I used to be very confused about economics until I went back and
reconsidered our base assumption about the supposed 'need' to
perpetuate profit.
Since profit *requires* scarcity, there is no possible way we can have
both profit AND abundance. They are mutually exclusive.
It may seem that any owner must keep price above cost for it to be
'worth' the investment, but there is actually one case where the
investor can be paid in *product* instead - leaving us to find a new
purpose and destination for that surplus value.
Furthermore, this special Mode of Production I allude to also solves
the supposed 'need' to perpetuate work.
Edward, are you willing to reconsider the treatment of profit for new
businesses we create, or would you say there is no room for movement
there?
Sincerely,
Patrick
Maybe that is your point. Maybe that is the point of most people
here. But it is not mine.
We can avoid "global rent-seeking which creates unfair balances of trade
in the favor of elite special interests." even while accumulating
capital *IF* we choose to create new businesses that treat Profit as
an investment from the Consumer who paid it - instead of treating it
as a reward for the current owners.
Ownership is not the problem.
The problem is the mistreatment of Profit.
> There was talk about
> consumer unionism in a previous post, and that is a good way to fight
> this that is under-utilized, but post-scarcity modes of production
> really hit at the core of the problem. http://ieet.org/index.php/IEET/more/miller20080107/
Are you saying "Consumer Ownership" of the Means of Production is not
a Mode of Production?
If so, why?
> Perhaps eventually the idea of profit will then be voluntarily
> discarded,
Capitalist owners will always do the wrong thing with Profit (treating
it as a reward for themselves) unless we write a Terms of Operation
for a new business that will treat that "price above cost"
differently.
Much like the GNU GPL, we need a contract to apply to Material Means
of Production.
But just as the GNU GPL requires an 'owner' who uses Copyright as a
legal foothold, we must purchase to become owners who can then use
Property Rights to begin.
> but even with a less optimistic assumption that sees things
> like land and certain scarce commodities still remaining market-based,
> it can still look pretty good.
We can and should use a 'market' - in that we want trade - even while
we treate Profit in a GNU way.
This can also apply to land if we collectively purchase enough to hold
as a semi-sovereign City that can then readdress the property-tax
issue along the lines of Henry George's single-tax.
> Capital-intensive industries are another place where it will be hard,
> but not impossible, for open source to break through. Microprocessors,
> nanotechnology, space technology, nuclear energy, etc. All these
> things require huge investment. There have been some efforts at open
> source designs for microchips, but that is hardly the profit-free
> world you are talking about.
We cannot hope or wish or picket or anything of any consequence unless
we choose to purchase and OWN some Physical Sources of production
under a contract as I have described.
No current Capitalist corporation will choose to do this on their own.
We must become the Free Hardware movement that addresses the
difficulties of co-ownership of the Material Means of Production, and
not just the designs for such things.
> What you are talking about is Marxism.
I thought Marx wanted the Workers to be the Owners, not the Consumers.
Are you saying there is no difference?
> You are talking about
> collective ownership of capital and profit-less Modes of Production,
Actually, I don't say Consumer Ownership is "profit-less" because,
since it will always be in transition (for instance when a new
Consumer wants a product in which he does not yet have enough
ownership in the Physical Sources of Production to cause that product
to be "at cost").
Profit is a measure of scarcity, and can also be thought of as a plea
from the Consumer for his own property that can then be used to secure
his needs.
We should charge non-owning Consumers any profit "the market will
bear", but then must treat that overpayment as their investment toward
*more* Material Means of Production. That way, each consumer
incrementally gains ownership and control of the Physical Sources
needed to sustain them.
> Now, perhaps when the space in which capitalism operates is very
> small, collective ownership will be feasible
How strange that you (and most anyone I talk to) seem to think Capital
cannot be co-owned when the Capitalists are already doing that!
Ownership is certainly achievable; isn't every Corporation on Earth
already Owned? Why are we so scared of property ownership that we
think it cannot be approached?
Consumers already pay ALL costs of production - including paying of
any initial investments, all upkeep, all wages, all input materials,
all energy, EVERYTHING!
Consumers also pay the price above cost called Profit, but that
surplus value is kept by current owners - swelling their pockets and
control. It's obvious to me that is the cause of Capital
overaccumulation and centralized control.
> In the short run, I don't see it happening, but I do think there
> is a place for the state to encourage open source production.
Oh brother, there is no way the governments can help us, for they
already work for the Corporatists who strive for scarcity.
> examples include prizes (to incentivize production of alternative
> energy, automation, cultured meat,
Nasty! Why not organize Consumers to collectively own a group of beef
cattle or a chicken farm, etc. instead of turning to fantasy?
> decentralized solutions) and tax
> breaks (to compensate for positive externalities). Other examples
> include stronger overtime laws to shorten the work week and a Basic
> Income to replace needs-based welfare and social security.
As though we were not already heading toward global fascism fast
enough, you hope to make us even more reliant upon the Mother
Government...
Own or be Owned!
Patrick
Externalities can be a big problem, I agree. I think this can be
solved by keeping any such industries we own at a 'local' level
instead of moving all dangerous operations somewhere else.
