Showing posts with label Karl Marx. Show all posts
Showing posts with label Karl Marx. Show all posts

Tuesday, May 19, 2015

Pol. Ideology 62, Marx and Hayek on Property Rights

Nearly six years ago, I presented this paper in a seminar on "Freedom and Property" in Manila, sponsored by the Friedrich Naumann Foundation for Freedom (FNF) Philippine Office.


Yeah, I recalled my UP student activism days in the 80s, when the Maoist Nat-Dems were the dominant leftist groups, but our small group dissociated with their ideology as we read more Marx and Lenin, not Mao Tse Tung :-) I re-read portions of "Das Kapital"  and "The Communist Manifesto" in making that presentation.


Recognizing the mistakes of Marx' analysis contributed why I abandoned the Marxist ideology. And later embraced the philosophies of Adam Smith, Friedrich Hayek, Mises, etc.


Property Rights Alliance's (PRA) annual IPRI Reports are good materials in the study of how countries and economies respect or disrespect private property ownership and control, both physical and intellectual property.


My first published article in BusinessWorld was in November 2007. (This year I have two articles already in that newspaper, a 3rd article coming up this Friday :-))


The full text and presentation is available in my slideshare page.

I posted this paper because next week, I will be a reactor to a mainly socialist paper presentation on "Alternative Economic System", with a largely socialist audience. No problem with me, I don't evade any debate, civil debate. Excitng.


See also: 

Monday, December 01, 2014

Inequality 21: Marx, Keynes and Pikkety are ideological soulmates

During the Philippine Economic Society (PES) 52nd annual conference last November 14, 2014 held at Intercon Hotel, Makati City, the most stimulating presentation I saw was that by Dr. Raul Fabella, my former teacher in  Econ 141 (International Trade) at UPSE undergrad  in  the 80s. Sir Raul's plenary paper was entitled The "Piketty Inequality and the Role of the State in Economic Thinking. To see the other papers at the  conference, see PES website.

A true blue academic, Sir Raul started with the ideological basis of inequality angst of many current thinkers, especially among  governments and multilateral agencies. Quotes from Marx, Churchill, Ayn Rand, Greenspan and Mises.


Implication of such ideological debate/clash are questions  like: Should governments become more or less welfarist, more or less tax-hungry, more or less interventionist? Or more simply, should we have more  or  less government? Of course if I was asked of such questions and choices, my vote is towards the least, the most lean, tax-hungry government.


It is not possible  to have zero market failure because anyone, anywhere and anytime, can create such market failure. Like people can demand the supply of near-impossible to produce (given current technologies and understanding of nature) goods and services, at very low  prices. Demand is there but supply is zero, or available  but at very high prices. The price of a product or service  is a reflection of its scarcity or abundance. Begging for very low price even if the cost of production  is high immediately creates a market failure.

I agree with the Kuznet theory..


Thomas Piketty and his book argues the opposite of the Kuznet's theorem and says that as growth rises, inequality among people  further rises.


The concluding slides, that the state is necessary to prevent capitalism from self-implosion.


Marx has slightly digressed from the Keynes-Piketty ideological alliance as Marx believed that the state cannot  save capitalism. Thanks Sir Raul for that highly challenging presentation.
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Thursday, May 02, 2013

Labor Econ 12: Wallace, Lenin, Stalin, Mao

No, no, no. Peter Wallace does not advocate the same things as Vladimir Lenin, Joseph Stalin and Mao Tse Tung. Peter of the Wallace Business Forum, is an Australian businessman and consultant who has lived in the Philippines for nearly four decades now, has a Filipino wife and kids, and advocates market-oriented reforms in the economy. 

I did not feel like writing another paper on Labor Day yesterday as I have written several papers on labor economics already. So I am reposting Peter's article in the Inquirer today. I share his ideas on this subject.
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May Day
7:57 pm | Wednesday, May 1st, 2013

The trouble I find in writing a column is that I tend to repeat myself—because the things I complain about are still there, or worse (in my biased view), are still there after I’ve offered a solution.

So here I go again for my Labor Day piece. Let me start with the one I think most needs to be changed: job security. And let me do so by emphasizing the repetitiveness of what I’ve said before by quoting what I’ve said before:

“The security of tenure is probably one of the worst pro-labor laws you can imagine. If there’s one thing it’s not, it’s security of tenure. It deters, instead of [encourages], job creation. You think twice, thrice before hiring anyone because of the huge cost and difficulty of terminating. Or you hire for five months, and then kick the employee out in the most hurtful fashion.

