Economics and the World Thread

<p>Hey, since all of you applied to Chicago, I am betting many of you are drawn in by their economics program, the best in the world, so lets talk about economics!</p>

<p>The issue I want to raise is: how much do we really benefit in a consummer's nation? We work to purchase durable goods, nondurable goods, and services and our purchasing power is increasing as productivity increases though technological, human capital, capital (tools such as machines and cmputers), and specialization advances.</p>

<p>But for the extra goods and services we recieve, our liberty is eroding away. We must continuously invest more in our education and education is continuously being regulated into a more and more specialized niche. People could spend a life time studying such a small part of life. Industrial workers are spending their lives repeating the same motion over and over to increase dexterity and thus, productivity. To specialize in everything means to specialize in nothing. Then when we spend our money, we demand the service or goods produced by others who also gave up their liberty so we could get superior goods. Do we win or lose after all? Does our progress justify the erosion of our environment?</p>

<p>People don't spend their whole lives specializing. They do that for a job, but outside of that job people are able to enjoy the fruits of society's labor. Today's unskilled worker goes home at the end of his or her monotonous day of factory work to a decent, if small, home with a television, kitchen appliances, and indoor plumping. Yes, people do sacrifice their liberty for 40 hours a week in order to earn a living which allows them to enjoy modern conveniences; however, there are 168 hours in a week, which leaves them 128 hours to enjoy modern life. As far as I'm concerned, that's not an unreasonable trade.</p>

<p>You make it sound like the work-play ratio is 1:3 which is without a doubt not true (not for lazy students like me though. my ratio is 1:20) First, there are other social contracts and life’s necessities that must be fulfilled. We first must sleep, eat, and clean. We must than take care of things like taxes, our children, etc. For every hour of work we could “play” 3 hours doesn’t sound like a right ratio. </p>

<p>I am not against modernization at all (who is?); I am just raising something I thought about. I don’t doubt that today’s highly paid professions do command a lot relative to how much time they work for what they command. However, what about an unskilled worker? What could they afford in life when they constantly go home tired and fatigued? Do you think they will have the same energy, if they had the same resources, as a highly paid professional to go out and enjoy things? Also, more than one billion people in this world are living on less than one dollar a day. Many people work in sweatshops because sweatshops pay higher than farming, an occupation that doesn’t guarantee you enough to eat in an undeveloped nation. </p>

<p>Life in America is ideal, especially if you are privileged enough to post on this forum (which implies you are rich in education and background). However, we must keep in perspective that many lives are thrown in an artificial industrial world where almost everything personal is stripped away; workers no longer know who they are working for (it could be millions of stock holders or just one big owner) and how to make anything else besides what they specialize in.</p>

<p>You have to be both smart and talented to fill a highly paid position because people have to want your time badly enough to pay for it. If you aren't smart or talented you don't command the same benefits; however, life is a lot better today for the unskilled and unintelligent than it was during feudalism.
ps: "I am just raising something I thought about." I know, I'm not attacking you, I'm playing the devil's advocate to spark an interesting debate and force you to think critically about your own arguments. The "well, it's my opinion" cop-out doesn't work, because that fact is obvious. So come, let's see some defense!</p>

<p>There are ways to measure GDP, wages, and production nothing can measure real utility, not even the Consummer Comfort Index. So are people really more happy about life now than ever before in history?</p>

<p>A company builds factories in a small farming town. People earn more money but give up more liberty because instead of building the fence, feeding the animal, rebuilding the house, plowing the feilds, etc, they endlessly repeat the same thing over and over and over again. They have more material goods and so do others and yet they gave up so much. Relativity can't be ignored. Now that the town is dominated by industries, the town is more crowded and polluted but, again, people have more material goods. </p>

<p>Of course I don't really support my own argument because I'm a full supporter of modernizaton. However, lets just say I am anti indurstry, anti moderization. Defend yourself; so far, you haven't done so.</p>

