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It is a sad example of what capitalism eventually leads to. Instead of having "modular" companies which can interface freely with eachother, we end up having a few opaque MegaCorps with an internal economy.


Well if we're in an ideal capitalism society, if what foundationDB created was really of such tremendous value, somebody will come along and do the same thing.


And no one will buy the product, they'll expect awesome for free, and the company will go for a song. Why expect a different outcome the second time?


Because people are not rational animals that follow predictable mathematical models. Too many variables to say it'll be the same again.


Not if they were able to encumber it with patents.


And then even more work will be pointlessly duplicated.


But capitalism is also what channels the human instinct to survive into productivity. Sure some subset of geeks can be motivated purely by creativity under a communist system, but I'd be dubious that it could overall match the velocity of Silicon Valley's innovation engine even granting the sizable implied waste reduction.


Free people not being able to match the pace of people desperately trying to free themselves from wage slavery doesn't strike me as a great justification of wage slavery.

Not that I agree with the premise that capitalism is what drives people to produce things to begin with.


Are these people trying to desperately free themselves from wage slavery the same people who spend most of their time watching tv, playing games or caring for children nobody forced them to have? If so they don't seem so desperate to me.

Generally the people I've met who work hard to develop themselves and develop skills society needs end up doing quite well for themselves, although I admit that as an Australian my experience is probably different from the US. Here we have more socialised education and healthcare, so anyone with motivation can go to college.


It's interesting that you suppose the AU and US results are likely to be different. As an USian I do not perceive that the system very often fails smart, motivated, hardworking people, healthcare and education regimes notwithstanding.


Then how do you explain the low socio-economic mobility in the US?

http://en.wikipedia.org/wiki/Socio-economic_mobility_in_the_...

The good news is everyone is getting richer (rising tide), the bad news is inequality is increasing and low mobility is nothing to be proud of. Like logicchains I'm Aussie and we fare better at the moment, though we're also starting to head in the wrong direction by these measures.


Isn't your government incredibly conservative at the moment?


Yes it is, and if they get their way I believe it will be a disaster for both equality and long term growth here. They are aiming to move education and health to more of a user pays model (which makes no sense given the evidence worldwide) and continue their party's privatisation-by-stealth in both areas.

Fortunately they are not very competent and do not have full control of the parliament, so most of their bills have been blocked by minor parties.


The scary thing is that the largest players in the private market here financially back (or lobby for) a lot of the shenanigans that happen in the capital...denial of climate change, privatization (or abolishment) of public services/utilities, slashing education, etc etc.

The not very competent people who wave snowballs around in congress, send bitchy letters to Iran and Israel, and squawk about #OBAMANET have full corporate sponsorship and the propaganda machine that is our media keeps getting these imbeciles elected.

The US is definitely treading water right now. I remain hopeful, but not optimistic.


From this forum, which is probably my largest source of interaction with Americans, I get the impression that most Americans think life is extremely hard for the lower class there.


Except you have to be in a privileged position to become smart, motivated and hardworking.


Most are born into this society and never consider the notion that things could ever be different.


* 5 million people dead in the Congo, stealing rare minerals and putting them in your iPhone.

* Destroying our earth with a pathetically broad plan for stopping (read: we won't).

* We're creating technological systems that pose the greatest threat against freedom ever.

* We're killing hundreds of thousands in the middle east because they pose threats to our Saudi oil fields.

Yay, productivity.

What I'm saying here, is that it doesn't have to be this way. Capitalism drives a population to productivity in the same way meth does: destructively.


There are far closer capitalist systems that can be used beyond the corporatist based one we have now. Socialism/Communism simply won't work on a large scale, just because of human nature.. the same way that unchecked capitalism doesn't.

The problem is breaking down the "rights" of corporations.

* eliminate corporate taxes * establish structures that allow corporations to hold on to underutilized/unutilized assets (follow through on this) * reduce intellectual property rights assigned to corporations * create a non-living entity legal classification with explicitely reduced rights * remove speach rights from corporate entities (employees, shareholders, etc still have those rights, companies don't) * restrict any propaganda spending by corporations

With those checks in place corporations can still exist, but would be geared towards growth (like Amazon) with continuous reinvestment, or towards paying dividends to those shareholders who are paying taxes.

