VI.2 Predatory Political
Economy
Fabulous Wealth for a Few, Minimal Life Chances for the Many
In all the political systems of the world, much of politics is economics and
most of economics is also politics . . . For many good reasons politics and
economics have to be held together in the analysis of basic social mechanisms
and systems.
Charles Lindblom (b. 1917)
If the misery of the poor be caused not by the laws of nature, but by our
institutions, great is our sin.
Charles Darwin (1809-82)
Poverty is like punishment for a crime you didn't commit.
Eli Khamarov
For every talent that poverty has stimulated it has blighted a
hundred.
Gardner, John W.
(1912-2002)
Poverty often deprives a man of all spirit and virtue; it is
hard for an empty bag to stand upright.
Benjamin Franklin (1706-90)
The poverty of our century is unlike that of any other. It is
not, as poverty was before, the result of natural scarcity, but of a set of
priorities imposed upon the rest of the world by the rich. Consequently, the
modern poor are not pitied...but written off as trash. The twentieth-century
consumer economy has produced the first culture for which a beggar is a
reminder of nothing.
John Berger (b. 1926)
Predatory political economy together with rapidly expanding populations
produce and maintain the underprivileged multitude--the many who lack a decent
standard of living, adequate education, and economic security.
Money has at least two primary purposes--a means for exchange and to
accumulate wealth. However, if most of the money is pulled out of circulation
when it ends up as wealth in a few hands, then there is not much left for
exchange. Thus, the economy becomes anemic because "the folks ain't got no
money to buy stuff."
This writer
On Political Economy:
A. Concise Findings on Political
Economy
B. Detrimental Dupery in
Economics
C. The Perniciousness of
Predatory Capitalism
D. A New Type of Entrepreneur,
the Plutocrat
E. Consumerism as a Form of
Social Control
F.
How Well Does Capitalism Work in
the U.S.?
G. A Critique of Capitalism by
A. Einstein
On Property:
H.
Can Private Property
beyond Need be Justified?
I. Views on Property from
Antiquity to Modernity
J. Property and Full Property
Ownership Defined
K. Rights and Property Rights Defined
L. Indebtedness to Arnold Künzli
Introduction
This chapter is primarily about political economy that determines how much
property or goods, when, where and how the individual may obtain.
Until animals with larger brains and the capacity for higher and moral thought
came along, the earth belonged in common to the fittest among plants and
animals. Animal and human "nature was red in tooth and claw," that
is, "might made
right." Although rules regulating personal effects within the family or group
were probably already present in prehistoric times, more complex property
relations evolved once the domestication of plants and animals
created things over and above simple personal belongings. Fertile land was
then the primary source of wealth and was initially owned in common.
Only later, when a
concentration of power gave rise to classes, was it appropriated by an elite
and used to exploit the lower classes. It all started when:
The first man who, having enclosed a piece of ground, bethought of saying
"This is mine" and found people simple enough to believe him, was the real
founder of civil society. From how many crimes, wars, and murders, from how
many horrors and misfortunes might not anyone have saved mankind, by pulling
up the stakes, or filling up the ditch, and crying to his fellows: "Beware
of listening to this impostor; you are undone if you once forget that the
fruit of this earth belong to us all, and the earth itself to nobody."
Jean-Jacques Rousseau (1712-1778)
Property relations among animals are amoral, but among people they can be
moral or immoral, just or unjust. They can be immoral because the capacity for
higher thought also allows unjust property relations through
methods of expediency, hypocritical cunning, craftiness, and deceitfulness,
see
Antisocial Minds and Their Means
for a
full explanation. But moral thought, and this is good
news, allows for property relations grounded in justice, that is, a system
where everybody gets what he or she deserves here and now.
To understand property rights and relations
we need definitions. As one researcher correctly observed: "It is quite striking that discussions of property rights
whether sociological, political, or philosophical usually avoid such
adequate stipulations." This way, however, the existing property inequalities can be
maintained because obscurity offers security from rational discussion and
therefore detection. Therefore, the concepts of property, property ownership,
and property rights are added after first explaining the claims for property
rights, the sources and detrimental results of
predatory greed, and finally presenting "property" views from a variety of sources.
A.
Concise Findings on Political Economy
According to the law of nature it is only
fair that no one should become richer through damages and injuries
suffered by another.
Sextus Pomponius (1st-2nd century CE)
There is no such thing
as left or right political economy,
there is only good and bad.
Gerhard Schroeder, German Chancellor (b. 1944)
Above all things, good policy is to be used that the treasure and monies
in a state be not gathered into few hands. . . . [Because] money is like manure
[fertilizer] not good except it be spread.
Francis Bacon (1561-1626)
So long as all the increased wealth which modern progress brings, goes but to
build up great fortunes, to increase luxury, and make sharper the contest
between the house of have and the house of want, progress is not real and
cannot be permanent.
Henry George (1839-1897)
The crippling of individuals I consider the worst evil
of capitalism. Our whole educational system suffers from this evil. An
exaggerated competitive attitude is inculcated into the student, who is
trained to worship acquisitive success as a preparation for his future
career.
Albert Einstein (1879-1955)
Capitalism is the astounding belief that the most
wickedest of men will do the most wickedest of things for the greatest good
of everyone [that is, private vices producing public good, selfishness doing the
work of unselfishness].
John Maynard Keynes (1883-1946)
Advocates of capitalism are very apt to appeal to the
sacred principles of liberty, which are embodied in one maxim: The fortunate
must not be restrained in the exercise of tyranny over the unfortunate.
Bertrand Russell (1872-1970)
. . . nowhere have we really
overcome what Thorstein Veblen called "the predatory phase" of human
development. The observable economic facts belong to that phase and
even such laws as we can derive from them are not applicable to other
phases.
Albert Einstein (1879-1955)
The forces in a capitalist society, if left unchecked,
tend to make the rich richer and the poor poorer.
Jawaharlal Nehru (1889-1964)
The
great monopoly in this country is the money monopoly. So long as
it exists, our old variety of freedom and individual energy of
development are out of the question.
and
The
truth is, we are all caught in a great economic system which is
heartless.
Woodrow Wilson (1856-1924) U.S. President (1913-21)
The American system of ours, call it Americanism, call
it capitalism, call it what you like, gives each and every one of us a
great opportunity if we only seize it with both hands and make the most of
it. . . . My rackets are run on strictly along American lines and they are
going to stay that way.
Al Capone (1899-1947) U.S. gangster
Power concedes nothing without a demand. The struggle for
justice must never be adjourned. The forces of injustice do not take
vacations. Societies are not static in this regard. They await the political
and civic energies of individuals who engage the arenas of power, multiply
their numbers and emblazon in deeds and institutions the immortal principle
that "Here the People Rule."
Ralph Nader (b. 1934)
No business is so essentially the public's business
as the industry and commerce on which the people's lively hood depends,
and to entrust it to private persons to be managed for private profit is a
folly similar . . . to that of surrendering the functions of political
government to kings and nobles to be conducted for their personal
glorification.
Edward Bellamy (1850-98)
Concluding commentary
Promoters of capitalism with strong property rights accuse those who
critique their claims for unlimited private property and property beyond
need of wanting to abolish these rights. How hypocritical, for it is
these agents who already abolished these rights for the large majority.
To better understand this assertion, one needs to distinguish between at
least three kinds of private property:
1.
Personal property to which one has an exclusive right are the needs for
life such as food, shelter, education, and the means to health care and
social security.
2.
Personal property beyond needs--hoarding and luxuries--to which one may
have a right if as good and enough is left for all others.
3. Large
holdings, on which others depend for their existence, such as the means
of production--goods and services, etc.--to which one has no
unrestricted right if any rights at all.
Finally, Universal Human Rights for survival and a quality life
trump private property rights that result in accumulation beyond need.
