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by AmericanChopper
2324 days ago
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All economies are made exclusively of economic actors (which include every single living person) making resource allocation decisions. This is the basis of every conceivable economic system, including no system at all (which would just be the ultimate free market), and socialism (which is just a system where resource allocation decision making is taken away from individuals, and placed in the hands of a central authority). These resource allocation decisions include decisions that have no relation to money, and decision to allocate a finite resource is an economic decision, including decisions to devote time, effort or attention to something. Wanting topic of passion to be excluded from this system defies the laws of nature itself. However, I’ll assume that you’re taking the (ironically ignorant) position that economics is only about money. Even then the idea that “I wouldn’t want to derive value from things that I’m passionate about” or that “I wouldn’t want to provide value to those who produce things I’m passionate about” just completely defies any sense of reason. |
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All economies are made of people, some of whom do not make resource allocation decisions (because they are unable to or prohibited). I see no reason to start talking in terms of the population of an economy rather than other factors first. Marx, for instance, used property and classes, because he noticed that individuals are born into pre-existing situations, as defined by the class and property structures of the day, and they do not shape the world freely as they see fit. It takes effort to individuate.
> including no system at all (which would just be the ultimate free market)
The "ultimate free market" very clearly has a "system" - it has private property rights, separation of the labourer from the product she makes during the production process, the majority of labour being waged labour, and the general economic goal of capital accumulation. If the free market really meant "no system", but still a reality, then we would have observed it in the most basic societies. Anthropologists have found no evidence of that claim.
>which is just a system where resource allocation decision making is taken away from individuals, and placed in the hands of a central authority
No political philosopher uses this definition; most forms of socialism (theoretically, anyway) are democratic, in which allocation decision making is given to the people, to a higher degree than it is in a capitalist society. Finally, in such a system, individuals have the greatest degree of control over capital, not just labour allocation (through which capital is influenced only directly).
>and decision to allocate a finite resource is an economic decision, including decisions to devote time, effort or attention to something
It is not purely an economic decision, it is also a moral and practical one. Only the economist, strangely, conceives any and all time as a pure "resource" to be allocated around. The view that activity is equal to allocation of finite resources ignores the reasons why people actually perform various activities. Sure, you could subsume every motivation into allocation of finite resources, but the physicist could go further and subsume every interaction into the interactions between atoms. Why should I (or anyone) prefer your level of abstraction rather than saying it is too restricted (e.g. as the physicist would say) or saying it is too wide (e.g. as the sociologist would say)?
>Wanting topic of passion to be excluded from this system defies the laws of nature itself.
Marx noted in the 19th century that economists, like the priests, have a preference for speaking of their ideological view as "natural law", that previous systems were "unnatural", that future possible systems are "unnatural". He realized that this tactic ensures that nobody can question the foundation of the concepts (atomistic individualism, Hobbesian warfare, resource allocation, the origin of money, capital, power, property) since that would be to question "nature" itself.
>just completely defies any sense of reason.
It defies purely economic reason. Today we see many people and hobbyists taking such an "unreasonable" stance, from charity and open source workers to musicians. People, as it turns out, are not rational economic actors (the "resaon" you speak of is a prescriptivism from neoclassical economics), nor do they judge their time as a resource ("time is money" is a mantra that only seems to apply during the business day). There is no evidence that counting time primarity as an economic resource was prevalent in previous societies.
On that note, unless you're monetizing the time you spend posting on HN, you are completely defying any sense of reason. Either that, or you can tell me about your spreadsheet of resource allocation for your day down to the hour by the time you next make a comment, and the calculated opportunity costs associated with each hour.