Libertarian Disasters (bottom up)

Jared Diamond has been asking a question for years. What where the Easter Islanders thinking when they cut down their last tree? If New Orleans is any guide then answer was that they were too busy looting to notice much.

Managers at a nursing home were prepared to cope with the power outages and had enough food for days, but then the looting began. The Covenant Home's bus driver surrendered the vehicle to carjackers after being threatened.

Bands of people drove by the nursing home, shouting to residents, ''Get out!'' On Wednesday, 80 residents, most of them in wheelchairs, were being evacuated to other nursing homes in the state.

''We had enough food for 10 days,'' said Peggy Hoffman, the home's executive director. ''Now we'll have to equip our department heads with guns and teach them how to shoot.''

That's the saddest reminder of how low humanity can sink when things go bad, although Diamond pointing out how the Easter Islander's diet increasing consisted of humans as their society fell just might beat it. It leaves me wondering what the libertarian response to this disaster might be. That the government is actually impeding the repairs, the market would have fixed the levee faster? That looting is better called the "competitive redistribution of goods", and is actually a good thing? Or that if every nursing home aid carried a gun things would have turned out different?

I've been addressing these issues in some very different contexts in the various "bottom up" posts. Well New Orleans is at the bottom, in more ways then one right now, and it will be interesting to see what happens. And these early reports sound more like warfare in the Congo then the sort of beautiful emergence that free marketers and high tech libertarians love to fantasize about. None of this comes much of a surprise to me as I've long been arguing that emergent systems don't just emerge out of the ether. When they do occur they occur in very particular environments.

Markets (and no market is ever really "free") work in civil societies. They tend to fall apart in the face of guns, to the point of non existence in again the Congo, or to the point of deep corruption as in the mafia markets of Russia. Out of all the animals in the world only a few display the sort of emergent intelligence of ants or termites. Occasionally such as in elephant stampedes, humans rioting or perhaps the mythical lemming mass suicides some animals display behavior that's a bit more like emergent stupidity. The point being that emergence is not nearly the simple thing that some would make it out to be. Books on the subject naturally focus on the occasions where it works, but in the process they give a distorted idea of how often they don't work. Which in term leads to fans of the concept having completely unreasonable ideas of how to go about getting that magical self organization to happen.

Self organizing and self regulating systems are fantastic creature, but they take real effort to make happen. The environment needs to be right. For a market that means a stable trusting society with a surplus of goods and a standard of equable exchange. For a community to self organize to prevent looting I suspect you need a sort of cohesiveness, social equality and absence of poverty that just doesn't exist in New Orleans, a city rife with centuries of unresolved social tension. Rather then chaos theory down in Louisiana, instead we get a bit more traditional style of chaos, and no its not nearly as pretty as say a Julia set.

update: I wish I never wondered what the libertarian response to the hurricane was, cause it just made me a bit iller. Over at Reason, probably the premier libertarian blog, the only hurricane post out of nearly 50 in the past 3 days is entitled "Hurricane Bullshit". And its a rant against global warming and the Kyoto accord. Main source? That most reliable of them all, the guy who wrote the book predicting the Dow Jones average would hit 36,000 in 3-5 years. He wrote it oh about 6 years ago...

The Champ is Here (Street Fire)

With a hat tip to Jon Caramanica we snag that fire for the streets. Jada as in Jadakiss. "he's been a threat from the hood to the internet". The Champ is Here. Green Lantern branded. Big Mike branded. "this right here is an official doctrine/ from a smart young real nigga with options" The options are the mix tape. Put the streets in a frenzy. Only the permanent button ups call it guerilla marketing. "ya know wha the fauck I'm talkin bout here guys?"

We bootleg the bootleg. Slsk represents true. Options. The "official" release is up there. We don't think twice, all we need is that mix tape. Never had love for the Jada before. Never had love for Yonkers, never felt substance past those beautiful DMX growls. Lox/D-Block always rolled like number 8 batters. Defense, a single here, a single there. No big hits. Major label maybe, but their game is still pick up. Street ballers. "Why is the industry designed to keep the artist in debt?".

When the legal single drops does it still ask: "why did Bush knock down the towers?" Jadakiss. "Currently a slave to Interscope". But does he stay that way? The mix tape economy is strong enough to make the hottest records. Is it strong enough to support the artists, or does record company capital reign supreme? Symbiotic, parasitic, or at war? There are two record industries now. One perpetuates legal crimes, the other criminally illegal. "Why sell in the stores what you can sell in the streets?"