Moreover, economic totalitarianism such as neo-liberal globalization,
where individual players in trading nations benefit but not the people,
is a form of political repression that violates universal human rights
and detrimentally reduces a nation's economic sovereignty.
B.
Detrimental
Dupery in Economics
Traditional democratic theory is mistaken when it treats the economy
as a non-political domain ruled by "the invisible hand of the market
place" and other implausible economic laws. Therefore, political
democracy must be extended to include the economy.
This writer
The study of economics
has to date and for the most part avoided questions
of ethics and in particular those of social justice and a just
social contract. It is supposedly a social science that studies the
production, distribution, and consumption of goods and services.
However, it has obviously failed to integrate the concreteness of
economic reality with the well-being of individuals and society as a
whole.
At the very least, honest work should be available to all people.
Moreover trade, commerce and industry should be monitored to
eliminate and prevent dishonest and exploitative practices. "By this
criterion, the absence of poverty is a better benchmark of a
government's success than the presence of millionaires and
billionaires."
Dupery in economics, at least in the U.S., consists mainly of
misrepresentations of concepts and
the sloganeering of self-serving mythologies that bamboozle the public:
-
"All benefit from free trade between nations." This is usually justified by the
law of comparative advantage. This law correctly states that when every
nations produces whatever they are most competitive in and then trade, each
party benefits. However, not all but mostly a few benefit because it is individuals
in those nations who trade and gain but not the people who make up the
nations.
-
"The invisible hand of the market place regulates for the best."
This suggests that the market works by itself and best when not interfered
with. This illusion, suggests Paul L. Wachtel, "enabled all to feel that they
had no responsibility for the way goods are distributed. we must, after all,
bow before the laws of economics." In actuality, the macro economy is manipulated by self-serving
special interests who want no oversight. Thus, the invisible hand made visible
is a clenched fist with the middle finger extended. As I write (Dec. 2008), 35
years of deregulation and privatization of enterprises that need to be owned
or regulated by the people's governments has caused the worst global recession
since the Great Depression (1929-most of the 1930s). It is an implosion of
predatory capitalism. The wolves of Wall Street were turned loose on the sheep
of Main Street, and the sheep got fleeced. Now the sheep are told that it is
for their own good to save at their expense the wolves; thus, enabling them to
continue.
-
"Competition made this country great" the capitalist
propaganda machine tells us. In truth, capitalists hate competition
and are in favor of monopolies. In fact, the capitalist system
naturally eliminates the weaker ones and leads to a few who then
share a monopoly. Although, the strongest, most competitive, player
could put the few remaining ones out of business, this is not
happening because unshared monopolies, on account of government
intervention, are prohibited by law. It
follows that there is now only competition in sales but not price,
and the consumer loses.
-
"Record profits
are the reward for our entrepreneurial genius and risk taking."
However, they forget to mention that it was made possible by
favorable legislation und other parts of an unjust social contract.
-
"Heavy losses" in our industry are not our fault because the
underlying cause is an inherent inefficiency due to a lack of consolidation.
Therefore, the regulators must allow us to merge.
This has the consequence of eliminating real competition toward a shared
monopoly.
-
"It is in the national interest that the government bails us
out." This is a cry for help from big business that on account of
mismanagement face difficulties or bankruptcy. They tell us,
"not our fault! The old management made serious mistakes, but they
are now all fired. However, we are so
large [on account of being shared monopolies] that it is in the national interest that the government, meaning the taxpayers, bails us out."
And the old management often leaves with a "golden handshake or
golden parachute,"
meaning they get a multimillion dollar severance packages.
-
"Winner-take-all
economics" and "a natural aristocracy" is
justified by the definition of "economic man (homo economicus)" as
naturally selfishness and devoid of altruism. These attributes are supposed to
support the theory that society is better off when everybody pursues selfish
goals. In the real world, most people by nature are actually unselfish and
charitable depending on circumstances. It is this innate morality that keeps
societies functioning.
-
"A rising tide lifts all boats" is meant to convey the
idea that if the economy does well, both rich and poor benefit.
However, many small boats
are solidly anchored to the bottom and thus are condemned to stay
there or worse, drown. A few days ago (August 2008), the U.S.
President announced "the state of the economy is good, exports and
productivity are up." He, who has an MBA from Harvard University, is
either ignorant or lying, for it is the exporter who benefits and
the owners of the means of production who benefit from productivity
gains but not the general economy or public.
-
"The flat tax is fair and simplifies the tax code."
This is
a harmful proposal because under a tax system with a constant tax
rate everybody, the economy's winners and losers, pays the same
proportion. It
follows that for the state to raise the same amount of money under a
flat rate tax requires that the rich pay less and the poor pay more
than they would under a progressive tax system. In case of
a flat tax as a consumption tax, the rich are favored at the expense
of the many. For the many spent necessarily all or most of their
income on goods they need to survive--hence, all their income is
"flat taxed." However, the rich spent only a fraction of their
income necessarily--thus, most of their income is exempt from
taxation as is their spending on investments.
-
"Income
redistribution
takes from those who earned it
and hands it to those who do not deserve it." This is not true
because it is a correction of the unjust distributions of benefits
and burdens in a society. Those who disproportionately profit should
pay a proportional amount of the expenses that made those profits
possible. That is, taxes to run society and just compensation for
workers should come out of receipts before profits are declared for
otherwise they are not really profits but rip offs.
-
"Rising Wages are
the cause of inflation."
This is a bold lie for the most part. Because historically, rising
prizes for goods are caused by the motive for increased profits. In
fact, rising wages come from a fraction of the productivity gains
passed on. For instance, in the U.S. productivity has quadrupled since
the 1950's. However, real wages--their purchasing power--has only
partially increased since and fallen in recent years. This means, in
real wages their is a downward trend in large part due to "free
trade" and "globalization."
-
"We must defer
the retirement age because people live longer."
That people live longer is true,
but that we must defer retirement is false. The reason being that
productivity quadruplet in the last fifty years. Hence, a
normally 40 years working life yields now 160 years of work. By
contrast, life expectancy increased by only 10 years or so. Yet we
are being told that to provide for these additional years we have to
delay retirement closer to the end of life. Instead, the facts
indicate that the means for voluntary retirement should be made
available at a much younger age, e.g., at age 50.
-
"We must reduce the money spent on welfare."
Yes, absolutely, however, let us start with those who do not
need it but get the lion's share. Being on welfare, as defined by
economists, means: "Anybody, individuals, corporations,
institutions, etc., who gets more out of a system than contributes
to it is on welfare." By this commonsensical explanation, most of
the world's millionaires and larger corporations, but for sure the
six hundred billionaires who have as much wealth as the 50% of
humanity who are at the bottom are on welfare. Taking back this
welfare theft and redistributing it in the form of just wages and
job opportunities would substantially reduce or even eliminate
need-based welfare.
-
"Unemployment of
about 4% is a natural part of the economy."
They call it natural unemployment, and it is willfully maintained around 5%
so that more workers chase fewer jobs and are at a disadvantage when
negotiating wages. Instead, the economy could be organized so that
there are many more available jobs than workers to fill them. Hence,
the workers could now negotiate just wages instead of being
exploited as often is the case. At one time Switzerland had 15% more
job vacancies than workers that could fill them. The result was one
of the highest wage scale among the industrialized nations.
-
"Social engineering ruins this country."
Here, the term "social engineering" is used by those opposing social
improvement or progress through government action as a derogatory
term for inefficient meddling that left alone would solve social
problems. However, they ignore that we have now antisocial
engineering for private profit at the expense of the multitude. Hence, social
engineering is the antidote to antisocial engineering and it is "the application of methods regarded as similar
to engineering techniques in their emphasis on practicality, efficiency, and
moral neutrality in an effort to solve a social problem or improve the condition
of society."
