulous (e.g. everyone needs water, but what fosters “esteem” in one person may do nothing for someone else.) This is also because the “lower” needs are more primitive to a being, and the “higher” ones are more refined by intelligence.

I guess when I talk about being “everyone is genuinely happy most of the time” I mean more specifically that every citizen has a minimal baseline of needs that are consistently met, and that any individual’s level of needs that are met does not radically change from day-to-day.

What a society should do, at a minimum, is to not prevent an individual from tending to jeir needs, then to protect each individual’s ability to tend to jeir needs from interference by others, and finally that it provide for the needs of all individuals.

But because the needs of an individual are hierarchical, it’s the permission, protection, or providing at the lowest level that counts. In other words, if an arbitrarily foolish society does not prevent anyone from having esteem, but does prevent them from having water, then it is only as good as any society that prevents individuals from having water.

I’m going to attempt this line of logic: the minimal society is no structure at all which does nothing to prevent self-fulfillment of needs, but also does nothing to protect individuals from one another, and does nothing to provide. So any society that actively prevents the fulfillment of any need is necessarily worse than the minimal society. Thus, all societies worth considering must not prevent self-fulfillment of any need at any level.

Next, better societies protect a higher level of tending to needs from prevention by others. For instance, a society that protects individuals right to tend to all their basic needs from intrusion by others is better than one that fails to protect an individual’s ability to tend to the need for food, even if (because of the hierarchical nature of needs) it protects individuals tending to the needs of safety.

And finally, the idyllic society would technically fulfill all needs, but that is necessarily impossible as some needs are met through introspection, (which curiously, by my read the definition of Christian “heaven” seems to be a society that fulfills all needs in exactly that way). Thus the idyllic achievable society is limited to providing all externally achievable needs (idyllic in that it is unachievable, but intended as a goal to aspire toward).

So now I can finally start comparing systems.

Pure capitalism — pure competition — actively prevents no person’s ability to tend to jeir needs, but it provides no protection and fulfills no needs. It is essentially a system predicated on the wild state, and therefore indistinguishable from no system at all.

More realistically, there is the United States flavor of capitalism which, as it stands today, has some socialist elements. In general, it does not prevent tending to needs (although by taxing people who earn less than a minimal living wage, I could argue that it prevents those people from tending to their basic needs.) The laws we have protect individuals tending to most of their basic needs, and a few needs of safety from prevention by others. It provides a bit of a safety net and provides for breathing, food, and water in the form of welfare. On the standard of “everyone is genuinely happy most of the time”, it’s limited to the most rudimentary basic needs — ergo, “everyone” is guaranteed not to starve to death, although you might freeze to death. By these standards, on the scale of how good things could be, it’s pretty lousy.

To try and stay concrete, I’ll turn to the International Covenant on Economic, Social, and Cultural Rights. It’s a document that outlines a more substantial set of rights for individuals that includes fulfillment of essentially all the basic needs, and nearly all of the safety needs. On brief assessment, I see it as a far superior system, and something worth working towards.

My fundamental argument pivots on belief in Maslow’s hierarchy, and that is the nature of humans to constantly attempt to attain their needs. When all the needs on a particular level are fulfilled, it is in our nature to strive to fulfill the needs at a higher level. And by depriving individuals of fulfilling the needs at a particular level, it is impossible to fulfill needs at a higher level (at least in any sustainable, genuine way). Look to your own life and comment if you can provide a counterexample — specifically that you have not fulfilled your needs on one level yet feel it would make no difference to do so to improve your ability to fulfill your needs at a higher level.

My point is that even if there are some people who will not strive to fulfill needs at a higher level, it is worth it to offer as much opportunity to everyone else who will. That is what makes a society great.

