Quote of the Day: Anarchist Trams

A quote about the Spanish Revolution

{{es|Una bandera del sindicato CNT-AIT}}
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I just found a very nice and inspiring quote about the Spanish Revolution

Within workplaces wages were equalised and conditions greatly improved. Let us see how collectivisation actually made things better. Take for example the tramways. Out of the 7,000 workers, 6,500 were members of the CNT. Because of the street battles all transport had been brought to a halt. The transport syndicate (as unions of the CNT were known) appointed a commission of seven to occupy the administrative offices while others inspected the tracks and drew up a plan of repair work that needed to be done. Five days after the fighting stopped 700 tramcars, instead of the usual 600, all painted in the black and red colours of the CNT, were operating on the streets of Barcelona.

With the profit motive gone, safety became more important and the number of accidents was reduced. Fares were lowered and services improved. In I 936, 183,543, 516 passengers were carried. In 1937 this had gone up by 50 million. The trams were running so efficiently that the workers were able to give money to other sections of urban transport. Wages were equalised for all workers and increased over the previous rates. For the first time free medical care was provided for the work force.

I suggest all of you not already familiar with it, take the time to learn about the closest attempt to Anarchism that has happened, what it achieved during its small existence (a lot) and why it was defeated.

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Why talking about Communism matters

Spreading the ideas of Socialism and Communism has always been important but it’s never more important than at the time of a systematic crisis of Capitalism.

Discussing
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DB0: If you remember Orgthingy, he was the contributor to the Division by Zer0 who wrote an article on socialism a month or so ago. Today he returns to discuss a bit of why the Socialist society can only based on democratic principles and why we need to promote. Orgthingy is not a natural English speaker so please try to read more into his sentences if it doesn’t immediately make sense.


Many have told me already that Capitalism is a “Natural system therefore loved by society”. First of all, it’s not natural at all. It’s a fairly new system that emerged just few centuries back in Europe, brain-washed the people then democratically got applied (at least in countries like UAE and Kuwait, but Capitalism democratically emerging isn’t the case in most of the world I guess).

[DB0: I have to disagree with Orgthingy here, as he is taking a very simplistic view of the rise of Capitalism. Capitalism didn’t brainwash the people just like that. The state helped the capitalist mode of production take hold, by protecting the bourgeoisie from proletariat aggression and by always siding with the Capitalist on legal challenges. As the mode of production spread and people’s rebellions (e.g. the Luddites) failed to stop it, eventually the got used to it. So it wasn’t democratically applied, but rather brutally forced on peasants and artisans.]

Most of this blog’s regular readers already know that Capitalism offers inequality and contradicts with democracy, yet people these days seem to like it as most  are ignorant of the ‘bad’ aspects of it). Now if you do similar techniques, like educating people on Socialism and Communism, through schools or any other way, then you’d end up with a fully-democratic move towards this economic system and ‘country’ since you’re not forcing ((forcing, even if they don’t clearly know what Socialism and Communism really are, would be against people’s will, therefore contradicts with democracy and idea of revolution which needs support of majority of the people)) any of the two ideologies onto people.

This was of course a simple and theoretical view, since in reality it would be much more complex to achieve having a communist/socialist society. Capitalism unfortunately is a ‘changing-proof’ kind-of system ((by that, it means it’s hard to reform a bourgeois state apparatus into communist or socialist ideologies)) and prevents that from happening. Simply put, capitalists have the money and power.  For example they use expensive mass advertisement for their political campaigns (and unsurprisingly win); They’ve got the money/power, therefore media would not spread the idea of communism and socialism, but actually oppose it as much as possible ((Dbo: This is a bit simplistic really but the main idea is right)).
Thus without the people’s support, a ‘democratically’ emerging communism and socialism is impossible, as the capitalist-propaganda model will break even through a revolutionary spirit. A Revolution of minority can only fail.

[Db0: This is not strictly true. While a revolution without popular support will fail, during times of severe downturn, such as a period of economic crisis, the spark of a revolution can be lit by a minority uprising and this can quickly spread elsewhere. People who were neutral may become supportive, and those who were a bit opposed may become neutral and silent consentors. But one has to remember that the current system is indeed maintained by a minority rule. The minority of the state and the capitalist class. To overcome this, a socialist revolution would probably just need to have a somewhat larger minority than that]

What has to be done then? You may be wondering what should we do to get Socialism/Communism into power. First of all, don’t lose hope. What we need to do is get people’s attention, especially now since we’re in a recession (like what I’m doing by writing this article). Second: Communists and Socialists all around the world should focus on education (not necessary through media, but L’Humanite is a great example of ‘communist-media’) of what Socialism and Communism really are and free their minds from propaganda of the capitalists.

Socialists/Communists all over the world, unite! Educate those who don’t know!


Db0: The idea of Orgthingy is basically very similar to what my tactic is, although I do not limit myself to Socialism only. The whole point of this site is to spread my ideas around. I believe that each of us is incapable of changing the world by himself but small actions in concert would be enough. I would be happy to know that I’ve managed to convince two people to not only espouse Epicurean/Anarchist/Communist thoughts, but to also attempt to convince two more people themselves.

