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quickly
Mar 7, 2012

Filippo Corridoni posted:

what the hell is this ridiculousness about philosophy? Libertarianism is an elitist far-right movement which was invented by lobbyists for the anti-new dealer wing of american capitalism (composed of heavy manufacturers, industralists, and all the bankers giving them credit) trying to make their lassiez-faire ideals survive in a postwar world of government intervention:

Philosophy has everything to do with it; libertarianism is philosophical to its core. Whether so-called libertarians live up to the philosophical aspirations of libertarianism or not, the libertarian critique of the state, authority, and coercion, must be taken into account. It's simply ridiculous to claim that libertarianism is an "elitist far-right movement invented by lobbyists," since Proudhon, Stirner, Tucker, Bakunin, Goldman, and even Chomsky and Marx, should rank amongst the foremost libertarians in the Western intellectual tradition. I'm also slightly drunk, so take what I say with a grain mound of salt. In any case, I think that libertarianism mounts a formidable philosophical critique of traditional structures of authority, and this should be taken seriously. Perhaps I'm missing the point.

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Absurd Alhazred
Mar 27, 2010

by Athanatos

quickly posted:

Philosophy has everything to do with it; libertarianism is philosophical to its core. Whether so-called libertarians live up to the philosophical aspirations of libertarianism or not, the libertarian critique of the state, authority, and coercion, must be taken into account. It's simply ridiculous to claim that libertarianism is an "elitist far-right movement invented by lobbyists," since Proudhon, Stirner, Tucker, Bakunin, Goldman, and even Chomsky and Marx, should rank amongst the foremost libertarians in the Western intellectual tradition. I'm also slightly drunk, so take what I say with a grain mound of salt. In any case, I think that libertarianism mounts a formidable philosophical critique of traditional structures of authority, and this should be taken seriously. Perhaps I'm missing the point.

You're thinking of the wrong libertarianism if you're putting Chomsky and Marx in this basket. This thread is pretty much about right-libertarianism, so yes Stirner and Tucker, maybe Proudhon and Bakunin, no Goldman. This is a libertarianism that is purely about property above all else; so basically a sanitized form of feudalism, with the appropriate level of critique of state.

quickly
Mar 7, 2012

Absurd Alhazred posted:

You're thinking of the wrong libertarianism if you're putting Chomsky and Marx in this basket. This thread is pretty much about right-libertarianism, so yes Stirner and Tucker, maybe Proudhon and Bakunin, no Goldman. This is a libertarianism that is purely about property above all else; so basically a sanitized form of feudalism, with the appropriate level of critique of state.

I tend to consider the moral core of libertarianism to be constituted by the intuition that individuals should be free to pursue their goals and develop their capacities as persons. In this sense, I think that the reservation about Proudhon and Bakunin, and certainly about Chomsky and Marx, is mistaken, since each is concerned with precisely those goals. I disagree with the right-libertarians about private property, but don't disagree with the libertarians generally. For this reason, I think that even right-libertarians must be taken seriously in their critique of authority, the state, and coercion. Other than that, point well taken.

quickly fucked around with this message at 08:43 on Jul 21, 2014

Hodgepodge
Jan 29, 2006
Probation
Can't post for 226 days!

quickly posted:

I tend to consider the moral core of libertarianism to be constituted by the intuition that individuals should be free to pursue their goals and develop their capacities as persons. In this sense, I think that the reservation about Proudhon and Bakunin, and certainly about Chomsky and Marx, is mistaken, since each is concerned with precisely those goals. I disagree with the right-libertarians about private property, but don't disagree with the libertarians generally. For this reason, I think that even right-libertarians must be taken seriously in their critique of authority, the state, and coercion. Other than that, point well taken.

In that case, your definition of libertarian is greatly at odds with that of the rest of the world. What you are talking about is closer to humanism, although specifying individuality puts it closer to liberalism (which is not synonymous with libertarianism). Marx really doesn't fit by your definition, since he was quite explicit about restricting the pursuit of individual liberty.

Absurd Alhazred
Mar 27, 2010

by Athanatos

quickly posted:

I tend to consider the moral core of libertarianism to be constituted by the intuition that individuals should be free to pursue their goals and develop their capacities as persons. In this sense, I think that the reservation about Proudhon and Bakunin, and certainly about Chomsky and Marx, is mistaken, since each is concerned with precisely those goals. I disagree with the right-libertarians about private property, but don't disagree with the libertarians generally. For this reason, I think that even right-libertarians must be taken seriously in their critique of authority, the state, and coercion. Other than that, point well taken.

