MAJOR SOCIAL THEORIES
MAJOR SOCIAL THEORIES PHIL 2200
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Phil 2200 Notes 20 Socialist Anarchism Bakunin I Background Government De ned by Max Weber as a human community that successfully claims the monopob ofthe legitimate me ofpJyxz39ml e within a given territory 1 Anarchists believe in a social order without coercion or government Typical motivations freedom equality failure of arguments for legitimacy The dangers of government Varieties ofanarchism Socialist vs Capitalist Mikhail Bakunin 181471876 Russian revolutionary one of the leading figures of socialist anarchism Critic of Marx esp Marx s dictatorship of the proletariat ll Basic Value Principles Supreme value Freedom 7 Freedom should never be sacrificed in the guise ofprotecting freedom 7 Everyone s freedom is inviolable 7 Individuals freedom does not con ict 7 Consequence Absolute right of any person or group to secede from any association Equality 7 Equality necessary for freedom 7 Equality ofpolitical rights Everyone has an equal share in governance Men as well as women 7 This also requires economicsocial equality Ill Political Organization Society organized into small communes 7 Membership is voluntary 7 Members vote for lawmakers judges and functionaries Communes organize into provinces 7 For mutualprotection 7 Again purely voluntary 7 Provincial parliament elected by the communes 7 Serves to mediate disputes between communes amp represent interests in the national government Provinces organized into nations Nations organized into an international federation IV Policies People who don t work lose political rights and their children People who violate laws will be punished according to the laws However they can escape by leaving the association 1Max Weber Politics as a Vocation pp 777128 in From Max Weber Engr m So a0g ed H H Gerth and C Wright lVIills New York Oxford University Press 1946 p 78 emphasis in original lt They may also be expelled from the association 8 from the territory Society supports anyone who needs support incl pregnant women children elderly handicapped Free education Free speechpress freedom of religion but no state support for religion The commune must educate children The commune may take children away who are abused by their parents No standing armies All voluntary interactions among adults allowed even exploitative ones How equality will be achieved 7 Not through expropriation 7 Abolition ofinheritance 7 Right of everyone to free education 7 Some inequality will remain but it will be small 7 Factories etc run as worker cooperatives Objections Is this anarchy 7 Government citizenship amp obligations thereof are involuntary 7 Bakunin s associations are voluntary amp you can leave at any time How to prevent people from committing crimes without involuntary punishment 7 Ultimate sanction expulsion from the community 7 Why wouldn t you commit crimes and then leave the commune to escape punishment Commune provides economic needs And protection Other communes may not accept you after your crime National defense without a standing army Will it work 7 Individuals are armed 7 This was the original American plan as mentioned on 8677 7 May work ifthere are no large agressive technologically advanced enemies Will approximate equality really result 7 Bakunin assumes people s natural abilities amp economically relevant traits are approximately equal Is this true Will capitalism emerge 7 Bakunin assumes that worker cooperatives would naturally replace traditional capimlisf firms 7 What ifcapitalist organization is more efficient What if some people are especially talented at management Social provision ofwelfare needs is it stable 7 Commune A provides welfare for anyone who needswants it Care for elderly handicapped children free public education for everyone including university level 7 Commune B does not 7 Both communes allow free immigrationemigration 7 Which commune is more successful economically 7 What happens to these two communes over time Phil 2200 Notes 21 AnarchoCapitalism Friedman To Discuss Today What are government and anarchy Police courts amp laws without government Government amp the public goods problem I Government amp Anarchy Important ante ts Friedman s defs Coem39on Violation ofwhat people generally regard as the rights ofindividuals with respect to other individuals Legz39tz39mz39zed Generally accepted as legitimate in a given society Government An agency oflegitimized coercion Examples What ifs called if the state Action What ifs called ifyou do it does it Seizing someone s property Robbe extortion Taxation Without their permiss10n ry Forcing people to work for Conscription jury duty Kidnaping slavery you national service Killing lots of people Mass murder War For a political goal Terrorism Anareboiq z39talz39sm Society with no government but with private property Provides governmental services by alternative institutions Police Courts amp Laws under Anarchy How would these presently governmenml institutions be replaced Police Private security guard companies protect people from criminals There are multiple competing companies in the same area Courts Private arbitration rms are used to resolve disputes There are multiple competing arbitration companies Private contracts specify arbitration agreements Protection agencies sign arbitration agreements with each other Law Laws are made by judgesarbitrators Note compare the British common law Ill Advantages of Anarchy A Nenioem39w 7 Governmental system you are forced to accept a government and have little or no control over what kind ofgovernment you have 7 Anarebmequ39talz39xm You choose whether to hire a protection agency and which one B Lem potential for akme ofpower 7 Govemmenlalgxtem Government has a monopoly There is no one to stop the government from abusing its powers 7 Anarebweq z39talz39m Competition among many protection agencies Customers can leave a bad agency C More e rz39ez39ent39 7 Governmental gxtem Police have no incentive to reduce crime If crime rates go up they get more money amp more police are hired 7 Anarebweq z39talz39m Protection agencies have an incentive to reduce crime If crime goes up they may be fired 7 Empirical observation The free market is more efficient at producing food shoes computers automobiles etc than the government is How is protection any different D Removexpuklz39e goodxproklem 7 Govemmentalgxtem