On the fallacies of an Emerging Global Left

“Socialism is unrealizable as an economic system because a socialist society would not have any possibility of resorting to economic calculation. This is why it cannot be considered as a system of society’s economic organization. It is a means to disintegrate social cooperation and to bring about poverty and chaos.” Ludwig von Mises. Money, Method, and the Market Process.

Recently, an article from the blog Poverty Matters (supported by the Bill and Melinda Gates Foundation) authored by Jayati Ghosh in the Guardian elaborates on how a new global left is emerging as a result of a transcendance of the traditional socialist paradigm. Ghosh explains that this new global left has is currently transcending the traditional socialist emphasis on “centralised government control over an undifferentiated mass of workers, to incorporate more explicit emphasis on the rights and concerns of women, ethnic minorities, tribal communities and other marginalised groups, as well as recognition of ecological constraints and the social necessity of respecting nature.” This transcendance is occurring via what Ghosh considers to be seven common threads that are not new but a result of a “collective failure of memory”.

These threads are:

An attitude to what constitutes democracy,
the rejection of overcentralisation,
a more complex approach to property rights,
a discourse in the language of “rights”,
a realization that addressing issues only in class terms is not sufficient,
a emphasis on gender as a a cause for addressing issues,
an emphasis on environmental conservation, the protection of ecosystems, biodiversity and the integrity of a country’s genetic assets.

I wonder what Ghosh considered to be the traditional socialist paradigma. Socialism and the ideas behind this socioeconomic system of collective ownership of the means of production is very diverse and it is incorrect and inaccurate to speak of a single socialist paradigm. More so, what seems a New emergence of the left is in fact not occurring anywhere in the world.

Collectivism (inaccurately generalized as “the left”) in its many names and shapes continues developing itself within the same framework of ideas that have been used for centuries. While the historical context has changed the principles continue being the same. As such, the thread number 1 which seems for Ghosh as a new attitude toward democracy is the result of the failure of the previous collectivist governments that have ruled the world. There is no real change in the attitude toward democracy since collectivist ideas consider democracy as a means to the value they aim to achieve: collective power over the collective. The only way of having a new attitude toward democracy would be in fact to reject it as a mean to achieve any end successfully. This of course is not happening anywhere in the collectivist groups of the world.

As well, the point number two of overcentralisation is false since collectivism is a centralized system of organization in which at the end of the day the sole power over everything resides in the collective government. The only change is not of how centralization happens but on how many people are to be managing that collective government (the Party, elites, corporations, oligarchies, et al).

Point number three and four have nothing new and are the same exact approaches that collectivism has had since it origin in regard to property and rights. Collectivist philosophies consider all in essence the private ownership of the means of production to be evil, static in nature and inefficient to satisfy the needs of humanity. Its approach to rights is rooted on the principle that the only important rights are those of the collective and thus reject the individual rights of its members.

Points five, six and seven have also not changed in the collectivist mindset since they are rooted in the principles of class struggle that have only continued the trend of understanding society as a competing/destructive system based on gender, race, culture, religion, etc. The principle continues the same: The so called tension or antagonism continues to exists in their interpretation of society due to competing socioeconomic interests between people.

By definition, the only way in which any real change, evolution or overcoming of a collectivist philosophy in the globe will arise when the discourse starts by rejecting the philosophical principles in which they are rooted. As such, unless they understand how and why the collectivist philosophy is full of fallacious principles that have caused death and poverty for centuries, there is nothing that will change. There is no emergence of a new left, there is no resurgence of collectivism and the dialectics of historical materialism continue existing in the core of all collectivist philosophies. It will be only until intellectuals have the common-sense and moral courage to question their philosophies of life that we may seem an end to centuries of collectivist failed projects of organizing society. Until that day what we will continue seeing is the same social system that has destroyed the best within man for ages.

Minorities are for the 1st time in History a Majority in the United States

“So long as racial discrimination remains a fact of life and statistics can be arranged to support racial difference, the American belief in races will endure.” Painter, Nell. The History of White People.

Though race holds no scientific validity it has been use as a political weapon to conceal power into the hands of small elitist groups. Among the most elitist groups that have existed in the last thousand years lays the story of White Anglo Saxon Protestant control of the United States of America. Their history can be easily studied since they dominated the political and economic arenas of the United States since before its birth. As well, their social relations with other groups whom they deemed to be different racially and culturally is also easily accesible to any well educated reader. To read that for the first time in more than 200 years a well established (nativist) minority is for the first time becoming a majority is a great news for the elimination of racial paradigmas that have long survived in which is still the most powerful country on Earth.

