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Have the Corporations Won? Have the Corporations Won?

04-22-2010 , 07:33 PM
Quote:
Ok, but when we take a look at history we see that this is fairytale talk. It is a truism that those in power will exercise that power to suit their own ends. It has always been that way.
Yes, but the ACist will reply that the source of the power lies in the State, and without them, the corporations will not have this enormous power. The discontent with status quo is the same.



Quote:
Originally Posted by ILOVEPOKER929
And besides the fact that "growth" is not something we should view as inherently good, we still have to ask the question "growth for whom?"

I mean lets take a look at the United States. For the vast majority, real wages haven't budged since the 1960s, people today are working a lot more hours than the 1960s, with a lot less benefits, and significantly less job security. During this same period business profits have grown handsomely along with CEO and other top management salaries. Is this the type of growth we should be happy about?
Well I don't think examining modern US history does much for this discussion - there is no one speaking on it's behalf.

but I'm reminded of something I read in some other thread about inequality.

Say John starts with 20 units, and Ted and Bill each start with 5.

A) 5 years later, John has 50 Units and Ted and Bill each have 8.
B) 5 years later, John has 15 units and Ted and Bill each have 6.

Obviously A is better, even though the inequality has increased, everyone is better off than they were. But it seems a lot of socialist ideals have a distinct preference for B here.

This is obviously a somewhat simple representation, but the idea is that wealth isn't a pie to be divvied out, and some people getting rich doesn't necessarily mean that it comes at the expense of others directly. I'm curious if you agree with this statement.
04-22-2010 , 07:39 PM
Quote:
Originally Posted by ILOVEPOKER929

It is not for me to decide what people want, and that's the whole point.

......


It's getting more and more difficult to take you seriously.
1st: I don't think he implied that. He was referring to the majority deciding what people want, which means (0,50)% of the population will have the will of others' forced on them.

2nd: Well try harder. It isn't a debate, and he's making plenty of effort to understand where your coming from and break down the points of disagreement, it's the furthest thing from someone parroting their views mindlessly.
04-22-2010 , 10:46 PM
Quote:
Originally Posted by ILOVEPOKER929
Chomsky makes several good points that completely agree with the ACist
-we dont know what people want as their utopia
-we dont have free market capitalism now and never have had it
-the royal canadian mounted police will pwn your ass (j/k)

and he talks a lot of good rhetoric, but the problem is determining what the root cause is the what the most effective methodology for implementing out ideas are.

Chomsky keeps talking about power structures, but is he really for getting rid of all power structures? He probably gets government funding for his work, he's pro union, etc. The whole reason why we are stuck with the power structures that we have is because everyone supports them for some particular reason and see the negative costs as a neccessary evil.

So conservatives get their warfare state while at the same time having to pay for socialized medicine, education, etc. Liberals get socialized everything but also have to pay for the warfare state. If we all just put down our ****ing guns mabet we could have a more just society. The problem is nobody really wants to. Its all a lot of propaganda and rhetoric to simply position yourself in a better position to point guns at people and steal their money.
04-22-2010 , 10:47 PM
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Originally Posted by Chomsky
Anarcho-capitalism, in my opinion, is a doctrinal system which, if ever implemented, would lead to forms of tyranny and oppression that have few counterparts in human history.
04-22-2010 , 10:51 PM
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Originally Posted by ILOVEPOKER929
In the Orwellian sense, sure. But it's not the type of democracy I'm talking about. I'm talking about a functioning democracy. I'm not talking about this type of democracy.


Right, right. No, wait. You don't get any ****ing "DO OVER"s.


Quote:
Originally Posted by pvn
FWIW this is EXACTLY the post I was hoping would come out of this thread.

Right. Where a "bad" regime is defined as "run by someone other than the guy I want running things and telling everyone else what to do."

If only we get the RIGHT overlords in place, well then everything will be bunnies and rainbows. If the other guys win, well, democracy is broken. Or the terrorists won.

