So firstly, the government decides in their wisdom to confiscate 35% from a millionaire. So for every million Rubles he had, now he only has 650,000. Where did he keep that money before? Most likely the first few Rubles he made took care of the cars, the mortgages on the houses, the staff, food, education etc.- basic essentials. Then being the filthy rich capitalist he was, he probably had profits left over after paying those expenses, so he could save and invest. Stocks, bonds, retirement accounts, savings accounts and collectibles, maybe even provide venture capital directly to promising businesses (Which at the end of the day is what all the other forms of investing and saving do too.) And if he is even more greedy of a blood sucking capitalist, he will still have money left to blow in frivolous vacations, casinos,race cars, yachts and jets. The "redistributionists" say that because of the marginal utility of money, the last Ruble he owns is worth less to him than the first few he needs for basic survival, but it might be worth more to a poor person.
But I ask myself this: when is the last time you saw a millionaire vacuum the floors at a resort casino, or work in the shipyard making yachts or jets? Even the money he has sitting in saving accounts and investments; It is used to be reinvested in new businesses, in capital improvements to the economy, in millions of small businesses getting loans to fund millions of small business improvements, expansions and salaries.
If his last few dollars are redistributed away from him, it hurts the little guy where he would normally have spent his money. You are actually taxing his employees and his vendors' employees. Sure on day one, you tax the rich guy, but on day two and day three you hurt a mechanic or a hotel worker or a parking lot attendant somewhere.
2. So now your bleeding heart takes these 350,000 Rubles to the most hungry, the most needy, the most impoverished, and you redistribute it to them. Sure you feed them for a day, but where do they spend it? It pretty much goes to the local grocery store which is owned by a rich guy, who gives some of it to a farmer and manufacturer, who are rich guys. Some of it goes to buying or fixing a house - by a rich contractor. Even if he is Mr. do-it-yourself, he runs down to the hardware store to buy nails and cement from the rich guy.Some of it goes to buying the kids a n X box or whatever- it goes back to owners of valuable businesses. So you are redistributing from one rich guy to another.
Unless you nationalize the whole country(surely not too many people advocate that anymore), the money is re-redistributed back to the guy who provides the best products and services. It has no long lasting effect on the poverty level because the misunderstanding is that wealth is the possession of money and not the possession of skills and the willingness to take risk and the access to capital goods to increase efficiency. None of this is addressed in the "wealth redistribution" philosophy.
I really have no confidence in statistics and Gini coefficients proving anything, but isn't that why re-distributions make no difference in the long run, other that making rich people smarter at tax evasion?
Where am I wrong??
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Hi Garth, you make the following claim:
I also found - from the General Social Survey - that the average US adult would prefer to see greater equality than they think exists and also that they overestimate (by a large margin) how much equality there is. So most Americans would prefer a much lower Gini than they have.
I don't think that is a valid conclusion. The vast majority of Americans favours "lower government spending" but a similar vast majority do not want to see their own "welfare benefits" cut.
So asked whether they would favour a more "equal society" the answer (not surprisingly) would be "yes". The more interesting question, however, would be why so many of them (or their forebears) emigrated from a more egalitarian Eastern Europe with (I assume) lower Gini coefficients, to a country with a higher one?
"Would you like to see more equality in the world?" must be one of the most meaningless questions you could ask anybody anywhere. Probably right up there with "Are you in favour of World Peace?"
J
To digress:
While waiting for a plane in China last year I had an interesting time `speaking’ to a Chinese man who couldn’t speak English.
I asked him what the meaning was of a symbol I often saw. He said it was “Ma” and after much laughter and gestures I gathered it could mean a person or mother.
To demonstrate this to took me to introduce me to his mother and family. More gaiety. Then he put two people together and wrote the symbol for two people and a crowd of people.
Without speaking any English he taught me quite a few symbols and we were both delighted at my progress. We were disappointed when our flight was eventually called.
