Saturday, September 23, 2006

Pocket psychology

One of the main arguments that critics of communism and socialism use is that these, as organizational systems, stop progress. The idea is that they slow down competition and entrepreneurship. Even assuming a non-corrupt socialist system, when people have all their needs covered, there is little incentive to develop and look for new ways of doing things. So the argument goes.

Papafritadas, if you ask me. The most advanced societies today are socialist. True, they have their problems, and that is mainly that some people attempt to take advantage of the system, laying back too much. They also have those famous (marginally) higher suicidal rates which, some theorize, are due to the lack of reasons to strive.

On the other hand, societies that lean towards strict capitalism tend to have a lot more violent crime and much more marked class divisions. One thing is not to struggle enough, but quite a different one is to have to struggle all the time, because you know you're on a slippery slope with a hole at the bottom. In capitalist societies, money is your main tool, and the paradox is, the needier you are, the less you are able to provide for yourself.

As for entrepreneurship (be it commercial, tecnological, social, artistic, etc.) as far as societies allow some room for it, there will always be a number of people that will take those directions. Clear limits need to be set though: nobody should be allowed to amass enough money nor influence to get above the societal contract, that is, to impose their rights above those of others. That is criminal, yet it happens in all societies, even the more socialist ones that pride themselves in their equality and their humanitarian principles.

This phenomenon can be best observed as it is played out in the global arena. One example in point is the canadian mining company Northern Orion Resources, which uses in Argentina environmentally unsound mining practices that would never be allowed in Canada. Yes, we all know that this is partly the fault of the corrupt argentinean system, but it also points at the corruption of the canadian one. Basically, Northern Orion pays a lot of money in taxes, and Canada cannot afford to lose such a big chunk of their revenue. Thus, principles are thrown out the window, and the result is that, whereas so called underdeveloped nations produce damage at their own national level, developed ones, because of their scope, produce it internationally.

Anyway, going back to this idea that socialism puts a break on development... Let's take a short look at how capitalism acts in two different cases, namely show business and technological development.

Imagine you own Viacom. Of course, you don't own it whole. You're one of many investors, but you've put in enough money that you're in the board of directors, or at least enough to have a vote in deciding who should be hired to be on that board. Do you give a damn about the quality of the movies and TV programs produced by your subsidiary --say-- Paramount? Well, yes, insofar as quality is defined by the factors that bring money into your pocket. That artsy stuff has no bucks in it, for instance. Do you care about how socially progressive, how groundshaking your movie is? Of course you do! Too much social progressivism and market patterns might eventually be altered and cost you a lot of money in market research, trying to figure out what to sell next. After all, the media has a lot of power to influence society; it's better not to shake things too much, so think carefully about what you buy from writers! Finally, you should make sure to screen out anything that's too original. Originality does not sell. People take a while to get used it. I mean, look at that Van Gogh guy, for instance. What did he get out of it? Let others be as original as they want. You can always buy or copy their stuff later, when it's less original...

Tsk... You don't like this. After all, you're a good guy, and you have the best education your parents' money could buy: you DO appreciate art. You've been to many of Tiffany's auctions and the walls of your studio are plastered with valuable paintings and stuffed with incunable editions. You look at TV and feel responsible, so you take your money out of show biz and put it into Silicon Valley. I mean, development of new technology really is cutting edge, right?

Poor soft-hearted creature you, soon it's evident that if you want to keep making money, it's better for you not to use all your researchers' work at once. Exploit feature by feature. Besides, to put out a fundamentally new product would mean too much money invested in changing the production process. Better to pace research then, too. Parse out the money, make them beg for it. Who knows what they'll come up with! And then, what if they quit and take their ideas elsewhere? You MUST pass laws that allow you to buy not only their thinking, but also their silence.

You finally learn your lesson: don't get involved in these things! Just pay a manager to look after your money. It should be someone motivated, someone ambitious, someone who would like to be like you someday.

Why don't those critics from the first paragraph ever focus on how capitalism does this kind of stuff? Perhaps because for them development is simply that state that allows the most unrestricted accumulation of money. Wealth cannot be measured in any other way, apparently.

3 comments:

Anicko said...

Good, bright comments!
What is interesting is two observations I've made on this issue. 1) not only wealthy people seem to be against socialism. It is a hard political idea to be accepted by people who work hard but get very very low salary. That's when it starts getting hard to convince them that their work is appreciated when, at the same time, people who they see as "lazy" get the same money in the form of benefits from the state.
Second, I've had many conversations with people about this (i.e. about political systems) and there are so many (you cannot even imagine!) who hardly own anything but say that they get so much pleasure out of the fact that at least their property - like an old, rusty Ford Focus - is their very own and not shared. There are people who are happy having very little fortune themselves but who are so proud of their distant relatives who have gone out to the Big Finance World.
They sort of "live through others".
These observations have made me think that it's not so black and white. Similarly, why do some less wealthy people, or even homeless, support monarchy - a system that to me is quite irrational, someone born with a silver spoon in mouth with no reason. They support the monarchy and see no problem with social classes since they think it's good enough and lovely to see these "fairytales" in real life. Whereas others are instantly critisizing and feeling envy.

The worst thing, I think, is the vicious cycle of poverty AND the vicious cycle of WEALTH because those things should never depend on someone's family roots but they do in too many places. There is only one thing that I haven't understood: if socialism is about diversity and being tolerant, should it also tolerate people who want to make money? Why not? They seem to be the only group socialism opposes. That is a question :)

MARIANO said...

Thanks for taking the time to reply, Anni!

I agree with you, socialism should not prohibit the holding of some private property, nor do i criticize the ambition to want to make money. What i AM saying, however, is that societies should set uppermost limits to the amount of property and wealth that can be held by individuals or groups. That is to say, nobody in society should be allowed to have so much wealth that they could use it to impose their will above the legal and ethical contract by which that society lives.

Don't you think?

Anicko said...

I agree (Ai ägrii).
Btw, I learned the concept of Vicious cycle of wealth in UWC and I think it's so true - and sad at the same time.
I really need to ask you, I dunno who might know, but what on earth happened to the college video 03-04? Paid for it, never got it... It's one of those mysteries that reminds me of the place now and then... Perhaps you know... ;)

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