If statists get to say "oh no, that's not the government we wanted, DO OVER" then ACists should get the same consideration. No more somalia cracks, unless you want to get saddled with kim jong il every time you bring it up.

If statists get to say oh, haw haw, ACist X says stupid thing XYZ, let's start a thread about how ACists all want XYZ, well, then you have to accept every stupid thing every other statist says. Turnabout is fair play. Quit crying, you baby.
04-23-2010 , 03:35 AM
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Originally Posted by BCPVP
This would lead to a poorer world with more suffering. If labor costs drive up the price of goods, demand will go down. Less demand means less employment for the workers. This in turn means they will have to try to scrape by on even worse jobs, subsistence farming or worse.
Higher wages for those in sweatshops do not necessarily have to drive up the price of goods. In your hypothetical you're assuming upper management wages are fixed, and you're also assuming the owners will attempt to pass this cost onto the consumer. Upper management could take pay cuts to compensate for other workers not being exploited as much or owners can eat the costs and accept lower profits.

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Originally Posted by BCPVP
You also mention that corporations "drive down wages". What evidence do you have for this? Because there is plenty of evidence to the contrary.
I think NAFTA is good evidence of this (Understanding Power, pg. 280-2):

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Man: You mentioned that people with power probably don't like it that the G.A.T.T. treaty got onto the internet. It just emphasized for me how these international trade agreements are being forced on us, and yet nobody even knows what they're about. I'm wondering what you think of that?

Chomsky: Well, plenty of people know what they're about--there are plenty of people working for big corporations who know what the G.A.T.T. treaty is about, for example. But you're right, the general population here doesn't have the slightest idea bout it--I mean, overwhelmingly the general population of the United States hasn't even heard of G.A.T.T., and certainly they don't know what its likely effects are going to be. [G.A.T.T. was first established in 1947, but the "Uruguay Round" of negotiations to modify it concluded in December 1993; the treaty then was signed in April 1994.]

What do I think of that? I think it's ridiculous--grotesque, in fact. Look, G.A.T.T. is something of major significance. The idea that it's going to be rammed through Congress on a fast track without public discussion just shows that anything resembling democracy in the United States has completely collapsed. So whatever one thinks about G.A.T.T., at least it should be a topic for the general public to become informed about, and to investigate, and to look at, and think about carefully. That much is easy.

If you ask what should happen in that public discussion--well, if that public discussion ever comes along, I'll be glad to say what I think. And what I think is in fact mixed. It's like N.A.F.T.A.: I don't know of anyone who was opposed to a North American trade agreement in principle--the question was, what kind? So before N.A.F.T.A. got passed [in 1993], mainstream groups like the Congressional Office of Technology Assessment--can't get more centrist than that--came out with very sharp and intelligent critiques of the Executive version of N.A.F.T.A., the one that finally went through. And they pointed out that in fact N.A.F.T.A. was designed to be an investor rights agreement, not a "free trade" agreement--and that it was going to drive the economies of each of the three participating countries [the U.S., Canada and Mexico] down towards a kind of low-wage, low-growth equilibrium; they didn't say it of course, but it'll also be a high-profit equilibrium. And they suggested very constructive alternatives.

Well, those sorts of constructive critiques never even entered the mainstream discussion about N.A.F.T.A. here: all you ever heard in the media was, "Crazy jingoists don't like Mexican workers."

The same was true of the American labor movement: its proposals were nothing like what was constantly being denounced in the press with virtually 100 percent uniformity. The Labor Advisory Committee, for example--which by law is required to give its opinion on these things, but was illegally cut out of the discussion--came out with quite a constructive report on N.A.F.T.A.: it wasn't against an agreement, it was against that agreement. In fact, the story of the Labor Advisory Committee report tells you a lot about the way that N.A.F.T.A. was passed in the U.S., a lot about American democracy.

