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Post 0

Wednesday, April 1, 2009 - 8:59amSanction this postReply
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Recap:
In part one of this review, I talked about how, in The Communist Manifesto (CM), Marx and Engels laid the foundation of communism / socialism on top of a base of faulty definitions. It's wrong to define capitalists as owners and employers, rather than as entrepreneurial producers. It's a fallacy referred to as a: "definition by non-essentials."

It's also wrong to define wage earners or wage laborers as people who don't currently own a means of production, and also (indeed, and therefore) as people who are "reduced" or 'prostituted', if you will, into selling their labor power. For lack of the better term -- and I'm sure one exists (e.g., definition-by-nonessentials again)-- the fallacy employed by defining wage laborers as such can be referred to as: "existentio-centrism"; where someone's current existential situation is taken as a given without understanding the logical steps required in order to produce that existential situation.

If Marx and Engels understood the basic choices of human life on Earth -- i.e., (1) to develop a means of production, (2) to trade labor for goods produced, or (3) to starve to death -- then they would understand how it is that folks get into a position to trade their labor, and how that is actually very helpful, not harmful, to them.

This same type of limited perspective / understanding of the matter leads Marx and Engels to yearn for a primitive, communal, tribal existence for man but -- since no one is suggesting that we return to the mud and sweat and blood and disease and warfare that is so very common to tribes -- Marx and Engels simply wish for the products of industry while wishing away the very individualistic cause of all of those products in the first place. It's a fantasy that, if acted upon, could cause great harm to human life on Earth (much as would jumping off of a bridge, with the fantasy that you'll float in the air if you try it).

Part Two
On page 58-9 of CM it says:
************************
Society as a whole is more and more splitting up into two great hostile camps, into two great classes directly facing each other: bourgeoisie and proletariat.
************************

What's wrong, as before, is a that there is a faulty and one-sided perspective here. According to Marx and Engels, the historical change in society is from an early time of lesser splitting up into hostile camps, to a later time where there is more and more splitting up into hostile camps -- less splitting and hostility before, more now.

But this view fails to incorporate or allow for the really powerful counterexamples of history, such as when the tribal chieftain, Gengis Khan, killed over a million potential uprisers in Afghanistan around 1200AD. By the time that Marx and Engels wrote CM, nothing even remotely like that kind of splitting and hostility existed. Other historical counterexamples are Atilla, the chief of the Hun tribes; and the tribal chieftain Ahuitzotl of the Aztecs, who is known for sacrificing 10s of thousands of innocent people in order to bless the construction of a single temple.

The bottom line is that society hasn't moved from less and less splitting and hostility to more and more splitting and hostility. If anything, by the time Marx and Engels wrote CM, it had done the opposite.

To be continued ...

Reference:
Marx & Engels, The Communist Manifesto, Simon & Schuster Inc., ISBN: 0-671-67881-7, viewable cover


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Post 1

Wednesday, April 1, 2009 - 9:45amSanction this postReply
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Surprised ye not use the online version -
http://www.marxists.org/archive/marx/works/1848/communist-manifesto/

so we all could look it over as ye go thru it...

Post 2

Wednesday, April 1, 2009 - 2:30pmSanction this postReply
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What an excellent idea, Rev'!

That way, for all interested, it would be more like a book club or a facilitated, online mini-course. I won't charge tuition rates, and folks won't get college credit for this -- but it'd be more fun and potentially more engaging and insightful. I promise not to assign much homework, either. Certain (ahem, Atlas) points may be given for participation, however.

:-)

If you look at the first entry -- the one with the definitions and with the insinuation that tribal life was morally superior -- those quotes would be found at the bottom of the page for chapter one (see end-notes #1 and #2):

http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm

If you look at the second entry -- the one saying that society used to not be so much split up into such hostile groups, but has been becoming more and more split up into hostile groups -- that quote is found in the 4th full paragraph of the chapter (Bourgeois and Proletarians) under the same link above.

Ed

Post 3

Thursday, April 2, 2009 - 9:22amSanction this postReply
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Recap:
In part two above, I challenged the notion held by Marx and Engels that early, "tribal" society was less split up and hostile -- and that we've been becoming more split up and hostile -- using examples of tribal leaders (Khan, Attila, and, to a lesser extent, Ahuitzotl) who had split off any potential opposition, and who did so in a terribly hostile manner (e.g., genocide).

Nothing like that kind of genocidal splitting up was occurring when Marx and Engels wrote CM. It amounts to an evasion on their part (either that society wasn't bad before; or that it got worse and not better, as we moved away from the tribe).

Part Three:
Link: http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm

CM says:

Meantime the markets kept ever growing, the demand ever rising. Even manufacturer no longer sufficed. Thereupon, steam and machinery revolutionised industrial production. The place of manufacture was taken by the giant, Modern Industry; the place of the industrial middle class by industrial millionaires, the leaders of the whole industrial armies, the modern bourgeois.
The insinuation is that the industrial middle class (e.g., the Mom & Pop shops) are getting horribly displaced by the millionaires (e.g., the Wal-Marts) -- that they are getting reduced to selling their labor power to the really, really productive folks (instead of comfortably remaining in their relatively unproductive pursuits). This limited, partial, and one-sided view of the matter ignores the larger reality that highly-industrial folks -- by lowering production costs and increasing innovative discovery -- raise everyone's standard of living.
 
