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Posts tagged Gary Chartier

These are the funniest five words you will read all day.

Blackwater Ethics Chief John Ashcroft

It’s funny because it’s true. (Via Gary Chartier.)

See also:

Bits & Pieces on Free Market Anti-Capitalism: Is this all just a semantic debate?

I’d like to close my remarks with some considerations about why we need to even have this discussion. When a libertarian like Gary or Sheldon comes out for free markets, but against capitalism, he’s often met with the charge that he’s just playing with words, or trying to change the vocabulary of our [sic] message in a misguided ploy to appeal to people who do not share our [sic] economic views.[1] There is not much to say to that, except to point out that the use of capitalism really is more complicated than that. There are several meanings attached to the word, which have coexisted historically. Those meanings are often conflated and confused with each other, and capitalism1, the peculiar technical use of the term by pro-capitalist libertarians to refer strictly to free markets — free markets in the very broadest sense, markets as spaces of unbounded social experimentation) is only one of these among many, neither the original use nor the use that’s most commonly used today. Free market anti-capitalists aren’t trying to change anything; we’re using the word capitalism in a perfectly traditional and reasonable sense, straight out of ordinary language, when we use it to describe the political privileges we’re against (capitalism2) and the nasty structural consequences of those privileges (capitalism3).

But the worry at this point may be whether it’s even worth it to fight over that particular patch of ground. To be sure, equivocal uses and conflation of terms is a bad thing — it’s important to distinguish the different meanings of capitalism, to be clear on what we mean, and to get clear what our interlocutors mean, when we use the term. But once you’ve done the distinguishing, is it worth spending any great effort on arguing about the label capitalism, rather than just breaking out the subscripts where necessary and moving on? If the argument about capitalism has helped draw out some of the economic and historical points that I’ve been concentrating on in these remarks, then that may be of some genuine use to libertarian dialogue. But once those points are drawn out, aren’t they the important thing, not the terminological dispute? And aren’t they something that nominally pro-capitalist libertarians would also immediately object to, if asked? All libertarians, even nominally pro-capitalist libertarians, oppose corporate welfare, government monopolies, regulatory cartels, and markets rigged in favor of big business. So why worry so much about the terminology?[2]

I certainly sympathize with the impulse — I’m an Analytic philosopher by training, and subscripting is one of the favorite tools of my trade; if I have to choose between debates about the word capitalism and debates over the state-corporatist interventions I’ve been discussing, I think the latter is always going to be a lot more important. Further, when we are trying to understand what other people have said about markets or capitalism, it’s important to remember that considerations of charity absolutely call for this kind of approach — when a libertarian writer praises capitalism meaning freed markets, or when a libertarian writer condemns capitalism, meaning capitalism2 or capitalism3, the best thing to do is just take them on their own terms and interpret their argument accordingly.

But there’s a lot to argue about here that’s not just about labels, and it’s not always clear that that’s something that we all readily agree on. What about when it’s not clear that the writer has really consistently held onto the distinction between free markets and actually-existing capitalism?[3] What about when we’re not just talking about single positions on isolated policy proposals, but talking about the bigger picture of how it all works — not just the individual pieces but the gestalt picture that they form when fitted together? When, that is, it really starts to matter not only how a writer would answer a list of questions if asked, but also which questions she thinks to ask in the first place — which features of the situation immediately come to mind for analysis and criticism, and which features are kept as background or afterthoughts?

To put a finer point on it, let’s consider not only how we should understand others’ word choices (which calls for interpretive charity, in part, because it’s not up to us), but also how we ourselves should choose words to describe our own position (which certainly is). Rhetoric is a complicated art, and intimately related to the context of the particular conversation you’re having. I haven’t had space in my remarks to survey all the considerations, or even most of the important ones, about the rhetorical question of which meaning of capitalism to favor, or whether simply to abandon the term. But before I leave off, I do want to touch briefly on one consideration — the question of paradigm cases, of what sorts of examples we take as typical, or characteristic, or especially illustrative of what free markets are and how they work.[4] When we’re looking at the broader picture, at how political and economic structures play off of each other, we’re talking about a structure that has a foreground and a background — more important and less important features. And one of the important questions is not just what may be encompassed by the verbal definitions given for our terminology, but also what sorts of paradigm cases for markets and voluntary society the terminology might suggest, and whether the paradigm cases that it suggests really are good paradigm cases — whether they reveal something important about free societies, or whether they conceal or obscure it. I would argue that identifying a free market position with capitalism — even if you are absolutely clear that you mean capitalism1, that this encompasses all kinds of market exchange and all kinds of voluntary social experimentation outside the cash nexus — offers a particular picture of what’s important about and characteristic of a free society, and that this picture tends to obscure a lot more than it reveals.

