[HN Gopher] The socialist calculation debate
       ___________________________________________________________________
        
       The socialist calculation debate
        
       Author : Amorymeltzer
       Score  : 44 points
       Date   : 2023-05-01 15:29 UTC (7 hours ago)
        
 (HTM) web link (www.laphamsquarterly.org)
 (TXT) w3m dump (www.laphamsquarterly.org)
        
       | staunton wrote:
       | It's obviously possible in theory to centrally plan an economy in
       | such a way that it's more efficient than a free market. In
       | practice this is extremely hard and in the few cases where it was
       | attempted it required a huge and extremely corrupt bureaucracy
       | that didn't work.
       | 
       | However, we should keep in mind that this was tried in an age
       | where that bureaucracy had to be operated using paper and
       | typewriters. Whether or not you like the idea of a planned
       | economy, you shouldn't ignore the possibility that it might
       | actually be able to sustain itself once, e.g., mass electronic
       | surveillance and AI enter the picture.
        
         | revelio wrote:
         | The problem with planned economies is not self-sustainability.
         | The USSR proved it could be done.
         | 
         | The problem is that they aren't competitive because their
         | planning process is too low bandwidth to incorporate change of
         | any kind. They're working blind and the only way to make the
         | thing work at all is to simply clone the non-planned economies
         | seen elsewhere, which means they always lag behind. Eventually
         | the citizens tire of their relative poverty even if it may have
         | improved a bit in absolute terms.
        
           | asdff wrote:
           | It just needs to be married with a research and development
           | program. Today in the U.S., most research is done with public
           | grant support. The government puts out a call for proposals
           | in a given area, researchers submit their ideas, their peers
           | evaluate them and decide which should get funding relative to
           | others, and private companies take advantage of these
           | findings with more translational work (or the researchers
           | themselves form a startup or license a patent). In a sense,
           | we have a "communist" system of allocating research money to
           | novel ideas already in the U.S., and it works so well that
           | other nations try and replicate the grant funding models of
           | our NIH, NSF, USDA, DOD, DOE, or other agencies. Of course,
           | these systems were very nascent compared to what they are
           | today back before the 1990s during the cold war, but today, I
           | would think the context today is different than a soviet
           | union facing global embargo half a century ago, especially
           | with all of this published information being available to
           | anyone with an internet connection and not those with
           | physical access to well funded university libraries.
        
         | wrycoder wrote:
         | And you can bet your bippy that AI planning will be tried. At
         | least twice. ("We weren't doing it right the first time.")
         | 
         | Central planning could work, if exact equality of outcome was
         | the target, the range of commodities produced was restricted,
         | and people were forbidden to trade goods amongst themselves
         | (and very strongly punished for doing so.)
         | 
         | But, who wants to live like that?
        
           | staunton wrote:
           | Who knows if people will get to try it twice. Such a thing
           | might take over the first time and be able to sustain its
           | power indefinitely (until human extinction).
           | 
           | I have a lot of hope though that it won't be tried. "It would
           | just fail" is a bad argument against trying it because it
           | sounds like you get another chance to do something else
           | after.
        
       | UncleSlacky wrote:
       | I was surprised to see no mention of Chile's Project Cybersyn:
       | 
       | https://en.wikipedia.org/wiki/Project_Cybersyn
       | 
       | There is an argument to be made (and indeed it seems it has
       | already, in this book :
       | https://en.wikipedia.org/wiki/Towards_a_New_Socialism ) that with
       | modern networking, data speeds and computing capacity, a
       | centrally-planned economy could work.
        
         | csdvrx wrote:
         | > There is an argument to be made (and indeed it seems it has
         | already, in this book :
         | https://en.wikipedia.org/wiki/Towards_a_New_Socialism ) that
         | with modern networking, data speeds and computing capacity, a
         | centrally-planned economy could work.
         | 
         | With the minor assumption that P=NP
        
         | WillPostForFood wrote:
         | "with modern networking, data speeds and computing capacity,"
         | 
         | Sounds like some 5G level hype right there.
        
       | than3 wrote:
       | It is rare that something like this gets written with actually
       | correct details, and refreshing when it actually lines up with
       | history correctly.
       | 
       | It would have been a near perfect piece covering these historic
       | issues, if only .... That last paragraph... If only they didn't
       | falsely asserts a broad generalization that is easily and
       | provably incorrect. Its mistaken in its naivete, and the provided
       | information doesn't support it.
       | 
       | Those of limited intelligence, when they can't win an argument on
       | rational grounds tend to fall back to malign influence and flawed
       | thinking and the conclusion is no different from a straw-man.
       | 
       | As a reader, do yourself a favor, and just skip that last
       | conclusion paragraph. Everything else looks mostly correct.
        
       | monero-xmr wrote:
       | The arguments for a centrally planned economy have been
       | empirically disproved numerous times as to make the debate moot.
       | But logically it is so clear:
       | 
       | It is impossible to assign value to something in any prescribed
       | way, as the value of anything is determined by me. This is why my
       | wedding ring has extremely high value to me, and I would need a
       | lot of money to part with it, well beyond its value as a
       | "generic" gold ring, which is more than its value in atomic gold.
       | You can further extend this to literally anything, but even to
       | commodities, which are theoretically the easiest to assign
       | "value" to as they are fungible.
       | 
       | It is a fool's errand to try and plan an economy, and those who
       | think they can, or believe they are currently doing so in any
       | meaningful way, are mistaken.
        
         | piloto_ciego wrote:
         | I mean, we have not tried it with modern computers... and he
         | Soviets never even got close as the technology to see literally
         | every non-black market transaction has only existed for a
         | decade or so. Not saying I want to live in 1980s style Soviet
         | bureaucracy (or weird modern Chinese mixed system) - but that
         | doesn't mean we can't do immeasurably better than those
         | systems.
         | 
         | I am not sure "8 billion Turing machines" is intrinsically more
         | efficient or accurate than "one really fast one."
         | 
         | Also, worth mentioning that you would sell your wedding ring in
         | a heartbeat if you needed to pay for food/healthcare/etc.
         | Sentimental value is important you're right, but in my
         | experience (maybe not yours which is fair) - when the chips are
         | down you do what you have to do to survive. The problem is, in
         | the current system we value human life less and than market
         | equilibrium, and that's silly. We could feed every starving
         | person on the planet... several times over... but we don't
         | because it's not profitable. That's objectively stupid.
        
           | godelski wrote:
           | > I mean, we have not tried it with modern computers
           | 
           | Sure, but considering all the information you'd need to
           | compute (I'd argue we're close but probably not there yet),
           | is this okay? Are there disadvantages to this data
           | collection? Do these downsides outweigh the upsides? I feel
           | like these conversations are so difficult because everyone
           | comes in with certain assumptions, assumes others have them
           | (even if explicitly stated otherwise), or are dismissive of
           | any other concerns. We need to be on the same page to have
           | real conversations.
        
         | harimau777 wrote:
         | I'm not a fan of forms of socialism revolving around centrally
         | planned economies; however, it seems to me that we also don't
         | have any reason to believe that a market economy can accurately
         | assign prices.
         | 
         | The free market argument that the value of something is equal
         | to it's price seems to me to be begging the question. It's
         | essentially saying "the an object's market price equals it's
         | value because I choose to say that an object's value is it's
         | market price."
        
           | marcosdumay wrote:
           | > a market economy can['t] accurately assign prices
           | 
           | Well, that is meaningless unless you define what "accurately"
           | means here. This word is carrying a huge amount of weight,
           | and isn't capable of that at all. (And when doing that, keep
           | in mind that "price" is not "value", and there is no reason
           | at all to equate those two.)
        
           | Nasrudith wrote:
           | The notion relies upon fundamentally faulty assumptions about
           | universal fixedness to pricing, namely that it exists at all.
           | It is frankly, insane to operate under it but because of
           | Marx's and his disciple's fixation upon labor as a basis of
           | economic value they stalwartly refuse to see what is right in
           | front of their face. Water by the river is far cheaper than
           | water in the Sahara. Hauling the water to the Sahara isn't
           | guaranteed profit however because of the lack of people in
           | the Sahara in the first place to serve the exchange, however.
        
             | harimau777 wrote:
             | I agree that things don't necessarily have fixed values.
             | However, that doesn't necessarily mean that price is an
             | accurate reflection of that value.
             | 
             | Food has more value to someone who is starving than to
             | someone who is well fed; even if the well fed person is
             | willing and able to pay more for it.
        
               | hgomersall wrote:
               | It's an interesting idea that perhaps peoples' financial
               | offers for goods and services should be normalised by
               | their financial wealth.
        
           | kneebonian wrote:
           | That's pretty much the only real value though is what someone
           | is willing to pay for it.
           | 
           | To quote the Prince of Egypt "A lake of gold in the desert
           | sand is less than a cool fresh spring, and to one lost sheep
           | a shepherd boy is greater than the richest king."
           | 
           | Ultimately the value of something is what someone is willing
           | to assign to it, nothing has inherent value as far as
           | humanity has been able to determine or agree on, so instead
           | the market allows everyone the freedom to value whatever they
           | would like at whatever they would like.
           | 
           | But if you have an alternative way of reconciling the water
           | diamond paradox I'd be interested in hearing it.
        
             | harimau777 wrote:
             | The problem is that the market doesn't actually give people
             | the freedom to price things in accordance with the value it
             | represents to them because people do not start out with
             | equal ability to pay. For example, a rich person may be
             | willing to pay a higher price for a second home even though
             | it is likely less valuable to them then it would be to
             | someone without a home.
        
               | int_19h wrote:
               | But that is caused by existing economic inequality, not
               | the free market itself. If the rest of your society is
               | organized in ways that e.g. prevent massive unlimited
               | accumulation of wealth, the disparity between what people
               | can afford is much smaller - and then the market can
               | easily be more optimal than any centralized scheme.
               | 
               | Indeed, one could argue that _capitalism_ (which
               | explicitly allows for unlimited accumulation of capital)
               | is detrimental to genuinely free markets for this exact
               | reason: https://en.wikipedia.org/wiki/Free-market%20anti-
               | capitalism
        
         | godelski wrote:
         | The article even starts with a bad premise, claiming we have a
         | laissez-faire system. Don't listen to people that binaryize
         | opposing viewpoints: all forms of capitalism are the same.
         | 
         | > arguments for a centrally planned economy
         | 
         | I actually think we're getting close to a point where a planned
         | economy could be feasible. The problem with planned economies
         | is that the economy is naturally chaotic (small perturbations
         | result in large changes in outcomes). So to do this you need a
         | pretty close eye and measurements of the economy. But looking
         | at this requirement, we have to ask what actually needs to be
         | given up. I'd argue that this is the reason that we should
         | never have a planned economy. The solution space is complex and
         | there are no globally optimal systems, so we need to pick what
         | we care about. If you are about reducing harm from potential
         | tyrants from abusing the population (or some subset) and/or
         | privacy and security from governments (not just your own) then
         | this is absolutely not a path we want to go down. Because high
         | levels of surveillance maximize tyrant's power and maximize
         | potential exploitation by adversarial governments.
         | 
         | And there lies the problem. Things that "look good on paper,
         | but don't work in practice" are just things where on paper we
         | haven't been nuanced. It is where on paper we've just had a
         | myopic viewpoint, steamrolling your opinion, not seeking
         | solutions. This is true outside economics and politics, but I
         | think since it is a field that everyone feels qualified
         | participate in and highly encourages blinders. We can't go
         | about solving complex problems this way. We can't solve complex
         | problems pretending all problems are easy and have precise
         | solutions. Life is messy, and so are solutions.
         | 
         | So let's talk about what we actually care about and what our
         | actual objectives are before we even attempt to start
         | optimizing. I rarely see any discussion of objectives. It is
         | fine to assume that people just want a strong economy and well
         | off people, but there are many other variables that we either
         | need to concern ourselves with or not, and we can't have these
         | conversations without establishing our premises. They aren't
         | obvious.
        
         | jk20 wrote:
         | [dead]
        
         | antisthenes wrote:
         | If you look closely, you'll see that at its core, this is just
         | another Luddite argument.
         | 
         | While it's true that a centrally planned economy may not
         | ultimately have the same variety of goods, it's important to
         | understand that a planned economy is not optimizing for that,
         | and that parts of a regular economy (especially parts
         | concerning national defense security and energy security) are
         | already very highly planned)
         | 
         | > It is a fool's errand to try and plan an economy, and those
         | who think they can, or believe they are currently doing so in
         | any meaningful way, are mistaken.
         | 
         | So were the people who thought cars couldn't be faster than
         | horses or that computers couldn't beat humans at chess or
         | generate deceptive but believable text output at a level of a
         | 10-year old.
        
         | frgtpsswrdlame wrote:
         | Have they been disproved empirically? I'm well aware of many
         | theoretical arguments against central planning but I'm not
         | aware of empirical work.
        
           | aww_dang wrote:
           | In the Mises canon, the possibility of effective central
           | planning is debunked from first principles. I wouldn't claim
           | that a triangle having three sides is theoretical or
           | empirical, but YMMV.
        
             | [deleted]
        
           | asplake wrote:
           | As long ago as the 70s and perhaps earlier, the cybernetics
           | community - people like Ashby, Conant, Beer - might have
           | argued its non-viability (I choose that word deliberately) on
           | information-theoretic grounds. The centre has neither the
           | communication bandwidth nor the predictive power to control
           | things for long.
        
             | mrkeen wrote:
             | "Google Finds: Centralized Control, Distributed Data
             | Architectures Work Better than Fully Decentralized
             | Architectures"
             | 
             | http://highscalability.com/blog/2014/4/7/google-finds-
             | centra...
        
