this post was submitted on 18 Feb 2024
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The idea that we are entering an era of techno-feudalism that will be worse than capitalism is chilling and controversial. We asked former Greek finance minister Yanis Varoufakis to elucidate this idea, explain how we got here, and map out some alternatives.

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[–] [email protected] 97 points 8 months ago (4 children)

This is always the goal of capitalism, no need to give it some alternative name on order to white wash the brand.

The answer is Democratic socialism. It's our stuff they're stealing, we can take it back.

[–] [email protected] 28 points 8 months ago (1 children)

Capitalism isn’t a form of government the way democratic socialism is? But to your point, even Adam Smith realized the problems with a legal and governmental system that is controlled by corporations to be a terrible idea. He was well aware that profit motives without limit leads to mistreatment of individuals.

[–] [email protected] 18 points 8 months ago (1 children)

Yes, I'm not implying capitalism is a form of government. I'm saying the form of government best suited to containing the excesses of capitalism is Democratic socialism.

[–] [email protected] 9 points 8 months ago (1 children)

I’d like to think most democracies would enact some socialist policies if there was less money involved in politics… but I’m not sure what the best way to prevent that is.

You can craft laws but the legal system is also profit driven. And you’d need some way to either prevent corruption or get the motivations to line up correctly. But I can’t think of any practical solutions that also align with freedoms.

[–] [email protected] 9 points 8 months ago (1 children)

My perspective is that the larger the organization is, the more likely it'll get a carve-out in the law. The more complex the law, the more carve-outs special interests get.

So making more laws isn't the solution here, we should be striving to make simpler laws. For example, instead of a complex system of carbon emissions standards for vehicles based on type, just charge a carbon tax that approximates the cost of removing that carbon. The former gave us massive SUVs because they're regulated as light trucks instead of passenger cars (so they have lighter regulations), the latter would encourage higher efficiency without a slew of regulations.

get the motivations to line up correctly

That's the preferred solution imo.

But I can’t think of any practical solutions that also align with freedoms.

A lot of leftists look at government as the hammer to solve problems. Sometimes that's the right approach, but often it's not.

What seems to work consistently is to make bad things expensive/criminal. If people die due to negligence (e.g. irresponsible cost cutting), put anyone involved in jail. If the payoff is higher than the penalty for bad behavior, increase the penalty.

[–] [email protected] 1 points 8 months ago (1 children)

Yeah it would be nice if we could simplify instead of add a bunch of special cases.

However it’s easier said than done. In your example for carbon tax, how do you determine the cost of removing carbon? Does creating a new solar/wind power plant count? Does increasing efficiency in an existing home count? What’s the difference between that and just paying for carbon capture? This is what the carbon offset economy was supposed to be about but it’s ultimately difficult to implement correctly and inherently full of complexities. I’m not saying we shouldn’t try, but it’s really hard to simplify some things.

I think there’s evidence to show that even though punishments may be heavy, if the chance of getting caught is low people will still do it. So that means you’d need to increase surveillance and enforcement which comes with it’s own issues.

[–] [email protected] 3 points 8 months ago

how do you determine the cost of removing carbon

Estimate. Start with a low estimate for the social cost of carbon and see how the market reacts. At the same time, we can provide grants for carbon sequestration projects, but no subsidies for categories of solutions.

Does creating a new solar/wind power plant count?

No, solar/wind would also pay a carbon tax based on their manufacturing processes, though that would be a lot less than fossil fuel generation.

I'm not a fan of subsidies since those encourage "creative accounting," and instead prefer simple, quantitative penalties.

This is what the carbon offset economy

No, the carbon offset economy was supposed to be a way to allow creative accounting to limit responsibility.

If an org wants to install renewables to offset some of their energy use, then they need to actually use the energy to offset their energy use, not just tally it up. I don't care about generation numbers, I care about tons of CO2 and other emissions.

if the chance of getting caught is low people will still do it

Right, so increase the chance that cheaters will get caught. Set default emissions numbers to a high (but reasonable) number based on worst case estimates, and require orgs to prove they're emitting less. Do it for all imports and domestic industries alike so it's fair.

Then randomly audit after approval. If companies get caught, fine and revert to the high estimate until they prove they've fixed their accounting (perhaps after some number of years of correct reports). This should be highly automatable, and I'm guessing most domestic orgs already have high quality numbers.

That's a really simple solution since there's no complex adjustments based on local offsets, just number of tons emitted. The only tricky business is sequestration, and orgs would need to prove it's actually sequestered.

[–] [email protected] 4 points 8 months ago (2 children)

Democratic socialism is run by capitalism. Sweden is actually more capitalist than America.

[–] [email protected] 23 points 8 months ago* (last edited 8 months ago)

Social democracy is a system that is completely different from democratic socialism. SocDems are capitalists, DemSocs are absolutely not.

[–] [email protected] 19 points 8 months ago (1 children)

Also the Netherlands is still very much capitalistic while having much more protections for their citizens.

This isn’t a blanket “capitalism bad”, it’s the fact we allowed our country to be bought out by capitalism.

[–] [email protected] -1 points 8 months ago (1 children)

Yeah sure… it worked great for Chile. Unless there is a wave of democratic socialism all over the western world, specially the US, all at the same time, it’ll just be squashed by fascism backed by the US and friends.

The only real solution that has worked before is a communist revolution. Like it or not.

[–] [email protected] 0 points 8 months ago (1 children)

The only real solution that has worked before is a communist revolution.

You have an interesting concept of something "working".

The actual solution that worked before is trust busting and Keynesian economic policy.

[–] [email protected] 0 points 8 months ago (1 children)

What is your definition of working? I’d say communist revolutions have indeed worked. I base that on data, facts and the material conditions of places that had a revolution compared to countries in similar economic and geopolitical situations.

Cuba is doing much better than most Latin American countries. In most areas it’s doing MUCH better.

China is doing infinitely better than any other comparable country, like India. It’s not even a comparison.

The USSR was also doing much better than any country in a comparable situation when it did exist.

How did these revolutions “not work”?

[–] [email protected] 2 points 8 months ago

Cuba is doing much better than most Latin American countries. In most areas it’s doing MUCH better.

I was just in Cuba last year. A doctor makes $35 per month. The cab to the airport cost almost that much. A cab drive makes more than a doctor's monthly salary from two fares. Their money is ridiculously screwed up. The official exchange rate is something around 24 CUP to the dollar. But at the airport it's like 1/3 that value. And in the black market it's 1/6 that value. People live in poverty while the government buildings are immaculate marvels. The people I talked with there know how messed up the country is.

China is doing infinitely better than any other comparable country, like India.

You mean the country where capitalism is thriving and labour unions are illegal? Where billionaires dominate the ruling party? China is communist in name only.

The USSR was also doing much better than any country in a comparable situation when it did exist.

It was doing great... until it collapsed? Great success story!

Sorry but whatever you're reading isn't very accurate.