This site shows the fun way of remembering some Chinese symbols.
http://www.forbes.com/sites/bruceupbin/2013/04/25/learn-to-read-chinese-in-eight-minutes/
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Jaco Strauss
Kaapstad
Trevor it is nice when everything seems so clear and simple. As you state things I can hardly disagree but I do think your premises are unduely simple or not quite fully examined.When is something a crime? Taking someone's property without their permission is defined as a crime and so theft is a crime - all very straightforward. But things get complicated when you try to specify what it is that makes something someone's property?If I don't recognise your property rights in something - is it still your property? Is it enough for you to declare it your property - even if everyone else (or just many people) disagrees? I doubt it would be enough because then I could just declare it my property too and take it without it clearly being theft. It seems obvious to me that some kind of authority needs to establish your your property rights before we can talk about theft in any unambiguous way. This authority need not grant you property rights for everything in your possession.
No doubt most of you will argue for some kind of natural rights framework or objective morality here, to which the authority itself is subject whether it recognizes this or not. The contents of such natural rights or objective ethics is by no means universally agreed upon i.e. even those who think in those terms will still be stuck with disputes they cannot handle from within their system of rights and morals. A large proportion of legal, political and moral philosophers don't think such systems can really be defended or justified - even if there were universal agreement on the content. In my view appeals to the authority of natural rights or objective morals are as no more solid or convincing than appeals to the authority of some social institution charged with confering property rights. At the very least no rights system is worth a damn unless there is widespread bye-in to it.What about 'tax is theft' then? That depends on 'the authority' agreeing that the total of your compensation for your labor or business is yours. The same applies to natural rights. If only the after tax portion is declared to be yours then it isn't clear that tax is theft, or a crime of any sort, anymore. You could argue that such a decision would be improperly made, but it is hard to see why if it is within the accepted rights of the institution and there is widespread support to the decision. Alternatively it is hard to say it is improper if that's how the society in which you live wants things to be.You could also argue that full compensation is your just dessert. That too could be contested. For example if some portion of your earning is due to luck - like it is for stock analysts - then how can you say you deserve it all? If you can't say you truly deserve it all why should it be declared your private property? [Dessert could be contested on many other grounds too - the next point is but one of many others.]The authority may also argue that they provide a service on which your income depends i.e. you would be earning a lot less if it weren't for what they were doing for you e.g. providing the institution of property rights, infrastructure, rule of law, etc, so you do in fact owe them something. [I know I know libertarians will contest this passionately - including me - but the vast majority of people think this account is valid and don't see it as a protection racket either.]This is hardly the last word on the matter but it should be apparent that things aren't clear and simple even when you build upon a few very clear and basic principles. In highly abstract terms Godel's theorem states that even if a system is built
Trevor I like the Consent Axiom a lot but I don't think it ad hominem when I find "Don't take his stuff without asking" insufficient. It is only unobjectionable as a principle when we have already settled the issue of 'is it really his stuff'.
It is not setting up a straw man to ask 'when is it his stuff?'. In fact my objection is precisely that you consider my asking the question to be setting up a straw man. The idea of theft is implicit in defining something as 'your stuff' so the nature of the definition is crucial.How is it leading the jury to say that I think 'juries' are necessary to the justification of property rights?In appealing to authority I am simply pointing to a body of thought on the issue. BTW when you say 'property is acquired by effort' you are also quoting an authority - Rothbard. I am simply saying 'that principle has been questioned but unpacking those objections would take too long, so please look them up for yourself' and I pointed out where I think it profitable to look i.e. political, legal or ethical philosophers.