               | asplake wrote:
               | ...in computer systems. And I wasn't arguing for full
               | decentralisation either
        
           | nyolfen wrote:
           | well, it was tried at scale one time, and the economy it
           | produced lasted several decades, but was sclerotic, dependent
           | on resources extracted by compulsion from its imperial
           | periphery, and ended up literally unable to feed itself
        
             | malermeister wrote:
             | The same could be said, word for word, for capitalism as
             | the United States are currently demonstrating.
        
               | PrimeMcFly wrote:
               | That would be wrong though. The capitalist economy in the
               | US has lasted literally centuries.
        
               | malermeister wrote:
               | Centuries are "several decades".
        
               | PrimeMcFly wrote:
               | Sure, but when people say decades they generally mean an
               | amount less than multiple centuries, or they would have
               | said centuries...
        
               | malermeister wrote:
               | True, but it's not _wrong_ as claimed above.
        
               | PrimeMcFly wrote:
               | It is if you consider the meaning that was being
               | communicated and not the technical dictionary definition
               | of words.
        
               | aww_dang wrote:
               | The US isn't laissez-faire. Most proponents of free-
               | markets would point to the current crises and relate them
               | to the central bankers. Interest rates have been
               | centrally planned rather than floating on the market.
               | Banking regulations drive banks to hold treasuries. When
               | new treasuries are issued at a higher rate of interest,
               | the rate of discount for lower (near zero interest)
               | t-bills increases, putting bank balance sheets out of
               | whack.
        
               | malermeister wrote:
               | This is literally what a socialist would say about the
               | Soviet Union. Not true socialism etc etc
        
               | godelski wrote:
               | Things aren't binary though. No one is saying the US
               | isn't "real capitalism", they are just specifying what
               | type of capitalism it is. But that's a very different
               | than saying there's no true Scotsman. There's a reason
               | one is a fallacy and the other isn't.
        
               | aww_dang wrote:
               | As flawed as the US economy is, at least there is still
               | something resembling a market price for basics like a
               | loaf of bread. Yes, you can claim that the USSR wasn't
               | the socialist ideal, however moving further from that
               | claimed ideal results in a more productive economy. To
               | the extent that the west is increasingly centrally
               | planned, it has become relatively less productive.
        
             | s3r3nity wrote:
             | > at scale one time
             | 
             | Bait? Bait.
        
             | [deleted]
        
         | striking wrote:
         | What about Walmart? Are corporations not their own little
         | centrally planned economies?
         | https://www.goodreads.com/book/show/38914131-the-people-s-re...
        
           | wrycoder wrote:
           | What about Sears? What about Polariod? Packard?
           | 
           | At the top of the growth sigmoid, corporations always make
           | the wrong planning choices, to avoid self-cannibalization of
           | existing products and to protect existing internal power
           | structures.
           | 
           | The same thing happens with centrally planned economies.
        
           | readthenotes1 wrote:
           | What about Kmart? Are corporations not their own little
           | centrally planned economies?
           | 
           | Or take the something like 90% of restaurants that fail
           | within the first year. Are they not..?
           | 
           | You got to talk about the bath water if you want to talk
           | about the baby
        
             | striking wrote:
             | Capitalist countries fail too. We just had a banking crisis
             | resolved by centralized action. I'm not sure what this
             | means aside from the fact that any poorly managed system
             | fails.
        
           | HDThoreaun wrote:
           | Walmart is literally a market. No one is forcing you to buy
           | things at walmart or work at walmart. No one is telling you
           | which goods you will get and in what quantity. Substituting
           | in the face of scarcity is encouraged on the micro scale. The
           | power of markets is allowing individual consumers to change
           | their consumption habits in the face of scarcity/abundance.
        
             | cced wrote:
             | Absolute rubbish take.
             | 
             | > No one is forcing you to buy things at Walmart
             | 
             | When Walmart comes into a small town and uses it's
             | economies of scale to force smaller stores to shut down
             | because they have the ability to operate at a loss, is this
             | choice?
             | 
             | Walmart has a board of executives that decide on the
             | direction of the company, it's a corporation the performs
             | central planning in order to maximize profits.
        
               | aww_dang wrote:
               | You are exactly right. They seek to maximize profits.
               | Profits can only exist within a coherent system of
               | prices.
               | 
               | How can a central planner effectively determine prices
               | across an entire economy? Price fixing has historically
               | been disastrous, from Diocletian to the USSR. This is
               | literally the definition of the calculation problem.
               | 
               | Contrast this to politicians and bureaucrats who may have
               | additional political incentives towards kickbacks,
               | corruption or other, non-market inefficient practices.
        
               | HDThoreaun wrote:
               | Yes, the townspeople are choosing to shop at the market
               | that has the best prices/best selection/whatever else
               | walmart has that makes it preferable to other stores.
               | Walmart's executives set their prices based on the cost
               | to get products. Prices constantly change in reaction to
               | supply and demand.
               | 
               | You seem to have figured out though that markets don't
               | work without competition. Luckily the grocery market, at
               | least in most places, is robustly competitive. And the
               | government should step in when that is not the case.
        
               | runarberg wrote:
               | Wallmart workers famously cannot even afford to pay
               | Wallmart prices for their foods. How are townspeople
               | (many of which are Wallmart workers) supposed to pay
               | higher prices for their food when they can't even afford
               | the lowest price?
        
               | HDThoreaun wrote:
               | It's a market. If you don't like your job look for a
               | better one. I mean I agree that our system isn't perfect,
               | or even that good, but no system is. Planned economies
               | consistently lead to famine and tens of millions of
               | people starving to death.
               | 
               | If the labor market is a monopsony, as it commonly is in
               | small towns, the government should step in.
        
               | runarberg wrote:
               | > Planned economies consistently lead to famine and tens
               | of millions of people starving to death.
               | 
               | They do not. Cuba has yet to experience a famine despite
               | being under a severe embargo for several decades.
               | 
               | Famines also happen under capitalism. There are multitude
               | of famines in east Africa to choose from, death count is
               | well over tens of millions. Outside of Africa, the Bengal
               | famine happened under British rule, death count 1-4
               | million people. While socialism was gaining traction
               | inside British isles at the time, their colonies kept
               | being ruled by harsh free market advocates.
               | 
               | However blaming capitalism for the Bengal famine is
               | unfair, where imperialism, colonialism, and racism is a
               | much better explanation, similarly, blaming communism for
               | the Great Chinese Famine in Mao's China is unfair, when
               | fascism is a much better explanation.
               | 
               | Famines aren't the only man-made disaster out there. It
               | is hard to blame anything but global capitalism for
               | disaster such as the Bhopal disaster, where one of the
               | largest cities in India was poisoned in a effort to
               | maximize profits for shareholders. Thousands died.
               | 
               | Together the disaster of capitalism cause several orders
               | more deadly than the disaster commonly attributed to
               | communism.
        
               | HDThoreaun wrote:
               | Cuba is facing a famine right now. Communism was the
               | cause of authoritarianism in china and the ussr. It's not
               | possible to have a command economy run by humans without
               | eventually having the leader be an authoritarian.
               | 
               | Capitalism did not cause people to be greedy, they were
               | already greedy. Capitalism just embraces our nature and
               | aligns incentives while communism pretends people can be
               | changed to not follow incentives.
        
               | positron6000 wrote:
               | > Cuba is facing a famine right now
               | 
               | Because the US has embargoed Cuba for decades to cause
               | hunger and desperation:
               | 
               | > If such a policy is adopted, it should be the result of
               | a positive decision which would call forth a line of
               | action which, while as adroit and inconspicuous as
               | possible, makes the greatest inroads in denying money and
               | supplies to Cuba, to decrease monetary and real wages, to
               | bring about hunger, desperation and overthrow of
               | government. - https://history.state.gov/historicaldocumen
               | ts/frus1958-60v06...
               | 
               | Citation needed on all your other claims.
        
               | zdragnar wrote:
               | The parent to the post you responded to literally said
               | 
               | > Cuba has yet to experience a famine despite being under
               | a severe embargo for several decades.
        
               | monero-xmr wrote:
               | Cuba is not embargoed by Canada, the EU, and so on, so
               | the USA not providing food is certainly not a valid
               | argument.
               | 
               | https://www.eeas.europa.eu/cuba/european-union-and-
               | cuba_en?s....
        
               | runarberg wrote:
               | The USA embargo in Cuba is not causing a famine because
               | there is no famine. So you're vitamin A deficiency did
               | not cause your black eye, because you have enough vitamin
               | B and C, and also you don't have a black eye.
               | 
               | Also the embargo de jure excludes food and medicine
               | (although de facto it is hard to export those to Cuba),
               | but also subsidiaries of USA companies are also not
               | allowed to trade with Cuba, so Canadian and EU companies
               | which do business in the USA (which is almost everybody)
               | are risking a lot by trading with Cuba, so in effect the
               | embargo is somewhat extended by large parts of EU and
               | Canada.
        
               | runarberg wrote:
               | I don't know where you get your news from, but no. There
               | is currently no famine happening in Cuba. There is a fuel
               | shortage (like there is in many other countries). But
               | there is still enough food for everybody, and (unlike in
               | many other neighboring countries) the food is distributed
               | such that hunger is relatively rare, and mass hunger--let
               | alone a famine--is unheard of. The cost of living is
               | still significantly lower than the median income, despite
               | the energy crisis and despite the embargo.
               | 
               | I honestly don't know where you've heard this. I searched
               | the news for a famine in Cuba, and nothing came up, not
               | even unreliable sources. Where did you hear this?
        
               | petsfed wrote:
               | > blaming communism for the Great Chinese Famine in Mao's
               | China is unfair, when fascism is a much better
               | explanation
               | 
               | Not to nitpick, but was Mao's China _fascist_ , strictly
               | speaking? I ask because the big 3 fascist regimes of the
               | 20th century (Hitler's Germany, Mussolini's Italy, and
               | Franco's Spain) were all stridently anti-communist, anti-
               | collectivist, and anti-Marxist. You can see a lot of the
               | other elements of many definitions of fascism in Mao's
               | regime, but that anti-communist part is really hard to
               | square. One definition I appreciated is that fascism is
               | vocally and stridently anti-equality, and by that
               | standard, Mao's regime is clearly not a fascist one, even
               | as it just as strongly authoritarian as any self-
               | described fascist regime.
               | 
               | I'm actually not prepared to say that communism or
               | capitalism is more deadly, because I think the reality is
               | that the people making decisions got to that place
               | because of skill in political infighting, not superior
               | judgement on the topic at hand.
               | 
               | That is, the reason planned economies do fail is not
               | because planned economies _must_ fail, per se. Rather
               | economies are, of necessity, massively complicated things
               | and its very difficult to account for every variable
               | adequately whilst planning, to say nothing of the
               | difficulty of conniving the appropriate carrots and
               | sticks for every participant at every level, to convince
               | all participants to follow the plan.
        
               | danaris wrote:
               | What fascism and most countries that have called
               | themselves "communist" have in common is
               | _authoritarianism_.
               | 
               | 95% of what most Americans criticize as "the evils of
               | communism" are, in fact, the evils of authoritarian
               | systems; it just happens that the big authoritarian
               | system that was in opposition to America for decades
               | _called_ itself communist. Much like North Korea calls
               | itself  "democratic".
               | 
               | And while fascism is, indeed, anti-equality, the
               | inequality it seeks to foster is almost always between a
               | cultural in-group and Everyone Else. Furthermore, fascism
               | does not always seek to _murder_ the Other; it also seeks
               | to forcibly assimilate them.
               | 
               | Guess what Mao did in China: systematically eradicated
               | massive swathes of Chinese culture--or rather, _cultures_
               | , because there were many differences between what it
               | meant to be, say, Han Chinese vs Mongolian or Tibetan.
               | The Uyghur genocide that is ongoing today is just an
               | extension of that--and yes, it fits quite well with
               | fascist ideals.
        
               | positron6000 wrote:
               | > It's a market. If you don't like your job look for a
               | better one.
               | 
               | Sure! I live in a small rural town with a poor public
               | education system and no professional opportunities
               | outside of manual labor. I had to leave high school to
               | work to support my family. The most I can make is minimum
               | wage, which means that I cannot afford basic necessities.
               | What "better" jobs am I able to choose from? Or do I have
               | to wait for "the government" to step in so my family
               | doesn't starve?
        
               | stale2002 wrote:
               | > What "better" jobs am I able to choose from?
               | 
               | Ones that are in a different city, of course.
        
               | positron6000 wrote:
               | Great! Where am I going to get money to move from a small
               | town to a city with a higher cost of living, and how will
               | I - a high-school dropout - acquire the skills necessary
               | to get one of these better jobs? How long will it take?
               | Where will I live? How will my family survive without my
               | income?
        
               | HDThoreaun wrote:
               | You know the vast majority of history is nothing but
               | death and despair right? You can't expect other people to
               | solve your problems for you. At some point you have to
               | accept that waiting for life to come to you will result
               | in poverty, that is true of the 99.99999999% of people in
               | every society ever. I get that it's not fun to confront
               | the harshness of reality, but your comments really do
               | make it seem like you're expecting people who don't take
               | initiative to just have things handed to them(to be clear
               | I have no problem just handing people basic necessities
               | such as food and healthcare, but good jobs are a
               | privilege, not a right).
               | 
               | Acting like being in small town America is an economic
               | tragedy is a gigantic insult to the millions of people
               | who sacrificed everything to migrate to the developed
               | world, and those people are largely extremely good at
               | lifting themselves out of poverty when they arrive. Why
               | are locals less economically mobile?
               | 
               | There has never been a more prosperous time to be alive
               | than right now in western countries, we need to continue
               | to work to make life better for everyone society, but
               | there is no magic solution other than hard work.
        