But those who are currently suffering our pollution, etc. won't be
able to resist our advances unless they organize similarly.
We each finally need ownership for our own protection. Ownership the
beginning of a military stance. Production is the basis of true
defense, but production requires property.
I agree that "maximization of output becomes the main goal" for those
who seek to keep price above cost (to perpetuate profit), but when a
special business does not allow price to be treated as a reward for
the current owners, there is no longer an incentive to overproduce,
nor an incentive to force-feed any potential Consumer.
Some people make "non-profit" corporations, so why are you so sure we
can't make a corporation that treats profit in yet another manner?
>
>> Are you saying "Consumer Ownership" of the Means of Production is not
>> a Mode of Production?
>>
>> If so, why?
>
> It is a particular mode of production, but it isn't a post-scarcity
> mode of production.
What must a MoP contain or do in order to qualify as 'post-scarcity'
in your mind?
> I'm not even sure how it work. Would the early
> consumers get huge amounts of ownership, whereas later consumers get
> diminishing amounts?
Early owners/consumers would likely own more than they need to meet
their needs/wants of consumption, while late-comers would have no
ownership whatsoever.
Imagine you buy an apple from such a special-profit corporation.
Let's say you pay $1 for the apple, yet it only took $.75 to grow,
handle, harvest, store, deliver, etc. that product.
At that point, you would receive a sort of 'receipt' that represents
$.25 investment in more land, water rights, living apple saplings,
tools, wages, etc. that are required to grow yet more apples.
Once you gain enough ownership in this manner, you would no longer be
buying apples, but instead would only be paying to cover the real
costs of production.
You would no longer purchase apples at the end of the year, for you
would have a storehouse full of apples that you ALREADY OWN. You
would need to pay costs, it is true, but you would never pay profit,
for who would you pay it to? You would not buy apples, you would
simply claim what is already yours from the storehouse you co-own with
other investing consumers.
This special corporation grows when a Consumer pays more than cost for
some product. This is the same as current corporations that "plow
back in" profits to grow the business.
The big difference is in WHO owns the growth. Instead of that
ownership being added to the current owners, it is instead treated as
an investment from the Consumer who paid it - so that he slowly,
incrementally gains ownership of *NEW* Material Means of Production
purchased in his name.
New consumers wouldn't be taking-over any ownership that is already
claimed, unless some of the current owners are interested in
selling-off some of what they don't want or need.
> You can't sell more than 100% of ownership. Stock is scarce.
Yes, that is right. The idea is to invest the surplus value into
*MORE* Physical Sources of Production - just as Capitalist owners
already do. The difference is that the consumer who paid the profit
becomes the one holding the title to that newly purchased land, water
rights, bags of seed, tools, etc.
We must grow, but must do so in a continuously decentralized manner.
>> Capitalist owners will always do the wrong thing with Profit (treating
>> it as a reward for themselves) unless we write a Terms of Operation
>> for a new business that will treat that "price above cost"
>> differently.
>>
>> Much like the GNU GPL, we need a contract to apply to Material Means
>> of Production.
>>
>> But just as the GNU GPL requires an 'owner' who uses Copyright as a
>> legal foothold, we must purchase to become owners who can then use
>> Property Rights to begin.
>
> Where is the incentive to produce in the first place if the original
> entrepreneur is not going to make any profit?
The original, and only truly valid purpose of production is PRODUCT, not Profit.
Don't you want co-ownership in a small farm so you can get "at cost"
food that is under your full dominion - even if you choose to hire
others to do that work while you haul garbage or mop floors or design
a different washing machine, or program a computer, or fix someone's
teeth, etc.?
If you are stranded on an island, do you invest time and effort for
product (such as coconuts), or do you work so you can keep price above
cost?
Even if you have a companion on that island, do you think that person
should pay you more than wage to harvest fruit?
If he owns half the trees, then you can only receive wage.
But if you own all the trees, then you can take advantage of his
dependence upon you, and charge any amount you like. This domination
is what profit is about.
> I could see people
> starting creative non-market endeavors if they have the foundation of
> a Basic Income, but we are never going to see the types of
> organizations you envision as long as people are slaves to wages...
> you gotta eat somehow.
Are you saying all people have exactly $0 to invest?
It is true there is crippling poverty in our world, but many people
could afford to pay $100 toward a cooperatively owned cell-phone
network where we could then receive "at cost" service because there
would be no external owners siphoning off Profit.
We could send text messages, pictures, audio, etc. exactly "at cost"
instead of being penalized by those owners that want to subjugate us.
> Thus, people will be too busy seeking profit
> than developing the technologies which can help free us from the need
> for it.
Why is everyone so enamored with technology? We don't need more
whiz-bang engineering solutions nearly as much as we need a GNU way of
organizing and cooperating.
>> We can and should use a 'market' - in that we want trade - even while
>> we treate Profit in a GNU way.
>>
>> This can also apply to land if we collectively purchase enough to hold
>> as a semi-sovereign City that can then readdress the property-tax
>> issue along the lines of Henry George's single-tax.