Rand called it a 'pyramid of ability', where productive and self-interested geniuses do the most good for the world. Henry Hazlitt, in Ch. 1 of Economics in One Lesson, talked about "the fallacy of overlooking secondary consequences" where only a single person or a sub-group of persons (e.g., "Proletarians") are narrowly viewed as having been harmed by overall economic policy or progress:

In addition to these endless pleadings of self-interest, there is a second main factor that spawns new economic fallacies every day. This is the persistent tendency of men to see only the immediate effects of a given policy, or its effects only on a special group, and to neglect to inquire what the long-run effects of that policy will be not only on that special group but on all groups. It is the fallacy of overlooking secondary consequences.
Imagine that your leg is broken and that it's getting infected. There is a Mom & Pop hospital on the corner, and there is a giant, more industrialized hospital -- with machinery, etc. -- in the next town. What do you do? When it comes to your immediate safety and health, you take the advanced care over the meager. In fact, at that moment, you are really, really grateful that highly-industrial folks built a modernized hospital like they did (you only wish they had done it in your town, so that you wouldn't have to travel in pain).
 
It follows that industrial millionaires are good to have, not bad to have (as Marx and Engels imply). It's only if you take a limited and partial view of the matter -- focusing on small groups and short time-frames -- that you can view progress as a bad thing.
(Edited by Ed Thompson on 4/02, 9:23am)


Post 4

Thursday, April 2, 2009 - 8:18pmSanction this postReply
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Tearing the communist manifesto a new one on an Objectivist forum. Not exactly shooting for the stars on this one, Ed. Entertaining analysis though.

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Post 5

Thursday, April 2, 2009 - 10:30pmSanction this postReply
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Ryan, I'm not sure what the "shooting for the stars" metaphor means in this context, but after watching Obama at the G20 today, and on the same day seeing congress pass a budget that can only be explained in Marxist terms, maybe we be well off to refresh ourselves on basic Marxism. We will be hearing a lot of these foul concepts larded in the bills and treaties and their justifications that will be coming down the road.


(Edited by Steve Wolfer on 4/02, 10:34pm)


Post 6

Friday, April 3, 2009 - 6:11amSanction this postReply
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I'm really just joking with Ed and giving a stealth compliment. Sort of a "preaching to the choir" reference.

Post 7

Friday, April 3, 2009 - 8:34amSanction this postReply
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Ryan,

I appreciate the Trojan Horse jib-jab, containing an embedded compliment.


Steve,

I appreciate the more-thoughtful moral defense.


While this critique is occurring on an Objectivist website, that is exactly the kind of place for this type of thing to first occur. I'm pulling red-hot metal out of the fire and banging on it in order to refine it into a long and sharp battle sword. When the thing is done, anyone may pick it up and use and re-use it against their intellectual enemies. But the thing has got to be forged first, before this mass armament can happen.

Visualize the expected value.

:-)

Ed


Post 8

Friday, April 3, 2009 - 9:12amSanction this postReply
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Recap:
In part three above, I mentioned how the lazy and unproductive among us can be narrowly and temporarily harmed by economic progress -- but only the lazy and unproductive, and only narrowly and temporarily. I showed how Marx and Engels insinuated that these folks were getting the short end of the stick, even in the long run (and how that is a wrong view).

Part Four:
Link: http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm

CM says:

The discovery of America, the rounding of the Cape, opened up fresh ground for the rising bourgeoisie. ...

Modern industry has established the world market, for which the discovery of America paved the way. ...

Each step in the development of the bourgeoisie was accompanied by a corresponding political advance of that class. ... The executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie.

The error in the above is the insinuation involving America; specifically that it is a nation of men, not laws. But it's not, or at least it wasn't (at the time Marx and Engels wrote CM). From the late 1700s to the middle 1800s (when CM was written), America was a nation of laws, not men. We had, and followed, an objective and transparent rule of law. It follows that the "executive" of the early 1800s American state was not "a committee for managing the common affairs of [the entrepreneurial producers]".

Marx and Engels were dead wrong about early America.

To be continued ...

(Edited by Ed Thompson on 4/03, 9:13am)


Post 9

Sunday, April 5, 2009 - 10:53amSanction this postReply
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Recap:
In part four above, I mentioned how Marx and Engels insinuated that early America was a nation of men, not laws. That early America was nothing but an aristocracy of pull, operating under a total disrespect for individual rights, and without any respect for transparent and objective rule of law. That, in short, is the precise meaning of Marx and Engel's words when they wrote:

The executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie.
And it couldn't be farther from the truth. The truth of the matter is that early America was as opposite to this notion as had ever been practiced in human history, and it was almost as opposite to this notion as is possible to man on Earth. In truth, you can't get much more opposite (i.e., contradictory) to Marx and Engel's political pull peddler premise -- as early America was. That was a huge evasion on their part -- likely an evasion performed by them because it didn't integrate with their obnoxious, or just noxious, plan-for-man.

Part Five:
Link: http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm

CM decries benevolence, self-interested valuers, and the moral option of money for man (as the alternative to dealing with others by force):

The bourgeoisie ... has pitilessly torn assunder the motley feudal ties that bound man to his "natural superiors," and has left remaining no other bond between man and man than naked self-interest and callous "cash payment." ... It has resolved personal worth into exchange value, and in place of the numberless indefeasible chartered freedoms, has set up that single, unconscionable freedom--Free Trade. ... for exploitation, ... it has substituted naked, shameless, direct, brutal exploitation.

...

The bourgeoisie has torn away from the family its sentimental veil, and has reduced the family relation to a mere money relation.


Reduced families to financial transactions?! If anyone else besides Marx had said this, they'd be laughed off of their soapbox and for a very good reason -- because it's totally absurd!