The only critique right-libertarians have of the state is that it infringes upon their rights as feudal lords. That it has all that pesky "voting" and "rule of law" getting in the way of them enjoying their spoils.

How do you put Marx, a critic of the fetishization of private property, anywhere in the same political sphere as people who idolize private property? They are like a caricature of what he says Capitalism is all about.

It doesn't matter what you consider libertarianism to be, we are talking about a modern American movement, not textbook definitions from half a century ago or what people in the UK think. I'm well aware they have left/communist libertarians there, but in the US libertarianism means something different, which this thread has been going into very heavily. As I see it other than "state bad" they have very little in common. They don't agree on why the state is bad, or what a "state" even is, they mean entirely different things by "coercion" (did you know that a homeless person squatting on your doorstep is initiating violence against you?), and are only against authority inasmuch as it stops them from doing things they like.

Hodgepodge
Jan 29, 2006
Probation
Can't post for 226 days!
I suppose it would be a good argument to say that the think-tanks that created the contemporary libertarian movement co-opted a term coined to describe certain strains of socialism.

Mixing those up with the current use of the term without acknowledging how present-day libertarians have radically altered its meaning, then mudding the waters further by conflating both with other socialists and then going further by applying specific elements of the present meaning to an otherwise overly general definition of the term is just confusing and misleading, though.

Pope Guilty
Nov 6, 2006

The human animal is a beautiful and terrible creature, capable of limitless compassion and unfathomable cruelty.
It was either Nozick or Rothbard who openly bragged about having stolen the word "libertarian" from the left-anarchists who invented it.

Also one of many things L. Neill Smith deserves a kick in the nuts for is naming one of the "good guys" in his property-fetish alternate reality novel "The Probability Broach" after Kropotkin.

Rogue AI Goddess
May 10, 2012

I enjoy the sight of humans on their knees.
That was a joke... unless..?

Hodgepodge posted:

I suppose it would be a good argument to say that the think-tanks that created the contemporary libertarian movement co-opted a term coined to describe certain strains of socialism.

R.A. Wilson posted:

Of course, there is an opinion broad in the land that libertarianism does mean a mindless, heartless and mechanical system of medieval dogma. I don’t know how this impression came about, although it probably has something to do with Randroids and other robot Ideologists who occasionally infest libertarian groups. Frankly, I have always loathed being associated with such types and devoutly wish libertarianism could be sharply distinguished from Idolatry and fetishism of all sorts. If liberty does not mean that we can all be more free, not less free, then I need to find a better word than “liberty” to describe my aspirations.

So what would be a good contemporary term for these strains and aspirations?

Hodgepodge
Jan 29, 2006
Probation
Can't post for 226 days!

Ephemeron posted:

So what would be a good contemporary term for these strains and aspirations?

Anarchism. Or liberalism, since half the work has been done anyhow (although that would just make things even more confusing).

Seriously, though, he's acknowledging that the term has been appropriated, which is a prerequisite for anyone who wants to reclaim it.

Humanism also works, if you want the really broad definition that I was responding to.

Jazerus
May 24, 2011


Mr Interweb posted:

Speaking of Milton Friedman, is there a reason people like Ron and Rand Paul love this guy? Sure, he was a really conservative economist, but isn't his biggest claim to fame that he advocated for a really active Federal Reserve, something that Ron/Rand want to completely abolish? Is this just another one of those Reagan/Jesus instances where conservatives admire someone but they have no idea what they've actually done?

Friedman is a libertarian hero in general, not just a Paul one. He ranks up with Hayek, von Mises, etc. in their list of saints and is constantly brought up as the authority on why Keynes was a bad bad man, and why FDR was literally Satan for behaving according to Keynesian principles. Most of the adoration comes from his work "proving" that the New Deal did not alleviate the Depression and his close association with Pinochet's regime, but literally anything Friedman ever said might as well be scripture to the libertarians that aren't really ready to go all in on ancap economics.