C. The Perniciousness of Predatory Capitalism
When the wolves are free, the sheep get fleeced.
Bill Moyers (b. 1934)
Capitalism survives by forcing the majority, whom it
exploits, to define their own interests as narrowly as possible. This was
once achieved by extensive deprivation. Today in the developed countries
it is being achieved by imposing a false standard of what is and what is
not desirable.
Peter Berger (b. 1926)
The large scale ownership of the means of production [goods
and services] by a minority of the population, who consigns the rest to a
shorter life expectancy, poorer health, less education, more toil and
greater misery, requires considerable more justification than the various
philosophical arguments which have been offered for it. And until
compelling arguments have been presented which validate property de jure
[by right or law], why should anyone be expected to feel morally obliged
to comply with the property claims of that minority which, at the expense
of the rest, enjoys the benefits of the institution of private property
which pervades our society? And by what right does that minority and
its agents coerce others into respecting those claims, when the claims
lack adequate justification.
Alan Brian Carter (b. 1952)
Today, the ideology of
Neo-liberalism or Neo-conservatism that drives globalization is predatory
capitalism on an international scale. In addition to the destructive
consequences, as pointed out by Carter above, one finds other detrimental
impacts:
-
As the market economy is
internationalized, there is an almost proportionate decline in
participating nation states' economic sovereignty. Hence, the even
democratic governments, supposedly of, for, and by the people,
can neither protect their people from unfair competition nor from the loss
of their workplace, that is, their livelihood.
-
Increases in productivity,
mechanization, automation, and computerization have drastically reduced
the need to employ the many. Workplaces, that would be the sources of
income or means of livelihood for the majority of the world population,
are being "downsized," eliminated, or moved elsewhere. The many who have
neither property nor the power of contract to participate in the global
market economy are being sacrificed with the consequences as pointed out
above by Carter.
-
Without justification, the
socially excluded masses, the majority of human beings, are simply left to their fate in the less
developed world or are allowed to exist as unfortunate burdens in the more
developed world.
Conclusion: The preceding is not a
prediction of a future nightmarish scenario. This is an existing,
increasing calamity that already effects a majority. At present (2008),
some 600 multi-billionaires already have as much wealth as 50% of the
world's population who exist at the lower end of the economic scale. With
a world population of 6,000 million, this means that each of these wealthy
individuals has as much property as 5 million of the poorest.
D.
A New Type of Entrepreneur, the Plutocrat
W.G. Sumner (1840-1910),
an American economist and sociologist, assessed the ravages of
plutocracy in U.S. society in the late 1880s. He wrote:
A plutocrat is a man who, having the possession of
capital, and having the power of it at his disposal, uses it, not
industrially, but politically; instead of employing laborers, he
enlists lobbyists. Instead of applying capital to land, he operates
upon the market by legislation, by artificial monopoly, by
legislative privileges; he creates jobs, and erects combinations,
which are half political and half industrial; he practices upon the
industrial vices, makes an engine of venality, expends his
ingenuity, not on processes of production, but on ‘knowledge of
men,’ and on the tactics of the lobby. The modern industrial system
gives him a magnificent field, one far more profitable, very often,
than that of legitimate industry.
E.
Consumerism as a Form of Social Control
In
his work ONE-DIMENSIONAL MAN, Herbert Marcuse (1898-1979)
strongly criticizes consumerism and the illusory practice of
political freedom. He claims that political freedom is reduced to
a choice between indistinguishable political candidates who engage
in inconsequential, technical debates that are overstated to
mirror a functional democracy. Consumerism, he infers, is a form
of social control because the economic rationality of advanced
capitalism is based on falsifying people's real needs in order to
maintain a controlling market system of production and
consumption.
Moreover, he finds that the system we live is actually authoritarian
rather than democratic because a few individuals are dictating our
perceptions of freedom by only allowing us choices to buy for happiness.
It is in this state of “unfreedom” in which consumers act irrationally
by working more than they are required to fulfill actual basic needs,
ignoring the psychologically destructive effects, ignoring the waste and
environmental damage it causes, and also by searching for social
connection through material items.
He concludes that the system is even more irrational in the sense that
the creation of new products, calling for the disposal of old products,
fuels the economy and encourages the increased need to work more to buy
more. An individual loses his or her humanity and becomes a tool to the
industrial machine and a cog in the consumer machine. Additionally
advertising sustains consumerism, which disintegrates societal demeanor,
delivered in bulk and informing the masses that happiness can be bought,
an idea that is psychologically damaging.
In sum: The deficiency of consumerism and illusory democracy is
destructive to the free development of real human needs and to the full
human potential everyone is entitled to.
Individually
and jointly, the two deficiencies generate a one-dimensional society
producing one-dimensional man.
F. How Well Does Capitalism Work in the U.S.?
A society, and the functionality of
its democracy, may be appraised by how much freedom and well-being
its citizens enjoy.
This writer
The U.S. appears to be "the world's foremost promoter of
globalization." Thus, economic performance in this country should
give us an idea of what the world community may at best expect.
When comparing
more than sixty separate items
concerning prosperity, quality of life, opportunity, personal
security, and values were compared with other industrialized
countries, the U.S. was below average in two-thirds of the cases
(forty-three), and was at or near the bottom of the list in more
than half (thirty-three). The problem is that in the U.S.,
negative freedom or rights are guaranteed by the U.S.
Constitution, but positive freedom or rights are not, they are at
best implied. By contrast, the constitutions of some other
industrialized nations, and the global human rights norms of the
United Nations have provisions for both kinds of freedom. For
an elaboration on the noted conditions in the U.S., see the
chapter
Evaluating Society, Case in
Point: The US.
G.
A Critique of Capitalism by A. Einstein
This essay was originally published under the title "Why Socialism" in the
first issue of Monthly Review (May
1949), © 2008 (my emphases).
Is it advisable for one who is not an expert on economic and social issues
to express views on the subject of socialism? I believe for a number of
reasons that it is.
Let us first consider the question from the point of view of scientific
knowledge. It might appear that there are no essential methodological
differences between astronomy and economics: scientists in both fields
attempt to discover laws of general acceptability for a circumscribed
group of phenomena in order to make the interconnection of these phenomena
as clearly understandable as possible. But in reality such methodological
differences do exist. The discovery of general laws in the field of
economics is made difficult by the circumstance that observed economic
phenomena are often affected by many factors which are very hard to
evaluate separately. In addition, the experience which has accumulated
since the beginning of the so-called civilized period of human history
has—as is well known—been largely influenced and limited by causes which
are by no means exclusively economic in nature. For example, most of the
major states of history owed their existence to conquest. The
conquering peoples established themselves, legally and economically, as
the privileged class of the conquered country. They seized for
themselves a monopoly of the land ownership and appointed a priesthood
from among their own ranks. The priests, in control of education, made the
class division of society into a permanent institution and created a
system of values by which the people were thenceforth, to a large extent
unconsciously, guided in their social behavior.
But historic tradition is, so to speak, of yesterday; nowhere have
we really overcome what Thorstein Veblen called "the predatory phase" of
human development. The observable economic facts belong to that phase and
even such laws as we can derive from them are not applicable to other
phases. Since the real purpose of socialism is precisely to overcome and
advance beyond the predatory phase of human development, economic science
in its present state can throw little light on the socialist society of
the future.
Second, socialism is directed towards a social-ethical end.
Science, however, cannot create ends and, even less, instill them in human
beings; science, at most, can supply the means by which to attain certain
ends. But the ends themselves are conceived by personalities with lofty
ethical ideals and—if these ends are not stillborn, but vital and
vigorous—are adopted and carried forward by those many human beings who,
half unconsciously, determine the slow evolution of society.