Yes, it's true, capitalism did away with motley feudal ties that had bonded man to man (in a form of semi-slavery) -- which is a very good thing by the way. But that doesn't mean that bonds between men became nothing but financial contracts! Marx and Engels don't seem to understand what it means to be human -- to love your family, to love your friends. They don't understand benevolence or value-trading.

Working to keep themselves stuck in a predatory (i.e., sub-human) mindset, they see nothing but exploitation around them. A man has a family? He's exploiting them. He wants to be head of the household and rule over them by brute force. A woman has a friend? That's because she's exploiting her friend, shamelessly.

Conclusion?
All of these conclusions follow, Marx and Engels tell us -- with no actual reasoning provided! How did Marx and Engels get to their theory that all humans, if given freedom, become shameless, brutal predators? Simply by looking into their own, deranged minds -- and then projecting their thoughts outward, onto all others. It is the psychology of a 3-year-old, communicated with the literary skill of an adult.

Off-hand remark
It's interesting that Marx and Engels say "naked self-interest" and "naked, ... exploitation" in an effort to discredit valuing and trade. Viktor Frankl -- an existentialist who also believed in such anti-man, anti-freedom, anti-value ideas -- also used the word "naked" in order to describe the angst-ful condition of what it is that a man does when he suddenly realizes he has "nothing to lose except his so ridiculously naked life." For these men (Marx and Frankl), the Emperor must have clothes!

:-)

To be continued ...

(Edited by Ed Thompson on 4/05, 10:55am)


Post 10

Tuesday, April 7, 2009 - 1:20pmSanction this postReply
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"reduced" to wage labor...yikes.

A] Effort made risk free gets a risk discounted but positive return, as guaranteed wages. Proletariat: laboring under a risk free, agreed upon/guaranteed fixed rate of Return On Investment of effort as wages. So many pulls of the pump handle as effort in exchange for so much value. If a member of the Bourgeoisie accepts the pulls on the pump handle without coughing up the guaranteed rate of return on investment of effort as wages, the virtuous Prole has a cause for action, he's been stiffed. Stop pulling on the pump handle, stop getting wages.

B] Effort made at risk gets an indeterminate rate of return, both in magnitude and sign. Bourgeoisie: laboring under an at-risk, non guaranteed rate of Return on Investment of effort. No guaranteed rate of return on investment of effort. Could be high, could be low, could be negative.

The real distinction shouldn't be about the 'capital', it is about the risk model under which effort is made.

Those are two fundamentally different models of participation in our economies. Ultimately, no A] without B], though there can be B] without A]. Even government participation is ultimately based on taxation/borrowing from (A] + B]) excess value.

Who guarantees A]'s rate of return as wages? Only B].

Who guarantees B]'s rate of return? Nobody.

Who does the government tax/borrow from? A] + B] plus external/foreign investors. Without B]. no A].

Without B], no (A] + B]) excess value for government to tax/borrow from.

External/foreign models might employ force, slavery. In theory, we don't. At least, not until we insist that B] continue to participate in our economies at a rate of return that pleases the schadenfreude sensibilities of A].

Our current populist attempts to do so are going to accomplish mostly one thing: killing the heart of that which drives our economies. This can -- and is -- temporarily being masked by value forcefully carved from one set of beasts and used to subsidize some/few others. In the long run, the net effect of this carcass carving/parasitism is a herd of dead beasts, our once thriving economies.

The religion of Social Scientology has totally permeated our state, totally run it over top to bottom. Obama is the latest acolyte, preaching his heart out. Maybe really bad ideas, driven by the madness of crowds, just need to run their course.

While they do...duck.

regards,
Fred

Post 11

Friday, April 17, 2009 - 10:12amSanction this postReply
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[comment: Good points, Fred]

Recap:
In part five above, I described how Marx and Engels used a childish mindset to project their own petty and tyrannical thoughts, feelings, and schemes onto all others -- effectively characterizing all humans as black-hearted demons (with a deep urge to shamelessly exploit others). It is a 'man-is-Satan' mindset which precludes the idea of real human joy, love, and benevolence. On this view, only equalized suffering would seem appropriate -- but it is a wrong view of man, so that is a non sequitor.

Part Six:
Link: http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm

CM talks about some of the good that has come from economic freedom:

It has accomplished wonders far surpassing Egyptian pyramids, Roman aqueducts, and Gothic cathedrals; it has conducted expeditions that put in the shade all former Exoduses of nations and crusades.
However, CM goes on to say free competition is a double-edged sword, damning us with a new "everlasting uncertainty and agitation" which wasn't there when we were conserving the "old modes of production":

The bourgeoisie cannot exist without constantly revolutionising the instruments of production ... . Conservation of the old modes of production in unaltered form, was, on the contrary, the first condition of existence for all earlier industrial classes. Constant revolutionising of production, uninterrupted disturbance of all social conditions, everlasting uncertainty and agitation distinguish the bourgeois epoch from all earlier ones.
What is Marx' and Engels' take-away message here? That free competition is unsettling to some folks (like to Marx and Engels, for instance), and that the feelings of those thin-skinned folks who are unsettled by free competition, are enough reason to put the rest of us into the slavery of communism (a non-free enterprise).

For a visual of this contrast, imagine the certainty of monotonous toiling behind an ox-drawn plow in order to get your food, as opposed to operating a farm tractor for less than half the time -- and then having the uncertainty and agitation of wondering what to do with your free time. It's this increased standard-of-living (and leisure-time) which Marx and Engels are ready to jettison, for a mere childish yearning for stability. But even this stability is false, because conserving old modes of production keeps us more dependent on the environment (as depicted in the two examples below).