               | runarberg wrote:
               | This is a bit rude don't you think?
               | 
               | There are many tings in here that should be addressed,
               | including simple respect for other people, and
               | recognition of varying economic status, and the reality
               | of impoverishment.
               | 
               | However I want to address the migration question. As an
               | immigrant my self I take offense that you suggest that
               | people migrate to "the developed world" (ugh!) in search
               | of prosperity. This is a great simplification, and kind
               | of a regurgitation of a popular belief which isn't true.
               | Most people--including my self--migrate because of
               | family, second is jobs and education, these are people
               | that already have a job or have been admitted to school
               | and come on a special worker or school visas. Majority of
               | immigrants don't sacrifice everything, just proximity to
               | family and friends, and most use their existing wealth to
               | make the migration as easy as possible. In fact
               | demonstrating financial viability is a precondition for
               | permanent residency, meaning by far majority immigrants
               | who can't afford to migrate, or don't have a job or a
               | scholarship awaiting them, are forbidden by law from
               | staying.
               | 
               | Immigrants who sacrifice everything off course exists,
               | and refugees in particular take great risks while
               | migrating, but they are a minority, and there is not
               | exactly prosperity awaiting them, rather, a hope for a
               | safer place to live. Many refugees have decades of
               | poverty awaiting them in their host country, the more
               | social services they get, the easier it is for them to
               | actually escape poverty.
        
               | HDThoreaun wrote:
               | Rural economies being fucked isn't capitalism's fault. If
               | you don't create valuable things you won't get valuable
               | things, that's true in all economic systems. If you want
               | valuable things you should probably move somewhere where
               | they are being created and get a job there. Forcing rural
               | people to move to urban areas and work in factories is a
               | classic communism move because it turns out people are
               | more productive when near each other. Capitalism just
               | gives people the choice of doing that or staying where
               | they are and being poorer.
               | 
               | Allowing poverty to exist really has nothing to do with
               | capitalism the economic system and everything to do with
               | the political climate in society. Capitalism is just free
               | markets and property rights, it doesn't say anything
               | about government redistribution. Getting rid of markets
               | would not help poor people at all.
        
               | PaulDavisThe1st wrote:
               | You seem to conveniently ignore the externalities that
               | most people who have investigated them agree are a major
               | component in a corporation like Walmart existing at all.
               | 
               | I would agree with most of what you've written _if_ the
               | price of goods at Walmart actually represented their true
               | cost. But instead, Walmart relies on externalities (the
               | most obvious one is their reliance on their staff being
               | able to collect various forms of public assistance, but
               | there are plenty more) in order to maintain their prices.
        
               | runarberg wrote:
               | Just for the record, the article in which thread spun
               | from is about the socialist question. It is asking
               | whether there is a reason to your mentality. That is, is
               | it worth it to regulate economies and set up social
               | services such that people don't _have to_ live at the
               | whims of free market capitalism.
               | 
               | Unsurprisingly for an alumni of the Chicago school the
               | author believes this is still an open question, however
               | this article is kind of well written and everything up to
               | the conclusion--that is the historical breakdown of this
               | question--seems to indicate that socialism is good
               | actually, and Laissez-faire capitalism is bad.
        
               | WillPostForFood wrote:
               | This data is somewhat misrepresented. To be eligible for
               | SNAP benefits, you have to also work (unless you get an
               | exemption, like for caretaking). So the government is
               | trying to get people off SNAP for pushing them to work,
               | then shaming the employer for hiring people on SNAP.
               | Walmart is a common low skill entry level job, so not a
               | surprise that a lot of SNAP beneficiaries end up there.
               | 
               | The top employers that have SNAP beneficiaries also
               | include the USPS, Amazon, Home Depot, Publix, Uber,
               | McDonalds, Krogers...
        
           | Philorandroid wrote:
           | It might be "centrally planned" in the most technical sense,
           | but it's a bit of a stretch to compare a government's
           | leverage over a market by threat of force to a private entity
           | planning what to do with the property it owns. How is it
           | meaningfully distinct from an individual (or a family) doing
           | financial planning around their assets?
        
           | jl6 wrote:
           | A tempting analogy, but I think there are too many crucial
           | differences to put corporations forward as a model for
           | central planning.
           | 
           | For a start, corporations are very small compared to states.
           | Even Walmart, the world's biggest employer, is less than 1%
           | the size of the US by headcount.
           | 
           | More problematic is that corporations plan to maximize
           | profit. That's it. It's a comparatively trivial optimization
           | goal compared to the multitude of ways of valuing things that
           | exist in wider society - and yet, corporations still
           | frequently fail to be profitable. OP's example about the
           | wedding ring is a case in point. Walmart's Finance department
           | would value that for its raw weight in gold only.
           | 
           | But even more worrying, corporations have a magic tool for
           | maintaining order and efficiency: firing people. States can't
           | do that, or at least, not states that you'd want to live in.
           | Corporations are rigidly hierarchical. Corporations are not
           | democracies. Imagine human rights as implemented by the HR
           | department. Scaling up corporate processes to manage a whole
           | country would result in a terrifying dystopia.
        
             | kneebonian wrote:
             | > firing people. States can't do that,
             | 
             | The Gulags: Let me introduce myself.
        
               | [deleted]
        
             | dragonwriter wrote:
             | > But even more worrying, corporations have a magic tool
             | for maintaining order and efficiency: firing people. States
             | can't do that,
             | 
             | Deportation and capital punishment are real things, so I
             | think your wrong.
        
               | hgomersall wrote:
               | They're not real things in a civilised society.
        
             | photochemsyn wrote:
             | I think you just need to go up the corporate-financial
             | ladder a step. Clearly the major shareholder conglomerates
             | - Vanguard, Fidelity, State Street, Vanguard etc. can act
             | in a manner very similar to a Soviet Central Committee to
             | direct resources in a centrally planned manner. The current
             | consolidation of banking into a small group of large
             | corporate institutions (JPMorganChase, BankAmerica,
             | Citgroup, WellsFargo) with direct ties to the Federal
             | Reserve is another obvious example of how the US economy is
             | more of a centrally planned model than not, and of course,
             | the military-industrial corporate system, where the
             | government is basically the sole buyer and distributor of
             | contracts, is another one.
        
               | AnimalMuppet wrote:
               | Maybe they could. _But they don 't_. They invest in
               | companies, but they don't tell the companies how to run
               | themselves.
        
             | cced wrote:
             | OP's example of his wedding ring is absolutely not case in
             | point; the value of his ring is it's weight in gold.
             | 
             | Whatever _sentimental value_ he may hold for his ring has
             | no bearing on any rational actors choice to buy the ring.
             | 
             | Apple, Microsoft, Walmart and, gee, I don't know, any of
             | the other F500 corporations don't make it there because
             | "they fail to value their products and services".
             | 
             | They pay real people, real wages, to produce real things,
             | that are sold further down the supply chain. These aren't
             | imaginary objects and figures.
        
         | cced wrote:
         | If anyone is interested in learning more about how Walmart uses
         | central planning today, here's a Youtube video [1] of it (30
         | mins)
         | 
         | I would love for OP to explain why central planning seems to
         | work so well for private businesses but has no such hopes of
         | achieving any success for the public.
         | 
         | [1]: https://youtu.be/xuBrGaVhjcI
        
           | aww_dang wrote:
           | https://mises.org/library/planned-economy-and-economic-
           | plann...
        
         | zzbzq wrote:
         | Only by straw-manning the idea. What you've written there
         | doesn't disprove anything. We've seen in real life that a large
         | corporation can plan a proportion of an economy. What you have
         | to prove, in order to repudiate central planning, is prove that
         | there exists some maximum proportion of an economy that can be
         | planned. And even then, a simple workaround would be to
         | artificially recreate such maximums within the central
         | structure. I think you're just not very imaginative.
        
           | bretticus wrote:
           | > We've seen in real life that a large corporation can plan a
           | proportion of an economy.
           | 
           | No we haven't. Look at the list of Fortune 500 companies
           | today vs 50 years ago. The landscape is completely different.
           | IBM was the most innovative company in America and now it's
           | seen as a dinosaur. Corporations die each year. It's
           | cutthroat; your business is more likely to fail than succeed.
           | The idea that Nancy Pelosi and Mitch McConnell could do a
           | better job planning the economy is laughable
        
           | RandomLensman wrote:
           | Corporations fail a lot in their plans. On top, not certain
           | that the planning aspect is what gives rise to corporations
           | in the first place (vs., e.g, transaction costs between
           | independent actors if there where no corporation).
        
           | karaterobot wrote:
           | > We've seen in real life that a large corporation can plan a
           | proportion of an economy. What you have to prove, in order to
           | repudiate central planning, is prove that there exists some
           | maximum proportion of an economy that can be planned.
           | 
           | If the examples of large corporations planning a proportion
           | of an economy count as an argument for why central planning
           | could work, then _surely_ the examples of actual, centrally-
           | planned economies failing should count as arguments for why
           | they don 't. I mean, don't toss out the actual examples for
           | the metaphorical ones.
        
             | stelonix wrote:
             | You mean examples why they _didn 't_. Just because Starship
             | exploded at launch it does not prove all Starships are
             | going to explode. Likewise, if you have a handful of trials
             | of planned economy it does not imply the whole concept is
             | infeasible. Stating otherwise is fallacious.
        
               | etrautmann wrote:
               | Ah yes, on the 205th try we'll finally nail this
               | impossibly complex and moving target.
        
             | assbuttbuttass wrote:
             | The problem with that argument is you have to argue that
             | the USSR failed because of central planning, when the
             | reality is their centrally planned economy succeeded in
             | industrializing a majority-peasant agricultural country,
             | defeating the nazis in world war 2, and launching a man
             | into space.
             | 
             | I'm not blind to the many flaws of the soviet union, but
             | it's a bit absurd to point to it as a failure of central
             | planning.
        
           | foobiekr wrote:
           | The difference is that the corporation can die. Not so
           | government programs.
        
             | pc86 wrote:
             | Government programs are cancelled all the time.
        
           | monero-xmr wrote:
           | A corporation can execute the creation of consumer or
           | producer goods for sale to the market, earning a profit
           | greater than the sum of the inputs. Corporations execute on
           | that specific mission with a goal of maximizing profit. A
           | side-effect of this (in a truly free market) is to ensure the
           | customer, who should be able to freely to purchase from any
           | producer, is maximally satisfied. It also follows that a
           | corporation will try and reduce their costs on all possible
           | axes - from inputs, to labor, to production time, to tax
           | mitigation, etc.
           | 
           | If you try to extend "producing goods" to "every good
           | possible for all people", it cannot possibly work, because a
           | corporation cannot even satisfy the needs of consumers within
           | their narrow band of production (or else competitors wouldn't
           | exist, and further enhancements of products would be
           | unnecessary).
        
             | mxkopy wrote:
             | I don't understand how these things are connected. The
             | market being free doesn't have anything to do with whether
             | or not the customer is satisfied - take telecom in the U.S.
             | for example. Competition is sparse _and_ nobody is
             | satisfied.
             | 
             | What you're describing is a buyer's market, which is only
             | one case out of many.
        
             | PaulDavisThe1st wrote:
             | 1. we do not charter corporations so that they may chase
             | profits, we charter them because we believe that without
             | limited liability, certain things that we as a society (or
             | as a monarch) want done will not happen. If that was not
             | the case, we would not have corporations at all, simply
             | partnerships between various sized groups of individuals
             | who decided to risk their personal fortune (in all senses)
             | on some venture that could not be accomplished alone.
             | 
             | 2. in situations of monopoly or close to it, corporations
             | do in fact indulge in central planning for an entire
             | economy. You may choose to put your faith in the idea that
             | their chasing profits mean that their decisions will be the
             | ones we would make as a society, but there's no inherent
             | reason for this to be true. There are often multiple
             | pathways to the same profit, with different side effects
             | and different levels of organizational commitment; as a
             | society we might prefer a corporation to pick one route,
             | but it picks the other.
        
             | cced wrote:
             | > greater than the sum of the inputs
             | 
             | Oh please, they get to rob workers of necessities of life
             | and capitalize on their pity wages. Take a look at Walmart
             | employees on food stamps and talk about producing value
             | equal to more than the sum of the parts; the government is
             | subsidizing their food.
        
               | monero-xmr wrote:
               | That is a _political decision_ that the USA made, and one
               | could that also be changed through the _political
               | process_ - by subsidizing all manner of social benefits
               | (healthcare, housing, food, and so on) the US government
               | enables private businesses to hire employees at a lower
               | wage without social upheaval. I would argue this is
               | inferior to providing _no social benefits whatsoever_ in
               | order that corporations would have to bear more of the
               | cost, rather than indirectly through taxes.
        
           | olalonde wrote:
           | That's redefining what "centrally planned" means.
           | Corporations are subject to competitive pressures: they
           | rapidly lose their ability to "plan" when they stop
           | "planning" well. There's no comparable mechanism when it
           | comes to top-down government planning.
        
         | mrkeen wrote:
         | > It is impossible to assign value to something in any
         | prescribed way, as the value of anything is determined by me.
         | 
         | It's like Insulin. It may only be worth $5/vial to drug
         | companies, but it's worth $100/vial to consumers who don't want
         | to die.
        
           | kelseyfrog wrote:
           | That's a really good point in the argument that markets for
           | demand-inelastic goods are amoral at best and unethical at
           | worst. We have choices to make when it comes to which
           | economic systems best solve certain problems.
           | 
           | Organ donation is a good example we're we've said, "we cannot
           | let a market solve this problem." Are there issues, with it?
           | Sure, but only the extreme among us argue that organ markets
           | would be an improvement. Every market is open to this
           | critique to various degrees.
        