For all of us, it is vitally important to promote grassroot informational campaigns and word-of-mouth “advertising” of what we espouse. And it’s not enough to simply do it behind close doors in a forum of our peers and bask in the groupthink, like some Rothbardians like to do. We must go out, on open ground and challenge others and ourselves (to defend our ideas). Doing this will not only give our voices a chance to be heard by the silent majority, but strengthen your own arguments and give a much needed confidence.

So don’t be afraid of dialogue. Go out, challenge and be challenged!

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It's not the end that's important but how we get there.

Many idealists focus to a large degree to the form a future society will have. But this is the least important part. It’s much more important to figure out a concrete path to it.

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I’ve spend a hefty chunk of the last 3 days arguing with various strands of market anarchists ((I will use this term to define those who support a stateless society where usury (wage-labour, rent & interest) is possible and a free market handles distribution)) where the discussion mainly centered around the form and limitations of the future society.

This is a main trend I’ve noticed from those Anarchists and “Anarchists” who espouse mainly the Austrian analysis of economics; the trend to emphasise a future possible reality and how in the ideal situation the free market would work in the best possible manner. However, in an idealized society, any system can work. Anyone can in their head imagine all the necessary factors that will have to exist in order to make the system run.

The problem however is that reality never conforms to the ideal. Any perfect system imagined in our head will always fall far shorter than practice and this is not because the person thinking about it is stupid, but simply due the sheer immensity of factors one must account for. One will always consider the problems he is most familiar with and their solutions, but for every situation one resolves, there’s a 100 we haven’t thought of and another 100 we can’t even consider because they will only appear in the future.

These kind of ideal systems are utopias. They work only because they are a shortened version of reality, only detailed to the extend that the original thinker and his followers have thought about potential problems and their solutions.

And the reasons why Utopias fail, is because the thinkers have wasted all their time imagining how the end result might be, and very little to plan how to get there. But the second part is the only thing that matters. In fact, I would go as far as to say that the particulars of any future society are almost not important at all. It’s the base that’s important. The main idea that permeates the future society that we want to achieve is enough to be painted in rough colours, and let the future people add the details

To speak for myself, I suggest egalitarianism. A future society where people will be equal in power. I maintain that as long as equality in power exists, coercion (active and passive) will be impossible and as a result true freedom will flourish. This a broad stroke, but it’s enough. And the benefit of such broad strokes is that it allows people to concentrate on getting the baseline right, rather than bickering over the details. It also directs the energy to the part that is most important. Getting there.

However, market anarchists seem to miss 2 important points: The difficulty of using free market tactics to get rid of distortions of power and the fact that the means strongly colour the ends.

The first part is almost obvious from today’s society. In a free market where (gross) inequality exist, the power keeps flowing towards the powerful. This happens because money is power, and in any market exchange between unequal individuals will benefit the strongest over the weakest. This allows the strongest to use all means at their disposal in order to protect their position, and one of those means is the state.

As such, it is silly to expect these people, the ruling class, to embrace the Free Market, to voluntary reduce the protectionism they enjoy and the like. If they start to do so, then it can only be because it is to their benefit. But it is equally silly to expect free market tactics to work immediately post-revolution. A revolutionary society will not immediately arrive at the end of the road, in fact the biggest challenge will only be starting. That path will be the most crucial, with counter-revolutionaries waiting for a chance to return to the old system, relics of the previous society standing which will need to be dismantled and many people who still think by the old values.

To attempt and go directly to a free market economy at this point would be to ignore the fact that the free markets exarberate inequality.

Which leads us to the second problem. Mainly that the path ones takes is what defines the end one will have. If we have a revolution, the methods by which it will happen will define the immediate post-revolutionary organizations we will have. And those organizational methods will define how the society will slowly evolve to its newer form.

To give you an example, if a revolution happens due to syndicalist action (say larger and larger strikes and takeovers) then these unions will be the classic form around which a society will condense as the heat of action cools down.  People will then continue working with the organizational form which has proven successful to them, forming federations and confederations of syndics and so on. Thus, they will have small incentive to switch to a system they are not familiar with.

This poses a tricky problem for those who envision a different kind of ideal society. Taking market anarchism again, if we accept that free market tactics and rhetoric cannot take down the current system (because they will promote the current distribution of power), then this means that market anarchists will have to support another type of organization that has a chance of revolt. But once this happens, people will still need to deal and extinguish relics of the previous system, on which a free market cannot stand (as it needs an idea society remember?).

So at which point will these piggy-backing market anarchists get to put their system into action? If they wait until the system solidifies in an anarchist form, it will be already too late. The system will be communist, syndicalist or whatever. There will be no further reason for reform. If they try to take over soon after the revolution, then the lingering inequalities and mentality will take hold and possibly defeat the whole thing.

The only chance then left for idealists, is to somehow prove that they have some means of provoking an anarchist revolution in the first place which will then be able to progress towards the perfect free market. Or to expect that a future non-market society will be so unstable that it will voluntarily cry out for the free market. To tell the truth, the later does not really worry me, as long as market anarchist support a social revolution now. And the former has not yet, provided any convincing (to me) methodology.