>
> How is collective ownership of land different from communism? And how
> is this collective ownership any different from State power? Is this
> collective entity consensus based? What about the people outside the
> community... are they taken into consideration, or can we unload our
> externalities on them?
These are very important questions that will take quite a bit of time
and effort to explain.
By 'communism' do you mean "state-run communism"? If so, this is
different in that the control of each parcel is held by private
individuals instead of by some faceless state.
I need to talk here about the rights to secede, and the
binding/fasctening effect that improvement-punishing taxes cause - and
especially in the way taxes are collected beforehand into a big
slush-bucket that are then doled out by a well-intentioned committee
that can never do better than Majority Rule.
We need to be able to pay only for those things we want, and to be
able to completely avoid funding any initiative that some damned
committee "sees fit" to go forward with.
This can be accomplished by simply getting out of the way, and
allowing people to afford to own land and capital which they can then
fight over how they will share.
There is more to be said here, but I am losing concentration...
>> I thought Marx wanted the Workers to be the Owners, not the Consumers.
>>
>> Are you saying there is no difference?
>
> Yes.
You are saying a small group of farm Workers Owning an enormous farm
capable of feeding thousands of Consumers is EXACTLY the same as those
thousands of Consumers Owning that farm?
One thing that is different is that the Consumers are at the mercy of
those Worker-Owners, and cannot stop them from poisoning their food in
various (well intentioned) ways.
Another thing that is different is that the Consumers must pay Profit
to the Worker-Owners, yet if the Consumers were the Owners, Price and
Cost would be the same (except for late-coming Consumers who must then
pay Profit until they gain sufficient ownership to protect themselves
from it).
>> How strange that you (and most anyone I talk to) seem to think Capital
>> cannot be co-owned when the Capitalists are already doing that!
>
> When I said collectively owned, I meant everyone. Capitalists only
> make up a small portion of society. Collective ownership implied
> everyone is an equal owner.
Solving this problem through ownership is something that is not instantaneous.
At first, there will only be a very few people willing to invest in
this way, so the number of owners in the GNU system will be very
small. This is how Richard Stallman started too.
But, if the system is more efficient than Capitalism, then it will
grow because we will be able to under-cut them.
The reason we can keep price lower than a for-profit corporation is
because we don't *rely* upon keeping price above cost.
Consumer-Owners invest for Product, and so Profit is not important to
them - it is simply a sign that there are late-coming consumers that
are willing to pay more than cost because of their current lack of
ownership.
Late-coming Consumers will cause it to grow through their overpayments
of Profit which will be invested, but those investments will be THEIR
property.
>> Oh brother, there is no way the governments can help us, for they
>> already work for the Corporatists who strive for scarcity.
>
> They work for whoever is pushing the hardest, and furthermore, I don't
> think the capitalist interests are always necessarily at odds with
> this stuff.
Capitalism is at odds with abundance because Profit requires Scarcity
and Abundance destroys Profit.
> radical proposals to abolish
> private property and form collective ownership are doomed to failure
> (whether it is labor-based, consumer-based, or any other supposed
> vanguard group)
If you are saying I propose to abolish private property, then I must
tell you that is not my goal - nor do I have enough Federal Reserve
Notes to purchase such legislation even if it were my goal.
We need privacy, and I see normal single-owner property as an obvious
solution to that.
But we also need to learn how to co-own some property. The only
difference I propose there is to write a contract that some initial
investors can apply to some Physical Sources of Production such as
land, water rights, living organisms, tools, etc. so they can have "at
cost" access to the Outputs of those Sources, and also so they might
have full dominion over their own life without resorting to the almost
useless practice of begging current owners to do what we want.
Sincerely,
Patrick
Oh, I didn't realize they were treating profit as an investment from
the consumer who paid it!
Thanks for letting me know, I didn't think such a treatment of profit
had yet been attempted.
> That is why GNU was a success, because the technology of
> the Internet facilitated such decentralization.
So the requirements that copyright holders enforce through the GNU GPL
had nothing to do with it?
I had this notion that the GNU GPL requirement that every Object User
gain "at cost" access to the Sources had an impact, but maybe you are
saying it would have worked even with Public Domain and BSD type
licenses?
> Patrick Anderson wrote:
>> What must a MoP contain or do in order to qualify as 'post-scarcity'
>> in your mind?
>
> One in which scarcity doesn't exist, like with your idea that some
> people will get lots of stock in a corporation and others won't. This
> whole scheme still inherently favors the people who already have a lot
> of cash to consume with.
Oh, now I see, your plan is to eliminate scarcity instantaneously,
while my incremental plan starts very small and slow at first -
intending to grow within the current situation.
> Also, what is to stop someone from saying, "I
> own most (or all) of the stock... you now all have to pay me profit if
> you want the goods."
The "contract" or "Terms of Operation" (which I need to finish
writing) will prohibit such behaviour - especially since the ownership
will be necessarily diffuse because of the way treating profit as
user-investment splinters property over a number of consuming owners.
The number depends upon the size of the operation - which will vary
depending upon what each group feels is most appropriate or efficient
for them.
