Showing posts with label Karl Marx. Show all posts
Showing posts with label Karl Marx. Show all posts

Sunday, 31 January 2016

The lamentable decline in the standard of public debate


For all of its faults during the time of empire, the United Kingdom used to be a thriving hotbed of intellectualism. Not only was the United Kingdom the driver of the industrial revolution, it was also a land of rapid intellectual, scientific and political development. 

These days, as the standard of public debate continues sinking to every more dispiriting lows, I think it's worth looking back and considering how the hell have things gone so wrong.

Background

Its obviously an over-simplification to start at any arbitrary point, but we must start somewhere, so the rise of liberalism in the 17th Century seems as good a point as any. It was from this period onward that the persecution of non-conformism declined dramatically.

In the 17th Century the philosophers Thomas Hobbes and John Locke established the concepts of the social contract and natural rights that gradually eroded the tyranny of the monarcy-state-church nexus.

The English Civil War resulted in the fall of the monarchy, but the powerful political elites who took the place of the monarchy imprisoned and marginalised radicals like John Lilburne ("Freeborn John") and the Levellers to prevent an egalitarian reformation of British society. Despite these efforts by the powerful elites to stamp out political and religious radicalism by persecuting non-conformists like the Levellers, Seekers, Quakers and the Diggers, the unstoppable trend towards liberalism and tolerance of of religious non-conformism had been set in motion.


It was never the case that persecution of non-conformity was eliminated entirely, but from the late 17th Century onwards the people of Great Britain found ever more freedom to express non-conformist political views, and to practice whichever religion they liked, or none at all for that matter. 

Another visionary liberal philosopher to spring up in 17th Century Britain was to inspire the independence revolution in the United States. Thomas Paine's revolutionary essays inspired the movement that excised the monarchy-state-church nexus from vast territories of North America.

The vestiges of the tyrannical monarchy-state-church nexus persist in Britain to this day. The UK state is an anachronism with its monarch serving as joint head of state and head of the established church, its antiquated and unrepresentative electoral system and its unelected religious clerics in its bloated and entirely unelected House of Lords. However the power of the state to silence, imprison and execute critics of the establishment order has been gradually eroded, such that we can publish our republican sentiments, our anti-establishment political views and our non-conformist theological thoughts with little fear of being economically sanctioned, imprisoned or garotted by the monarchy-state-church nexus for airing such views.


The 19th Century heyday

The 19th Century wasn't just the heyday of the industrial revolution, it was an age of rapid public enlightenment and social progress: Libraries, educational institutions and museums sprang up all over the nation; education and basic literacy gradually became the norm rather than the privileges of the wealthy; and barbaric practices like slavery and child labour were abolished.

Against this backdrop of rising standards in literacy and freedom from oppression, Britain played host to an extraordinary array of political movements. Liberals, anarchists, religious non-conformists, Owenites, socialists, communists, libertarians, laissez-faire capitalists, free-thinkers, mutualists and syndicalists all competed for attention from an increasingly literate population.

Non-conformists and hetorodox political thinkers had a much more difficult time on the continent. A look at the lives of many of the most interesting European political thinkers of the age (Proudhon, Bakunin, MichelGalleani, Malatesta, Blanqui ...) reveal lives interrupted by prolonged periods of imprisonment and exile. Britain was not free of political persecution by any stretch of the imagination, however the more liberal environment meant that London became a safe haven for all kinds of heterodox political thinkers including Marx, Engels, Herzen, Mazzini, Kossuth and Kropotkin.

In response to a furious letter from the Spanish embassy decrying Britain for harbouring political exiles in 1871 the British government declared that "all foreigners have an absolute right to enter the country and remain", and that they have the same right as British citizens to be "punished only for offences against the law".


Public intellectuals

The growing tolerance of unorthodox political and religious thought in the United Kingdom led to the rise of countless public intellectuals, many of whom worked to educate the public through the publication of essays and literature and were deeply involved in the political affairs of their age.

It's impossible to provide a definitive list of 19th Century public intellectuals, however naming just a few high profile individuals from the period goes to show how intellectuals were held in high public regard: 
John Stuart Mill, William Morris, George Holyoake, Alfred Russel Wallace, Charles Darwin, Thomas Henry Huxley, Francis Galton, Herbert Spencer, Alfred Marshall, Alexander Graham Bell.

The high public profile accorded to intellectuals continued well into the 20th Century. It's unlikely that anyone but the most determined early-mid 20th Century dullard would have managed to remain completely unaware of the writing and political views of the likes of 
H.G. Wells, Bertrand Russell, George Bernard Shaw, C.S. Lewis, John Maynard Keynes, George Orwell, Aldous Huxley...

The late 20th Century onwards


Who are the great British public intellectuals, philosophers and political theorists of the 21st Century?


There are obviously a great deal of very intelligent people in Britain, who could rightly be considered public intellectuals, however, it seems to me that very few of them have a large enough public profile that they would be recognisable to the majority of people.