Edit: I think his popularity has died down some since 2008 though. Friedman's work is favored by moderate libertarians because it both is and isn't Keynesian, allowing them to feel contrarian without actually advocating a massive upheaval of property rights. There are fewer of those around since cold hard economic reality has driven most of them to either see reality or burrow really deep into the crazy.

Jazerus fucked around with this message at 17:55 on Jul 21, 2014

ProfessorCurly
Mar 28, 2010

Jazerus posted:

Most of the adoration comes from his work "proving" that the New Deal did not alleviate the Depression

This is one of those things that really bugs me. Cards on the table I'm quite a fan of Friedman and his work, but this is not what he said at all. Well, it is but the 'why' is very important here - the New Deal had lots of moving parts and some of them worked contrary to one another. Public works projects to get people employed and out of poverty, coupled with excised taxes on electricity, gasoline and other goods which fell mostly on the working class sort of cancelled each other out. As I recall, he viewed the parts of the New Deal that were essentially "Stop people from starving in the street" as a success and entirely necessary, it's just the economic policies within the new deal were often counterproductive, giving with one hand and taking away with the other (often through regressive taxes that hurt the working man even more disproportionately).

Friedman had a word for what we consider "libertarians" today - anarchists (in the colloquial "we don't want any authority over us, gently caress you dad" sense, not the original sense).

Jazerus
May 24, 2011


ProfessorCurly posted:

This is one of those things that really bugs me. Cards on the table I'm quite a fan of Friedman and his work, but this is not what he said at all. Well, it is but the 'why' is very important here - the New Deal had lots of moving parts and some of them worked contrary to one another. Public works projects to get people employed and out of poverty, coupled with excised taxes on electricity, gasoline and other goods which fell mostly on the working class sort of cancelled each other out. As I recall, he viewed the parts of the New Deal that were essentially "Stop people from starving in the street" as a success and entirely necessary, it's just the economic policies within the new deal were often counterproductive, giving with one hand and taking away with the other (often through regressive taxes that hurt the working man even more disproportionately).

Friedman had a word for what we consider "libertarians" today - anarchists (in the colloquial "we don't want any authority over us, gently caress you dad" sense, not the original sense).

Oh, I know that there is more detail to his analysis than the libertarians present. I never said that the libertarians were using his words honestly, did I? Friedman has been canonized and sanitized for libertarian consumption in many of their publications.

Neeksy
Mar 29, 2007

Hej min vän, hur står det till?
Do libertarians have an answer for the concept of externalities, or do they have to reject its very existence?

If a company's activities poisons a local water supply, why would they, in their own rational economic self-interest, pay for cleanup when it's cheaper for them to do nothing?

Crowsbeak
Oct 9, 2012

by Azathoth
Lipstick Apathy

Neeksy posted:

Do libertarians have an answer for the concept of externalities, or do they have to reject its very existence?

If a company's activities poisons a local water supply, why would they, in their own rational economic self-interest, pay for cleanup when it's cheaper for them to do nothing?

Well its obvious that lawsuits will sole this, of course its also best to be resolved in private arbitration. Because of course the individual has the same power as a large corporation

Pththya-lyi
Nov 8, 2009

THUNDERDOME LOSER 2020
They're also okay with organizations like homeowners' associations that impose fees and regulations on the people who choose to live or work in a certain area. The people there all agreed to follow the rules and pay the fees as a condition of using the space, and they can go somewhere else if they can't (or won't!) meet those terms anymore.

Libertarians also point out that you can "vote with your wallet" for company policies by buying from companies you like and boycotting companies you don't like. (Then they scoff at liberals for doing just that.)

Karia
Mar 27, 2013

Self-portrait, Snake on a Plane
Oil painting, c. 1482-1484
Leonardo DaVinci (1452-1591)

Neeksy posted:

Do libertarians have an answer for the concept of externalities, or do they have to reject its very existence?

If a company's activities poisons a local water supply, why would they, in their own rational economic self-interest, pay for cleanup when it's cheaper for them to do nothing?

Because people will boycott the company, thus reducing their profits. Doesn't matter if they're the only supplier in the area, or they've got good enough PR to cover it up. The ~Free Market~ will settle it, because it's not rational for people to purchase from a company that pollutes, even if they've got no other choice. And if anyone's dumb enough to buy anyway? Well, clearly they rationally chose pollution, as is their free market choice.