With those checks in place, a basic/living wage and flat tax could be put in place, no loopholes, no tiered taxation.. everyone is taxed at 50%, everyone gets the same base wage check... the revenue is split between federal govts and state.. 25% to base wage, 25% to federal govt, 35% to states based on population, 15% to states based on land mass (perserve public lands).

Beyond any of this, there are way to utilize capitalism to serve the public interest.. just because this hasn't been done doesn't mean it can't be... and with appropriate checks in place (mainly in political finance which require the first steps outlined), stand a far better chance of succeeding than any alternative that has been tried.


Wouldn't every advertisement qualify as "propaganda spending"?


alternative?


<actual-advice>

I have no good answers for you. If the atrocities above bother you, you can do your part and opt out from the sides of society that requires you to be a part of it.

We just need a cultural shift to stop being such consumers. Stop buying a new phone every year, your current one can easily suit you for the next 10 years. Don't buy a new laptop. Start being cognizant of the influences brand names have on you and try to resist them where possible. Most importantly, we need to strengthen unions and support our local coops.

Start being aware of where the money you spend ultimately ends up.

</actual-advice>

<shill> I'm a libertarian, and I use that in the non-US definition of the word, which is to say I'm an anarcho-syndicalist. Unfortunately anarchism is widely regarded as unrealistic, but if it weren't for the Soviets mucking around in Spain in the 30's, it might be a very different story.

What is anarchism? Here's how Noam Chomsky, (the same Chomsky you know from your compilers / CS theory course) describes it:

""" Well, anarchism is, in my view, basically a kind of tendency in human thought which shows up in different forms in different circumstances, and has some leading characteristics.

Primarily it is a tendency that is suspicious and skeptical of domination, authority, and hierarchy. It seeks structures of hierarchy and domination in human life over the whole range, extending from, say, patriarchal families to, say, imperial systems, and it asks whether those systems are justified. It assumes that the burden of proof for anyone in a position of power and authority lies on them. Their authority is not self-justifying. They have to give a reason for it, a justification. And if they can’t justify that authority and power and control, which is the usual case, then the authority ought to be dismantled and replaced by something more free and just. And, as I understand it, anarchy is just that tendency. It takes different forms at different times.

Anarcho-syndicalism is a particular variety of anarchism which was concerned primarily, though not solely, but primarily with control over work, over the work place, over production. It took for granted that working people ought to control their own work, its conditions, [that] they ought to control the enterprises in which they work, along with communities, so they should be associated with one another in free associations, and … democracy of that kind should be the foundational elements of a more general free society. And then, you know, ideas are worked out about how exactly that should manifest itself, but I think that is the core of anarcho-syndicalist thinking. I mean it’s not at all the general image that you described — people running around the streets, you know, breaking store windows — but [anarcho-syndicalism] is a conception of a very organized society, but organized from below by direct participation at every level, with as little control and domination as is feasible, maybe none. """

One big misconception is that anarchism means that there should be no laws, and that murderers should be allowed to wander the streets. What a lot of people don't know is that anarchism, just like communism, was also a victim of the propaganda machine that we now call the red scare.

I think that a lot of people in tech, who can directly see how open source killed proprietary software, are the people who are most open to the idea this shift can happen.

Anyway, that's just my $0.02.

If you made it this far into my comment, give this a read: http://www.alternet.org/civil-liberties/noam-chomsky-kind-an...

And also read On Anarchism by Chomsky, it's fantastic. </shill>


> If you made it this far into my comment, ...

That's a tacit acceptance that the solutions youre porposing have absolutely no chance of ever happening at a scale that will ever matter. Politics, and economics, are the art of the possible.

Capitalism coupled to represenatative democracy is the best shot w've got at developing a fair, balanced and sustainable economic system. What we need to do is correctly and rigorously price in environmental costs into the financial costs of our economic activities. Otherwise you get Soviet Russia laying waste to vast swathes of territory with misconceived development programs, or China polluting it's own country and population to death due to zero political accountability. The problem with Anarch-syndicalism is that at scale people will syndicalise back into special-interest blocs and you'll be back where you started.