Informed voting is a public good Laws amp protection are public goods 7 Anarebmequ39talz39xm Good laws amp protection become private goods E Lem ieeb to How up the world 7 Government is the source of all weapons ofmass destruction that have ever been devised 7 We have people constantly working on more 7 Government will probably destroy the human species one day The United States government is likely to be involved IV The Problem of Monopolies Natuml manejoy 7 Occurs when the optimum size for a firm is so large that there is room for only one such firm on the market 7 This situation is very rare 7 Even natural monopolies are restrained by potential competition 7 All products compete with all other products A al manejoy the strateg of predatogp 39ez39ng Problems 7 Larger firm loses more total money 7 Larger firm usually less efficient 7 The monopolist must sell to everyone at a loss small firm can choose customers or hold on to inventory 7 Monopolist forced to increase production losing even more money A al manejoy Elyi713 out the eompetz39tz39on Problem People start building factories to sell them to you Ca elx 7 Have all the problems ofmonopolies 7 Additional problem chiseling 7 Compare why don t all the farmers refuse to feed anyone unless everyone agrees to give them everything Xtate Monojoy 7 Almost all actual monopolies are government7enforced Government agencies get taken over by the industry amp used to the industry s advantage Why They are the ones who know most about the industry They have the most incentive to try to influence the agency Influencing policy is costly time7 consuming 7 Examples The Civil Aeronautics Board The American Medical Association 7 Could this problem be solved in a better government The pattern is not an accident It is built into the logic of the system V Further Questions 7 Wouldn t the semrz39g agendesfzght with eaeh other They would take disputes to the arbitration firms because this is economically rational Contrast what happens when governments decide to fight each other 2 Why would agenez39es ohej an arhz39trator s derision Companies abide by arbitrators decisions otherwise their reputations are ruined Violating decision defeats the point of going to arbitration Companies gain nothing by defending criminals see 4 3 H ow eoaldJoa know the arhz39trator was zz39r Competition among arbitration agencies you choose a reputable firm Contrast What do you do when the governmenfs courts are unfair irrational inefficient etc 4 What one semrz39g ageng den39des to defend murderers thieves eta Their clients would constantly be costing them money Compare The Arsonists Fire Insurance Agency They fight a constant war against the rest of society They must pay higher wages to their employees The Thief Protection Agency They must charge their clients more money than the stolen goods are worth Contrast What happens ifyou get corrupt people in the government 5 Why would semrz39g agendesproteet the poor Why would this be different from any other good or service Why do food companies feed the poor They re already paying for protection from the state Private protection would be cheaper and more effective Contrast Why would the government protect the poor How well do they in fact protect the poor 6 Wouldn t other Jammie attate the amt bz39xtx Ideally the whole world would be anarchist Almost all wars are due to disagreements between governments ii racial andor religious hatred andor iii perceived historical injustices Compare Why don t other countries attack Switzerland It is harder to mke over a territory with no government than one with a government Attacking countries use the governmental structure already in place to control the populace The security agencies amp the general population would be armed Compare US experience in VietnaIn Anarchy most likely to occur in a small place with no historical enemies ii at a time when all or most of the rest of the world is democratic Phil 2200 Notes 22 Objections to Anarchy I Wellman 1 Society needs a uniform set of rules for given geographical areas 2 Anarchy cannot produce a uniform set of rules a Not everyone would join the same protection agency Independents competing firms b Protection agencies would conflict just as their customers conflict 3 Therefore society needs a government Claim 2b is answered by Friedman ls uniformity needed Why 7 What is importantpredz39ttakz39lz39y This is not the same as uniformity How would anarchy produce predictability 7 Arbitration agreements between protection agencies 7 Arbitrators make consistent decisions because their customers value predictability 7 Customers value predictability for the same reason that Wellman thinks predictability is good What about simplicity and uniformity 7 Customers may also value these things Courts could then provide them 7 How would courts provide them Compare stare detz39sz39s amp the common law 7 EXaInples ofother coordination problems screw amp bolt sizes computer components keyboard layouts Standardization is desirable in all these cases It is achieved without coercion or central planning Consumers desire uniformity producers see profit in conforming to a standard Birch Justice Criminals should compensate victims in full pay costs of enforcement 7 Restitution ratio The ratio of the judgment against the defendant to the costs that the defendant imposed 7 The just restitution ratio is 1 Anarcho7capitalist courts would raise the restitution ratio above 1 7 They acquire more customers by doing so 7 This is already unjust The system crashes 7 As R increases crime plummets 7 Eventually all but one court go out of business Outcomes 7 Last court may go out ofbusiness chaos amp crime wave 7 Last court stays in business becomes the state 7 Maybe an honest court resists the restitution7ratio increases it becomes a state Anarcho7capitalism either evolves into a state or collapses into chaos Responses Why this might not happen 7 Too high restitution ratio makes the restitution unrecoverable 7 May also induce criminals to fight rather than submit to arbitration 7 Could the criminals bring a case against the unjust arbitration company 7 Customers may disapprove ofunjust agencies Surveys show crime victims are not more punitive than average people This works iff there is a general social consensus a custom on the restitution ratio Ill Cowen Consumers desire peace among security agencies Two possibilities 