Twenty years ago, Congress enacted a Trade Act requiring that before any trade-related legislation or treaty is passed, there has to be consultation with a "Labor Advisory Committee" they set up which is based in the unions, such as they are. That's by law: the Labor Advisory Committee has to give an analysis and a critique of any American trade-related issue, so obviously that would include N.A.F.T.A. Well, the Labor Advisory Committee has to give an analysis and a critique of any American trade-related issue, so obviously that would include N.A.F.T.A. Well, the labor Advisory Committee was informed by the Clinton White House that their report was due on September 9th; they were not given an inkling of what was in the treaty until September 8th--so obviously they couldn't even convene to meet. Then on top of that, there weren't even given the whole text of the treaty--it's this huge treaty, hundreds and hundreds of pages.

But somehow they did manage to write a response to it anyway, and it was a very angry response--both because of the utter contempt for democracy revealed by these maneuvers, but also because from the glimmerings of what they could get out of N.A.F.T.A. when they sort of flipped through it for a couple of hours, it was obvious that this thing was just going to have a devastating effect on American labor, and probably also a devastating effect on Mexican labor too, though of course it will be highly beneficial to American investors, and probably also to Mexican investors. It's also certain to have a highly destructive effect on the environment--because its laws supersede federal and state legislation. So obviously there are really major issues here, crucially important issues, which in a functioning democracy would have been the subject of intensive public consideration and debate.

Actually, if you looked closely, even N.A.F.T.A.'s advocates conceded that it was probably going to harm the majority of the populations of the three countries. For instance, its advocates in the United States were saying, "It's really good, it'll only harm semi-skilled workers"--footnote: 70 percent of the workforce. As a matter of fact, after N.A.F.T.A. was safely passed, the New York Times did their first analysis of its predicted effects in the New York region: it was a very upbeat article talking about how terrific it was going to be for corporate lawyers, and P.R. firms and so on. And then there was a footnote there as well. It said, well, everyone can't gain, there'll also be some losers: "women, blacks, Hispanics, and semi-skilled labor"--in other words, most of the people of New York. But you can't have everything. And those were the advocates.

In fact, it's kind of striking that about a day or two after N.A.F.T.A was passed, the Senate approved the most onerous crime bill in U.S. history [the Violent Crime Control and Law Enforcement Act], which the House then made even worse. Now, I don't know if that was just a symbolic coincidence or what--but it makes sense. I mean, N.A.F.T.A. was clearly going to have the effect of reducing wages for probably three-quarters of the American population, and it's going to make a lot more of the population superfluous from the point of view of profits--so the Crime Bill just will take care of a lot of them, by throwing them in jail.
Here's another way corporations drive down wages (383-4).

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Woman: Noam, facing an international power structure like the one you describe, which seems to be showing no signs of letting up as it extends its grip, clearly the response has to be organized and coordinated on a mass scale internationally. But given the size of the problems and just the scale of the task we're faced with, it seems nearly impossible to me, frankly. Even just building the kinds of unions we need to develop in the United States seems like a daunting prospect. Do you think it's really possible in today's world?

Chomsky: Reconstructing a democratic trade-union movement in the United States? Sure, I don't see why that's an impossible task, it's certainly something that's been done before. But you're right that it's not going to be simple.

For one thing, in the contemporary period something that's surely going to be required, which does make it a lot harder than before, is that a real labor movement simply has to be international today. I mean, in the old days, labor activists used to talk about "Internationals," but that was mostly a joke. Now the labor movement just has to be international--because there has to be something to prevent Daimler-Benz, for example, from destroying German work standards by shifting production over to Alabama, where wages are much lower, and the labor's not unionized, and legislative protections for workers are much weaker. Or take the original Free Trade Agreement with Canada [implemented in 1989]: in the first few years of that, Canada lost a couple hundred thousand manufacturing jobs to the Southeastern United States for the same reasons.