Tim Berners-Lee deserves enormous credit for inventing the World Wide Web, but how many people could tell you what he was famous for just from hearing his name or seeing his photograph? The same goes for a number of other modern day intellectuals. What percentage of the general public could even identify the likes of Robert Skidelsky, Ian McEwan, Martin Amis, Tariq Ali, Susie Orbach, AC Grayling, Andrew Motion, Alan Bennett, Mary Beard or Roger Penrose?

The only high profile public intellectual I'm completely confident that the majority of British people could identify is Stephen Hawking.

When it comes to politics the situation is utterly embarrassing. When a revisionist halfwit like Michael Gove is considered to be one of the great intellectuals of the Tory party, and a the likes of Tristram Hunt and Gordon Brown are lauded as the great intellectuals of the Labour Party we know that we're in trouble. 


Anti-intellectualism and stupification

The United Kingdom has turned from a country that celebrated intellectualism to one that treats it with suspicion and contempt, especially if intellectuals (these days so often prefaced with "so-called" by the tabloid press) dare to voice a political opinion that goes against the established orthodoxy. When people speak out against the right-wing economic orthodoxy that has dominated UK politics for almost four decades, they are hounded by the tabloid press.
In my view an awful lot of public intellectuals are afraid to speak out against the right-wing economic orthodoxy for fear of the abuse they'll suffer from the right-wing press. 

The hounding of public figures who speak out against the orthodoxy is not the only way in which the tabloid press helps to control public debate. Newspapers like The Sun and The Daily Mail are deliberately written in the vocabulary of children in order to make their glib right-wing political tropes accessible to even the least intelligent adults. It's not just conjecture that the tabloid newspapers have contributed to the stupification of the British public either. Research has shown that reading a tabloid newspaper is worse for your vocabulary than not reading a newspaper at all, and that "the presence of tabloid newspapers in the home during childhood has been linked to poor cognitive attainment at age 16".

It's not just the tabloids that are to blame. Generations of politicians have turned the UK education system into an absolute shambles, where children who attend state schools are denied the absolute basics in critical thinking, philosophy and economics and taught that correct answers are handed down to them by authority to be uncritically rote learned and regurgitated upon demand in order to obtain rewards in the form of grades. It obviously makes no sense for the establishment to teach future generations critical thinking skills and basic macroeconomics, otherwise they'd grow up to ask questions and find out that their own rational self-interest is not best served through continued support for an out-of-touch establishment minority that is clearly intent on hoarding political power for their own class and enacting ideologically driven economic policies that enrich the already rich at the expense of everyone else.

The declining standard of political debate
 

The standard of political debate in the UK continues suffering a steep decline. People seem to no longer even understand the meanings of fundamental political words and phrases. Terms like "communism", "anarchism", "liberalism" and "socialism" have been weaponised, so that simply calling somebody a "communist" is somehow considered sufficient to discredit their entire position, without any obligation for the term communist to even be understood, let alone it be demonstrated that the accused actually subscribes to any of the numerous communist ideologies.

We live in a world where hurling words like "communist" around as if they're crude insults rather than political words with specific meanings or publishing pictures of the opposition leader looking odd while he eats a bacon sandwich are considered dynamite by the political right. Meanwhile many on the left seem to think that simply calling David Cameron a "pigfucker" (instead of criticising any of the countless socially and economically destructive policies Cameron's government have inflicted on the UK) is a debate winning tactic, rather than the kind of crude unsubstantiated assertion that makes the left look like a bunch of ranting extremists.

The rise of someone like David Cameron was pretty much inevitable given the stupification of the electorate. Cameron has proven himself an egregious liar, an abuser of the English language, a snide and manipulative person who refuses to answer direct questions or act in good faith and a coward who is terrified of having to think on his feet (hence his refusals to participate in unscripted public debates). However, despite all of this evidence that David Cameron is a fundamentally dishonest charlatan and clearly the least intellectually capable Prime Minister in living memory, somehow over 11 million people saw fit to actually vote in favour of keeping him in power!


It doesn't matter whether you agreed with the likes of Benjamin Disreali, John Stuart Mill, Winston Churchill, William Beveridge or Clement Attlee, it's pretty much impossible to argue that they were stupid people who just read out a load of scripted nonsense and ran away from any form of actual debate. These were intelligent men of principle who knew what they were talking about and were unafraid of open honest debate.

I'm not Tory but I'm pretty damned sure that the likes of Disreali and Churchill would be utterly appalled that the Conservative party is now being led by such an intellectually stunted, snide and downright dishonest chancer like David Cameron.


What can be done?

It seems that little can actually be done as long as the parliamentary authorities allow David Cameron to continue repeatedly evading questions and blatantly lying to parliament, and as long as the mainstream media refuse to hold David Cameron and the Tories to account for their litany of lies and broken promises to the public.

David Cameron can sign a "contract with the electorate" then simply have every trace of it deleted from the Tory website when it became clear that they'd broken nearly every pledge it contained; he can lie to parliament that the UK has been "bankrupted"; he can lie to the public that the Tories are reducing the national debt (when they've actually created more new debt since 2010 than every Labour government in history combined); he can use all kinds of Orwellian language to claim that black is white and white is black; and he can lie over and over and over again about the leader of the opposition. He can do all of this and get away with it because virtually nobody holds him to account for it.