For these reasons, we should be on our guard not to overestimate science
and scientific methods when it is a question of human problems; and we
should not assume that experts are the only ones who have a right to
express themselves on questions affecting the organization of society.
Innumerable voices have been asserting for some time now that human
society is passing through a crisis, that its stability has been gravely
shattered. It is characteristic of such a situation that individuals feel
indifferent or even hostile toward the group, small or large, to which
they belong. In order to illustrate my meaning, let me record here a
personal experience. I recently discussed with an intelligent and
well-disposed man the threat of another war, which in my opinion would
seriously endanger the existence of mankind, and I remarked that only a
supra-national organization would offer protection from that danger.
Thereupon my visitor, very calmly and coolly, said to me: "Why are you so
deeply opposed to the disappearance of the human race?"
I am sure that as little as a century ago no one would have so lightly
made a statement of this kind. It is the statement of a man who has
striven in vain to attain an equilibrium within himself and has more or
less lost hope of succeeding. It is the expression of a painful solitude
and isolation from which so many people are suffering in these days. What
is the cause? Is there a way out?
It is easy to raise such questions, but difficult to answer them with any
degree of assurance. I must try, however, as best I can, although I am
very conscious of the fact that our feelings and strivings are often
contradictory and obscure and that they cannot be expressed in easy and
simple formulas.
Man is, at one and the same time, a solitary being and a social being.
As a solitary being, he attempts to protect his own existence and that of
those who are closest to him, to satisfy his personal desires, and to
develop his innate abilities. As a social being, he seeks to gain the
recognition and affection of his fellow human beings, to share in their
pleasures, to comfort them in their sorrows, and to improve their
conditions of life. Only the existence of these varied, frequently
conflicting, strivings accounts for the special character of a man, and
their specific combination determines the extent to which an individual
can achieve an inner equilibrium and can contribute to the well-being of
society. It is quite possible that the relative strength of these two
drives is, in the main, fixed by inheritance. But the personality that
finally emerges is largely formed by the environment in which a man
happens to find himself during his development, by the structure of the
society in which he grows up, by the tradition of that society, and by its
appraisal of particular types of behavior. The abstract concept "society"
means to the individual human being the sum total of his direct and
indirect relations to his contemporaries and to all the people of earlier
generations. The individual is able to think, feel, strive, and work by
himself; but he depends so much upon society—in his physical,
intellectual, and emotional existence—that it is impossible to think of
him, or to understand him, outside the framework of society. It is
"society" which provides man with food, clothing, a home, the tools of
work, language, the forms of thought, and most of the content of thought;
his life is made possible through the labor and the accomplishments of the
many millions past and present who are all hidden behind the small word
"society."
It is evident, therefore, that the dependence of the individual upon
society is a fact of nature which cannot be abolished—just as in the case
of ants and bees. However, while the whole life process of ants and
bees is fixed down to the smallest detail by rigid, hereditary instincts,
the social pattern and interrelationships of human beings are very
variable and susceptible to change. Memory, the capacity to make new
combinations, the gift of oral communication have made possible
developments among human being which are not dictated by biological
necessities. Such developments manifest themselves in traditions,
institutions, and organizations; in literature; in scientific and
engineering accomplishments; in works of art. This explains how it happens
that, in a certain sense, man can influence his life through his own
conduct, and that in this process conscious thinking and wanting can play
a part.
Man acquires at birth, through heredity, a biological constitution
which we must consider fixed and unalterable, including the natural urges
which are characteristic of the human species. In addition, during his
lifetime, he acquires a cultural constitution which he adopts from society
through communication and through many other types of influences. It is
this cultural constitution which, with the passage of time, is subject to
change and which determines to a very large extent the relationship
between the individual and society. Modern anthropology has taught us,
through comparative investigation of so-called primitive cultures, that
the social behavior of human beings may differ greatly, depending upon
prevailing cultural patterns and the types of organization which
predominate in society. It is on this that those who are striving to
improve the lot of man may ground their hopes: human beings are not
condemned, because of their biological constitution, to annihilate each
other or to be at the mercy of a cruel, self-inflicted fate.
If we ask ourselves how the structure of society and the cultural
attitude of man should be changed in order to make human life as
satisfying as possible, we should constantly be conscious of the fact
that there are certain conditions which we are unable to modify. As
mentioned before, the biological nature of man is, for all practical
purposes, not subject to change. Furthermore, technological and
demographic developments of the last few centuries have created conditions
which are here to stay. In relatively densely settled populations with the
goods which are indispensable to their continued existence, an extreme
division of labor and a highly-centralized productive apparatus are
absolutely necessary. The time—which, looking back, seems so idyllic—is
gone forever when individuals or relatively small groups could be
completely self-sufficient. It is only a slight exaggeration to say that
mankind constitutes even now a planetary community of production and
consumption.
I have now reached the point where I may indicate briefly what to me
constitutes the essence of the crisis of our time. It concerns the
relationship of the individual to society. The individual has become more
conscious than ever of his dependence upon society. But he does not
experience this dependence as a positive asset, as an organic tie, as a
protective force, but rather as a threat to his natural rights, or even to
his economic existence. Moreover, his position in society is such that the
egotistical drives of his make-up are constantly being accentuated, while
his social drives, which are by nature weaker, progressively deteriorate.
All human beings, whatever their position in society, are suffering from
this process of deterioration. Unknowingly prisoners of their own egotism,
they feel insecure, lonely, and deprived of the naive, simple, and
unsophisticated enjoyment of life. Man can find meaning in life, short and
perilous as it is, only through devoting himself to society.
The economic anarchy of capitalist society as it exists today is, in my
opinion, the real source of the evil. We see before us a huge
community of producers the members of which are unceasingly striving to
deprive each other of the fruits of their collective labor—not by force,
but on the whole in faithful compliance with legally established rules. In
this respect, it is important to realize that the means of production—that
is to say, the entire productive capacity that is needed for producing
consumer goods as well as additional capital goods—may legally be, and for
the most part are, the private property of individuals.
For the sake of simplicity, in the discussion that follows I shall call
"workers" all those who do not share in the ownership of the means of
production—although this does not quite correspond to the customary use of
the term. The owner of the means of production is in a position to
purchase the labor power of the worker. By using the means of production,
the worker produces new goods which become the property of the capitalist.
The essential point about this process is the relation between what the
worker produces and what he is paid, both measured in terms of real value.
Insofar as the labor contract is "free," what the worker receives is
determined not by the real value of the goods he produces, but by his
minimum needs and by the capitalists' requirements for labor power in
relation to the number of workers competing for jobs. It is important to
understand that even in theory the payment of the worker is not determined
by the value of his product.
Private capital tends to become concentrated in few hands, partly
because of competition among the capitalists, and partly because
technological development and the increasing division of labor encourage
the formation of larger units of production at the expense of smaller
ones. The result of these developments is an oligarchy of private capital
the enormous power of which cannot be effectively checked even by a
democratically organized political society. This is true since the members
of legislative bodies are selected by political parties, largely financed
or otherwise influenced by private capitalists who, for all practical
purposes, separate the electorate from the legislature. The consequence is
that the representatives of the people do not in fact sufficiently protect
the interests of the underprivileged sections of the population. Moreover,
under existing conditions, private capitalists inevitably control,
directly or indirectly, the main sources of information (press, radio,
education). It is thus extremely difficult, and indeed in most cases quite
impossible, for the individual citizen to come to objective conclusions
and to make intelligent use of his political rights.
The situation prevailing in an economy based on the private ownership
of capital is thus characterized by two main principles: first, means
of production (capital) are privately owned and the owners dispose of them
as they see fit; second, the labor contract is free. Of course, there is
no such thing as a pure capitalist society in this sense. In particular,
it should be noted that the workers, through long and bitter political
struggles, have succeeded in securing a somewhat improved form of the
"free labor contract" for certain categories of workers. But taken as a
whole, the present day economy does not differ much from "pure"
capitalism.