On the other hand, if the majority of owners of any specific factory
or farm ever want to remove the contract, it may be for the best that
they are allowed to do so, though I agree this may be an area of
'attack' that we may need to guard against through the wording of the
contract.
>> > Where is the incentive to produce in the first place if the original
>> > entrepreneur is not going to make any profit?
>>
>> The original, and only truly valid purpose of production is PRODUCT, not Profit.
>
> The survival incentive is not enough.
I am becoming convinced that I am the only person that would ever
understand this well enough to begin. I blame my poor communication
skills for that.
But once I have enough money to start a small restaurant, the only
incentive people will need is the lower prices I will be able to
offer.
Receiving tiny titles of ownership on each receipt (whatever amount
they paid above cost) will also be a benefit, though few will
understand the importance of that at first.
> People measure their success
> relativistically. People want more than the next guy.
I guess I'm not a people.
> That is what
> encourages big risk taking and has driven much of the innovation we
> have seen throughout history thus far.
Maybe we can use cooperative risk taking instead.
Maybe we can convince big groups of consumers to pre-pay toward some
"at cost" good or service that they would then both OWN and CONTROL
because they would be the literal property owners of those Material
Means of Production. Wahooo!!
>> Why is everyone so enamored with technology? We don't need more
>> whiz-bang engineering solutions nearly as much as we need a GNU way of
>> organizing and cooperating.
>
> Because we are never going to see that profit-less, decentralized
> innovation I was talking about without technology and social policies
> which inherently foster it with their incentive structures.
Social policies? What are those?
>> I need to talk here about the rights to secede, and the
>> binding/fasctening effect that improvement-punishing taxes cause - and
>> especially in the way taxes are collected beforehand into a big
>> slush-bucket that are then doled out by a well-intentioned committee
>> that can never do better than Majority Rule.
>
> You can't get around the idea of collective taxation.
But we can do it differently. There are many ways to share physical
resources that have not yet been tried.
> You can
> decentralize security to some extent with sousveillance, but we will
> need centralized authorities for the forseeable future.
Blech.
>> We need to be able to pay only for those things we want, and to be
>> able to completely avoid funding any initiative that some damned
>> committee "sees fit" to go forward with.
>
> That is exactly what happened in the Kibbutz movement, and that is
> exactly what would happen in the shareholder meetings of the society
> you envision... and of course, who cares about the stakeholders.
What is a stakeholder as compared to a property owner?
I'm talking about property ownership, not meaningless 'membership'.
>> Late-coming Consumers will cause it to grow through their overpayments
>> of Profit which will be invested, but those investments will be THEIR
>> property.
>
> The people with more property rent-seek in order to gain unfair
> advantages against those with less property. Your system will revert
> to corporatism in the blink of an eye, especially without democratic
> oversight you seem to shrug off.
Are you saying a corporation cannot define how profits will be used?
If so, then how do you explain the existence of non-profit corporations?
>> If you are saying I propose to abolish private property, then I must
>> tell you that is not my goal - nor do I have enough Federal Reserve
>> Notes to purchase such legislation even if it were my goal.
>
> In classical political economy, private property has a very specific
> meaning and it is distinct from personal property. The idea of private
> property is that you can own capital via voluntary exchange, even if
> you aren't personally near it or using it. Capital is profit-producing
> resources.
Ok, then I'm talking about 'Personal' property for privacy, and
'co-owned' property for things people choose to share.
We can use regular property ownership as the basis of each, but
co-ownership needs a further constraint that profit be
user-investment.
> Your idea, on the other hand, is that only the users can own it,
Well, not all users (consumers) would own instantaneously, but that is
the goal, yes - for we are all consumers.
> and no profits are supposed to be sought.
Actually, I want non-owning consumers to pay a bit of profit, but
since I will treat that payment as their investment, it's as though
I'm coercing them into investing in their own future, and because of
their ownership, my ability to charge profit will slowly fade - as it
should.
> That is called.... communism.
Oh, I thought a faceless 'State' owned everything in Communism.
> Many communists and anarchists speak highly of personal property. Of
> course some may say that the people can democratically decide to
> redistribute it... but honestly that would happen in your shareholder
> meetings too.
I don't understand what you are saying here.
> You are talking about communism. Why can't you see that?
> If you are talking about communism, don't hide it and speak about it
> openly and defend it as such. If not, perhaps reconsider your position.
Well, if by 'Communism' you each person has the opportunity to co-own
individual enterprises with other people of their own choosing -
without regard to any external entity except in cases of border
disputes and negative externalities, and probably a few more things I
don't yet understand, then yes, I am a Commonist.
Love,
Patrick
But that is doing it wrong.
If we were organizing correctly, then all stakeholders would BE
shareholders in the exact ratio in which they have a stake.
> Yet, there are numerous other cases where the stakeholders have no
> real say because of the collective action problem. Take the patenting
> of the human genome as well as the genomes of other species, for
> instance.
Are you saying I should respect the patenting of my DNA?
Bah! We must organize to become strong enough that we can resist the
enforcement of such tyranny. We need to OWN enough land to become
productive enough that we can finally begin producing tanks and
missiles to stop anyone trying to stop our freedom and sovereignty.
