13
points
sirponm
Joined 46 karma
- sirponm parentAllegedly. And just so happened to create a massive cost barrier to competition from smaller companies.
- Walmart uses it a lot more than I do. Civeng principles show that road damage rises to the fourth power of axle weight, a fully loaded tractor-trailer does roughly 10k times structural damage of a passenger car but they definitely don't pay that amount.
And yeah the government is consistently incompetent. But there's no incentive for them to be competent in the first place. Either a mostly exempt-from-competiton company does it badly or a fully exempt-from-competition state does it badly in our system.
- I'm not sure if you read more than the title... this isn't socialism. Yet even the title suggests that it isn't socialism. Instead, this uses the selfishness that the free market is built upon and removes the capitalist wealth-extracting layer to provide the rich egalitarian society that socialism and broader anti-capitalist movements aim for.
- The things you recognize are the tragedies of authoritarianism in all forms to me: nobody can possibly understand the system that well, and central planning simply doesn't work whether it's in a State or a company, because it just cannot and never will recognize each individual person for what they are actually worth as a human.
> It brands you valid or invalid based on values like inherited wealth, social class, race, mental health, etc.
Mostly inherited wealth I would guess, correlated to the other things for sure. Capital is everything in capitalism. Wealth distro follows a power law instead of Normal for this exact reason.
- Oops I forgot to respond to the other things you mentioned. That list of removed obstacles is technically correct, but it misses that those things were mostly subsidized
1. Regarding transportation, the interstate highway system and the containerization infrastructure (ports, dredging, naval security) were massive state subsidies to long-distance distribution. If Walmart had to pay the full property tax and maintenance cost of every mile of road their trucks used, their economies of scale would evaporate instantly. The state artificially lowered the cost of long distance shipping below the cost of local production. That isn't efficiency, but the taxpayer subsidizing the inefficiency of moving a toothbrush 3,000 miles. (Carson called these "diseconomies of scale")
2. The Uneeda Biscuit era of mass production created a crisis in that high fixed costs meant factories had to run 24/7 to be profitable, they couldn't wait for orders but had to force product onto the market. This required the state to intervene again via imperialism and arguably the creation of a consumer culture to absorb the surplus in the form of advertising and other means.
3. Computers are the most ironic part; Computers and CNC tools actually destroyed the rationale for the large factory, made it possible for a garage shop to produce with the same precision as a General Motors plant ("Homebrew Industrial Revolution" book by Kevin Carson again which in my mind is not one of his most defensible but it's still interesting).
I would argue that IP was the main reason that small shops didn't take over. As physical capital costs dropped, the state ramped up IP laws (patents/copyrights) to protect corporate hierarchies from the decentralization computers should have caused. I think that Big Tech isn't Big because of hardware efficiency but because of the state-enforced monopoly on information
- I'm so glad that you mentioned railroads because there is a great book, Railroads and Regulation by Gabriel Kolko about the capitalist anti-competiton regulation of the railroad industry that caused their concentration. If you wanna read about it, an essay about it is called "Big Business and the Rise of American Statism" inside of Markets Not Capitalism (freely available online). I'll summarize what it says tho:
Every time big railroad magnates tried to form a cartel to fix prices, a smaller competitor would lower rates and steal all the customers; freight rates went wayy down in this time period. The big railroad owners (like JP Morgan's clients) lobbied for the ICC not to regulate them, but to regulate their competitors. They wanted the government to make price-cutting illegal (calling it rebates or discrimination).
Regarding sanitary packages, the essay _also addresses this_: the big Chicago meatpackers supported regulations because the compliance costs were so high they drove small local butchers and slaughterhouses out of business. The "sanitary" laws were a weapon to kill local competition, not a way to keep food safe
- I don't know if I totally understand these theories but I think modern market anarchists would say that a "freed" (anti-capitalist) market does use prices, and further strips rent/interest/privilege to make those prices accurately reflect subjective cost of labor as well. A freed market would still need commons rules, democratic decisions, norms, hard constraints, which isn't a contradiction in the system. I've seen Carson synthesize marginalism and LTV, that marginal utility decides price in more short term and competition drives cost to labor over the long term, as under the distorting effects of capitalism, these two are further apart than they need be.
- 87 points