For those idealists of the free market though, who do not see any path towards it; to stick to the ideology is simply useless. If you can’t figure out how to achieve it (and no, I do not consider begging the government to be a viable tactic) then you might as well not waste your time thinking about it. If you think you can only get there once the socialists have created an egalitarian society, then start struggling for that and don’t waste our time about the Free Market.

And if you are of those few that think there is a way through free market tactics, then you’d better have a damn good excuse on why these tactics can work, even though the free market theory is only valid for a very particular society in the first place.

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Why the Free Markets concept is useless

Free markets are presented by Market Anarchists or Apologist of capitalism as the panacea we should all be aiming for. This post will attempt to show why this is based on non-existant ground.

Law of Diminishing Marginal Utility
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It is something I stumble onto extremely regularly lately, people who claim that only a free market economy would be capable of efficiently allocating resources, or maximizing the utility of most people. That any other system will by definition lead to disutility.

This is a very bold claim, and one is well justified in asking what proof we have that such a system would indeed have this result. And this is where the problems start. The most common answer, especially from proponents of the Austrian school of economics or people accepting most of their arguments, is that this is not provable. Rather, this is based on logical deductions from axioms.

This capability of the markets is then contrasted with mathematical proof. That is, the fact that free markets would lead to efficient allocation etc is as solid as saying 2+2=4.

However, if this kind of argument is espoused, then a major flaw appears. Mainly that mathematics, and other axiomatic concepts, cannot tell us anything useful in isolation from reality and empirical evidence. To give you an example, to claim that markets are axiomatically defined as always leading to pareto efficiency does not tell us anything about which system humans should organize their societies around. It simply means that the concept of the markets is separated from what is commonly referred as the markets now.

Under this kind of proof, the market can easily be, say, a communist society. But if whatever will lead to Pareto efficiency will automatically be a “free market”, as humans we still face the problem of discovering which kind of system will lead to Pareto efficiency. To turn around and say that the free markets will, and by that imply a very particular system based on particular property rights and laws, is an equivocation fallacy.

The problem of course, is not that some concepts have been turned into axioms, as by itself this practice wouldn’t lead to any normative conclusions, much like pure mathematics can’t either. The problem comes because Free Market economists have attempted to sneak descriptive concepts as axioms, something which would allow them to make claims about reality. For example, the idea that a human always acts to fulfill his strongest desire first.

But the problem with such an act, is that these descriptive facts have been conceived out of pure air. Without empirical proof, any such “axioms” introduced run the problem of having minor errors, minor facts that the original thinker didn’t know about. And as most people know, the slightest error in a purely logical edifice, can lead to a wholly wrong result.

Which is why actual science requires empirical observation, repeatability and falsification as it attempts to iron out errors of human thought or modify the facts, ever so slightly, so as to make the rest of the logical deductions from the facts, as solid and correct as possible.

Proponents of the Free Markets do not do this however. They start from a few basic premises, a few of which should have been empirically tested before being accepted, and then build based on pure logic from there. They then claim that like mathematics, the result, as long as no errors in the calculation have been found, cannot be anything but correct.

And most importantly, real empirical data that refutes the results, is not used to find errors in the premises, but rather dismissed. It is claimed that if logical results do not match the reality, then there’s some factor in reality that skews them (what it is, is not important but it’s most likely the government). But this is the problem! What exactly is the factor might be critical, as the factor might be that one of the “axioms” is wrong!

Market Anarchists would have us believe that a free markets within a very particular society would work for the best result and thus, we as humans should aim for this particular society structure. But this is not proven. It is asserted. It starts from the premise that a Free Market works in a particular way and that is based on assumption of how reality and particularly human psychology works!

So why is the concept of the Free Markets useless? If “Free Markets” is defined as being a utilitarian result, then anything that achieves this result is a “Free Market”, and to find that “anything” we’ll again need to use empirical evidence. If Free Market is logically concluded from a few premises to lead to a utilitarian result in a particular society, then unless these few premises are empirically proven, we cannot and should not trust the results, nor aim for that particular society.

In the end, the Free Market concept is useless because it tries to prescribe reality independently of any empirical evidence. And like all other such independent concepts, like mathematics or language it can either tell us nothing, or lead us to the wrong path based on equivocations.

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Distinctions of Ownership

Some claim that Private Property and Possession differ only in their degree. But this is not the case, they differ structurally and the systems that rise out of each will be therefore much different.

ADAMS COUNTY, CO - FEBRUARY 02:  Chris Smith c...
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Quite large  discussions seem to have been sparked by my recent article counter posing Private Property to Possession, both in the comments of my own blog, and on the Austro-Athenian Empire. In both cases it’s an argument mostly between me and my generally communist views and Lockeanists who argue for the homesteading principle as defended by Murray Rothbard.

The discussion has already unfortunately grown impossible to manage through the comments of the AAE and as several questions have been put to me lately, I thought I might answer then in a new post. This might also give an opportunity of other Anarchists/Communists to engage or state their opinion on this, plus it will hopefully allow the discussion to flow better in my comment system which is built for it 😉 .

RE: Private Property and Possession have only differences of detail and degree.