7 Option 7 A stable network ofagencies evolves Cowen seems to intend some kind of multi7 lateral contract among all the security companies for how disputes between their clients should be resolved 7 Option 2 No stable network evolves If no network evolves we have chaos 7 Warfare between agencies 7 Lack ofpredictable effective laws lfa network evolves as Cowen seems to believe 7 The network can act like a monopoly or cartel to restrict output amp increase prices 7 They could introduce mxation 7 They could even expand into other sectors of the economy How would the collusion work 7 The network enforces conformity through punishing outlaw agencies Refuse extradition Refuse arbitration with them resort to violence 7 Why collusion here is more likely than in other industries In other industries cartels often break down due to free riding amp a sort ofprisoner s dilemma situation In this case the value ofthe product ofthe cartel is greater than the value of non7aligned firm s product This is not usually true in other industries Grocery eXaInple 7 Why is this collusion more likely than collusion among governments These firms are driven by profit Governments have less competition to begin with so less motive to collude Governments do a lot more than deal with legal relations between citizens How we might avoid government 7 Maybe consumers would own the arbitration firms mutuals or cooperatives 7 Collusion would occur only if approved by shareholdersconsumers IV Objections to Cowen Friedman Peace is assured by a eolleetz39on osz39lateml agreements between agencies 7 There is no single multi7lateral agreement 7 The arbitration agreements have no decision7making body 7 The bilateral agreements will not be to raise prices or restrict output because this would leave the pair of firms vulnerable to all the other firms Cowen But why eonldn ta large collection of firms form a cartel 7 The multi7lateral agreement might have lower transaction costs provide uniformity hence provide a better product 7 Protection is a networe z39ndmty Cooperation with other firms is essential to the value of the product This is untrue of supermarkets amp most other industries 7 Maybe Friedman thinks transaction costs will make esmblishment of the network impracticable But then if collusion one public good among agencies cannot be provided neither can the punishment of renegades be provided another public good among agencies 294 Caplan not in readings 7 Distinguish toordz39natz39onproklmx from prisoner s dilemmas Coordimtionpmklem A situation in which a group of agents people companies or whatever can each pro t zfthey can coordinate with each other eg choose some common standard or lose if they fail to coordinate ExaInple driving on which side of the road bilateral monopoly 7 Conformity is self7enforcing Individual non7conformists hurt themselves Prisoner s dilemmas A situation in which a group ofpeople usually 2 people each individually pro t most from some action called defection regardless of what the others do yet everyone is worse off if Megone defects than they would be if no one defected Examples polluting talking loud at party 7 Conformity requires independent enforcement Conformity by others makes non7conformity more pro table for individuals Arbitration agreements are coordination problems Price xing is a PD A network may have suf cient strength to solve a coordination problem but not to solve a PD 7 Empirical evidence Network industries rarely successfully collude Credit card network Bank clearinghouses PC computers Exception The NCAA Phil 2200 Outline of Unit 6 At the end of unit 6 students should know These people s basic Views Bakunin on Socialist anarchism how it is organized how it deals with criminals how it achieves equality The supreme value Right of secession Friedman on How police services should be provided How security companies resolve disputes amp wh How law should be provided How monopolies usually get esmblished How government creates a public goods problem Why government serves special interests Why Cowen s collusion doesn t occur Wellman Why we need government Birch What happens to the restitution ratio Ultimate results of anarchy Cowen Results ofprotection network Problem for lack of network Why collusion works for protection but not other industries These concepts Public goods problems Monopolies natural arti cial state Government Friedman s def coercion Uniformity oflaw vs predicmbility Restitution ratio Common law Network industry Coordination problem These eXaInples amp what they show The stolen TV amp the 2 security agencies Friedman The Civil Aeronautics Board The Arsonists Fire Insurance Company Grocery stores vs protection companies The Visa network Phil 2200 Notes 11 Marxist Theory of Exploitation To Discuss Today Intuitive motivations for criticizing capitalism Marx s attack on capitalism 7 Alienation 7 The Labor Theory ofValue 7 The theory of surplus value 7 The theory of exploitation I Why study Marxism For historical reasons Marx was perhaps the most in uential political philosopher in history N 13 of the world lived under Marxist regimes in the late 20th century 857100 million people killed by Marxist regimes Central to 20th century geopolitics the cold war etc The human race was almost destroyed over Marxism There are still Marxists around today Many other thinkers are ii uented by Marxian ideas Q Did he have a valid criticism of capitalism ll Intuitive Background Why people oppose capitalism Capitalist countries have large 65071077122 inequaliy Statistics httpwwwcensusgovhheswwwincomehtml Workers get low incomes Capimlists get high incomes But the workers are doing all the work This looks unjust Question How do the capitalists get so much money Why do the workers get so much less Ill The Theory of Alienation What are wages Wages are the price of labor power The nature oflabor Labor the worker s life7activity Worker sells it in order to live So he is like a slave he belongs to the capitalist class Alienation Worker does not consider his labor as a part of his life The product ofhis labor belongs to the capitalist Hence the worker s labor is alienated His own life activity comes to be something foreign Discuss Is this all true How bad is it What could be done about it IV The Theory of Exploitation Background economic concepts 7 Use7value vs exchange7value Use value The value an item has in virtue of one s ability to