Showing posts with label Laissez-faire. Show all posts
Showing posts with label Laissez-faire. Show all posts

25 February 2008

What do we do now?

Its been a while, but I'm back. I haven't had much of an inclination to write so I simply haven't done so. But today I find myself wanting to write something again. Here I am tackling a big question, namely: "What do we do now?"

So...what the hell do I mean, now, and what exactly am I pulling you into by saying "we"? By "What do we do now?" I am asking what "we", as a society, as a race of sentient beings who have great power and hence great responsibility, should do next. By next I basically mean in what direction should we head, where should we take humanity now...or next as i just phrased it?

Personally, I feel that we as a society have made many mistakes over the years, but having said that I'm sure we've avoided quite a few too, so I shouldn't be too critical. There are however some problems which are of immediate concern which include problems with wealth inequality and poverty, problems with materialism and unhappiness, and problems with profit, greed and damage to our dear earth.

I feel that the capitalist system, despite its potential benefits, has been used to justify wealth in the form of monetary profit, over all other things, including our morals and values, hence including the very basis for our desire to live. The gap between rich and poor broadens, not just within countries but also between them. The poor struggle more, while the rich enjoy ever greater luxuries all the while living unhappy lives of hedonistic greed. Its been proven that doing things such as volunteering for local organisations that help those in need gives a great feeling of purpose and happiness. Why then is it that we don't all help each other to reach for higher and better things and at the same time improve not only our physical standard of life, but our emotional one?

Are you really proud to live in a world based on greed, exploitation, callousness and a moral imperative to make money over all other things? I thought not. Few of us are so fanatically inclined, yet that seems to be the system we live in. Unfortunately we, as tacit participants of the system, are, whether consciously or not, supporting such a system.

The problem need not necessarily lie in capitalism per say or forms of liberalism for that matter, but rather the ways in which they can be appropriated. I feel that a welfare liberal state could solve many of our problems. A state in which the individual has great freedom so long as he does not hurt those around him. Classical Libertarians argue this too, however their definition of "hurt" only includes physical harm and not economically crippling people by condemning them into debt cycles and so forth.

We need some degree of social welfare. We are after all, only human, and we will all have times in our lives in which the going may get tough. Its only far that if someone loses their job, or is seriously injured, or disabled or something of the sort, that there is a kind and supportive governmental system in place which can provide financial assistance to these people. The mere fact that such a system exists will also greatly reduce anxiety and worry within a society as people will no that if they should fall in life that they will still have a basic standard of living assured for them. Overall I think the benefits of such a societal structure will improve the happiness of the society. This will also be highly likely to improve not only the quality of life, but interesting the societies productivity and ability.

In contrast a complete free-market, akin to what is developing in America, creates a broader gap between the rich and the poor and creates a society based on fear and greed. The large majority of the people live lives of subservience and essential slavery, with moments of hedonism for escape. They live tough and unhappy lives, with consumerism being the favourite attempt to avoid the feelings of unhappines. In many ways I think that many of America's problems stem from its unhappiness, which stems from its inequality and harsh free-market, laissez fare system.

Don't read me wrong here, I have nothing wrong with some people being rich and some poor, difference is all well and good, however, i feel that the poor should at least be afforded the basic necessities of life while the rich should not necessarily have such a reckless excess of luxuries. I think everyone would be all the happier for this arrangement too.

With the development of technology and general advances in the world, everyone should be able to live easier lives, with more time to simply enjoy life. Yet we still seem to work so much? What for, why are we driven to work so much? A large part of our expenses are on consumerist shite which we probably don't need but feel good about buying because we typically feel so bad. So one solution is to simply be happier and hence need less stuff, and hence need to work less, in turn giving us more time to enjoy life. The cycle can however spin the other way too. It we work harder we end up having less freetime and often feel less happy and hence buy more crap we don't need and then need to work all the harder to afford the lifestyle we become accustomed too.

I suppose the big question here is what sort of society do we want to live in? I personally feel that a welfare liberal society will create a happier and more stable society, who will in turn be more positive and also, rather ironically, achieve more by doing less. Work smarter, not harder... thats something we should be remembering here. When i say achieve, i don't mean make lots of money, what kind of fucking goal is that? I believe that a welfare liberal society will support more environmental awareness, more equality, a closing of the gap between the rich and the poor, a reduction in exploitation and material greed. I believe it will allow morals and ethics to resurface, for our race to become all the more learned, and wise, with the knowledge that we live to support we believe in, and that those values should not be how many golden coins we can stuff into our pockets.