       | assbuttbuttass wrote:
       | I can highly recommend "Towards a new Socialism" by Cockshott on
       | this topic. It gets into the details of economic planning from a
       | practical side, and even discusses the computational complexity
       | of different algorithms
        
       | lamontcg wrote:
       | I call myself a socialist but I wasn't born 100 years ago so I've
       | accepted that absolute centrally planned economies are poor and
       | money and markets will never be abolished.
       | 
       | But what I want is more democratically forms of corporations,
       | government policies that produce less income inequality and
       | regulations over business which prevents monopolies and market
       | distortions, along with much stronger unions (ideally a situation
       | where we keep the government, corporations and unions all more or
       | less at odds with each other in order to maximize actual
       | individual liberty--defined to exclude the current contradictory
       | definition of liberty as "wielding as much capital power as you
       | possibly can over other people").
       | 
       | What we have right now is a situation where corporations run the
       | government and are in the process of consolidating every more
       | tightly into monopolistic cabals. That is also the end goal of
       | unregulated free market capitalism, it isn't the optimum
       | allocation of capital, it is the optimum exploitation of labor
       | for profits.
       | 
       | Yeah, the magic wand solution of government-run economies and
       | doing away with money and markets doesn't work. Outside of some
       | sophomorically edgy and loud tankies on twitter and reddit nobody
       | really wants to do that, and it wouldn't get anywhere if they
       | tried.
        
         | pcthrowaway wrote:
         | I feel pretty much the same way; is there a better name for
         | this besides democratic socialism?
         | 
         | > Yeah, the magic wand solution of government-run economies and
         | doing away with money and markets doesn't work. Outside of some
         | sophomorically edgy and loud tankies on twitter and reddit
         | nobody really wants to do that, and it wouldn't get anywhere if
         | they tried.
         | 
         | While I agree the "socialists" who want full-blown (central,
         | government run with no free market elements and no money)
         | socialism are the minority, it's frustrating that good
         | conversation around socialism is hard to find because
         | detractors specifically attack this extreme side of the
         | dichotomy.
        
           | hospitalJail wrote:
           | I'm a moderate/independent and probably a capitalist due to
           | the pragmatism. However, I tell people that I would be a
           | radical socialist if it worked.
           | 
           | I might be okay with inefficiencies if we really could get
           | rid of class, or that we could keep our excess value of
           | labor. That puts me on the extreme side.
           | 
           | The less extreme side just seems inefficient and creates a
           | class of government workers/politicians who control resources
           | are the new upper class.
           | 
           | It really sounds like you want capitalism with some sort of
           | redistribution or better taxation. I most recently found
           | Green Capitalism as a word I could likely get behind, but it
           | still suffers from the issue of resources going through
           | government workers/politicians.
        
           | lamontcg wrote:
           | https://en.wikipedia.org/wiki/Market_socialism might work.
        
           | [deleted]
        
         | int_19h wrote:
         | https://en.wikipedia.org/wiki/Market_socialism
        
         | RC_ITR wrote:
         | The big propaganda win has always been "it's either no holds
         | barred free market capitalism or its central planning."
         | 
         | Of those two, free markets lead to _better_ outcomes, but
         | rarely _optimal_ outcomes. There are middle grounds.
         | 
         | What's worse is that America's markets are _already_ extremely
         | skewed (tax deductible mortgage interest for example), but free
         | market proponents ignore that, since it's the baseline.
        
           | dingusdew wrote:
           | [dead]
        
           | GauntletWizard wrote:
           | Tax deductible mortgage interest is a favorite whipping boy,
           | but consider the alternative - It would be more effective for
           | corporations to buy properties and rent them out, because
           | corporations could still charge the mortgage payments as
           | operating loss. I would gladly incorporate a C-Corp and rent
           | my house at market rate to myself.
        
             | RC_ITR wrote:
             | I would prefer that too.
             | 
             | The more people are exposed to the true cost of housing,
             | the more likely they are to care about it.
             | 
             | I also don't think it's an intrinsic good that people own
             | their homes. Looks what it has done in places like CA where
             | nothing gets built anymore.
        
           | fallingknife wrote:
           | Interest expenses are deductible from all businesses taxes.
           | (Wouldn't make sense if they weren't, as a money losing
           | company could still be forced to pay income tax.) So If I
           | build an apartment building and rent out the units, my
           | interest expenses are deducted, and nobody is arguing with
           | that. So if I buy a house and live in it, why shouldn't I be
           | able to deduct the same?
        
             | RC_ITR wrote:
             | Ok, and credit card interest?
        
           | seiferteric wrote:
           | Exactly, I find it funny that people will call themselves
           | socialist, capitalist, communist... these are 19th century
           | ideas or earlier. The reality is none of these ideologies are
           | complete solutions, they are simply tools that can be used in
           | certain cases. Yes it seems that capitalism/free markets
           | works best most of the time (even China knows this) but there
           | are many cases where it does not and something else has to
           | happen (healthcare, housing etc.)
        
             | lamontcg wrote:
             | Well give me a term that other people understand that I can
             | use instead of socialist.
             | 
             | I do tend to agree with most socialist diagnosis of the
             | problems of capitalism, I just don't tend to agree on the
             | cure for the disease (or if there even is a cure, and not
             | just limiting the damage).
             | 
             | The fact that the terms don't really exist are a good
             | indication of how well the propaganda is working I guess.
             | 
             | > Yes it seems that capitalism/free markets works best most
             | of the time (even China knows this) but there are many
             | cases where it does not and something else has to happen
             | (healthcare, housing etc.)
             | 
             | And I don't necessarily agree with this. I think
             | money+markets will need to exist. I don't agree that the
             | current top-down hierarchical nature of corporations is the
             | best. CEOs are all tinpot dictators and we've universally
             | decided that this is just okay and commands flow down from
             | the top and people don't question that. I've found that to
             | be a pretty shitty model, just on the basis of not having
             | enough feedback loops from the bottom to the top which
             | leads to badly performing economic machines. And as
             | corporations consolidate and grow to become the size of
             | governments the CEOs are becoming real political dictators
             | and a ruling class.
        
               | seiferteric wrote:
               | I don't know about new terms, but I prefer pragmatism
               | over the other 'isms out there, as long as they respect
               | individuals rights and dignity. A far as CEO's as
               | dictators, I don't think we see eye to eye, because this
               | can be a GOOD thing in a lot of cases. Rule by committee
               | instead of a single minded focus of someone with a vision
               | is a recipe for mediocrity... up until a certain scale
               | anyway. This is where I think things tend to break down.
               | It's like Newton's laws, they work fine up until things
               | get too big, or fast, then you have to correct for them
               | with something else. As long as companies aren't so big
               | and powerful as to disrupt the function of government, or
               | negatively affect the populous without recourse, then I
               | think it is fine, but after that ya, you need regulation
               | at least.
        
             | umrcumrcu wrote:
             | Explain to me exactly how socialist healthcare and housing
             | would work better than capitalist alternatives.
        
               | seiferteric wrote:
               | You have misread what I said, it is not either capitalist
               | or socialist. Policies can incorporate both, using
               | subsidies, tax policies, law/regulations etc to
               | incentivize desired outcomes
        
               | halostatue wrote:
               | I can't speak toward the latter, but the existence of
               | high quality healthcare in pretty much every single
               | western country that has better _average_ outcomes than
               | the US indicates that capitalist healthcare is an utter
               | failure.
               | 
               | Yes, the US is great if you have that _one-in-a-million
               | weird disease_ and /or sizeable funds to call upon in
               | some way, but for the average Jane, there's nothing that
               | recommends the US healthcare system as better than, say,
               | Sierra Leone's. As far as I can tell, most of the world
               | does better.
        
               | NoMoreNicksLeft wrote:
               | It might be true that they have better "average"
               | outcomes. Were I some sort of mathematical abstract that
               | existed only in the imaginations of statisticians this
               | might actually be a winning argument.
               | 
               | If the average can be improved simply by giving slightly
               | more to the 20% who are chronically unhealthy, while
               | letting things get worse for the 80% (I assume I'm in
               | this bucket), then you're asking for me to be worse off
               | so that a smaller number of people who are half-dead
               | anyway can have a few more weeks of slightly less misery.
        
               | seiferteric wrote:
               | Good thing there's nothing stopping you from paying more
               | money to get better healthcare. That doesn't eliminate
               | the good done from having some baseline healthcare
               | provided to everyone.
        
               | [deleted]
        
         | nivenkos wrote:
         | Income inequality is good, and fighting markets is like trying
         | to stop the tide.
         | 
         | It's accumulated wealth that is the problem (and leads to the
         | corruption of free markets and democracy).
         | 
         | Policies should be focused on that - taxing wealth rather than
         | work, and encouraging profitable investments rather than
         | sitting on assets.
         | 
         | Whereas now the so-called "left-wing" policies are awful - rent
         | control is popular in Europe despite being an unfair disaster
         | in Sweden. There are high taxes on income and high VAT, whilst
         | inheritance, land and wealth taxes have been abolished, greatly
         | hurting social mobility while benefiting established, inherited
         | wealth.
         | 
         | Same with a lot of focus on patching up symptoms - like not
         | prosecuting low-value shoplifting, allowing squatting on
         | "empty" properties, etc. rather than trying to improve market
         | conditions, education and training and the housing market, etc.
         | to ensure that everyone could get a much better salary to begin
         | with.
        
           | prottog wrote:
           | > encouraging profitable investments rather than sitting on
           | assets
           | 
           | A difficult distinction to make, since profitable investments
           | are also assets that one would presumably like to sit on for
           | a while.
        
             | klabb3 wrote:
             | The majority of "investments", as in loans granted by
             | banks, are people with fixed assets buying more fixed
             | assets, such as real estate. The innovators, mom & pops,
             | farmers etc who take a loan for a venture are the minority.
             | Makes sense for the capital holder. Why take risks when
             | cornering markets is much safer?
        
           | lamontcg wrote:
           | > Income inequality is good,
           | 
           | Yeah I don't agree with that.
           | 
           | > It's accumulated wealth that is the problem
           | 
           | I do agree that wealth inequality is the bigger problem, and
           | I should have used that term instead.
        
           | r00fus wrote:
           | > Income inequality is good
           | 
           | I agreed with the rest of your comment but this is...
           | strange. You might agree if it's rephrased as "extreme income
           | inequality" is bad?
           | 
           | "Harrison Bergeron" was a straw man argument posing as a
           | short story - don't let the similar strawman of "no income
           | inequality" overshadow the more present and real threat to
           | society of growing extreme income inequality. Some twitter
           | posts accurately phrase this as the "too expensive to live"
           | problem for some.
        
           | danaris wrote:
           | > Income inequality is good
           | 
           | [Citation needed]
           | 
           | To be clear, I'm not implying that it would be good to have
           | absolutely everyone make exactly the same amount. I'm saying
           | that income inequality at high levels is bad, demonstrably
           | so, and inevitably _leads to_ concentrations of wealth.
           | 
           | I'm also not sure why you think that high VAT and lack of
           | inheritance and wealth taxes are "left-wing" policies. Those
           | are all regressive, and exactly the kinds of things that the
           | right wing is pushing for here in the US. At most, I would
           | think that such policies would be compromises between a left
           | wing that wants progressive income taxes alongside
           | inheritance and wealth taxes, and a right wing that wants VAT
           | and basically nothing else.
        
             | [deleted]
        
           | PrimeMcFly wrote:
           | We need wealth limits for companies (which should be more
           | like co-ops), proportional to the size of the company, with
           | everything pasta threshold going back into UBI or something.
           | Same for individual wealth accumulation.
           | 
           | People could do more projects/start more companies to earn
           | more, but no one should be accumulating millions by doing
           | almost nothing as is the case now.
        
             | umrcumrcu wrote:
             | What wealth limit are you proposing and why wouldn't
             | companies leave for another country?
        
               | mxkopy wrote:
               | > why wouldn't companies leave for another country
               | 
               | Haven't they already?
               | 
               | Besides, that might be a good thing, if corporate
               | overreach continues to grow unchecked.
        
               | PrimeMcFly wrote:
               | > why wouldn't companies leave for another country?
               | 
               | Solved by limiting the profit that can be transferred out
               | to foreign companies/parent companies.
               | 
               | If a market is too big, as long as money can still be
               | made even with a cap, a company won't leave - or if they
               | do a competitor will spring up to take its place.
        
             | prottog wrote:
             | > no one should be accumulating millions by doing almost
             | nothing as is the case now
             | 
             | Outside of people who inherit this kind of wealth, who
             | exactly is accumulating millions just sitting on their
             | asses?
        
               | PrimeMcFly wrote:
               | People who earn via investing for starters.
               | 
               | And then you have people earning millions, that at least
               | when compared to the numerous workers being underpaid and
               | actually doing the hard work that generates profit,
               | basically do so little work they may as well be sitting
               | on their asses.
        
               | umrcumrcu wrote:
               | You would effectively ban investment then? No one could
               | earn any money from index funds?
        
               | mxkopy wrote:
               | black/white fallacy
        
               | umrcumrcu wrote:
               | Someone has a million in index funds and earns more than
               | a Walmart worker by "sitting on their ass". Are you
               | proposing a ban to that?
        
               | mxkopy wrote:
               | limit != ban
               | 
               | Capital gains taxes don't prevent an investor from making
               | money.
        
               | r00fus wrote:
               | Your argument is a strawman - but yes, ideally this would
               | come via additional taxation or regulation of investment
               | (which we do now, but not well enough).
        
               | r00fus wrote:
               | I can't find the source, but I heard most of the newest
               | crop of billionaires made all their money of
               | financialized wealth (ie, not producing anything of
               | value, just arbitraging something - probably mostly real-
               | estate).
               | 
               | They're not exactly doing nothing but they're not
               | producing anything of real value. This is a growing
               | problem in the US.
        
               | just-ok wrote:
               | a $10M portfolio with 10% annual gains (tweak the numbers
               | as you'd like, it's still fairly reasonable for the
               | "wealthy", I think)
        
         | WalterBright wrote:
         | > where corporations run the government
         | 
         | Are you sure about that? In this state, at least, a politician
         | cannot get elected without union endorsement.
        
