aquaticko comments on On Walmart, And Who Bears Responsibility For the Poor - Less Wrong

13 Post author: ChrisHallquist 27 November 2013 05:08AM

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Comment author: aquaticko 29 November 2013 04:14:26AM -1 points [-]

Sorry to make my first post on LW a political one, but I've been hearing too much about this discussion everywhere to stay out of it, here. I'll try to keep it short.

ChrisHallquist: I worry that this anti-Walmart meme could lead to an odd left-wing resistance to GBI/more lavish welfare state, since the policy would be branded as a subsidy to Walmart.

Quite honestly, I think this is a confused concern, or at least a misplaced one.

I'm a philosopher by education (again, my apologies), but an urban economist/macroeconomist by trade and hobby. I don't think I'm saying anything new or surprising in mentioning that, as industrial economic growth decline, and economic growth shifts to less labor-intensive service industries, there begins a decline the growth rate of the employment-population ratio. Assuming the typical level of population growth rate decline associate with this economic transition (i.e. Western Europe/North America fertility levels, not East Asian/European fertility levels), you end up with a large ratio of low-wage/high-wage laborers. Because people respond intuitively to the two population segments with more visibly-dispersed levels of income, by claiming that this is unjust, you start to get a popular movement for social welfare. The confusion/frivolousness should be becoming somewhat apparent.

The income dispersion which is a product of the development of the economic system which created it cannot be solved by that same system; this is what leads to calls for things like living wages and other types of income redistribution--or even just labor welfare generally--through government intervention. However, these interventions in a market built around the production of capital only serve to reduce its efficiency by introducing new inflexibilities in the market, e.g., if I'm looking to start up a restaurant, I can only do so provided I have enough money to satisfy OSHA regulations. If I don't have enough money to do so, I can't begin to produce capital through food service, which not only deprives me of profit, but deprives local workers of (theoretically) sharing in that profit. When economic growth slows and population growth doesn't, it's bad for everyone.

I'm pretty strongly socialist, but I'm willing to admit social welfare and capitalism simply don't go together...though maybe that's less surprising than it seems to me.

I suppose this just hits on the fact that I agree with what a few other people here have said: I don't think that people who are genuine libertarian capitalists can actually have conversations about socioeconomics with non-libertarian socialists. We have different consequences we're trying to reach, and knowing that, we can move on and not worry about convincing each other. Frankly, it leads me to respect libertarians totally, even if I absolutely disagree with them.

But American liberals, and most European social democrats, are inconsistent. Whether or not they know it, they believe that human welfare (whatever their preferred sources of utility are) is Good, but they refuse to use a system that produces it because they believe that system--socialism--is Bad, though in their defense, it's mostly because they misunderstand what socialism actually is (not that I'll lay claim to an absolute understanding). Because the morality they use is deontological in nature, you end up with people creating rules AND goals (the latter because humans are planning things), separately and simultaneously(ish), instead of deciding on one starting point and letting what comes naturally happen without interference.

Comment author: [deleted] 29 November 2013 01:52:46PM 1 point [-]

my first post on LW

Feel free to introduce yourself in the welcome thread and take the census/survey, if you haven't already.

if I'm looking to start up a restaurant, I can only do so provided I have enough money to satisfy OSHA regulations. If I don't have enough money to do so, I can't begin to produce capital through food service, which not only deprives me of profit, but deprives local workers of (theoretically) sharing in that profit.

I was going to say “Sure, fewer regulations means more, cheaper restaurants and more jobs for cooks and waiters, but also more cases of food poisoning -- and if you wonder why in a free market I couldn't just decide to avoid the kinds of restauraunt likely to give me food poisoning even if they're cheaper, I invite you to read Section 4 in this FAQ”, but reading on I gues you'd actually agree.