In fact, it's gotten to the point where some major corporations don't even worry about strikes anymore, they see them as an opportunity to destroy unions. For instance, the Caterpillar corporation recently broke an eighteen-month strike in Decatur, Illinois [from June 1994 to December 1995], and part of the way they did it was by developing excess production capacity in foreign countries. See, major corporations have a ton of capital now, and one of the things they've been able to do with it is to build up extra overseas production capacity. So Caterpillar has been building plants in Brazil--where they get far cheaper labor than in the United States--and then they can use that production capability to fill their international orders in the event of a strike in the U.S. So they didn't really mind the strike in Decatur, because it gave them an opportunity to finally break the union through this international strategy. That's something that's relatively new, and given this increasing centralization of power in the international economy, and the ability of big transnational corporations to play one national workforce against another to drive down work standards everywhere, there just has to be international solidarity today if there's going to be any hope--and that means real international solidarity.
04-23-2010 , 03:53 AM
fight the good fight ilovepoker.

I'm pretty high, and not very smart to begin with, especially when compared to a lot of the posters here. However to me it seems pretty obvious that The USA and the rest of the world probably couldn't be switched to AC because the people in power wouldn't allow it. Ilovepoker's ideas are even more radical. The system as it is, mind bogglingly complex and ineffecient as it is, pretty much evolved that way to protect the powerful and their "power" (property rights and capital, the means of subsistence essentially).

In my mind, there is another level, and this one is especially tough to convince anyone to agree with. Humans, on a whole are incredibly dumb and ineffecient on average. They believe in silly superstitions, make spending and life decisions that are terrible, and etc. I am definitely included in this lumping.

So to me, it's a tough sale that because the market will finally be "free" that suddenly everyone will begin making the optimal plays because the government had been holding them back. I don't agree. If anything the government is the only thing keeping Johnathan Q Consumer from getting sheared, slaughtered, and hung in the smokehouse.

Because of the inequities, both genetic and enviromental in humans, their will always be a power system in place: Intelligence. And the smart will always have the dumb with a foot on their neck. And in the system we have now, at least Smart people can apply themselves to their fullest potential, and at least the dumb people for the most part can get work if they try, and have a pleasant life free of some of the horrible suffering that can happen in life.

I don't know if this makes any sense, trying to vocalize concepts can be hard, but basically i think without any oversight a large segment of the population would always be subject to far to much exploitation than they are with oversight.
04-23-2010 , 03:58 AM
And TBH I think a lot of it has to do with resentment. I remember when i was a younger and a strident right wing capitalist type feeling nothing but loathing and revulsion for those who couldn't pull their own weight etc.

Having been a life long atheist I hold life to be especially precious, because i don't believe anything happens when somebody dies, besides they rot and etc. So why not try to help people as much as possible. And i understand how ilovepoker feels, I often feel like i could be doing more to help those less fortunate, and am disgusted at my own excess and laziness. often.
04-23-2010 , 04:15 AM
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Originally Posted by JDalla
Yes, but the ACist will reply that the source of the power lies in the State, and without them, the corporations will not have this enormous power.
This is a very naive conception. I mean first of all, it doesn't really matter what you call it: States, kingdoms, corporations, etc. They are all power structures looking out for their own interests. Taking the state away does not weaken corporate power one bit. In fact, it'll likely have the opposite affect. See as bad as states are, they have one thing going for them. In a small but significant way they are still accountable to the public, which means through popular struggle people can get laws passed, and in this way they can use the state to check corporate power. Think about the human rights laws that people have fought for and won over the years: Overtime pay, child labor laws, laws which gave them right to organize (Wagner Act). These are examples of the people getting the state to check corporate power. Now take the state away from the equation, and you can imagine whats gonna happen, or if you can't imagine it, go to some random third world country where human rights laws like these don't exist.