Production is carried on for profit, not for use. There is no
provision that all those able and willing to work will always be in a
position to find employment; an "army of unemployed" almost always exists.
The worker is constantly in fear of losing his job. Since unemployed and
poorly paid workers do not provide a profitable market, the production of
consumers' goods is restricted, and great hardship is the consequence.
Technological progress frequently results in more unemployment rather than
in an easing of the burden of work for all. The profit motive, in
conjunction with competition among capitalists, is responsible for an
instability in the accumulation and utilization of capital which leads to
increasingly severe depressions. Unlimited competition leads to a huge
waste of labor, and to that crippling of the social consciousness of
individuals which I mentioned before.
This crippling of individuals I consider the worst evil of capitalism. Our
whole educational system suffers from this evil. An exaggerated
competitive attitude is inculcated into the student, who is trained to
worship acquisitive success as a preparation for his future career.
I am convinced there is only one way to eliminate these grave evils,
namely through the establishment of a socialist economy, accompanied by an
educational system which would be oriented toward social goals. In such an
economy, the means of production are owned by society itself and are
utilized in a planned fashion. A planned economy, which adjusts production
to the needs of the community, would distribute the work to be done among
all those able to work and would guarantee a livelihood to every man,
woman, and child. The education of the individual, in addition to
promoting his own innate abilities, would attempt to develop in him a
sense of responsibility for his fellow men in place of the glorification
of power and success in our present society.
Nevertheless, it is necessary to remember that a planned economy is not
yet socialism. A planned economy as such may be accompanied by the
complete enslavement of the individual. The achievement of socialism
requires the solution of some extremely difficult socio-political
problems: how is it possible, in view of the far-reaching centralization
of political and economic power, to prevent bureaucracy from becoming
all-powerful and overweening? How can the rights of the individual be
protected and therewith a democratic counterweight to the power of
bureaucracy be assured?
Clarity about the aims and problems of socialism is of greatest
significance in our age of transition. Since, under present circumstances,
free and unhindered discussion of these problems has come under a powerful
taboo, I consider the foundation of this magazine to be an important
public service.
H. Can Private Property beyond Need be Justified?
It is the law of property that controls the distribution of wealth in a
society; consequently there must be the most intimate relation between that
society's economic and social characteristics and the rules, practices, and
institutions of property law.
J. H. Merryman
This is mine! Are you sure? Be aware that property rights are not a relation between
property and and its owner but between owner and other
people. For there are no right holders if there are no
right respecters. People's survival and justified self-interest does not allow them to
grant or respect unrestricted property rights that may be detrimental to their well
being.
But the law protects my property!
Are you certain? Realize that the law may be
unjust, and like all unjust law, is therefore no law at all. For it is politics that determines "who gets what, how
much, when, and how." And unfortunately, politicians often act selfishly and
on behalf of the undeservedly wealthy and powerful.
This writer
Introduction
a. Primary Claims for
Private
Property and Rights
b. Why Claims for Private Property
beyond Need Fail
c. Objections to
Particular Kinds of Private Property
Introduction
Property is here defined as material and
educational goods that facilitate a standard of living required for the
development and maintenance of an authentic life, personal autonomy,
mental competence,
physical integrity, and social security. Many advocates
of strong property rights insist that in an ideal society individuals
should be able to enjoy their
property without any inference from others. And why it is "their"
property, they insist, is justified by the claims below either
individually or jointly.
a. Primary
Claims for Private Property and Rights
1.
The claim from having it earned suggests
that one has the right to the produce of one's labor. Examples are:
Employees have a right to their wages and salaries. Farmer have a right to harvest
what they planted earlier. Manufacturers and service providers have a
right to the "earnings" their ventures yield, etc.
Comment: This is a strong
argument provided that all others have the same opportunities to earn
likewise. However, the case can be made that the over-employed, those who
have the opportunity for above average earnings, do so at the expense of
the many under- and unemployed.
2.
The claim from
first
occupancy
entails the assumption that being the first person to take an object into
one's possession or being the first to occupy a plot of land establishes
property rights in whatever has been possessed or occupied.
Comment: There is nothing
wrong with that claim provided "there is as good and enough left for all
others." However, there is not at least since agriculture developed almost
everywhere and the world population expands faster than resources become
available.
3. The
claims from utility and efficiency are related.
Proponents assert that private property is by far more utilized for the
common good and efficient towards that purpose than other ways of
distributing resources. One researcher, Alan Ryan, sums up:
In general, the thought is that giving people property
rights in anything of value is the best way of ensuring that resources are
used as efficiently as possible. It is an empirical observation that
parks are more littered than private gardens, that simple societies
without private ownership do more damage to their land than complex,
private propertied societies, that centrally planned, publicly owned
economies such as that of the [former] Soviet Union are inefficient in
giving consumers what they want, and no better than economies based on on
private property so far as pollution, public health, job satisfaction and
the rest are concerned.
Comments:
-
Ryan's empirical
observations are false. There are more private gardens that are not
maintained than public parks.
-
And the opposite is true concerning simple
societies. For instance, the aboriginals of the Americas and Australia had
a deep "religious" reverence for the land and it remained undamaged until
it was controlled by "private property societies."
-
Also, public health
as measured by life expectancy has drastically fallen in Russia since it
became a private property society.
-
Moreover, unemployment and extreme
poverty formerly unknown in Russia is now rampant.
-
Also, Russia's soil and
climate limits agricultural yields, and if they would not have been forced
into an arms race by the West initiated cold war, they undoubtedly could
have produced more consumer goods.
-
Lastly, the failure of
Soviet style socialism, perhaps on account of micro-managing the economy
and military expenditures, was a tragedy for all of humanity, for it
eliminated capitalism's most serious competitor and opened the path to a
ruthless globalization where the major players, but not the people, in
those countries benefit.
4. The claim from human
nature entails a bundle of arguments:
-
The claim that
humans are by nature social animals. This
is the case because living in communities or societies had survival
advantages. And as David Hume (1711-76) tells us, claims to property arise
through the necessity of social interaction, which allows people to exist
socially. Moreover, Hume insists that we naturally desire to have the
pleasure derived from possessions to be as secure as those derived from
the mind. This is achieved, he holds, through the institution of private
property.
-
The claim from the
development of personality and morality
contends that private property is necessary if the individual is to
actualize sufficiently his or her potential as an individual.
-
The claim from liberty
holds that an equal redistribution of property would involve
unacceptable restrictions on individual freedom for it would take from
those who rightfully own to those who have less for various reasons and no
justified claims to someone's possessions. This is sometimes called an
egalitarian redistribution, but this is wrong because egalitarianism is the
belief that all people should have
equal
political, social, and economic rights, which then somewhat justify
unequal outcomes or possessions.
Comment: Humans also have
a strong desire for hoarding beyond need or setting up trust funds for
their offspring and for millennia to come. Do present generations have to
accept that some act on these desires of human nature and at their
deprivation?
5. The claim from
inheritance alleges that if a bequest from a predecessor (usually
parents or close relatives) was originally rightfully acquired, then it
should become the rightful property of the new owners.
Comment: Parents do have a
moral obligation for the well being of their offspring at least until they
have acquired the skills or means to make it on their own. However, the
children usually have done nothing to inherit large fortunes and at a
minimum it should be heavily taxed. Because fundamentally, the Earth
belongs to the living, the dead have neither a say in the matter nor
property rights.
6. The claim from divine grants.
These are assertions found in various world religions. The best known case
is that of the Roman Catholic Church. She derives at a divine grant by the
following argument:
1. The world is God's
property because He created it out of nothing in six days of hard labor.
We know this because He (the all-powerful) had to
rest on the seventh day. This, and the following is true, because the
Bible says so.
