Tag Archives: socialism

Upgrade your thinking about economics


If you want to upgrade your thinking on economics, I recommend these four pieces:

  • The Choice Isn’t Between Capitalism or Socialism – this seems obvious to me and likely you too, but it is a good reference to keep around for whenever you hear people talking about capitalism and socialism.
  • America Never Learns the Limits of Bootstrapping – a good piece on the limits of social safety nets built using private initiatives. My belief is that social safety nets should come both from governments and individuals, and that we should be looking into how our society is set up to provide a wide range benefits for everyone. For example, unemployment insurance is good, but free or low cost education to allow people to improve themselves and others is important also. We need more initiatives to improve people’s lives.
  • A Basic Income Could Solve 8 of Society’s Biggest Problems – the big initiative in the 21st century should be this. We can eliminate poverty and remove many social ills with it. It will not be a cure all, but it can cure a-lot.
  • If You’re so Smart, Why Aren’t You Rich? Turns out It’s Just Chance – finally, some many say if you have all these social programs, no one will every try again because we need a system in place that encourages people to work hard and get rich. If you think that, read the article.

Not everyone will benefit from these pieces. I did, though, and for some of you reading this, you will as well.

(Photo by Aziz Jus on Unsplash)

Quote

What if the Government Gave Everyone a Paycheck? Well it just did. What did we learn?

Before the pandemic (i.e. 2018), people were asking this: What if the Government Gave Everyone a Paycheck? – The New York Times.

It seemed impossible at the time. Then the pandemic came, and governments in the US and Canada essentially did just that.

What I fear is going to happen is economic conservatives are going to rush in and start yelling “Deficits are Bad!!!” and all the Establishment will nod and a new wave of austerity will come in. What I hope is that better economists will come to the fore and push and see how close we can get to UBI, given what we learned so far.

Much depends on what happens in the next six to twelve months.

A cautionary tale of what low taxes and libertarianism brings

Amish women on the beach
There can be many lessons that can be drawn from the story here: The Rise and Fall of the ‘Freest Little City in Texas’

The ones I drew were

  • You get the society you pay for. In this case, the people of this part of Texas were unwilling to pay for anything, and they got nothing in return. It’s hard to believe this even needs to be said in this age, but apparently it does.
  • Even basic services cost money. That money comes from taxes or service fees.
  • Those services are expensive to pay for individually: it makes much more sense for people to pool their money (in the form of taxes),  to make it cheaper overall for everyone.
  • Taxes are only part of what makes a society, but a society that is based on money and that does not have taxes is no society at all.
  • Only a society that does not depend on money can get away without taxes. Typically those a tightly knit,  cohesive, pre-money communities that depend heavily on sharing and barter. These communities are more socialist or communist in nature as opposed to libertarian. More like an Amish community or hippie commune or a religious community of some form.
  • The best way to have a libertarian society is to have one of great abundance. Scarcity requires people to share and work together if they want to survive.

It’s a good story. Read it for yourself and draw your own conclusions.

(Photo above is Amish women on the beach)