>
> The social policies I was referring to were the ones I already
> mentioned which should incentivize post-scarcity models. I don't like
> repeating myself.
> http://ieet.org/index.php/IEET/more/miller20081123/
I already read your pleas.
What makes you think the government officials will listen to you when
they are already employed by corporations that seek scarcity.
You do not have enough Federal Reserve Notes to purchase any
legislation, that is why I don't take that route.
>
> It is true that licensing strategies such as copyrights or the GPL can
> be effectively upheld, but only because it is backed by a state
> authority. Your whole system requires such state authority to be in
> place, and for such a state authority to deem such contracts
> legitimate. This requires a centralized body that commands a monopoly
> on force and uses this to extract tax revenue towards the enforcement
> of the laws that uphold contracts, etc etc... aka a State. That means
> large pooling of taxes towards common purposes. That means at minimum
> messy democracy, bureaucracy, and special interest wrangling... all
> the things you despise.
Why are you allowed to use a "state authority" DIRECTLY in your plans,
and yet you say I'm not allowed?
Is it because you think I would be a hypocrite? I don't give a damn
if you think I'm a hypocrite. I'll play both sides for as long as it
takes. RMS doesn't like Copyright, but he is smart enough to utilize
it AGAINST those scarcity seekers that created it.
I will do the same with Property Rights with a sort of Property Left contract.
>
> Political power in the Modern world comes from legitimacy. People who
> are perceived as the legitimate owners or leaders can change the rules
> as they see fit, because other people respect their authority and thus
> they command the strength to enact their will upon others.
> In your system, especially without state enforcement,
I will have state enforcement because I will be using regular property law!
> it could very very
> easily become corrupted since it relies so heavily on everyone else
> buying into this same value system rather than simply following
> incentive structures.
The incentives will be lower prices, local production and full dominion.
> Think of all the republics over the years that
> have been morphed into dictatorships.
> How can you possibly prevent that without state power
I won't. I will utilize state power to enforce property rights.
> if some people decide that they want to make
> profit and other people respect them as the rightful chairman/majority
> shareholder/whatever?
This is solved by insuring any subgroup can secede at any time - so
when some overlord tries to pin us down, we will just let him take his
portion and go away.
>
> Furthermore, you have provided no evidence that this can undercut
> capitalist modes of production.
Capitalism requires owners keep price above cost.
A Consumer-Owned corporation has no such requirement, so we can offer
product "at cost" for as long as we like - though that would cause
growth to stop during that period.
> Capitalism employs all sorts of
> efficiency maximizing strategies such as economies of scale and
> comparative advantage.
Why can my system not scale? I've already told you how it will.
I don't mind repeating myself.
> Your system by no means provides that
> incentive... it merely provides a "production for survival" incentive.
> There is absolutely no incentive for your system to devise something
> like, say, Wal-Mart... and thus Wal-Mart will always have lower
> prices... always.
But War-Mart charges a price above cost. This value leak is called
'profit', and pads the pockets of the Walton family.
>
> ...unless.... you can change the rules of the game via disruptive
> technologies which pave the way for new modes of production.
So we need more robots?
>
> Can we kindly return to the topic of the original post in this thread,
> please?
Ok, in the original post you say:
> In summary, if we create a more sustainable financial climate, and
> more frugal and ecologically aware culture, and as we run out of new
> markets, I think it is more likely than not that we will experience
> massive unemployment.
But employment itself is not a *need*. Work is a cost to be reduced
on our road to leisure.
This confusion arises because we don't recognize the consumers must be
the owners of the Means of Production. In that case, work can safely
be minimized.
If just you and I were on an island and were able to automate all of
our work away, would we be in trouble because we then had too much
leisure?
>
> Peace
Peace requires Abundance, yet Abundance destroys Profit.
So which will it be, Peace or Profit?
> disputes and negative externalities, and probably a few more things I
> don't yet understand, then yes, I am a Commonist.
>
> Patrick
I love this one, Patrick. Really. It puts in the center the commons as
legitimate form of ownership. Legitimate enough that people can actually
now identify themselves as its supporters. The first step to a meme is to
give it a name. I'm a commonist myself. Your consumer ownership idea sounds
to me like a way of building a commons.
By the way, I am Roberto Verzola from the Philippines. I wrote a piece
Undermining Abundance
(http://rverzola.files.wordpress.com/2008/11/verzola-on-abundance1.pdf)
which seems to have earned me an invitation to join this list.
Greetings to all,
Roberto
I've written alot about this, but have trouble getting it laid-out in
a completed manner.
That is part of the reason I bug people (sorry Edward) so much --- I'm
trying to find out why this isn't already understood and utilized so I
can further hone my communication.
I know it isn't actually obvious, but then again, in some ways it so
simple I'm astounded it isn't. On the other hand, there are also
probably many intricate details about dispute resolution that will
require years of consideration (many versions of the contract) to
insure 'correctness'.
I really view it as a form of scheduling/allocation just as the kernel
of a computer Operating System must share physical sources among many
processes - except this kernel is enforced as an inter-owner agreement
that any two or more processes (persons) can use to co-own (and
therefore co-control) any physical resource that is otherwise too
expensive or even meaningless to own singly.