<p>Both capitalism and communism have brought with them the cult of production, which states that producing useless amenities and conveniences are the ultimate goal of a society and in the process have rooted out all worthy goals. That you seperate life into "work" (defined as labor coerced under the threat of starvation) and "play" (defined as trite amusement and pleasures to pass the time between work, until death) with no room for anything that's actually important is very telling. As people who live by "the life of the mind" you guys of all people should be able to see how illusory and fleeting our modern "conveniences" (if they could really be called that, since they just tend to comlicate things)</p>

<p>How many jobs in industrial society really NEED to be done? The average american moves paper from one stack to the other or tightens bolts on an assembly line for the manufacture of electric foot massagers. There are just so many friggin people that we need to build up this overly complex mechanized society so everyone has a role. But But the machine has grown far beyond human control and no longer serves us, we serve it. As Julius Evola said, the "restlessness, resentment, disastifaction, the need to go further and faster, and the inability to posess one's life in simplicity, independance, and balance" that has become pervasive in the modern world is very telling.</p>

<p>Oh yeah, and we use up all the worlds resources and pollute the air and waters as well, don't forget about that part. Perhaps the worst part is that when this system falls apart (which it inevitably must, as constant growth is required for its perpetuation, and the planet isn't built for that) the resulting suffering will be all the more horrific than if it hadn't ever existed at all. If you really take the time to ponder how organization-dependant our technlogy is (no single man can make a refrigerator or a computer, and even if he manged to, he'd have to build a power plant to go with it) it becomes obvious how quickly it can all disappear. </p>

<p>In ancient societies "work" was though of something fit only for a slave or an animal, not even a peasent. The role of true human beings was "action" which always carried a meaningful and transcendent purpose. Today "work" is exalted as the most important thing anyone who isn't "wasting time" will occupy themselves with. </p>

<p>See: Jacques Ellul, The Technological Society
Julius Evola, Revolt Against the Modern World (I wrote one of my essays about this one)</p>

<p>Nicely put, I agree with you for the most part. Nowadays, governments are so concerned about having full employment and about the economy that policies (fiscal) are made just to make it happen. Who really needs an ipod anyways? Because there is an ipod, we have more incentive to work harder to earn money so we could buy that ipod. Now apply the same logic to every other good that people didn't know they wanted until it was created. That is capitalism for you: a system that constantly pokes people into action. After a certain point, I believe, it is no longer about need; it is about ego. </p>

<p>But then again, who would trade the American environment for an Indian one? Perhaps we just take everything for granted and I believe we do. Look at the poverty and the uncertainty of life in India (for the most people). For capitalism and hyper development, the benefit, so far, far outweighs the cost. </p>

<p>“Perhaps the worst part is that when this system falls apart (which it inevitably must, as constant growth is required for its perpetuation, and the planet isn't built for that) the resulting suffering will be all the more horrific than if it hadn't ever existed at all.”</p>

<p>I can’t agree with that. You are assuming a fundamental logic that the world is not built for sustainable human growth. Statistics shows in advance nations like America and European countries, materials used in production actually decreased substantially. If memory serves me, a coke can a few decades ago use 2.5 times more aluminum as a coke can today. Instead, services and service intensive goods are the new things. Population and pollution are also decreasing in advance nations. It is a new phenomenon that the law of diminishing returns applies to population, waste, and material goods in leading advanced nations.</p>

<p>But there are billions of people who are not even close to that level. Look at the crazy development of China, India, Russia, and Brazil. They will soon be followed by other undeveloped nations who also want to industrialize. The law of diminishing returns in population, waste, and pollution are at least a century away for the four mentioned nations (maybe not Russia because of their relatively small population and their advance sciences) and maybe half a millennium away for the whole world (I am speculating). </p>

<p>Lets hope the world doesn’t collapse before the world reaches the point of diminishings returns with the negative externalities of capitalism. </p>