This is where the question of labels and terms move beyond mere semantics, and has some real cognitive import. The question is how we picture freed-market activity — whether our model is something that looks a lot like business as usual, with a few changes here and there around the edges, or whether our model is something radically different, or radically beyond anything that currently prevails in this rigidified, monopolized market. Do we conceive of and explain markets on the model of a commercial strip mall: sanitized, centralized, regimented, officious, and dominated by a few powerful proprietors and their short list of favored partners, to whom everyone else relates as either an employee or a consumer? Or do we instead look at the revolutionary potential of truly free markets to make things messy — how markets, without the pervasive control of state licensure requirements, regulation, inspections, paperwork, taxes, fees, and the rest, so often look more like traditional image of a bazaar: decentralized, diverse, informal, flexible, pervaded by haggling, and kept together by the spontaneous order of countless small-time independent operators, who quickly and easily shift between the roles of customer, merchant, contract laborer, and more?[5] When we choose a term that is historically so closely attached to workplace hierarchy and big business, and a term which linguistically connected with the business of professional capitalists (that is, people in the business of renting out accumulated capital), this naturally influences the kind of examples that come to mind, fetishizing the business of professionalized capitalists at the expense of more informal and simply non-commercial forms of ownership, experimentation and exchange. It tends to rig the understanding of markets towards an exclusive focus on the cash nexus; and it tends to rig the understanding of the cash nexus towards an exclusive focus on the most comfortably capitalistic — hierarchical, centralized, formalized and businesslike — sorts of enterprises, as if these were so many features of the natural landscape in a market, rather than the visible results of concerted government force.

Freeing the freed market from the banner of capitalism, on the other hand, and identifying markets with the opposition to mercantile privilege, the expropriation of labor, and the resulting concentrations of wealth in the hands of a select class, brings a whole new set of considerations and examples into the foreground. These new paradigm cases for free markets are deply important if they encourage a wider and richer conception of what’s in a market, a conception which doesn’t just theoretically include mutualistic alternatives and social experimentation outside the cash nexus (as some sort of bare possibility or marginal phenomenon), but actually encourages us to see how these forms of free association and exchange might take on a prominent, even explosive role in an economy freed from the rigged markets and many monopolies of state-supported corporate capitalism. The free market anti-capitalist holds that it’s precisely because of those rigged markets that we have the strip mall rather than the bazaar, and precisely because we have the strip mall rather than the bazaar that so many working-class folks find themselves on the skids, confined to ghettoes, caught in precarious situations, and dependent on a highly rigidified capitalists’ market.

Since this cruel predicament is so central to how most people experience the market in everyday life, it’s vital that advocates of free markets take a position that clearly reveals, and marks out as important, different, positive, disruptive possibilities for the kind of free society that we advocate. If we choose terminology that highlights this reality rather than obscuring it, which makes it clear that the problem is not the fact of market exchange but rather the deformation of market exchange by political privilege to actually existing capitalists, at the expense of dispossessed workers, and which suggests paradigms that revolutionary transformations that freed markets without those privileges, we’ll have chosen well.

That’s the end of my remarks; I’ve already said more in these than I was actually able to say in person at APEE (since I stuck to the major points I covered in the talk, but included footnotes and asides that were in the text but had to be clipped from the talk itself). But there is a lot more to say on all these topics, and on several others that I had been thinking and writing about in the lead-up to the talk, but which didn’t get aired in the presentation. I hope to build on what I have said here,and come around to a number of these points, and to and on some of the questions and conversations that these Bits & Pieces have helped draw out. Until then…