In short, they want the emotional security of "knowing your place" (e.g. conserving old modes of production) over the possibility of human advancement. Interestingly, in contrast to the advancement of capitalism, life before had been real bleak and riddled with pain, hunger, and disaster. It's nothing short of evasion on the part of Marx and Engels to write about the "perils" of free competition against the background of historical suffering which occurred precisely because humans hadn't economically advanced enough to prevent it.

Two examples are worthy of mention, as they both took place before CM got published (so Marx and Engels had to know about them, when they wrote CM). In their book, The Pessimist's Guide to History (Quill, 2000), Flexner and Flexner write about two famines, an Egyptian famine and the Irish Potato Famine. They are a snapshot of what human life was like before the Industrial Revolution reached those areas:

[p 39] ... the annual summer flooding of the lower Nile in Egypt was much less than usual. For Egyptian farmers, who depended heavily on the floods to replenish topsoil and to provide much-needed water, this resulted in parched fields and ruined crops.

As the year 1200 wore on, famine set in and hunger began to drive people to more and more desperate measures. They started eating dogs, then carrion, and then each other. Some even ate dung. As the death toll mounted--one inheritance was passed on to forty heirs in one month--people found themselves with an excruciating choice: Die of starvation, or kill.

Young children were murdered, roasted, and eaten--some by marauders who kidnapped them, and others by their own parents. Though an offense punishable by death in Egypt, cannibalism soon became the main food source. Eyewitnesses described caldrons with childrens' heads floating in them.


... and ...

[p 120-1] Nearly half of Ireland's eight million people were small tenant farmers who depended on the potato crop for their food. ...

Millions went hungry as the blight devastated the 1845 crop. In 1846 hopes for a good harvest that would save the people suddenly ended when the plants blackened and withered to the ground overnight. The smell of rotting potatoes spread despair throughout Ireland. Women sobbed in the fields as they realized another year of hunger lay before them. ...

... Millions wasted away from hunger and disease. ... Gaunt, starving women wandered through the streets, begging for food. Families with nothing else to eat gnawed on weeds. Landlords evicted thousands of starving families who could not afford to pay their rent. ...
...
The nation was so ravaged by hunger, disease, and cold that only about one-eighth of the usual crop was sown in 1847. The harvest of 1848 [note: this is when CM came out] again was disastrous. Weakened by starvation, the people succumbed to epidemics of cholera and typhus. One witness described Ireland as "one mass of famine, disease, and death." Emaciated women wandered through the streets, carrying corpses of children in their arms, begging for the money to buy a coffin.

So, actually, the security that Marx and Engels seek -- the "security of the womb" which is, indeed, the final aim and goal of CM -- is a false and deadly security. It is not a far stretch of logic to say that Marx and Engels are would-be baby-killers / baby-cannibals. They wrote CM with a blind eye to this history. What they write about and want, to be clear, is a return to conditions of a false sense of security which history has proven to be not just deadly, but genocidal.

To be continued ...

(Edited by Ed Thompson on 4/17, 9:32pm)


Post 12

Friday, April 17, 2009 - 10:34amSanction this postReply
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"For a visual of this contrast, imagine the certainty of monotonous toiling behind an ox-drawn plow in order to get your food, as opposed to operating a farm tractor for less than half the time -- and then having the uncertainty and agitation of wondering what to do with your free time." ..which gives rise to the old joke:

CAPITALIST FARMER: "My neighbor has a new tractor, I can't compete without one. Please, gov't bureacrats, police the markets so that I can borrow money and buy my own tractor."

SOCIALIST FARMER: "My neighbor has a new mule, I can't compete without one. Please, government bureacrats, tax my neighbor, and make him buy me one as well."

COMMUNIST FARMER: "My neighbor has a new ox, I can't compete without one. Please, government bureacrats, kill it, and I'll help eat it."



Post 13

Friday, April 17, 2009 - 9:10pmSanction this postReply
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Ed, this is a great take-down of Marxism, exposing how infantile it is.  Good job so far.

Post 14

Friday, April 17, 2009 - 9:34pmSanction this postReply
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Thanks, Kurt.

It's a rough draft, really -- which I may turn into a polished article ...


Post 15

Sunday, April 19, 2009 - 1:37pmSanction this postReply
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Recap:
In part six above, I talked about how Marx and Engels are willing to kill and eat babies. Actually, I showed how they would prefer to do away with the economic freedom which afforded man -- for the first time in history -- the wealth required in order to prevent us from ever having to kill and eat our young again (as was done during the year 1200 famine in Egypt; before capitalism had been discovered and utilized).

So Marx and Engels are only indirectly willing to kill babies and eat them -- as a consequence of their own petty, emotional yearnings for the security and stability of a careless child. They would be willing to have millions and millions die in order to gain a measure of internal comfort. This childish and malignant narcissism on their part stems from not understanding the value of other human beings.

Part Seven:
Link: http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm

CM says:
The bourgeoisie keeps more and more doing away with the scattered state of the population, of the means of production, and of property. It has agglomerated population, centralised the means of production, and has concentrated property in a few hands.
But is that the case? Marx and Engels prided themselves on being scrupulous historians. Is their account of history accurate? In order for their account of history to be accurate, then there would have to be an historical shift showing increasingly centralized means of production (rather than having more means of production than before, spread out among more producers than before) and increasingly concentrated property (rather than having more property than before, spread out among more property owners than before).