           | t-3 wrote:
           | Why do you think seem to think unions are independent from
           | corporations? The regulations on unions and corporate capture
           | of union executives make them little more than external HR
           | departments. The strike suppression and sheer number of
           | sellout contracts pushed through in the past few years under
           | the "most pro-union president" should make it abundantly
           | clear that unions in the US are a total joke.
        
             | WalterBright wrote:
             | > should make it abundantly clear that unions in the US are
             | a total joke.
             | 
             | The teachers' union rules the states, for example. It's
             | illegal for teachers to strike, but they strike anyway with
             | impunity, and the elected officials they endorsed always
             | cave.
             | 
             | The unfunded pension system for public union employees is
             | entirely due to their capture of the governments.
             | 
             | https://www.pewtrusts.org/en/research-and-
             | analysis/articles/...
        
             | WillPostForFood wrote:
             | The largest union, by a huge margin (over 1.2m larger than
             | #2) is the NEA (teacher's union), and three of the top six
             | unions are public unions. It would be reasonable to say at
             | least those operate independently from corporations.
        
               | fallingknife wrote:
               | But they seem not to operate particularly independently
               | from governments, which is kind of the problem.
        
         | reso wrote:
         | It's unfortunate that "socialism" came to mean "central
         | planning" in the 20th century. It didn't mean that before the
         | Bolsheviks and Marxist-Leninism out-competed (and then
         | destroyed) the other socialist movements in the 1920s and 30s.
         | 
         | By first principles socialism == worker control of the means of
         | production, or the idea that the people who do labour should
         | have a major stake in the decision making surrounding it.
         | 
         | This general idea of worker control is entirely compatible with
         | markets and with price-discovery as a coordination mechanism
         | between firms and localities. There's even partial examples of
         | this in many "capitalist" economies today. Volkswagen is
         | required to have union reps on their board of directors. That's
         | socialism!
        
           | asdff wrote:
           | There is socialism in the U.S. too. If you work for the
           | government in some capacity you are participating in the
           | socialist side of our nation in practice. IMO the US military
           | especially is a model of what a fully socialist US would look
           | like, if it were allowed to scale to all sectors. WWII with
           | the socialist centrally planned economy was an interesting
           | case study for the U.S.; it showed how this manner of
           | socialism can reorient an otherwise depressed labor economy
           | into the dominant world power in a few short years.
        
             | wrycoder wrote:
             | It works well, when all the other world economies have been
             | devastated by war.
             | 
             | The US government/military control in WWII was essentially
             | totalitarian, with rationing and price controls.
        
             | bart_spoon wrote:
             | How is that any different than "central planning"?
        
             | Manuel_D wrote:
             | The military relies on goods and services supplied by
             | private companies, selected through competitions based on
             | performance and cost. This is a lot more capitalist than
             | socialist. Even during WWII, wartime production still went
             | through private companies, not central planning. Just
             | because the government is the exclusive customer of a
             | product (e.g. tanks, bombers) doesn't make an economy
             | socialist when these products are still being built by
             | private enterprises.
        
             | xmcqdpt2 wrote:
             | This is also true in the private sector. While large firms
             | compete with each other, the internal organization of
             | corporations is a lot closer to a centrally planned
             | economy. You request what you need from the central
             | authority and you get allocated resources on the basis of
             | calculations and needs. You don't usually (in most firms
             | that are halfway decent places to work) compete with other
             | departments but work towards a common goal (improved
             | earnings).
             | 
             | This is/was a subject of debate amongst economists
             | actually, at least the very pro free-market ones: If market
             | economies are better than centrally planned ones, why
             | aren't firms with internal markets crushing the other,
             | internally "socialist" ones?
             | 
             | https://en.m.wikipedia.org/wiki/The_Nature_of_the_Firm
             | 
             | The orthodox answer is that market systems have higher
             | transaction costs so for things you have to do very often
             | (paying a salary) it's burdensome to use a market and
             | easier to have long, somewhat undefined contracts.
        
       | yourmatenate wrote:
       | Whether a centrally planned economy can work or not may be an
       | interesting question, but it is irrelevant to whether Socialism
       | works or not (or even whether it is right or moral or not).
       | Socialism does not require a centrally planned economy. It
       | doesn't even require a centralised state. Socialism is about how
       | workers organise their workplace (owning, managing and sharing
       | the produce and profit of their labour).
       | 
       | Having said that several avowed socialist states have attempted
       | to centrally plan the economy, and their success or failure is a
       | matter of highly disputed opinion - depending on what their aims,
       | achievements, and outside opposition (and possible sabotage)
       | were.
       | 
       | Some Socialists say it is possible: See "Towards a New Socialism"
       | (1993). Some say that Capitalist corporation like Amazon or
       | Walmart are already effectively achieving this ("The People's
       | Republic of Walmart" (2019)
       | 
       | Others suggest models such as "negotiated coordination",
       | "participatory economics", or "market socialism" will be able to
       | accurately account for need, volume, value etc. But there are
       | incredibly powerful interests that oppose any alternatives, and
       | most of us are stuck playing their game by their rules.
        
         | hospitalJail wrote:
         | >(owning, managing and sharing the produce and profit of their
         | labour).
         | 
         | The issue is that leaders and factions always emerge. Even if
         | everyone could 'keep their excess labor', you get groups of
         | people that position themselves to get higher value jobs or
         | easier jobs.
         | 
         | As much as people claim this is not inevitable, I've yet to see
         | this happen IRL or in history.
        
           | int_19h wrote:
           | Leaders and factions are not a problem in a system that does
           | not allow them to easily hoard power. Which _authoritarian_
           | socialism isn 't, of course, but that's not the only kind.
           | 
           | If you're wondering why we don't see the other kind much -
           | well, the socialist movements that won back in early 20th
           | century were generally the most ruthless ones, whereas the
           | more democratically minded movements (e.g. Luxembourgism or
           | various anarchist groups) were crushed. So you had a kind of
           | artificial selection for brutality to begin with - but then
           | countries controlled by those winners would also subsidize
           | similar movements elsewhere, and of course they demanded
           | ideological conformance in return. This is largely why stuff
           | like Marxism-Leninism and Maoism is still so pervasive on the
           | left.
        
           | yourmatenate wrote:
           | This is veering into a different topic, but I'd encourage you
           | to read "The Dawn Of Everything" (2021) & "The Art of Not
           | Being Governed" (2009) for long term examples of non-
           | hierarchal societies.
           | 
           | It may be inevitable that people may rise up to seek power
           | over others, but the question is what is the best way to
           | respond to this? Do we leave them to rule over others without
           | restrictions, or do we limit the damage they can do? Do we
           | reward this impulse of control of the few over the many to
           | their general detriment, or do we treat it as a mental health
           | issue (like sociopathy or hoarding)?
        
             | hospitalJail wrote:
             | >for long term examples of non-hierarchal societies.
             | 
             | Just mention them. There is no need for citing a book that
             | will take me a few months to read before I respond.
             | 
             | I have a feeling I know about the ones you are about to
             | mention. They had leaders or factions that controlled the
             | resources(not classless) or they only lasted for a few
             | months or years before getting conquered.
        
         | chmod600 wrote:
         | "Socialism is about how workers organise their workplace
         | (owning, managing and sharing the produce and profit of their
         | labour)."
         | 
         | That is a nice simplification, but it makes it sound like
         | something that can just emerge gracefully within a market
         | economy. There are employee-owned companies, for instance, and
         | if that's all that's needed for socialism to work, then it
         | would spread and show us all the benefits of socialism.
         | 
         | But the benefits are either not there or not amazing enough to
         | spread. I'm left feeling like you left out the controversial
         | parts, and I suspect that when you get into the details,
         | there's lots of room for complicated power dynamics and
         | ownership rules, perhaps much worse than non-socialist
         | alternatives.
        
         | revelio wrote:
         | This is conflating cause and effect.
         | 
         | Socialism is just a word, you can define it however you like.
         | In theory it can be some sort of vague co-op of co-ops. _In
         | practice_ it always leads to a centrally planned economy. There
         | 's a good reason for that. The ultimate root cause that
         | generates socialist ideals is not the plight of the workers or
         | anything so surface-level, it's the intuition that
         | intellectuals should run society. Thomas Sowell has done a lot
         | of excellent work elucidating this and explaining why it
         | happens.
         | 
         | To try and summarize, socialism appeals to people who like the
         | sound of the abstract ideas of intellectuals. If an
         | intellectual posits a clever-sounding reorganization of society
         | justified by high minded ideals, then this feels right to the
         | socialist mind. The sort of people who most aggressively
         | promote socialism are the sort of people who think society is
         | ultimately pretty simple - after all, the way to cure all
         | social ills is so simple it can be summed up in a single book
         | or set of pamphlets. It can be understood and reorganized by a
         | single mind. Marx was famously averse to detail about how
         | communist societies would actually work in practice, as were
         | all other socialists, but this didn't bother them because it
         | didn't seem like you needed a lot of detail. Hence the
         | "calculation debate" the article discusses, which kicked off
         | only after communists gained power.
         | 
         | If you intuit that society is simple and the best minds can
         | understand and reorganize it for the greater good, then a
         | planned economy is the obvious next step. Why would you _not_
         | plan it? The only possible justification would be if the
         | planning process was too hard, but that would imply that
         | society was too complex for any one mind or even a committee of
         | minds to fully understand, and if you believed that, you wouldn
         | 't be a communist to begin with.
         | 
         | So socialism or communism invariably always leads to top-down
         | authoritarianism in practice. Revealed preferences > stated
         | preferences.
        
         | greenie_beans wrote:
         | this needs to be at the top. the typical american conflates
         | socialism with a centrally planned economy, thanks to the red
         | scare of the 20th century and capitalism's grip on the public's
         | imagination.
        
           | chmod600 wrote:
           | Promises of "socialism" always seem to require granting huge
           | amounts of power to the government, which leads to
           | inefficiency, abuse, and worse.
           | 
           | In theory, perhaps socialism doesn't require huge amounts of
           | government power; or perhaps huge amounts of government power
           | doesn't always lead to horrible outcomes. But that's just a
           | theory and has little evidence to back it up at the scale of
           | millions of people.
           | 
           | Bernie Sanders said "These days, the American dream is more
           | apt to be realized in South America, in places such as
           | Ecuador, Venezuela and Argentina, where incomes are actually
           | more equal today than they are in the land of Horatio Alger.
           | Who's the banana republic now?"[1] in 2011, less than a
           | decade before collapse. If he can't tell the difference
           | between a socialist utopia and a recipe for disaster, how is
           | a layperson supposed to know?
           | 
           | Just like a tech startup: don't call your users stupid and
           | keep pushing your theoretically-good product. Listen and try
           | to understand why it's not working for them.
           | 
           | [1]
           | https://www.washingtonexaminer.com/news/campaigns/sanders-
           | di...
        
             | gilmore606 wrote:
             | > where incomes are actually more equal today than they are
             | in the land of Horatio Alger
             | 
             | If incomes were equal, how could a Horatio Alger story
             | possibly happen at all? Do people even think about what
             | they say?
        
           | stereolambda wrote:
           | Well, wait till we try to square what Americans commonly mean
           | by 'liberalism' and 'conservatism' with continental political
           | theory and classic theorists connected to these words. In
           | these cases America is, interestingly, removed to the left.
           | 
           | The man who "hijacked" the word socialism would probably be
           | Marx himself, as he declared his theory to be the
           | _(scientific) socialism_ , as opposed to various (he said)
           | "utopian" and "naive" thinkers who hadn't subscribed to views
           | like historical inevitability of communism, or dictatorship
           | of the proletariat. Then in the Eastern Bloc the local
           | political systems were called "real socialism", i.e. the one
           | put into actual functioning, on the road to future communism.
           | So association of socialism with command economy is well
           | established and not really one-sided ideologically, I think.
           | 
           | The terms to use if you want to distance yourself from that
           | heritage would be 'social democracy' (if you mean the ideas
           | that were partly implemented in capitalist Europe) or 'worker
           | democracy', if you want something more akin to what the GP
           | described. These ideas are easy to sympathize with on many
           | levels, and what passes for "socialism" in the US is often
           | just the not-really-disputed social contract on the other
           | side of the pond.
           | 
           | Ultimately these ideologies advocate for reducing economics,
           | to varying extents, to just democratic politics. Which is
           | kind of boring: not necessarily meaning this as a bad thing.
           | The calculation problem and related issues of organizing true
           | command economy are more interesting as an abstract problems
           | of engineering, organization etc., regardless of actually
           | wanting this politically to happen. (Being formed in part by
           | the Eastern experience, I am very much wary myself.)
        
       | reso wrote:
       | I'm of the opinion that the calculation debate is mostly a
       | misnomer. The information of individuals' preferences simply does
       | not exist to do calculation on, outside of the context of
       | exchange. I also think that exchange itself exposes only a
       | fraction of individuals' possible preferences, which are fleeting
       | and unpredictable, so even market exchange probably does a poor
       | job of this overall.
        
       | johngalt wrote:
       | The problem with planned economies is mismatched incentives, not
       | computational capabilities.
        
       | motohagiography wrote:
       | I don't see why we even argue about it. The calculation
       | discussion is a begged question, where it accepts that these
       | other ideas are desirable were it not for these implementation
       | details. Reality is, they are a pretext for subordinating and
       | oppressing people by denying their human individuality, and once
       | you have the means to do that, does it really matter if they
       | starve so long as you still hold the reins? Even if you are
       | defending "capitalism," you have already accepted a definition
       | invented by people whose object was to subvert and destroy your
       | civilization so as to rule over the ashes.
       | 
       | If we are going to accept that this (objectively, murderous)
       | ideology is topical for serious discussion, registering our
       | disgust with it and the its advocates should be included in the
       | discourse. If only more people understood that the way they feel
       | about conservative and even reactionary beliefs, many others feel
       | about totalitarianism, its polite euphemisms, and its apologists.
        