consumeuse it Exchange value The value an item has in virtue of one s ability to trade it for something Market value 7 Capital physical goods used in producing more goods Ex Factories tools money useable for investment 7 Capitalists People who own a lot of capiml Lakor Tbeog of Value LTV The price ofgoods on the market is determined by the madly mummy akor 5th of the good The price oflabor Wages are determined by the cost of existence and reproduction ofthe worker Surplus value 7 The difference between a the amount oflabor required to keep the worker alive and the amount of labor the worker can perform Or 7 The difference between a the price of labor and the price of the goods produced by the laborer The theory of exploitation 7 The capitalist gets the surplus value 7 Then he uses it to get more capital amp increase his power over the workers 7 Example the worker and the farrn7owner In sum 7 LTV Subsistence7level wages Theory of Surplus Value Theory ofEXploitation 7 Q Where do capitalists get their wealth A Purely from a already owning capital and b extracting the surplus value from the workers V Marxist Economics Effects of Mechanization amp Division of Labor What is the effect oftbegrowtb ofmpz39tal Increases the competition between the capimlists Capitalists seek to raise productive power amp lower labor costs Increasing mechanization Effect of mechanization Capitalist must sell more Lower prices Other capimlists introduce the same machines All are forced by competition to lower their prices below its new cost of production 213 Later This law is none other than that which within the uctuations oftrade periods necessarily level out the price of a commodity to its 031 ofprodmtz39on 213 Thus the capitalist will have won nothing by his own exertions but the obligation to supply more in the same labor time 214 Effect on workers Workers compete with each other Therefore as labour becomes more unsatisfying more repulsive competition increases and 2 wages decrease Mechanization more workers are discharged They can t nd new jobs 215 Also women and children must work Capitalist class shrinks workers increase The working class gains recruits from the higher strata ofvmz39eg also a mass ofpetty industrialists and small rentiers are hurled down into its ranks 216 In sum Mechanization amp Division oflabor Everyone is continually worse off VI Selected lncoherences Wages are decreasing andprices of consumer goods are decreasing Lower consumer prices higher real wages Productivity is increasing hit workers and capimlists are worse off Xhere are all the eXtra goods going Wages are at the minimum level determined by LTV and then they decrease more Contradicts LTV And how are the workers still alive New jobs require unskilled labor and workers are put out ofwork and can t nd jobs in new areas lfjobs require no skill anyone should be able to do them Capitalists are forced to sell kelow cost of production And they sell at cost of production Immediate contradiction And how are the capimlists still in business And why would they participate in an activity with 0 profit Capitalists eXtract surplus value from workers hit they only sell products at cost Xhere is the surplus value going Phil 2200 Notes 12 Marx vs Mainstream Economics To Discuss Today Standard economics price theory Contrast with Marxist economics Why are capitalists rich Basic assumptions of economics Human behavior tends to be instrumentally rational 7 Instrumental rationaliy Choosing the correct means of pursuing your goals according to your factual beliefs Eionomiis studies the nature and ionsequemes of instrumental rationaliy The law of diminishing marginal utility Important concepts 7 Utility A person s amount of desire7satisfaction Understood as a quantity determined by strength ofdesires and how well they are satis ed 7 Total utility ofX The utility a person receives from the total amount of good X that they have 7 Marginal utility ofX The change in a person s utility that would result from a small addition to the quantity of some good that they possess Mathematically The derivative of total utility with respect to quantity ofX possessed Law of Diminishing wagging utiliy As quantity of whatever good increases marginal utility decreases Examples 7 Orange juice 7 Money Total utility Utili arginal utility Total quantity of some good consumed Figure I Diminishing marginal utility 3 Demand curves slope downwards What is a demand curve price marginal utility ofconsumption Demand curve mirrors marginal utility curve Price Demand Quantity of the good Figure 2 A demand curve Demand curves slope downwards The lower the price the more you buy 7 For individual consumers 7 For society 4 Supply curves slope upwards What is a supply curve The principle of increasing marginal costs of production After the most ef cient production volume as production increases perfunit costs increase price marginal cost of production Supply curve Price Quantity of the good Figure 3 A supply curve Supply curves slope upwards The higher the price the more you produce amp sell 7 For individual producers 7 For society 5 Prices We have said 1 Price marginal utility of consumption 2 Price marginal cost of production 3 Therefore the price must be set at the point where marginal utility ofconsumption marginal cost ofproduction Supply curve Price Demand Quantity Figure 4 The market piice is determined by the intersection of supply and demand curves 6 What is price theory good for Enables qualitative predictions about utility ofvarious policies eg Rent control Tariffs Minimum wage laws Capiml gains taX rates Gives a response to Marx s theories 7 Marxism vs Price Theory The hair of mxtx 2 7 kmc tx 7 Marx cost socially necessary quantity oflabor Has a physical basis 7 Price Theory cost disutility Has a psychological basis The mathematimlfom of prodmtz39on mm 7 Marx Cost ofproduction represented by a number 7 Price Theory Distinguish marginal 051 from average cost Cost ofproduction represented by a 5mm What deteminexp 39tex 7 Marx Prices determined by labor costs 7 Price Theory Prices determined by supply and demand M17265 Both determined by human desires Dg rereme Minem ware616 2 7 kmz39nexmm x yourtex ofz39mome 7 Marx Two classes of people capitalists amp workers Their income has fundamentally different explanations 7 Price Theory No theoretically signi cant distinction All income is a price all prices determined by the