2. God's only son Jesus
created the office of Bishop of Rome, now the papacy, when in
Matthew 16:18 he is saying:
And I
say also unto thee, That thou
art Peter, and upon this rock [petra] I will build my church; and the gates of
hell shall not prevail against it.
3.
This is followed immediately by granting exclusive power over
everything on earth to this church. In Mathew 16:19 Jesus
proclaimed:
And I will give unto thee the keys of
the kingdom of heaven: and whatsoever thou shalt bind on earth shall
be bound in heaven: and whatsoever thou shalt loose on earth shall
be loosed in heaven.
Conclusion: By
divine grant, Earth and all it brings forth is administrated by the
papacy. The only legitimate property rights and governments are those who have the
approval or are granted by the papacy.
Comment: There is no
plausible evidence for these claims. The Bible was assembled,
modified, and in part written under the coercive influence of the
Roman nobility and powerful Roman families who controlled the papacy
for many centuries.
b. Why Claims for
Private Property beyond Need Fail
All of the above claims
fail, or are at least unconvincing, if the following criteria cannot be
overcome:
-
Laws enforcing property
rights work best when there is a moderate scarcity of goods, for
instance,
food. If there is an oversupply, an abundance, then no laws are necessary
to regulate how much individuals may acquire. If there is a moderate
scarcity, it may be regulated by laws rationing the commodity. However, if
there is an extreme scarcity, most people will disregard the law and
do whatever it takes to survive. It follows that those who have these
goods beyond need are at risk no matter how sophisticated or well justified their claims
are.
-
No matter by what claims
private property is acquired, from a moral point of view "there must be as good and enough left for
all others."
-
When a scarcity of goods
is created by the accumulation of private property beyond need, then this
hoarding, no matter by what means, is immoral and illegal if the
laws happen to be moral.
-
In general, justice is
served if and only if all get what they deserve. In connection with
property, it is the equal opportunity to acquire property and a just
reward proportional to the participation in these opportunities.
c. Objections to
Particular Kinds of Private Property
1.
Wealth beyond need when others suffer
No matter how acquired, property beyond the needs for a quality
life is not a relation between
property and its owner but between property owner and other
people because there are no property right holders if there are no
property right respecters whose justified self-interest may not allow them to
agree.
2. Parasitical
enterprises that would be better operated by the people
These are large businesses
that add nothing to a nation's wealth. While farming, manufacturing,
mining, and construction do add wealth, these for profit ventures carry
out necessary functions that could be more efficiently carried out by the
people, that is, their government. Examples are:
-
Banks and other large
financial institutions. Banks basically take the people's money, either
from individuals or the people's government, and make loans at a higher
interest rate then what it costs them. Government operated banks do not
need to make a profit, could be administratively more efficient, and could
therefore make loans at much lower rates.
-
Insurance companies
provide among other things the people's most essential insurance needs such as health, home,
accident, and car coverage. For example, the U.S. has one of the most
inefficient private health insurance systems in the world. With no
national insurance available, about 45 million have no health insurance
and face a shortened life expectancy and bankruptcy in case of a serious
medical condition. Government operated insurance companies do not need to
make a profit, could be administratively more efficient, and could
therefore provide coverage at much lower premiums.
-
Utility companies
that provide electricity, gas, and water are for the most part monopolies protected from
competition. If operated by the people, they would not have to make a
profit and would have no incentive to manipulate the markets to create
shortages for the purpose of extorting more profit from their customer.
Conclusion: These
enterprises need to be democratized, that is, operated and controlled by
the people for the benefit of all rather than a few individuals.
3. Extreme wealth on
account of its pernicious use
A society cannot allow extreme wealth to accumulate in a few hands for at
least three reasons:
First, wealth is readily convertible to influence and with it power
that then threatens democracy. And a reduced democratic way of life
reduces everyone’s freedom, independence, and self-government. For
example, the affluent do finance campaigns for legislators who see things
often in their benefactor's narrow self-interest.
Second,
the very affluent do purchase large, controlling junks of the mass
media that then creates a reality of their making while keeping the social
truth from the public.
Third, a concentration of wealth in a few hands deprives the many of
opportunities that would allow them to work their way up to a standard of
living that is closer to what the average would be. This is crucial, because
due to a lack of opportunity, the underprivileged already live at the
threshold of what is emotionally bearable. As Robert E. Franken, a motivational
psychologist, points out:
[these people] are losing
two very important attributes for good [mental] health, [namely,] seeing
the world less threatening and believing in one’s capacity to cope.
The same author
elaborates:
If people grew up with the idea that they live in a world filled with
opportunities and that they have the potential for interacting or coping
successfully with the world, they would naturally act constructively in their
interactions with the world. If, on the other hand, they grow up with the
belief that there is a scarcity of opportunities and that they are lacking in
potential to deal or cope with the world, they would be inclined to think more
destructively in their interactions with the world.
Conclusion: Extreme wealth
should not be permissible because it is a threat to democracy and
detrimental to the general public because they lose the benefits a genuine
rule of, for, and by the people has to offer.
4. Large privately
owned enterprises on which the well being of the many depends.
Justice being taken away, fabulous riches are nothing but great robberies.
Multinational corporations
and other large ones that have a monopoly or shared monopolies present
dangers similar to those attributed to "Extreme Wealth" above. In
addition, they deprive their employees of participation in decision making
processes that affects their livelihood. In recent history, through the
process known as globalization, they have pinned workers of different
countries against each other but reduced competition for themselves.
While it is true that we are all better off when everybody produces what
they are doing best--being most competitive in--and then trade, however,
this is a ruse when the trade takes place not between the people of a
nation but
between individuals, e.g., corporations in those nations who actually do
the trading and reap the benefits.
Conclusion: Large enterprises under private control
should not be permitted
because they are a threat to democracy and therefore detrimental to the
general public.
-
If "a board of directors" can hire and fire managers to
run these ventures, so can "a board of people" consisting of relevant
experts in the field.
-
And the people's managers would be patriotically
motivated because they work for their country rather than private creed.
-
Moreover, the many instead
of the few would benefit from increases in productivity and inventions.
-
And as important, these businesses could offer goods and services at
reduced prices because they do not have to make a profit.
I. Views on Property from Antiquity to Modernity
When wealth is
centralized the people are dispersed.
When wealth is distributed the
people are brought together
Confucius (ca. 551-479)
a. Plato
(427? -347? BCE)
b. The Christian Church Fathers--3rd-5th
Century
c. Today's Christianity on Property Relations
d. Thomas Jefferson (1743-1826)
e. Leo Tolstoy (1828-1910)
f. J. P. Morgan (1837-1913)
g. George Bernard Shaw (1856-1950)
h. Smedley D. Butler (1881-1940)
i. Noam Chomsky (b. 1928)
a. Plato
(427? -347? BCE)
1. On
Plutocracy, Government by the
Wealthy
Plato, who often uses his teacher Socrates as a mouthpiece, suggests that in a
plutocracy there will always be friction between the rich class and the poor
class. But worst of all, Socrates thinks, many citizens will have no proper
function. Many of the rich, for example, will simply spend money in the
pursuit of pleasure and carry out no constructive service for the community.
In addition, many of the poor will become either beggars or criminals.
Socrates defines plutocracy as a system where:
-
The constitution
[is] based on a property assessment, in which the rich rule, and the poor man
has no share in ruling.
-
It comes about, or
evolves from other systems, when the rulers raid the community’s treasure and
"find ways of spending money for themselves, then they stretch the laws
relating to this, then they and their wives disobey the law altogether.
-
But it does not end
here, for "From here they proceed further into money-making, and the more they
value it, the less they value virtue." And he
asks; "aren’t virtue and wealth so opposed that if they were set on a
scales, they’d always incline in opposite directions?"