“If a job is necessary, when you fire someone, you just hire someone in his place. There’s no reduction in the available job statistics. Someone lost, someone else gained. The ‘loser’ works harder next time to ensure he retains the job, the ‘winner’ works harder to ensure he keeps it. Productivity goes up, cost goes down.”

This is so blindingly obvious to me that I can’t for the life of me see why it hasn’t been changed. Only the simplest of minds would think protecting an employee regardless of performance or corporate need is desirable. Maybe a century ago, when you didn’t have to compete with the world, may such a concept have been tenable, but not today. Today, in the global community, the Philippines ranks a miserable 65th among 144 countries. (Mind you, it’s an improvement from 85th in 2010, but the Philippines must aspire to be in the top 25 percent of economies surveyed.)

The next thing is minimum wage, and here’s what I said before, too, on it:

Labor groups argue for higher wages on very reasonable grounds that P456 ($11.12) per day is not a decent living wage. I agree. But zero, which is what close to 3 million Filipinos (or 10.1 million—a more realistic and, sadly, more believable figure, based on SWS’ latest survey) get is even less acceptable. They get zero because they have no jobs. They have no jobs because businessmen aren’t investing here. Foreign businessmen aren’t investing here because they can get cheaper labor in China, Vietnam and Cambodia. Even in Thailand and Indonesia.

Our daily minimum wage is $11; it’s $9.75 in Thailand, $8 in China, $5.30 in Indonesia, and $3.20 in Vietnam. The Philippines gives twice or thrice more than Indonesia and Vietnam, respectively.

Now look at the foreign direct investments over the past six years: China, $1,047 billion; Indonesia, $58 billion; Thailand, $51 billion; Vietnam, $41.7 billion; and the Philippines, $13.6 billion.

Do you see the link? High minimum wage isn’t the only factor that is driving foreign investors away from the Philippines, although all surveys and anecdotal discussions indicate it’s a major one. Do you want a low-paying job or a no-paying no-job?

Instead of getting P456 in daily wage, around 10.1 million Filipinos who want a job get nothing. In the informal sector in the provinces, a daily wage of P230-P280 is common, and people there somehow live on that. Now I’m not suggesting that’s an acceptable wage; it’s not. But what I am saying is that people can survive on far less than P456. But they can’t survive on nothing.

Don’t get me wrong: I’m very supportive of labor, I want everyone to have a decent, well-paying job. I believe that the two issues I mentioned are the reasons people don’t have decent, well-paying jobs because they cause investors, the ones who provide jobs, to look elsewhere, to where they are not constrained like this.

Globalization has changed the game, and we’d better learn how to play it to win. What high wages and restrictive conditions also do is encourage many businessmen to work outside the system.

It was good that the law was changed to allow night-time work for women, but take it further. Allow flexible working hours as long as these total no more than 40 in a week. The world is changing, and we must, too.

If the labor unions truly cared for workers, they’d be arguing on behalf of these people. Arguing, not for uncompetitively high wage rates, but that all companies, formal and informal, pay the SSS, PhilHealth and Home Development (Pag-Ibig) contributions that every Filipino should be given….
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What caught my attention in the Labor Day rallies yesterday was this photo, posted by several friends in facebook.

Of course it is horrible to see photos of Stalin and Mao in a labor demonstration. But the good thing is that at least their believers are getting more transparent in their advocacies, that they express their pinions and ideological leaning via public demonstration and not via armed violence. 

Karl Marx and Friedrich Engels  invented a rigorous critique of capitalism then. Vladimir I. Lenin invented the idea of a revolutionary party to capture state power, and led the Russian Bolshevik revolution. Stalin succeeded Lenin and invented dictatorship of the (Russian) dictators. Mao invented the idea of peasant revolution, led the Chinese communist revolution and the succeeding dictatorship and massacres for nearly three decades. Without revisionism by Deng Xiaoping and succeeding leaders, China would be a bigger version of North Korea by now -- destitute, terribly poor and isolated.

My usual advice to labor activists and their leaders is simple: Get out being a worker. Be an artist like Gary Granada, be a taxi or jeepney driver, put up a barber shop or barbeque stall or a carinderia or sari sari store, etc etc. No one puts a gun on people to become employees forever.
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See also:

Friday, July 06, 2012

Weekend Fun 36: The Karl Marx Mastercard

Last Tuesday, I posted this link and photo below, with this note:

"From each according to his ability, to each according to his need. For everything else, there's #marxcard" :-)

The Karl Marx MasterCard Is Here. It Needs A Tagline.