I think this quote is apropos:

Quote:
Originally Posted by Noam Chomsky
Alright, it's not a very big secret who owns the country: you look at the "Fortune 500" every year and you figure out pretty well who owns the country. The country is basically owned by a network of conglomerates that control production and investment and banking and so on, and are tightly inter-linked and very highly concentrated--They own the country. And the principle of American democracy is that they also ought to govern it. And to a very large extent, they do. Now, whenever you have a concentration of power like that, you can be certain that the people who have the power are going to try to maximize it--and they're going to maximize it as the expense of others, both in their own country and abroad.
Quote:
Originally Posted by JDalla
Well I don't think examining modern US history does much for this discussion - there is no one speaking on it's behalf.
I was simply using that example to illustrate a truism. Growth in the economy or growth in profits is not inherently good.

Quote:
Originally Posted by JDalla
but I'm reminded of something I read in some other thread about inequality.

Say John starts with 20 units, and Ted and Bill each start with 5.

A) 5 years later, John has 50 Units and Ted and Bill each have 8.
B) 5 years later, John has 15 units and Ted and Bill each have 6.

Obviously A is better, even though the inequality has increased, everyone is better off than they were. But it seems a lot of socialist ideals have a distinct preference for B here.
I don't know if that's true, but I think it is true that in a socialist society, profits are not assumed to be inherently good.

Quote:
Originally Posted by JDalla
This is obviously a somewhat simple representation, but the idea is that wealth isn't a pie to be divvied out, and some people getting rich doesn't necessarily mean that it comes at the expense of others directly. I'm curious if you agree with this statement.
I mean sure that can be true and has been true with some people, but it doesn't change the fact that large concentrations of capital generally cannot happen if we wish to have a functional democracy.
04-23-2010 , 04:22 AM
A functioning democracy hasn't had a chance yet, maybe it never will, but I think it's something worth fighting for.
04-23-2010 , 04:33 AM
Quote:
Originally Posted by Jules22
And TBH I think a lot of it has to do with resentment. I remember when i was a younger and a strident right wing capitalist type feeling nothing but loathing and revulsion for those who couldn't pull their own weight etc.
I'm glad you changed your ways. There's been a lot of propaganda to encourage that type of feeling. A lot of people never see through it.

Quote:
Originally Posted by Jules22
Having been a life long atheist I hold life to be especially precious, because i don't believe anything happens when somebody dies, besides they rot and etc. So why not try to help people as much as possible. And i understand how ilovepoker feels, I often feel like i could be doing more to help those less fortunate, and am disgusted at my own excess and laziness. often.
That is exactly how i view life. Although it's still a struggle to get my actions to match my thoughts, but I'm working on it.
04-23-2010 , 04:48 AM
Quote:
Originally Posted by ILOVEPOKER929
This is a very naive conception. I mean first of all, it doesn't really matter what you call it: States, kingdoms, corporations, etc. They are all power structures looking out for their own interests.
It is not a naive conception, because not all power structures are created equal.

Quote:
Taking the state away does not weaken corporate power one bit. In fact, it'll likely have the opposite affect. See as bad as states are, they have one thing going for them. In a small but significant way they are still accountable to the public, which means through popular struggle people can get laws passed, and in this way they can use the state to check corporate power.
You realize corporations are accountable to the public in the same manner as well, don't you? This is a point that Chomsky seems to conveniently ignore often. It is probably because the guy is pretty terrible at economics in general. This isn't surprising because the guy is basically a syndicalist.

A corporation's power only exists as long as it can turn a profit. If it starts doing things that result in popular struggles against them (ie doing **** people don't like), they are unsustainable. In fact, "voting with your pocketbook" is probably much more effective than voting with your ballot.

