@CJDOUGLAS,
[QUOTE=CJDOUGLAS;138679]First it is important to understand that the Idea of Laissez-Faire Capitalisim is only 5 or 6 decades old and one should understand the full meaning and context of the phrase.[QUOTE]
If it is 5 or 6 decades old, as you say it is,....... than i am afraid it needs greater scrutiny, and would give a hard thought to it. At least the skeptics would.
[QUOTE=CJDOUGLAS;138679]The term was coined by Ayn Rand in expressing the political branch of her philosophy. A hands off aproach to capitalism where the government is limited only to defending a persons inalienable rights. The right to life, liberty, property and the persuit of happiness. No guarantees, only the right to attempt. Success is up to you.[QUOTE]
Frankly i detest, Ayn Rand and her philosophy eulogising Objectivism and Individualism. Her ideas followed a line of thinking which presumes that Ethics is a constant, and an ideal world devoid of conflict is possible. Her theory is a culmination of a feminine thought process of a Garden of Eden - an utopia of sorts. I assume all good authors including male authors especially of classics, start from this stand point. Although i enjoyed reading her, her writing styles and characters in her fictions were very interesting. I enjoyed the luxury of indulging in reading novels during my younger times.
But today, one realises that life is not a fiction. Although metephysics seems to argue through some of its proponents and enthusiasts that it may well be one. ......hah ha.
[QUOTE=CJDOUGLAS;138679]Under Laissez-faire capitalism these branches would be paid for in a number of different ways, one might be a voluntary tax, meaning that people would voluntarily pay for the services of these branches monthly for their use. Obviously large corporations and those who have alot to lose would be more than happy to pay for the service, or alternately supply their own protection. The cost of these services and the ammout of people paying for them would determine weather or not it would be possible for those who cannot afford the cost to recieve the benefit free of charge.
Another way is by charging a fee to recognize contractual agreements between business and citizens. The fee would cover all court costs, etc. and this would guarantee a hearing should someone default on the contract. You wouldn't be required by law to pay for the contract, but then there is no guarantee the government will hear your case.
How ever it runs people with a much greater understanding of government costs and economy would have to define the objective laws behind this to ensure that it was voluntary and not forced.
This is the essence of Laissez-Faire, a society absent of force.[QUOTE]
What a rosy picture you paint. I would have loved if it was possible, as the theory suggests it should be. According to MHO, there cannot be a society absent of force. Philosophers and authors should read history before proposing any drastic changes in economic systems.
Although i can understand that what you have written is basically a broad framework of the economic system within which a Laissez Faire society is supposed to function, i am sorry to say that it is not possible for reasons given below. The examples has many flaws.
1) Voluntary payment of taxes can happen in small nations, groups or village towns. Disparity in income, education, livelihood skills and techniques will contradict the feasibility of such arrangements, and absence of provisions under law.
2) large corporations will very well pay to protect their own interests, but would petty, small and medium businesse pay voluntarily, is the question. And what about daily wage earners, housewifes, and the labour class which i presume forms the bulk of the tax net. Sorry, such a strong ethical community of voluntary tax payers does not exist in large nations and countries. It may exist only on paper. It is not a viable option.
3) On contractual agreements, whereever it is not registered on payment of fees, unconstitional authorities will rise like the Mafia to resolve conflict of interests, Italy and In US itslef Chicago are good examples. To leave it to choice, which individualism proposes, will create anarchy in society.
[QUOTE=CJDOUGLAS;138679]In Laissez-Fiare there is a separation of the following, Church and State, Economy and State, Education and State, Science and State. The government would not be alowed, in any case, to interfere with any part of an individuals life unless that individual is infringing on another persons rights.[QUOTE]
If the state does not oversee Formal Education, there will not be any State.
If the state does not regulate economy, there will not be any state.
If the state doesnot regulate science there will be an Army of Clones.
And, may i ask, on whose authority and might would the 'govt will not be allowed' to interfere. No unjust governments have survived long. So the question does not arise. In normal circumstances in democracies like in US, Canada, Europe and in India, individual rights are not trampled upon as easily as it is been shown to for the sake of arguments. Universal suffrage, rotational system of governement, legislative apparatus, and judicial bodies creat enough checks and balances to safegaurd the basic human rights.
[QUOTE=CJDOUGLAS;138679]I noted that you breifly touched on ecological distress and that capitalism was to blame. However, It is important to understand that it is nonobjective laws already in place that have determined where we can dump garbage and what we can dump. These laws also determine what we can recycle and what we cannot.