Even if David Cameron is removed from power, if the means to lie, distort, adopt bad faith positions and spout logical fallacies remains so desperately unchallenged, his successors would be fools to limit themselves to honest, good faith debate.


The poet WH Auden once wrote that "Whatever the field under discussion, those who engage in debate must not only believe in each other's good faith, but also in their capacity to arrive at the truth". Surely nobody believes that it's possible to engage in this kind of honest debate with the likes of David Cameron? Surely nobody believes that David Cameron would voluntarily stick to the truth, argue in good faith or answer direct questions (rather than repeatedly evade them with a load of heavily scripted and largely inaccurate tabloid style rhetoric and snide political point scoring).

Unfortunately, until the public begin to demand a higher level of public debate from their politicians, any politician who does try to adopt the traditional British form of debate (by limiting themselves to 
avoiding lies and smears, arguing in good faith and actually answering the questions they're asked) would be voluntarily tying their hands behind their back while allowing other less scrupulous politicians to repeatedly punch them below the belt to cheers of delight from the tabloid-minded masses.


 Another Angry Voice  is a "Pay As You Feel" website. You can have access to all of my work for free, or you can choose to make a small donation to help me keep writing. The choice is entirely yours.






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Monday, 13 July 2015

The delusion that the modern economy is a capitalist one



I'd like to begin this article with a quote from the legendary economist John Maynard Keynes about the role of speculation in the economy:
"Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes the bubble on a whirlpool of speculation. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done." The General Theory of Employment, Interest and Money, 1936
It is only necessary to have the slightest familiarity with the current state of the global economy in order to understand that these days, real enterprise has been totally subsumed under a massive tide of reckless speculation. 

In order to illustrate this point I'll provide a few facts in bullet points:
  • It's very difficult to accurately assess the size of the global derivatives market because the gambling that goes on there is almost completely unregulated. Estimates range between $710 trillion and $1.2 quadrillion. To put these figures into perspective, the GDP of the entire world in 2014 was $77.3 trillion, which is only slightly over ten percent of the lower estimate of the size of the global derivatives casino.
  • The global financial sector insolvency crisis of 2007-08 was caused when banks and financial institutions all over the world realised that they had been gambling on highly complex sub-prime junk investments, that were packaged up and sold as AAA grade investments even though the people who designed them referred to them as "dog", "shit bag" and "shit breather" and then used Credit Default Swaps to bet against the very same products they were selling to their own clients.
  • The scale of the pre-crisis gambling was so bad that it took the biggest state sector interventions in history from the UK and US governments to save the financial sector from the bankruptcies they so richly deserved (funny how the free market anti-state intervention dogma goes completely out of the window when it's reckless bankers instead of factory workers in need of help isn't it?).
  • These days the vast majority of financial trading isn't even done by human beings any more. It's done by complex computer algorithms that can conduct vast numbers of trades in tiny fractions of a second (High Frequency Trading). Many people still seem to imagine the stock markets like they were in the 1980s with a load of sweaty and aggressive traders shouting buy and sell orders. Those days are well and truly gone. Nowadays the majority of financial trades are nothing more than extremely rapid computerised gambling.
  • Not only is speculation completely rampant in the modern economy, the entire system is skewed heavily in the favour of speculators. Just think about the fact that UK interest rates have been held at an all-time record low of 0.5% since March 2009. How many recklessly over-leveraged financial institutions and buy-to-let speculators would have gone under if interest rates had been anything like normal for the last six years? How much has this unprecedented period of all-time record low interest rates cost savers, pension funds, insurance funds and workers?
  • The private banks now create 97% of all money out of nothing at the moment they make the loan (you knew that right?). Of all of this electronic bank created money, only 8% gets loaned to businesses outside of the financial sector. The vast majority of the money created by the financial sector gets pumped into financial speculation (32%) and house price speculation (31%).  If we understand capitalism as capitalists using the means of production to create output and profits, then it's clear that the vast majority of the economic activity in the modern economy actually has nothing to do with capitalism. We're living in a post-capitalist speculation frenzy.
It seems that John Maynard Keynes fears about the capitalist economy turning into a dangerous whirlpool of speculation have come true. As usual Max Keiser has a compelling way of describing the situation:
"The means of production, which used to mean building factories and hiring labour, something that Marx talked about in his work, is no longer valid to describe the global economy. The means of production are now algorithmic trading."
Anyone who thinks that the modern economy is a capitalist one is simply betraying the fact that they either have a faulty understanding of the modern economy, or that they're unfamiliar with the actual definition of capitalism (perhaps using the word as a loose synonym for distinct concepts like "business" or "trade").

 Another Angry Voice  is a "Pay As You Feel" website. You can have access to all of my work for free, or you can choose to make a small donation to help me keep writing. The choice is entirely yours.






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Thursday, 4 September 2014

Recommended reading - Economics


Several people have written to me asking if I could suggest some books for them to read in order to broaden their understanding of economics. Instead of answering personally each time I've decided to combine the time I've been spending on writing short individualised responses into writing this more comprehensive article.

Hopefully it will be of some use to you, whether you specifically asked me for some recommendations or not.