That's the big hole in libertarianism for me: the idea that everyone, at all times, balances resource costs perfectly logically. It allows them to conflate purchases with needs, since people obviously analyzed the choices and chose what they need. Thus, the market is at all times heading in the direction that is best for society, by definition what people buy is what they need. People, after all, never purchase something on impulse or for non-logical factors. We are all perfect robots in our perfect economy, except that some of us are better robots than others and naturally rise to the top over the inferior robots.

I suppose this explains why one of the libertarians I know was endorsing teaching calculus to pre-schoolers: if they don't know advanced math and can't balance complicated resource costs, they're utterly screwed. This sounds like a good idea to me, because pre-schoolers are very definitely capable of abstract thought.

*cough cough* BULLSHIT *cough cough*

FADEtoBLACK
Jan 26, 2007

Karia posted:

Because people will boycott the company, thus reducing their profits. Doesn't matter if they're the only supplier in the area, or they've got good enough PR to cover it up. The ~Free Market~ will settle it, because it's not rational for people to purchase from a company that pollutes, even if they've got no other choice. And if anyone's dumb enough to buy anyway? Well, clearly they rationally chose pollution, as is their free market choice.

That's the big hole in libertarianism for me: the idea that everyone, at all times, balances resource costs perfectly logically. It allows them to conflate purchases with needs, since people obviously analyzed the choices and chose what they need. Thus, the market is at all times heading in the direction that is best for society, by definition what people buy is what they need. People, after all, never purchase something on impulse or for non-logical factors. We are all perfect robots in our perfect economy, except that some of us are better robots than others and naturally rise to the top over the inferior robots.

I suppose this explains why one of the libertarians I know was endorsing teaching calculus to pre-schoolers: if they don't know advanced math and can't balance complicated resource costs, they're utterly screwed. This sounds like a good idea to me, because pre-schoolers are very definitely capable of abstract thought.

*cough cough* BULLSHIT *cough cough*

Libertarians always forget the people whose job it is to write the news and to inform also have a tendency to be owned by powerful industrial interests or for those interests to respond to abject criticism by inventing their own studies and news articles. I treat it with the same basic danger that I treat with the religious notion of holy torture. They are so naive they are a danger to others and themselves.

burnishedfume
Mar 8, 2011

You really are a louse...

Pththya-lyi posted:

They're also okay with organizations like homeowners' associations that impose fees and regulations on the people who choose to live or work in a certain area. The people there all agreed to follow the rules and pay the fees as a condition of using the space, and they can go somewhere else if they can't (or won't!) meet those terms anymore.

Libertarians also point out that you can "vote with your wallet" for company policies by buying from companies you like and boycotting companies you don't like. (Then they scoff at liberals for doing just that.)

That seems to go against a lot of what libertarianism is supposedly about. So because my neighbours got together and formed a homeowners' association and decided that the association does not allow for people with homes painted red in their neighbourhood, I suddenly lose my property rights because my neighbours don't like my use of my property? Is the idea that these associations would require 100% approval to form in Libertopia, or they would need 100% approval to pass any restrictions on who can live/have what kind of houses in the area?

woke wedding drone
Jun 1, 2003

by exmarx
Fun Shoe
Inequality is just the genetic nobility of certain bloodlines manifesting.

Karia
Mar 27, 2013

Self-portrait, Snake on a Plane
Oil painting, c. 1482-1484
Leonardo DaVinci (1452-1591)

FADEtoBLACK posted:

Libertarians always forget the people whose job it is to write the news and to inform also have a tendency to be owned by powerful industrial interests or for those interests to respond to abject criticism by inventing their own studies and news articles. I treat it with the same basic danger that I treat with the religious notion of holy torture. They are so naive they are a danger to others and themselves.

I don't see it as naivete. To me, naivete is just believing in stupid things because of inaction: not looking up information, refusing to think about it and synthesize information, have cognitive dissonance between things because you never bother to figure out the connection between them, etc. Libertarianism, on the other hand, requires active effort to believe in it. To believe in it, you have to actively seek out sources supporting it, actively synthesize it, actively find other believers, actively construct a belief framework that allows for that degree of hypocrisy. This makes them far more dangerous, because they actually believe that they've got evidence and rational thought supporting it, and have formed arguments that make sense within their belief system.