> Capitalism coupled to represenatative democracy is the best shot we've got at developing a fair, balanced and sustainable economic system.

Tend to agree, but that only addresses the economy. From what I've seen, capitalism cares very little for the advancement of society itself, and quite often works against it (eg, oil companies and global warming). You mentioned pricing in environmental costs, which obviously I would agree with, however I think the only way to achieve this is by banning companies from having any sort of political free speech and this is a tricky line to walk. In our current state, the environmental costs of our activities are a large point of contention because the people doing the damage are able to buy a large portion of "democratic" mindshare through propaganda. How do you regulate this? It's a hard problem.

Also, take something like consumerism (as in, buying a new phone every year). It doesn't make us happier, it doesn't make our lives better, nor does it do the planet we live on much good. However, consumerism and capitalism have grown into a feedback loop. It's an area where we spend enormous amounts of energy to derive very little benefit. The free market here does us no good, and in fact enables what I would consider a bad societal habit. Not that I think there's an easy fix or we should try to control people, but it's an example of capitalism working well but providing little value. It's self-referential existence.

> The problem with Anarch-syndicalism is that at scale people will syndicalise back into special-interest blocs

I am an anarchist, but I do believe this is true. Humans are not capable of this self-organizing yet.


Honestly, if you hadn't called yourself a libertarian in the start of your post, I never would have guessed it. Ideology-wise, I'm an anarcho-communist. Did a lot of research regarding it in my youth and still believe in it today. We share a lot of the same beliefs.

I think the goal is unattainable at humanity's current level of spiritual development (which is, to be blunt, maybe a few millimeters further along than our ape cousins). That doesn't mean that the concepts can't be applied in every day life, however.

Living in the US, it's hard not to be completely disgusted by what passes as a "libertarian." I've grown to hate the word, and avoid most people who parrot it. The "less regulation!" "small government!" "free market!" drum gets beat all too often without addressing the elephant in the room: Corporate America is a wild beast running amok over the entire globe. The last thing it needs is less regulation! All the innovation and progress in the world won't be worth a damn if we're all breathing in toxic air and birthing flipper babies.

A lot of this is driven by the American culture's need for the new (as you pointed out). The sickness of our culture is the fuel of our economy, which is now built upon the backs of third world nations (which, by the way, are starting to equalize...soon there will be no more backs to climb on, what then?). We don't produce anything anymore, we just consume.

Even in SV, where people are constantly crowing about how innovative everything is, there's very little real, actual change happening. An app that deletes photos you send to someone after 15s. Amazingly innovative. Another chat app. Useful? Sure. Innovative? No. In fact, tying this back into the parent comments, I'd argue that almost all of the innovation I've seen comes from open source. 99% of private companies in the valley are doing some that has been done 1000x before, but just slightly better. It makes money, sure, but it doesn't help the world or advance society. Capitalism at its best.

I think there's a strong balance that needs to be struck between what actually advances society as a whole and what allows the individual to prosper. In the US, at least currently, the two seem pretty mutually exclusive.

/rant


Well, that's the nature of capitalism. It naturally and inevitably leads to monopoly without government intervention. That's the primary reason of regulation in capitalism oriented societies.


As opposed to communism, which leads to everything being produced/owned by one entity, the state? I'm sure there are reasonably arguments for communism but I've never heard it asserted that encouraging market competition is one of them.


False dichotomy. Communism (or whatever approximations of it we've seen) isn't the only alternative.

The inherent problem in any case is concentration of power, whether it be in the state or in megacorps.


What other alternatives are there? Socialism? There are plenty of socialist countries, but I'm not aware of any that would prevent Apple from buying a relatively small company like that behind Foundation.

Economic freedom is a scale. On one side, there's 100% freedom of exchange/ownership, pure propertarian capitalism, which doesn't exist on Earth right now. On the other side, there's pure communal communism, which also doesn't exist on Earth right now. If neither extreme nor minimal economic freedom would address the issue, how could some intermediate level do any better?


If neither extreme nor minimal economic freedom would address the issue, how could some intermediate level do any better?

Simple. Both extremes concentrate power eventually (in the state or in megacorps). Somewhere in the middle, you have an open and capitalist market, but the government keeps large cooperations in check, and the population keeps the government in check.

