Capitalists don't like Distributism

The following is a response by Bob to an audio clip about Distributism located here. I will intersperse my not-so brief [comments in red]. Also I read a great article by Ryan Grant titled Distributism in Popular Christmas Films that examines the 2 classic Christmas movies by Dickens and Capra A Christmas Carol and It's a Wonderful Life. I always knew there was something I loved about the way economics is presented in those movies. They manage to avoid the "phoney right-left paradigm" as Grant puts it.

Here is Bob:

...I'd also encourage you to re-listen to what he says, and read my comments at the same time. Of course, learning about Austrian economics might do you good too. [What makes you think I am not familiar with them?] To be honest, everything in this talk was easy to deflect / refute. [I am glad they made it easy for you.]

My comments on Donald Goodman III
Backyard RadTrad Interview

around the 8 minute mark talks about unions protecting the middle class. This is an un-founded assertion, and incorrect under an Austrian mindset. Of course, people should be free to join / create unions, but unions do not inherently protect anyone, and are (in fact) a coercive force themselves. [Yes, a coercive force meant to counteract the coercive force of capitalists]

11:30 - talks about 'paying what the worker is worth'. The idea is to pay a worker enough to keep a family. The idea is nice, but at some point the wage is not worth the employee... the correct thing to do is to lay-off the employee. There is no 'correct' wage, as minimum wage laws prove.  [the wage is not "worth the employee"? this is the capitalist mindset... to treat people as tools or machines -as means to an end. People are not tools. And a system that encourages us to think of them as such (capitalism) is flawed.]

I agree with what they are saying at the 17 min mark about the banks and bail-outs from government. Libertarianism also "doesn't want" this. The root cause (in my opinion) is the federal reserve system (or euro system for our idiot friends overseas) [from a Distributist mindset, the size of these massive institutions makes them de-facto goverments in themselves. They are big enough to make the rules, and they do. Federal Reserve or not, when corporations get massive, they get what they want. ]  - a return to hard currency would help out a lot. [Agreed, but that would not be good for capitalism, which thrives on greed]

I disagree with his remark at 19:50 about the difference between capitalism and socialism. His view on socialism might be correct, but his view on capitalism is jaded by Corporatism (which is what we have in America). This is a common mistake that turns capitalism into a boogy man, even though most people wouldn't recognize true capitalism if it hit them in the face. Socialism = bad, Corporatism = bad, Capitalism = good. He is doing the listener a disservice by not identifying them correctly. [The problem with capitalism is it will naturally concentrate the means of production in the hands of a very, very few people. When this continues to happen, then you get what i think you are calling corporatism, which I take you to mean a sort of 'rule by corporations'. (You must be using a more modern incarnation of that word, because I dont think you can be meaning what the main meaning is)]

at 23:30, he again identifies capitalism incorrectly, calling it "the system where very few own productive property". [Yeah, that's what it is. It may not be the description you would like, but it does fit what happens under capitalism. And yes, even under "unbridled" capitalism. In fact it might be even more concentrated in some situations] Capitalism doesn't care who owns how much, or what. Slapping the straw man! Capitalism is about the unfettered marketplace (something that hasn't been seen in several generations). The invisible hand of the market knows where to best invest capital - weather that is human action, money, property - any kind of capital. Again, who owns what doesn't matter. [But it does matter who owns what. One man or a small group of men "owning" Wall mart stores matters. The fact that they treat their employees like tools matters. The fact that that few men are that powerful matters. Once such a small group is so powerfull that matters to me. It is a unacceptable concentration of the means of production.] At the very least, you own your labor, and can trade that labor for other goods. [If that is the way we view our labor, then that is slavery. What you say here is the capitalist idea though. Instead of viewing our labor as being productive, we view our labor as a commodity to make another man productive. One way is the way of freedom, the other of slavery.]

at 25 min, he talks about tax subsidies for the big stores. He is correct - that is a problem. It isn't a problem with Capitalism, but a problem with Corporatism (where corporations own / influence government). [Which is the natural result of capitalism.] The playing field isn't level. Buying in bulk, however, is not an unfair advantage. Subsidies are.