-
The result is that
others will emulate them, for "what is valued is practiced, and what isn’t
valued is neglected. Then, in the end, . . . they praise and admire wealthy
people and appoint them as rulers, while they dishonor poor ones."
2. On
the
Impossibility of Being Exceedingly Good and Wealthy
A
concentration of wealth in the hands of a few is not only bad for society as a
whole, but, Plato suggests in the Laws, it is also detrimental to the holder
of such a fortune. He explains:
But to be at once exceedingly wealthy and good is impossible, if we mean
by the wealthy those who are accounted so by the vulgar, that is, the
exceptionally few who own property of great pecuniary [financial] value ---
the very thing a bad man would be likely to own. Now since this is so, I can
never concede to them that a rich man is truly happy unless he is also a good
man, but that one who is exceptionally good should be exceptionally wealthy
too is a mere impossibility (trans. A. E .Taylor).
b. The Christian Church Fathers--3rd-5th
Century
Luke in the
Bible:
Sell your possessions and give to charity; make yourselves
money belts which do not wear out, an unfailing treasure in heaven, where no
thief comes near nor moth destroys (Luke
12:33 New American Standard Bible (©1995).
For it is easier for a camel to go through a needle's eye, than
for a rich man to enter into the kingdom of God
(Luke 18:25).
And he lifted up his eyes on his disciples, and said, Blessed
[you who are] poor: for yours is the kingdom of God.
(Luke 6:20)
Give to every man that asketh of thee; and of him that taketh
away thy goods ask [them] not again [make no attempt to get it back] (Luke 6:30).
The term "church
fathers" may refer to any of the great bishops and other eminent Christian
teachers of the early centuries whose writings remained as a guide and court of appeal for
their successors, especially in reference to disputed points of faith or
practice.
If we consider the
many problems concerning private property, it
is no surprise that the Church Fathers differ in their opinions among themselves
and emphasize diverse aspects. Hence, we cannot speak of a common Church
doctrine. Nevertheless, and ignoring some fine distinction, they do agree on a
from the Gospel extracted grounding. The researcher Benn summarizes it this way:
According to the Church Fathers, property was both the consequence and
the social remedy for the sin of covetousness that came with the fall. But
since owners have appropriated what at one time belonged to all, they have a
duty to administer it for the benefit of all. ‘Our property,’ said Gregory
the Great, ‘is ours to distribute, but not ours to keep.’ The concept of the
owner as steward is the core of the traditional Christian view of property
(my emphasis).
Covetousness, then, the strong or inordinate desire of obtaining and
possessing that which belongs to another, is for the Church Fathers a cardinal
sin and the cause of much evil.
Again and again, as the researcher Künzli
(1919-2008) tells us,
"the Church Fathers
condemn those who though they already have plenty, want more and more. The
Fathers call upon humanity to ban or exile this insatiable passion."
And one of them, Gregory Thaumaturgus (ca. 213-270), even
argues:
that there is something dreadful about covetousness . . . whoever is
guilty of this sin, should be banished from the Church.
It follows as Künzli deduces,
"excommunication not of
communists but capitalists."
And Basil the Great
(330?-379) asserts, they are possessed by the "gold devil,"
for the insane ideas of these lunatics prevent them from seeing as things are;
instead, they see only gold and silver. Basil the Great, who came from a wealthy
family and founded an order of monks, already indicated in a sermon, one and a
half millennia before Marx, a theory of product fetishism:
You see only gold, you think only gold; . . . You rather see gold than
the sun. You want everything to turn into gold. . . Grain turns for you into
gold, the wine condenses for you into gold, the wool changes for you into
gold; every deal, every enterprise generates more gold for you. The gold
finally increases by itself when you collect interest. But still, you will
never be satisfied, and your greediness finds no [end] goal.
And Augustine of Hippo (354-430), the most important and influential of all the Church Fathers, who expounded a Christian philosophy that sought to combine
faith and reason, tells us that covetousness "is the root of all evil," and
whoever is seduced by this vice is in the devil’s snare.
c.
Today's Christianity on Property Relations
Unlimited
Wealth for the Few and Handouts for the Many
But how can it be explained that, in spite of the categorical and universal
condemnation of covetousness or greed by the Christian church to this day, we do have a
system of the most extreme capitalism in the USA, and a country that wants to
impose its economic ideology on the rest of the world? Moreover, the USA is
next to India the most religious, of the Christian kind, nation on earth. Some
even claim that the country was founded on Christian principles!
And in the USA, this belief system is not only that of the masses but also
that of the country's economically and politically dominant
class. Do they not read their sacred scriptures or listen to their preachers? Or does the clergy speak with a
forked tongue? That is, having different messages for those who have and those
who don’t. Is it, as Marx tells us, that they even provide a justification for
existing inequalities and injustices?
The philosopher Arnold Künzli in his Mein und Dein (Mine and Thine) analyzes the
Christian church’s position with respect to covetousness. That is, he finds that
the contemporary church holds a position already found in the early Church
Fathers:
-
They do not think in
terms of social-political or social-economic categories, but rather in
religious-social-ethical ones.
-
They do not wish to change the system or
structure of society but the humans that make up this society.
-
Hence, when they
denounce wealth as injustice or the work of the devil, they do not mean to
condemn wealth as material possessions, but rather people’s behavior in relation
to it.
-
Thus, for the most part, the Church Fathers are not social
revolutionaries -- they do not demand the elimination of the institution of
excess private property. Instead, they appeal to the owners to put their wealth
to good social utility.
-
Hence, for them, wealth by itself is value neutral, that
is, it is neither good nor bad. And wealth becomes bad only in connection with
human greed.
-
Moreover, from the Church’s point of view, legitimately acquired
wealth is a necessary precondition for almsgiving, and almsgiving in turn is
another justification for wealth.
And coming back to the Biblical command found in Luke that on should sell all of
one’s property and give the proceeds to the poor (Luke 12:33)? Well, the Church’s position is
probably best explained by the Bishop of Ruspe:
Considering human frailty on account of imperfection due to the original fall,
the command to rid oneself of all possessions is possible only for the
exceptional, the most or almost perfectly virtues. All others can still live
according to the scriptures, for added to the command is the demand "to give
alms."
However, one can give alms only
when one has wealth; hence, giving alms yields a good second place, and in this
case all of the rich seem to be contend with it. For the affluent it is like
giving crumbs away but keeping the cake intact. They can enjoy the power and luxuries that comes
with wealth here on earth and still go to heaven --- they can expect the best of
both worlds.
And Künzli concludes: Since perfect virtue is not possible on account of the
original fall from grace, the above interpretation serves the Church Fathers as
a perfect ideology to legitimize any existing social order. And in
our time, the Catholic church has even elevated wealth to sacredness or
holiness. The Catholic Bishops of America have declared:
In union with the Holy See, we hold that ‘our first and most fundamental
principle, when we undertake to alleviate the condition of the masses, must
be the inviolability of private property’. Statement, Crisis of Christianity, N. Y. Times, November18, 1941.
d. Thomas Jefferson (1743-1826) Author
of the Declaration of Independence,
3d President of the U.S.
I set out on this
ground, which I suppose to be self-evident, that the earth belongs in
usufruct* to the living: that the dead have neither powers nor rights
over it. The portion occupied by any individual ceases to be his when
himself ceases to be, and reverts to the society. If the society has
formed no rules for the appropriation of its lands in severality [held or
owned by separate and individual right], it will
be taken by the first occupants, and these will generally be the wife and
children of the decedent. If they have formed rules of appropriation,
those rules may give it to the wife and children, or to some one of them,
or to the legatee of the deceased. So they may give it to its creditor. But the child, the legatee or creditor, takes it, not by natural right,
but by a law of the society of which he is a member, and to which he is
subject. Then, no man can, by natural right, oblige the lands he
occupied, or the persons who succeed him in that occupation, to the
payment of debts contracted by him. For if he could, he might during his
own life, eat up the usufruct of the lands for several generations to
come; and then the lands would belong to the dead, and not to the living,
which is the reverse of our principle.