Mostly based on Kevin Carson’s article, is the idea that Possession and Private Property are simply parts on a scale of Ownership rights ((Mutualists generally call all ownership rights ‘Property’, but this is different from my use of ‘Property’ by which I generally mean the Lockeanist take.)), from less “sticky” to more, that is for Lockeanists, property rights, once claimed remain even if the original owner does not use them anymore or rents them out, while for Socialists, property rights remain only as long as use is maintained (with a grace period of unuse based on common sense of course)

But while this on first view seems like a small difference of degree, in functional terms, the difference is immense. To put it simply, for Socialists, wage labour and rent would be impossible as one cannot be said to own something that someone else uses.

While Lockeanists tend to concentrate on terms of unused land and claim something like “oh, the difference wouldn’t be so big between our systems. Why are we fighting then?” they miss the really fucking big difference it would make on the kind of society which would be formed on it. This is because without wage labour you cannot have Capitalism, as it is the most crucial gear by which accumulation (and thus investment) can occur. The difference does not lie in the original distribution of land, of which in the Lockeanist system will look benign, but in the results of this “sticky” possession.

This is why claims by Rothbard that all previous claims to property are null ring so hollow, since Rothbard ignores that along with the state enclosing on the commons or creating a buying monopoly (which he acknowledges), the Capitalist backed state also imposed the mentality of “sticky” property that most people did not hold, and which was of course for the benefit of the Capitalist. Thus to nullify the claims of the land but to insist that people retain a Lockeanist concept of property is as invalid as not wishing to nullify property claims at all. The result in any case would be similar. Property would start accumulating again and a system of inequality and authority would be built on top of it.

On the other hand, anarchists insist that you cannot make any difference unless, along with the state  and the unjust distribution it enforced, you also utilize possessive ownership which will allow the egalitarian system (for which people undoubtedly revolted for) to remain in place.

RE: Wouldn’t lending undermine the concept of Possession?

The question put by Roderick seems to be this: Even in a possessive system, lending would still happen, that is, people would still allow others to borrow their cars, or use their lawnmowers. If this is possible without having to change ownership in between, then this would mean that the difference between possession and PP is a matter of degree.

Certainly lending would still be possible under a possessive system, but it wouldn’t be based on rent. A rent for any item, can be seen to mean that the other person is paying towards ownership of it. As such, if I borrow your car for a day or a week, by common sense most people would recognise that it’s not my car now as it was based on a favour. People would have to throw their senses out of the window to recognise either result (It goes against all people’s interests basically). However in order for you to somehow convince me that I would have to pay you an amount to borrow your car, but then your car would still be yours, would require something more. It would require inequality.

Think of it this way. Such acts of renting do not happen between friends even now, even though such acts would be perfectly legal and in the self-interest of those involved. Even under dire circumstances, a friend would not ask another for money to help (quite the contrary in fact). This is because friendships, at the core, are about equal individuals wanting to relate to each other. This equality and most importantly, the recognition of it in the minds of those involved, is what instinctively prevents them from asking for rent. Likewise, in an egalitarian society, such as those based on possession, any lending would happen based on needs, and not for profit. Were one to ask for such a profit from the other, it would immediately sour their relationship, as well as most likely the relationship they have with the rest of society. Just think of how would you react if you suddenly needed a friend’s car to head for a week vacation and he asked you for rent (obviously, over any maintenance that may happen). You’re most likely to decline the offer and go rent from a shop, even if it’s more expensive.

So in short, while lending would still happen with a possessive ownership, it wouldn’t undermine it, nor would it put it on the same scale as Lockeanism. It would simply be based on common sense and maintaining the egalitarianism that exists.

That’s it for now. There’s more question posted over at the AAE but I think this post has already grown quite long. I urge you to check it and give you perspective as the contributors seem an amiable bunch 🙂

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Private Property VS Possession

The distinction between Private Property and Possession is a very important one for people wanting to understand the socialist system. This post explains what it is.

Discussion (Property)
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One of the most sticky points in explaining Communism to people is the concept of property. This is especially tricky because all socialists renounce the concept of Private Property as wrong and something to be abolished, which in turn created vast confusion to those not familiar with the theory. This is even more accentuated by deliberate (ie propaganda)  or accidental misunderstanding of Communism as it espousing that people won’t own stuff.

But it is an obvious truth that people like to own items for various reasons. From the most simple of not wanting to share a toothbrush, to the more complex of feeling psychological attachments to various items that we would like to consider ours (say a car or a toy). This is understandable and it is obvious that it would be unnatural if any social theory proposed that this is undesirable.

Which is why Socialism doesn’t demand it either.

Now this might seem contradicting but it is only because we are missing part of the puzzle. The fact that one can define two different types of ownership.

The first type of ownership is the common one that everyone is familiar in our current society. It is the type of ownership based on a legal claim to something, ie it is based simply on what the law will recognise based on previous contracts. In this system of ownership, one can consider to own anything and it will remain his until he trades it away. Private Property (PP).

Precicely because this ownership is legally constructed is why it requires to be defined through contracts of some sort that will be recognised by the state. Which is incidentally why any social system based on Private Property will require the existence of a state of some sort and extensive laws to clarify and settle disputes.