<p>God, I hope I can study economics at the University of Chicago.</p>

<p>"But then again, who would trade the American environment for an Indian one? Perhaps we just take everything for granted and I believe we do. Look at the poverty and the uncertainty of life in India (for the most people). For capitalism and hyper development, the benefit, so far, far outweighs the cost."</p>

<p>j10cpc5000
This is uncalled for!</p>

<p>? I don't understand.</p>

<p>"God, I hope I can study economics at the University of Chicago."</p>

<p>I hope so, too - you all need it. :-)</p>

<p>Let's start with confusing repetitive, dull work with erosion of liberty. Pleeease. Anyone that wants to leave a factory job and return to subsistence farming (after all, that's what most folks did before the boring factory jobs came along) can certainly do so. </p>

<p>A good economics education will teach you that different people have different preferences. Some people will trade almost anything for staying put. They will never move for a job. Others, like college educated folks, view the whole US as their job market. The study of these preferences is part of econ.</p>

<p>Growth? Although we discuss it in economic terms, we are using the term economics in a political context, not as a discipline. Economics does not say we need growth etc. </p>

<p>A good liberal education like at Chicago will teach you the differences among political discussion, economic analysis, social policy and so forth.</p>

<p>IMHO, the real miracle these days is that so few people can make our basic necessities, and that we can trade to other places so even fewer need do so. That's what enables our service economy.</p>

<p>No doubt, we all need a good economic lesson.</p>

<p>Ps:
"Economics does not say we need growth etc." </p>

<p>Well, there are normal economics and positive economics...</p>

<p>"Well, there are normal economics and positive economics..."</p>

<p>And then there are kids who wish to quibble over semantics with newmassdad who, if I've learned anything about him from his posts, refuses to play that childish game. :)</p>

<p>I really don't have a clue what you and chicagonobel are talking about.</p>

<p>BTW, I DID study econ at the U. of Chicago, at the GSB. The teachers were great, it was a real eye opener and I've never forgotten the lessons.</p>

<p>I realize in retrospect my comments were a bit condescending. I apologize, as I do find all of your views fascinating. And my comment about studying econ was meant in a postive sense. What is fun about so many social science disciplines is that popular lore and the reality of the discipline are so often so far apart. The real stuff is so much more interesting than the pop versions you read in the paper or in top magazines (never mind sound bites on TV).</p>

<p>So, stay curious, stay open minded, and remember that not every economist things growth is a good thing. In fact, the more serious economists probably have no opinion.</p>

<p>BTW, j10, what are "normal economics and positive economics?"</p>

<p>I made a mistake. It is normative economics, not normal economics. According to Friedman, positive economics has to do with "what is," while normative economics has to do with "what ought to be."</p>

<p>"I can’t agree with that. You are assuming a fundamental logic that the world is not built for sustainable human growth."</p>

<p>If you don't think we're raping the earth, then you need to wake up. Thinking about the problem in economic terms won't help. Any scientist can tell you that the earth has a finite ammount of any material on it. When a material is used up, it's gone for good. Currently, our industrial process runs on fossil fuels. We use oil to power our homes and our factories, we use it to drive our cars to take us to work, it powers the crop harvesters that gather our food, it powers the trucks that take the food to our store and the refrigeration in the store. We use it to make the pesticides that keep our massive fields from becoming completely overrun by insects, we use it to make the plastics that go into nearly everything we make. Well, we don't have that much of it left--most scientists project 50 years left for oil.</p>

<p>Then there's all the byproducts of everything we make. When we are done with something, we throw it out and pretend its gone. Well, its not, it piles up to mountains and mountains of trash, it poisons our oceans and our rivers, it leaks into our soil. All high-tech manufacturing processes, from the monitor you are looking at to the car you drive, leave behind toxic chemicals that there's no real way to dispose of yet. Because we make more money if we sell more things, many products have obdolence built into them so they become obsolete and require a new purchase after a few years. Other things we are just convinced to buy more of than we need, like T-Shirts. How many T-Shirts do you own? If you calculate how much "stuff" went into making it and getting it to you, your mind would be boggled. THen you multiply it by 6 billion, and you're starting to get the picture.</p>