As confirmed by the Census bureau of the United States it is now official that minorities — including Hispanics, blacks, Asians and those of mixed race — reached 50.4% of of all births in the 12-month period that ended last July, according to Census Bureau data made public on Thursday. And for the first time in history, White births are no longer a majority in the United States.

What is the significance of this information for Americans and for the rest of the World?

From a political, economical and sociological standpoint the significance of this change in birth rates will be evidently reflected in the way marketing of products, political goals and social discourses will be elaborated by the elites in the next 15 or 20 years. But more immediately, this change in births will bring the White elite for the first time in the United States history to understand their positions and will invite them to eliminate their 250 years discourse of imperialist segregation and racism in the organization of society.

Racial discrimination has been a constant of the history of the United States. While discrimination against minorities of Hispanics, blacks, Asians and other mixed races is a recently new event; the history of the U.S. was made upon the discrimination by whites among other white migrant groups: Irish, Polish, German and many other northern Europeans. Indeed, still by the 1840s, White Anglo Americans identified themselves as “belong(ing) to a hereditary aristocracy by dint of a mythology driven by the notion of tainted blood and a belief in invisible ancestry.” (Painter, Nell. The History of White People)

The fact that starting in 2012 the United States will become a more multiethnic and culturally diverse country is a positive signal to open the doors for a society in which the rights of all individuals could be effectively protected and defended. A society in which minorities are no longer outnumbered by the long standing elite will be more tolerant to opening and maturity of its members. Of course, the elites will always try to keep the control on their hands and the potential for more open fights between racial and socioeconomic groups is always latent.

While political positions could slowly be more racially diverse in the future years, the chances for cronyism to expand into the new elites of the minority groups is a fact. Cronyism has been part of the United States political and economical history for too many years already. It is now the chance for the minority leaders to follow rational and objective principles and start a moral revolution in their country. By doing this they have the power in their hands to make the American Dream come truth, and to show the rest of the world that morality and justice is not necessarily the subject of the White men and its Eurocentric narrative.

Racial attitudes, the generation gap, and the political perfect storm (statchatva.org)
White Identity Politics (racefiles.wordpress.com)

Interview: How Procter and Gamble Learned To Love YouTube

“Action is purposive conduct. It is not simply behavior, but behavior begot by judgments of value, aiming at a definite end and guided by ideas concerning the suitability or unsuitability of definite means. . . . It is conscious behavior. It is choosing. It is volition; it is a display of the will.” Ludwig von Mises

As a former employee of P&G I am always proud to learn from the future of one of the greatest companies on Earth. P&G provides with hundreds of consumer goods to millions of human beings at competitive and wonderful prices. Indeed, companies like P&G are the result of team working leaders who create a better future by giving irreplaceable experiences to its consumers. In the following video, Melanie Healey (P&G Group President, North America) and Filippo Passerini (Group President, CIO, P&G) explain how success is about networked technology, big data analytics and 1-to-1 marketing.

As Passerini asserts, what we need right now is “business people that have passion for technology but (who don’t forget) that they are businesspeople”. Further, Healey elaborates on how global channels are currently working in global scale. As Healy explains, they create plans that “deliver strategies faster, cheaper and better” in order to create business plans in order to fulfill the business needs.

Indeed, in a globalized world opportunities appear logarithmically while strengths are developed by giving always an added value for consumers. Indeed, as philosophers like Ayn Rand and economist Ludwig von Mises so wonderfully elaborated as it is the philosophy of the entrepreneur what allows him to pursue successful projects. What gives the entrepreneur the ability to succeed are market signals, which are necessary to determine what people might want and how well it was provided. Even the smartest person can’t learn if a teacher uses black chalk on a blackboard in a dark room. No entrepreneur can succeed in isolation.

Entrepreneurs and successful men with values like them are what we need in the world! People ready to create something better and work hard!

Discourse: Nationalization, Private Companies and Crony Capitalism

The neoliberal (a.k.a. crony capitalism) ruling of the world during the last 50 years is usually generalized as a “big fish eats small fish” relationship. The story continues, with the big fish in Washington, Brussels and Moscow fed themselves with the riches of the world and profited from globalization. Meanwhile, the small fish continued breeding and feeding the always hungry lords. This general discourse is repeated in most if not all the academic papers dealing with postcoloniality and globalization.

