[net.politics.theory] Risk vs. Reward

eder@ssc-vax.UUCP (Dani Eder) (02/27/85)

> > > The Rich also create jobs, because they are willing to pay people to
> > > do things they themselves are not willing to do.  This is, in effect,
> > > redistributing wealth.
> > 
> > Huh? How is this "redistributing wealth"? The auto manufacturer pays
> > wages and gets cars. The cars he gets are worth more than the wages
> > he pays (otherwise he would have long ceased to be an auto manufacturer).
> > Therfore, not only does he not "redistribute wealth" but in fact
> > appropriates the wealth created by the labour power he hires.
> 
> The workers get a share of the value of their labor.  If there were
> no auto manufacturing company to pay them, their labor would be
> worthless.  It is because some person with a lot of money (theirs
> or someone else's) is willing to pay them for their labor that
> these people have jobs.  Isn't that nice?
> 
     Employees more or less get full value for their labor.  They
also have very little risk.  Working, as I do, for the Boeing Company,
I can be fairly confidant that I will get a check every two weeks
for the full amount of time I put in.  On the other hand, the shareholders,
who in aggregate own the company, have a bunch of plants full of 
equipment, a number of airplanes in various stages of assembly,
zillions of parts, and a lot of risk.

     These are the risks they take: will all the planes we build
get sold? will the selling price be more than what we pay suppliers
for parts and our employees for their labor? will the FAA certify
our new models as safe enough to carry passengers?  Will we be able
to compete with France, Britain, W. Germany, and the other owners of
Airbus, our main competitor?

     In return for taking these risks, the shareholders have the
opportunity, not the certainty, of making a return on their
investment.  If the employees wages were increased so that there
was no profit for the shareholders, why should they take those risks
I mentioned?  They would have no chance for gain and many chances
for loss.  

     One of the most fundamental rules of investment is that the
risk you take should be proportional to the potential gain.  This
applies to the laborer, who invests his time, as much as to the
venture capitalist, who invests money.

Dani Eder / ssc-vax!eder / Boeing

tonyw@ubvax.UUCP (Tony Wuersch) (03/04/85)

>      Employees more or less get full value for their labor.  They
> also have very little risk.  Working, as I do, for the Boeing Company,
> I can be fairly confidant that I will get a check every two weeks
> for the full amount of time I put in.  On the other hand, the shareholders,
> who in aggregate own the company, have a bunch of plants full of 
> equipment, a number of airplanes in various stages of assembly,
> zillions of parts, and a lot of risk.
> 
>      One of the most fundamental rules of investment is that the
> risk you take should be proportional to the potential gain.  This
> applies to the laborer, who invests his time, as much as to the
> venture capitalist, who invests money.
> 
> Dani Eder / ssc-vax!eder / Boeing

If a person works for MacDonalds in El Salvador, she makes perhaps 40 cents
a day.  If the same person works for MacDonalds in the U.S., she makes
minimum wage.  Perhaps without minimum wage she might make less, but it
sure would never get to 40 cents.  Why, then, given a huge disparity in
the wages one might receive for the same labor, does Dani make a blanket
statement like "Employees more or less get full value for their labor."?
Define what is meant by value, please.

Taking Dani's first paragraph into account, I assume he means to assert
that a laborer gets the same return on investment given her chosen level
of risk (minimal, he says) as a venture capitalist.  If he means by this
that the laborer receives the same marginal product that she contributes
(and I'm afraid I can't go into the neoclassical micro details that this
implies, though I'm sure that Dani must know what I mean if he says that
laborers get an adequate return), then I would ask how he knows that this
is so.  Present some evidence, please.  This is the real world, not the
world of neoclassical theory.

If he means something else, I would ask what he means, because I then don't
understand it at all.

I also question Dani's blanket assumption that laborers take on less risk
than capitalists as a whole.  Obviously, some capitalists take more risk
and so do some laborers.  But the blanket assumption is a general one.