  1. [1]Jackson Reeves, quoted by Walter Block in Capitalism Yesterday, Capitalism Today, Capitalism Tomorrow, Capitalism Forever.
  2. [2]I’d be more happy with this suggestion if it actually seemed to be going both ways — that is, if the people calling for us to move away from mere semantics actually were willing to split the difference and let each side have their terminology, as long as they are clear about it. What actually tends to happen, though, is that nominally pro-capitalist libertarians often use complaints about semantics to insist that readers understand what they mean by capitalism (capitalism1), but then turn around and start bickering as soon as some nominally anti-capitalist writer uses capitalism as a term of criticism, rather than actively trying to figure out whether they might be criticizing capitalism2 or capitalism3, or showing any willingness themselves to subscript and move on when it’s a question of appreciating what nominal anti-capitalists might be saying with the terminology that they are accustomed to use. Without that willingness, the complaints about semantic arguments look more opportunistic than principled, and that suggests that there may be something more at stake here than the complainants would like to let on.
  3. [3]For examples, see the critical discussion in Roderick Long (2008-11-10) Corporations Versus the Market, Kevin Carson, Vulgar Libertarianism Watch, Part 1 et seq., GT 2005-03-23: El pueblo unido jamás será vencido! etc.
  4. [4]In grammar, a paradigm (from the Greek, to show beside) is an illustration of a grammatical rule by using an example — e.g. when a student learning Spanish is taught how to conjugate -ar verbs by giving her the a series of parallel examples (hablar: hablo, hablas, habla, hablamos, habláis, hablan; tomar: tomo, tomas, toma, tomamos, tomáis, toman, etc.); the purpose of the examples is to illustrate the principle so that the student can apply it by analogy with other stems.
  5. [5]The images of the strip mall and the bazaar are taken from my concluding paragraph in Scratching By: How Government Creates Poverty as We Know It. Those images were inspired by and modified from Eric Raymond’s use of The Cathedral and the Bazaar to explain and defend hacker culture and open-source software.

Bits & Pieces on Free Market Anti-Capitalism: two meanings of “markets”

In order to get clear on the topic in a conversation about Free Market Anti-Capitalism, the obvious points where clarification may be needed are going to be the meaning of capitalism, the meaning of markets, and the meaning of freedom in the market context. We left-libertarians have spent a lot of time, and raised a lot of controversy talking about the first topic — whether capitalism is really a good name for the sort of thing that we want, the importance of distinguishing markets from actually-existing capitalism, and the possibility of disentangling multiple senses of capitalism.[1] There’s been a lot of argument about that, but here I’m happy to just defer to what my fellow panelists and other left-libertarians have already said. What I’d like to focus on is the less frequently discussed side of our distinction — not the meaning of capitalism, but the different strands of meaning within the term market. As absolutely central as this idea is to libertarian economics, I would argue that there are at least two importantly distinct senses in which the term is used:

  1. Markets as free exchange — when libertarians talk about markets, or especially about the market, we often mean to pick out the sum of all voluntary exchanges — any economic order based, to the extent that it is based, on respect for individual property, consensual exchange, freedom of association, and the freedom to engage in entrepreneurial discovery.

  2. Markets as the cash nexus — but we often also use the term in a different sense — to refer to a particular form of acquiring and exchanging property — that is, to refer to commerce and quid pro quo exchanges, typically mediated by currency or by financial instruments denominated in units of currency.

Of course, one of the central points of libertarian economics is that these two senses are interrelated: when they takes place within the context of a system of free exchange, social relationships based on the cash nexus – producing, buying, and selling at market prices, saving money for future use, investing money in productive enterprises, and the like are positive, even essential features of a flourishing society.

But while linked, they are conceptually distinguishable, and it’s important to see, first, that markets in the first sense (the sum of all voluntary exchanges) include the cash nexus – but also much more than the cash nexus. Family sharing is part of a free market; charity is part of a free market; gifts are part of a free market; informal exchange and barter are part of a free market. Wage labor (renting labor in return for cash), rent, corporate jobs, corporate insurance and the like can be part of a free market, but so are alternative arrangements – including many arrangements that clearly have nothing to do with capitalism3, and fit awkwardly, at best, with any conventional usage of the term capitalism: worker co-ops and consumer co-ops are part of the market; grassroots mutual aid associations and community free clinics are part of the market; so are voluntary labor unions (based on free association and the right to protest or quit), consensual communes, narrower or broader experiments with gift economies, and other alternatives to the prevailing corporate-capitalist status quo. To focus on the specific act of exchange may even be a bit misleading; it might be more suggestive, and less misleading, to describe a fully free market, in this sense, as the space of maximal consensually-sustained social experimentation.

