Eran wrote:There is theoretical research. As far as I know, there isn't a single historic case in which a monopoly has resulted in higher prices to consumers.
Here's a study on monopoly quality degradation in the cable television market (following "so called" deregulation).
http://www.hss.caltech.edu/~mshum/papers/chat.pdfAs I'm sure you're aware .... real life rarely corresponds to rigid, bright line rules. In most cases, it's a matter of degree, there's almost always exceptions to the general rule, etc. The case of monopolies is no different.
Natural monopolies can occur, in some cases it can be more efficient (for instance, where the monopoly concerns a very narrow/highly specialized product, like a computer operating system, or a social healthcare program only covering a narrow segment of the population who tends to have very similar needs e.g. Medicare, etc.).
So I neither agree or disagree with you, I view this on a case by case basis. My preference for participatory economic structures has more to do with my philosophical interpretation of liberty than it does mathematical economic theory, but there's no reason why a cooperative company couldn't gain a monopoly position in its market (so I view participatory economics & questions concerning monopolies, as two independent issues). However, I also acknowledge, as a general rule, centralization is undesirable (from both the perspective of human liberty & economic efficiency). Again, there's exceptions to the general rule.
Anarchism opposes coerced centralisation. In a free market, if a single company does such a great job satisfying consumer preferences that no other competitors manage to acquire significant market share, what of it? The critical point is that entry into the market is free (from artificial barriers). Thus if, at any point, the "monopoly" ceases to do a great job satisfying consumer preferences, competitors will be able to step in.
Not of market anarchism. "Power relations", broadly defined, will always exist. What market anarchists (or voluntaryists) reject is the use of force to acquire or violate property rights. We reject the use of physical force or invasion (or threat thereof) as a legitimate component in human relations.
You're describing a more recent variation on the anarchist theme.
A boss/worker relationship IS a "power" relationship, thus, some degree of coercion will always exist in these relationships. To say that a state is necessary for coercion to exist, is (quite frankly) absurd, and here's where (in my view) anarcho-capitalism runs into its biggest problem, the very narrow way it defines coercion. It ignores the fact that where power relationships exist, people typically feel coerced.
Moreover, I do not accept the premise that power relationships (as they exist today) will always, or for some reason, must always, exist.
Here's a study on the comparative performance of employee owned companies:
http://www.law.nyu.edu/ecm_dlv4/groups/ ... 070167.pdfThere's a number of good studies on this question & they show that where there's substantial employee ownership & where management is participatory, on average, the employee owned firm will outperform their conventional counterpart. Worker cooperatives operate in much the same way (compared to ESOP's). This would suggest that diminishing power relationships could be beneficial from an economic perspective (which I find consistent with the trajectory of human history).
The "power" of the market is the power of persuasion and temptation. Bill Gates has much power because he has the resources with which to tempt people to do as he wishes. He doesn't have the authority (nor would he under market anarchism) to force others to do his will.
Overall, I disagree with this statement, but I also acknowledge that we define power & coercion differently. I would define any top down/hierarchical system, as coercive.
The same holds for a free market monopoly. It might be very well positioned to offer its products to consumers, but, at any points, consumers may choose to stop doing business with it. This is a legitimate form of power.
Again, we disagree on the definition of coercion, and in my view, power is almost "always" undesirable (I must admit a certain distaste for arguments based on claims of legitimacy or illegitimacy). Rare exceptions include things like a parent restraining their toddler, so the child doesn't run out in the middle of oncoming traffic, people who are uncontrollably violent and dangerous, people with serious infirmities, etc. Otherwise, it's just a watered down version of the master/slave relationship. The trajectory of human liberty has been master/slave, feudal lord/serf, boss/subordinate .... in other words, coercion has become watered down over time. The final step for the human race in this regard, is the end of coercion.
Exceedingly less coercion has resulted in a perpetually improving quality of life, thus implying that coercion itself is the problem, and coercion very broadly defined (to include "all" power relationships).
These problems will tend to create dis-economies of scale, whereby large corporations (not to mention governments) are automatically "penalised". That is why small, local, nimble, adaptable, non-vertically-integrated competitors are likely to have an edge over a large, global, vertically-integrated corporation.
There is no need for government intervention - the market will automatically penalise such corporations.
This is a theoretical assumption without any empirical evidence (although I'm willing to concede that many of my own assumptions lack empirical evidence).
So the question for me becomes, if I'm going to support a radically new vision for human existence, which lacks evidence (because it's never been tried before, or at least never in recorded history), then what sort of vision should I opt for? Will it be one that tries to eliminate power relationships to the maximum extent possible, or one that continues the idea that power relationships are somehow self-justifying (where we can adopt statements like "power relationships will always exist" as a foregone conclusion, and use that premise to ignore the desirability of diminishing power relationships)?
I mean, I guess I would say that the burden is on the anacap to begin by justifying capitalism itself, under a moral paradigm. I would say, in some respects, there are moral arguments supporting capitalism. For example, it tends to do a good job of promoting innovation, and innovation has resulted in immense improvements in human quality of life. However, I would say this is a superficial argument, because it can only compare capitalism (in an empirical sense) against other systems that have existed throughout history. Of course when it comes to "stateless" capitalism, there's really nothing in recorded history that can provide us with a good comparative example, so then the anacap (like the conventional anarchist) is forced to argue from theory and logic.
