Discussion of Anarchism

That's a very much wrong headed view of monopoly that I don't see as supported by any economics.
Really? You need to learn some economics instead of making these strange proclamations. You could start with Henry Hazlitt's "Economics in One Lesson".

The idea that there would be entry of a competitor ignores what barriers any competitor might face.
So long as there are no barriers to entry, a monopolist will act as though he has competition. You repeatedly see that in the computer industry where one company after another has gained a dominant position and then been swept away by upstarts. Meanwhile the scum in the "Justice" Department are repeatedly moving in to abuse the latest leader. First it was IBM. Then Microsoft. Now Google.

The best example of a monopoly w/o state involvement was ALCOA which was the only producer of aluminum in North America for sixty years. At one point it produced two-thirds of the aluminum in the world. During that period, the price of aluminum dropped relentlessly as ALCOA refined their processes. After the thugs in the Roosevelt administration broke the company up, prices rose.

Part of the reason of this is that there is no such thing as a monopoly at all. It's simply a fantasy made up by people who have no notion how a market works. ALCOA never had a monopoly. They competed with steel manufacturers and, in fact, they competed with every other company in the world. All the companies vie with each other to order to convince the consumer to spend his hard-earned money on their product instead of someone else's.
 
So...you admit that you're wrong? That's nice. I didn't even have to do anything.
I never intended to imply that NAZIs approved of American exceptionalism but rather that a basic characteristic of fascism is that they believe the home country is exceptional. If my posts were unclear, then I apologise for that.

Anyway. Actual subject. Traitorfish initially stated that "business-owners outside of the state-complex [...] tend to constitute the leadership and social base of fascist movements". I disagreed with this, on the grounds that this does not really apply all that well to fascist movements, although it serves reasonably well to describe the far right in general. This is part of a semi-ongoing bit of repartee between me and him, based on his usually fairly exacting definitions of political stuff. I had in mind specific examples, like Hugo Stinnes and Alfred Hugenberg, neither of whom was particularly supportive of the Nazis - much less "fascist", which is a somewhat different beast - which became even more relevant when you brought up the Nazis.

In Italy especially, but also in Spain, fascism's initial backing did not come from the ranks of big business. Italy's fascists were initially from the Arditi, ex-soldiers that became paramilitaries in the quasirevolutionary ferment that the Italian state found itself in at the end of the First World War, and later gained a great deal of support from gang bosses and men who used fascism to become the equivalent of gang bosses (the archetypal ras). Businessmen, landowners, and industrialists attempted to back virtually every other possible rightist and centrist premier (so long as he wasn't one of the papist Popolari, anyway) before finally siding with Mussolini, hardly a ringing vote of confidence. Spain's fascists were not particularly numerous, but formed a hard core of dedicated students, intellectuals, and some soldiers; only after the Falange metamorphosed into a big-tent organization with the onset of the Civil War did its ranks swell to encompass Spain's few industrialists and businessmen.

You described fascism as an ideology that relies on corporatism and nationalism, both of which are true enough, albeit incomplete, and warmongering and beating up the rest of the world, which is not true. (Corporatism is not organic to fascism, but it goes along with fascist belief often enough that it might as well be.) You then claimed that the Nazis - again, not the best example of fascists - would have approved of American exceptionalism, something that seems to me to be completely off topic even if it were right, and it's not, as you admitted above. What does American exceptionalism - a phenomenon hardly confined to the One Percent - have to do with businessmen and fascism?

The reason that the NSDAP was not a particularly good example of a fascist organization is because the nationalism it espoused does not match up very well with archetypal fascist conceptions of the nation. Fascism is, at its core, an anti-individualist ideology; there is no individual, only the nation, and the state as its embodiment. Nazism didn't really work like that; the state and the Volk were separate entities, and the Führer mediated between them. The NSDAP, for what it's worth, also abandoned corporatism fairly early; even halfhearted measures like KdF were terminated by the onset of war, and KdF was hardly a corporatist policy in a meaningful sense.

In an abstract sense, it's pretty easy to see why businessmen and industrialists wouldn't be all that interested in an ideology that relies on anti-individualism and the restriction of individual rights.
Far enough. Thanks for the elaboration. A quite convincing argument. I will not be using the word "fascist" to describe western governments anymore. Not even Bush's. Although I should add that businessmen and industrialists are perfectly happy to use the state to advance their goals.
 
Something I have been wondering with regard to eliminating government, is the effect on the food industry.