Since Dani doesn't explain what risk is in comparing laborers and
capitalists, we have to suggest a plausible construct.  I suggest that
risk be expressed not in the individual contract, but in terms of a long-
term investment strategy, a set of contracts.  Furthermore, I'd suggest
that the costs of withdrawal and transfer of investment be factored into
the risk equation.  Finally, I'd suggest that the risk chosen by an
individual may not be a chosen number, it may be determined by other
factors.  If a person must accept the threat of brown lung in order to
obtain subsistence income and hence continue to live, then her risk
goes way up (I doubt her return would be sufficient -- let the reader
judge here).

A laborer's investment strategy, I'd suggest, involves heavy fixed
investment (in housing, education, accumulated community ties [friends,
counselors, etc.]), and high overhead (fixed and regular maintenance
costs), relative to income received.  In situations of high unemployment
(i.e. most of the real world), the peaks and valleys of economic cycles
may not permit an adequate income stream to maintain the laborer's fixed
investment, since the maintenance of that income stream depends on the
success of an all-eggs-in-one-basket investment -- the current job.
The ability of a laborer to spread her investment is limited by the
transportation and time constraints inherent in her physical form.  None
of these constraints limit the capitalist who can deploy his money
worldwide.

Any all-eggs investment strategy is high risk.  No investment
analyst would ever recommend an all-eggs strategy to a conservative
investor.  That almost all laborers carry out the investment strategy
I've outlined above (and often the fixed investment becomes more
extensive as the strategy enters its later phases), implies that said
strategy involves a high level of risk, since no conservative investor
in his right mind would ever pursue such a strategy.

If Dani thinks that laborers get the right amount of return given their
small level of risk, and their level of risk is what I claim it to be,
i.e. much higher, then clearly laborers must be getting a grossly
insufficient amount of return, or they are forced by circumstances to
carry out a retarded, stunted, and defective investment strategy.  I
wonder what those circumstances might be?

Tony Wuersch
{amd,amdcad}!cae780!ubvax!tonyw

eder@ssc-vax.UUCP (Dani Eder) (03/12/85)

> >      Employees more or less get full value for their labor.  They
> > also have very little risk.  Working, as I do, for the Boeing Company,
> > 
> > Dani Eder / ssc-vax!eder / Boeing
> 
> Define what is meant by value, please.
     The shareholders are betting that they can rent the employees
time for less than the labor is worth to the eventual buyers of the
product.  The excess of money received from customers over costs,
including employee salaries, is the profit.
The value of the labor is what the customers who buy the product
are willing to pay over the other costs of making the product (in
other words the 'value added' in the eyes of the customer)
In the case of my company, 5/6 of that value added goes to the
employees as wages, 1/6 goes to the shareholders as dividends and
retained earnings.  That is what I meant by 'more or less full value'.
> 
> Since Dani doesn't explain what risk is in comparing laborers and
The risk of an employee is the wages an employee has earned but
has not been paid for yet, times the small chance the company will
not pay those wages on the next payday.
The risk of the shareholder is his invested capital times the
chance he will get back less than he invested.  In the first case,
it may be hundreds or a few thousand dollars times a small fraction
of a percent chance of getting nothing.  In the second, it is the
dollar amount invested times 10-40% chance of losing money, depending
on the company.  In venture startups it is a 80-90% chance of losing
most or all of your money.  With more established companies, you seldom
lose most of your investment.
> 
> A laborer's investment strategy, I'd suggest, involves heavy fixed
> investment (in housing, education, accumulated community ties [friends,
> counselors, etc.]), and high overhead (fixed and regular maintenance
> costs), relative to income received.  In situations of high unemployment

