Tag Archives: Anarcho-capitalism

Exploitation cannot be obscured in time

In my recent travels in the Anarchist reddit, more and more I stumble on Anarcho-Capitalists who insist on pointing to articles in their classic haven, Mises.org. Apparently, the place to be is you’re a progressive capitalist. Due to the quantity of such links I obviously cannot read all of them (indeed I still have quite a lot of Marxist material to go through) but now and then I’m pointed to an article that just challenges.

So I have decided to start a little series which will contain all the refutations I write on mises.org articles. I hope to eventually have a nice collection of posts I can instantly post as counters to such links.

Today I was pointed to a rebutal from some guy called Hans-Hermann Hoppe on why the Marxian concept of exploitation is wrong and how the consequences of movements based on marxism are also wrong and disastrous. I will not attempt to refute the whole analysis but rather I will try to attack the central small core concept it is all based.

After a few paragraphs providing a short introduction of “the hard-core of the Marxist belief system”, and then a brief explanation of the Marxian exploitation theory, Hoppe finally goes to the offensive

Now what is wrong with this analysis? The answer becomes obvious once it is asked why the laborer would possibly agree to such a deal. He agrees because his wage-payment represents present goods, while his own labor services represent only future goods, and he values present goods more highly. After all, he could also decide not to sell his labor services to the capitalist and then reap the full value of his output himself. But this would of course imply that he would have to wait longer for any consumption goods to become available to him. In selling his labor services, he demonstrates that he prefers a smaller amount of consumption goods now, over a possibly larger one at some future date.

On the other hand, why would the capitalist want to strike a deal with the laborer? Why would he want to advance present goods — that is, present money — to the laborer in exchange for services that bear fruit only later? Obviously he would not want to pay out for instance $100 now, if he were to receive the same amount in one year’s time. In that case, why not simply hold on to it one year, and receive the extra benefit of having actual command over it during the entire time? Instead, he must expect to receive a larger sum than $100 in the future, in order to give up $100 now in the form of wages paid to the laborer. He must expect to be able to earn a profit — or more correctly, an interest return.

Now this immediately falls afoul of an assumption: That the worker does indeed value present goods more than future goods. This however is begging the question: “Why is the worker valuing present goods more?”. The answer is of course need. The only reason a person would prefer to have less money now rather than more later (and that “later” can be as short as 1 hour from now) is because they have an urgent need that they cannot ignore until later. That urgent need can only ever be food or shelter.

If the worker has the capability to feed and shelter himself until he could reap the future value of his product, he would certainly do so. Indeed, when people have enough money to survive, very often they invest their money as well or start their own business. The problem however is that not everyone has this luxury. The vast majority of humans can never leave the working class and move to the capitalist or petty-bourgeois because they start at the condition where their basic needs are not fulfilled and because they do not own any means of production.

This is not an voluntary choice. This is a choice based on passive coercion. It is beneficial for the Capitalist who can select a low wage for the starving worker, but it is not beneficial for the worker who might only get a present value enough to simply sustain himself until the next day.

But lets look at this another way. Hoppe claims that a worker benefits because he receives present goods which he values more, in return to losing future value goods. There is another function in society which does the same however: Credit.

With credit, I can receive current goods in return of losing goods in the future. The difference of goods I lose is not too large usually but is enough to put me back a bit, making me poorer in the long run. True, I only get credit when I have such a need where current goods are more valuable in utility.

Now consider a hypothetical human who enters adulthood without any wealth. The only way for him to survive to the next day is to take 10$ credit for the food he will eat and the place he will live. That does not give him any real value other than his continued existence to the next day, where he will be actively poorer by the 2$ interest he was charged. So once again he has to get 10$ credit for the next day and so on, yet becoming more indebted as his debt increases by about 2$ per day.

Notice that I said, that this is the only way he can survive as well. That means that he has no choice but to fall more and more in debt daily until eventually it’s time to pay the piper. This situation should immediately strike us as wrong. Is it fair that our sample human’s only choice is to put himself more and more into debt without a way out? Of course not.

