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| Moderated by: Joe Kelley |
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| Monopolies | Rate Topic |
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| Posted: Mon Mar 4th, 2013 04:40 pm |
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1st Post |
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Joe Kelley Administrator
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State Socialism and Anarchism: HOW FAR THEY AGREE, AND WHEREIN THEY DIFFER (1888) by Benjamin R. Tucker (1854-1939) Modern terms Gresham's Law and Trade Deficit. Explained: SSA.23 First in the importance of its evil influence they considered the money monopoly, which consists of the privilege given by the government to certain individuals, or to individuals holding certain kinds of property, of issuing the circulating medium, a privilege which is now enforced in this country by a national tax of ten per cent., upon all other persons who attempt to furnish a circulating medium, and by State laws making it a criminal offense to issue notes as currency. It is claimed that the holders of this privilege control the rate of interest, the rate of rent of houses and buildings, and the prices of goods, – the first directly, and the second and third indirectly. For, say Proudhon and Warren, if the business of banking were made free to all, more and more persons would enter into it until the competition should become sharp enough to reduce the price of lending money to the labor cost, which statistics show to be less than three-fourths of once per cent. In that case the thousands of people who are now deterred from going into business by the ruinously high rates which they must pay for capital with which to start and carry on business will find their difficulties removed. If they have property which they do not desire to convert into money by sale, a bank will take it as collateral for a loan of a certain proportion of its market value at less than one per cent. discount. If they have no property, but are industrious, honest, and capable, they will generally be able to get their individual notes endorsed by a sufficient number of known and solvent parties; and on such business paper they will be able to get a loan at a bank on similarly favorable terms. Thus interest will fall at a blow. The banks will really not be lending capital at all, but will be doing business on the capital of their customers, the business consisting in an exchange of the known and widely available credits of the banks for the unknown and unavailable, but equality good, credits of the customers and a charge therefor of less than one per cent., not as interest for the use of capital, but as pay for the labor of running the banks. This facility of acquiring capital will give an unheard of impetus to business, and consequently create an unprecedented demand for labor, – a demand which will always be in excess of the supply, directly to the contrary of the present condition of the labor market. Then will be seen an exemplification of the words of Richard Cobden that, when two laborers are after one employer, wages fall, but when two employers are after one laborer, wages rise. Labor will then be in a position to dictate its wages, and will thus secure its natural wage, its entire product. Thus the same blow that strikes interest down will send wages up. But this is not all. Down will go profits also. For merchants, instead of buying at high prices on credit, will borrow money of the banks at less than one per cent., buy at low prices for cash, and correspondingly reduce the prices of their goods to their customers. And with the rest will go house-rent. For no one who can borrow capital at one per cent. with which to build a house of his own will consent to pay rent to a landlord at a higher rate than that. Such is the vast claim made by Proudhon and Warren as to the results of the simple abolition of the money monopoly. SSA.24 Second in importance comes the land monopoly, the evil effects of which are seen principally in exclusively agricultural countries, like Ireland. This monopoly consists in the enforcement by government of land titles which do not rest upon personal occupancy and cultivation. It was obvious to Warren and Proudhon that, as soon as individualists should no longer be protected by their fellows in anything but personal occupancy and cultivation of land, ground-rent would disappear, and so usury have one less leg to stand on. Their followers of today are disposed to modify this claim to the extent of admitting that the very small fraction of ground-rent which rests, not on monopoly, but on superiority of soil or site, will continue to exist for a time and perhaps forever, though tending constantly to a minimum under conditions of freedom. But the inequality of soils which gives rise to the economic rent of land, like the inequality of human skill which gives rise to the economic rent of ability, is not a cause for serious alarm even to the most thorough opponent of usury, as its nature is not that of a germ from which other and graver inequalities may spring, but rather that of a decaying branch which may finally wither and fall. SSA.25 Third, the tariff monopoly, which consists in fostering production at high prices and under unfavorable conditions by visiting with the penalty of taxation those who patronize production at low prices and under favorable conditions. The evil to which this monopoly gives rise might more properly be called misusury than usury, because it compels labor to pay, not exactly for the use of capital, but rather for the misuse of capital. The abolition of this monopoly would result in a great reduction in the prices of all articles taxed, and this saving to the laborers who consume these articles would be another step toward securing to the laborer his natural wage, his entire product. Proudhon admitted, however, that to abolish this monopoly before abolishing the money monopoly would be a cruel and disastrous policy, first, because the evil of scarcity of money, created by the money monopoly, would be intensified by the flow of money out of the country which would be involved in an excess of imports over exports, and, second, because that fraction of the laborers of the country which is now employed in the protected industries would be turned adrift to face starvation without the benefit of the insatiable demand for labor which a competitive money system would create. Free trade in money at home, making money and work abundant, was insisted upon by Proudhon as a prior condition of free trade in goods with foreign countries. SSA.26 Fourth, the patent monopoly, which consists in protecting inventors and authors against competition for a period long enough to enable them to extort from the people a reward enormously in excess of the labor measure of their