What's required to prove centralization and concentration of the means of production and, specifically, of property is an increase in poverty somewhere. The reason that poverty has got to increase in order to prove that there is centralization and concentration, is because those terms require that property moves away from someone (in order to get centralized or concentrated elsewhere) -- because that's what centralization and concentration mean.

The critical question to ask is:
When and where (historically) capitalism increased, did poverty -- did any poverty -- also increase? It will be noted that global GDP per capita has increased since the mid-1700s, along with a worldwide, aggregate shift toward more economic freedom. It turns out then, that the answer to the critical question is: No.

Whereever and whenever capitalism increased, poverty decreased. There was no aggregate centralization and concentration of property -- producing poverty somewhere -- while or during increases in economic freedom. In his book, The Skeptical Environmentalist (Cambridge, 2001), Bjorn Lomborg (p 71) writes that a 1997 UN report on poverty and inequality even said:
In the past 50 years poverty has fallen more than in the previous 500.
Apparently (p 71), in 1998, the World Bank wrote about a two-thirds reduction in poverty in East Asia in just 20 years!:
... in East Asia: from six out of ten living on under a $1 a day in the mid-1970s, to two out of ten in the mid-1990s.
Bjorn Lomborg also writes (p 72):
Thus, over the past 50 years, some 3.4 billion more people have become not-poor.
However, Lomborg (p 72) talks about the Kuznets curve, where economic development temporarily increases economic inequality. Even still, economic inequality isn't enough to prove Marx' and Engel's contention that property has been centralized or concentrated, because centralization and concentration require taking property from somewhere and moving it elsewhere -- and inequality is something that might stem from the creation of wealth (where property was never taken away from anybody, anywhere).

In fact, the temporary inequality of the Kuznets curve is explainable merely by folks moving out of their farms -- where they are all, essentially, economically equal -- into the city (where some folks create tons of new wealth, increasing inequality without necessarily concentrating any pre-existing property at all). The isolated, rural farmers had what they always had. The city-dwellers created new wealth for themselves (without harming the farmers in any way, whatsoever).

The nail-in-the-coffin is when you look at the 1999 World Bank data on the ratio of the richest and poorest 30% in the world, from 1960 to 1997. In 1960, the richest 30% of the world had 10 times the wealth of the poorest 30% of the world. In 1997, the richest 30% of the world only had 8 times the wealth of the poorest 30% of the world. That's a 20% drop in wealth inequality -- at a time when aggregate economic freedom was increasing (and socialism decreasing), worldwide.

In an indirect reference to how the rich don't get rich by making the poor poorer -- but even the poor get richer ("a rising tide lifts all boats"), Lomborg (p 75) writes:
In 1800 the distribution of income in the UK was probably more skewed than it is today. Back then the poorest 20 percent were at most making 300 present-day pounds a year, compared to the 20 percent richest's 1650 [pounds]. Today the poor make about 5,500 [pounds] and the rich 30,000 [pounds]. Now the ratio of rich to poor has declined slightly, and economists would say that inequality has diminished. However, using the Worldwatch argument, inequality has increased more than 18-fold from 1,350 [pounds] to 24,500 [pounds]. Does this make sense? Would we really believe that the poor are 18 times worse off today?
In the above, the poor in the UK went from having an income of 300 pounds in 1800 to an income of 5,500 pounds in 2000-2001 -- an income that is roughly 18 times greater within about 200 years. That's an 18-fold increase in the purchasing power (i.e., the "real wages") of the poor in the UK, in 200 years.

For a visual, imagine a poor bloke in the UK in 1800. He's eccentric and only buys food, shelter, and art -- splitting his salary into 3 equal parts to spend on each, equally. He needs the 100-pounds a year for food, and the 100-pounds a year for shelter, but what he really wants -- what he really enjoys in his life -- is his art collection (which he spends the last 100-pounds on). If he were frozen and re-thawed in the year 2000, that same man -- without a change in status -- would be able to afford 16 times more art. According to him (i.e., according to the poor, themselves) he would be 16 times better off.

 Lomborg (p 77) concludes:

More than ... 90 percent of the entire world ... have never been as rich as they are now.
The upshot is that Marx and Engels were not just wrong, but dead wrong -- stating the precise opposite of the reality of the situation. As economic freedom increases, overall poverty always decreases. For Marx and Engels to be on the right track, however, aggregate poverty -- poverty somewhere -- would have to increase along with economic freedom. But that's not true.

To be continued ...

(Edited by Ed Thompson on 4/19, 2:05pm)


Post 16

Sunday, May 24, 2009 - 7:20amSanction this postReply
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In the recap above, I said this:

They would be willing to have millions and millions die in order to gain a measure of internal comfort. This childish and malignant narcissism on their part stems from not understanding the value of other human beings.

But after re-reading it, I realize that it's wrong -- actually, that it's incomplete.

A complete understanding of Marx and Engels includes not just the fact that they see other human beings as sacrificial cattle. It's that they see their own lives in that superficial way, too. What they don't understand is not just the value of others, but the value of living a truly human life -- i.e., what Aristotle called the "Good Life" (or what Rand called "Objectivism"). It's where their "materialism" shows its ugly head.

Not understanding what it means to be human, they wrote a manifesto of unchecked premises and whimsical, feel-good, collectivist-orgy conclusions. Like a toddler who doesn't yet know or understand what or how to be, they focus on what others do and cry and wail until they get others to do the things that they "like" -- for whatever, whimsical reason.