The German bank Sparkasse Chemnitz recently launched a Karl Marx credit card. The bank let people vote online for 10 different images, and Marx was the "very clear winner," beating out a palace, a castle and a racetrack, among others. Reuters has moreon the story.


http://www.npr.org/blogs/money/2012/06/15/155106232/the-karl-marx-mastercard-is-here-it-needs-a-tagline?sc=tw

The comments from some of my facebook friends were wacky, below.
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Anne Leslie  This is so not Karl Marx! What happened to Dialectical materialism?

Nonoy Oplas Purchase by credit is dialectics while using the purchased commodity is materialism :-)

Joel  ‎"Social is as credit does. #marxcard You never know what you could live through." LOL

Jules You have nothing to lose but your consumption constraints. #marxcard @planetmoney

Nonoy Credit lovers of the world, unite! You have nothing to lose but your cash tomorrow.

Ernesto just appropriate for any socialist government surviving on credit.

Anne Leslie ironic! this is a good example how capitalists creatively commodify Karl Marx! I'd like to have one though! haha!

Nonoy  Socialism is good until you run out of other people's money.

Ernesto For sure all collection agents are barred when cardholders default. There is a Credit Clause: "We Simply Owe it to Ourselves."

Nonoy  Abolish all private property. Expropriate the expropriators. Impoverish the rich banks, use the Marxcard.

Elizabeth Max out the Marxcard.

Nonoy  When you're financially red, that's what you need, Marxcard.
‎Das Kapital or short of kapital, you need the Marxcard.

Todd  You people laugh away but only 1000 rewards points and the Che shirt is mine! ;-)

Gilbert That's Capital! or DAS Credit?

Nonoy  Shopping on credit is the opium of the people. They need the Marxcard.

A spectre is haunting Europe -- the spectre of Marxcard proliferation.

Capital is dead labor which, vampire-like, lives only by sucking living labor. Marxcard will provide the standby battery should labor fights back.

The history of all previous societies has been the history of credit struggle. Marxcard would have solved such struggles.

The theory of communism may be summed up in one sentence: Abolish all cash and replace them with the Marxcard.

Let the ruling class tremble at a Marxcard revolution. Shoppers have nothing to lose but paper bills and loose chains.

Happy Weekend.
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See also:
Weekend Fun 31: Filipino Shop Signs, March 17, 2012
Weekend Fun 32: Angry Birds, Angry Taxpayers, March 24, 2012
Weekend Fun 33: Government Welfarism Moolaah, May 06, 2012
Weekend Fun 34: Greece to Become a Social Network, May 19, 2012
Weekend Fun 35: Miriam D. Santiago is Cute, June 03, 2012
Weekend Fun 35: Miriam D. Santiago is Cute

Tuesday, February 28, 2012

Pilipinas Forum 26: On State-Party Relations

Although I have stopped being a Marxist-socialist by early 90s, somehow I still have some "hang-over" on some Marxist concepts until early 2000s. Here's one such discussion a decade ago, on the relationship between a political party and the state. This is 7 pages long, enjoy.
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State-Party Relations

January 2001

Nonoy, et al, Sometime ago I curiously read an article about certain communist intellectuals (not identified) talking about the time when there will be "separation of Party and state" ... just as the separation of church and state in capitalist countries.

They'd mean that the Party would just exert ideological influence and persuasion, not state or police power, to groups of individuals vying for public office over state policies and welfare.

If such were to happen and together with a genuine Bill of Rights, such socialist countries like Vietnam and China would not only catch up but even outdistance western countries. By then there would be a global convergence: social democracy (of the east) = democratic capitalism (of the west).

- Roy Picart

Roy, My understanding of state-party relations is:

(Pol.) Party - defines & explains the policies to the people, must aim to capture state power to implement said policies;

State - implements policies of the victorious pol. party. Though often in multi-party countries, the victorious pol. party enters into alliances with other smaller pol. parties to get majority seats in the legislature and to broaden its mass base and support. But in one-party states like China, Vietnam, N. Korea and Cuba, no need for party alliances as the opposition is always weak.

So in this definition, party-state separation of function is inherent in multi-party states. Such separation of function is also possible in one-party, communist governments. In slowly-democratizing communist govts. like China and Vietnam, state leaders and bureaucrats are not entirely accountable to their respective communist parties but to the general population, majority of whom are not party members. State leaders are striking a balance between their party (which is generally allergic to drastic reforms) and the general public (who want fast, wide-ranging economic liberalization and political democratization).