services, – in other words, in giving certain people a right of property for a term of years in laws and facts of Nature, and the power to exact tribute from others for the use of this natural wealth, which should be open to all. The abolition of this monopoly would fill its beneficiaries with a wholesome fear of competition which would cause them to be satisfied with pay for their services equal to that which other laborers get for theirs, and to secure it by placing their products and works on the market at the outset at prices so low that their lines of business would be no more tempting to competitors than any other lines. SSA.27 The development of the economic programme which consists in the destruction of these monopolies and the substitution for them of the freest competition led its authors to a perception of the fact that all their thought rested upon a very fundamental principle, the freedom of the individual, his right of sovereignty over himself, his products, and his affairs, and of rebellion against the dictation of external authority. Just as the idea of taking capital away from individuals and giving it to the government started Marx in a path which ends in making the government everything and the individual nothing, so the idea of taking capital away from government-protected monopolies and putting it within easy reach of all individuals started Warren and Proudhon in a path which ends in making the individual everything and the government nothing. If the individual has a right to govern himself, all external government is tyranny. Hence the necessity of abolishing the State. This was the logical conclusion to which Warren and Proudhon were forced, and it became the fundamental article of their political philosophy. It is the doctrine which Proudhon named An-archism, a word derived from the Greek, and meaning, not necessarily absence of order, as is generally supposed, but an absence of rule. The Anarchists are simply unterrified Jeffersonian Democrats. They believe that “the best government is that which governs least,” and that that which governs least is no government at all. Even the simple police function of protecting person and property they deny to governments supported by compulsory taxation. Protection they look upon as a thing to be secured, as long as it is necessary, by voluntary association and cooperation for self-defence, or as a commodity to be purchased, like any other commodity, of those who offer the best article at the lowest price. In their view it is in itself an invasion of the individual to compel him to pay for or suffer a protection against invasion that he has not asked for and does not desire. And they further claim that protection will become a drug in the market, after poverty and consequently crime have disappeared through the realization of their economic programme. Compulsory taxation is to them the life-principle of all the monopolies, and passive, but organized, resistance to the tax-collector they contemplate, when the proper time comes, as one of the most effective methods of accomplishing their purposes. Ernest Lesigne “There are two Socialisms. One is communistic, the other solidaritarian. One is dictatorial, the other libertarian. One is metaphysical, the other positive. One is dogmatic, the other scientific. One is emotional, the other reflective. One is destructive, the other constructive. Both are in pursuit of the greatest possible welfare for all. One aims to establish happiness for all, the other to enable each to be happy in his own way. The first regards the State as a society sui generis, of an especial essence, the product of a sort of divine right outside of and above all society, with special rights and able to exact special obediences; the second considers the State as an association like any other, generally managed worse than others. The first proclaims the sovereignty of the State, the second recognizes no sort of sovereign. One wishes all monopolies to be held by the State; the other wishes the abolition of all monopolies. One wishes the governed class to become the governing class; the other wishes the disappearance of classes. Both declare that the existing state of things cannot last. The first considers revolutions as the indispensable agent of evolutions; the second teaches that repression alone turns evolutions into revolution. The first has faith in a cataclysm. The second knows that social progress will result from the free play of individual efforts. Both understand that we are entering upon a new historic phase. One wishes that there should be none but proletaires. The other wishes that there should be no more proletaires. The first wishes to take everything away from everybody. The second wishes to leave each in possession of its own. The one wishes to expropriate everybody. The other wishes everybody to be a proprietor. The first says: ‘Do as the government wishes.’ The second says: ‘Do as you wish yourself.’ The former threatens with despotism. The latter promises liberty. The former makes the citizen the subject of the State. The latter makes the State the employee of the citizen. One proclaims that labor pains will be necessary to the birth of a new world. The other declares that real progress will not cause suffering to any one. The first has confidence in social war. The other believes only in the works of peace. One aspires to command, to regulate, to legislate. The other wishes to attain the minimum of command, of regulation, of legislation. One would be followed by the most atrocious of reactions. The other opens unlimited horizons to progress. The first will fail; the other will succeed. Both desire equality. One by lowering heads that are too high. The other by raising heads that are too low. One sees equality under a common yoke. The other will secure equality in complete liberty. One is intolerant, the other tolerant. One frightens, the other reassures. The first wishes to instruct everybody. The second wishes to enable everybody to instruct himself. The first wishes to support everybody. The second wishes to enable everybody to support himself. One says: The land to the State. The mine to the State. The tool to the State. The product to the State. The other says: The land to the cultivator. The mine to the miner. The tool to the laborer. The product to the producer. There are only these two Socialisms. One is the infancy of Socialism; the other is its manhood. One is already the past; the other is the future. One will give place to the other. sui generis Latin, of its own kindFirst Known Use: 1754
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| Posted: Tue Mar 5th, 2013 11:26 am |
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2nd Post |
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kurtwaters Guest
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Damn, Joe. This is good.