Ed

(Edited by Ed Thompson on 5/24, 7:44am)


Post 17

Sunday, May 24, 2009 - 8:13amSanction this postReply
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Recap:
In part seven above, I demonstrated -- with empirical data -- that economic freedom (capitalism) doesn't create poverty anywhere, as Marx and Engels predicted or believed that it would or does. Reasoning from this wrong premise that capitalism creates poverty (somewhere), Marx and Engels wrote a manifesto to try to fix this imagined (unreal) problem.

Fixing imagined problems -- rather than real ones -- rarely does any good and most often causes harm (if even only the harm of tied-up time, energy, talent, and resources in sundry unproductive and non-beneficial endeavors). The Communist Manifesto, and any human action implied by it, is just that -- a waste, if not a complete and separate disaster-in-the-making.

Part Eight:
Link: http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm

CM says:

Subjection of Nature’s forces to man, machinery, application of chemistry to industry and agriculture, steam-navigation, railways, electric telegraphs, clearing of whole continents for cultivation, canalisation of rivers, whole populations conjured out of the ground — what earlier century had even a presentiment that such productive forces slumbered in the lap of social labour?
In this quote, Marx and Engels imagine that steam engines and electric telegraphs would have come about much earlier -- and come about on their own, ex nihilo -- if we had just performed more "social labour" earlier. Not understanding that such things are actually the products of free and intelligent minds, they believe more mindless, grunt-work was all that would be needed to bring them about.

This is akin to the wrong philosopher who says that, given enough time, monkeys banging on keyboards would type out Shakespeare's Hamlet. Even if monkeys, eventually, typed out Hamlet -- they wouldn't recognize it as such (and would continue typing until stopped by a more intelligent creature who understands value). So, the monkey analogy breaks down: While in it you might, eventually, get the result of the typing out of "a" Hamlet -- you don't get the recognition of a typing out of "Hamlet."

And its very recognition is the source of its value (so you don't ever actually get the value of Hamlet if you stay true to the monkey analogy).

CM says:


Modern bourgeois society, with its relations of production, of exchange and of property, a society that has conjured up such gigantic means of production and of exchange, is like the sorcerer who is no longer able to control the powers of the nether world whom he has called up by his spells.
What Marx and Engels are trying to say is that capitalism will eventually destroy itself. It's revealing that they use imaginative language to convey this. What is precisely wrong with this quote of theirs is that they are imagining capitalism without the perspective and knowledge of the necessity and value of individual rights.

In a world without individual rights, capitalism wouldn't even be able to get enough power to grow, let alone to then kill itself -- because capitalism would be useless without rights. And rights are the very thing that prevent capitalism from destroying itself by its "gigantic means of production and of exchange."

So, holding this wrong view of capitalism (where it is imagined as existing without rights), Marx and Engels go on to further imagine -- they imagine on top of their imaginings -- that capitalism will destroy itself.

To be continued ...

(Edited by Ed Thompson on 5/24, 8:57am)


Post 18

Sunday, May 24, 2009 - 9:51amSanction this postReply
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Recap:
In part eight above, I showed that steam engines and electric telegraphs don't come about on their own, ex nihilo, along with the mindless contraction of muscles -- akin to the "bad analogy" fallacy of the monkeys banging on keyboards. I showed that Marx and Engels believed that these thought-requiring things get created merely from mindless, muscular effort.

Also, I began to show how it's wrong to view capitalism without the rights required to propagate and protect it as a sustainable, social system. In Part Nine (below), I will more fully elaborate on this point with a further and deeper review of what Marx and Engels wrote on this issue in the first chapter of The Communist Manifesto.

Part Nine:
Link: http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm

CM says:
... the commercial crises that by their periodical return put the existence of the entire bourgeois society on its trial, each time more threateningly. In these crises, a great part not only of the existing products, but also of the previously created productive forces, are periodically destroyed. In these crises, there breaks out an epidemic that, in all earlier epochs, would have seemed an absurdity — the epidemic of over-production. Society suddenly finds itself put back into a state of momentary barbarism; it appears as if a famine, a universal war of devastation, had cut off the supply of every means of subsistence; industry and commerce seem to be destroyed; and why? Because there is too much civilisation, too much means of subsistence, too much industry, too much commerce. The productive forces at the disposal of society no longer tend to further the development of the conditions of bourgeois property; on the contrary, they have become too powerful for these conditions, by which they are fettered, and so soon as they overcome these fetters, they bring disorder into the whole of bourgeois society, endanger the existence of bourgeois property. The conditions of bourgeois society are too narrow to comprise the wealth created by them. And how does the bourgeoisie get over these crises? On the one hand by enforced destruction of a mass of productive forces; on the other, by the conquest of new markets, and by the more thorough exploitation of the old ones. That is to say, by paving the way for more extensive and more destructive crises, and by diminishing the means whereby crises are prevented.

The weapons with which the bourgeoisie felled feudalism to the ground are now turned against the bourgeoisie itself.

But not only has the bourgeoisie forged the weapons that bring death to itself; it has also called into existence the men who are to wield those weapons — the modern working class — the proletarians.


What Marx and Engels are describing is what the Austrian economist, Schumpeter, had referred to as creative destruction -- whereby new, industrious innovation violently supplants old technologies and the (sometimes large) market share that these older technologies had afforded to earlier entrepreneurs.