<p>If every nation lived like us we'd need 3 earths to satisfy our needs. Well, it looks like China is going to be the new us this next century. Great!</p>

<p>"But then again, who would trade the American environment for an Indian one? "</p>

<p>Third world countries are so as a result of the exploitation and other adverse effects resulting from contact with capitalism and imperialism. You might not trade your modern life for a different one, but that's because you've already been lulled into being a lazy beast. If you were born into another era you wouldn't long for a flush toilet. </p>

<hr>

<p>"Let's start with confusing repetitive, dull work with erosion of liberty. Pleeease. Anyone that wants to leave a factory job and return to subsistence farming (after all, that's what most folks did before the boring factory jobs came along) can certainly do so. </p>

<p>A good economics education will teach you that different people have different preferences. Some people will trade almost anything for staying put. They will never move for a job. Others, like college educated folks, view the whole US as their job market. The study of these preferences is part of econ."</p>

<p>Its not about "freedom." "Freedom" is what lets people sell useless trinkets that destroy our planet so that they can make tons of money and waste our land even more with their destructive habits. It's about society actually doing stuff that matters, and on another level, doing stuff that isn't self destructive. </p>

<p>Some people are better suited for a simple life, a life of labor followed by blissfull respite. These are the type of people that should follow orders from people who know what they are doing, but in a capitalism "the market" decides what gets produced so we get gas-guzzling SUVs. Leaders, on the other hand, should be worried about what's best for society as a whole, not what will get them the largest stock dividends or the most votes. </p>

<p>"Preferences" these days are just hedonistic social whims or selfish material goals. If the goal of your society is to live in as much comfort as possible, fine; if your goal is to have a purpose on this planet and not **** it up, you better find another way of deciding what gets done.</p>

<p>"Economics does not say we need growth etc."</p>

<p>It's always easier to get money by finding a new market than by being succesfull in a new one. Populations may stabilize in "well-developed" nations but their consumption continues to grow exponentially. Because these days everyone look out for his own arse, you can rest assured that eventually we will simply run out of space and material.</p>

<p>"A good liberal education like at Chicago will teach you the differences among political discussion, economic analysis, social policy and so forth."</p>

<p>Quite frankly you are a moron if you think these things can all be seperated into nice, neat little categories with no overlap. </p>

<p>"IMHO, the real miracle these days is that so few people can make our basic necessities, and that we can trade to other places so even fewer need do so. That's what enables our service economy."</p>

<p>You really need to think about just how fragile our system is. There are so many gears and parts in it, that if one aspect gets thrown off, the whole **** hits the fan and now we're stuck without lunch because all we know how to do is administrate a corporate intranet. I would say that most of what goes beyond our basic neccesities is nothing more than indulgence and thus superflous.</p>

<p>I am by no means a primitivist, nor do I think its possible to turn back the clock. But I think its clear that the "market system" produces things that are useless, make things more complicated than they need to be, and will ultimately be fatal for us or our planet. My ideal society would use technology, but it would use technology wisely and not let the masses with their selfishness decide how to use it.</p>

<p>Whew. I could go on but i'm done for now.</p>

<p>"Quite frankly you are a moron if you think these things can all be seperated into nice, neat little categories with no overlap. "</p>

<p>This is funny. Only an uneducated fool would (1) confuse moron, a psychological term, with lack of smarts and (2) not recognize that social science ISSUES are always interconnected, as are the tools used to study the issues. </p>

<p>Rejected Ryan, </p>

<p>You need to learn the difference between policy discussion and analysis on the one hand and social science analytical tools on the other hand. </p>

<p>Your critique of the "market system" makes me think you've been to too many Greenpeace meetings (or whatever). You need to learn the differences among rhetoric, social posturing, policy analysis, analytical tools and so forth. </p>