While I do agree that things like over fishing, pollution etc. are harmful not only to the environment but also to human well being, it is our current system that has allowed these things to go unchecked.[QUOTE]
Unchecked!.........., and you propose that laissez-Faire system will 'CHECK' the problem of pollution and overfishing. Can you guanratee that it will never happen. If so, by what means?
At least, i am glad to hear that a Laisez-Faire system has inbulit exceptions for 'garbage dumping laws' to be effective. Any scope for punitive punishments or is it a civil offense?
[QUOTE=CJDOUGLAS;138679]Take for instance the oil crisis of the late 70s that you mentioned earlier. Several years after the crisis they had developed an electric car. Pressure groups from oil companies immediately saw the threat and rallied around law makers. The car never made production.
Even today it is difficult for car makers to produce nonpetrolium run cars. In a laissez-faire capitalistic society, an oil crisis would have prompted car makers to solve the problem.
"Oil is in limited supply, we do not control the oil supply so we need to find an alternative way to gain motive power without oil." The answer was the electric car. It would have and still can turn our dependancy on oil around. But it requires an uncoerced industry free from restriction.
Pressure groups could not exist in a free society. They would have no one to pressure into making these laws that prevent or hinder production. Interests would turn from securing investments by coersion to enhancing investments by innovation.[QUOTE]
In a world after WTO, and globalisation, even that excuse has gone. It was in 1996 or so when WTO was created. Even if i believe your story, that production of electric cars are restricted by US governement policies, what stops others in Japan & other countries to produce the same.
Sir, this is not the story. The story of electric cars have not taken off because of the simple reasons like its cost viability, technical viability, end-user friendly constraints, and other technical factors like speed etc. Even if all can be managed in future, and that may turn out to be advantageous to the environment, perhaps, but, however to blame the economic system for electric car nonavailability/failure to run on roads as expected has nothing to do with restrictive laws.
[QUOTE=CJDOUGLAS;138679]Another example of pressure groups can be given by discussing the birth of the rail road. At the time the government decided that the entire country should be connected by rail. A great idea, but that the time impractical.
The government offered subsidies to people in order to build these rail roads. It was tax money, not an individuals money. The stories of what occured are typical of what happens when government intervenes with the natural order of industrial expansion.
Some people took the subsidies and disappeared. Others built rail roads into places that had no need for rail at all. Others built rail and then, as was the case in California at the time, used law makers to create laws keeping other companies from competing in the industry.[QUOTE]
And so, subsidies or governement funds are bad ideas. A deficit in expenditure and revenue is also bad. So goes the theory. Your example demonstrates how businesses are not any better than individuals who run away with subsidy without giving anything back. It is corruption of moral values. If the people are currupt, so also will be the government.
Here, one should agree that socialistic policies sucks more out of the system in terms of mony and resources than a capitalistic one. The cost of resource management is highly skewed and drains out the nations bourses - a fallout seen in the esrtwhile Soviet Union, a economic reason for its eventual collapse.
But I wonder how laisez faire economy will run a Rail Network where there are no profits. ????
[QUOTE=CJDOUGLAS;138679]Behold the birth of a monopoly. Monopolies are only made possible by government intervention. A perfect example of this in todays society would be energy companies. All are government run or government subsidized. It is nearly impossible to start a competeing energy company in any state without government backing. Anyone who has tried has failed miserably.
In a laissez-faire economy there would be no government intervention. If you didn't like the way a company ran it self, you could get in on the action. If you can out produce him, if you can create a better product more efficiently and sell it for less you will likely either make him change his tune or he will fail. Monopolies cannot exist in Laissez-Faire solely because the individual has a choice not to patronize the company. They can get their energy anywhere, provided someone else is making it. If no one is making the product they are more then welcome to start doing it themselves.[QUOTE]
Where do you think the resources of energy-production comes from. Who owns resources like water, coal, wind, tides, oil? If the answer is Governement, than by the principle of Laissez faire theory the government has every right to get the profit for itslef, impose whatever rules are necessary on behalf of the people and in the interest of the people.
Talking about monopolies, have you heard about 'cartelisation'?
[QUOTE=CJDOUGLAS;138679]When nonobjective laws come into place that hinder production and competition, when laws are passed that set guidelines for production and hinder innovation you have stagnant industries that eventually fall apart. You get laziness and apathy. "Why do it a better way when the government inspector is only going to say its not up to code."
You call it old world to discuss innovation, but innovation is progress and innovation is what will solve the problem of waste management.
A fine example of government intervention destroying production lies in the Anti-Trust Laws. A Hazy undefined law that can be interpreted by anyone to mean anything and through history has. I encourage you to look deeper into Anti-Trust and decide for yourself. [QUOTE]
I do not want to be bogged down by specific laws etc. If there is a flaw, rectify it.