But this is not the only system of ownership that can exist. There is another one that not only comes naturally to humans but it also avoids all the pitfalls of PP. Possession or ownership based on use. To put it simply, one can only ever lay claim to things that they use personally. This is fundamentally different from PP in that it does not demand an extensive legal system to enforce it (although it can benefit from it) and it prevents accumulation of wealth.

Now there is an immediate straw man that people who hear of this system immediately jump to. It goes something like this:

“Under Possession, as soon as you left your car unattended, someone could take it legally. Or someone could get in your house and lay claim to it.”

If this sounds as an absurdity, it’s because it is. Of course socialists do not mean something like this when we talk about Possession. Of course the claim to anything is more solid than this. The basic difference from PP is that it is anchored on the use of the item in question rather than an arbitrary claim that goes back to the original forceful appropriation of land.

So under the rules of any society, the possession of any item can be defined socially or legally. Socially for example, it would be unacceptable for someone to lay claim to a car that someone else left in the parking lot. People doing so would be prevented with all the coercive measures any socialist society makes use of (peer pressure etc). However, as this is defined socially, it’s the acceptance of society that would make act of appropriation act acceptable or not. So for example, a car that has been left in a parking lot for years and is going to rust, could be taken on by someone else. Common sense would say that this would be acceptable. Of course these are not hard and fast rules, but up to each community to define to their own culture and experience. But I hope to give you an idea of how this works.

Why is the difference between private property ((Note: Some elements of the Anarchist tradition, such as Mutualism, use the term Private Property to refer to ownership of all sorts. They still make the functional distinction between them, but call them somewhat differently. So Possession becomes “occupancy and use”. Of course they support possession as natural.)) and possession so important? First it is because it explains what socialists mean by the abolition of the former and avoids straw man arguments about the “unnaturality” of communism. The second is that it provides a link to pre-civilization human societies, or to be more precise, those which had a hunter/gatherer lifestyle which were egalitarian precisely because the concept of PP did not exist. The third is that it draws attention to the severe drawbacks of PP and by extension it shows how the introduction of it directly led to inequality and relations of authority.

The main characteristic private property is that it allows accumulation of wealth. As each persons claim of ownership is simply based on the law, one can keep massing up as many such claims as they can. As society expands and as people are born without a claim to property, this in turn becomes a leverage for exploitation and, by extension, inequality. Simply put. Someone who does not own land, must sell the only thing he can, his labour (and by extention freedom), and he must sell it at a price that is less than what he would make if he did own land. The excess result of this labour, profit, of course goes to the employer who then uses it to expand his PP. And the cycle of exploitation continues.

Contradict this with Possession, where any one person can only ever own as much as they personally use. As such the scarcity of the land is automatically reduced, as there’s not a few people controlling vast tracts or land and preventing its use until those desperate enough “volunteer” to their terms. There is of course always the possibility that the amount of humans would eventually become so great as to create a situation of scarcity where people would be landless again. But if anything human ingenuity has shown that we can always find more places to live in (From multi storey buildings to space stations).

As such, inequality would not be possible without the ability of people to accumulate. Without this incentive people in turn have no reason to exploit and emiserate their fellow humans for it would not bring them any social benefit. As such, people would realize that their interest lies in spreading the surplus value they create and cooperating with others to collectively improve their life standard rather than competing with each other for diminishing returns (as excessive wealth does not bring excessive happiness).

One would ask, how would Possession deal with items that are too big for one person to use, such as a factory? This is of course has a very easy solution: Collective ownership. Each person who works in a factory is considered to own an equal share of it and as such, any surplus value it creates. And this cannot be run in any other way other than a democratic one. For in a collection of equals, there’s no room for bosses giving orders.

One can then imagine a society based on Possession rather than Private Property would be the exact opposite of what we have now. A society where people would actually not have an incentive to be evil. It is from this society that the necessary mind-frame would spring, of cooperation, voluntarism and freedom.

And as much as the above is true, so is it delusional to expect a society based on private property, an ownership system that promotes the mentality of greed and short term interest, to somehow transform into a libertarian society, where people actually act charitably and do not seek to exploit their inequality for personal gain.

Is Anarchism Utopian?

Anarchism is more often than not accused of being a utopian ideology with no basis in the real world, but if anything, it’s the only non-utopian system. Here’s why.

Collectivist anarchist Mikhail Bakunin opposed...
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It’s amusing when Anarchists are accused of being too ideological or outright Utopian, it is especially so when such an accusation comes from liberals or state socialists (i.e. mainstream Marxists). Why is it amusing? Because of all political perspectives, Anarchism (i.e. Libertarian Socialism) is the only one whose theories have not been refuted by history itself!

This “Utopian” accusation generally comes from two general sources. First there are those who support the current Capitalist system as is (in the 1st world countries of course) and only propose mild changes, such as more or less regulation of the economy. These would generally be the Social Democrats (or “Liberals” in US politics) or Conservatives in most political systems.