     On a discounted present value basis, my current job is worth
hundreds of thousands of dollars.  The years I put in to be able to
acquire such a job were well spent.  Even a minimum wage, minimal skill
job has a present value of $80,000. There the acquisition costs are
small compared to the value of the job.  For a skilled employee, the
question is whether additional education will return enough of an
increase in income to make it worthwhile. 
> (i.e. most of the real world), the peaks and valleys of economic cycles
> may not permit an adequate income stream to maintain the laborer's fixed
> investment, since the maintenance of that income stream depends on the
> success of an all-eggs-in-one-basket investment -- the current job.
> The ability of a laborer to spread her investment is limited by the
> transportation and time constraints inherent in her physical form.  None
> of these constraints limit the capitalist who can deploy his money
> worldwide.
> 
> Any all-eggs investment strategy is high risk.  No investment
> analyst would ever recommend an all-eggs strategy to a conservative
> investor.  That almost all laborers carry out the investment strategy
> I've outlined above (and often the fixed investment becomes more
> extensive as the strategy enters its later phases), implies that said
> strategy involves a high level of risk, since no conservative investor
> in his right mind would ever pursue such a strategy.

And what do you call a two wage earner family?  I call it diversification.
At one point a few years ago, my brother and I, and both my parents were
all working simultaneously(not all full time, though).  That was serious
diversification. 
> 
> Tony Wuersch
> {amd,amdcad}!cae780!ubvax!tonyw
Dani Eder / Boeing / ssc-vax!eder

*** REPLACE THIS LINE WITH YOUR MESSAGE ***

tonyw@ubvax.UUCP (Tony Wuersch) (03/14/85)

Value:
> The value of the labor is what the customers who buy the product
> are willing to pay over the other costs of making the product (in
> other words the 'value added' in the eyes of the customer)
> In the case of my company, 5/6 of that value added goes to the
> employees as wages, 1/6 goes to the shareholders as dividends and
> retained earnings.  That is what I meant by 'more or less full value'.
> > (Dani Eder)

Not bad as a definition of the sum of value.  With one crucial addition
that I'm sure Dani wouldn't accept, it comes close to a Marxist criterion.

That addition is the shift from the notion of "employee", an payroll
category, to "worker", a person who produces.  What managers produce requires
usually less skill than what workers produce (especially skilled ones),
but it always gets more compensation in wages, a good deal more than
per employee value plus skill benefits.

The opinion of most Marxists who judge "values" in an honest way, that is,
by evaluating labor output and effort, is that the differential that managers
receive above their per employee value plus skill benefits is not value,
but surplus, of the same sort as shareholders receive.  Put that
differential on the shareholder side of the ledger and employees end up
with much less than full value.

> The risk of an employee is the wages an employee has earned but
> has not been paid for yet, times the small chance the company will
> not pay those wages on the next payday.
> The risk of the shareholder is his invested capital times the
> chance he will get back less than he invested.

As I said previously, the costs of early withdrawal and transfer have to
be factored into the amount risked, just as they are in judging whether
to buy securities or stocks.  The cost of early withdrawal over a period
is the probability of losing one's job over that period times the costs
of reinvestment and transfer.  This cost is practically nil for the
shareholder in a working stock exchange.

> > 
> > A laborer's investment strategy, I'd suggest, involves heavy fixed
> > investment (in housing, education, accumulated community ties [friends,
> > counselors, etc.]), and high overhead (fixed and regular maintenance
> > costs), relative to income received.  In situations of high unemployment
> 
>      On a discounted present value basis, my current job is worth
> hundreds of thousands of dollars.  The years I put in to be able to
> acquire such a job were well spent.  Even a minimum wage, minimal skill
> job has a present value of $80,000.

Discounted present value is a standard for judging long term investments,
under the assumption that money obtained in interest is added to the
initial capital invested over the period under consideration, and not
withdrawn (i.e. spent on any thing else) over that period.  Since most
wages must be withdrawn in order to subsist, interest and interest on
interest cannot accumulate.  Hence discounted present value is not valid
for computing the worker's return.  Her return is additive -- only the sum
of wages -- whereas the capitalist's return keeps accruing interest.  The
difference between the additive and discounted present value all goes to
the capitalist as a higher return on investment.