The question, then, is whether, when people are free to experiment with any and every peaceful means of making a living, the sort of mutualistic alternatives that I’ve mentioned might take on an increased role in the economy, or whether the prevailing capitalistic forms would continue to predominate as they currently do. To be sure, the capitalistic arrangements predominate now – but that, of course, is no reason to conclude that the market has spoken. It would be enough if the predominance of capitalistic arrangements were the product of revealed preferences in a free market; but since we don’t have at present have a free market, it will, at the very least, take some further investigation – in order to determine whether those capitalistic alternatives prevail in spite of the unfreedom of actually-existing markets, or if they prevail, in part, because of that unfreedom.

Which brings us to the market as cash nexus. It is important here to see not only that the cash nexus doesn’t exhaust the forms of voluntary exchange and economic experimentation that might emerge within a freed market, but also that a cash nexus may exist, and may be expansive and important to economic life, whether or not it operates under conditions of individual freedom. Markets in our first, voluntary-exchange sense exist only where people really are free to produce and exchange – free market, in the voluntary-exchange sense of market, is really a tautology. But a market in the cash-nexus sense may be either free or unfree; cash exchanges are still cash exchanges, whether they are regulated, restricted, subsidized, taxed, mandated, or otherwise constrained by government action.

When free marketeers turn from the formal discussion of voluntary exchange, toward a substantive discussion of actually-existing economic relationships and financial arrangements, our analysis has to discuss more than just limitations on market activity. We often speak of market exchange and government allocation as cleanly separate spheres, as if they were two balloons, set one next to the other, in a closed box, so that when you blow one of them up, the other has to shrink to the same extent. That’s true enough about markets as social experimentation, but the relationship between cash-nexus exchange and government allocation is really more like two plants growing next to each other. When one gets bigger, it may overshadow the other, and stunt its growth. But they also climb each other, shape each other, and each may even cause some parts of the other plant to grow far more than if they had not had the support.

Any discussion of the cash nexus in the real world, then, needs to take account not only of the ways in which government limits or prohibits market activity, but also the ways in which government, rather than erasing markets, creates new rigged markets – points of exchange, cash nexuses which would be smaller, or less important, or radically different in character, or simply would not exist at all, but for the intervention of the state.

Thus, the social and economic value of the cash nexus, as a social relationship, depends entirely on the context. Kinds of interaction that are positive and productive in the context of free exchange easily become instruments of alienation and exploitation when they are forced on unwilling participants, in areas of their life where they don’t need or want them, through coercive government. The growth of markets as spaces for social experimentation is always a liberating development — but these social experiments may be mediated by the cash-nexus, or may be mediated by entirely different social relationships. The growth of markets as cash-nexus exchanges, on the other hand, may be liberating or violating, depending on whether those relationships come about through the free interplay of social forces, or through the direct or indirect ripple-effects of government force and the coercive creation of rigged markets.

I’ll be turning to the analysis of that context, and the way that free market anticapitalists apply it to the real-world business-as-usual, in the next instalment.

  1. [1]For examples, see my Anarquistas por La Causa and What’s in a name?, Roderick Long 2006-04-08 and 2008-06-27, Steve Horwitz 2009-12-31 and 2010-01-07, Gary Chartier 2010-01-19, Kevin Carson 2010-03-06, Sheldon Richman 2010-03-02 and 2010-04-16, etc.

Bits & Pieces on Free Market Anti-Capitalism: With apologies to Shulamith Firestone

Fellow Workers:

In my allotted time, I hope to drill down a bit, and to say something about the structural features, and some of the mechanisms of what we might call state capitalism — of how, in this actually existing economy, the political structure of capitalism2 (to use Gary Chartier’s threefold distinction) tend to produce and sustain the material conditions of capitalism3 — how state corporatism promotes the bosses’ economy. Most of my remarks will be broadly historical and economic in character — although necessarily of a sketchy or programmatic sort, given the constraints of time and format. So consider this an outline of directions for inquiry and discussion; an attempt to show you briefly where key landmarks of the free market anti-capitalist analysis are at, rather than an attempt at a full guided tour. I think it important to at least sketch out the map because the chief obstacle that free market anti-capitalists confront in explaining our position is not so much a matter of correcting particular mistakes in political principles, or economic analysis (although there are particular mistakes we hope to address and correct). It is more a matter of convincing our conversation partners to make a sort of aspect-shift, to adopt a new point of view from which to see the political-economic gestalt.