The Corporation, Take 3 (of 3), Constructions:

The jewel of The Corporation is its conception of the corporation as being a psychopathic organization. I've previously mentioned its value (or invalue) as a propaganda tool. But this also stands as a key point from which to begin constructing solutions.

I'm not sure to what extent the filmmakers view the psychopath diagnosis as metaphor versus being the actual truth, but I'm fully in the metaphor camp. As a metaphor the psychopath construct's utility is basically constrained to its propaganda value. I don't think you can give a corporation the same therapy you would human psychopath. But right beneath the surface of the psychopath metaphor is an extremely useful analysis of the corporation.

Essentially the filmmakers look at the Corporation as an organizational form, one with a deep genetic flaw. Within the legal and cultural code of the contemporary joint stock corporation are serious flaws that influence the behavior of many, if not all corporations today. By locating and analyzing these flaws we unlock the potential to both alter the corporate legal code for the better, and to construct better organizations capable of replacing the corporate form.

The film underscores one particular flaw in the legal status of a corporation, corporate personhood, the fact that corporations have many of the rights of people under the law. Pretty much an absurdity, so much so that the law doesn't always actually follow the concept. Still a strong legal acknowledgement that corporations are not humans and thus subject to a completely different set of laws and rights could go a long way towards a better conceptualization of what roles these entities should play in society.

Ultimately though I suspect that corporate personhood is an effect of the corporate drive for power, not a cause. Is shifting the balance of power back towards another organization with repressive tendencies, the State, an answer to the problems posed by big business? In order for the answer to be "yes" the State must be ready to recode the corporate laws in a constructive manner. A dubious but not impossible prospect, and one that can be furthered greatly if the ideas on how to recode these entities are in existence. And this my friends is our job.

see also:
Abstract Dynamics: The Corporation, Take 1 (of 3), Propaganda

Abstract Dynamics: The Corporation, Take 2 (of 3), The Permanent Critique

plus a note: this piece was actually intended to be much longer, and might be updated, or might birth another piece. I'm putting it up now mainly because I dislike having an essentially negative piece as the first one on my site, my personal take on the Corporation is more positive then critical and hopefully the site will reflect that now.

The Corporation, Take 2 (of 3), The Permanent Critique:

The contemporary left has seemingly unlimited capacity for the negative. Their ability to find faults with world is match only with their in ability to offer viable alternatives to the awful picture of the world they generate.

An hour into The Corporation I'm fully convinced of the evil of this organization form, and I want to change things. Another hour passes, and I'd would like to thinking about the viable alternatives, the course of action. Instead I'm approaching the point of nihilism, of surrender, situation normal - all fucked up.

Its is at this point where point where one thread in my mind leaves the movies flow. If the world is really as awful as this movie paints it, then perhaps I am better off not caring? Would you rather be a medieval serf, toiling in servitude, or instead the king, living in luxury off the exploitation of the same serfs? Robber baron or the labor leader shot dead by Pinkerton guards? If the world is so bleak in helpless, perhaps you best of accepting that and living in ignorant pleasure.

Happily that is not my world view. I do not see world as half empty and out of resources for a refill. I don't see critique as a bludgeon or sword, but instead think it should be wielded more like a scalpel. With extreme precision and only when deemed necessary.

The king of the American left's materialist ubercritics is linguist Noam Chomsky. Now Chomsky occasionally is spot on. But I've never yet seen Chomsky acknowledge that life has room for pleasure. Chomsky seems to believe the overriding goal of most people's lives should be worrying about the world's atrocities. And from a propaganda standpoint that's a dud. Doesn't matter if he's right or wrong, few but the pessimists and sadists are going to subscribe to that world view. Critique as a bludgeon. Can someone please surgically remove this man from my mindscape?

It's not that The Corporation is 100% negative, there are a couple mild positives in the mix. Ray Anderson, CEO of Interface an industrial carpet company, pops in repeatedly through the film as a something of a hero. His Paul Hawkin inspired transformation of his company into a vision of sustainable development comes off quite well. Of course there is a certain violence between the possibilities he preaches and the filmmaker's "corporation as a psychopath" thesis, that unfortunately never gets addressed. Hmmmm.