They would argue from the perspective that the Capitalist/State combination is not only “the way things are” but also the only way things can be. They would then raise such arguments as the common appeal to human nature, that Capitalism is the “end of history” – in that its superiority has been proven from an societal evolutionary perspective, that the state is necessary to ensure control from the people (i.e. representative democracy), that Capitalism provides the best benefit for all etc.

But one has to ask: who is really the ideologue here? Who is assuming an expertise of human nature in order to have some kind of unshakable base? Who is ignoring the historical forms of human societies (hint: communal) and the considerable amount of coercion required by the state in order to jump-start Capitalism? Who is absolutely oblivious the true role of the state and the real impotence of elections and government to change life for the better through normal channels, even when there is considerable popular request for social reform?

Worst of all, it’s the more than ironic result of this superior system, Capitalism, that the vast majority of people live in worse situations than they lived in pre-capitalist societies. One only has to look at the situation in the lost continent, Africa, and compare it with the pre-capitalist tribal societies, which while not great by any measure of the word, were never as bad as today. One only has to look at the current environmental obliteration, the sheer scale of unending conflict and even the relative worsening conditions of people in all nations to ask: Who is really the ideologue here?

The other great accuser of utopianism is none other than the mainstream Marxist movements of Leninism, Trotskyism, Stalinism, Maoism and the like. The younger (who somehow think itself more mature) and patronizing cousin of Anarchism.

As revolutionary anti-capitalist movements, they at least share some of the correct critical perspective on the current Capitalist system but they lose the ball when they turn around and accuse libertarian socialists of being naive for not promoting centralization, hierarchy structures and movements from above, that is, leadership from a minority of enlightened few.

The saddest thing is not that they have to misrepresent the arguments of Anarchism in order to attack their favorite straw-men (“Anarchists will not defend the revolution” being a crowd favorite), nor that they ignore what some of their own have written that basically parrots the libertarian perspective, but that they dare claim historical proof, when empirical facts have shown that their theories put in practice failed in exactly the manner that Anarchists had predicted!

Is the federalist libertarian perspective Utopian, or is the centralized authoritarian one when it fails both in theory (power corrupts, requires inhuman knowledge, leads to bureaucracy etc) and in practice? Is a bottom-up democratic society Utopian or the top-down hierarchical one who expects leaders to be practically flawless and that “real power” will somehow still remain at the hands of the people? Is the “similar means as the ends” anarchist position Utopian or is the Leninist “ends justify the means” which expects a revolution where people just passively followed orders from the enlightened few can somehow lead to a society or politically active and empowered individuals?

In the end, who is the ideologue? The one who looks at how humans currently and historically acted and interacted and makes a revolutionary theory to describe and lead to something better, or one who makes a theory which proves to be a failure in practice and then refuse to discard it? Oh, the authoritarian socialists will say that “Of course we will learn from the mistakes our historical leaders made, we of course don’t want to repeat them. Terrible tragedy” and all that, but that is no more different than the Liberals who after every Capitalist crisis declared that they will learn from the mistakes of the past and ensure a future with no Crises and depressions. And when the next disaster comes, they are always oh so surprised.

This convinces few for it’s the theory’s core of hierarchy and authority that is flawed and by refusing to review that they only doom themselves to similar results and suffering of scale.

And finally, there’s also the right-“libertarian”, pro-capitalist, free market “anarchist” camp. But those don’t generally accuse others of utopianism for they’ve probably learned that those living in glass houses don’t throw ideological stone around.

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The Tragedy of Boxes

An analogy meant to show how the crises of capitalism are based on structural failings of the system, rather than external meddling (ie state)

The Whitlams performing at the 2007 Australia ...
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Lets take a Rock concert where there’s a considerable amount of people who wish to have a better look at the stage. Lets also assume that people are absolutely respectful of the negative freedom of others and thus will not take physical action to restrict it in any way, unless it is physical action against someone in itself.

Now a perfectly reasonable action on the part of any of these people will be to bring a box with him in order to stand on it and thus get a better view of the stage. Of course others will be inconvenienced by the sudden worsening of their line of sight, while others will become envious of this better position instead.

Again, for both of these cases, a perfectly rational response would be to get their own box to stand on. Eventually most people will have acquired their own and thus the end result would be the same as in the original case.

Now consider that it is possible to stack these boxes on each other and increase one’s height once more. You immediately have a height race where people are trying to outstack each other in order to get a better view.

However, there are two catches:

  • The person using these boxes needs to carry them himself and they can get quite heavy eventually.
  • The higher one’s stack, the more precarious it becomes, increasing the risk that one might fall and more than likely take others with them.

So now we have a situation where through perfectly rational individual actions, we’ve reached the following situation:

First of all, the strongest will be able to carry more boxes and thus oligopolize the view. Eventually the people below and behind will be fed up and leave the concert. Once enough people do this, the general fun of the concert decreases (a concert with 20 people is not much fun I’ll tell you – unless it’s planned that way)  and new people find it impossible to join since they have to bring a large stack of boxes from the start.

Second, as people start carrying more boxes, you end up in a very delicate situation where one person slipping might trigger a chain reaction of catastrophic proportions, both because of the height of the fall but also because it’s easier to fall. Once of course you have most people on the ground screaming in pain, the concert will stop and the new one will have to wait until most have recovered from their injuries.