Who this guide is for
         
         
This guide is intended to be useful whether you are an aspiring economics student, a current student disillusioned with the way in which your economics department uncritically pushes the failed neoclassical economic orthodoxy, an economics graduate who is keen to continue broadening their horizons, or someone with no background in economics at all who would simply like to learn more about the subject.

Many of the people to have asked me for reading advice are already economics students, economics graduates or people intending to study economics at university. It is a very positive sign that these guys have realised that there is a lot more to economics than the narrow mainstream neoclassical orthodoxy that has infected and overrun the majority of economics departments, and that they're looking for answers elsewhere.

Several of the other people to have asked me for economics reading tips have admitted that they have very little understanding of economics, which is hardly surprising given that economics courses aren't taught in the majority of UK state schools, meaning that the vast majority of the 93% of state educated kids end up leaving school as functional economic illiterates.

This public lack of basic economic literacy is extremely beneficial to the ruling establishment because it allows them to use all kinds of absolutely ludicrous economic fairy stories to justify their harmful economic policies.

I feel proud that people from many different walks of life have seen me as a reliable person to turn to for advice, and it makes me glad that there are still people out there who want to understand economic issues from different perspectives to the ones prescribed by the neoclassical orthodoxy.

Ha Joon Chang

A very good starting point for economics novices is the book "23 things they don't tell you about capitalism" by Ha Joon Chang. This is a brilliantly written book that rigorously deconstructs some of the many myths and outright fallacies that underpin conventional economics. In my opinion the best thing about the book is the way that Ha Joon Chang uses every day language to explain often quite complex economic ideas. Even if you feel that you're well aware of the flaws in orthodox neoclassical economics already, 23 Things is still worth a read because in my view it's a masterclass in discussing economic ideas in accessible language, which is an incredibly important skill.

I am looking forward to obtaining a copy of his latest book

Inside Job

Another good starting point is the 2011 film "Inside Job" directed by Charles Ferguson which provides an explanation of how the 2007/08 global financial sector insolvency crisis actually came about (spoiler alert - the UK Labour party was not entirely to blame for the global banking crisis as the Tory press would have you believe).

The truth is that the global financial sector insolvency crisis was caused by a toxic blend of greed, corruption, conflicts of interest, poor regulation, moral hazard, ideologically driven deregulations and an alphabet soup complex financial products.

The film gives a great overview of the economic meltdown that would have completely wiped out Wall Street and the City of London without the biggest state subsidies in history to bail out the insolvent financial sector institutions. The book of the same name provides a wealth of more detailed analysis.

Steve Keen

"Debunking Economics" by the Australian economist Steve Keen is an exceptionally good critique of the absolute nonsense that underpins the neoclassical economic orthodoxy. It's harder going than the work of Ha Joon Chang or Charles Ferguson, but it's really worth the effort. A must read for anyone who is intent on looking at economics from outside the narrow spectrum of the neoclassical orthodoxy.

Heterodox economics

Steve Keen talks a lot about heterodox economics in Debunking Economics. If you're intent on learning more about economics it's very important indeed to understand that there is no single unified subject called "economics". There is mainstream economics which is based on the flawed and assumption riddled neoclassical orthodoxy (more like a religious faith system than a social science), and then there are countless other fields of economics which are often classed together under the umbrella "heterodox economics".

There is actually very little in common between the various fields that are lumped together as "heterodox" other than that they have been pushed to the margins by the now completely invalidated, but still widely accepted, neoclassical orthodoxy.

This PDF provides a good overview of the myriad fields that make up "heterodox economics"
.

Behavoural Economics

Of the many promising heterodox economic fields, I'm particularly interested in behavioural economics, which stands in opposition to the neoclassical position that accurate economic models can be built upon the assumption that human beings act in their own rational self-interest. There is a huge amount of evidence to prove that in reality human beings actually make most of our decisions on an intuitive, non-rational level. Behavioural economics is about trying to work actual human behaviour, and human cognitive processes into our economic models.

If mainstream economics is ever going to make the progression from a pseudo-scientific quasi-religious ideology riddled with ludicrous assumptions and unquestionable core beliefs to become a legitimate social science, I'm certain that developments in behavioural economics are going to play an important part.


Economic inequality

Inequality has always been a theme in economics, but with the rise of the neoclassical orthodoxy it fell out of favour. In recent years inequality has made quite a comeback, so much so that two of the bestselling economics books in recent years directly addressed the theme. "The Spirit Level" by Kate Pickett and Richard Wilkinson popularised the theory that too much inequality is extremely bad for the economy, and the French economist Thomas Piketty further developed the theme that growing inequality is a major threat to economic stability in his book "Capital in the 21st Century".


The 2013 documentary "Inequality for All" featuring Robert Reich is certainly worth some 90 minutes of your time too.

You've got to learn some Marx

Even if you are strongly inclined to disagree with Marxist and socialist ideas, you've got to accept that Marx was a genius of his age and at least look at some of his work.  Many of Marx's criticisms of capitalism hold as true today as they did when he wrote them in the 19th Century.