same mechanism Why are mpz39talz39xtx 50 72M 7 Marx Capitalist wealth is surplus value expropriated from workers Capitalists do not produce value 7 Price Theory Salaries determined by supply amp demand like all prices Businessmen s salaries re ect High marginal value to businessmen s activities Hence high demand Low supply of competent businessmen E m ofmetbmtz39zatz39on 2 7 6 alz39gatz39orz 7 Marx lncreased competition among capitalists making capitalists poorer Overproduction businesses cannot sell everything they make Fewer jobs available unemployment Wages fall because oflower demand for labor businesses can produce the same amount with less labor so they will hire less labor 7 Price theory More goods someone must be consuming them Someone is better off Marginal value oflabor increases so wages amp employment increase In classical economics More productivity larger aggregate demand Sagx Law aggregate supply aggregate demand supply creates demand Supply Wage New demand 5 I Old demand Quantity of Labor Phil 2200 Notes 13 Communism in Theory lVlarX Engels Bakunin I What Does Marx Propose Social views 7 Abolition of the bourgeois family 88 Unclear what this means 7 Communal wives 7 Abolition ofnational divisions Xorld government Or cooperation between all governments Major economic views 7 Abolition of bourgeois property capiml No one may own means ofproduction privately State should own factories 7 Government should own all land 7 Progressive income tax 7 No inheritance 7 National bank with a monopoly 7 State should control all communication and transportation Xhy 7 Equal liability of all to labor Xhat does this mean 7 Distribute population over the countryside so there is no distinction between city amp country Khmer Rouge followed this 7 Free public school education for everyone Xhy public schools Objections Addressed in the Manifesto Private property is necessary for freedom amp independence Repbs 7 he workers don t get any property in the capitalist system 7 We only want to abolish bourgeois property and bourgeois freedom 7 Bourgeois freedom is only the freedom to buy and sell Communist society will have no buying or selling In communist society people won t work because they will have no incentives to do so Repbs 7 If this were true no one would work in capitalist society because the workers already get nothing 7 The whole ofthis objection is the tautology there can no longer be any wage labor when there is no longer any capital 86 7 You re biased because ofyour class interests 87 Communists would abolish the family Repbs 7 e re only abolishing the bourgeois family 88 7 Society already influences education 7 In capitalist society the family is corrupt children are turned into commodities The bourgeois clap7trap about the family is disgusting 88 Communists would introduce free love communal wives Repbs 7 We aim to do away with the smtus of women as mere instruments ofproduction 7 There is already free love Bourgeois men already have access to all women 7 The communist system is just more honest Communists would abolish the nation Rep 7 Workers already have no nation 7 Communism will eliminate exploimtion between nations 7 And will eliminate hostility between nations Overall The objections to communism are not deserving of serious examination 91 Marx vs Bakunin Mikhail Bakunin 19th7century socialist anarchist Criticized Marx s smte socialism B M B M B M B M B M CU wgwgwg If the proletariat is ruling over whom will it rule The old capitalists will still be around The Germans will enslave the Slaves Schoolboy drivel Bakunin doesn t undersmnd the economic preconditions for the revolution If you have a state you will have domination amp slavery The dictatorship will go away once the proletariat is completely successful Can the entire population be members ofthe government Yes because the thing starts with self7government of the township The government will have to be controlled by a small number of elected representatives The ass This is democratic nonsense political windbageryl The society will cease being political governmental functions will go away Also the so7called people s will disappears to make way for the real will of the cooperative The rulers will smrt looking down on the ordinary workers They will start serving themselves and the state rather than the workers This is human nature Bakunin doesn t know anything about workers cooperatives Bakunin is hallucinating A small group oflearned socialists will control everyone else No it won t Again the state will wither away If the state is a people s state why should it abolish itself The state is a temporary measure to overcome the remnants of the old society You can t achieve freedom by first having slavery Dictatorships only serve to perpetuate themselves Summary ofmain points Bakunin s main objections 7 The rulers of the communist state will enslave the people 7 They will serve only themselves 7 The state will not abolish itself Marx s main responses 7 The state will wither away because all class distinctions will disappear 7 Bakunin is an ass Phil 2200 Notes 14 Communism in Reality Courtois Malia Some problems with actual communist regimes General Repression No freedom of speechpress State controls all media Suppressed all dissent Dissidents may be sent to insane asylums reeducation camps or the gulag Suppressed religion Prohibited emigration Controlled nearly all aspects oflife where you live where you work who gets how much ofwhat goods In Cambodia 7 Khmer Rouge broke up families 7 Forced everyone out to the countryside to do forced labor on farms See The Killing Fields IL Economic Failures Problem of incentives Why be productive ifyou won t get paid any more for it 7 From each according to his ability to each according to his need 7 People who are good are punished People who are bad profit Problem of socialist calculation The state has no way of knowing how much of each thing should be produced 7 In the capimlist system the market pricing mechanism serves the function of controlling how much ofthings get produced 7 Without a market how can the state know what prices to set Lack ofcompetition 7 No competition to remove inefficient firms because ofgovernment monopoly Problem of government selfishness Government officials serve themselves rather than the people Problem ofgovernment incompetence Economy is controlled by people with political skills and correct