Lets take this example and apply to a worker’s position. The worker comes out to the society and has no other way to survive but to get a job from a Capitalist. The capitalist will, as Hoppe claims, provide him with 10$ upfront in order to create for him a widget he sells for 12$. The worker uses his money to survive until the next day, where he again has to make another widget, enriching the capitalist by another 2$, and so on.

What is the difference between our hypothetical human and the worker? In both cases, they only get to survive from day to day, while the creditor or capitalists becomes richer, without doing anything, by 2$ per day. The only difference between them is that the workers settles his debt daily by producing a 12$ widget and giving it to the capitalist, while the hypothetical human accumulates debt. But the end result is the same. At the end of 10 days, the human will have to come up with 20$ (the creditor does not care how. Perhaps sell his organs) to pay back. The end result is a 20$ richer debtor/capitalist.

But like the situation we put our hypothetical human was unfair, so is the situation we are putting workers every day. The scenarios were simple but the basic premises remain no matter the wage. Time-shifted or not, Capitalism is exploiting the worker by putting them in the unfair situation where they have to take the “credit” or starve. This “mutually beneficial” relationship assures that the worker will always remain poor while the Capitalist will enrich himself without doing anything. Indeed, this continued exploitation, will only ensure the Capitalist will be able to put more future workers in the same exploitative situation by taking control of the means of production so that they have no choice but to work for him.

Hoppe also asks why would the Capitalist borrow his money to the worker if he’s not going to become richer in a year? Why indeed. By himself the capitalist would not become any wealthier than his original 100$ and  as time passed, if he did not labour himself, his 100$ would decrease as he fed and sheltered himself. But the capitalist is not content to work like everyone else, he wants to become richer and not work at all, a societal parasite. He will look towards the immoral way of exploitation.

The “clean capitalist” who is mentioned in the article, does not escape this moral stigma simply because he didn’t get to inherit his fortune like most capitalists. Once you have capital, you always have 3 options.

  • Do nothing. Use the money that you saved to retire or have a luxurious life
  • Become a capitalist and exploit workers.
  • Bring other workers to your business without exploitation. As long as they work with you, they own what they make and they get an equal share of the surplus value. This is the only mutually beneficial way.

Hoppe continues:

Now what is wrong with Marx’s theory of exploitation, then, is that he does not understand the phenomenon of time-preference as a universal category of human action. That the laborer does not receive his “full worth”, so to speak, has nothing to do with exploitation, but merely reflects the fact that it impossible for man to exchange future goods against present ones except at a discount.

And this is simply untrue. First of all, the capitalist does not give the worker present goods. How many times have you been paid on your first day of work for what you’re going to do in the coming month? Never of course. The wage always comes at the end of the working period where the surplus value has already been created, even many times over. But yet, you do not gain the full value of your work even though you gave the capitalist “present goods” each day in the previous month in exchange for “future goods” at the end of the month.

But this has nothing to do with present of future goods nonsense. It’s all about who controls the means of production and who is starving. The only reason the worker cannot make surplus value for himself is because the Capitalist controls the way to make it and will not let him use it unless he agrees to be exploited. And the more people that are exploited, the wealthier the Capitalist becomes and the more means of production he gets to control, turning yet more people to exploitation and concentrating the wealth to the few.

I will not bother to counter the rest of the speech as it basically rests on the assumption that it has demolished Marx’s theory of exploitation. I hope I have adequately shown you how it has simply tried to obscure exploitation behind concepts of time and avoid the hard moral questions that undermine capitalism.

I’m not an economist expert or even a Marxist scholar so it’s quite possible that I am missing some fine point or argument from either side. However if this is indeed the only argument they have to declare Marx’s theories obsolete, then it’s no surprise that their system sounds so hollow.

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Anarcho-Capitalists, pay attention! I will not tolerate your bullshit.

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To all anarcho-capitalists, Libertarians, Ron Paulites, Randroids and whoever else comes here to defend your idols and your ideologies, take heed of what I write here so that our discussions will be pleasant.

I have had enough twisting of truths, covered insults, elitism and outright lies to last me a lifetime so the buck stops here. Either shape up and follow the reasonable rules I lay here, or GTFO.