> > Any all-eggs investment strategy is high risk.  No investment
> > analyst would ever recommend an all-eggs strategy to a conservative
> > investor.  That almost all laborers carry out the investment strategy
> > I've outlined above (and often the fixed investment becomes more
> > extensive as the strategy enters its later phases), implies that said
> > strategy involves a high level of risk, since no conservative investor
> > in his right mind would ever pursue such a strategy.
> 
> And what do you call a two wage earner family?  I call it diversification.
> At one point a few years ago, my brother and I, and both my parents were
> all working simultaneously(not all full time, though).  That was serious
> diversification. 
>

Yes it was.  But there is still a world of difference between a 2 and 1/2
eggs investment (say, two parents full time and two children one quarter
time) and the n eggs investment a capitalist can make precisely to reduce
his risk.  A workers family can only reduce their risk so much.  A
capitalist can reduce his risk to zero.

Tony Wuersch
{amd,amdcad}!cae780!ubvax!tonyw

tdh@frog.UUCP (T. Dave Hudson) (03/14/85)

Risk is neither a prerequisite nor a justification for profit.

Profit can be present without notable risk, given the correct inference
from consumers' desires to their behavior and an awareness of the lead
times required for competition to interfere.  With alacrity, high profits
are possible.  Without it, profits tend toward the prevailing market rate
of interest.  (Some consider this rate as an oportunity cost.)

It remains true, however, that you cannot have your cake and eat it too.
You cannot long have a system that denies the fruits of speculation but
requires the incentive of the acquisition of those fruits, of whatever
kind they may be, in order to continue to work.  You cannot have a system
of objective laws if subjective criteria are used within them.  You cannot
expect people to plan according to objective laws if the laws aren't.
You can't have the profits of one kind of planning if you've made that
planning impossible.

					David Hudson

laura@utzoo.UUCP (Laura Creighton) (03/18/85)

I wonder about Ungermann-Bass. Do they have lousy management, or have they cornered the
market in not needing management or what? I sure wouldn't say that the
work that a manager does is ``less work'' or ``less valuable'' than
the work that a non-manager does. It is very hard work being a manager;
I have tried it, and I can't do a good job. Naturally, there are lousy
managers out there, but there are lousy workers as well...

Laura Creighton
utzoo!laura

eder@ssc-vax.UUCP (Dani Eder) (03/20/85)

> 
> The opinion of most Marxists who judge "values" in an honest way, that is,
> by evaluating labor output and effort, is that the differential that managers
> receive above their per employee value plus skill benefits is not value,
> but surplus, of the same sort as shareholders receive.  Put that
> differential on the shareholder side of the ledger and employees end up
> with much less than full value.
> 
     But aren't managers employees too?  They are here at Boeing.
Perhaps your company is different.  The value of a manager at the
first level (i.e supervisor, foreman) is supposed to be the increased
output of the employees he manages.  This improvement can be from
motivation, training, skill in scheduling, or ability to get the
higher level managers to release funds to buy new equipment.  In order
to attract the best people to these management positions, the
compensation is set higher than that of the shop-floor operative.
If this were not the case, then you would preferentially attract
people who like to boss others.
     When you get to the higher levels of management, a factor in
the compensation level is the reduction of employee theft.  High
level managers can steal large amounts from the shareholders, and a
sufficiently high salary deters this by reducing the need.  At the
higher levels of management, compensation in the form of stock and
bonuses helps secure the shareholders return by tying the managers
return to it.  These incentives would not be as necessary in a
smaller company with a single major shareholder who has direct
contact with management.  In the case of large corporations with
dispersed ownership, control is vested in high ranking employees,
and 'perks' are required to reduce abuse of this power.
     When you look at the amount of these perks, beyond the value
of managers in the form of increased output, it is not significant.
Let us make the simplifying assumption that managers are only 'worth'
as much as average employees, and that anything above that is
perks.  Using data from my company, perks amount to less than 4%
of total compensation.  