         | than3 wrote:
         | Moto, I have to point out that line of reasoning is seriously
         | flawed.
         | 
         | The assumptions you make at the beginning are just that,
         | assumptions with no rational backing.
         | 
         | Communication is necessary to have any kind of intelligent
         | discussion, and taking part in a discussion doesn't accept
         | anything by mere participation. Saying so doesn't make it so,
         | and that argumentation structure tends towards inflexible
         | dogmatic thought and polarizing psychological spirals.
         | 
         | At its core, in order to think you must risk being offensive,
         | and in order to learn something you must risk being offended.
         | Anything that interferes with that will often lead you to
         | irrational thought and false conclusions.
         | 
         | Additionally, being able to discuss subjects which you do not
         | agree with, while maintaining communication in a rational way
         | is a very good indicator of intelligence, and anyone can do
         | this if they want to.
         | 
         | Ideological indoctrination comes in all forms, and most
         | importantly most of us don't have a choice about that since its
         | inherent wherever we grew up.
         | 
         | If you can debate the merits and downsides, in an influential
         | way that turns someone to your view point isn't that a win?
         | 
         | Aside from this, I agree with your sentiment, but you would
         | have a much stronger argument if you don't give others such
         | easy targets to discredit you.
         | 
         | If they can't win on rational grounds, they don't have any legs
         | to stand on. Irrationality is after all not superior in any way
         | to rational thought, and self-interest and necessity are the
         | mother of all invention.
         | 
         | History has not been kind to socialism, and its been directly
         | responsible for more death than any other form of economy in
         | recent history.
        
       | primer42 wrote:
       | Economics claims to be a science, complete with mathematical laws
       | to back up claims. In reality, a huge number of economic papers
       | are cherry picking data to fit their claims.
       | 
       | Check out https://theconversation.com/the-reinhart-rogoff-error-
       | or-how... to learn how the 2010 paper that governments around the
       | world have used to justify austerity measures omitted data from
       | Australia, Austria, Belgium, Canada and Denmark. Once those
       | countries are included, the result completely flips.
       | 
       | Woops guess all the major powers had an oppsie for the last
       | decade.
        
         | WillPostForFood wrote:
         | _Economics claims to be a science_
         | 
         | Not really. A social science maybe. Most economics schools sit
         | in the liberal arts departments of universities. Plenty of
         | economists have egos big enough to talk like their work is
         | science, but I'd challenge you to provide a modern example of
         | an economist defending economics as an actual science.
        
       | csours wrote:
       | It's interesting to me that we debate economic ideas from the
       | mercantile age.
       | 
       | Economics is a meta-game, the game has changed significantly over
       | the last 200 years.
       | 
       | But we are taught economics in a historical context, not in a
       | future context, so we talk about ideas from generations ago.
        
       | cat_plus_plus wrote:
       | There is no serious debate anymore, USSR imploded from
       | impossibility of central planning, even despite attempts to
       | computerize the process. Even if every single factory manager was
       | honest and knowledgeable and even if every single worker put in
       | 100% effort for no extra reward, modern economy is not centrally
       | computable and contains factors not knowable apriori, such is
       | whether consumers will like a certain style of shoes once they
       | are already made and on the store shelves. These things need to
       | be discovered bit by bit through local knowledge and private
       | assumption of risks, which in turn is only possible through
       | incentive of private enjoyment of rewards.
       | 
       | However, I am also tired of both sides claiming that labor
       | unions, or social safety net, or some amount of government
       | regulation are socialism and therefore either "see you like it,
       | lets have some more" or "if government provides a health
       | insurance scheme, it's Gulags right away". These things are
       | governments or voluntary organizations of workers leveraging
       | productivity of free market to accomplish some additional tasks
       | deemed to remain unaddressed by market forces. Mind you, I am not
       | a fan of lots of government, especially on central level. There
       | are separate arguments about incentives for providers of aid to
       | remain efficient and for recipients to be grateful and
       | responsible. But let's have intelligent conversations about each
       | thing rather than "Medicare is communism and border control is
       | fascism".
       | 
       | There are also objective negative externalities like "if I didn't
       | buy smoke from your factory, you have no right to blow it over my
       | house", where regulation actually advances voluntary free market.
       | Some movements like Georgism have interesting proposals to use
       | mitigation of externalities to fund whatever government is needed
       | while making market more efficient.
        
         | mempko wrote:
         | And yet the largest, most successful organizations in the world
         | are centrally planned. The 'markets' don't explain China
         | despite what many those in the west try to believe.
        
           | umrcumrcu wrote:
           | The organizations were not centrally planned by government
           | officials.
        
         | umeshunni wrote:
         | > whether consumers will like a certain style of shoes once
         | they are already made and on the store shelves
         | 
         | The key is to reduce the kind of shoes available. Everyone
         | shall wear the state issued formal shoes and when they need to
         | engage in the required daily sporting activity, shall wear the
         | state issued canvas shoes.
        
           | spamlettuce wrote:
           | Ahhh yes reduce everyone into indistinguishable blobs of
           | society
        
         | prottog wrote:
         | > movements like Georgism have interesting proposals to use
         | mitigation of externalities to fund whatever government is
         | needed
         | 
         | I, too, would very much like to see this play out in practice.
         | But I don't think it'll ever actually happen in real life,
         | because it would likely dramatically reduce the size of
         | government (which politicians are loathe to do) and
         | economically hurt wealthy landowners the most.
        
           | local_crmdgeon wrote:
           | Texas is arguably the most Georgist state, and it seems to be
           | going quite well for them.
        
         | WalterBright wrote:
         | > if government provides a health insurance scheme, it's Gulags
         | right away
         | 
         | The price of health care in the US rose at the same rate as
         | inflation, up until 1968. Then, the price increases tilted
         | upwards, and have not slowed down since. What happened in 1968?
         | Government health insurance.
        
           | ajross wrote:
           | Also antibiotics, immune control drugs, transplant
           | technology, hearing aids, prosthetics, computer-assisted
           | tomography, MRI scans, cancer treatments that actually work,
           | mental health drugs and treatments likewise, ...
           | 
           | This is just wildly wrong. What you're looking at is the
           | "advent of modern medicine". Prior to the middle of the 20th
           | century, doctors were more or less limited to stitching
           | people up after injury. Since then, we can treat... almost
           | everything, honestly. But that's expensive, in particular in
           | regimes like the US that want to provide all that stuff to
           | everyone in the private markets that have the ability to pay
           | for it.
           | 
           | It's got absolutely nothing to do with how the payments are
           | handled. That's just silly.
        
             | dukeyukey wrote:
             | Spending on healthcare rose faster in the US than pretty
             | much anywhere else, at the same time American life
             | expectancy growth slowed down compared to peer nations.
             | 
             | I dunno what went wrong but something did.
        
               | ajross wrote:
               | Spending everywhere rose much faster than inflation,
               | though it's true more in the US. And life expectancy in
               | the US rose _very_ rapidly through the 60 's and 70's,
               | the period under discussion. It wasn't until the late
               | 80's that we started to fall off the curve.[1]
               | 
               | Your final sentence is just the same point upthread: you
               | want a simple coincidence[2] to make your argument.
               | 
               | [1] There is a ton of analysis and argument to do there
               | too, but suffice it to say that "because medicare" is
               | just as terrible an explanation.
               | 
               | [2] It's not even a coincidence! Desire for government-
               | guaranteed health care came about _precisely because of
               | and simultaneous to_ the availability of late-life care
               | that actually worked. No one wanted medicare in the 20 's
               | because there wasn't anything to pay for even if you had
               | it. But they damn sure wanted their walkers and hip
               | replacements in the 60's.
        
               | dukeyukey wrote:
               | No, I literally do not know what went wrong or when. I'm
               | not trying to make a point about government-provided
               | anything. Although government-provided healthcare began
               | quite a bit earlier than that, as early as the 1880s in
               | Germany, but definitely in the 1940s when the UK NHS
               | started.
        
             | WalterBright wrote:
             | > This is just wildly wrong.
             | 
             | Funny how it coincides with the very year the government
             | started providing health insurance. Funny how the same
             | thing happened when the government started providing
             | education subsidies.
             | 
             | Funny how the inflation did not happen with medical
             | procedures not covered by the government, such as Lasik eye
             | surgery.
             | 
             | A longish, but good read about this:
             | 
             | https://www.theatlantic.com/magazine/archive/2009/09/how-
             | ame...
             | 
             | P.S. Antibiotics came out in WW2, not 1968.
        
               | ajross wrote:
               | Are you seriously arguing correlation equals causality?
               | You don't think maybe you have the cause backwards?
               | People desired guaranteed health care in 1968 because in
               | 1968 there was expensive health care worth desiring?
        
           | escapedmoose wrote:
           | Where are you getting this information? I'm unable to verify
           | it.
        
             | WalterBright wrote:
             | google "historical US healthcare costs"
        
               | mhh__ wrote:
               | https://fred.stlouisfed.org/series/CPIMEDSL
               | 
               | Not sure if I see it.
               | 
               | If it's a _total_ expenditure graph, then surely it 's
               | obvious that expanding coverage would cost money?
        
               | runarberg wrote:
               | Alright:
               | 
               | First is a graph that shows healthcare costs increase
               | steadily slightly above inflate rate over time from 1970
               | 
               | https://www.healthsystemtracker.org/chart-collection/u-s-
               | spe...
               | 
               | Seconds are a bunch of numbers in a CSV indicating that
               | there is nothing special about 1968, healthcare costs
               | rose just like any other years. 1965 is in fact a pivotal
               | years, costs rose more then previous years when medicare
               | and medicate were rolled out (more on that later). But
               | also noting that between 1960 and 1965 prices still rose
               | above inflation, just not as much as in the late 1960s,
               | while still much more than in the 1990s.
               | 
               | https://www.cms.gov/Research-Statistics-Data-and-
               | Systems/Sta...
               | 
               | Third is an article explaining the trends (using same
               | number as in nr. 2) in terms of historic events.
               | 
               | > Between 1961 and 1965, health care spending increased
               | by an average of 8.9% a year. That's because health
               | insurance expanded. As it covered more people, the demand
               | for health care services rose. By 1965, households paid
               | out-of-pocket for 44% of all medical expenses. Health
               | insurance paid for 24%.
               | 
               | > From 1966 to 1973, health care spending rose by an
               | average of 11.9% a year. Medicare and Medicaid covered
               | more people and allowed them to use more health care
               | services. Medicaid allowed senior citizens to move into
               | expensive nursing home facilities.
               | 
               | https://www.thebalancemoney.com/causes-of-rising-
               | healthcare-...
               | 
               | So when you say stuff like: _"The price of health care in
               | the US rose at the same rate as inflation, up until
               | 1968."_ first check if your data and your dates are
               | correct, but also consider nuances. Like, what does it
               | mean thate prices go up (explained in source nr. 2) Does
               | it mean that individually your average out of pocket
               | costs are higher, does larger funds go from government to
               | the health care industry? Are hospital operations more
               | expensive? etc. But also note that if nobody gets health
               | care, health care costs are 0 USD, while treating more
               | people will make costs go up as more people are getting
               | more technologically challenging and expensive treatments
               | (explained in source nr. 3).
               | 
               | Taking costs going up when more people get healthcare to
               | automatically mean that socialism is bad, that is kind of
               | a simplistic take to say the least.
        
           | danaris wrote:
           | Are you sure it was 1968? And not, say, 1973? The year Nixon
           | signed the HMO Act into law, and brought about a _massive_
           | expansion of for-profit health insurance?
        
             | WillPostForFood wrote:
             | The HMO act created in response to rising health care
             | costs, Whether it helped or hurt, the problem was already
             | existent.
        
           | Manuel_D wrote:
           | It also coincided with lower birth rates, and a greater
           | percentage of elderly population. People seem to forget that
           | retirees account for the significant majority of healthcare
           | costs, but a relatively small percentage of healthcare
           | revenue. Increase the share of elderly, and you get higher
           | effective healthcare costs.
        
           | [deleted]
        
       | throwaway22032 wrote:
       | My general opinion on the economic situation in my country (UK)
       | is that capitalism just doesn't work under parameters in which
       | there's no competition.
       | 
       | If individuals back themselves into a corner in which they "have"
       | to live in place XYZ and "have" to do career XYZ and so on and so
       | forth, but are relying on others to make this work (e.g. they
       | don't have wealth), then they're going to get nailed because they
       | are working from a really bad negotiating position.
       | 
       | I don't see how socialism and unionizing etc fixes this because
       | the prime mover has to be that people actually want to change the
       | situation and put effort in to do so.
       | 
       | There needs to be a valve. Like, if I don't get paid enough as X,
       | I go and work as Y. If rent gets too high in A, I go and live in
       | B.
        