<p>Your concern regarding the planet is well founded. Some of your facts<br>
are wrong. For example, your statement "Populations may stabilize in "well-developed" nations but their consumption continues to grow exponentiall" is just plain wrong. For instance, our land use for agriculture has declined dramatically for many years, as efficiency of production has gone up.</p>

<p>Thomas Malthus has been wrong so far, much to the surprise of many. Maybe the economic systems rejected critiques DO function after all.</p>

<p>Doom and Gloom is easy. Understanding and improving is hard. What would rejected do, substitute governmental policy? Planned economy? Yikes.</p>

<p>"You need to learn the difference between policy discussion and analysis on the one hand and social science analytical tools on the other hand."</p>

<p>I think its pretty clear that I was doing the latter. In terms of the "practical," replacing the current system with a Soviet-like command system overnight would definately not fix "the problem," but it is my opinion that any external measures designed to fix our way of life (if any politicians would actually have the courage to attempt any, which they don't) is impossible because we are thoroughly rotted from within and have been so from some time. Doom, gloom, and understanding are easy if you have eyes, but I think at this point its a little to late for improving, because our system is wrong at its most fundamental levels.</p>

<p>I was wrong when I said consumption continues to grow exponentially; I should have said consumption is exponentially greater than when the nation was "less-developed." Compared to a point in time after industrialization, consumption will probably either steadily grow or it will stay the same--the fact remains that too much is being consumed anyway.</p>

<p>Policy debates will ultimately be uneccesary because the system will destroy itself, whether within 50 or 100 years, and just as concrete jungles are soon overrun by weeds when left alone, life will either return to a primitive natural state, or, if you are optimistic like I am, a society greater than ours that still uses technology but uses it responsibly.</p>

<p>Rejected, </p>

<p>Good comments. But you are engaging in indirect policy discussion, not analysis in a more traditional sense.</p>

<p>Here's where things get interesting: It is up to folks like you to influence policy to avoid the doom and gloom scenario out outline. Economics provides tools that can help guide policy making to achieve the objectives you desire in a minimally disruptive fashion. BTW, econ is perfectly comfortable with a former Soviet style command economy. Econ also tells us why it became the mess it did. Econ can be approach neutral.</p>

<p>And no, I do not think it too late to change. For instance, right now there is still a window of opportunity to avoid a collapse of ocean resources (fish stocks) but that window is rapidly closing because too few folks like us are speaking up, or voting with our wallets (chargecards?). When is the last time you heard of someone seeking out substainably harvested seafood?</p>

<p>The only ones who speak out about sustainable seafood are cowardly liberals who care more about "animal rights" than sustaining the natural world we and everythign else depends on and hippies whose comments are often dismissed as stoned rantings.</p>

<p>It may be possible if you are able to raise enough rabble or if the problem becomes visible enough (before its too late) to enact some policy changes, but they will mostly be just concilliatory measures, and we will keep dumping C02 into our atmosphere and waste into our waters. Sure you can put a legal cap on the ammount a factory emits, but its still emiting it, just at a slower rate, so you are merely delaying the inevitable.</p>

<p>The problems go deeper than just overfishing or factories with inefficient technology. The problem is that we live in a world where material goals are the only socially accepted measure of success. We live in a world where we are governed by mobs as cleverly manipulated by profiteers. We live in a world where individualism is the supreme way and and most people cannot see further than beyond what their own eyes and their televisions tell them. Only complete collapse will do away with these problems of which the types of things you described are merely symptoms.</p>

<p>But I am not a pessimist. I am very optimistic about the death of this society that I believe is nothing but failure, and only hope that I may live to see the rise of something better or even take part in its creation. The world we live in today is a mass of feces and thus only suitable as fertilizer for the tree that is to come. I am not interested in saving this world because I do not believe it is worth saving--the same thing the last Emporers of Rome probably thought about their dying empire. As Nietzsche said, "What is falling, push." </p>

<p>And I am sorry for calling you a moron earlier, that was uncalled for.</p>