> > > A laborer's investment strategy, I'd suggest, involves heavy fixed
> > > investment (in housing, education, accumulated community ties [friends,
> > > counselors, etc.]), and high overhead (fixed and regular maintenance
> > > costs), relative to income received.  In situations of high unemployment
> > 
> >      On a discounted present value basis, my current job is worth
> > hundreds of thousands of dollars.  The years I put in to be able to
> > acquire such a job were well spent.  Even a minimum wage, minimal skill
> > job has a present value of $80,000.
> 
> Discounted present value is a standard for judging long term investments,
> under the assumption that money obtained in interest is added to the
> initial capital invested over the period under consideration, and not
> withdrawn (i.e. spent on any thing else) over that period.  Since most
     That is not how I understand the term.  The assumption behind
discounting is that a dollar now is worth more to me than a dollar in
the future.  The discounted present value is the dollar amount today
that equals the sum of all future benefits when they are adjusted for
their distance in the future.  Usually this is acheived by assigning
a 'discount rate'.  For example, if the discount rate is 10%, then a
ten dollar return next year has a present value of nine dollars.
Another example is my job. Using a 10% discount rate, and a 5% probability
per year of getting fired, and a 3% per year real salary growth, I
get a present value for my job for the next seven years of $147K.  

> wages must be withdrawn in order to subsist, interest and interest on
> interest cannot accumulate.  Hence discounted present value is not valid
> for computing the worker's return.  Her return is additive -- only the sum
> of wages -- whereas the capitalist's return keeps accruing interest.  The
> difference between the additive and discounted present value all goes to
> the capitalist as a higher return on investment.
  The capitalist may spend the interest as it comes in, and the frugal
worker may save much of her income.  As an example, we (my wife and I)
save 42% of our after-tax wages.  When I was single I was at about 30%,
and when I was a minimum-wage college student, neglecting tuition I was
at 40%.  It is a matter of whether you want to spend all your income
or adjust your lifestyle so as to save money.  I am therefore a counterexample
to the first case.  As for the other, consider a retired person with
$150,000 in utility stocks, but who lives on the dividend checks.
Where is the capital accumulation?
> 
> > And what do you call a two wage earner family?  I call it diversification.
> > At one point a few years ago, my brother and I, and both my parents were
> > all working simultaneously(not all full time, though).  That was serious
> > diversification. 
> >
> 
> Yes it was.  But there is still a world of difference between a 2 and 1/2
> eggs investment (say, two parents full time and two children one quarter
> time) and the n eggs investment a capitalist can make precisely to reduce
> his risk.  A workers family can only reduce their risk so much.  A
> capitalist can reduce his risk to zero.
   Someone with lots of money can make her risk small, but not zero.
A two wage-earner couple who work in different industries have about
a 1% chance of being simultaneously unemployed.

> 
> Tony Wuersch
> {amd,amdcad}!cae780!ubvax!tonyw

carnes@gargoyle.UChicago.UUCP (Richard Carnes) (03/29/85)

Neal Weidenhofer writes:
> > ...the principle of socialist fairness: "To each according to his
> > work, from each according to his abilities."  [Tony Wuersch]

> This is "socialist"?!?  I had always heard "To each according to his
> NEED."  It sounds like you're half-way to capitalism.

Wake up and smell the coffee, Neal.  Socialism *is* halfway between
capitalism and communism, according to its Marxist meaning.  Here is
what Marx had to say about distribution under socialism:

"What is `a fair distribution'?

"Do not the bourgeois assert that the present-day distribution is
`fair'?  And is it not, in fact, the only `fair' distribution on the
basis of the present-day mode of production?  Are economic relations
regulated by legal conceptions or do not, on the contrary, legal
relations arise from economic ones? ....

"What we have to deal with here is a communist society, not as it has
*developed* on its own foundations, but, on the contrary, just as it
*emerges* from capitalist society; which is thus in every respect,
economically, morally and intellectually, still stamped with the
birth marks of the old society from whose womb it emerges.
Accordingly, the individual producer receives back from society --
after the deductions [for costs of administration, funds for those
unable to work, for schools, etc.--RC] have been made -- exactly what
he gives to it.  What he has given to it is his individual quantum of
labor.  For example, the social working day consists of the sum of
the individual hours of work; the individual labor time of the
individual producer is the part of the social working day contributed
by him, his share in it....The same amount of labor which he has
given to society in one form he receives back in another.  Here
obviously the same principle prevails as that which regulates the
exchange of commodities, as far as this is exchange of equal
values....A given amount of labor in one form is exchanged for an
equal amount of labor in another form.