So we have a classic game theory situation, where individual rational actions for the short term gain have an irrational collective result. This all starts of course from the ideological position that no physical action must be taken against people who start this height race.

This example of course is not random. Specifically it is made to provide an analogy for the capitalist crises. Consider that the concert as a whole represents the economy. The people are the individual companies and the boxes represent investments in capital.

The more and faster a company invests, the bigger the short-term advantage it has until the rest invariably catch up. The rising investment in turn creates the possibility for a crisis of overproduction as eventually there is so much supply that it cannot be matches by demand (especially if wages stay low, but even if not). Once this happens the whole system grinds to a halt, totters and collapses under its own weight once the profits cannot be realized anymore.

In our analogy this is the phase where a few people finally lose their balance. Depending on the precariousness of the concert area, this might mean that a whole section collapses, or that the entire thing does. And once that happens a few people can get some extra boxes on the cheap from those who will no be using them anymore.

The first situation on the other hand is simply the tendency of the system to end up in oligopoly, from which it’s almost impossible to get out of, as new players need to start with a lot of boxes instead of slowly building up. This again exaberates the situation as it takes fewer people to fall and initiate a collapse (They’ve become now “too big to fail”).

What is this analogy meant to show? Nothing more than the structural problem of any system based entirely on rational individualistic self-interest (ie greed).

It is also meant to give an example of why crises of capitalism are systematic and not caused by external factors such as the state modifying the money or credit supply. As you can see, in the analogy these is no need for an external party (a state) in order to have a disaster, but even if we were to add one, the result would be the same.

Lets assume for the sake of this exercise that the state (or in our case, the concert organizers) controls how fast or slow people can get new boxes (eg, they help you carry them).
Would this make any difference overall? Of course not.The drive to the top would still be the same but it would proceed at a faster or slower pace. However neoclassical economists would have you believe that because it is not “natural”, some people overextend, causing them to lose their balance.

But this is not the case of the fall, although it might allow it to come sooner. You simply cannot keep building an edifice indefinitely, no matter how slowly, especially since the same tendency is the one that shrinks its base (as people would  leave disappointed in our example). In the same sense, Capitalism is impossible to be in a perpetual boom situation. Not only does it eventually have to collapse, but it will do so with a ferocity that will be analogous to the intensity and length of the previous boom period.

Of course anyone can see that there is another solution to this problem, one that avoids and endless series of builds and crashes, boom and busts. it is the simple solution of not allowing any individual person to start bringing boxes to the concert due to the long-term repercursions. Doing so would avoid an irrational collective decision.

Needless to say that this would require (the threat of) physical force against the ones who ignore the collective will in favour of their own self-interest. While this is obviously for the best, some ideologues will cry bloody murder and claim that such actions either restrict negative freedom (which they should do. Because.)  or that they will necessarily lead to authoritarianism. But of course this is an absurd proposition for there is nothing authoritarian about not wanting one or two greedy bastards to ruin it for everyone. Concerts everywhere seem to back this up.

Neither would this mean that everyone would have to suffer an inferior concert experience. Rather the solution would lie in rational collective interest, where instead of each person acting alone, all cooperate (ie pool their resources) and democratically decide on what the best thing would be, to benefit all equally.

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The best exposition of capitalist economics I've seen

Some quotes from an Anarchist FAQ which nicely expose the myths of Capitalist Economics

Oh, I do love to read some Economics pwnage now and then. Some of these quotes are just delicious.

In many ways economics plays the role within capitalism that religion played in the Middle Ages, namely to provide justification for the dominant social system and hierarchies. “The priest keeps you docile and subjected,” argued Malatesta, “telling you everything is God’s will; the economist say it’s the law of nature.” They “end up saying that no one is responsible for poverty, so there’s no point rebelling against it.” [Fra Contadini, p. 21] Even worse, they usually argue that collective action by working class people is counterproductive and, like the priest, urge us to tolerate current oppression and exploitation with promises of a better future (in heaven for the priest, for the economist it is an unspecified “long run”). It would be no generalisation to state that if you want to find someone to rationalise and justify an obvious injustice or form of oppression then you should turn to an economist (preferably a “free market” one).

I’ve always said that economics is as much of a science as theology.

The weakness of economics is even acknowledged by some within the profession itself. According to Paul Ormerod, “orthodox economics is in many ways an empty box. Its understanding of the world is similar to that of the physical sciences in the Middle Ages. A few insights have been obtained which stand the test of time, but they are very few indeed, and the whole basis of conventional economics is deeply flawed.” Moreover, he notes the “overwhelming empirical evidence against the validity of its theories.” It is rare to see an economist be so honest.

Indeed

This produces a market for economic ideology in which those economists who supply the demand will prosper. Thus we find many “fields of economics and economic policy where the responses of important economic professionals and the publicity given economic findings are correlated with the increased market demand for specific conclusions and a particular ideology.” [Edward S. Herman, “The Selling of Market Economics,” pp. 173-199, New Ways of Knowing, Marcus G. Raskin and Herbert J. Bernstein (eds.), p.192]

What an insight! The popular economics themselves are decided through market forces, i.e. those who better pander to the ruling class are the most succesful.