I for one don't think that 'acquired by effort' makes something your property if the people among whom you live - or your juries - don't buy into it. As I said, all of my remarks refer to people living in a consenting society. They have agreed up front to abide by the terms of the consent axiom. A right, no matter how real you think it is, is indistinguishable from a fantasy in such circumstances. The statement assumes a natural rights perspective that isn't convincing to me. Such a perspective will assert that rights exist even if they aren't recognized or respected by anyone else see previous remark.. I have asked why that is so and have come to the conclusion it can't be justified and hence is nonsense. So if you make statements such require a nature rights underpining you absolutely do need to justify natural rights. It isn't enough to simply assume the validity of natural rights in a world where their denial exists among thoughtful good faith people. Why should these others accept what you say otherwise? Because they have agreed to, because they think it is in their best interest, because they, like me, think this is the best available set of rules for peaceful coexistence.Even if they did buy into it there would be further principles defining what qualifies as effort e.g. do we count the effort of hired laborers or only that of capital, acquired and even stuff e.g do ideas count as stuff? Although the concept of compensation for effort is well and widely defined, I concede there will always be grey areas. That is why you have a jury of reasonable men and women.Property via gift or inheritance depends on the giver being legitimate property owners themselves (I hope you agree) so doesn't really answer the question as to when something is property. Is it theft if an American Indian were to occupy white land legitimately inherited and bought from those who acquired it by violently displacing the original occupants? Since pretty much all land around the world today was acquired through violence at some point in the chain of ownership, one has to doubt whether any of it can be property by your definition. When serfdom was abolished whose properties were the estates? Do those who inherit them have legitimate property rights? In a debate I had with Neil Emerick he asserted that they did, but by your principles I cannot see how, since the aristocrats during serfdom can not have acquired the land (and serfs) in any way you would have regarded as legitimate. If the ownership of property (or anything else) is in dispute, then the parties to the dispute will take it to a jury. (Selection details, etc are described in my essay (Have you read it yet?)) If 3 different juries reach an identical conclusion, then that conclusion becomes a precedent for that dispute, making future appeals to juries highly unlikely to be successful. The juries will decide on the basis of facts put to them what the final disposition of the property will be.My definition on the other hand has no problems with this state of affairs. Property is decided by our accepted social institutions and general buy in (for whatever reason)Ah, so we have no aboriginal property right disputes in our current setup????. These institutions at the time could have decided to grant ownership in a variety of ways e.g. to the aristocrats, to the serfs instead, to the state, to those who are regarded as most able to use the land to maximize overall value, to some weighted combination of serfs and aristocrats, or to leave them partially with the aristocrats and partially with the state i.e. tax it. It isn't clear which of these solutions is best, but if you accept that rights are created by social institutions there is no principle (outside of utilitarianism) I am aware of that says the tax option was worse, or less legitimate, than any of the alternatives How about the principle of prohibition of theft (taking what is not owned by force). If confused, ask Johnny. At best you can argue that a non-tax option 'works' better. But since no one (and this has to include ourselves) can know enough to truly say what the effect of any of the alternatives is, it is legitimate, and not stupid, to question that assertion too. Like any axiom, the consent axiom makes some (very few) statements that are not justified by evidence - they must simply be accepted. No action without consent. No theft. No murder. No fraud. Thats about it.