Many people yell angrily when leftists talk about government intervention and raise a whole bunch of valid points about how the money is often lost in beurocratic systems and so forth. This is true to some degree but there are two simple answers to it:
1) in a free-market economy the same ridiculous "loss" of money would occur, even on a much greater scale, except that it would be done by large corporate businesses that will come to dominate certain sectors in life.
2) I believe the welfare liberal government would eventually, over time and with the development of our values, become a much fairer and honest system than many governments such as those we have today.

As a further point I would much rather have the government held accountable for what goes on in the world that giant corporations who have no interest except profit. I want ethics to matter, I want humans to be treated like I feel humans should be. As I said in “Classical Liberalism vs. The Welfare State – Which is the better ideal?” "A welfare liberal state is far more humane than a laissez-faire based one. And as a human I’m all for humaneness."

This is all well and good Sam you argue, but what are we going to do about it? Well realistically it might be hard to completely change how the world is run in one day, but then again it took them a fair arse long time to build rome so... One step a time tiger. The beginning, like so many things, starts in the mind. It starts in us collectively wanting and craving a change, and hence demanding it, hence supporting it, hence living it. If you believe in a society where the environment counts buy recycled toilet paper. Yes it will cost you a buck more, but it will mean that you are craving, demanding, supporting and living the life you choose, on the smallest level perhaps, but just imagine the potential for mass change. Imagine if everyone took that mentality, imagine if everyone bought recycled toilet paper... i think you see where i'm getting at... Alone we are divided, but together we are strong.

God, I do sound like a communist. Anyway, theres so much more I could right, but i'll save that for another rant. I think I've gotten the broader picture across. Remember to live life as you want it to be, not as you feel forced to by society. What ever made social norms right? Just because everyone else is being a stingy capitalist and cutting down all our trees to save a buck on toilet paper doesn't mean you have to. Now go out there and do your bit by buying some recycled toiletry accessories...


PS: A special thank you to the all philosophical Dominic Jarkey, for giving me the courage to get off my arse and write something inspiring. Bless you matey, for firstly sneezing into recycled tissue paper, and secondly and perhaps more importantly for simply being there for a friend in need.

15 January 2008

Free Market Economy/Classical Liberalism Vs. The Welfare State – Which is the better ideal?

For years I’ve always shunned the complete Free Market Economy with its emphasis on laissez-faire based capitalism. The problems inherent have always been obvious to me so I have tended to preference a more leftist welfare based state. However as I begin to understand more of the political makeup of the left I also find that many left groups (while admittedly better than right groups) can be preaching a rather extreme course of action. Like almost all things in life a balance seems to be required, a balance between the ability to make money and the responsibility to pay taxes so that society is fair and has a degree of security.

What sparked this whole debate in my mind again was ironically simply the fact that I did some casual work today in which I was assigned to work with my boss’s father. He is a Swedish man by the name of Sten (essentially stan, but Swedish) and was I believe 70 years old. Despite the large age difference between the two of us, I quickly found myself enjoying his company as he was very friendly and talkative. Eventually we talked of Sweden which is renowned for having an extremely good welfare state, or so I had previously believed. Sweden has extremely high tax rates and thus it would be assumed that It has a good welfare system. Like many European countries I believe it has good public schooling and good health-care, something which America certainly lacks. If you have not already seen it I highly recommend you watch Michael Moore’s “Sicko (Special Edition)” as it is an interesting movie comparing the American health system to those of other countries.

Despite all this it appears, according to Sten, that Sweden does not have the most efficient welfare system in the world. It may well be that a lot of the money disappears in various bureaucratic processes, which is a common complaint of the classical liberals. Even if this is not the case there are other problems. The tax system in Sweden which effectively is the heart and soul of the welfare system is much to high. Even I, a person of rather left-wing views must say this. Sweden may be held up as a totem of how states should be, but like any other state it certainly has its flaws. A nice analogy for the high tax system was given to me when Sten told me of the famous author Astrid Lindgreen who was the author of Pippi Langstrump (or Pippy Longstockings, a renowned children's book). Apparently Lindfreen was taxed at 104% of her income! That is to say for every $100 she earned she had to pay the government $104. However I think Sten may have been just off the mark as other sources I have found state that it was 102%. Regardless, it’s just horrifically high. As “http://www.sweden.se/templates/cs/Article____18005.aspx” states:
“at the age of 68 she submitted an opinion piece to the Swedish daily Expressen on the subject of a loophole in the Swedish tax system which meant that she, as a self-employed writer, had to pay 102 percent tax on her income. She wrote the piece in the style of a fairytale, and it had an immediate impact.”