       | Animats wrote:
       | The article has a rather retro take on this, which is usual. But
       | not useful.
       | 
       | If you view capitalism as a feedback control system, it's a
       | system where there are many feedbacks with different lags. Such
       | systems oscillate. They don't converge on some optimal point.
       | That's well known.
       | 
       | US capitalism has so many monopolies and oligopolies that it
       | doesn't act much like a free market any more. Three big banks,
       | two big drugstore chains, three cellular providers... None of
       | those look like a competitive market. The European Union did a
       | study that concluded that price competition doesn't appear until
       | there are at least four players of roughly comparable size. If
       | you want a free market, you have to keep the players from
       | becoming too big.
       | 
       | On the other hand, central planning within large companies is
       | stronger than ever. WalMart and Amazon are very centrally
       | controlled. This works much better than Gosplan ever did. The
       | data is better and the lag is less. Gosplan had a monthly
       | reporting cycle and an annual plan cycle. WalMart had a daily
       | reporting cycle and a weekly plan cycle, and that was years ago.
       | 
       | China uses an opposite extreme - five-year plans. At one time
       | they were mostly political statements. That hasn't been true in
       | years. The 13th Five Year Plan (2016-2020) was pretty much
       | accomplished.[1] The 14th Five Year Plan (2021-2025) is coming
       | along reasonably well. Specific goals include 5G deployment to
       | 56% of the population, and conversion to IPv6. Yes, IPv6 made it
       | to the top level national strategy document. How those get turned
       | into lower level tasks I don't know.
       | 
       | [1]
       | https://www.uscc.gov/sites/default/files/Research/The%2013th...
       | 
       | [2] https://cset.georgetown.edu/wp-
       | content/uploads/t0284_14th_Fi...
        
         | revelio wrote:
         | Arguably the big trend in recent decades has been the non
         | centrally planned corporation. Google and Facebook are the
         | poster boys for this approach in which managers see themselves
         | primarily as enablers for the workers, in which those workers
         | have a great deal of individual autonomy and there's relatively
         | little central planning except in "wartime". Many other
         | companies have adopted this style to a lesser degree.
         | 
         | You can argue it has downsides, Google's brand dilution for
         | example, but these are very rich and successful companies by
         | any metric.
         | 
         | The core problem with central planning is handling change. If
         | the requirements placed on an institution never change, then
         | central planning eventually takes over because the plan is so
         | stable that it _can_ be managed centrally, and that may even
         | have economies of scale. Businesses like Walmart are basically
         | giant factories. Supermarkets are not a business that
         | experiences great or rapid change. Tech firms in contrast
         | experience and create change at a much faster rate, so central
         | planning is more harmful there.
         | 
         | Economies as a whole are in near constant change. That's why
         | centrally planned economies lose. They're always optimizing for
         | yesterday's goals, like how many tonnes of steel can be
         | produced per day, but can't react to changes like maybe now
         | computers matter more than steel.
        
         | ChadNauseam wrote:
         | > Three big banks, two big drugstore chains, three cellular
         | providers
         | 
         | Costs associated with banking, drugstore purchases, and cell
         | service make up an tiny proportion of total spending. Compare
         | that to housing, education, and healthcare, which are the main
         | drivers of inflation despite having many more than four players
         | of comparable size.
         | 
         | People say healthcare and housing is expensive because you need
         | it to live. You need food to live too, but food is so cheap as
         | to be basically free in the US. (Food as in rice and beans, not
         | Uber Eats.)
         | 
         | I'm not saying central planning is bad necessarily, but can it
         | be a coincidence that healthcare, housing, and education are so
         | expensive and also hugely "centrally planned"?
         | 
         | The government determines how many apartments get to be in your
         | city (and they usually decide on a laughably small number).
         | 
         | The government decides who gets to practice medicine (and they
         | make sure that the number is not very high [0]). They even
         | decide to not let doctors in countries like India do radiology
         | work in the US, just to boost American radiologist's pay.
         | 
         | As for education, most people go to public colleges where the
         | government literally decides the prices! Not only that, but
         | they generously offer "need-based scholarships" to people,
         | after determining their willingness to pay by getting their
         | family income.
         | 
         | So maybe central planning is the move, but it would be more
         | compelling if the biggest expenses of American life didn't all
         | seem to be caused by at-best incompetent central planning.
         | 
         | [0]: https://www.washingtonian.com/2020/04/13/were-short-on-
         | healt...
        
           | csb6 wrote:
           | > can it be a coincidence that healthcare, housing, and
           | education are so expensive and also hugely "centrally
           | planned"?
           | 
           | How are you defining central planning? It seems like you mean
           | "extensive government intervention and involvement", which I
           | don't think is an accurate definition.
           | 
           | Using that definition, then food is also a "centrally
           | planned" industry, since governments heavily subsidize dairy
           | producers and farmers, leading to cheaper food products.
           | Governments also are deeply involved in regulating and
           | intervening in the banking and telecommunications industries,
           | which you seem to imply are not "centrally planned" and so
           | are more affordable.
        
       | PrimeMcFly wrote:
       | I feel like socialism has become _really_ popular with the
       | younger generation in the last 10 years, to the point where it 's
       | now very common to just see capitalism blamed for all sorts of
       | things for which it likely has little to do with.
       | 
       | I don't see socialism ever really being feasible or taking off,
       | because capitalism does have so many advantages, and I feel like
       | the pure socialism many advocate for is at odds with human
       | nature.
       | 
       | The goal I think should be to try to negate the disadvantages as
       | much as possible through regulation, and this is what places like
       | the Nordic countries, Australia and NZ seem to be doing pretty
       | successfully - not there isn't still mass room for improvement.
        
         | thatfrenchguy wrote:
         | The thing is that what people call "socialism" in the US is
         | just what most people in Europe would call vaguely center-left
         | "social democracy".
         | 
         | There's so many places in the US where the private markets are
         | mis-organized and mis-regulated (healthcare, drugs,
         | transportation and housing being the most obvious four) that's
         | it's pretty obvious to find why younger folks are tending left.
        
           | webnrrd2k wrote:
           | Don't forget education -- a generation of students have
           | graduated with crushing debt. Is it not hard to imagine why
           | they often support European-style center-left social
           | democracy.
        
         | baggy_trough wrote:
         | Certainly disturbing given that socialism is the most murderous
         | ideology of the past century.
        
           | malermeister wrote:
           | [flagged]
        
             | baggy_trough wrote:
             | You must be joking.
        
               | charlieyu1 wrote:
               | Actually quite common thing to say among tankies. Their
               | only defence to all the horrible things communists did is
               | "Nazi was against communism". Yes they did. Doesn't mean
               | communism is any less horrible.
        
               | epakai wrote:
               | What part of socialist ideology stipulates the horrible
               | things?
               | 
               | It was somewhat inherent in Nazi ideology that there was
               | a superior group and inferior groups. Even this would
               | have resulted in a atrocity, but moreso was their will to
               | export their ideology by empire building.
               | 
               | I don't see the same sort of failures stemming from
               | socialism. Expansionism certainly leads to strife, but
               | the ideology itself doesn't enforce an us and them.
               | Except insofar as there are adherents and opponents of
               | the ideology itself.
        
             | kneebonian wrote:
             | See holomdor, the great leap forward, the five year plan,
             | the gulags, the Uighyr genocide, the Khmer Rogue.
        
             | ejb999 wrote:
             | [flagged]
        
           | webnrrd2k wrote:
           | I think that the communists might want a word with you: https
           | ://en.m.wikipedia.org/wiki/Mass_killings_under_communis...
        
         | Nasrudith wrote:
         | Socialists are worrying but a noisy minority who never shut up
         | pretending to be far bigger than they are within their bubbles.
         | You can tell this by their complete lack of electoral success.
         | Instead they operate based entirely upon sophistry of some sort
         | or another trying to manufacture a mandate when the numbers
         | just aren't there. It is essentially pure copium mistaken for a
         | tactic. Combine that with the addiction to being the resulting
         | reoccurring self-sabotage like purity spirals and fractal
         | ideological divisions for the sake of their own sense of
         | identity and I don't see them going anywhere.
        
         | rsynnott wrote:
         | I mean, I think a lot of it comes down to what people mean by
         | 'socialism'. Some people would call the regulation you mention
         | 'socialist' (this isn't really correct, but it has become a
         | common usage, so...)
         | 
         | I don't think that many people are actually arguing for
         | abandoning market economies (some are, but it's a minority
         | view); the major disagreement is the amount of regulation and
         | social transfer that should be applied to a market economy.
        
         | kneebonian wrote:
         | My sister recently posted a series of problems she has with
         | "capitalism" on Instagram. They basically all boiled down to "I
         | don't want to have to work" I didn't have the heart to point
         | out that "He who does not work shall not eat." Was said by Karl
         | Marx. I feel that part of the youths obsession with socialism
         | and blaming capitalism is that they have never experienced
         | scarcity to any real degree and because of that do not
         | understand that there are limited resources, and their issue is
         | fundamentally with that concept that they want to blame on
         | capitalism.
        
           | dragonwriter wrote:
           | > I didn't have the heart to point out that "He who does not
           | work shall not eat." Was said by Karl Marx.
           | 
           | The Communist writer known for adopting that passage of II
           | Thessalonians as "the first principle of socialism" is Lenin
           | (in _The State and Revolution_ [1917]), not Marx.
           | 
           | Non-Leninist Marxists tend to not have a very high opinion of
           | Lenin, in general.
        
           | mrkeen wrote:
           | Are you saying your sister is the straw man in this debate?
        
           | antisthenes wrote:
           | > I feel that part of the youths obsession with socialism and
           | blaming capitalism is that they have never experienced
           | scarcity to any real degree and because of that do not
           | understand that there are limited resources, and their issue
           | is fundamentally with that concept that they want to blame on
           | capitalism.
           | 
           | A very large portion of Gen Z and some Millennials as well
           | legitimately believe we live in a post-scarcity society where
           | work is optional. I'm not sure if this is a result of an
           | extremely privileged upbringing or an education system
           | failure, but they hold these beliefs pretty firmly.
           | 
           | Not sure they can actually empirically justify them to any
           | degree but there it is.
        
             | danaris wrote:
             | We do not yet live in a society where we can get by with no
             | one working.
             | 
             | We _do_ live in a society where we could absolutely house,
             | feed, and clothe every person in the Western world without
             | requiring them to pay for these things, and still be hugely
             | net-positive on productivity.
             | 
             | Fortunately, we now have _ample_ evidence that if you
             | provide for people 's needs, unless there is some very
             | pressing reason not to (eg, sick, disabled, caring for
             | children full-time, massively burnt out by our current
             | stressful work environment), _people still want to work_.
             | So we should absolutely be doing the above. It would
             | benefit the whole society, and only hurt those who will no
             | longer be able to control others by holding the threat of
             | death by starvation and exposure over them.
        
           | selimthegrim wrote:
           | Marx kind of borrowed that from the Bible.
        
             | tcmart14 wrote:
             | Yup. Marx borrowed a lot. Very little of Marx's ideas on
             | their own are original. Really what he did was stitch
             | together work from multiple sources. Lots of his
             | contradictions of capitalism come from Adam Smith in some
             | form. Marx is also, if I remember correctly, influence by
             | early christian communes. As I said, most of his ideas
             | taken individually are not original to him, it is only when
             | it is all combined, it is original.
        
             | dragonwriter wrote:
             | Lots of people borrowed that from the Bible, but AFAICT
             | Marx isn't one of them (Lenin is, but even as much as
             | Leninists like to pretend Leninism is Marxism, even they
             | don't pretend Marx and Lenin are literally the same
             | person.)
        
               | selimthegrim wrote:
               | Correct, I was responding to OP but it was Lenin.
        
         | dexterdog wrote:
         | Socialism appeals to youth because it emphasizes fairness which
         | is something we stress as important to young people. The
         | problem is that it doesn't work at scale so they have to
         | realize that as they grow. People who pick up on it too soon
         | are selfish and greedy. People who pick up on it too late are
         | just not very bright. Some people appear to be the latter, but
         | just know that the longer they can keep others from picking up
         | on it the more they can fleece them.
        
         | qsort wrote:
         | It isn't any more or any less popular than it has always been.
         | The same goes for stuff like racists, paleo-conservatives,
         | people who read Ayn Rand, overt nazis and other amusing
         | creatures.
         | 
         | Our media diet has changed substantially, and now any random
         | idiot with a wildly improbable theory can share it with the
         | world with no effort.
         | 
         | Populist stuff that seems to make sense on the surface always
         | has the upper hand in an unmoderated debate.
        
       | sebastianconcpt wrote:
       | If you break the pricing system you break the communication that
       | makes possible to efficiently A) get resources allocated B) do it
       | the least unfair way as humanly possible.
       | 
       | Debating for a centralized economy is as useful as debating that
       | a centralized internet will provide defense of freedom of
       | expression.
       | 
       | Only wannabe totalitarians would do that.
        
       | NoMoreNicksLeft wrote:
       | > An "administrative economy" in which "money is no longer a
       | driving force," designed to "promote central control of all
       | efforts and materials...in the interests of the people," was on
       | the horizon. In this socialized economy, central planners would
       | engage in "calculation in kind," or the practice of directly
       | judging the value of resources or the desirability of large-scale
       | planning without using any standard unit of accounting.
       | 
       | This sounds interesting, but everything I've ever read suggested
       | that this is a bleak landscape that no sane person should want to
       | live in. If I decide I want to dabble in oil painting, I need
       | only stop by Michael's or Hobby Lobby on my way home from work
       | and buy those.
       | 
       | If I lived in the socialist paradise, assuming that any were
       | manufactured at all, would I be put on a 3 yr waiting list, only
       | to get three tubes of ugly colors, or would I instead find out
       | that it is rationed out only to those who have (somehow)
       | demonstrated talent in the past?
       | 
       | When filmmakers in the Soviet Union were unable to get the
       | resources they needed, it wasn't always just that the communists
       | wanted to carefully control something they saw as propaganda.
       | Sometimes those resources just weren't manufactured. Or allocated
       | sanely.
       | 
       | The examples of "total warfare mobilization proves that it is
       | possible" are bizarre, given how awful conditions were for
       | soldiers and civilians alike at those times. Planned economies
       | only seem capable of making just barely enough of the most
       | essential necessities for the groups considered the most
       | important to those in charge.
       | 
       | It is difficult to believe that such a system will even perform
       | well enough to make sure one person or another doesn't go without
       | such simple necessities as water, energy, food, and cloth. Let
       | alone the sort of minor luxuries we're all accustomed to.
       | 
       | I don't like my odds that I'll get any of the things I want under
       | such a government. No thanks.
        