ideology rather than by people with business skills Results 7 Frequent famines Permanent poverty 7 The experiment of Korea Divided in two in 1953 Per capita GDP Country Type ofgov t PPP 2007 Famines Weapons North Communist 1900 1995 fainine killed as Nuclear bomb Korea state many as 3 million south leeml 24800 None No nuclear bomb Korea democracy Economic Growth 1953 to 2001 manna V 5100130 a 339 3 par caplta In US Dollars 3 39l i i 1553 1 Ban 1 97M 1950 1990 Z U Source http wwwp aulnollcom K0 re a History Kore an incomehtml Death Toll Soviet Union 20 million China 65 million Cambodia 2 million Vietnam 1 million North Korea 2 million Total Estimates vary between 85 and 100 million IV ls Communism Morally Equal to Nazism Background We have very different attitudes towards communism amp Nazism Many movies about evils of the Nazis Very few about communism Many communists amp Marxists in American universities Few if any Nazis Hitler amp Nazis always used as example of ultimate evil not Stalin amp communists No one wants to talk to a Nazi But people can openly embrace communism Comparison Communist regimes killed more people They had more time and more people to kill Both were brutally repressive Nazis started WWII Communists dwarf started WWIH Possible differences Nazism based on hatred for Jews amp other minorities R9591 Communism based on hatred for 1 the bourgeois 2 businessmen 3 people who don t agree with communism quotcounter revolutionaries Communism seeks universal brotherhood 11 prbI Only after the above three groups were eliminated The Nazis also foresaw brotherhood after the Jews were eliminated 7 Communists were misguided idealists Nazis were evil prbI Both were misguided idealists and evil Both embraced the ideals of socialism Ideological difference Nazism was nationalist socialism Marxism was internationalist Why the difference in attitudes 7 America fought a war against Nazis The Soviets were our allies in that war We didn t dare fight a war with Russia after WWII 7 The greatest evils ofcommunism were concealed for decades 7 American intellectuals have been sympathetic to communism The responsibility ofintellectuals 7 Communism was devised by Marx amp other intellectuals 7 Intellectuals spread it over the world Pol Pot was educated in France 7 Intellectuals in America have continued to advocate Marxist amp socialist ideas 7 They continued after evidence of the failure ofcommunism was known Bertrand Russell British democratic socialist philosopher visited Russia in 7920 and concluded that the system had failed Smlin s mass murders were known in the 1950 s 7 Are intellectuals to blame for the deaths ofmillions Phil 2200 Outline of Unit 4 At the end of unit 4 students should know These concepts Alienation Use Value exchange Value Capital Surplus Value Exploitation Instrumental rationality Economics Utility total amp marginal Demand curve Supply curve These principles Labor theory ofValue Law of diminishing marginal utility Demand curves slope downwards Supply curves slope upwards Say s law Problems ofcommunism Approx death toll Economic problems Problem ofincentives Calculation problem Competition amp why it is needed Sel shness amp incompetence amp why these were a biger problem for communism than capitalism These people s Views Modern economics on Mechanization specialization What determines prices How capimlists get rich Marx on Mechanization specialization oflabor What determines prices How capimlists get rich Private property Withering away of smte Bakunin Bakunin on The state Whafs wrong with Marxism Courtois on Communism amp Nazism Responsibility of intellectuals Phil 2200 Notes 15 Rawls Theory of Distributive Justice I Basic Concepts DistrioutivejmtiieJustice in the distribution of goods wealth Palmnod month iomqjtiom ofolixtrioutiwjmtiie Say there is some overall pattern of distribution we should aim at Justice is a matter of closeness to the desired pattern EXaInples 7 Perfect equality 7 Distribution in accordance with need 7 Distribution in accordance with desertmerit Hi5107il l 0 l li0 5 ofdixtrioutiwjmtiie Say that whether a person is entitled to some bit of wealth depends on the process by which he got it Justice is a matter of following the right rules in acquiring property Ideas in Rawls Theory of Justice The Original Position A hypothetical situation in which the future members ofa society meet to agree upon the general political principles to govern their society Features of the OP 7 The Veil ofIgnomme no one knows what their position in the society will be In fact they know no personal infnn nati n about t 1 iucludiu the life plansvalues they are going to have 7 They have access to all relevant general information about society Also they are intelligent and make no errors in reasoning 7 They will choose political principles on the basis of self7interest Royf Two Primiplex ofjmtiie 7 First primiple Each person is to have an equal right to the most extensive basic liberty compatible with a similar liberty for others 7 Xeionolp 39mzfle the D ereme Primijle Social and economic inequalities are allowed only to the extent that they benefit those who are worst7off See diagram below How might this happen Perhaps ifmore productive people are rewarded with more wealth then the society as a whole will be richer so much so that even the relatively poor will be better off Three Possible Worlds A B C Ill Rawls Overall Argument 7 What would be chosen in the Original Position is just 7 Why Because the OP is set up in such a way as to guarantee a fair outcome The parties start in a position of equality and no one can unfairly privilege himself since no one knows their position in the society 2 Rawls Two Principles ofjustice would be chosen in the Original Position 3 Therefore Rawls Two Principles are just and so should be adopted IV Why Choose the Two Principles 2 The first principle would be chosen because the parties don t know what their plans and values will be therefore it makes sense to secure the most liberty possible to allow for pursuing whatever goals they will have Why would the second principle be chosen Two lines ofreasoning First First there would be a natural default assumption of equality Unless there was some special reason for privileging someone people would accept an even division ofthe wealth But obviously it would be acceptable to allow some inequality zfdoing so benefitted everyone It would not