As an aside it isn't at all clear why acquisition via luck makes something, or should be recognized as, property. Behind the idea of legitimate property seems to be the notion of just dessert - clearly 'acquired by effort' implies it. But how is lucky acquisition deserved? Since no one deserves more luck than another why shouldn't lucky acquisitions be regarded as common property? If luck is a significant factor in acquisition then I do not see any obvious objection to the luck portion
being taken from you and shared - other than the very real problem of calculating the luck proportion. Some on this forum have argued that taking such undeserved acquisitions would involve violating the person's liberty. Maybe I'm dense but I really don't see how that works. All that would be happening is that stuff that isn't yours (by your own admission since you are assuming it is undeserved) is being accessed, which in no way violates your liberty. How does your liberty depend on whether you pick 10c or R1 million in the street? Surely taxing your windfall is the equivalent to you having found the lesser amount? Taxing your luck is merely a form of bad luck and not a violation of your liberty The more I practice, the luckier I get. I guess its just luck that Michael Jordan's shots keep going in the basket. Why should he get rich on that luck? This is just naked envy, socialist redistribution. In most cases the recipients of the blessings of luck are clear and uncontested, and they are entitled to their winnings without taxation. Where there is a dispute (2 people find a gold nugget simultaneously, for example, and refuse to share), then call a jury.In short one can (in my view) maintain - even as a believer in liberty and the consent axiom - that tax (or some other institutional taking of a portion of 'your stuff') is not necessarily a violation of your liberty, or even bad in some utilitarian sense. It depends crucially on what makes it is your stuff and/or whether a certain way of assigning property rights just 'works' best. I simply reject utilitarianism as an unprincipled and worthless philosophy.Oh yes it is true that states must threaten force to collect tax because few would voluntarily cough it up even if they did consider it legitimate by the reasoning above. However that in itself doesn't necessarily invalidate tax collection since the same threat of force is itself justified by the justice of the aim e.g to stop people killing each other. It is not the threat of force which invalidates tax collection but the injustice of collecting tax that makes the threat of force unjust Huh?. In other words I am saying it is not the means but the aim that makes something just or unjust. I simply reject "the end justifies the means" as an unprincipled and worthless philosophy. A consistent and sensible philosophy does not sanction murder to stop murders. It does not sanction theft to stop thieving.Finally it will be asked of me "Why do you want to raise these issues?" as if it must mean I 'really' want tax or dislike liberty. The answer is I love reason as much as I love liberty/freedom. In some ways, like Leon, I envy those who have no doubts but I regarded it of supreme importance to know and understand and to have my convictions rest on solid grounds. To really examine one's beliefs sincerely entails an honest examination of the alternatives and to really push one's own convictions to the limit i.e. to deliberately falsify them. This habit has however always made the cocksure regard me as morally suspect. To be frank I see nothing virtuous about that attitude and rest assured I am suspicious of them in turn. Hopefully I will never be asked to drink hemlock. I totally agree with you. I believe the truth is always approached from at least 2 directions. I appreciate and value (as I think we all do (appeal to authority,leading statement:-)) your thoughtful and challenging contributions to these debates. That does not mean I won't criticise your ideas and statements with vigour.Where am I then? So far I have retained my love of liberty/freedom, (unlike the values and convictions of my previous political waystops) but the floor beneath has proved difficult to nail down. I have found it harder to say that different convictions on values, theories and facts are wrong. I am left with "I just happen to love liberty and freedom" but I feel myself far less able to specify the best (or even a good) path in service of liberty/freedom and even say what the effect of liberty/freedom on anything else will be. Well, faced with precisely that dilemma, and assisted by Leon and many others, I wrote down the consent axioms mostly to give myself a consistent and persistent point of reference.I would appreciate thoughtful comments. Hope you got a few?
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So you say you can only say you retain your love of liberty/freedom thats all
but you do not recognize property rights- then liberty will be impossible
if you do not own the right to live unless the community agrees, you are not free
You will need permission from everyone else on earth to continue breathing, to put on your clothes in the morning and to eat your coconut for breakfast.
And if the "community" has to agree to your property rights and they agree that you have none or only1% of what you earn and they can tax the rest- you are a slave.
OK we cannot get to the tax argument yet until we resolve property rights. For instance you bring in the reasonable man argument that 1% of your earnings would be unjust. But your previous argument was not whether it passed the reasonable man test, only that it is decreed by the majority of society. (which could be and often is made up of a group of dominant VERY unreasonable men) so we have not yet a definition we can use.
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I personally don't think you need to convince anybody that liberty is worth respecting. I just think people have to know that they have property rights. When people own a few things (even more so when they own a lot of things) they start seeing the benefits of respecting others property rights out of sheer self preservation not moral grounds. If I steal his, they can come steal mine. If I don't own anything I work for then I might as well steal.
.
And I don't think you need to specify whether the property rights are from above or granted by men. People do not have to understand Aristotle to instinctively know, if I plant a crop or catch a rabbit, I am entitled to the benefits (whether the god I believe in agrees or not)
So lets try a caveman game.
A tribe of cavemen live in a cave. One of them is the supers-athlete, several of them are reasonable good hunters and a few are mere weaklings gathering nuts and berries.