Das Kapital
and the Communist Manifesto are both freely available on the Internet, so you've got no excuse for not at least taking a look. My personal view is that Marx's critiques of capitalism were immeasurably superior to his predictions about how capitalism might be overthrown. However I urge you to look for yourself and make up your own mind about Marx's ideas rather than blithely accepting other people's parsed, paraphrased, misrepresented or just completely made up interpretations of his work.

If you're interested in finding out a bit more about who Karl Marx actually was, Francis Wheen wrote a decent biography.

But, you should probably read some Rand too

In order to gain a more complete understanding of an issue, it is often necessary to read things with which we strongly disagree. Thus you should probably read some of Ayn Rand's demented frothing. Rand had a powerful influence over the reactionary right-wing in the US, in fact her book "Atlas Shrugged" is still regularly appears on bestseller lists in the US.

One of Rand's inner circle of sycophantic acolytes Alan Greenspan went on to become Chairman of the US Federal Reserve between 1987 and 2005, where he unleashed wave after wave of ideologically motivated deregulations that culminated in the 2007-08 global financial sector insolvency crisis. Reading some of Rand's raving pseudo-philosophy helps us understand the ideological roots of the cult of the individual, greed-is-a-virtue, privatise everything, neoclassical mentality that has now infested the majority of economics departments, central banks, multinational organisations and political parties on the planet.

Orthodox economics

As a sceptic of the mainstream economic orthodoxy and free market dogma I'd caution people to use their critical judgement when reading the work of economists like Freidrich Hayek, Ludvig von Mises or Milton Friedman, but then you should strive to keep your critical judgement in play whatever you read, whether you're inclined to agree with it or not.

I'd also suggest reading some Adam Smith (perhaps Wealth of Nations) and considering how different many of his economic ideas are to those of the modern economic right who have so often championed him.

John Maynard Keynes

It's bit difficult to know what to suggest with Keynes, he was an incredibly influential economist, but his writing style can be somewhat impenetrable. There have been so many interpretations of his work that several distinct schools of Keynesian economics have developed 
(Neo-Keynesians, Post-Keynesians and New Keynesians).

If you are formally studying economics, make sure you have established some knowledge of Keynes for yourself before you learn someone else's interpretation of his work. Here's a link to Keynes' General Theory of Economics, and here's a fairly comprehensive list of books that have been written about him.

  
The capitalist "doves"

There are many economics commentators who seem to accept most of the core unquestionable faith positions that underpin conventional economics, but who don't fully subscribe to the extreme 
end of the capitalist spectrum (deregulate and privatise everything, massive tax cuts for corporations and harsh austerity for the masses). These guys are by and large supporters of the neoclassical capitalist orthodoxy, but they want to tinker with some of the ancillary beliefs to make capitalism a bit fairer and a bit less ruthless.

There are two positions to take on these guys. One is summed up with the Chomsky quote "The smart way to keep people passive and obedient is to strictly limit the spectrum of acceptable opinion, but allow very lively debate within that spectrum." One might say that economists like Paul Krugman, Jeffrey Sachs and Nouriel Roubini are just providing the lively debate within the limited spectrum that is bounded by "capitalism rules OK". 

My personal view is that it is often worth reading what they have to say, despite the fact a lot of their core assumptions are extremely dubious.

Nouriel Roubini was one of the tiny minority of economists to accurately predict the 2007-08 financial sector insolvency crisis, so his book "Crisis Economics" is worth a read if you want to check out what one of these "capitalist doves" have to say.


Lesser known economists

                     
In my view some of the most interesting economists are people who have been largely forgotten, and rarely ever make appearances in standard economics courses.

Some of most interesting economists I've come across include Pierre-Joseph Proudhon (French socialist and founder of mutualism)  Henry George (American left-libertarian, advocate of Land Value Tax and Basic Income),  Antonio Gramsci (Italian Marxist, defined the term "hegemony") Silvio Gesell (German anarchist and egalitarian, founder of Freiwirtschaft) Kenneth Boulding (Anglo-American economist, philosopher and Quaker, pioneer in systems theory and evolutionary economics) and Hyman Minsky (American Post-Keynesian, developer of the financial instability hypothesis).

I obviously don't agree with everything these guys came up with, but as is often the case, many of the most interesting and challenging voices have ended up being pushed to the sidelines in favour of those who know how to tell the rich and powerful exactly what they want to hear. In the case of economics it's clear that the ruling establishment love to hear that greed, selfishness, lack of empathy, hunger for power and pure 
self-interest are not vices, but virtues.

Economics doesn't exist in a vacuum

Economics overlaps with countless other 
fields of human endeavour. In fact many of the great economists throughout the ages have been recognised as profound thinkers in other important subjects aside from economics. These leading economic thinkers were more than just professional "money men", they were renowned philosophers, scientists, inventors, statesmen, political theorists, activists, mathematicians, social commentators and businessmen as well.

In my view it is of fundamental importance to try to synthesise what we learn about economics with what we already know of the world. In my case I've devoted much of my time to the study of philosophy and politics, which is convenient because these subjects are t
wo of the most natural bedfellows of economics (in fact the three are often formally combined in PPE university courses).
   
A better understanding of philosophy can provide the cognitive abilities to identify and criticise structurally incoherent economic ideas. A better understanding of political history and familiarity with common political structures and processes helps to clarify how abstract economic theories have been applied in the real world of politics.