Standard right-wing Fox News nutjobs are naive: it's a low-information belief system. Libertarianism is a high-information belief system: it just so happens that all the information is bullshit.

FADEtoBLACK
Jan 26, 2007

Karia posted:

I don't see it as naivete. To me, naivete is just believing in stupid things because of inaction: not looking up information, refusing to think about it and synthesize information, have cognitive dissonance between things because you never bother to figure out the connection between them, etc. Libertarianism, on the other hand, requires active effort to believe in it. To believe in it, you have to actively seek out sources supporting it, actively synthesize it, actively find other believers, actively construct a belief framework that allows for that degree of hypocrisy. This makes them far more dangerous, because they actually believe that they've got evidence and rational thought supporting it, and have formed arguments that make sense within their belief system.

Standard right-wing Fox News nutjobs are naive: it's a low-information belief system. Libertarianism is a high-information belief system: it just so happens that all the information is bullshit.

That is true, I guess I was using naivete as a word to suggest they haven't gone that next logical step of understanding any and all political ideologies are flawed and you have to accept they are an attempt at understanding a way in which the world works, not that the world works in this way. Setting yourself up in any belief system and not continuing to actively participate in the world these systems belong to feels like your just too naive to understand there is more.

Karia posted:

This makes them far more dangerous, because they actually believe that they've got evidence and rational thought supporting it, and have formed arguments that make sense within their belief system.

I mean the low information system works this way too. I believe that once you start to think like this regardless of what level of information you are using that you are being naive. Mostly because even if someone were to get violent over these ideas I immediately forgive the act because if you were to force yourself to believe these things or at least believe you are compelled to believe them that some of us would probably act in those disgusting ways as an attempt to reconcile the real world and the world we believe we exist in.

Pththya-lyi
Nov 8, 2009

THUNDERDOME LOSER 2020

DrProsek posted:

That seems to go against a lot of what libertarianism is supposedly about. So because my neighbours got together and formed a homeowners' association and decided that the association does not allow for people with homes painted red in their neighbourhood, I suddenly lose my property rights because my neighbours don't like my use of my property? Is the idea that these associations would require 100% approval to form in Libertopia, or they would need 100% approval to pass any restrictions on who can live/have what kind of houses in the area?

HOAs are corporations created by real estate developers and then transferred to the homeowners once enough lots are sold, so I wouldn't expect your neighbors to just up and found one. When you buy a lot in the development, you enter into a voluntary contract to abide by the HOA's rules in exchange for a place in the HOA (or at least the promise that you will have a place in it). If you want to paint your home red and your HOA forbids it, you can either 1) use your influence with the HOA to change the rules, 2) move to a place where you are allowed a red house, or 3) suck it up. AFAIK some people can get away with violating regulations as a legacy: my parents were able to get the other members of their HOA to make sure that only modernist houses get built in their development from now on, but they didn't even try to get the non-modernist homes that were already built demolished because that would be too much. American HOAs used to impose covenants that excluded certain types of people (mostly members of certain races), but these were finally outlawed by the Fair Housing Act of 1968. (Source and more information)

Sometimes HOA regulations are onerous - even draconian - but libertarians such as Jim Fedako consider them preferable to governmental regulations because HOA regulations are enforced by voluntary contract.

Pththya-lyi fucked around with this message at 06:52 on Jul 22, 2014

FADEtoBLACK
Jan 26, 2007

Pththya-lyi posted:

HOAs are corporations created by real estate developers and then transferred to the homeowners once enough lots are sold, so I wouldn't expect your neighbors to just up and found one. When you buy a lot in the development, you enter into a voluntary contract to abide by the HOA's rules in exchange for a place in the HOA (or at least the promise that you will have a place in it). If you want to paint your home red and your HOA forbids it, you can either 1) use your influence with the HOA to change the rules, 2) move to a place where you are allowed a red house, or 3) suck it up. AFAIK some people can get away with violating regulations as a legacy: my parents were able to get the other members of their HOA to make sure that only modernist houses get built in their development from now on, but they didn't even try to get the non-modernist homes that were already built demolished because that would be too much. American HOAs used to impose covenants that excluded certain types of people (mostly members of certain races), but these were finally outlawed by the Fair Housing Act of 1968. (Source and more information)

Sometimes these regulations may be onerous, but libertarians such as Jim Fedako consider them preferable to governmental regulations because HOA regulations are enforced by contract.