It can be argued that the EU strives to follow this model (although imperfectly). E.g. by enforcing net neutrality, being relatively active at breaking down cartels, regulating roaming costs (since the industry kept them artificially high), etc.

Of course, it's never perfect, because the circumstances are never perfect. So, you have to finetune and adapt.


>Both extremes concentrate power eventually (in the state or in megacorps). Somewhere in the middle, you have an open and capitalist market, but the government keeps large cooperations in check, and the population keeps the government in check.

What in this middle ground would prevent Apple from buying FoundationDB? I can't see this happening in any middle-ground countries like Europe.


That's not an ideal question because it assumes that Apple and FDB already exist as technology owning/creating entities.

What if there were no large corporations at all? What if IP and status/cash-flow were set up as the property of individuals and/or small teams who collaborated on a per-project basis?

You could have a system where IP was still shared in a completely open way, remaining free for non-commercial use, but commercial use would require a per-use payment, and commercial modification would attract a revenue share of its own if it was useful to a market.

This might not be ideal - it doesn't solve the problem of actually making stuff, for example. (There are possible answers to that, but they're even weirder.)

But it shows it's at least possible to begin to think about systems that don't have dinosaur corporations stomping around the ecosystem predating anyone and anything who's small and interesting.

And it specifically solves the problem of useful IP being removed or suppressed just because it can be.


The post you responded to pointed to a problem with capitalism, but it hardly follows that this means they'd advocate for communism. More rationally you might suppose that there is some other way to curb failures of capitalism without jumping to other extreme. It is a scale, yes, but there is no reason to expect the best solution is at either end.

Let alone the fact that we are only talking about economic freedom now, which is only one of many interacting facets of politics that can't really be isolated.


Whether or not a company is allowed to buy another company is a matter of economic freedom. All other things being equal, the more freedom companies have to buy others, the greatest the level of economic freedom, as freedom to buy is a component of economic freedom.

Allowing companies to buy any companies has issues. Not allowing companies to buy other companies also has issues. So how could any intermediate situation not have issues? If it forbids in some cases, it will have some of the problems associated with forbidding. If it allows in some cases, it will have some of the problems associated with lenience.


Allowing companies to buy any companies has issues. Not allowing companies to buy other companies also has issues.

You seem to reason in really absolutist terms. You can have an open economy, where a government can still intervene if the current market situation has an extremely negative effect on society.

E.g. breaking cartels, monopolies or oligopolies where they seriously hurt a population does not throw away all the benefits of capitalism.

The disadvantage of one extreme is that you cannot have free enterprise, the other extreme is that you might end up with a few megacorps who control the market and ultimately society. In the middle you have a situation where there is free enterprise, but as a cooperation you also have to play by the rules that were set up to maintain fair competition and avoid centralisation of power.


>In the middle you have a situation where there is free enterprise, but as a cooperation you also have to play by the rules that were set up to maintain fair competition and avoid centralisation of power.

The middle situation faces the potential of http://en.wikipedia.org/wiki/Regulatory_capture. This state-enforced monopoly is a small-scale manifestation of the complete state monopoly associated with 100% state ownership. The only way to completely avoid regulatory capture is to have no regulatory agencies, but this of course brings troubles of its own. There's no perfect middle.


Sure. First of all, in all systems averse effects can happen. Secondly, regulatory capture is countered by democracy and transparency. If politicians become corrupted, you vote them away. In capitalism without regulation, there is no good way for citizens to intervene (except through violence).


How's voting the corrupt politicians away working in practice in the US? From what I hear, not very well.


Your argument now amounts to "there will always be issues", which is correct but not useful. What matters is what those issues are, how important, and how severe at each point on the scale. We're now talking at such an abstract level that it's not really meaningful...


>Your argument now amounts to "there will always be issues", which is correct but not useful.

The argument I responded to was essentially asserting the existence of a non-capitalist solution that would have prevented Apple from buying FoundationDB without negative consequences. If I successfully argue that there are no perfect solutions, than that undermines the argument to which I was replying, and forces the poster to engage with the issue in more detail than just "capitalism is bad".




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