On social democracy, these are essentially the democratic capitalist states of the west at the moment. Specifically, the welfare states of Scandinavian and Western European countries. These capitalist countries sometimes turn off capitalist enterprises because of the high taxes which their govts. collect to give to the jobless (sometimes encouraging laziness), the sick, to subsidize their farmers, etc.

The convergence that you mention is actually happening now: capitalist countries that act like socialist states, and socialist countries that allow predominance of capitalist enterprises. Vietnam is a socialist country, but the streets of Hanoi, Saigon, Hue, etc. are full of tens of thousands of capitalist enterprises. China is a socialist country but Shanghai, Shenzen, even Beijing, are full of capitalist shops and firms.

Someday, ideologies will become good academic subjects in the schools worldwide, but they will lose their original spirits. They will soon converge with one basic ingredient that unifies their aspirations: information. Information will uplift world economies, substantially reduce poverty as we know it today. But information will never be made perfect for everyone. Just as the next guy has discovered his neighbor's "trade secrets", this neighbor has already developed a new product or service that is far superior to the one that was discovered by his competitor.

- nonoy

Dear Noy and Roy and All:

State-Party Relations:

Classical Marxism situates the relations between state and party within the framework of socialism as the class rule of the proletariat, and socialism as a transitional phase before society could progress to classless and stateless communism. State and party relations also relate to the conept of the "withering away of the state." The classics, in fact, may provide signposts in understanding the remaining socialist experiments.

The basic theoretical postulates on this matter may be outlined as follows:

a) Capitalism is an arrangement of social classes with the bourgeoisie exercising political hegemony over all the others, through the capitalist state;

b) The socialist revolution destroys this hegemony and transfers state power to the proletariat. Hence, Lenin defines socialism as "the dictatorship of the proletariat" or "the proletariat organized as the ruling class";

c) The immediate function of the socialist state is to preserve the dominance of the proletariat, and to serve as the coercive instrument of the the working class. This coercive role means defending the Communist Party and defeating its class enemies, since the CP is the repository of the will of the ruling class (the proletariat). Note that the socialist state, as with all other states, remains a coercive organ of power, existing within society but also above it;

Tuesday, August 30, 2011

Pilipinas Forum 3: Is Marxism Still Relevant?

These are the exchanges in pilipinasforum@yahoogroups that I edited, posted in inq7.net in March 12, 2001, 11 pages long. These discussions were made in February 2001.
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Is Marxism Still Relevant?

Popoy represented the largest organization with a definite ideology in calling for a socialist
Philippines. When he and his group splintered from Joma Sison's CPP-NPA-NDF sometime in 1993, Popoy had at least 4 reasons for doing so:

(1) They reject the "semi-feudal, semi-colonial" mode of production analysis of Joma and the CPP. (2) Hence, they also reject the "national democracy" goal. (3) They reject the Maoist formulation that "the peasants (not workers) are the main army to change society" and that of "encircling the city from the countrysides", and (4) Corollarily, reject that "armed struggle is the primary form of struggle".

Instead, when Popoy and his team of underground people from the Metro
Manila-Rizal Regional CPP Command, the explicit formulations are as follows:

1. The Philippines' mode of production is "predominantly capitalist".

2. Hence, the goal should be socialism, not "national democracy" ("national" meaning anti-colonial, "democracy" meaning anti-feudal).

3. The workers (don't own means of production, whether capital, factories, land, technology) are the main army to change things, and urban insurrection is the way to capture state power.

4. Other forms of struggle should be tapped to complement the armed urban struggle (Hence, Popoy and his group then advocated to participate in the 1986 snap elections, whereas Joma and the CPP called for its boycott).

Between the two, Popoy is more sophisticated ideologically than Joma Sison. I would even add that Popoy read and understand classic Marxism and Leninism literature better than Joma and his followers. The ideological debate and organizational rivalry between the 2 largest factions of the Philippine left has somehow worked for their mutual advantage and the workers in general. Just like big corporations benefiting from having fellow big competitors because they all strive to be more dynamic and innovative. How?

Organized workers have more options where they will be organizationally and ideologically affiliated. Before, it was only between the moderate TUCP and the radical KMU, plus other smaller independent labor federations. Popoy's BMP (bukluran ng manggagawang pilipino) represented a 3rd or 4th option for the workers. Just like businessmen and capitalists have options whether they'll be more active with PCCI or MBC or FPI or Rotary, etc.