You sound like having to move because your house can't be red sounds like an actual solution that won't cause problems further down the line. The problem with this thinking is the eventual segregation of ideas or peoples and even under stupid ideas like taste this can exacerbate problems decades down the line. You are basically deciding that collective taste decides where you live and I don't see how that could influence politics, access to education, and access to healthcare at all.

Edit: Sorry, I live in Indiana and I have to deal with this thinking on a daily basis. You were talking about a position you didn't agree with anyway.

FADEtoBLACK fucked around with this message at 07:34 on Jul 22, 2014

burnishedfume
Mar 8, 2011

You really are a louse...

Pththya-lyi posted:

HOAs are corporations created by real estate developers and then transferred to the homeowners once enough lots are sold, so I wouldn't expect your neighbors to just up and found one.

Ah, I think this was my major problem. I thought once the Libertarian revolution happens, existing HOAs would for some reason be dismantled since they were created under the current statist legal/government/economic system, and so neighbourhoods that wanted HOAs would need to form new ones and neighbourhoods that today don't have HOAs might suddenly have them. Since they are created by the developers when they are the majority property owners and then transferred over to the homeowners when enough of them buy lots, there's nothing really for a libertarian to object to and so there's no need to dismantle them or change how new ones get founded.

Pththya-lyi
Nov 8, 2009

THUNDERDOME LOSER 2020

FADEtoBLACK posted:

You sound like having to move because your house can't be red sounds like an actual solution that won't cause problems further down the line. The problem with this thinking is the eventual segregation of ideas or peoples and even under stupid ideas like taste this can exacerbate problems decades down the line. You are basically deciding that collective taste decides where you live and I don't see how that could influence politics, access to education, and access to healthcare at all. Yes, that was sarcastic.

I actually agree with you! Presenting a libertarian argument in the libertarianism thread doesn't mean I agree with the libertarian argument.

FADEtoBLACK
Jan 26, 2007
I've been coming from the I/P thread and I sometimes forget people can have opinions they do not personally support in an effort to talk about it. I'm really sorry.

Bar Ran Dun
Jan 22, 2006




I think the difference between Freidman and the rest can be described this way:

When I read Friedman, I find that he looks at evidence and argues from evidence. That's different than stating with an abstract assertion and arguing from that assertion.

Filippo Corridoni
Jun 12, 2014

I'm the fuckin' man
You don't get it, do ya?

BrandorKP posted:

I think the difference between Freidman and the rest can be described this way:

When I read Friedman, I find that he looks at evidence and argues from evidence. That's different than stating with an abstract assertion and arguing from that assertion.

It all makes sense unless you consider the working-class.



Anatomy of an Economic Miracle posted:

With the arrest of General Pinochet, the usual slime of the right pronounced that his dictatorship created an economic "miracle." We will ignore the "ends justify the means" argument along with the question of why these defenders of "liberty" desire to protect a dictator and praise his regime. Here we concentrate on the facts of the "miracle" imposed on the Chilean people.

The actual results of the free market policies introduced by the dictatorship were far less than the "miracle" claimed by the right. The initial effects of introducing free market policies in 1975 was a shock-induced depression which resulted in national output falling buy 15 percent, wages sliding to one-third below their 1970 level and unemployment rising to 20 percent. This meant that, in per capita terms, Chile's GDP only increased by 1.5% per year between 1974-80. This was considerably less than the 2.3% achieved in the 1960's.

Supporters of the "miracle" pointed to the period 1978 to 1981, when the economy grew at 6.6 percent a year. However, this is a case of "lies, drat lies, and statistics" as it does not take into account the catching up an economy goes through as it leaves a recession. If we look at whole business cycle, rather than for the upturn, we find that Chile had the second worse rate of growth in Latin America between 1975 and 1980. The average growth in GDP was 1.5% per year between 1974 and 1982, which was lower than the average Latin American growth rate of 4.3% and lower than the 4.5% of Chile in the 1960's. Between 1970 and 1980, per capita GDP grew by only 8%, while for Latin America as a whole, it increased by 40% and for the years 1980 and 1982 per capita GDP fell by 12.9 percent, compared to a fall of 4.3 percent for Latin America as a whole. In 1982, after 7 years of free market capitalism, Chile faced yet another economic crisis which, in terms of unemployment and falling GDP was even greater than that experienced during the terrible shock treatment of 1975. Real wages dropped sharply, falling in 1983 to 14 percent below what they had been in 1970. Bankruptcies skyrocketed, as did foreign debt. By the end of 1986 Gross Domestic Product per capita barely equalled that of 1970. Between 1970 and 1989, Chile total GDP grew by a lackluster 1.8 to 2.0% a year, slower than most Latin American countries. The high growth, in other words, was a product of the deep recessions that the regime created and, overall, 20 years of free market miracle had .