This is a big no-no, alright? The last thing I want to do is correct your blatant disregard for (historical) facts when you wish to make a point. This quote is sample of this cancer.

History has proven me correct in both instances. The freest country on earth became the most prosperous and every country that ever had communism or socialism has suffered great losses in productivity and the rise of authoritative forces. What has happened to Cuba since the revolution? What happened to Russia and China. Each of these countries was once considered wealthy and then they became communist. The systems broke down.

I can live with honest mistakes that come from simply being ignorant of some historical facts but phrases such as the above are unacceptable. The fact that it is painfully easy to verify its falsity only means that you are being deliberately dishonest in order to propagandize. And I do not care for that. If that’s what you’re after, go find out some Ron Paul drones to talk to.

Outright lies such as the above will be served with a warning the first time, and a ban the second. And even the warning is too much but I’m prepared to give you the benefit of the doubt in that you’re simply that ignorant. But be aware that if you are really so ignorant, you’d better get a clue. Quickly.

Finally get it into your thick heads that Correlation does not equal Causation

Yes I know that you think that everything good comes from Capitalism and everything bad from Socialism and the government but you have to understand that the world is a complex place. Your arguments simply boil down to “Any place that prospers must be because of Anarcho-Capitalism and any place that falters must be because of the government” and then look for facts to support this.

I have seen this more than enough times and I’m not impressed. Especially when someone points out a nation with a neoliberal policy which you’ve been praising for the last couple of years which when it failed, now suddenly you find out that the government did it. Why didn’t you say anything before?

This applies to the reverse of course, when you rush to blame Socialism (or whatever the fuck you think Socialism is) and the government for any failure, disregarding any and all external factors. Dictatorships in Africa? It has nothing to do with the US funding the dictators and everything to do with Socialism. US Economy failing? It has nothing to do with the last 30 years of neoliberal economics and all to do with Socialism/The Fed/The Government/Any other boogeyman.

You’re not convincing anyone but yourselves. If you’re going to make such an argument, you’re better off not commenting at all.

Read what I write, not what you think I mean.

When I say that Communism requires no government, I do not really mean “Communism requires government”. If you cannot understand how something might work without a government or another authority then ask! Do not assume that in this or that argument I must mean the government, jump to that conclusion and then accuse me in the same breath of being an authoritarian.

I have had enough of this shit.

If you show a failure to grasp this simple concept, once again you will get a warning and then a ban. I do not care to repeat myself all the time to someone who is unwilling to even read what I write in favour of his own preconceptions.

Know thy enemy

If you come here with the purpose to argue against Communism, you’d better have a clue on what it actually is. I have no intention of educating you as I go and there are quite a few books you can read. If all you’ve read is the Communist Manifesto, a propagandistic piece with as much detail as the Declaration of Independence, then you do not know Communism.

If you do display a blatant lack of knowledge of this aspect, I will most likely direct you to an article on my Misunderstanding Communism series that hopefuly dispels your misunderstanding or at least gives you my take on this issue. If you come after that and use the same goddamn argument you should have just read my refutation of, then you will get a warning. If you do not want to read what I’ve written on this subject, then you’re not here to discuss or learn, but to evangelize and you should GTFO!

I laugh at your courtier’s replies

When I criticize any argument you or one of your idols might make, I do not attempt to argue against your whole worldview. I simply refute what has been laid in front of me. If you then start quoting books that I should read before I can argue, I will just ignore them.

I can just as well suggest that you read anything I have in order to be able to argue with me, but this is simply absurd and we would never be able to converse. If you think an argument I make I wrong, point out the errors, do not suggest books and claim that they will convince me. I will not look at them.

The only way you can get me to possibly look at a book is to make coherent arguments which actually make sense so that my interest in raised in this topic. Then you can suggest a book that goes into detail on this matter and I will have an reason to check it out.


Since all of the above seem to be the bread & butter of anarcho-capitalists, a link will go to the Comment Policy to hopefully stop the inanity that has been spreading around here lately. If you do not like them, feel free to GTFO as you wouldn’t be adding anything to the conversation anyway. If you choose to ignore them in order to evangelize, then your hypocricy knows no bounds, you stalwart protectors of private property.

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