"Hence, *equal right* here is still in principle *bourgeois
right*....This *equal right* is still constantly stigmatized by a
bourgeois limitation.  The right of the producers is *proportional*
to the labor they supply; the equality consists in the fact that
measurement is made with an *equal standard*, labor.

"But one man is superior to another physically or mentally and so
supplies more labor in the same time, or can labor for a longer time;
and labor, to serve as a measure, must be defined by its duration or
intensity, otherwise it ceases to be a standard of measurement.  This
*equal* right is an unequal right for unequal labor.  It recognizes
no class differences, because every is only a worker like everyone
else; but it tacitly recognizes unequal individual endowment and thus
productive capacity as natural privileges.  IT IS, THEREFORE, A RIGHT
OF INEQUALITY, IN ITS CONTENT, LIKE EVERY RIGHT.  Right by its very
nature can consist only in the application of an equal standard; but
unequal individuals (and they would not be different individuals if
they were not unequal) are measurable only by an equal standard in so
far as they are brought under an equal point of view, are taken from
one *definite* side only, for instance, in the present case, are
regarded *only as workers* and nothing more is seen in them,
everything else being ignored.  Further, one worker is married,
another not; one has more children than another, and so on and so
forth.  Thus, with an equal performance of labor, and hence an equal
share in the social consumption fund, one will in fact receive more
than another, one will be richer than another, and so on.  To avoid
all these defects, right instead of being equal would have to be
unequal.  

"But these defects are inevitable in the first phase of communist
society as it is when it has just emerged after prolonged birth pangs
from capitalist society.  Right can never be higher than the economic
structure of society and its cultural development conditioned thereby.

"In a higher phase of communist society, after the enslaving
subordination of the individual to the division of labor, and
therewith also the antithesis between mental and physical labor, has
vanished; after labor has become not only a means of life but life's
prime want; after the productive forces have also increased with the
all-round development of the individual, and all the springs of
cooperative wealth flow more abundantly -- only then can the narrow
horizon of bourgeois right be crossed in its entirety and society
inscribe on its banner:  From each according to his ability, to each
according to his needs!  [This was an old socialist slogan before
Marx used it here.] ...

"Quite apart from the analysis so far given, it was in general a
mistake to make a fuss about so-called *distribution* and put the
principal stress on it.

"Any distribution whatever of the means of consumption is only a
consequence of the distribution of the conditions of production
themselves.  The latter distribution, however, is a feature of the
mode of production itself.  The capitalist mode of production, for
example, rests on the fact that the material conditions of production
are in the hands of non-workers in the form of property in capital
and land, while the masses are only owners of the personal condition
of production, of labor power.  If the elements of production are so
distributed, then the present-day distribution of the means of
consumption results automatically.  If the material conditions of
production are the cooperative property of the workers themselves,
then there likewise results a distribution of the means of
consumption different from the present one.  Vulgar socialism has
taken over from the bourgeois economists the consideration and
treatment of distribution as independent of the mode of production
and hence the presentation of socialism as turning principally on
distribution.  After the real relation has long been made clear, why
retrogress again?" --Marx, *Gotha Critique*

Richard Carnes

josh@topaz.ARPA (J Storrs Hall) (04/02/85)

>Carnes quoting Marx:
"In a higher phase of communist society, after the enslaving
subordination of the individual to the division of labor, and
therewith also the antithesis between mental and physical labor, has
vanished; after labor has become not only a means of life but life's
prime want; after the productive forces have also increased with the
all-round development of the individual, and all the springs of
cooperative wealth flow more abundantly -- only then can the narrow
horizon of bourgeois right be crossed in its entirety and society
inscribe on its banner:  From each according to his ability, to each
according to his needs!  [This was an old socialist slogan before
Marx used it here.] ..."
>

I recall an earlier message in which I commented that division
of labor was "anathema to Marx", and Richard demurred.  I would
like to point out that this passage bolsters my position.  My 
understanding of Marx's position is that he thought the worker
"alienated" by the mode of production where the worker never 
designed and built a whole device, but endlessly repeated a
small part of the operation (which was thereby meaningless to him).