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| Posted: Tue Mar 5th, 2013 12:02 pm |
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3rd Post |
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Joe Kelley Administrator
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Mike, The person Benjamin Tucker was known to me but until just last week I had not read those words. I had arrived at the same understanding and I condensed that understanding in Joe's Law. Power produced into oversupply reduces the price of power while purchasing power (money) increases because power reduces the cost of production. Here is the link to Josiah Warren's work: Equitable Commerce That is the work that Benjamin Tucker is describing as the Liberty path of Socialism. Proudhon and Warren were commented on by Stephen Pearl Andrews before Tucker put his two cents in. Here is Andrews commenting on Warren: http://www.anarchism.net/scienceofsociety.htm Here is Andrews commenting on Proudhon and Benjamin Tucker: PROUDHON AND HIS TRANSLATOR. Note in Tucker's work he claims: "It must not be inferred that either Warren, Proudhon, or Marx used exactly this phraseology, or followed exactly this line of thought, but it indicates definitely enough the fundamental ground taken by all three, and their substantial thought up to the limit to which they went in common. And, lest I may be accused of stating the positions and arguments of these men incorrectly, it may be well to say in advance that I have viewed them broadly, and that, for the purpose of sharp, vivid, and emphatic comparison and contrast, I have taken considerable liberty with their thought by rearranging it in an order, and often in a phraseology, of my own, but, I am satisfied, without, in so doing, misrepresenting them in any essential particular." So...Andrews takes up the challenge to correct any obvious (obvious to Andrews) misrepresentations that may exist in the connection between Warren and Proudhon. It may be a good idea to know, exactly, what might be different about Warren's work and the work of Proudhon, when those 2 people, and Marx are grouped into a set of people who revolutionized political economy. Note too that Warren's work is almost completely censored from any modern usage, and yet his work continues today in various forms that adapt to modern times. Quoting from Andrews in his answer to the challenge of accurate representation of the facts (as Andrews saw them): "Proudhon had the genius of discovery, a wonderful depth and clearness of perception,wonderful accuracy of statement, in the main, and wonderful strength of intellectual grasp upon his conception; but after all he is by no means, always, a luminous writer, sometimes because he had not reached the bottom of his subject, and sometimes because his love of epigrammatic and paradoxical statement betrayed him into astounding rather than convincing the reader. For example, he heads a long succession of propositions with the repetition of the statement that property is impossible, and proceeds to show, under each head, why it is so. But if property is impossible, then it cannot exist; and if it cannot exist, then it does not exist; and why should Mr. Proudhon write a big book to do away with what does and never did have any existence? Of course the literal meaning of what he says is absurd; but if you have the patience to study him intensely, you will find out that what he intends by this expression is: that property (in so far as he is here considering it, as that what gives increase) contains within itself a suicidal principle; that it is self-defeating; that it is constantly "killing the goose that lays the golden egg." His statement covers, but it does not convey, that idea. The idea is, in part, true; is profound, and profoundly important; but his way of saying it is afflicted with the same evil; it is repellent, self-defeating, and suicidal of his supposed purpose, that of being understood by the reader." I think, but may be wrong, that you have a similar critical perspective concerning my writing? Not much time for reading, I know, but there is so much more, such as: Love, Marriage, Divorce Andrews again (in my opinion) shows up as offering the more accurate viewpoint and having command of the power to convey that viewpoint better than most, a very competitive example. I think the following word combinations may help: voluntary cooperative genuine mutually beneficial productive competition versus involuntary antagonistic counterfeit mutually destructive competition or Liberty versus Legal Crime or Voluntary associations versus Involuntary associations or People using the power they have to make power abundant versus people using the power they have to take power from those who have it
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| Power Independence > Liberty Day Challenge 2013 > Liberty Day Challenge 2013 > Monopolies | Top |