28 min - your ability to grow (and expand) is limited by 'what does the guild say'!!! Guild, meet invisible hand of the market. Invisible hand, slap guild in face. [The invisible hand you mention is not all that invisible. It is a very few men controlling a very lot of the world. A guild just gives people a share of that power proportional to what one man can properly control. One man cannot properly control Monsanto, nor should he]. This guy just loves bureaucracy and additional layers of authority (I guess that is expected of Catholics).  [Cheap shot] Lets say your an innovative tailor - do you have to pass your innovation to other tailors so they can become more productive too? He then advocates the state control the 'important' industries? I could spend hours on the danger of that, and how it kills innovation, destroys jobs, and is an all round horrible idea. [So who controls the roads and airwaves in your ideal then? Somebody is going to control them. And with large enough and important enough things, the ones who control them ARE the government! See it in action in our current 'corporatism' right? I agree if that is what you mean by corporatism. Once they have that much control, whether they are a corporation or a government doesnt matter. They are the one in charge. Distributism just levels out that control.]

at 34 min mark, he uses the anti-competitive practice of binding iphone to AT&T. I agree - morally wrong (done for money). However, that isn't a problem with capitalism. That is a problem with collusion. All phones should be able to be used on all networks (its my phone and my contract = property rights / contract issue). This is not a capitalism issue.

39 min mark - wage and price controls - excellent. This guy is doing a horrible job selling distributism to anyone who has studied Austrian economics. I'm guessing his market is the discontented masses who haven't studied economics at all. [imagine if every beef farmer in the counry was part of a beef guild Bob. Lets ay they vote to set the price of a # of ground beef for the next week/month/whatever. What happens next? Instead of beef being about price, it is about quality. So obviously there are immediately no more growth hormones being used, no more corn being shoved down half dead cows throats, and no more feed lots. Huge factory farms are no longer even desired because there are no more huge profit margins selling shitty meat to people. Instead quality is what becomes the reason I go to store A rather than B. Makes sense to me. The capitalist ideal is lower price=good. The Distributist ideal is Higher quality=good. You can see this in action when you buy your grass fed beef. You are getting a taste of Distributism: supporting a craftsman who is getting paid what his product is truly worth (grass fed beef farmers) rather than supporting a destructive capitalist system at wal-mart where wage slaves are used all the way from the farm to the cash register. ]

--thought--
distributism (as described in this podcast) doesn't have room for innovation. Take farming - larger tractors mean less people needed.[You are assuming that is inovative. It is not. Why is this a good idea? focus is off of quality and on profits and seeing people as tools] That frees up people to do other things - like inventing. Innovation happens because it isn't all 'at the local level'. Distributism also implies that there are certain percentages of people (determined by the guilds) who do certain things. If you want to do something else - go get permission. The invisible hand dictates that there is no 'right number' - rather the right number is the number that the market will bear. Permission isn't needed, just the will to change.
--end thought

44 min - distributism can't deal with the internet at all. It fails in the global economy too. Even basic questions of jurisdiction are avoided.

52 min - he just got done bashing on Tom Woods, then talks about commission being taken away. That's theft (breach of contract). [A mortgage is a contract too. Theft by contract. Why does a contract make treating people like animals ok?] He then complains that there weren't unions to back him up. I don't get it, the cure is worse than the problem. The solution is to stop stealing from your workers, not to hamper the work place with a union. Go to small claims and get your contract enforced! [The solution is not to think of peoe as "your" or "my" workers to be doled out goddies if they behave.]



Again just to clarify, Distributism is not Catholic dogma. There are many Catholic economic and social principals which it puts to the forefront however. Which is why I like it. The focus on the family being the highest unit in society and having the means to production in the hands of the family rather than the family BEING the means of production is what I like.