be acceptable otherwise since those not benefitted would not agree to the distribution Inequalities obviously benefit the people who get more They benefit Megone only if they benefit those who get 655 Therefore the parties would agree to allow economic inequalities only to the extent that they benefitted those worst off 36mm For very poor people money means a lot Some minimum level of income is necessary for anyone to have a decent life For the wealthy money has less impormnce if they lose some oftheir money it won t prevent them from having a decent life The parties in the Original Position would be more afraid ofwinding up poor than they would be eager to wind up rich They would want to minimize their risk of winding up badly off Rawls has them put an absolute priority on this ie they 0715 look at what the worst possible outcome is and try to improve that Therefore they would choose the system that maximizes the position of the poorest people b Phil 2200 Notes 16 Objections to Rawls I Dworkin s Objection to Hypothetical Contract Theory Actual contract provides an independent reason for action in compliance with its terms But hypothetical contracts are not contracts Why should we care about hypothetical agreements Hypothetical agreement is relevant when it reflects some other independent reason for action77 naInely when the reason why one would have agreed is a reason now to agree But sometimes it doesn t Eg if one would have agreed due to a different bargaining position Hypothetical agreement sometimes makes an action permissible The case of the accident victim But this can t be used to override actual disagreement Maybe the Original Position thought experiment just shows that it is in everyone s interests to agree to the Two Principles This would have to mean our antecedent interests from the standpoint of the op But this doesn t show anything about what is actually in our interests now Nor anything about what it is fair to impose on us Maybe the OP shows that the Two Principles are in everyone s interests once obviously unfair principles have been ruled out If this conclusion were true it could be defended directly without use of the OP If it can t be so defended then the OP does more than just impose obvious fairness requirements So the use ofthe OP can t be justified in this way Harsanyi Parties Would Choose Utilitarianism How to get to average utilitarianism 7 Rational choice rule Maximize personal expected utility 7 In the veil ofignorance Assign equal probability to being anyone in the society 7 Suppose there are npeople in the society U is the utility ofthe z39th person Then your expected utility is n 1 2H il 7 The avera e utili of the socie is n 2 W W I I 2U Total Ut111ty 1 Population n 7 These are equal Two decision rules 1 Maximize expected utility max7util 2 Maximize the worst outcome maximin Which is more rational 7 Maximin seems rational in those cases where it approximates max7util 7 When it deviates significantly from max7util it is intuitively irrational The example ofthe Chicago job Crossing the street etc The case ofthe retarded guy and the geniuses 7 So no reason to prefer maximin over maX7util 7 Related point All the reasons Rawls cites in favor of the Difference Principle would already be taken into account by a utilimrian calculation Ill Nozick The OP Rules out Morally Relevant Considerations at the Start OP is biased against historical theories 7 There is no way the parties in the OP would consider anything other than an end7state theory since they are choosing on consequentialist egoist grounds OP begs the question against natural property rights 7 The OP exercise assurnes society has a right to decide how to redistribute people s property and the only question is how they should distribute it No reason to think the OP results in a correct distribution 7 What if grades in a class were distributed according to a similar procedure Is there reason to think that the resulting distribution would be correct OP ignores any morally relevant factors affecting distributive justice other than equality and utility 7 Rawls does not mgue against any such factors he just assurnes there are none by setting up the OP 7 So the OP provides no grounds for rejecting theories that rely on such factors For instance Nozick s theory see neXt class Phil 2200 Notes 17 Nozick amp the Entitlement Theory The entitlement theory of distributive justice The entitlement theory needs three rules or kinds of rule 7 Aprinnple graeqm39xz39tz39on One may claim previouslyiunowned items provided one is using them and there is enough left over for others 2 Aprinnple afterlan Property can be transferred from one person to another by mutual consent 3 A p nnj le of reel eatz39on ofz39Iy39mtz39eex What to do when someone violates one of these rules Generally the offender has to pay back the victim Entitlement theory is birtorz39ml Against endstate theories The Ported LakorAVgument 1 Forced labor is wrong 2 Endistate theories sanction forced labor a People get money through labor b Hence forcing them to give their money to others is like forcing them to labor for the benefit ofthose others 3 So endistate theories are wrong The flaveg Argument 1 No one can own another person even partially 2 Endistate theories imply that people can partially own other people a Ownership ofX the right to decide how X is used b Endismte theories give you a right to the fruits of others labor c This is a right to decide what use other people are put to 3 So endistate theories are wrong The Coem39on Argument 1 People have a right to be free from unprovoked coercion 2 Endistate theories require violations of this right a Redistribution must be imposed forcibly b Taxpayers have not violated anyone s rights just by being around and having money c So such redistribution is unprovoked coercion 3 Therefore endistate theories are wrong Ill Objections to Nozick Nagel s objections 7 Nozick s classification of theories of justice is incomplete Ignores theories that take into account ketb history and desirable ends 7 The Wilt Chamberlain argument fails because it assumes that when we distribute in accordance with a patterned principle of distributive justice we distribute akxolute property rights But people with patterned principles would say property rights are not ever absolute Discuss Does Nozick assume this Is the second point a strong criticism Property rights are not