Re: MD the ideology of capitalism

From: Mark Steven Heyman (markheyman@infoproconsulting.com)
Date: Sun May 08 2005 - 04:47:50 BST

  • Next message: Sam Norton: "Re: MD the ideology of capitalism - what is capitalism?"

    Hi Sam,

    On to points 2 and 3...

    On 7 May 2005 at 16:33, Mark Steven Heyman wrote:

    sam:
    The second point is about the nature of capitalism, about which we
    have had conversations before, although I never did get a response to
    the Hernando de Soto arguments - so let's bring them up again here.

    msh:
    I did some googling on de Soto and, so far, am unable to understand
    why you are so impressed with him. The very first thing I read was
    an interview where the first question was: "Why does capitalism fail
    everywhere else and triumph in the West?" Talk about your softball
    questions! Anyone who actually looks at the steadily increasing gap
    between rich and poor in the West, who sees the third-world poverty
    amidst elite splendor, rejects the notion that Capitalism has
    "triumphed" for anyone other than the relative few who prosper from
    it. Nevertheless, deSoto goes on to uncritically wax ecstatic re
    western capitalism. In fact, he sounds more like an Objectivist than
    an economist. But point me to something you find convincing, and
    I'll give it a read.

    sam:
    It seems to me that possibly the most significant difference between
    your and Chomsky's position on the one hand, and the Ayn Randian/ GWB
    type position on the other, is about the status of capitalism. So far
    as I understand Chomsky he sees capitalism as married to state power,
    and that it is an indissoluble union. In other words, it is only
    through the support of state institutions that capitalism obtains. As
    you put it: "I believe Marx was right about this, and that massive
    state-subsidization of large-scale capitalist institutions is the
    only reason they are still around" and therefore "any flavor of
    uncontrolled capitalism leads to environmental, natural resource, and
    human exploitation, and, eventually, to its own destruction."

    msh says:
    There's also a difference between Rand/GWB and Chomksy in that
    Chomsky is clearly further along the path to being a fully-realized
    human being (FRH). And, for clarification, I see no problem with
    small-scale "for-profit" operations, the corner mom-and-pops whose
    influence does not extend beyond the communities they serve. Such
    stores tend to be responsive to the needs of their communities
    because, if they are not, they will go out of business. These I
    exclude from my definition of capitalism.

    sam:
    The Randian point of view would, I think, envision capitalism
    differently, and more along the lines that de Soto describes. In
    other words, capitalism is the product of a congruence of laws and
    customs that enable free and stable transactions to take place. So,
    private property first and foremost, but also the various legal
    protections for contract, the practice of civility and trust, civil
    society as such, all these things form the context within which
    capitalism can develop.

    msh:
    This again is an unrealistic understanding of how and why capitalism
    works, and for whom. Furthermore, it forgets the role of the FRH.
    Although the "congruence of laws and customs that enable free and
    stable transactions to take place" might be necessary for a smooth-
    running society, these things do not axiomatically give rise to
    capitalism. Many non-FRH must be in positions of influence in order
    for capitalism to arise, AT ALL.

    sam:
    Now from what you have said recently and in the further past, (and
    from Chomsky) I would guess that the political questions are foremost
    in your mind. In other words, if we allow the unrestricted freedom to
    trade etc, then we are fixing the division of property that exists at
    the present moment, and therefore entrenching an inequality that was
    built upon violence and exploitation in the more or less recent past.

    msh:
    Yes. Except that I believe that capitalism would not arise in a
    world of mostly FRH. So, IMO, the FRH would not be interested in
    fixing the current inequities, in order to turn capitalism loose,
    thinking that pure capitalism would then keep things on an even keel.
    An FRH understands that exploitation of inequality is built into the
    nature of capitalism and, therefore, that capitalism is hopeless as
    an FRH-sponsored form of socio-economic organization.