*Rom. Law, Civil Law, the right of using
and enjoying all the advantages and profits of the property of another
without altering or damaging the substance. Or the right of enjoying all the advantages derivable from the use of
something that belongs to another, as far as is compatible with the
substance of the thing not being destroyed or injured.
e. Leo Tolstoy (1828-1910)
On the Exploitation of Labor by Means of
Property
Formerly, other men’s labor was used simply by violence, by slavery, in
our time it is being done by means of property. In our time property is the
root of all evil and of the suffering of men who posses it, or are without
it, and of all the remorse of conscience of those who misuse it, and of the
danger of collision between those who have and those who have it not. . . .
property is the root of all evil; and now all the world is busy with the
distribution and protection of wealth.
f. J. P. Morgan
(1837-1913)
U.S. financier
On How
Dividing the People Allows Capitalism to Govern the World
Capital must protect itself in every way... Debts must be
collected and loans and mortgages foreclosed as soon as possible. When
through a process of law the common people have lost their homes, they
will be more tractable and more easily governed by the strong arm of the
law applied by the central power of leading financiers. People without
homes will not quarrel with their leaders. This is well known among our
principle men now engaged in forming an imperialism of capitalism to
govern the world. By dividing the people we can get them to expend their
energies in fighting over questions of no importance to us except as
teachers of the common herd.
g. George Bernard Shaw
(1856-1950)
On the Effective power
of Capitalism and Trust in Government
Capitalism has destroyed our belief in any effective power
but that of self interest backed by force.
You have to choose (as a voter) between trusting to the
natural stability of gold and the natural stability of the honesty and
intelligence of the members of the Government. And, with due respect for
these gentlemen, I advise you, as long as the Capitalist system lasts, to
vote for gold.
h. Smedley D.
Butler* (1881-1940)
Major General in the U.S. Marine Corps
On
Fighting for the Benefit of the Few
I wouldn't go to war again as I have done to protect
some lousy investment of the bankers. There are only two things we should
fight for. One is the defense of our homes and the other is the Bill of
Rights. War for any other reason is simply a racket.
War is just a racket. A racket is best described, I
believe, as something that is not what it seems to the majority of people.
Only a small inside group knows what it is about. It is conducted for the
benefit of the very few at the expense of the masses.
I believe in adequate defense at the coastline and
nothing else. If a nation comes over here to fight, then we'll fight. The
trouble with America is that when the dollar only earns 6 percent over
here, then it gets restless and goes overseas to get 100 percent. Then the
flag follows the dollar and the soldiers follow the flag.
*Butler was at the time of his death the most
decorated Marine in U.S. history.
i. Noam Chomsky
(born 1928)
U.S. linguist, educator, and political analyst
On Extending Democratic
Control to Include Capitalism
Personally, I'm in favor of democracy, which means that the
central institutions of society have to be under popular control. Now, under
capitalism, we can't have democracy by definition. Capitalism is a system in
which the central institutions of society are in principle under autocratic
control. Thus, a corporation or an industry is, if we were to think of it in
political terms, fascist; that is, it has tight control at the top and
strict obedience has to be established at every level--there's little
bargaining, a little give and take, but the line of authority is perfectly
straightforward. Just as I'm opposed to political fascism, I'm opposed to
economic fascism. I think that until the major institutions of society are
under the popular control of participants and communities, it's pointless to
talk about democracy.
J.
Property and Full Property Ownership Defined
property
[legal,
not necessarily a moral
definition] ".
. . that which belongs exclusively to one. In the strict legal sense, an
aggregate of rights which are guaranteed and protected by the government. [And
in the case of] Private property, as protected from being taken for public
uses, is such property as belongs absolutely to an individual, and of which he
has the exclusive right of disposition" (Black’s Law Dictionary, sixth
edition).
Full liberal, but not
necessarily moral ownership, defined and as often claimed by conservatives. What is usually attacked or defended
is A. M. A. Honorè’s well-known bundle of rights stated below with
some explanatory remarks by John Christman:
(1) the right to posses (the right of exclusive physical control
that the nature of the thing admits, coupled with a claim right to non-interference);
(2) the right to use (a claim-right to exclusive use of the thing
implying a general duty on the part of all others not to use the thing without the owner’s permission);
(3) the right to manage (a cluster of powers to contract with
others concerning control over various uses of the thing);
(4) the right to the income of the thing (the right to increased
benefit from the ownership, where this benefit is derived from others’ goods given in
trade; this right ranges over the increased income or material accrued
from a holding by virtue of the productive use of that holding, including, most centrally, trades);
(5) the right to the capital (the power to make valid disposition
of the thing owned as well as the power to transfer
title---this element can be separated into the rights of alienation, consumption, and modification);
(6) the right to security (an immunity against uncompensated
expropriation by the state);
(7,8) the rights or incidence of transmissibility and absence of term
(concern the "duration" of the owner’s interest in the thing owned; and where transmissibility refers to the determination of ownership after the death
of the present owner; while absence of term describes the temporally indeterminate interest during an owner’s lifetime);
(9)* the prohibition of harmful use (e.g., I may not use my
car to hit someone.)
(10)** liability to execution (e.g., property may be taken away for
debt)
(11) the incident of residuarity (a structural necessity of the
legal system that protects ownership, not an element of ownership itself)
*(9) is controversial, because harmful use of anything is prohibited
without reference to ownership; however, it makes clear that ownership does not
include the right for harmful use.
**(10) holds the owner liable for
injuries caused by his property even in the absence of intend, for
example, if a slate dislodges off the roof and injures someone.
K. Rights and Property Rights Defined
rights
[legal, not necessarily a moral definition]-- "In the abstract and moral sphere, rights are defined
generally as "powers of free action." And the primal rights pertaining to men
are enjoyed by human beings purely as such, being grounded in personality, and
existing antecedently to their recognition by positive law. However, a right as
a noun and taken in a concrete sense, designates power, privilege, faculty, or
demand, inherent in one person and incident upon another" (Black’s Law Dictionary, sixth edition).
Ten elements of a concrete right
to justify property rights adequately.
Lawrence C. Becker catalogs these elements in
the root idea of a concrete right for which one would need compelling reasons
in order that if there is a right, then there must be:
-
a right holder. If the right is to be of any value, there must be
those who respect the right---
-
right-regarders. Both need to be ascertained. It is also necessary to establish what
-
the
relation between right-holders and right-regarders in general is.
One needs to be clear about
-
what it is that the right-holder is ‘owed’. Furthermore, as a right
may not in all circumstances be binding or in force,
-
the conditions under which the right holds needs to be specified. One
also requires to know
-
what would involve the violation of the right. One would need to be
able to answer the question:
-
when is it excusable for the right to be violated? And any
inexcusable violation of the right requires the situation to be remedied. Not only
would one have to know or to things not spiritual
-
what the
appropriate remedies should be, one also has to know
-
what are
acceptable methods for exacting such remedies---and who it is
-
who can
justifiably exact them.
L. Indebtedness to
Arnold Künzli
Particularly for this chapter, this writer
owes much to the literature of Arnold Künzli (1919-2008). He was a Swiss
political scientist, philosopher and radical democrat who incorporated
deep psychological insights into his works. Künzli asserts that
the inalienable human rights as proclaimed by the French Revolution--liberty, equality, and
fraternity--have only been half implemented because the principles and
systems concerning property and the economy have not been included. Künzli
declared:
The demand for a democratic economy with economic human rights and citizen
rights is a cultural task for the world community.
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