> Has it been tried
> successfully somewhere? (How different is it from turning firms into
> consumer coops?)
All the consumer cooperatives I'm aware of (surely there are more)
don't treat Profit as Consumer Investment, and therefore slowly move
away from being truly Consumer Owned since new Consumers do not gain
Ownership according to their overpayment. This causes centralization
and general profit seeking until these organizations finally differ
little from regular for-profits or from the nearly as problematic
non-profits.
The idea that Consumers should have Ownership is not my invention.
The earliest paper I know of is at
http://FAX.libs.UGA.edu/HD3271xG453/1f/consumers_coop_societies.txt
I think of Richard Stallman's call for User Freedom is really the same
thing - though only in the virtual realm.
The GNU GPL requires: When Object code is distributed, the new User
must gain "at cost" access to the Source code.
The analogy I've drawn is: When an Object (good or service) is
distributed (sold or traded), the new User (consumer) must gain "at
cost" access to the (physical) Sources of Production.
> Someone here says he doesn't know how it works. I don't
> either.
I'll start another thread to try to clear things up.
I discuss this important issue in this piece published a few years ago:
http://www.scu.edu/sts/nexus/summer2005/VerzolaArticle.cfm
I identified at least 4 ideological biases built into the Internet and
ICTs:
1) the English tongue and the Anglo-Saxon taste that comes with it,
2) automation -- that we should keep replacing people with machines
3) the technofix -- a more general version of (2), that technology will
solve all our problems
4) a strong bias for globalization through subsidies built into the
technology itself.
I can even detect these strong biases in some posts here. I look forward to
the journal to debate these things.
Roberto
http://groups.google.com/group/openmanufacturing/msg/b9d6f3b894f18535
I am behind in this thread, so must be brief:
Edward Miller wrote:
> The genius of the GPL has
> nothing to do with the mandate that source code be provided at cost.
If the GNU GPL did not require the source code be provided at cost,
how would it be any different from a binary-only 'Freeware' license?
> Simplified models of abundant environments
I've been thinking over the weekend about this. Here are my
scattered/incomplete thoughts:
The scenario begins with a handful of people stranded on an island in
a salt-water ocean... The island represents our Earth.
There is plenty land and the seafood for them (so we can eliminate
those complexities for now), but there is only one source of fresh
water in the middle of a very stinky swamp swarming with biting
insects. The water is the Sources of Production.
Anyone reading this would probably assume that each person should have
equal rights to his portion of the water. If there are 5 people, then
each has the 'right' to 1/5 of the water. In my thinking, the 'right'
to some thing and the 'ownership' of some thing are in the end the
same thing.
Ownership as we think of it today is not quite the same when the group
is so small, but what if there were 500 people? What about 5,000 or
50,000 or 500,000?
At what point do we think the ownership (and therefore control and
'rights') should be concentrated into a small subset of all those that
require the Outputs of those Sources?
At first, each person would probably do that dirty work for themselves
by wearing protective clothing and carrying buckets.
This somewhat terrible situation continues for a while until a 6th
person washes ashore.
After the 5 original persons nurse #6 back to health, they decide to
help him out by employing him as a waterboy.
If he fetches all the water for the 5 others, then, as payment, they
will allow him to fetch water for himself as well. This is charging a
price above cost.
Now, if you are to say "that isn't fair, #6 should have 1/6 'rights'
in the well", then I will say "are you telling me that every consumer
should have ownership in the Sources of Production?
One day, as #6 sat covered in bugs to rest, he realizes pipe could be
made out of some of the larger reeds so that the amount of work to
fetch water would fall near zero. This is Automation.
But #6 is no dummy. Without Source Ownership he also knows that such
automation would put him out of work, so he doesn't reveal or
implement that information - essentially quelling progress. This is
one of the side-effects of Capitalism.
There is more to cover, and I want to rewrite this more simply, but
wanted to kind of 'ask' if such an approach is what we are looking for
in this regard?
Thanks,
Patrick
That is correct; you may distribute BSD licensed binaries without
offering the source-code. This causes such software to be 'open', but
not what I would call "locked open".
> Yet, it is still an open source license.
Yes, and also qualifies as Free Software (according to the FSF.org),
but does not 'perpetuate' freedom the way GNU GPL software does.
> As long as the original creator puts the code up on the
> internet and has relatively liberal terms, a community can quickly
> form around it. Even if the original creator goes out of business or
> whatever, the code will still be out there floating around the net for
> people to use, regardless of any "at cost" provision.
> Yet, since the
> BSD license is so tolerant that it allows people to turn it into a
> proprietary license, derivative works can be kept secret.
Just a nitpick: it's not that someone can change the license of that
original code, it's that the BSD license allows 'mixing' with non-BSD
licensed code.
> Works derived from GPL-licensed code must also be licensed under the
> GPL with the same liberal terms and the same mandate to share-alike.
Yes, I agree that is part of how the GNU GPL works, and you are
correct that it is a very important part of the license, but I must
defend my stance that another facet of the license is the requirement
that every end user receive "at cost" access to the virtual Sources of
Production (the source code).