What mechanism prevents me having to become a food additive expert to be able to determine what's in the can of food I'm buying? The free market directing business from companies who put a lot of crap into the tin to companies who don't, requires an informed buyer after all.
Nothing at all except the company's desire to please its customers. I, for one, would not buy anything if I didn't know what goes into it. The current labels are incomprehensible and often outright lies. Big Agra bribes the FDA to set up the rules this way. This "per serving" stuff is simply a method of hiding what's actually in the product. And because it's government-mandated you have no recourse.

Added to that, and I have asked this before but since there's now a dedicated thread for this, what mechanism ensures that the ingredients which are on the label are the ingredients that are actually in the can?
It's called reputation. Anyone who was caught lying would be liable to be put out of business. Companies spend a lot of effort to be accurate in their claims, even (maybe especially) those who aren't subject to government regulations on the subject.

Last time an independent customer service bureau was opted. But such an organisation needs to be paid and held accountable as well, so I wonder how this would play out.
I don't know what exactly you are referring to but I have no doubt that any agency that got caught doing such a thing, assuming it didn't have a government mandate, would probably be bankrupted. At a minimum, it would be a huge setback to the bottom line.
 
Nothing at all except the company's desire to please its customers. I, for one, would not buy anything if I didn't know what goes into it. The current labels are incomprehensible and often outright lies.
So you're not buying anything these days?
Big Agra bribes the FDA to set up the rules this way. This "per serving" stuff is simply a method of hiding what's actually in the product. And because it's government-mandated you have no recourse.
Big Agra?

Companies spend a lot of effort to be accurate in their claims
:lol:
Yeah. Right. In reality companies try to be as vague as possible within the regulations. I have first hand experience, and you should too. Orange Juice is allowed to put 100% Orange Juice on the package because that's what the product is, but they're trying to suggest 100% juice from oranges. Which it usually isn't.

I don't know what exactly you are referring to but I have no doubt that any agency that got caught doing such a thing, assuming it didn't have a government mandate, would probably be bankrupted. At a minimum, it would be a huge setback to the bottom line.
Didn't answer my question.

If any other anarchist wants to chime in, please.
 
I don't know what exactly you are referring to but I have no doubt that any agency that got caught doing such a thing, assuming it didn't have a government mandate, would probably be bankrupted. At a minimum, it would be a huge setback to the bottom line.

Capitalism is inherently risky - and so it is incorrect to believe that risk of bankruptcy is going to deter certain types of behaviour from private companies.

This right here is the problem I have with anarchism - the lack of realism and pragmatism. Individuals and companies do not act in scripted ways, kept in line by mystical ethical or motivational forces that make certain actions impossible. Some real, objective and forceful mechanism must be put in place to safeguard rights in society - or else, some convincing and workable alternative must be substituted in place of it.

The role of the State can't simply be dismissed - although it should be curtailed, limited and kept in its proper place.
 
Really? You need to learn some economics instead of making these strange proclamations. You could start with Henry Hazlitt's "Economics in One Lesson".
That book... I got 25ish pages into it and counted at least 2 fundamental, glaring errors that undermined his entire thesis. I can't remember what they are as it was a while ago, but I know that that's a poor book to learn economics. I would suggest Principles of Economics by Robert Frank and Ben Bernanke. But Cutlass already knows most/all of the material in there. It's a really good textbook.

So long as there are no barriers to entry, a monopolist will act as though he has competition. You repeatedly see that in the computer industry where one company after another has gained a dominant position and then been swept away by upstarts. Meanwhile the scum in the "Justice" Department are repeatedly moving in to abuse the latest leader. First it was IBM. Then Microsoft. Now Google.

The best example of a monopoly w/o state involvement was ALCOA which was the only producer of aluminum in North America for sixty years. At one point it produced two-thirds of the aluminum in the world. During that period, the price of aluminum dropped relentlessly as ALCOA refined their processes. After the thugs in the Roosevelt administration broke the company up, prices rose.

Part of the reason of this is that there is no such thing as a monopoly at all. It's simply a fantasy made up by people who have no notion how a market works. ALCOA never had a monopoly. They competed with steel manufacturers and, in fact, they competed with every other company in the world. All the companies vie with each other to order to convince the consumer to spend his hard-earned money on their product instead of someone else's.