Discussing Anarchism Against Racism, Sexism, and Homophobia

Thursday, May 19th, 2011

For the past three weeks or so, people have been meeting at The Flying Squirrel Community Space (285 Clarissa St., formerly the Flower City Elks Lodge) to discuss anarchism. Having not attended the earlier meetings, I can’t really tell what constitutes anarchism (e.g. self-rule? using the self-organizing facet of humanity? not having a government?) but I couldn’t help but attend the seemingly unusual topic of “Anarchism Against Racism, Sexism, and Homophobia”.

I’d say there were about 15 people there, and most of them had attended the other meetings and read the associated articles — it’s something of a free-school model. I think everyone expected a more lively discussion because the topics were so emotionally-charged, but the ground we covered between was fruitful and interesting.

In short, Capitalism depends on exploiting value to gain more than is spent. Through that, it seems to demand an underclass: a group of people who are considered lesser and therefore are free to be exploited. (In fact, the only way great wealth and power is achieved is by exploiting others.) And the way to identify the underclass is to tie the “underclass-ness” to a defining characteristic: woman, gay, black, Irish.

Anarchism, by eliminating the presumption of authority, denies the creation of an underclass. In other words, anarchism (when considered “self-defined rule”) does not permit the creation of people having authority: it is up to each individual to grant that authority. So there is no way for an authority to declare that you are X and therefore shall be exploited; rather, you as an individual would have to grant an authority that power, and permit yourself to be exploited. Presumably you would never volunteer for that.

The trouble is that the system I live with (that is, in America) will always find a new underclass to exploit. Lately it seems Hispanic people and followers of Islam are the newest targets (not that they were ever considered equals). Although we have also exploited the Chinese in their own land to that end, and I suspect the next source of cheap labor will be on the African continent. I find it a distasteful cycle that I’d like to see end sooner than later.

Pure -isms

Wednesday, November 17th, 2010

A long time ago, I wrote about political terminology, but I guess I’ll give it another spin. Even then I was muddling political terms with economic systems and I’ll do it again now. Actually, no: I’m pretty much just talking about economic systems. And pretty much just two of them: capitalism and socialism.

In my opinion, any purely applied economic system is doomed to its obvious point of failure. Pure capitalism leads to de facto slavery wherein a few people own all the necessary resources and everyone else is completely devalued (for instance, consider if one person or group owned all the drinking water — only those who owned water would have any power.) Pure socialism drains the desire to create as all of ones needs are met which, in turn, leads to economic collapse as there are no workers to provide the services.

As such, I think there are two viable alternatives: capitalism tempered by socialism, and socialism tempered by capitalism. At first blush they seem nearly identical, but I argue that there is a critical difference: how it affects personal priorities.

Let me start with a socialist system tempered by capitalism because, at this point that I’m writing, I think doing so will make a more interesting argument with a stronger impact. If someone comes up with a new idea, their socialist side asks, “how will this help people?” They’d tend to favor ideas that help people. Then — as their socialism is tempered by capitalism — an idea that really does help people will lead them to financial reward.

On the other hand, a capitalist system tempered by socialism leads one with a new idea to think, “how can I make money with this?” As such, they’d tend to favor ideas that make money. But tempered with socialism, ideas that are socially costly would necessarily be financially costly to those who manifest that idea.

I find myself frustratingly mired in the latter scenario. In particular, I tire of people telling me, “you could make a lot of money with that.” I feel terribly alone making things that I think help people and not getting attaboy’d for that facet of it. When I build a tall bike, people never seem particularly impressed that it makes the world smile — that it makes everyone just a little happier. When I talk about some new bike safety blinker, nobody cares that it might prevent someone from getting hit by a car. [Yeah yeah, I'm on a bicycling kick.] All they seem to care about is money. And they think I am (or that I will be, or that I should want to be) rich because of it.