What Marx and Engels believed to be the upshot of this is, however, wrong. This gets real clear upon a focus on how Marx and Engels compared and contrasted this creative destruction with the destruction of feudalism (where a king allowed some feudal lords to keep sections of fertile land, and then serfs had to work the fertile land in order to sustain themselves):

Marx and Engels think of the two situations as similar. They think that the reasons that capitalism destroyed feudalism are the very same reasons that it will, eventually, destroy itself. But, in actuality, the two situations are different. The reasons that capitalism destroyed feudalism stem from the isolated pockets of productive power which capitalism afforded man.

Under feudalism, it didn't matter if you had good ideas about wealth creation. If you were a working serf and came up with an idea -- like a steam-driven tractor, or something -- then the feudal lord that you worked for would've taken it from you and put you back to work in his fields. In this way, feudalism killed all incentive for economic progress. However, once you unleashed the serf from the lord -- once you say that the serf owns what is that he creates -- then you have a system of trade-to-mutual benefit, a rights-based system known as capitalism.

And once property rights get recognized like this, the power of any lord over any serf gets progressively diminished -- as folks learn that they don't need to hand-plow land all day just in order to put food on the table. The serfs learn that they can create new wealth and that it won't get confiscated by once-powerful lords (powerful solely because of their coercive monopoly on existing, fertile land).

So capitalism felled feudalism because it was a paradigm-shift. A new idea about property rights of individuals. The reason that capitalism can't destroy itself by the same method then, is because the same method -- a paradigm-shift involving an introduction of rights -- no longer applies. Starting with a social system (capitalism) that recognizes individual rights, there is no longer a "rights-deficiency" (as in feudalism) to be overcome.

Each "destruction" of some old means of production which, themselves, stemmed from the system of capitalism then, doesn't increase the possibility of a complete system breakdown (as in feudalism) but, instead, forges a newer and stronger avenue whereby individuals can lift themselves up on what Rand referred to as a pyramid of ability.

To be continued ...

(Edited by Ed Thompson on 5/24, 9:57am)


Post 19

Saturday, July 4, 2009 - 12:15pmSanction this postReply
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Recap:
In part nine above, I showed that the reason that capitalism felled feudalism wasn't because of the saltatory progress which comes from "creative destruction," but instead it was because there was a decisive lack of all such creative destruction (a lack of progress in general) under feudalism. This lack stemmed from a deficiency in the system of feudalism: a deficiency of individual rights. Not respecting the rights of potential entrepreneurs, feudalism was going nowhere fast. For who would want to create new wealth if it is only to be stolen by feudal lords?

Capitalism didn't really kill feudalism then, as feudalism was already a "dead" system. Capitalism was the simple offer of a living and breathing substitute for the rotting economic corpse of feudalism. An idea who's time had already come, rather than an idea that had to fight vying alternatives (under the false assumption that feudalism was a viable alternative). In the final part of my review (below), I will show how the Labor Theory of Value (or Exploitation Theory) -- as put forth by Marx and Engels -- is dead wrong, too.

Part Ten (final part):
Link: http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm

CM says:
In proportion as the bourgeoisie, i.e., capital, is developed, in the same proportion is the proletariat, the modern working class, developed a class of labourers, who live only so long as they find work, and who find work only so long as their labour increases capital. These labourers, who must sell themselves piecemeal, are a commodity, like every other article of commerce, and are consequently exposed to all the vicissitudes of competition, to all the fluctuations of the market.

Owing to the extensive use of machinery, and to the division of labour, the work of the proletarians has lost all individual character, and, consequently, all charm for the workman. He becomes an appendage of the machine, and it is only the most simple, most monotonous, and most easily acquired knack, that is required of him. Hence, the cost of production of a workman is restricted, almost entirely, to the means of subsistence that he requires for maintenance, and for the propagation of his race. But the price of a commodity, and therefore also of labour, is equal to its cost of production. In proportion, therefore, as the repulsiveness of the work increases, the wage decreases. Nay more, in proportion as the use of machinery and division of labour increases, in the same proportion the burden of toil also increases, whether by prolongation of the working hours, by the increase of the work exacted in a given time or by increased speed of machinery, etc.











Let's take this section in parts:

In proportion as the bourgeoisie, i.e., capital, is developed, in the same proportion is the proletariat, the modern working class, developed a class of labourers, who live only so long as they find work, and who find work only so long as their labour increases capital.

Marx and Engels are saying that capitalism created a situation where there's a "class" of folks who suddenly have to find work in order to live (who have to produce in order to survive). The insinuation is that capitalism is bad for this "class" of people -- that it has made life worse for them. But is that an accurate picture of reality? Did capitalism create this aspect of reality, or merely inherit it?

Sober analysis of the history of man reveals that he has always had to work in order to survive. Capitalism did not bring forth a new dependency or vulnerability (as Marx and Engels imply), it diminished an old one. Under capitalism, the amount of human labor required to sustain human life has diminished considerably (see below) -- it has not increased. Marx and Engels were dead wrong on that. And, being dead wrong on that, their vilification of capitalism is without merit.

These labourers, who must sell themselves piecemeal, are a commodity, like every other article of commerce, and are consequently exposed to all the vicissitudes of competition, to all the fluctuations of the market.

Here Marx and Engels equate workers with (traded) objects. This is an (unjust) equivocation. There is an element of trade even in finding work, but workers are not "like every other article of commerce." What's different about workers is that they exercise their will or choice -- they, themselves, can invent new sources of income, or merely switch employers, in order to better their position on this planet. You will not ever notice a barrel of oil or a bushel of wheat doing that.