Quote:
I mean sure that can be true and has been true with some people, but it doesn't change the fact that large concentrations of capital generally cannot happen if we wish to have a functional democracy.
And what do you believe leads to these "large concentrations of capital" to begin with?
04-23-2010 , 04:51 AM
Quote:
Originally Posted by ILOVEPOKER929
A functioning democracy hasn't had a chance yet, maybe it never will, but I think it's something worth fighting for.
And what is a "functioning democracy" iyo?
04-23-2010 , 05:10 AM
Quote:
Originally Posted by ILOVEPOKER929
This is a very naive conception. I mean first of all, it doesn't really matter what you call it: States, kingdoms, corporations, etc. They are all power structures looking out for their own interests. Taking the state away does not weaken corporate power one bit. In fact, it'll likely have the opposite affect. See as bad as states are, they have one thing going for them. In a small but significant way they are still accountable to the public, which means through popular struggle people can get laws passed, and in this way they can use the state to check corporate power.
ILP, it seems you (and what you've posted from Noam) are failing to address this point, which i think might be key:

Quote:
Originally Posted by Montius
It is not a naive conception, because not all power structures are created equal.


You realize corporations are accountable to the public in the same manner as well, don't you? This is a point that Chomsky seems to conveniently ignore often. It is probably because the guy is pretty terrible at economics in general. This isn't surprising because the guy is basically a syndicalist.

A corporation's power only exists as long as it can turn a profit. If it starts doing things that result in popular struggles against them (ie doing **** people don't like), they are unsustainable. In fact, "voting with your pocketbook" is probably much more effective than voting with your ballot.
Power structures that use (and are "allowed to use) force obviously have a huge advantage over other power structures.
04-23-2010 , 05:19 AM
Also to add: a corporation cannot really exist as such without a state, so talking about a corporation's power or power structure in absence of a state is a bit absurd to begin with.
04-23-2010 , 08:18 AM
Quote:
Originally Posted by Montius
And what is a "functioning democracy" iyo?
one where the voters all agree with his personal subjective preferences. Or, at least, where 51% of them do.
04-23-2010 , 08:20 AM
I mean, seriously. This "functioning" democracy stuff is just, to use the parlance of our times, dorm room bull****. You might as well be wishing for rainbow-****ting unicorns.
04-23-2010 , 09:00 AM
Quote:
Originally Posted by Montius
Also to add: a corporation cannot really exist as such without a state, so talking about a corporation's power or power structure in absence of a state is a bit absurd to begin with.
This isn't quite correct. What advantages do corporations receive from the state that couldn't be recreated by contract?

Quote:
Originally Posted by pvn
one where the voters all agree with his personal subjective preferences. Or, at least, where 51% of them do.
To be fair, I don't think this is actually his view. As far as I can tell, he's comfortable with the majority getting what they want even it's contrary to what he wants. Call it a meta-preference.
04-23-2010 , 09:08 AM
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Originally Posted by DrModern
This isn't quite correct. What advantages do corporations receive from the state that couldn't be recreated by contract?
The distinctive governmental feature of legal personhood, and the accompanying privilege of limited liability.

I suppose one could claim that a private business could set up a contract with any and all of its interactions under the premise that it be treated as a single person, but that is certainly different than what we have now.
04-23-2010 , 09:08 AM
Quote:
Originally Posted by ILOVEPOKER929
This is a very naive conception. I mean first of all, it doesn't really matter what you call it: States, kingdoms, corporations, etc.

I mean sure that can be true and has been true with some people, but it doesn't change the fact that large concentrations of capital generally cannot happen if we wish to have a functional democracy.
The difference between a state and a corporation is that the cost of maintaining its power structure is much cheaper for the state because millions of people have a belief in the state that leads them to put up with more nonsense. When an entity, state or corporation, actually has to pay for the full cost of the enforcement of its power structure that power structure can only be weakened. Theres a reason the corporation turn to government to get all this special treatment, its so they can externalize all of the costs of enforcement onto us. And the reason this is allowed to happen is because we let it happen through our belief in the enforcing intermediary called the government.