The advice to read up on philosophy and politics is a bit vague, so I'll provide details of a few (hopefully) interesting things that broadened my perspective on how economic theories can interact with the subjects of philosophy and politics. Perhaps they may be of some use to you.

  • Bertrand Russell - "Proposed roads to Freedom": If you want to make yourself smarter, read some Bertrand Russell. This is as good a place to start as any.
  • Naomi Klein - "The Shock Doctrine": This book is a meticulously written history and critique of neoliberal politics and economics.
  • Noam Chomsky - Understanding Power: Chomsky is one of the great living intellectuals. It doesn't matter at all whether one agrees with Chomsky's politics, only a fool would claim that the man isn't a genius.
These suggestions are possibly of little use to people of markedly different experiences and mindsets to my own, so if you're more inclined to take a scientific, literary or perhaps business oriented perspective in life, try to consider the crossovers between particular economic ideas and aspects of your other fields of expertise.

Economics needs more thinkers with diverse "real life" experience and new perspectives to offer. What it certainly doesn't need is any more of the kind who have devoted the majority of their study hours to the uncritical rote learning of neoclassical economic dogma and little else.
             
The Keiser Report

                           
Max Keiser is a controversial figure, but in my view he's probably done more to popularise economics reporting than any man since the dawn of the television age. Max and his now wife Stacey Herbert present the first half of the thrice weekly Keiser Report show, and in the second half of the show Max interviews a guest, often someone with economics expertise, but occasionally others too. Some of his more offbeat guests have included 
Frankie Boyle, George Galloway, Kerry-Ann Mendoza (AKA Scriptonite Daily), Russell Brand and Mark McGowan (AKA The Artist Taxi Driver).

I don't see eye to eye with Max Keiser on everything, he's too much of a "gold bug", he is too keen on the Austrian school of economics and he doesn't interview nearly enough left-libertarians for my liking. But one thing is for sure, The Keiser Report is guaranteed to give you food for thought, especially if the guest is an interesting one.

If you watch nothing else of the Keiser Report, at least try a couple of episodes featuring the aforementioned economist Steve Keen (episode 4, episode 77episode 226, episode 418episode 500).

                  
Tax-Dodging and Capital flight

Tax-dodging and capital flight are two important subjects in contemporary economics. I've written short introductory articles on both of these interrelated subjects. If you would like to learn more about the alarming scale of tax-dodging, and why it is such a major economic problem you could read "Treasure Islands: Tax havens and the men who stole the world" by Nicolas Shaxon, or you could take a look at Richard Murphy's Tax Research UK blog or the Tax Justice Network website.  
                   
Rethinking economics
             
Rethinking Economics is a global movement to promote pluralism and critical thinking in economics courses. The movement arose out of a protest by Manchester University students against the uncritical teaching of the neoclassical economic orthodoxy in their economics department, despite the fact that huge swathes of neoclassical economic theory have clearly been completely refuted by the global financial sector insolvency crisis and the massive state bailouts. 
The Manchester students are called The Post Crash Economics Society, and in 2014 they won  university society of the year at the 2014 NUS Awards.

Positive Money

Positive Money is a movement which attempts to educate the public about the nature of money, how most of it is created out of nothing by private banks and rented out to the public as interest bearing loans, why this is a problem (inflationary bubbles and ever increasing levels of debt), and what they propose to do about it (giving monopoly power to create money to a kind of central bank-politburo).

My view on Positive Money is surprisingly similar to my view on Karl Marx. They have correctly identified flaws in the economic system and have attempted to inform the public of the problems - which is highly commendable, but their proposed solutions leave quite a lot to be desired.

Whatever your views on the nature of currency, Positive Money are definitely worth keeping an eye on.

     
My own work
 
I have written several articles on economic subjects, I suppose this is one of the main reasons that people have asked me for advice on economic matters. So my economics articles are probably the main reason that this article even exists.

I have written about many subjects ranging from the absolute basics (the difference between a debt and a deficit) through economic ideas that lots of people tend to grasp intuitively without realising there are specific economic explanations (Marginal Propensity to ConsumeHidden InflationFiscal Multiplication) to much more complicated things (Information AsymmetryCredit Default SwapsQuantitative Easing).

I have also written a number of articles on Universal Basic Income and I intend to write a lot more about alternative currencies at some point in the future ...


Social media

I have set up a Twitter list of interesting economics related accounts. Feel free to do a spot of cherry picking of interesting accounts to follow, or to suggest other accounts you believe should be added to the list.

              
Finally

I hope this short guide to learning more about economics has been of use to you. 


If you would like to offer more economics recommendations in the comments section, please go ahead. 



 Another Angry Voice  is a not-for-profit page which generates absolutely no revenue from advertising and accepts no money from corporate or political interests. The only sources of income for  Another Angry Voice  are small donations from people who see some value in my work. If you appreciate my efforts and you could afford to make a donation, 
it would be massively appreciated.


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ANOTHER ANGRY VOICE    
    
The "What is ... ?" series
           
Margaret Thatcher's toxic neoliberal legacies
            
Who is to blame for the 2008 financial sector insolvency crisis?
              