       | ciupicri wrote:
       | > You don't have permission to access /roundtable/socialist-
       | calculation-debate on this server.
        
       | ZeroGravitas wrote:
       | > the idea that economic exchange constitutes a system that
       | autonomously can achieve equilibrium without government
       | intervention."
       | 
       | Please ignore the man enforcing property rights and contract law
       | with a gun behind the curtain. He doesn't count, unless he tries
       | to tax someone. Then he's the bad guy all of a sudden.
        
         | [deleted]
        
       | chmod600 wrote:
       | On HN, we should think about socialism as a startup. Prove it
       | with a small number of loyal customers, listen and learn from
       | them, and then show how it scales to a lot of customers.
       | 
       | It seems to be stuck at the "scale it up" stage. Attempts to
       | scale it up are generally non-voluntary, and have bad outcomes.
       | Even keeping a small group of loyal customers is challenging.
        
       | Jonnston wrote:
       | There's an excellent fictionalized book about this topic called
       | Red Plenty. I just read it recently and found it thoroughly
       | enjoyable. It's a very humanizing account of a potentially dull
       | and abstract idea.
        
         | mwigdahl wrote:
         | I second the recommendation. It's a great book, and draws much
         | more closely on historical fact than I was aware of when first
         | reading it.
        
       | andrewflnr wrote:
       | The problem with a centrally planned economy is less one of
       | computational feasibility than that the input data it needs is
       | unavailable. It's weird that no one seems to be mentioning the
       | base case of prices or production levels: consumer preferences.
       | Consumers somewhat famously lie (to themselves and others) about
       | what they want. The truth is revealed in what tradeoffs they
       | make, whether in terms of money, time, mental effort, specific
       | resources, etc. What we're willing to sacrifice.
       | 
       | So the minimum you need for a money-free central economy is to
       | allow/force consumers to make _tradeoffs in-kind_ between the
       | products they want (far enough ahead of time for production
       | pipelines to adjust!), in terms of the entire pipeline of
       | resources each involves. This is, among other things, likely to
       | be a UX disaster. Having a single unit, whether you call it money
       | or not, is so much easier.
       | 
       | Which is maybe just a long way of saying: a central economy is
       | still going to invent money, as a communication aid if nothing
       | else.
        
         | chmod600 wrote:
         | You assume that preferences are economically important. I'm not
         | saying I disagree, but in theory you could have a central
         | planning department that effectively says "we have calculated
         | what you need for maximum productivity; here you go, like it or
         | not".
         | 
         | That, of course, doesn't take advantage of the sensory and
         | compute power of individual humans. You might not need to ship
         | a new hammer from the nearest warehouse if a nearby hunk of
         | metal will suffice. Or if a machine is broken, you might not
         | need a technician to drive from the nearest city if your niece
         | happens to know how to fix it.
         | 
         | Also, for central planning to work, it becomes obvious quickly
         | that people need to do exactly what they're told. Ignoring the
         | preferences of people and demanding they do as they are told
         | looks a lot like slavery. Perhaps a comfortable and efficient
         | slavery, but slavery none the less.
        
       | photochemsyn wrote:
       | This approach, which is an apparent centerpiece of the debate,
       | has a major flaw:
       | 
       | > "Assuming that individuals rationally assessed the marginal
       | utility (or simply the benefit gained) of their decisions, the
       | economy could be modeled as a system of functional equations.
       | Using mathematical formulas, these equations could be solved to
       | address imbalances in supply and demand and steer the economy
       | toward equilibrium. In a way, neoclassical ideas suffused
       | socialist rationales for economic planning with a kind of
       | mathematical and scientific authority."
       | 
       | Look around. Are individuals rational in their decision making?
       | Are the crypto boom and bust cycles rational? Was the housing
       | market rational? Was the dot-com boom rational? Take away that
       | and there's no longer any foundation for the 'mathematical and
       | scientific authority' - and then, neoclassical economics becomes
       | as nonsensical as Lysenko's 'blank slate' model of plant breeding
       | in the Soviet Union was.
       | 
       | In practice socialist ideas and capitalist ideas have value in
       | different contexts. A good balance can be found in John Kenneth
       | Galbraith's work, such as:
       | 
       | https://en.wikipedia.org/wiki/American_Capitalism
       | 
       | There are a couple of basic concepts, such as the fact that
       | markets fail miserably to provide optimal outcomes when there is
       | no real competition ('natural monopoly' situations such as roads,
       | water supplies, electricity grids, fiber optic trunks, etc.), and
       | that business interests as well as labor unions conspire to
       | control prices and wages. If the business interests or the labor
       | unions get the upper hand, you tend towards authoritarian control
       | of the facist or communist form, respectively. The optimal
       | solution is thus a balance of power between competing interests.
       | 
       | Over four decades of neoliberal economic policy in the USA has
       | upset that balance and made old-school state socialism much more
       | popular with the general public than it was previously, as
       | Galbraith warned about:
       | 
       | > "...private decisions could and presumably would lead to the
       | unhampered exploitation of the public, or of workers, farmers and
       | others who are intrinsically weak as individuals. Such decisions
       | would be a proper object of state interference or would soon so
       | become."
        
         | xvedejas wrote:
         | The issue isn't even how rational people are. Even if our lack
         | of rationality was no problem, it would still be impossible to
         | get someone to reveal their true preferences without a system
         | where they have to sacrifice value to obtain something. This
         | idea that calculation is the problem with the economy is
         | strange to me, as if there's some algorithm we know to maximize
         | good, that just needs some inputs that people will provide by
         | survey or something, and the only issue is that we can't scale
         | up our computers enough to run the algorithm. What is this
         | algorithm? The truth is that preferences are only revealed when
         | individuals are forced to make difficult and uncomfortable
         | decisions about what's important to them. People simply don't
         | prioritize their needs until they have to. And the nature of
         | humanity is that we are also prone to lying if overstating our
         | preferences has a selfish benefit. Unless socialists seriously
         | consider this, any algorithm is likely garbage-in, garbage-out.
        
       | transfire wrote:
       | Ironically over regulation is causing much of the inequality, not
       | the other way around.
        
         | runarberg wrote:
         | The real irony here is the fact that the author of this article
         | comes from the infamous Chicago school, which as the birthplace
         | of the neo-liberal ideology which would posit precisely this
         | kind of statement, yet the author does not seem to agree with
         | you here, instead seems to think this is still an open
         | question.
         | 
         | I however disagree, I think socialism has more than proven its
         | merit, particularly if you--as the author of this article does
         | --look at the history of the USA, beginning with the Gilded Age
         | where laissez-faire capitalism caused an unprecedented
         | inequality and poor labor conditions, only stopped by the great
         | depression and the new deal which followed with its regulations
         | as well as social programs. Now in the wake of Reaganomics
         | (championed by a previous generation of the Chicago school) we
         | seem to be flirting with a similar level of laissez-faire
         | capitalism, deregulations and gutting of the social programs,
         | we seem to be heading straight back to the inequality of the
         | Gilded Age.
        
           | autokad wrote:
           | the "Gilded Age" was termed after the fact by the same
           | liberal socialists. bringing inequality isn't a bad thing.
           | inequality emerges by necessity from a distribution where
           | people have choice, but that's too long to discus here. what
           | really maters is did the quality of life of everyone go up.
           | For example: The cost of oil was brought down by over 80%,
           | enabling people for the first time to read at night. You are
           | in a comfortable position to benefit from everything that
           | 'the gilded age' brought, but don't have to face the down
           | sides of not having it by being here.
        
             | runarberg wrote:
             | It can be argued that the benefits of lower oil prices were
             | insignificant next to the benefits of electricity
             | infrastructure which the New Deal brought to the masses. To
             | afford that oil, and to afford that lamp, you still had to
             | labor day and night, even if you were only 12 years old, in
             | such poor working conditions that dying at your job was a
             | serious risk. To enjoy the light from the electricity of
             | the many dams the work project of the New Deal brought, you
             | just had to pay your taxes.
             | 
             | The Laissez-faire capitalism of the gilded age came
             | crashing down in a spectacular depressions, the benefits,
             | which only some could afford, were short lived when
             | suddenly there weren't any jobs. The New Deal gave people
             | back their jobs so we could again afford the luxuries of
             | past inventions.
             | 
             | You see. I too can spin a narrative where socialism brings
             | all the good stuff and capitalism none.
        
               | autokad wrote:
               | The new deal was a huge failure. only the outbreak of WW2
               | ended the great depression, to which socialist policies
               | were only prolonging the pain of the great depression.
               | Bad working conditions is not == capitalism. Soviet
               | working conditions were not the workers paradise. Working
               | conditions in China is still not the workers paradise.
               | Working conditions in North Korea are not the workers
               | paradise. Need me to go on? I can do this all day.
               | 
               | and by the way, the oil for reading at night was only one
               | of many many great benefits. Ford bought cars to the
               | working class for example.
        
           | sharemywin wrote:
           | here's an article that says we already passed it.
           | 
           | https://news.yahoo.com/super-richs-wealth-concentration-
           | surp...
        
         | AlexandrB wrote:
         | Is this inherent to the concept of regulation or is it a
         | consequence of removing many of the guardrails that prevent
         | wealthy interests from influencing legislation?
        
           | aww_dang wrote:
           | Regulatory authority is a central point of failure.
           | Regulators are only human and as such are fallible and
           | corruptible by definition. There are no effective guard rails
           | which can change this. You cannot regulate away human nature.
        
         | hotpotamus wrote:
         | Inequality has been a feature of human civilization since long
         | before the modern regulatory state.
        
         | postpawl wrote:
         | What regulation specifically? From my own experience, Texas
         | power grid deregulation definitely hasn't made my electric bill
         | go down.
        
           | davidw wrote:
           | I'm not a libertarian, and believe pretty strongly that while
           | it's probably not a good idea to have a "planned economy",
           | you can and should redistribute some from the "winners" to
           | those who the market leaves behind.
           | 
           | That said, zoning regulations in particular are a net
           | negative, were mostly born out of racism in the US, and their
           | purported objectives can be achieved better through other
           | mechanisms - actually regulating externalities like noise and
           | smell.
           | 
           | https://islandpress.org/books/arbitrary-lines
        
             | PrimeMcFly wrote:
             | > you can and should redistribute some from the "winners"
             | to those who the market leaves behind.
             | 
             | Personally I'm in favor of wealth and income limits, with
             | anything past a threshold being redistributed or to fund
             | UBI.
        
           | artificialLimbs wrote:
           | When you pass new regulation (requirements), you generate new
           | costs associated with providing $service_or_product. When
           | costs go up, they are passed on to consumers. Now that your
           | $service_or_product is regulated by 17 regulations that cost
           | an average of $x each, your product now costs $base_price +
           | ($x * 17) dollars. People with low income are less likely to
           | be able to afford it.
        
             | vicktour wrote:
             | The best part about this is removing regulations wont
             | change any prices. They will just keep the profits and
             | continue to raise prices.
             | 
             | 1) Company Complains about regulations 2) Gov Removes
             | Regulations 3) Companies do dumb stuff 4) Gov Applies
             | Regulations 5) People forget about dumb stuff 6) Return to
             | step 1.
             | 
             | Case In Point: SVB
        
               | sharemywin wrote:
               | Not too mention that companies consolidate to cartels(I'm
               | looking at you industry trade groups) which have
               | significant pricing power so the cost usually don't end
               | up with the consumer.
        
             | sharemywin wrote:
             | But a lot of times those regulations are enforcing things
             | like health and safety or other types of cost shifting.
             | where either the there is large differential in the
             | expertise on one side of a transaction or a third party is
             | the one paying the costs of the transaction.
             | 
             | EPA - polluting for instance.
             | 
             | In 1969, the Cuyahoga River caught on fire in Cleveland
             | just a few miles north of Cuyahoga Valley National Park.
             | 
             | When rivers start catching of fire the companies doing the
             | polluting aren't really going to stop doing it and since
             | most consumers live pay check to check they will generally
             | chose the cheapest option available. even if they end up
             | paying 10X the cost down the line.
        
             | AlexandrB wrote:
             | This is extremely context sensitive. Antitrust regulation
             | doesn't require a "compliance" department unless you're
             | already huge and doing things that might be considered
             | anti-competitive. Likewise financial regulations like
             | Glass-Steagal[1] prevent certain types of organizations (in
             | this case hybrid commercial-investment banks) from existing
             | - I don't see how this could result in compliance costs.
             | 
             | [1] https://en.wikipedia.org/wiki/Glass-
             | Steagall_legislation
        
             | unshavedyak wrote:
             | Is there a better way to implement regulation then? Perhaps
             | i'm unaware of what regulation means in this context, but a
             | lot _(not all!)_ of regulation serves a purpose, or did
             | originally. Ie safety regulation for requiring how your
             | home wiring is done; that builders can 't skimp and use
             | thin wiring or etc. Food safety regulation for how long
             | food is allowed out of cooling, temperature requirements
             | for cooling, etc.
             | 
             | These obviously serve a goal, but if you're saying that
             | they also cause inequality, what is the better solution? Do
             | we remove all safety rails? Or are some seen as essential,
             | so the debate isn't pro or anti regulation but merely which
             | ones are worth the cost? etc
        
           | autokad wrote:
           | What exactly does your experience include? because Texas is
           | ranked 9/50 in terms of most affordable electricity at
           | 11.36c/kw. Admittedly cost of electricity is not the
           | strongest of arguments because there is a lot that goes into
           | the cost - such as weather and natural resources available.
           | But its a really week argument to use Texas electricity costs
           | when they are among the most affordable in the nation.
           | 
           | edit: source = electricchoice.com
        
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