Monopoly markets can exist without the state, but you are right that large all-powerful single firms are still in competitive markets and even in capital intensive markets that are won by economy of scale, the "monopolist" is actually in competition. And not only with competitors in the market but potential competitors who recreate what the market is (trucks vs trains, cell vs landline, search vs social media, etc)
That's a very much wrong headed view of monopoly that I don't see as supported by any economics. The idea that there would be entry of a competitor ignores what barriers any competitor might face. In hairdressing the barriers to entry are small, because the capital requirements, skill requirements, and scale requirements, are small. But in industries where those things are large, monopoly should be considered the natural result, because it is the most profitable result. And business people are not known for intentionally leaving money on the table. In the real world the places where monopoly has not emerged is mainly where government has not permitted it to. And even in those cases monopoly power has been common, to the detriment of the consumers and the market as a whole. Oligopoly has ruled industries for decades, and only foreign competition, backed by governments, has had the muscle to enter and destabilize the oligopoly, like American autos and steel.

Barriers to entry as caused by capital requirements just mean that no investor sees there being significant opportunity to break into the market at that level of capital risk. Which as abegweit points out is a function of the monopolist acting competitively. Again, driving down price to marginal cost may be of benefit to the consumer, and for necessities like electricity etc, this might be a worthy reason for government intervention. But having the cheapest goods for the consumer isn't always that good for the economy anyway. It hurts profitability which hurts everything. I suggest The Economics of Global Turbulence by Robert Brenner, or even Supercapitalism by Robert Reich. Both are definitely American liberals....

And the logical conclusion of finding intrinsic fault in monopoly pricing, price above marginal cost, would by a total regulation of all successful enterprise.

I can't believe I'm arguing against you on the side of abegweit here :crazyeye:

But to break from his view: again, the dangers of a monopoly come from their political power. And some industries we see as necessities/rights/whatever and so its for the common good to make them cheap.
 
Barriers to entry as caused by capital requirements just mean that no investor sees there being significant opportunity to break into the market at that level of capital risk. Which as abegweit points out is a function of the monopolist acting competitively. Again, driving down price to marginal cost may be of benefit to the consumer, and for necessities like electricity etc, this might be a worthy reason for government intervention. But having the cheapest goods for the consumer isn't always that good for the economy anyway. It hurts profitability which hurts everything. I suggest The Economics of Global Turbulence by Robert Brenner, or even Supercapitalism by Robert Reich. Both are definitely American liberals....

And the logical conclusion of finding intrinsic fault in monopoly pricing, price above marginal cost, would by a total regulation of all successful enterprise.

I can't believe I'm arguing against you on the side of abegweit here :crazyeye:

But to break from his view: again, the dangers of a monopoly come from their political power. And some industries we see as necessities/rights/whatever and so its for the common good to make them cheap.


The mistake you make is in thinking that the monopolist has to price low enough to prevent entry. That is false. All they need to do is present the credible threat that they will do so for the brief time span where the erstwhile competitor drops out. They get the monopoly pricing essentially all of the time that way. And you forget also other actions to stifle competition, such as coercing or bribing 3rd parties and simply buying out or colluding with "competitors".

Any or all of those tactics simply raise the risks to competitive capital to a point where it is too great to justify the investment.
 
The mistake you make is in thinking that the monopolist has to price low enough to prevent entry. That is false. All they need to do is present the credible threat that they will do so for the brief time span where the erstwhile competitor drops out. They get the monopoly pricing essentially all of the time that way. And you forget also other actions to stifle competition, such as coercing or bribing 3rd parties and simply buying out or colluding with "competitors".

Any or all of those tactics simply raise the risks to competitive capital to a point where it is too great to justify the investment.

They can't sustain a price to keep out a competitor, because if there's a high capital cost to enter, then their competitor can hold out too. More important, a competitor won't enter such a high stakes market anyway unless they have a process that gives them a competitive edge, like cheaper production. And yet even more important, the monopolist can't raise price above market conditions, anyway. Just because the monopolist is earning economic profits does not mean he can raise prices to whatever ceiling. It's equally true for a firm in competition not receiving monopoly profit.

The 3rd party coercion stuff I am absolutely not forgetting, and most of that falls outside of economics. Buying out competitors just means you can buy what they are willing to sell. Collusion just means you are setting one of you up for inefficiency, unless you are combining forces to increase efficiency in which case that's economically good.

And bribing whom? Government? Other firms? Either that's not economically effective and benefits competitors in the long term, is economically effective and a positive way, or is outside economics and is therefore, again, the greater danger of monopolies which is aggregated political leverage.

We still haven't identified why economic profit is bad, either.
 
I'm really not seeing where you are coming from. How did the market discipline Standard Oil? Oh wait, it didn't. It took a full human lifetime for the market to discipline General Motors.

The question is, can firms get a price and level of profit above what a competitive market would allow them to get. And clearly the management and owners of firms believe that the answer is yes, otherwise vast areas of common business behavior become entirely nonsensical.