What is wage repression?
           
The JP Morgan vision for Europe

           
Workfare, neoclassical economics and tabloid mindsets
           
                 
                
Tony Benn and the neoclassical orthodoxy
             

Friday, 25 October 2013

Absolute equality and the pedantic left

There are some, that I call "the pedantic left" who seem to prefer the idea of a permanent neoliberal crony capitalist dystopia (where the cultural hegemony dictates the definition of "socialism" is akin to something like "pure evil") to the idea that they might have to compromise with other leftists that have slightly different interpretations of what "socialism" might actually mean, so that together they can build solidarity and fight back against the ever accelerating inequality imposed by the crony capitalist establishment.

In my view this abandonment of solidarity in order to engage in pedantic left-wing infighting is one of the big reasons that the right-wing crony capitalist establishment has managed to increase inequality so dramatically and to build and reinforce such a strong cultural hegemony in the first place.

Absolute equality


Distribution of resources

The subject of this article has been on my mind for some time, but an argument with a couple of socialists over the definition of the word "socialism" has pushed it to the front of my queue of articles to write.

The argument is this: I came across an American video on wealth distribution which defined "socialism" as absolute equality, where the poorest person in society gets absolutely the same as the richest person in society (see images). The rest of the video was quite interesting so I posted it on the Another Angry Voice Facebook page with a disclaimer about the absolutist equality stance being a complete straw-man misrepresentation of what "socialism" actually means. 




In my view socialism means that people should have equal access to fundamental resources like education, health care, welfare, energy, finance and sufficient staple resources like food and water. This means that such fundamentals mustn't be monopolised or commodified by rent seekers. To put this into very simple terms; my view of "socialism" is that society should provide people with equal access to opportunities and equal access to fundamental resources, not ruthlessly enforce absolute equality in everything (no matter how much or little the individual is prepared or able to contribute to society).


Several angry socialists came along to condemn my view of socialism as "facile" in defence of the absolutist equality position I was criticising. The problem of course is that the absolutist equality stance is obviously a lot more "facile" than a system that provides equal access to fundamental resources (health care, staple resources, energy, welfare) and opportunities (such as education and finance), but allows economic freedom to pursue non-fundamental commodities (consumer products, arts, literature, modern technology, entertainments, luxury goods, Pigovian products ...).

One of the very easy to grasp criticisms of the absolutist equality position is that some people want commodities that others don't. Some people want 64" flatscreen televisions and others don't (because like me, perhaps they barely watch TV or play computer games). I don't want a massive flatscreen TV, but I have absolutely no problem with others aspiring to ownership of commodities that I don't want. If they want to work a bit harder, or for a few hours longer to acquire the luxury item I don't want, then that's absolutely fine by me, just as the guy with the TV is probably quite happy that I work a bit harder or longer to acquire the science fiction books that he might have absolutely no interest in owning.

Under the absolutist equality definition of socialism either 64" screens (and my science fiction books) would have to be provided to everyone (even those that don't want them - a waste of resources) or they'd have to be banned (totalitarianism). The only other option would be to devise a system which determines how much relative utility is provided by each non-essential commodity, which would rely on the same kind of aggregation problems as neoclassical economics does, and would result in the creation of a vast and inefficient redistributive bureaucracy (is it even possible to determine how many science fiction books create the same level of utility as a big telly? Would a state administered system that expends resources on making such arbitrary determinations result in the most efficient use of resources?).

If you think equal access to basic resources, but freedom to pursue non-essentials is more "facile" than absolutist mandatory equality in absolutely everything, you either haven't thought about it very much or you've misunderstood the meaning of the word "facile".

The value of labour


The next problem with the absolutist equality stance is that it does something that no true socialist would accept; it reduces the value of labour to zero.

One of the most obvious problems with the idea of absolute equality is the fact that all labour would have to be given the same value. The workaholic manager would earn the same as the laid back shop assistant; the highly trained engineer would earn the same as the unskilled labourer; the educated expert would earn the same as the anti-intellectual that refuses to learn new skills; the worker in a dangerous or highly stressful job would earn the same as the worker in a safe or extremely relaxing job. To the vast majority of people, such a system would be transparently unfair. If your system contradicts the common-sense view that the hardworking deserve more than the lazy, the educated deserve more than the uneducated and that jobs in which the individuals risk their health or their lives deserve some form of danger compensation, then you will never be able to enforce such a system without resorting to totalitarianism.

The idea that all labour is equal is a huge problem, but there is a bigger problem still. If everyone is to get exactly the same whether they choose to work or not, then the value of labour is reduced to zero (in financial terms) because it classifies labour as having exactly the same value as no-labour. If the person that chooses not to contribute gets exactly the same as those that choose to work (in a difficult and dangerous jobs to fun and easy ones), then the value of labour is reduced to zero, meaning that there is no financial incentive to work at all. Why would anyone get up in the morning to go and do a dangerous or unpleasant job if they were entitled to exactly the same share of resources if they just stayed at home and did nothing?

The only way an absolutist equality system could possibly work is if labour was made mandatory (for those that are able), because without labour, society would cease to function. But how would it even be possible to force people to work in a system which explicitly prohibits financial coercion?