The need for this shift is pressing because (with apologies to the feminist theorist Shulamith Firestone)[1] the political economy of state capitalism is so deep as to be invisible. Or it may appear to be a superficial set of interventions, a problem that can be solved by a few legal reforms, or perhaps the elimination of bail-outs and the occasional export subsidy, while preserving more or less intact the basic recognizable patterns of capitalistic business as usual. The free market anti-capitalist holds there is something deeper, and more pervasive, at stake than the sort of surface level policy debates to which pro-capitalist libertarians too often limit their discussions. A fully freed market means the liberation of vital command posts in the economy, reclaiming them from points of state control to nexuses of market and social entrepreneurship — transformations from which a market would emerge that would look profoundly different from anything we have now. That so profound a change cannot easily fit into traditional categories of thought, e.g. libertarian or left-wing, laissez-faire or socialist, entrepreneurial or anti-capitalist, is not because these categories do not apply but because they are not big enough: radically free markets burst through them. If there were another word more all-embracing than revolutionary, we would use it.

  1. [1]See the opening paragraph of Chapter 1 of Firestone’s The Dialectic of Sex.

Bits & Pieces on Free Market Anti-Capitalism: by way of introduction, or apology

It’s been a while since the APEE panel on Free Market Anti-Capitalism. I said, a few Sundays ago, that I’d have more to say, soon. I’ve been meaning to publish my remarks, but it’s taken me a while to think about how I want to present them. I have a prepared text that I used for most of the talk (with the usual ad-libbing and skipping), and then a minimal set of notes that I used to speak off the cuff at the end of the talk. But the more I thought about it, the less I wanted to post the whole text as a long blob of text on the general topic of Free Market Anti-Capitalism. I’m happy with how the talk turned out — but talks are one thing, and blogs are another. There’s something to be said for the long essay (at least, given my own output, I sure hope that there is), but there’s already a number of long essays and lectures on left-libertarian economics and free-market anti-capitalism that are already out there. And looking back over my talk, as a general thing, what I was aiming to do was to anchor on the (really excellent) overviews of the salient issues which were provided by Steve, Gary, and Sheldon in their (excellent) earlier talks, and then drill down a bit — to get into some specifics about the mechanisms of political economy that free market anti-capitalists want to call attention to when they say that they are against actually-existing capitalism, and also to get into some moderate meta-discussion about why we feel the need to take the approach we do, and what the important upshot of a seemingly semantic point (like whether to use the letters c-a-p-i-t-a-l-i-s-m to identify what you’re for, or what you’re against) might really be. The points that I made along these lines were structured in such a way that, while a lecture is all of a piece, the material easily divides into a series of smaller, interrelated, but distinct remarks on a series of smaller, interrelated, but distinct questions. Smaller questions which might help separate out issues in the telling; smaller questions which might be a bit more digestible for reading and a bit more useful for referencing in future discussions; and, perhaps most importantly, smaller questions which might do more to help inspire some conversations in the comments.

So instead of simply posting my prepared text, or a reconstruction of my talk from the notes, as one big blob, what I’m going to do over the next several days is to split things up a bit, and publish a series of bits & pieces, ad seriatim. I’ll be covering ground that a lot of us have scouted before; some of the pieces (or bits?) will be nothing more than a quick attempt to clearly mark out something that just about every left-libertarian already knows or has read or has written herself. I can only say that I’m trying to accurately represent the ground that I covered in my talk, even if I am serializing and subdividing it. And I do also think there’s something to be said for clear maps, even if the territory has already been surveyed elsewhere. I hope that a survey of the landscape might help to make some journeys more pleasant, to help collect some thoughts, and to move along some conversations.

After I’ve finished serializing the remarks that I made at the panel itself, I hope also to follow up with a few remarks on points that were raised by my co-panelists, which I didn’t have the time to get into at the event itself. And I look forward to seeing how the conversation goes on from there.

Anyway, all this is by way of introduction, or apology, and that’s enough of that.

The first bit (or piece) will be coming out tomorrow.

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