In essence, I’m mired in the same thing that burns the midnight oil of the anti-socialists: I tire of people lingering around waiting for a cash hand-out. I’m not some goddamned leprechaun with a pot of gold stashed away hoping you don’t find it. I’m just trying to have fun. That’s among the oldest and most tenacious of my philosophical thoughts (I remember arguing with my high-school guidance councilor that “having fun” was a valid life goal.) So I cannot believe in any alternative. Money is not everything. He who dies with the most toys most certainly does not win. And money can’t buy happiness. (Ok, so that last one really is the pacifying aphorism.)

Seeing a Performance of Rossum’s Universal Robots at the MuCCC

Friday, July 2nd, 2010

I went to see Rossum’s Universal Robots (R.U.R.) at The Multi-Use Community Cultural Center (MuCCC) (142 Atlantic Ave.) with a group from The Rochester Speculative Literature Association (R-SPEC). When I was in high school, I read the play in English class. It seemed okay back then and I did remember it, but it was amused for my feelings for it all those years ago to bubble back up.

The play starts off with Helena, the daughter of the president, visits the robot factory with the intention to liberate the robots as if they were human. In this, we are dumped into the misogynistic world of 1920 Czechoslovakia de Karel Capek (despite it being set in some undefined future). It was intolerable. The Helena character is borderline mentally disabled, a staple of female characters written by men who never listened to a woman. (I even recall hating Helena in my high school reading as well.) The robot factory is on an island, and (naturally) exclusively operated by men. Even the robots were almost exclusively men [which you may have noticed didn't change in storytelling until writers realized that robots were not superior to humans, at which they started being female] except for one: a replica of Helena who was “useless as a worker” because of her whimsical ways.

But okay, I grit my teeth and did my best to not be overwhelmed by that central theme.

The story trundles along, revealing the robots to be organic things akin to super-smart, human-looking, genetically modified animals. It’s clear that Capek is making a statement about the ideal worker in either a communist or capitalist world: one that works tirelessly, has no internal drive, and that requires virtually nothing in the form of pay. The robots (naturally) revolt and (despite their intelligence and realization of a finite lifespan) kill off all the humans. Except for those in the factory, at least for a while. They enslave the factory operators in an attempt to extract the formula to make more robots. But all is not lost for humanity and its attempt to be a god, for Helena R. (the robot) apparently has a function after all — at least in not-so-subtle implication.

Aside from introducing the word “robot” into the lexicon, I have to say this play offers really nothing else. It combines man’s desire to be a god, the oppressed rising up against their oppressors, and an overwhelming dose of “women are only good for housekeeping and making babies.” I want to say that an adaptation would be improved by eliminating the misogynistic overtones, but it so central to the plot that it seems an insurmountable task. At least the actors did their best with it and did a fine job with the script-in-hand reading.

Listening to Rick Dorschel Sell Cars at Thursday Thinkers

Thursday, February 11th, 2010

I finally managed to get out of the house and get to The Kate Gleason Auditorium at The Rochester Public Library (115 South Ave.) in time for Thursday Thinkers. Rick Dorschel was there to discuss, Where’s My Electric Car? Imagine my disappointment when I found it to not only be a press conference (that is, “way to advertise for free”), but possibly the most ill-informed Thursday Thinkers I’ve ever attended.

He started out talking about the problems in the latest Toyota recall concerning accelerator pedals sticking. My dad said they showed a diagram of the mechanism on the news, and it was an affront to good design: even a cursory glance reveals to an engineer like him that the mechanism can easily bind. Dorschel, however, said the problem was related to the complexity of synchronizing 4 computers on-board — largely to meet efficiency and emissions standards (implying, in my opinion of his tone, that the days of carburated engines were far better, and further, that government interference in capitalism was to blame more than anything else). As a computer programmer and electronics designer, I can tell you flat out that synchronizing the behavior of 4 computers is not simple, but it is well within modern techniques to make it extremely reliable and to make it fail safely. Dorschel also said that the computer was designed to split user input on the accelerator and brake “50-50″. What the shit is that? If you have an accelerator and brake system, if the user attempts to use both, you always pick the brakes! In these days of computer-controlled throttles, there is absolutely no reason to make the car behave like a 1960′s muscle car.