If the answer was no, then there's just no economic justification for most of these horizontal mergers and acquisitions among large firms.
 
I'm really not seeing where you are coming from. How did the market discipline Standard Oil? Oh wait, it didn't. It took a full human lifetime for the market to discipline General Motors.

The question is, can firms get a price and level of profit above what a competitive market would allow them to get. And clearly the management and owners of firms believe that the answer is yes, otherwise vast areas of common business behavior become entirely nonsensical.

If the answer was no, then there's just no economic justification for most of these horizontal mergers and acquisitions among large firms.


The ultimate irony is that the two biggest periods of income growth among all social classes in the United States occurred during the times of Standard Oil's and GM's alleged unfair market practices.

I don't understand the specific meaning of your question. Can you rephrase?
 
Not in the sense of Proudhon, Bakunin, or Kropotkin. The traditonal anarchists consider themselves anti-capitalist, which I of course am not. I'm starting to think Rothbard shouldn't have used the "anarcho" prefix when talking about stateless, free-market capitalism.

How would a stateless, unregulated free-market deal with monopolies? How would you prevent them from forming?
 
warpus, we've been talking about monopolies for the last many posts.
 
The ultimate irony is that the two biggest periods of income growth among all social classes in the United States occurred during the times of Standard Oil's and GM's alleged unfair market practices.

I don't understand the specific meaning of your question. Can you rephrase?


And what would they have been otherwise?

Let's go back to first principles: The single highest rate of profit that can be squeezed out of any given industry is by a monopoly. Businesses are in the business of making as much money as they can. Why would they pass up the most profit they can make? What is stopping them?
 
This right here is the problem I have with anarchism - the lack of realism and pragmatism.

Then why bother being an objectivist at all?!
 
Then why bother being an objectivist at all?!

Dunno. Why project your own mental state onto others?

Spoiler :
Yes, I've had this conversation many times before

Spoiler :
No, it's not getting any more interesting each time I have it
Spoiler :
I like boobies
 
How would a stateless, unregulated free-market deal with monopolies? How would you prevent them from forming?
There is no such thing as a monopoly which is not backed by state force. It doesn't exist and never has. Stateless monopolies are an oxymoron.
 
That book... I got 25ish pages into it and counted at least 2 fundamental, glaring errors that undermined his entire thesis. I can't remember what they are as it was a while ago, but I know that that's a poor book to learn economics.
Maybe you should try to remember. And try to defend your claim. It is basic.

I would suggest Principles of Economics by Robert Frank and Ben Bernanke.
Helicopter Ben? Just please. Don't go there. Just don't.

But Cutlass already knows most/all of the material in there. It's a really good textbook.
Cutlass has the strange tendency to claim that people who deny his nonsense don't exist. It really is bizarre.
 
There is no such thing as a monopoly which is not backed by state force. It doesn't exist and never has. Stateless monopolies are an oxymoron.

-Stateless society
-I own a farm
-I burn down all other farms near me
-I'm the only farm left
-People forced to buy from me to get their food and not starve
-BANG monopoly
 
If any other anarchist wants to chime in, please.
I'll chime in because the problem is uniquely complicated from the Anarcho-Pacifist perspective.

See most problems we're given, like Joecoolyo's are simple to answer. People rarely like the answer, or find it realistic, but it doesn't take much brain power to figure out the appropriate course of action there.

Okay, now forcing food labeling is obviously out. You need violence to achieve that. Even if you intended some sort of penalty/fine type system, that requires property, so again, violence.

Now, the issue here is that while failure to label things can result in violence, such as poisoning an allergic person, the connection between producer and consumer is so distant that it requires not only virtue, but wisdom to avoid harming someone this way.

I would say, that at the very least a society without property would be a society without as much use for profit, which would strongly reduce the incentives to inaccurately label food, which at least be more consistent then a society which incentivizes people to do such a thing in the first place, and then uses violence to prevent it afterwards.
 
And what would they have been otherwise?

Let's go back to first principles: The single highest rate of profit that can be squeezed out of any given industry is by a monopoly. Businesses are in the business of making as much money as they can. Why would they pass up the most profit they can make? What is stopping them?

What would they have been otherwise? Lol we don't know, but we do know your two most "egregious" examples correlate to the greatest growth, so postulating how much better it could have been is a bit silly, don't you think? Maybe they would have been like other times of economic growth without the equal-ish income distribution gains? I dunno, the two times are pretty different from each other, anyway.

You still haven't said why profits are bad. This is very important. Because if profits are bad, then all business should be regulated. If they are good, what's the problem?
 
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