    sam:
    So where this second point brings us, I think, is to the view that
    the language of freedom is common to Chomsky and Rand, but that Rand
    would not necessarily wish to 'rectify the past', whereas Chomsky
    would say that freedom is meaningless without such rectification. Is
    that fair?

    msh:
    I'd say that Chomsky, being an FRH, would say that the first step
    toward freedom is rectification of past inequalities, yes. But he
    would not, and does not, think that capitalism, even if launched from
    a platform of perfect equality, will result in a desirable socio-
    economic outcome. His writings indicate that he would opt for a more
    broadly participatory form of economy, perhaps along the lines of
    Robin Hahnel's Participatory Economics, or ParEcon for short.

    sam:
    If so, I would develop the third and most interesting point, which
    relates to the vision of human nature. In the conception that you
    have outlined there seems to me to be a tremendous trust in innate
    human goodness; ie, a view that if all of the bad influences could be
    removed then the underlying disposition of human nature is a positive
    and good one. Thus, if only we can get the context right, that human
    goodness will be clearly displayed.

    msh says:
    Well, I have accumulated over time a number of experiences that lead
    me to this conclusion. And I think there is a lot of evidence that
    children who are "blessed" with family and friends who are supportive
    rather than competitive, who emphasize and cherish our common
    humanity rather than exploit our differences, have a far better
    chance of becoming FRH. That is, children who are heavily influenced
    by FRH, almost always become FRH themselves.

    But maybe that's a different thread.

    sam:
    This seems to me to be a highly political perspective.

    msh says:
    As above, it is empirically verifiable. Not political. But maybe
    another thread.

    sam:
    Thomas Sowell, a writer I've mentioned to you before, wrote a book
    called 'The vision of the anointed' looking in some detail at this
    conception, and contrasting it with what he called the 'tragic
    vision', which sees human nature as irretrievably compromised.

    msh says:
    You mean, as in the apple and the Garden of Eden, Padre? ;-)

    sam continues:
    So the political contest is between those who would change human
    institutions in order to remove barriers to human self-realisation
    and expression, and those who wish to preserve human institutions due
    to a desire to respect their hard-earned workability in the light of
    human experience.

    msh says:
    Oops... may be a bit of Freudian slip showing... Who's hard-earned
    workability is being questioned: the institutions, or the humans who
    favor them? The viability of most powerful institutions is highly
    questionable, except to the humans who benefit from them.

    sam:
    We could pursue this in some detail over time, but I'm
    not certain that we'll achieve much, for one very particular reason,
    and that is that in many ways the division which Sowell describes is
    a recapitulation in secular terms of the persistent clash in
    Christian theology between the Augustinian vision of Sin and the
    Pelagian vision of human choice.

    msh says:
    I've never read Sowell, other than the few words you pasted above.
    But from those few words I immediately detected a a tone that is not
    at all secular. See above, about apple and Eden.

    sam:
    I - as you might expect - tend to the tragic vision side of the
    equation, which is why I describe myself as 'basically conservative'.
    But it seems to me that we are here dealing in matters of faith.

    msh says:
    Yep.

    sam:
    That is, I see no way to distinguish (in terms of scientific or empirical
    validation) your statement that "a fully-realized, fully-informed,
    unrestricted human being will not only refuse to be exploited, but
    will CHOOSE not to exploit others" from, for example, my claim that
    "Jesus is the way, the truth and the life". And I think those
    statements probably serve a parallel function in our lives. Which, if
    I might be so bold, is the bit of this conversation that might prove
    _really_ interesting.

    msh says:
    I agree. We may find that we disagree only in the words we choose.
    You favor the less explicit poetic myth, which is often my artistic
    preference as well. In matters of philosophy, my analytic side gets
    the best of me and I tend to avoid metaphor whenever possible.

    Well, let's see where it goes.

    As always, Sam, it's a pleasure talking with you.

    Best,
    Mark Steven Heyman (msh)

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