The Student Room Group

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DeuceSevenOff
The problem is "free" encompasses economic, political, civil, etc.

If China maintains State Capitalism in the long run, then it may be possible to have much economic freedom but no political freedom and restricted civil freedom at the same time.

Assuming "state capitalism" isn't an oxymoron... a China with economic freedom but no political freedom is still freer than a China with neither economic nor political freedom.
Reply 41
There is no such thing as a public good. All services can be provided by the market, cheaper and more politely than the state.
Collingwood
Assuming "state capitalism" isn't an oxymoron... a China with economic freedom but no political freedom is still freer than a China with neither economic nor political freedom.


Well, yes, but that may not necessarily bring with it the political and civil freedoms Western society is accustomed to.
TheVlad
There is no such thing as a public good. All services can be provided by the market, cheaper and more politely than the state.


Umm, interesting opinion...but no. Tell me, how would you expect the private sector to provide us with a judicial system, prisons, national defence, street lighting, roads, national power grid, etc.?
DeuceSevenOff
The problem is "free" encompasses economic, political, civil, etc.

If China maintains State Capitalism in the long run, then it may be possible to have much economic freedom but no political freedom and restricted civil freedom at the same time.


State capitalism really isn't capitalism at all, but amounts to corporatism.
A free market, with little red tape, government intervention and therefore increased power, can be good for innovation, efficiency ect, but can also harm the consumer. Without regulation of prices, services and wages, the firm can prosper freely whilst the consumer looses out. I guess it depends which way you look at it.
...but even if Keep_it_Unreal's economic fallacies held water, I don't see how "causing harm to the consumer" makes the society any less free. How can someone deny that expanding freedom reduces it?
DeuceSevenOff
Umm, interesting opinion...but no. Tell me, how would you expect the private sector to provide us with a judicial system, prisons, national defence, street lighting, roads, national power grid, etc.?


Anarchism and the Public Goods Issue

Market-Chosen Law

Anarchy and Efficient Law

The Myth of the Rule of Law

Police, Courts and Laws - On the Market

Critique of Tyler Cowen's "Law as a Public Good"

Legal Systems Under Anarcho-Capitalism

That's just law, and there are plenty more if you're not convinced. Let me know when you're done reading them and we can move on to another topic.
SolInvictus
State capitalism really isn't capitalism at all, but amounts to corporatism.


It may be a matter of semantics, but my point is that in China's gradual transition from a command economy to free market economy, the government may maintain all of its restrictions on political and civil freedoms.


Sounds interesting, but debating the single example of the judicial system being a public good is besides the point I made.

Someone said [wrongly] that:
Originally Posted by TheVlad
There is no such thing as a public good. All services can be provided by the market, cheaper and more politely than the state.


There are examples of public goods that are incontrovertible. Some goods are quite simply non-rival and non-excludable by nature. For example, street lighting is most certainly not rival in consumption, and once provided, is non-excludable. Same goes for clean air. Same goes for national defence.

Are there anarcho-capitalist solutions to those?
Collingwood
...but even if Keep_it_Unreal's economic fallacies held water, I don't see how "causing harm to the consumer" makes the society any less free. How can someone deny that expanding freedom reduces it?


Yeh, I understand what you mean. I suppose you could say in imposes upon their economic freedom of spending ect, but then that's a bit dodgy... :p:
DeuceSevenOff
Sounds interesting, but debating the single example of the judicial system being a public good is besides the point I made.

Someone said [wrongly] that:


There are examples of public goods that are incontrovertible. Some goods are quite simply non-rival and non-excludable by nature. For example, street lighting is most certainly not rival in consumption, and once provided, is non-excludable. Same goes for clean air. Same goes for national defence.

Are there anarcho-capitalist solutions to those?


I'm more than happy to argue the theory of public goods with you, but before we get going can you explain

i) precisely what you mean by a public good

ii) why it is that the free market can't provide them (be careful: if, as I think you might, you define a public good as non-excludable and non-rival, bear in mind that it doesn't at all automatically follow that they are 'under provided' by the free market. After all, pressing the button on a pelican crossing would not be under supplied, even though those who don't press it free-ride of those who do).

And yeah, there are plenty of anarcho-capitalist solutions but I'd like to get our terms straight before we carry on.
DrunkHamster
I'm more than happy to argue the theory of public goods with you, but before we get going can you explain

i) precisely what you mean by a public good

ii) why it is that the free market can't provide them (be careful: if, as I think you might, you define a public good as non-excludable and non-rival, bear in mind that it doesn't at all automatically follow that they are 'under provided' by the free market. After all, pressing the button on a pelican crossing would not be under supplied, even though those who don't press it free-ride of those who do).

And yeah, there are plenty of anarcho-capitalist solutions but I'd like to get our terms straight before we carry on.


As far as I know (in simplistic terms, feel free to correct me):

i) A pure public good is one that is both non-rival and non-excludable in nature.
ii) The problem with non-excludability is that you cannot charge a price.
The problem with non-rivalry is that charging a price prevents someone who could derive utility from an extra unit of the good at zero marginal cost of consumption from doing so, so welfare is lost. Either way, the price mechanism fails in bringing an efficient outcome.

I'm not debating solutions (I'm no expert on the subject) and am merely arguing that 1) public goods exist (by the above definition) and 2) the free market fails for pure public goods. I cannot understand how these two points can't be true.
Reply 53
/snip

That problem isn't exclusive to non-rivalrous goods. Non rivalry doesn't really create a (new) problem
Reply 54
I've given up debating over whether or not anarcho-capitalism would work because DH and co inevitably fall back on "You can't say that would happen, because there have never been perfectly free markets", which produces something of an impasse. As Bismarck says, it's a similar problem to that faced when arguing with Marxists.
Reply 55
Bismarck
I think you're getting into the same problem as the Marxists here. You're trying too hard to prove why something is theoretically impossible, while ignoring the fact that it's highly impractical and hasn't worked in modern times. For example, Somalia has had about as close as one can get to anarchy over the last decade and a half. Where is the miraculous economic growth there?


Presumably it is there, it's just focused in the "judicial and military" sector of the purely private economy...
Apagg
That problem isn't exclusive to non-rivalrous goods. Non rivalry doesn't really create a (new) problem


Which problem? I don't quite follow.
Reply 57
"The problem with non-rivalry is that charging a price prevents someone who could derive utility from an extra unit of the good from doing so, so welfare is lost. Either way, the price mechanism fails in bringing an efficient outcome."

Given that all goods (to the point of satiation) generate extra utility as consumption increases, imposing any price will result in a welfare loss for the consumer.
Apagg
"The problem with non-rivalry is that charging a price prevents someone who could derive utility from an extra unit of the good from doing so, so welfare is lost. Either way, the price mechanism fails in bringing an efficient outcome."

Given that all goods (to the point of satiation) generate extra utility as consumption increases, imposing any price will result in a welfare loss for the consumer.


Oh right I see; yeah, I fudged the definition. I meant that charging a price prevents someone who could derive utility from an extra unit of the good at no extra cost to anyone else from doing so.
Reply 59
Better :smile: Although you need A price because there is a cost to production. Otherwise there's a welfare loss to the producer. It's not an inefficiency as such. (at least, not in the sense that beginning economics teaches)

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