Second, workers should be given the opportunity to be educated of the socialist alternative, and not just the nat-dem goal. The capitalists and politicians of this country for many years have veered away from the Adam Smith and David Ricardo type of capitalism, so they (the capitalists) gave workers a really bad kind and experience of capitalism. Perhaps approximating the capitalism of the Industrial Revolution in
Europe. At the time when Marx called religion "the heart of the heartless world, the soul of the soulless conditions, it is the opium of the people." (though rabid anti-Marxists only quote the last line and omitted the first 2 lines).

Where to, Philippine left? Despite my sympathy and admiration for their hard dedication to politicize and mobilize people, especially the really poorer sectors of our society, I still cannot subscribe to their sentiment that we should immune or delink our economy from globalization and the world economy, that we should keep the protectionist veil and continue regulating many of our industries and the economy, that we should not privatize subsidy-dependent state corporations, etc.

Thus, since I believe that economic liberalization and not protectionism and regulation is the way, and the Philippine left (& the left elsewhere in the world) believe otherwise, I think the Philippine left will remain as a significant political voice in our society, but there's no way that it can seize state power to implement its protectionist advocacies.

--Nonoy Oplas





Nonoy, could you expound more on the leftist agenda? What exactly do they want? Go down the road of North Korea or Cuba? Do not the events in Russia and China discredit the case for Marxism, Leninism or Maoism as the case may be? I am guessing that their ideology was formulated in the 70's - do they account for sweeping changes in technology such as the internet? There are more Filipinos working abroad (5 million I think) versus those in Philippine Manufacturing (about 2 million I think) so what is their role in this workers rebellion.

How does that one go, "The path to hell is paved with good intentions" - socialism and communism do have their appeal but outside the Israeli Kibbutz I cannot see real sustainable successful models.

-- Victor A. Limlingan Jr.


Wednesday, September 01, 2010

Inequality 2: To Each According to his Needs...

When I was still a Marxist-socialist in the 80s as an undergrad student at the University of the Philippines (UP) Diliman campus, and later as a working professional, I was enamored by a number of beautiful quotes from Karl Marx.

One such quote, referring to social allocation of resources, was:
To each according to his needs,
From each according to his ability.
It was a powerful, dramatic and inspiring formulation for activists who were fighting for social equality, the eradication of mass poverty and exploitation of workers.

But I have left the Marxist and socialist philosophy almost 2 decades ago now. And more so in recent years when I embraced the free market, individual freedom, and limited government philosophies. Why?

      "To each according to his need".

Because need is unlimited, and that's where problems and social conflict arise.

Take healthcare. A couple with a terminally-ill child or spouse or parents, or someone who got lung cancer due to heavy smoking, or got liver cancer due to heavy drinking, or bad hypertension due to unhealthy diet and sedentary lifestyle, will demand that "health is a right, quality healthcare is a need". But if the disease will require very expensive medication and treatment costing xx thousands or million pesos, then the "each according to his need" formulation will go against nature. That we should not die early regardless of our biological, physical and economic conditions. That the state should use its coercive power and resources, to confiscate money left and right from the healthy and hard-working, so the sick and those irresponsible about their body will survive.

Inequality is necessary to allow people to excel and to penalize the lazy and irresponsible. If inequality is outlawed, then we can all demand that we should be equally rich as our wealthy neighbors and friends, even if we do not work as hard and as efficient as the wealthy guys. We can demand that the state should strengthen its income tax collection capacity, to confiscate as much income from the rich and hard-working people as possible, so that the state can redistribute that money to me and other less hard-working people.

The second line of the above formulation,

    "From each according to his ability."

If "need" will be unlimited and overstated, then "ability" will be limited and understated.

In a society characterized by socialized production and collective or state ownership of the means of production, one factory that produces manufactured and processed food has one of its important machines conked out. The machine mechanic may call in sick or pretend not to understand and repair a new machine breakdown. Remember, there is general equality of wages. The salary of the most unskilled or the most unproductive employee is not far from the salary of the most skilled employee. The factory boss, obviously with high salary because he is a party member or official, will call in the alternate mechanics.

The latter may be industrious initially because of possible promotion at least in position and prestige, but may soon realize that they will be called in everytime a machine conks out which sometimes requires overtime work or weekend work, with no corresponding increase in salary or bonus as inequality is frowned upon.

The alternate mechanics will soon adopt the attitude of the original mechanics. And soon, the factory will have diminishing food output; and soon, people will have fewer food supply and may face rationing of certain processed food.

In this case, there will be social equality. People will be equally poor and starved, except the (socialist or communist) party officials, of course.

That is the likely result of "From each according to his ability."