absolute 7 The cabin in the woods eXaInple The unjust history of actual holdings 7 The case of the Native Americans Problems with initial acquisition 7 Why may one acquire natural resources worsening the situation ofthose who can no longer use them 7 Should resources start out with communal ownership Phil 2200 Notes 18 Equality and Priority I Basic Ideas Utiliy How much wellibeing someone has Happiness success whatever gives life value 7 Total utility ofa society The sum of the utility of every person in that society 7 Average utility The total utility divided by the population Intrimit value The value that something has considered apart from its effects value something has as an end in itself Egalitarianism Equality in the distribution of utility across persons is intrinsically good Prim2y View Benefits for the worseroff are more important than equalisized benefits for the betterioff In other words there is diminishing marginal value of utilzy for an individual An eXaInple A is much better off than B We can redistribute wealth making A and B equal This will help B slightly less than it will harm A Administrative costs decreased incentives etc Would this be good Average utility of rst world owl J A B A 7 Egalitarianism Yes 7 Priority View Yes For different reason A practical application Socialism vs Capitalism Socialism Low productivity less freedom more equality Capimlism High productivity more freedom large inequalities 7 Which is better II For Egalitarianism 1 Inequality is ceteris paribus unfair 2 Unfairness is bad 3 So inequality is ceteris paribus bad Justification for 1 and 2 Direct appeal to intuition Ill The Leveling Down Objection Leveling Down Achieving equality by lowering the welfare of the betterioff 1 959 X is good in some respect only ifthere is someone for whom it is good in some respect Premise the Person Affecting Principle If equality is intrinsically good then Leveling Down is good in one respect Premise But Leveling Down is good for no one Premise So Leveling Down is not good in any respect From 1 3 So equality is not intrinsically good From 2 4 IV For the Priority View The Priority View gives results very similar to Egalitarianism But it completely avoids the Leveling Down Objection Phil 2200 Notes 19 Against Equality amp Priority I Premises The Benign Addz39lz39on Primzjjle Other things being equal ifpossible worlds X and are so related that Xwould be the result ofincreasing the utility of everyone in and adding some number of people all ofwhom have valuable lives then X is better than The Unrqjugmmt Premise Other things being equal if possible worlds X and are both perfectly egalimrian X has a larger population than but X has both a lower average utility and a lower total utility than then Xis worse than1 Tmmitz39w39y le is better than and is better than 239 then X is better than g H Three Possible Worlds World A World B World A 101 102 50 1 1 m 2 m 1 m 1 m Total utility 101 m Total utility 100 m Total utility 103 m Average 101 Average 50 Average 515 Figure 5 Graphical depiction of worlds A B and C The width ofeach bar represents a population size the height represents a level ofwellibeing Argument 1 A is better than B From the Unrepugnant Premise A is better than A From the Benign Addition Principle A is better than B From 1 2 and Transitivity Egalitarianism and the Priority View are false From 3 59 Comment Step 3 directly shows that the extra 3 points of total utility 15 points of average utility outweighs the inequality in world A This form of argument can be repeated for arbitrarily small increments in utility Hence the value of equality is zero 1An egalitarian world is a world in which utility is evenly distributed across persons III In Defense of the Benign Addition Principle Benign Addition is supported by The PanFlo Przmzjjle lfone possible world would be preferred over another by everyone existing in either world then the former world is better than the latter IV In Defense of the Unrepugnant Premise This principle is accepted by everyone in population ethics 7 Follows from Average Utility Principle 7 Follows from Total Utility Principle 7 Follows from any principle anywhere in between Endorsed even by those who accept the repugnant conclusion V In Defense of Transitivity The Money Pump Suppose you have intransitive preferences You prefer A to B B to C and C to A A You presently have A You would be willing 7 to pay a small amount ofmoney to trade A for C 7 to pay a small amount ofmoney to trade C for B 7 to pay a small amount ofmoney to trade B for A V 7 etc This seems irrational The Dominante Agument Suppose A is better than B which is better than C which is better than A Consider the values of the following two combinations A B C B C A We can construct an argument that the first combination is better than the second Why It is better with respect to each of the three comparisons A gt B B gt C C gt A This is absurd because the two combinations are the saIne Conclusion The supposition is impossible A cannot be better than B B better than C and yet C better than A Phil 2200 Overview of Unit 5 By the end ofunit 5 students should know These concepts The Original Position Veil ofignorance Distributive Justice Historical conception Endistate conceptions These eXaInples amp what they show The unconscious accident victim The Chicago job Remrded guy amp geniuses Distributing grades by social contract Wilt Chamberlain Cabin in the woods These principles Rawls 2 principles of justice esp the Difference Principle The Entitlement Theory of Dist Justice Pr of Acquisition Pr of Transfer Pr of Rectification Maximin Expected utility maximization Egalitarianism The priority View Transitivity Pareto principle These people s views Rawls Nozick Dworkin Harsanyi Nagel Parfit Huemer These arguments Rawls main argument for adopting his 2 Principles Why unconscious accident victim not analogous to Rawls theory Why OP doesn t help show that Rawls principles best serve our interests after unfair principles are removed Why the OP leads to average utilitarianism Why eXpectediutilityimaximization is better than maXimin How OP might be biased against theories like Nozick s How wealthiredistribution might be like forced labor or slavery how it might violate individuals rights which rights Main argument for egalimrianism Leveling down objection Huemer s argument against priority view incl its 3 premises Money pump argument