What's more is that it is capitalism itself which multiplied these choices for man. In the very early days, man's choices were simpler and much more grim:

Hunt and gather (or farm) -- or starve and die.

It is ironic that the very underpinning of the thinking errors of Marx and Engels stems from a child-like lack of historical perspective -- Marx and Engels considering themselves such great historians (indeed, justifying their system based on nothing other than how history itself unfolds!). Also, this notion that capitalism exposes workers to "vicissitudes" (of competition) is, at some level, a dishonest idea. The wrong-headed insinuation is that man's life was more free of vicissitudes before capitalism took hold in a few parts of the world, and that capitalism increases the net amount of vicissitude in man's life. Take catastrophies.

In his book, The Skeptical Environmentalist, Bjorn Lomborg shows (on page 85) how the annual death rate from catastrophies decreased by over 80%, from over 25 per 100,000 people in the early 1900s to under 5 per 100,000 people in the late 1900s. That's less than one-fifth as many people who die in "natural" vicissitudes than before. What's more is that, while data is sparse, logical extrapolation of the death rate (from catastrophe) in times or regions that are largely pre-industrial results in even higher rates of death by natural disasters:

--millions dead (1/3 of the world population) in the bubonic plague of the mid-1300s
--millions dead in a drought (famine) in India in the late 1700s
--millions dead in a drought (famine) in China in the late 1800s
--100s of thousands dead in a 1920 earthquake in China
--100s of thousands dead in a 1970 cyclone in East Pakistan
--100s of thousands dead in a 1976 earthquake in China
--100s of thousands dead in the 2004 tsunami of Indonesia and Thailand

Clearly, capitalism -- that thing that each of the above examples lacks -- is not a net source of, but a solution to, vicissitude in human life.

But the price of a commodity, and therefore also of labour, is equal to its cost of production. In proportion, therefore, as the repulsiveness of the work increases, the wage decreases. Nay more, in proportion as the use of machinery and division of labour increases, in the same proportion the burden of toil also increases, whether by prolongation of the working hours, by the increase of the work exacted in a given time or by increased speed of machinery, etc.

This is the Marxian theory of exploitation -- i.e., that both divided labor and machines work to denigrate human employment down to the most menial (or most repulsive) of tasks, and that this results, in the end, in permanent wage reductions for workers, who end up working longer and harder for less. But is that an accurate picture of reality?

An alternative view of reality is exactly the opposite -- that divided labor and machines have worked to progress human employment beyond the most menial (or most repulsive) of tasks, and that this has resulted, in the end, in permanent wage increases for workers, who end up working less for more. Evidence for this second view -- which directly contradicts the Marxian view -- abounds. On page 79 of The Skeptical Environmentalist, Lomborg mentions the contrast of home heating as it used to be (before machines and divided labor) and home heating as it is, now:

Today, we have stopped heating our homes with coal, and instead use gas- or oil-fired central heating or district heating. We no longer have to clean the coal dust in our carpets, furniture, curtains and bedclothes, or have to shovel six tons of coal into the furnace each heating season -- work which we spent on average six hours performing each week.

That is a counter-example to the Marxian view. Here, when we used more machines and divided labor (to heat homes with gas or fuel oil), we worked less to get more -- by an extra six hours a week (plus lost time due to cleaning coal dust). The divided labor and new machines (gas or oil systems) resulted in us working less to get a better result. Another example is the washing machine. Lomborg continues:

The historical economist, Stanley Lebergott wrote only semi-jokingly: "From 1620 to 1920 the American washing machine was a housewife." In 1900 a housewife spent seven hours a week laundering, carrying 200 gallons of water into the house and using a scrub board. In 1985 she and her husband together spent less than three hours doing the laundry.

That's another four hours a week in freed-up time for humans, time which could be spent on entrepreneurial endeavors or job-hunting, or even on things that don't make us more materially rich (if we prefer). And examples of this same dynamic are endless. One wonders if humans would even have to work 15 hours a week to live like kings -- if capitalism were allowed to proceed unfettered by Marxism or the progress-hampering collectivism that it entails. One of the most damning examples for the Marxian view (that workers' wages barely support subsistence) relates to this quote:

He becomes an appendage of the machine, and it is only the most simple, most monotonous, and most easily acquired knack, that is required of him. Hence, the cost of production of a workman is restricted, almost entirely, to the means of subsistence that he requires for maintenance, and for the propagation of his race.

But, in actuality, the maintenance of subsistence has gotten many times easier. A summary of notes (from The Skeptical Environmentalist, p 79-80) proves this:

--food prices (at least partly due to the machines of commercial farming) have dropped two-thirds since 1957
--in 1900 Americans spent 36% of their income on food and necessities; but in 1997 they only spent 11% on those same things
--we all have running water now, but only a fourth of us did in 1900
--the living space available per person has more than doubled

In conclusion, new divisions of labor and/or new machines have consistently freed up humans to take part in either entrepreneurial activities or more satisfying tasks in general. The capitalist notion of the division of labor and the innovation of inventing productive machines are actually the solution to the historical toil of poverty, not the cause of it.

Marx and Engels essentially just looked at this 'anti-dote' (machines and divided labor) for much of our pains, just flat-out, by fiat, called it 'poison' (withing evidential reasoning), and offered more of their own brand of poison as the anti-dote. They claimed a good thing was bad in order to make viable, by unjust comparison, their mere gut feelings about the world. It is one of the worst cases of intellectual dishonesty or evasion in the whole history of literature.

The End

(Edited by Ed Thompson on 7/04, 6:10pm)


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