The working class
By far the hardest group affected by the Pinochet "reforms" was the working class, particularly the urban working class. By 1976, the third year of Junta rule, real wages had fallen to 35% below their 1970 level. It was only by 1981 that they has risen to 97.3% of the 1970 level, only to fall again to 86.7% by 1983. Unemployment, excluding those on state make-work programmes, was 14.8% in 1976, falling to 11.8% by 1980 (this is still double the average 1960's level) only to rise to 20.3% by 1982. By 1986, per capita consumption was actually 11% lower than the 1970 level. Between 1980 and 1988, the real value of wages grew only 1.2 percent while the real value of the minimum wage declined by 28.5 percent. During this period, urban unemployment averaged 15.3 percent per year. In other words, after nearly 15 years of free market capitalism, real wages had still not exceeded their 1970 levels. Moreover, labour's share in the national income fell from 52.3% to 30.7% between 1970 and 1989. In 1995, real wages were still 10% lower than in 1986 and 18% lower than during the Allende period!

The real "Miracle"
However, the other main effect of the Pinochet years was the increased wealth of the elite, and for this that it has been claimed as a "miracle." Between 1970, the richest 10% of the population saw their share in the national income rise from 36.5% in 1980 to 46.8% by 1989 (the bottom 50% saw their share fall from 20.4 to 16.8%). In the words of one of the best known opposition economists, "the Chilean system is easy to understand. Over the past twenty years $60 billion has been transferred from salaries to profits."

Thus the wealth created by the economic growth Chile experienced did not "trickle down" to the working class (as claimed would happen by "free market" capitalist dogma) but instead accumulated in the hands of the rich. Just as it did not in the UK and the USA.
The proportion of the population below the poverty line (the minimum income required for basic food and housing) increased from 20% to 44.4%. On the other hand, while consumption for 80% of Chilean households dropped between 1970 and 1989, it rose from 44.5% to 54.6% for the richest 20% (the poorest 20% suffered the worse drop, from 7.6% to 4.4%, followed by the next 20%, from 11.8% to 8.2%, then the next 20%, 15.6% to 12.7%).

State Aid
The Pincohet's regime support for "free market" capitalism did not prevent it organising a massive bail-out of the economy during the 1982 recession -- yet another example of market discipline for the working class, welfare for the rich. As was the case in the USA and the UK.
The ready police repression (and "unofficial" death squads) made strikes and other forms of protest both impractical and dangerous. The law was also changed to reflect the power property owners have over their wage slaves and the total overhaul of the labour law system which took place between 1979 and 1981 aimed at creating a perfect labour market, eliminating collective bargaining, allowing massive dismissal of workers, increasing the daily working hours up to twelve hours and eliminating the labour courts. Little wonder, then, that this favourable climate for business operations resulted in generous lending by international finance institutions.

Of course, the supporters of the Chilean "Miracle" and its "economic liberty" did not bother to question how the suppression of political liberty effected the economy or how people acted within it. They maintained that the repression of labour, the death squads, the fear installed in rebel workers would be ignored when looking at the economy. But in the real world, people will put up with a lot more if they face the barrel of a gun than if they do not. And this fact explains much of the Chilean "miracle." According to Sergio de Castro, the architect of the economic programme Pinochet imposed, dictatorship was required to introduce "economic liberty" because:
"it provided a lasting regime; it gave the authorities a degree of efficiency that it was not possible to obtain in a democratic regime; and it made possible the application of a model developed by experts and that did not depend upon the social reactions produced by its implementation."
In other words, "economic liberty" required rule by technocrats and the military. The regime's pet "experts" used the Chilean people like laboratory rats in an experiment to make the rich richer. This is the system held up by the right as a "miracle" and an example of "economic liberty." Like the "economic miracle" created by Thatcher, we discover a sharp difference between the facts and the rhetoric. And like Thatcher's regime, it made the rich richer and the poor poorer, a true "miracle."