Richard Stallman (RMS) talks about User Freedom.
He wants to insure every users is able to [from
http://GNU.org/philosophy/free-sw.html ]:
* The freedom to run the program, for any purpose (freedom 0).
* The freedom to study how the program works, and adapt it to your
needs (freedom 1). Access to the source code is a precondition for
this.
* The freedom to redistribute copies so you can help your neighbor
(freedom 2).
* The freedom to improve the program, and release your
improvements (and modified versions in general) to the public, so that
the whole community benefits (freedom 3). Access to the source code is
a precondition for this.
If the GNU GPL required all derivatives use the same license, yet did
not require Source access, then the only thing it would protect is the
ability to run(0) and redistribute(1) binaries; it would not allow
end-users to study(2), or improve(3) the program.
Now, this may seem unimportant - since very few end-users have the
skill to 'operate' those Sources (to program).
But if we look closely, and think clearly we will see that when every
user (consumer) has "at cost" access to the Sources (Means) of
Production - even without skills, they can then hire ANY worker to
fulfill those goals instead of being at the mercy of those that would
withhold access for the purposes of profit.
Since wages are a cost, we see that the GNU GPL already eliminates
profit in that realm, since the consumer can always "go around" those
who would otherwise withhold access to the Sources for the purpose of
charging a price above cost.
Does this make sense? Please let me know if it does not.
Thanks,
Patrick
Thanks for the kind words, and I apologize for the sloppy draft...
Here is an example that can be applied today in a common neighborhood
setting. It is a rework of a post I originally made at
http://listcultures.org/pipermail/p2presearch_listcultures.org/2008-March/000398.html
==The Utilization/Price Ratio for SINGULAR ownership:
Why do people choose to BUY some tools,
while they choose to RENT others?
When a person can make use of (utilize) a machine
to a sufficient degree, it is more efficient for them to
OWN instead of RENT.
But wait, how could that be? The owner (whoever he is) must pay all
costs either way.
A rental agency must pay for the initial
investment, upkeep/repair/maintenance/wear,
insurance, protection/security, storage, taxes,
and any wages to any workers needed to do any
of those things.
A private owner must pay those exact same costs,
so how could it possibly be cheaper to own outright
instead of renting?
The difference is called 'profit'.
Profit is the difference between the costs an owner pays
and the price a consumer is willing to pay.
When the owner and consumer are the same person,
there is no such thing as profit.
That is the savings in ownership over rental.
----
But what about machines that are not "worth it" to
own because that individual owner cannot sufficiently
utilize them?
It must be worth it for SOMEONE to own them,
otherwise the rental agency wouldn't do so.
The difference here is a matter of utilization.
So how can a consumer increase the utilization
of a tool to the point of making ownership "worth it"?
==The Utilization/Price Ratio for CO-ownership:
One way is to buy the machine with a group of
other consumers.
Organizing with your neighbors to OWN a roto-tiller
instead of continuing to RENT is cheaper if that
equipment can be kept sufficiently 'busy'.
These savings are often overlooked as being the result
of not paying Wages to workers, but that work must
be done either way, and we know the Rental agency
or the Capitalist employer enjoys Price above Cost while
calculating Wages as a Cost, so where is the confusion?
For example: Let's say a for-profit business has hired
employees to go door-to-door offering to roto-till a
garden patch.
The business owner offers the service for some fee -
say $1 per square meter while paying the employee
operating the tiller say $10 per hour.
The owner has other costs such as management, initial investment,
gasoline, oil, replacing parts, storage, insurance, and maybe many
others.
But we know he is charging more that these costs if he
is reporting a profit - for that is the definition of profit =
"price above cost".
Now let's look at what happens when the owners of the
Source (the tiller) are also the consumers of the outputs
(the tilled ground): They must pay all the same costs as
the Capitalist, including Wages to the operator and
mechanics, but they wouldn't be paying the extra amount
called Profit - for who could they possibly pay it to?
When the Sources are Consumer-Owned, they could probably pay the
Workers slightly more (say $12 per hour) and *still* pay less since
they wouldn't be paying the unnecessary burden of Profit.
There is real work involved in the act of organization,
but that cost (wages to management) must be paid
either way.
So what is keeping us from organizing and cooperatively
owning machines, buildings, even land?
I think part of the problem is a long-standing belief that
whoever possesses the skills to operate those machines
should be the owners.
But doesn't the above argument show that efficiency
(as in the lowest price) comes when ownership is in
the hands of those that consume the final output?
Another part of the problem is in figuring out how those
resources should be shared among the owners.
It is a difficult, sticky situation that most people would
rather just avoid altogether because of the forecasted
in-fighting they perceive would occur.
It seems such a group could write some 'rules' about
how to schedule access, and how much each individual
must compensate the others for any extra wear or exclusion
they cause.
I see such a contract, if 'properly' written, would be the only
thing our society needs to begin down the road of
peace and abundance.
A single machine can be shared among a finite number
of people. As the number of consumers attempting to
utilize the machine increases, at some point it will be
impossible to fullfill those requests with a single machine.