Quote:
Originally Posted by ILOVEPOKER929
A functioning democracy hasn't had a chance yet, maybe it never will, but I think it's something worth fighting for.
That the thing, what type of democracy? Representative democracy, in amny respects, isnt very democratic. Its more like a free market dictatorship. What we need is some sort of direct democracy where things cant get voted in unless we vote for them. Appealing to some vague ideas of democracy and blindly working within the current system falls right into the trap those in power have laid.
04-23-2010 , 09:11 AM
The ultimate expression of democracy is in a free market. This means a free market in goods, services, and government.

What is touted as "true democracy" or "direct democracy" is often nothing more than mob rule.
04-23-2010 , 09:18 AM
Quote:
Originally Posted by Montius
The distinctive governmental feature of legal personhood, and the accompanying privilege of limited liability.

I suppose one could claim that a private business could set up a contract with any and all of its interactions under the premise that it be treated as a single person, but that is certainly different than what we have now.
The state isn't required in order to mimic the legally relevant features of corporate personhood by contract; contracts by their very nature are capable of creating custom-tailored obligations, such as a liability limit for one party or other advantages of corporate form. If it is inefficient for people to have to create a large number of individual contracts, an off-the-rack set of obligations could easily duplicate the market for corporate charters currently filled by the state.

Last edited by DrModern; 04-23-2010 at 09:39 AM.
04-23-2010 , 09:25 AM
Quote:
Originally Posted by DrModern
The state isn't required in order to mimic the legally relevant features of corporate personhood by contract; contracts by their very nature are capable of creating custom-tailored obligations, such as a liability limit for one party or other advantages of corporate form. If it is inefficient for people to have to create a large number of individual contracts, a off-the-rack set of obligations could easily duplicate the market for corporate charters currently filled by the state.
Ok, but you would also have to have all legal firms recognize such a claim of contractual personhood as opposed to having a monopolistic legal order confer that privilege carte blanche. This fact alone changes the structural nature of the game.

A privilege, btw, that surrenders individual responsibility, and confers the benefits of ownership without its corresponding costs. This is what currently allows corporations to concentrate power and externalize risks in such a manner. It is in this manner that the state subsidizes corporate power greatly.
04-23-2010 , 11:45 AM
Quote:
Originally Posted by ILOVEPOKER929
Higher wages for those in sweatshops do not necessarily have to drive up the price of goods. In your hypothetical you're assuming upper management wages are fixed, and you're also assuming the owners will attempt to pass this cost onto the consumer. Upper management could take pay cuts to compensate for other workers not being exploited as much or owners can eat the costs and accept lower profits.
If your ideal world relies on everyone acting against their self interest to make themselves poorer, that's going to be an impossible sell.

A more likely scenario is that the company would look to mechanize the process if labor costs increase too much.

You also don't consider how the wages of the sweatshop employee relate to their marginal productivity. No one would pay more for labor than what that labor adds in value. One of the reasons that people in poorer countries often have such low wages relative to the U.S. is that the labor isn't as productive as it is here. This is why you hear in economics that wages tend towards the marginal productivity of labor.

Quote:
I think NAFTA is good evidence of this (Understanding Power, pg. 280-2):

Here's another way corporations drive down wages (383-4).
First, I think you would do well to not rely solely on Chomsky. When someone asks "what's your evidence for claim X?" and you respond with "Well, Chomksy says X" you're just attempting to appeal to authority, which is problematic, given that Chomsky isn't an authority on economics.

Second, in response to the second quote, I don't see how wages are being driven down. When a German company brings their manufacturing to Alabama, wages for those in Alabama likely rise. Here is a study of apparel sweatshops that shows the wages received by the sweatshop workers is often several times higher than the prevailing wage.
04-23-2010 , 11:57 AM
http://www.businessweek.com/magazine...3/b3977049.htm

So where's the part where wages have been going down again? Also, bleeding hearts fairly regularly make the mistake of not adjusting for purchasing power, so I'd question any stats you have seen declaring stagnant/exploitative real wages to make sure this calc has been done. $1/hr buys a lot more in Ethiopia than it does in the United States.

      
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