So super-athlete gets by force the best or (even all) the women he can control. He gets the best bed, the best food, the best weapon, the best hunting grounds.
But he cannot sleep at night without keeping one eye open for fear of being murdered.
He also finds out that it takes him all day by foot to hunt down an antelope while a group of other guys can herd many antelope into a trap and have way more food than him. They just don't bring it home, they eat it elsewhere.So he has to choose between investing a day to follow them and spy on them or to hunt food for himself.
Better idea they trade. He pays somebody (maybe a weakling that is not good at hunting) to guard him at night and to protect his possessions from humans and animals, he pays somebody to spy for him, he pays somebody to teach him how to catch with a net and he pays someone to give him the best spears (maybe a weakling or a woman who developed their skill to cut sharp sticks into spears). There is no need for a moral or religious justification. It is a contract. The small guys have to be convinced that he means it that what he gives them is theirs to keep irrevocably. If he gives it to them in exchange for cooperation and then takes it back, cooperation stops and everybody is back to subsistence living.
He needs to believe that they value his lifelong contribution to the tribe as protector or food provider more than his current bribe, or they will take his payment and kill him anyway.. but then they have to fight off the dinosaurs themselves
Of course there will be the occasional crazy caveman that does not see the logic or the shifty caveman that steals when nobody is watching.. The tribe finds ways to control these. But none of them understand God or Libertarianism yet
This is called division of labor and is how civilization develops from barbarism.
So an understanding of property rights has to be assumed in society -regardless of how you define it.
(until unfortunately their children go to a socialist university and learn that society owes them- then property rights become fuzzy again and we need philosophers and priests and policeman and courts to redefine it and thrash out the grey areas we'll discuss that later.)
Are we agreed so far?
So the philosophical or religious belief of such a pimp is not relevant to the illegality of slavery.
Are we still on the same page? He may know he is a sinner or he may believe he is a high priest of something and he believes he is within his rights- irrelevant- his beliefs are not binding on others especially others he wishes to subordinate.
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So the reason I wanted to nail down a somewhat acceptable definition of property is so we can decide if the definition of tax comes before or after that.
Obama likes to say that if you got rich you got there by using the state, as if the state came before citizens and that the citizens are granted their rights by the state .
In the days of serfdom, the king owned the land and all it produced. He may not have claimed to own the people but he had the so called "right " to their life in warfare or in starvation. I am sure his pitch was he was protecting the kingdom and the citizens and therefore they owed him.
(They are only alive because of the protection provided by him. In those days there was no model of free citizens taking care of themselves, so his version was reluctantly accepted. This can hardly be called a contract because it was unilaterally enforced, not bilaterally chosen. But at the end of the day, they were no more than slaves and the concept of taxing them or confiscating anything they own cannot be held up under modern scrutiny as justified.
So then later in history, the private rights of citizens became better defined, kingdoms and their colonies were violently overthrown or forced to liberalize. Citizens could not only own property but expect protection of their rights by police and courts. Some of these were private, some of these were elected and some of these were appointed. So there is an argument that they deserve to be funded.
It seems that all of us agree that nowadays we own what we earned first. (property rights come first, then taxes come later as a claim on part of that property) Then we may or may not owe some of that for services rendered.
(If we fall back on the definition that first everything belongs to the state then you earn your portion of it- whatever the state allows you to keep, then we have to go back to defining property rights better.)
OK seems like the argument is that you owe the government something for their services. Granted that sometimes the government provides something of value for somebody (but never does the government provide value for everybody without cost to anybody) - so does the mafia. Did the state leave you any choice and nurture free market competition for their services? (we know the Mafia does not, so do we owe the Mafia because they provided "protection" without a voluntary contract from you?)
Who is going to determine the cost of the state providing that benefit? How can you calculate what your costs would have been on the free market had the state not forced you to be their customer through monopoly and crowding out of competition? (Mises' argument that the state cannot calculate costs)