Absolute equality is the same kind of nonsensical and unworkable absolutist gibberish as the extreme-right view that deregulated markets are perfectly efficient, which is the reason that I choose to believe in a form of socialism that provides for people's fundamental needs, eradicates poverty and removes barriers to opportunities through education and access to finance, but which takes into account the value of the social contribution of the individuals and provides the individual with the liberty to acquire non-essential resources, which therefore creates the incentives to work and to contribute to society.

I believe that the absolute equality position is an absurd caricature of what socialism means. It is such an absurdly unrealistic stance that you're actually undermining the meaning of socialism if you believe in such nonsense and proclaim yourself a socialist. You're not a socialist, you're not even a Marxist (Karl Marx believed that incentives and class hierarchies would still exist within the socialist society) you're an absolutist egalitarian.


Absolutism vs compromise

Returning to the subject of "the pedantic left", it's fair to say that the market socialist (who has a somewhat similar definition of socialism to my own) and the absolutist egalitarian have something in common. They are both strongly opposed to the crony capitalist cultural hegemony and the discredited neoliberal pseudo-scientific economic models that are used to to justify the rent-seeking behavior and outright corruption of the wealthy establishment.

Surely it makes sense for the opponents of crony capitalism to put their differences aside and agree that the most important thing in the immediacy is to come together in solidarity to oppose the cultural hegemony of the establishment?

If you believe in the absolute equality definition of socialism, surely it is better to compromise with market socialists (and other left-wing factions), because a market socialism system is far, far closer to your absolute equality ideal than the vast and rapidly growing inequalities of the current neoliberal socio-economic paradigm.

The problem is that many on the left fail to see it this way, and refuse to co-operate with anyone else on the left who has strayed from their interpretation of "true socialism". One of the most visible examples of this is that way that several members of the new left wing group Left Unity have expended their energies attacking and undermining the Green Party, rather than concentrating on the development of a coherent set of left-wing policies and a powerful social justice narrative to promote their own party.

Instead as attacking the Green Party as "not left-wing enough", it would surely make more sense for Left Unity to examine what the Green Party have done right in order to break into the closed shop of orthodox neoliberal establishment politics that is Westminster, and to identify areas of agreement in which the two parties can co-operate.

If the left spends it's time and energy bickering and infighting, they simply allow the crony capitalist establishment to continue strengthening and reinforcing their cultural hegemony.


Leftist solidarity


There are many examples of diverse leftist groups coming together in solidarity to form powerful political organisations, I'll give a couple of brief examples.

Labour

The Labour party in the UK was born of co-operation between numerous trade unions and leftist political groups. Although Labour was never perfect, and has now been usurped by adherents of orthodox neoliberalism, it did achieve a number of important things that the vast majority of left-wing people can appreciate, including the establishment of the National Health Service, the massive improvements to the social safety net, legal aid, the post-war improvements in housing, and the establishment of the economic conditions that led to the unprecedented general prosperity and social mobility of the 1950s, 60s and 70s, which have subsequently been eroded away by over three decades of neoliberal pseudo-economics.

Syriza
The Greek political party Syriza (the coalition of the radical left) was formed as a coalition of various leftist groups in 2004. The groups that make it up include Social Democrats, Marxists, Trotskyites and the Green Left. In the wake of the Greek economic crisis and the economically destructive bailout conditions imposed by the IMF, the European Central Bank and the EU, they have risen to become the second most popular party in Greece and the main opposition in the Greek parliament. Since the last election in 2012 their popularity has improved again, meaning that if (when) the current coalition government fails, they will almost certainly form the next Greek government. Although they are extremely unlikely to impose a full-blownTrotskyite revolution, the Trotskyite faction must recognise that being part of a broad left-wing coalition is preferable to being a tiny minority party with no elected representatives at all.

The problem with co-operation is that when the views of several leftist organisations are aggregated, the result is not entirely pleasing to all of the participants. However, the result is usually a great deal better than a divided left bickering amongst themselves and allowing the right to maintain absolute control over society and the economy.

Conclusion

The self-defeating divisiveness of the left is deeply problematic but it is also amusing. The idea of representatives of a group called Left Unity expending their time and effort in attacking and undermining other left-wing groups is a laughable display of unintentional irony. Probably the most amusing parody of the factionalisation of the left is the famous Monty Pythons' Judaen People's Front scene from the Life of Brian, where they openly admit that the only people they hate more than their Roman oppressors are the various other anti-imperialist factions.

The only way that the left is ever going to be able to effectively fight back against the cultural hegemony of the neoliberal right, and begin reversing the trend towards ever greater inequality, is if we put our own differences aside and show some solidarity against the greater enemy.


Essentially, what I'm saying is that if you are unwilling to tolerate any left-wing views that are not almost identical to your own, then you're part of the problem, not part of the solution.

Another Angry Voice  is a not-for-profit page which generates absolutely no revenue from advertising and accepts no money from corporate or political interests. The only source of revenue for  Another Angry Voice  is the  PayPal  donations box (which can be found in the right hand column, fairly near the top of the page). If you could afford to make a donation to help keep this site going, it would be massively appreciated.