Read the rest of the thing. Hell read the whole of this Anarchist FAQ. The Anarchists as usual, hit the nail right on the head.

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The three struggling powers of non-socialist systems

There are always three currents in each society, striving for dominance. Conservatives, Progressives and Socialists. The former seek to retain rule, the second to achieve it and the later to dismantile it forever.

Populism
Image by Dr Case via Flickr

It is a rare occasion when I get an insight for a blogpost from a comic but this is what happened as I was reading this one. Although the part that spoke to me was just the buildup to the main even, it seems to me that the author did present the powers that struggle for dominion in all non-socialist systems quite succinctly.

So basically, every system characterized by class struggle (thus anything other than socialism) has the following three movements vying for control.The Conservatives, the Progressives (or liberals) and the Populists (or Socialists in recent centuries).

The Conservatives

The ruling elite of any society is generally conservative and thus generally belongs to such parties. This is born out of basic self-interest. The current ruling elite was once the progressives who have reached a position of power and through this leverage has slowly consolidated their gains by pushing for the appropriate legal or ruling system. The best way to preserve this position of course is to oppose progressive reformation of the current system so as to conserve their profit sources and prevent future progressives from overtaking them.

That is not to say that the conservatives are comprised only of the ruling elite, although historically it has been the case. Monarchs, Aristocracy and Feudal lords were all at some point the only conservative aspects of society, opposing transitions to another type of society, such as Capitalism. In recent centuries however, through misinformation and propaganda the conservative agenda has managed to make limited headway in the middle and lower class.

This is generally achieved through faulty reasoning, which is why it is mostly based on irrational beliefs such as religion and nationalism, through which you can make people follow you even if it will be against their own best interest. As such, the progressives either find it impossible to convince people through reason,  and even if they do manage to attack a particular point, as they don’t have the leverage of power, the argument can simply be ignored.

This path of a progressive becoming the conservative is the norm and examples of it abound in history, but one very recent example is none other than the success of Microsoft. Here we have a company which in the 80s and even up until the early 90s was hailed as someone who was doing everything right, the underdog that was challenging the status quo and coming out on top, putting one over the Big Blue etc etc. Back then, while MS was still growing, it was very tolerant of piracy (they didn’t like it but they took only token action against it) and against software patents.

Once Microsoft became the power in the software world however it started singing a different tune. Suddenly patents are necessary and good, piracy must be squelched by any means necessary and political lobbying has increased hundredfold. Looking at this change alone, it doesn’t really make sense and it just feels like a company suddenly turning “evil” for no reason. But from the perspective of power consolidation, the actions of Microsoft (and other in a similar position) make a lot more sense. They are the type of actions any entity which gains the power takes in order to be able to retain it with the least amount of effort.

Think of that the next time you wonder why Google “does evil” now.

Progressives

The progressive or liberal part of any society is simply those who are moderately well off but cannot ascend to the position of ruling elite due to the barriers the previous batch of progressives – the current ruling elite, has put up. In short the progressives are generally the middle class with great expectations.

The progressive face changes form in every epoch. They were the artisans under the monarchs, the bourgeoisie under the aristocracy and today they are the right-libertarians, the minarchist-capitalists etc. The “progress” they seek, is their progress to the top, and the “liberty” they ask  is the liberty to rule. Like all progressives before them, once power is in their hands they become tomorrow’s conservatives in their attempts to retain it.

Like the conservatives above of course, their number are not limited simply to the middle class, although that is their base. Their rationalistic rhetoric can easily demolish the weak arguments of the conservatives and draw in people with dreams of grandeur. It is convenient that a fact which can be ignored is that there is simply not enough room at the top in they pyramidal form of all hierarchical systems. As such, only the most capable and/or brutal progressives will achieve ruling position. But of course, all progressives consider themselves the most capable.

It is not realistic to expect progressives or liberals to stick to their values once society has been reformed to their liking (ie with them on top). History is ample proof of that. This is something to keep in mind when you listen to rhetoric from “anarcho”-capitalists about how good a society would be under unregulated capitalism.

Socialists

I use the label ‘Socialists’ instead of ‘Populists’ for while the former is a relatively recent movement in the history of mankind, (whereas populism, or movements “for the people” have always existed to some degree) populism without a socialist or egalitarian perspective has always been hijacked by the few for their own ends. The people have always been betrayed by those liberals or Authoritarian “Socialists” leading them to fight “for the people”.

And while there have always been egalitarian ideologues, they never gathered a lot of momentum before the Marxist and Anarchist movements which presented not only a reasonable argument on why an egalitarian society is preferable but also practical methods to achieve it. And while both Progressives and Socialists are disgruntled with the current ruling elite and rules of society, that is where their similarities end, for only the later seek a permanent end to ruling elites.

So where the Conservatives struggle to retain their rule and Progressives strive to claim it for themselves, it is only the Libertarian Socialists who wish to allow each person to achieve self-rule, and actualization. All three currents will use populism as reasoning but only the libertarian socialists have a concrete way to achieve it.

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