The passage makes it clear that "from each according to his
abilities, to each according to his needs" will not be valid
until the following things occur:

> the division of labor ... has vanished

> labor has become not only a means of life but life's prime want

> the productive forces have also increased with the
>  all-round development of the individual

> all the springs of cooperative wealth flow more abundantly

What kind of society would this be?  Each person would design and build
whole doofusses and never merely be a part of a process;  workers
would only do what they wanted to, or conversely, only want to do
"the right thing"; would be mental, physical, esthetic, and spiritual
giants in modern-day terms (they'd have to be to build whole skyscrapers
singlehandedly); and everything would work better with no coercion.

Those of you who have been paying attention for the past few months
will instantly recognise the standard Libertarian paradise, (Model 2
Mark 1).

--JoSH

tonyw@ubvax.UUCP (Tony Wuersch) (04/04/85)

> tonyw@ubvax.UUCP (Tony Wuersch) writes:
> >My state also wouldn't be so stupid as to believe that it can't ever know what
> >anyone wants.  One of its primary activities would be to keep in close touch
> >with what people want via polling, censuses, market analyses, and the
> >advice of popular organizations, all of which should be made public to help
> >people coordinate their own productive activities.  Using this information
> >and other expertise or referenda, the state would organize planning to aid
> >the achievement of social goals. 
> 
> Instead of going through all the overhead, how about making the
> state-owned facilities available to whoever wants to use them? Given a
> fully automated production system in an economy of abundance, any
> "social goals" that anyone feels needs to be achieved, they can do
> themselves. If nobody feels a goal is worth working on, then it has no
> business being a social goal anyway.
> (mike>) 

This possibility fails because of a tragedy of the commons overuse problem.
The state can't just give, give, give.  Giving private citizens the right
to rape the public authority is not what I would call a social goal.  And
few social goals have the unanimous consent of the population.  My state
wouldn't require unanimity to act within reasonable bounds; a majority
would do on most questions.  Decisions should be made at a public level
about what is important and what is moral, even though on most questions
individuals should have free choice, where there are many good ways to live
and be happy.  But questions like "Should some people be permitted to starve?"
are what a state is there to answer, "No!".  If solving moral problems
requires inflicting hardship on some (forcing illiterates to go to school,
forcing property owners to pay extra taxes), so be it.

> >I think it's a problem with
> >Libertaria, that most interesting moral questions become irrelevant and
> >nonsensical.  I don't believe that the evisceration of morality amounts
> >to progress.
> 
> But the nice thing about Libertaria is that it leaves all of the
> interesting (= unsolved) moral questions up to the citizens, as opposed
> to dictating an answer from above.

The ugly thing about Libertaria is that it leaves all of the important
moral questions up to the propertied individuals.  If Libertaria were
hit by a plague, the propertied individuals would live in quarantine
units and anyone unwilling to be their stooge could die.  If Libertaria had
a vast illiteracy rate, the propertied individuals would build schools for
themselves (and their stooges).

The facts of personal power are nakedly plain in Libertaria.  If I have lots
of property and I don't like you, I can make your life unrelievedly miserable.
No one should have such power; part of guaranteeing freedom should be to limit
power so that vindictive injury is made difficult and costly.

One can't grow to be generous and kind and gentle when one has to guard against
the most extreme threats to one's livelihood and dignity.  Only a state can
limit the power of individuals.  Only a state can guarantee to most citizens
the life space to be gentle and kind.

Tony Wuersch
{amd,amdcad}!cae780!ubvax!tonyw