The other hero is Oscar Olivera the Bolivian anti water privatization activist. And while I don't know his story other then through the film, he serves as a guide to what seems to be an old school marxist revolt against government privitization. Inspiring, yet hazily told, with no indication on how to reproduce or maintain such an action. More please!

Ultimately looking back on film (and bare in mind I have only had the opportunity to view it once, I will be rewatching once it is fully in the theaters), there is a clear junction of potentiality where the film could have run in any number of directions. The point is maybe an hours in, when the corporation is diagnosed as a psychopath. This could have easily been the climax of the film, a critical point, made sharply and strongly. Or it could have been the point of inflection, the diagnosis is in, time to develop a cure. Instead the filmmakers opt for more brutalist approach, they have diagnosed the corporation's illness and then proceed to kick the shit out it. And I'll admit I took some pleasure watching the god of neoclassical economics, Milton Friedman, hang himself with his own rope, for the most part the film criticizes endlessly into a cycle of despair. A cycle that seems perhaps perversely enjoyable to a certain breed of leftist. Count me out, I exit at the point of inflection. Critique ultimately breeds more critique and so its time to jump back and move on.

see also:
The Corporation, Take 1 (of 3), Propaganda

Abstract Dynamics: The Corporation, Take 3 (of 3), Constructions

The Corporation, Take 1 (of 3), Propaganda:

The Corporation - A film by Mark Achbar, Jennifer Abbott, and Joel Bakan is some damn good leftist propaganda. Be even better where it 40 minutes shorter (cut Noam no pleasure Chomsky please...) but well worth watching. The corporation as a psychopath is brilliant meme to propagate, let it spread. Propaganda is a good thing, Emma Goldman proudly produced it, todays left could gain a lot taking that perspective. Hopefully a couple kids with some free time and a copy of Final Cut Pro will do just that and make a good piece of propaganda even better.

see also:
Abstract Dynamics: The Corporation, Take 2 (of 3), The Permanent Critique

Abstract Dynamics: The Corporation, Take 3 (of 3), Constructions

The "Return" of Class

It's no accident that the ruling alliance lost heavily in Andhra Pradesh and in Tamil Nadu, precisely the states that wooed information technology giants such as Microsoft to set up shop, turning sleepy "second cities" such as Madras, Bangalore and Hyderabad into new-tech boom towns. That's because while the rich got richer, the fortunes of the poor, such as the farmers of Andhra, declined year by year. The gulf between India's rich and poor has never looked wider than it does today, and the government has fallen into that chasm.

- Salman Rushdie on India's New Era

Government Markets

Using Capitalism to Clean the Sky is the article title, but oddly enough the "capitalism" they describe is created by the government. Hmmmm.

Specifically the article talks about environmentalists buying up licenses to release sulfur dioxide into the air. Licenses to pollute. Licenses created by the government. True believers in markets like to hype up their efficiency which is about as polluted a word as you can get... Ironically it seems it would perhaps be more efficient if government just released less licenses, wouldn't it?

Yes and no. The problem with direct government regulation of industry is generally not an issue of inefficiency, but of rigidity, power and conflict. When a government directly regulates an industry, it imposes its power and forces the industry into the rigidity of regulation. This places government and industry into direct conflict with each other, the creation of an economic war.

When the government creates a market of regulation, the government and industry are no longer in conflict, but are now working in cooperation, they are partners in a market. In exchange for the power to directly regulate the industry, the government gets the power to regulate the market. The relationship between government and industry is no longer rigid, but instead fluid.

As for whether governments understand how to use this power to regulate the markets they have created, that is a story for another day.

The New Union

My instincts have been screaming loud that unions are back en vogue. A consequence perhaps of Bush's 19th century economics? Have yet to find any hard evidence of a trend, but with MTV News' Gideon Yago saying things like: "all my friends are doing freelance labor that is not collectivized and they're being denied certain benefits because there's this cult of executives . . . " it looks a lot like a trend about to be realized.

Now of course its the 21st century so the first that happens is people sampling the graphics... The logo above is for the Boston Hotel Employees and Restaurant Employees Union Local 26, looks pretty good doesn't it? But issues like employment and exploitation hit at levels far more visceral then the visual. Which means labor in the streets, picket lines and scabs. For better or for worse, look out for it, or maybe make it happen.

Stated for Future Comment

The market does not generate capitalism, it is capital that generates the markets.