He went on to reassure the audience that Toyota is still a quality car, and the problems they have encountered have been fixed. No drivers in the Rochester area have reported a stuck accelerator — it is, after all, rare. Alas, he did not say how the design process was changed to add checks to make sure such bad design decisions are not propagated to the public. I can only assume it’s “business as usual” at Toyota until, and after, the next problem. Same as all car companies for that matter — there’s no reason to buck the system when, as an amoral corporation, it can achieve such easy free publicity at the cost of a few dead customers. Heck, did you see the advertising they’re doing about safety? Ride that publicity wave to profit, for that is all that matters.

But on to the actual topic at hand …

Dorschel starts out by referring to electric cars as “golf carts” that are street-legal. Way to kick things off with your GM-based logic — presumably referencing the literal street-legal electric golf-cart from Chrysler-owned Global Electric Motorcars, LLC. Anyway, his discussion was rife with inaccuracy. Dorschel is indeed good at selling cars. But on the topic of cars and transportation, not so much.

He referred to the future of electric cars as being hampered by the battery. In some ways, this is true: with today’s technology, it is impossible to replace the quick-fueling internal combustion engine, and electric vehicles are essentially limited to (at best) a 300 mile daily range, followed by hours to recharge. However, he completely misses the boat that things are changing. Many people can get by without owning a car at all, relying instead on public transportation, bicycling, and walking for most trips, and using a car sharing or car rental service for when an automobile is most convenient. Considering the prevalence of car rental and sharing services, one could literally get by on a commuter car. Also, the notion of driving your own private vehicle to a far-away destination is a concept only possible after the middle of the 20th Century. The belief that all things that we have now will be available forever, and new things will only add to that is plain foolish.

He said that ethanol is a failure because it takes more energy to make than it produces which is true, but he went on to claim that hydrogen and the fuel cell is the answer. I had to pick my jaw off the floor on that one: hydrogen is, at present, a mediocre energy storage medium. It will always cost more to buy hydrogen than to buy energy some other way because it’s one more step removed. In other words, energy is attained from one source (i.e. petroleum, coal, solar, wind, hydroelectric, or nuclear) and used to convert inaccessible hydrogen (like in water) into accessible hydrogen (like hydrogen gas). Therefore, hydrogen from petroleum will necessarily cost more than petroleum itself — it doesn’t just exist in pockets below the earth like oil does. Another way to look at this is that ethanol produced from, say, corn is essentially energy from the sun; harvesting that energy takes more energy than you get out. Hydrogen is guaranteed to be the same way. His statement that we may someday use the hydrogen and fuel cell in our car to power our house may be possible, but it would be excessively costly compared to the energy systems we have now — for that matter, we can leave our car idling in the driveway and run an inverter to run our house today, but who’s foolish enough to waste that kind of money?

He gave a sheepish shrug when he said that Americans want giant cars. Someone asked, “if Madison Avenue can make giant SUV’s and pick-up trucks desirable, why not energy efficient cars?” He had no answer, but said that all he knew is that they have such a hard time with consumers because they demand big cars when gas is under $2/gallon and small ones when it’s over $4. After a grumble of support for gas over $5/gallon, he claimed that it would be yet another way that government interfered with our freedom. I had enough and asked, “why, then, is it okay to pay property taxes to pay for roads, but not for that same amount to come from gas tax?” He said that he hates government interference as well, and we should probably start a tea party (I believe he was talking about the conservative-funded astroturf protest called the Tea Party movement.) I think it’s funny that he thinks that subsidizing his industry is called “freedom” but taxing based on use is “government interference”.

Alas, in the end, Rick Dorschel struck me as a stalwart buggy-whip salesman. The fundamental business model under which car dealerships operate is eroding as people migrate toward more reasonable, ecological, and debt-free solutions.