If the collective owners have the time-sharing of that
machine setup so that anyone wanting to rent it are
bidding against each other, then more time slots will be filled.
People that want to rent close to 'cost', and are willing to lose some
sleep will rent at 2am, while other people will be willing to "fight
it out" for a slot at 12 noon in a bid war.
As the dueling bidders raise their own price for that time
slot, they are *proving* that the current number of machines cannot
fill peak demand, and - since that "price above cost" will be invested
for the winning bidder toward buying ANOTHER machine, the 'system'
should be self-stablizing as those extra payments will be invested
toward another machine until the number of machines is sufficient to
cover the needs of that community.
Furthermore, each sub-community that develops around each of those
machines can then secede from the whole if they decide to treat their
new machine in a different manner (say changing the oil more often).
Cooperative consumer ownership is quite rare today, but there are a
few cases where a group of friends wanting a private airplane make a
"shared investment", and then rent the plane from the collective
others whenever they want to use it. None of those people need the
ability to fly themselves, they can just hire a pilot and pay that
wage as a cost while still saving money by not paying profit.
Another example is shared ownership of a vacation house. The
for-profit "Time Share" industry has grown around that desire, but I'm
referring to the less common case when a private group of people buy a
house that they share amongst themselves in whatever way they see fit.
But you are talking about protecting the original project as released
by the original Copyright holders.
The original code is certainly available - whether Public Domain, BSD, etc.
But the GNU GPL does something else.
The GNU GPL disallows anyone from building UPON that codebase unless
they ALSO release the source-code to anyone to which they distribute
the binaries.
If you are running 2k, XP or Vista try the following:
Press [WindowsKey-R] to bring up the run dialog.
Type 'cmd' (without the quotes) and press [Enter] to open a command prompt.
Now, within that prompt type:
find "Regents" %SystemRoot%\system32\ftp.exe
which will output:
@(#) Copyright (c) 1983 The Regents of the University of California.
Proving Microsoft built upon BSD licensed networking code to complete
their operating system.
If that code had been protected by the GNU GPL, then Microsoft would
have either been unable to build upon it (requiring them to
reimplement all that work), or they would have been required to
release the source-code of all the CHANGES that they made to it.
That is a big difference, and is the reason why most corporations that
choose to do any Free Software (Open Source) work at all, choose the
GNU GPL for the code they release - for it stops their competitors
from using that work against them the way Public Domain or BSD
licenses allow.
> You are getting tripped up with the legalistic aspect of it. There is
> virtually no need for an "at cost" provision.
Again you seem to be saying there is no economic difference between
the GNU GPL and the BSD licenses.
If that is what you are saying, then please tell me, for I have more
explaining to do.
> Forget this whole profit margin thing... you are thinking about it
> wrong. Just because a consumer-owned enterprise has no profit margin
> added to the price of its products, that doesn't mean that enterprise
> has any reason to attain the extraordinary levels of efficiency and
> economies of scale that mega-corporations do.
A rewrite of http://listcultures.org/pipermail/p2presearch_listcultures.org/2008-March/000441.html
follows:
Keeping price above cost appears to be the only motivation for
production, but what about the product itself?
Aren't the use-value of the outputs of production important?
Or is exchange-value (profit) the only motivator?
Use-value is certainly important to the consumers, and consumers never
expect to be paid profit, so why not have them be the owners? I'm not
pretending these consumers would be a totally separate set of humans
that lay around eating all day without ever working. I assume they
will also need to work somewhere, in many cases they can operate some
of those Means of Production that they rely upon for that which they
consume, but we also want to incent high skills, so it will
be common for the consumer of honey to own beehives without being the
beekeeper himself - for he can hire someone else to do that while he goes
and shovels manuer to pay for that trading of labor.
I'm not trying to take advantage of workers, I'm trying to stop the
exploitation of
the consumer while keeping in mind that EVERY WORKER IS A CONSUMER,
but may not necessarily have the skills needed to operate the sources
he needs ownership in in order to have the control required for true
freedom.
If profit were eliminated while those that consume the product were
the owners, there would only be celebration - as price would meet cost
and competition would be perfected. That point occurs when each
product consumer has sufficient ownership in the Land and Capital
needed to insure their future needs. Each consumer is also workers
SOMEWHERE, and in some cases even on that same Land and Capital, but
ownership should be determined by those that PAY, not by those that
happen to have the skills needed to operate those sources.
I need ownership in the sources of the things that I consume. If I
happen to also eat apples, I should be investing in part of ANOTHER
apple tree. If you are paying me to pick your apples by giving me
apples, then I should be compensated for any amount I pay (any amount
I labor) above the real costs of the apples you pay me with by your
investing that extra amount (the profit you gathered) toward the
purchase of more land, water rights, trees and tools that will
eventually become my property (should vest to me). But that is only
if I were an apple CONSUMER.
If we want the lowest prices; if we really want price to meet cost and
profit to hit zero, then we had better make sure the consumers are the
investors and owners of the Means of Production, otherwise those that
do happen to own them will declare the business a failure just as we
are reaching our goal.
Product is better than profit because "use value" is more important
than "exchange value".
Patrick