[QUOTE=CJDOUGLAS;138679]To touch breifly on Kant. Prior to his philosophy the world was caught up in the age of reason. Science was sweeping the globe. The wolrd was progressive and alive. It was due to the ideas fostered in the Rennisance and Enlightenment that lead to the birth of America and the industrial revolution.
While Kant was not an economic philosopher, he was a metaphysical, epistemological and ethical philosopher. His philosophy was very anti-reason. When this philosophy hit the U.S., hit men who were living off of a philosophy without a solid base, they were knocked from the base they did stand on. They could not defend reason, the father of capitalism and america.
What Kant did preach was collectivism, which bread philosophers like Marx and Hegil and bore Socialism, Statism, Nationalism and Communisim. It is the anti-reason Ideas and collectivist attitude that began to destroy this country and all it stood for.
When we began to create things like welfare and social security, things that scream collectivism, is when the country began its destructive course away from capitalism and into a Socialist, Statist mixed economy.
In life a mix of something bad with something good is always going to be bad. A little poison in your food is eventually going to kill you. The same goes in a mixed economy. Freedom cannot exist with controls, Capitalism cannot exist with controls. Throw in controls and eventually capitalism is going to die. We are watching it die now.[QUOTE]
I like your Logic........ now i know, America practised capitalism in the book while it was infact into a Socialist, Statist mixed economy.??
I also now come to reason why George Bush took days to take any effective action when Katherina devasted an american coast and city like never before.
According to the principles of Laissez Faire, the poor will die for the deserve to die since they have not fended against the wind and elements. However, it was heartenning to see George Bush Jr eventually reach New Orleans because as a believer his conscience would not have permitted him not to intervene.
I wonder what does Bush think of a Laisez Faire economy? Suppose SARS
virus hits America, wonder who should come to rescue whom. Rescue operation costs money, does it not? What about emergency services???
Just to disclaim a point, i would like to stress that i am not for controls. Controls is a very strong word, dirty in some circles, and notorious in other circles. I do not see anything wrong in a regulatory authority. The free reign of men are over. laisez faire economy is a flawed concept. It is a fairy tale. I intent to substantiate it in later submissions.
[QUOTE=CJDOUGLAS;138679]To touch on one more poit you made about consumerisim and capitalistic ideology I would like to say that consumerisim is a consequence of capitalisim. Responsible consumerism, educated consumerism would lead to a better system.
What is truly at fault here is the lack of rational judgement, the lack of reason on the part not only of the consumers but also the producers. Rational judgement would make it much easier for those producing to determine how to create a lasting product. Rational judgement would make it much easier for those consuming to know what is good and what is bad and how to properly save and spend their money.
It is true that we live in a society that may engage in over consumption. But that is the consequence of bad epistemology and even worse metaphysics. People walk into life assuming that things will always be there without determing weather or not it may be wise to perhaps save some money or wait until the product is better and will last longer.
But again, this is the consequence of irrational judgement. When someone sees an exciting advertisement for a new product they immediately want it without evaluating the value of the product and its cost in relation to its overall quality. That is where the waste comes in and that is where the problems arise.
The issue isn't in capitalims itself. The issue is a philosophical one. Without a reason based philosophy, people are doomed to perpetuate the same mistakes. Without taking reality for what it is and using the mind to make rational judgements history will continue to repeat itself. As it has. Only each time will be worse.[QUOTE]
I like your appeal to reason. But reason and rational also makes me wonder whether rational judgement will come to people by way of books like 'How to buy a product for dummies'; Can laisez-faire economy make people to buy 'rational judgement' from book stores?
There is a huge contradiction when you say education consumerism will solve those problems of over-consumption. Please tell me who is going to educate them. You have already ruled out governemnt or any governemnt intervention. Now, to understand consumer laws, affairs and its philosophy of how not to or what to consume, a citizen need study or educate himslef by paying for class advertised as 'COME LEARN ABC OF CONSUMPTION: ONLY $100 A SESSION'. thats the implication of your proposition.
Come On. Piece-Meal Economic anecdotes and example cannot solve the problem of over-consumption in a vast economic system where the driver are multi-faceted and multi-pronged.
The assumption that every individual in a society has the capacity to take rational decisions, to be educated, to be self suffficient and moneyed enough to have contractual agreements, voluntarily pay taxes, and have their own security personnals is as like in dream where everything is abstract.
There is a small world theory and there is a island man theory....... it is all theoretical. We need to look for practical solutions, not laboratory solutions.
This is the problem i see with Ayn Rand philosophy. It is nothing personal. The high pedestal it puts the individual to follow ethics belies Reason, and disregards true human behaviour, history and ecology. Please Reason it out.