So, for all but the tiny elite at the top, the Pinochet regime of "economic liberty" was a nightmare. Economic "liberty" only seemed to benefit one group in society, an obvious "miracle." For the vast majority, the "miracle" of economic "liberty" resulted, as it usually does, in increased poverty, unemployment, pollution, crime and social alienation. The irony is that many on the right point to it as a model of the benefits of the free market.

Bar Ran Dun
Jan 22, 2006




And that has what to do with the differences between neo-liberals and libertarians?

Bar Ran Dun fucked around with this message at 15:46 on Jul 22, 2014

Filippo Corridoni
Jun 12, 2014

I'm the fuckin' man
You don't get it, do ya?

BrandorKP posted:

And that has what to do with the differences between neo-liberals and libertarians?

They're equally terrible. Libertarians talk a lot of nonsense about individualism because they're pushing ideology, neoliberals talk a lot about economic growth because they're pushing technocratic policy. They're both still wrong about everything.

E:literally the only difference is that libertarians talk about the free market being a moral imperative no matter what and neoliberals pretend like they don't

Bar Ran Dun
Jan 22, 2006




I basically agree with this: Libertarians talk a lot of nonsense about individualism because they're pushing ideology, neoliberals talk a lot about economic growth because they're pushing technocratic policy.

While disagreeing with this: They're equally terrible.

One those things is significantly more worse and more dangerous than the other.

Bar Ran Dun fucked around with this message at 16:01 on Jul 22, 2014

Pththya-lyi
Nov 8, 2009

THUNDERDOME LOSER 2020
As you may recall, I'm on the Ayn Rand Institute's email list. Yesterday they sent me an email with this completely unironic title:


Edit: Horseshoetheory.jpg

Pththya-lyi fucked around with this message at 16:17 on Jul 22, 2014

wateroverfire
Jul 3, 2010

Wow. That is a really terrible unsourced undergrad Lat Am Studies paper.

Captain_Maclaine
Sep 30, 2001

Pththya-lyi posted:

As you may recall, I'm on the Ayn Rand Institute's email list. Yesterday they sent me an email with this completely unironic title:


Edit: Horseshoetheory.jpg

Wow, better bone up on my Correct Mao Zedong Thought then.

Talmonis
Jun 24, 2012
The fairy of forgiveness has removed your red text.

wateroverfire posted:

Wow. That is a really terrible unsourced undergrad Lat Am Studies paper.

By all means, tell us more about how great Pinochet's regime was.

wateroverfire
Jul 3, 2010

Talmonis posted:

By all means, tell us more about how great Pinochet's regime was.

It wasn't great. It was loving scary. The article above is total poo poo, though, and the view that everything was happily chugging along and then the dictatorship happened and the Chicago Boys wrecked everything is wrong.

CharlestheHammer
Jun 26, 2011

YOU SAY MY POSTS ARE THE RAVINGS OF THE DUMBEST PERSON ON GOD'S GREEN EARTH BUT YOU YOURSELF ARE READING THEM. CURIOUS!
Well you are more than capable of actually posting why its wrong.

Other than it offends your preconceived notions.

FADEtoBLACK
Jan 26, 2007
I don't understand why people promote Ayn Rand, she clearly didn't know what she was talking about and even said women shouldn't lead countries right?

StandardVC10
Feb 6, 2007

This avatar now 50% more dark mode compliant

FADEtoBLACK posted:

I don't understand why people promote Ayn Rand, she clearly didn't know what she was talking about and even said women shouldn't lead countries right?

Turns out that a lot of people are just waiting for the chance to morally justify taking everything that they can.

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Halloween Jack
Sep 12, 2003
I WILL CUT OFF BOTH OF MY ARMS BEFORE I VOTE FOR ANYONE THAT IS MORE POPULAR THAN BERNIE!!!!!

FADEtoBLACK posted:

I don't understand why people promote Ayn Rand, she clearly didn't know what she was talking about and even said women shouldn't lead countries right?
It's crappy science fiction that lionizes rich white people and dresses it up as moral philosophy. Crappy science fiction and self-satisfied moralism are very popular with rich white people.

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