The impact of the ideas of these intellectuals is widespread and not easily observable for the ignorant masses. As such, when you read the newspapers in Latin America or Africa in regard to the “new” nationalizations being undertaken by the “new” socialist/anti-neoliberal governments in Argentina, Bolivia, Brazil, Greece, Lithuania, and Sri Lanka since 2011 people usually ignores that there is nothing “new” in these actions.

These nationalizations of privately owned assets have been in many of the cases actual renationalizations of companies that were not owned by the principles of free market ideas, but that had been privatized by corrupt social democratic governments 50, 40 or 10 years before and who created new privately owned privileged companies. As a result of these social democrat and socialist governments many privately owned companies emerged as the bastions of crony capitalism, inefficiency and corruption. The previous, generally increased as closer the national industries were owned by crony private companies that owned single-crop cultive exports and resource rich regions.

To mention short examples of the previous, recently in Argentina Yacimientos Petrolíferos Fiscales (YPF; English: “Treasury Petroleum Fields”) was renationalized (not nationalized) by the government under claims of corruption, inefficiency and negative benefits to their national interests. In Bolivia, Transportadora de Electricidad (TDE) was nationalized by Evo Morales government. However, TDE was also a fruit of the neoliberal and crony capitalist deals established in 1952 after a coup d’état that established a military socialist democracy with the party Revolutionary Nationalist Movement (MNR) which allied into a military-nationalist clique that lasted for 50 years.

Privately owned companies produce always more efficient and better products than state-owned companies. However, privately owned companies that have benefited from government granted privileges for decades not necessarily will produce more and better services and products than state-owned companies. The previous is something that few of us dare to identify and explain with a non-contradictory historical and philosophical background. Meanwhile, the great majority of academics influenced by collectivist philosophies will start writing articles and books applauding the “successful” renationalizations and condemning those free-market authors who will write back and fight.

Indeed, there is a difficult road in defending private property and privately owned businesses in the context of countries and regions that lack respect for individual rights and the rule of law. As such, to defend the private vs collective in those circles it is necessary that first we identify how the societies are currently organized around the collective inefficient systems of social and economic organization. In the case of Bolivia and Argentina it is necessary for us to identify how these business and societies are not structured and organized around the principles of free market and individual rights. By understanding and explaining this clearly there will be a chance to change the discourse of discussion from “why is renationalization good?” to “why laissez faire capitalism is better than the privately owned business of crony capitalism?”

Why the Morales govt. in Bolivia is a threat to neoliberalism (redantliberationarmy.wordpress.com)
Sheldon Richman on Adam Smith vs. Crony Capitalism (reason.com)
Brian Koenig: Obama’s Crony Capitalism and His Top 2008 Donors (junkscience.com)
Argentina And Bolivia Are Right To Take Over Private Companies (businessinsider.com)

Today I am joining the celebration of the World Book and Copyright Day (also known as International Day of the Book or World Book Days) a yearly event on 23 April, organized by UNESCO to promote reading, publishing and copyright. The Day was first celebrated in 1995 and in 2012 the UK World Book day was celebrated on March 1, 2012.^[1]

As part of my celebration I am sharing with you some quotes from one of my favorite books. This year I have chosen the book “The Law” written by Frederic Bastiat. The book was first published as a pamphlet in June, 1850 and later became widely read in Europe and the world.

“Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place.” ― Frédéric Bastiat, The Law

In The Law, Bastiat states that “each of us has a natural right — from God — to defend his person, his liberty, and his property”. The State is a “substitution of a common force for individual forces” to defend this right. The law becomes perverted when it punishes one’s right to self-defense in favor of another’s acquired right to plunder.

Bastiat defines two forms of plunder: “stupid greed and false philanthropy”. Stupid greed is “protective tariffs, subsidies, guaranteed profits” and false philanthropy is “guaranteed jobs, relief and welfare schemes, public education, progressive taxation, free credit, and public works”. Monopolies and Socialism are legalized plunder which Bastiat emphasizes is legal but not legitimate.

If you are interested in reading more about this ideas here are the links to the book,

The Law (English Edition) via Amazon.com

La Ley (Spanish Edition) via Amazon.com

La Loi (annoté) (French Edition) via Amazon