Arguing from logic, speaking for my own view, I view the state as undesirable because it is a coercive force, implying that underlying my view is the undesirability of coercion. For me, while coercion has an objective definition, it also has a subjective component. That is ... if someone "subjectively" believes that they have no choice other than to do X, then they are coerced into doing X. This avoids axiomatic logic, where the premise of the deductive argument must assume a certain amount of universality in human perceptions, or natural law theories (that essentially do the same thing).
The balance between economies of scale and dis-economies of scale will vary by industry, technology and forms of internal organisation. If a large corporation is able to out-compete smaller competitors in the free market, it will have proven that economies of scale, in its particular case, outweigh dis-economies of scale. Forcing it to break down will harm, not help consumers.
In my view, immediate gratification of the consumer should not be our first priority. It must be one priority, but it must be subordinate to other factors. For instance, environmental sustainability (without a habitable planet, everything else is sort of worthless).
Similarly, I may have decided, as a sovereign consumer, to form trading relations with a large free-market "monopoly". Who is the government to interfere with this freely-chosen relationship?
I actually do agree, if someone freely chooses to subordinate themselves to a boss, they should be able to do so. The question is, what does "freely chooses" mean in this context? Here again, we define coercion differently. If we had a diverse economy, where ESOP's, worker cooperatives, unionized firms, etc., were the norm rather than the exception, if our democracy were participatory, then yes, conventional companies should certainly have every right to compete in this marketplace. Some people may be in a more transitory stage in life, where they're unwilling to commit to a career long term (like college students, recent graduates, etc.). In this case, they may prefer to rent themselves out to an employer (and they should have that choice). However, it must be a free choice (and in a world where your only choice under most conditions is to rent yourself out .... it is not a choice at all).
I don't understand what that means.
For example, a municipal bank (like say a bank of Syracuse), but in a Syracuse that operates under a participatory democracy framework. In other words, sure, we can delegate administrative responsibilities to people (e.g. to manage public services, like water treatment, perhaps even law enforcement and court functions, etc.), but delegates must always be subject to recall, and ultimate decision making should be done by democratically organized community groups (i.e. voluntary, non-coercive, associations and confederations).
Clearly, today's banks rely on the protection of a central government in any number of ways (regulations blocking competition, implicit or explicit deposit insurance, handouts associated with central banking operations and outright bailouts). Absent such protection, the banking industry will look quite different.
I assume we both agree on the problems inherent in something like a federal reserve system.
But if, in a free banking environment, privately-owned banks emerge and survive, that is due to the fact that their customers, of their free choice, and exercising their individual sovereignty, have chosen to give their money to the banks (in exchange for valuable services). What is wrong with that?
In the case of money creation, I believe the problem is, people have no voice in the process. If we had a municipal bank, managed by officials subject to recall, where community groups have the ability to shape bank policy, and these banks were the root of money creation, then we could reasonably define money creation as democratic.
I assume you would say that under true free market conditions, banking would also be democratic, but of course it's very attenuated and indirect. In other words, say people in a community have a preference for worker cooperatives, and they don't want retail stores that sell products produced using sweat shop labor, as their only alternative to purchase the goods they need. They could require the bank to finance cooperatives (since the bank belongs to them). On a side note -- I do not believe that sweat shops should be allowed to exist.
However, I do also see the need for private banks (again, I do not endorse confiscatory schemes, and I support diversity in our economy, in the interest of making available to everyone, a full range of choices).
More generally, how are your philosophical sentiments (in particular with respect to "power relations") translate to the question of property?
In general, I do not oppose the concept of private property. However, I do believe property rights must be subordinate to human rights. In other words, ideally, a large portion of property would be democratically owned and managed. I understand you might see some hints of coercion in this idea, but it's not (again, I could not support any sort of confiscatory scheme, where property is seized from its owner).
I view anarchism as a ground up, grassroots movement. It obviously cannot be state imposed, and indeed, it must compete against (and outperform) our conventional economic system, in order to have any hope of larger scale implementation. It may not live up to that hope ... in which case, it would not (and should not) be adopted by society. The only way we can explore the merits of anarchism, is by gradually moving in that direction. I'm very confident that we can move much further in this direction, and there is evidence suggesting we can, without sacrificing (and indeed enhancing) economic prosperity. However, I also concede there may be an upper limit, where some power relationships may meet the high bar of justification I believe is required to sustain them. Nevertheless, even where power relationships can be justified, I believe the justification can only be temporal (and a future society may be able to diminish power relationships further still), implying that anarchism is an idea that lives on ad infinitum, a perpetual state of mind. It is incumbent on the anarchist to always identify and challenge power structures. Just because a power structure can be justified today, doesn't mean it can justified infinitely into the future.
I think anarchism is on safe ground arguing from a "trajectory of history" perspective (in other words, the direction has been towards exceedingly diminished power relationships, and as power relationships are reduced, human quality of life is enhanced, thus implying that power relationships restrain quality of life). The master/slave and feudal lord/serf relationship has been reduced to a boss/worker relationship. The trajectory has been towards exceedingly more voluntarism, and less coercion. Taking this idea to its logical conclusion, the boss/worker relationship would be the next target we put in our cross hairs.
Keep in mind, at every stage of enlightenment and human development, established and entrenched interests were always threatened. There was always a segment of society who could claim that more freedom for the underdog translated into less freedom for themselves (likewise, radical changes to the established order always seems like an uncomfortable idea to most people, and of course the established order has every incentive to induce fear among the general public to sustain themselves). An argument that in retrospect, is not very compelling (and indeed must be rejected in order for human liberty to progress).