The high taxation system also has other huge problems. According to “Statistics Sweden” the mean tax rate is 30.44% this year (2008), which still seems a little high. This huge taxation rate as Sten explained means many people aren’t motivated to work (or at least not much) as:
1) So much of what they need is supplied by the government (education/medical etc)
2) They have to give such a large amount of what they earn back to the government in the form of taxation

Another problem with high taxation (as The Classical Liberals always argue) is that it creates “corruptness” so to speak. While not what we would consider really bad crimes, it becomes the case that professionals serve one another for free, so that they don’t have to pay for each other’s services and also don’t have to pay the huge amounts of tax they would otherwise pay to work for them, only to spend on each others service’s. Thus it works out better for them to do jobs for one another unofficially, maybe with some cash in hand. In essence the high tax levels would no doubt lead to a large amount of tax fraud around the country. (See: “http://www.skatteverket.se/download/18.3dfca4f410f4fc63c8680003885/swedish+report+200604B+.pdf” for more details)

Of course the welfare system they have in place is of course very good, despite the various flaws inherit in it. While I think Sweden is an example of extreme left-wing thinking and is ultimately too extreme to be sustainable I do think many countries could do with adding some welfare state systems into their economies. I believe we need taxation for various purposes namely a fair health system, a fair education system and basic support for those in dire need. When I say dire need I really only mean the heavily impoverished. There should also be reasonably cheap transport which if needed should be government subsidised to encourage people to use public transport and also do the environment good in doing so. Heck in China they even pay cyclists a fortnightly amount for cycling and not polluting!

However I think to achieve this a high tax rate would not be required. If the money was used more efficiently (which trust me it could be – however people will understandably always argue for different causes to be of top priority and so forth) the tax rate could be kept reasonably low and yet the welfare gains as maximised as possible. This promotes some sort of balance between classical liberalism and socialism, and its generally called welfare liberalism, and its currently where I’d say I stand on the political spectrum. So after all that I simply say that a balance is needed. It seems the Buddhists and their notion of “the middle way” are again correct. I seem to write about them in half of my damn posts, its about time I hurried up and published a link to a post on that idea of balance!

I do not think the free market/classical liberal state is, the be all and end all of politics. It too is extreme. If several people are disabled and people in general aren’t kind enough to support them out of their own pockets they die. Unfortunately I don’t yet have enough faith in humans for them to sort out all their problems all the time, after all were rather erratic creatures. Hence the notion of a state which is created on rational logic which remains throughout points of emotional turmoil needs to exist, so that we can stick by our long term values, such as helping those in need.

Capitalists also argue that competition is good, and while to a degree I think this is true, it is also true that blatant competition leads to fear and greed. People become unhappy and life is lead in a state of anxiety. Also, in a capitalist society everything becomes commodified, including values that I think simply cannot be compromised by no amount of wealth. No amount of money for instance could make me forgive someone for killing my mother, its just not something you can forgive in that way. Do we really want to live in a callous, competitive society where we are slave to the dollar? What’s more free market capitalism does not allow for any government intervention. In some ways this is good as government can do stupid things, but mostly government serves to implement reasonable measures, and in these cases it should be allowed to do its job. What I foresee through free market capitalism is a sort of monopoly forming. I know free market capitalists argue it won’t happen but to a degree it is inevitable.

Life isn’t all about economics and wealth, yet free market theory commodifies all. It certainly seems unreasonable to me. Still I love to read things which disprove my views because as annoying as it can be it ultimately leads me to learn from my mistakes. Several pro-laissez-faire fans have suggested I read F.A. Hayek’s "The Road to Serfdom (Routledge Classics S.)". Maybe then I can comment some more on the situation. Until then I’d say that taxation is required for various basic functions and infrastructure and so forth which society needs. Some could argue that private companies could do it, but I’d rather have certain services such as basic public transport available to all people, as well as medical centres and basic education, at very least those three things are requires, as well as some government support for those in economic crisis. The fact is that statistically some of us get very unlucky and just because that happens doesn’t mean we deserve to be left out on the street to die. A welfare liberal state is far more humane than a laissez-faire based one. And as a human I’m all for humaneness.


 
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