You’ve probably been taught that the “invisible hand” of a “free market” is the most “efficient” way of generating the largest amount of wealth for the largest number of people, and that those who don’t participate in the system are “lazy welfare queens.” It would be best if you disabused yourself of these notions.
I’ll repeat here a thought experiment I’ve mentioned to a number of people over the last day or two: imagine a world in which all labor is automated (and note that you don’t have to get all the way there for the conclusions of the experiment to hold true). The requirement for less intensive human labor should, in theory, ease the burden on everyone. But under a system of dog-eat-dog capitalism, where all wealth must be considered “earned” through engagement in the labor market, and where virtually all jobs are eliminated by ever-increasing automation, the only ones who stand to gain are the oligarchs who own the machines, pulling the strings at the top. The entire economy would reorient itself to serve only the needs of those elites. Do you suppose we might be headed in this general direction? And if so, should we continue full speed ahead? Or should we at the very least pause and consider what the purpose of employment really is, whether it is an end in itself or simply a means to an actual end, that of improved general welfare at the median of society?
Consider this one: if you want economic stimulus through job creation, the most effective way to do so might be something like this:
WASHINGTON—In an effort to boost the economy and promote job growth, representatives from the newly revived Works Progress Administration announced Thursday their plan to dismantle, piece by piece, the 3.25 million cubic yards of concrete forming the Hoover Dam, and then immediately rebuild it. “This is a vital initiative,” said WPA director Ted Doogan, who was appointed last week. “Systematically tearing down such a massive edifice will create at least 25,000 jobs over the next five years. And then reassembling it, using all the same pieces in the exact same configuration, will employ another 25,000 workers. America is back.” Other public works projects currently underway include the bulldozing of libraries, the burning of national forests, and the defacing of public murals, which will be followed by a massive plan to rebuild libraries, revive national forests, and repaint public murals.
Efficiency at its finest, no?
If you happen to be among the lucky ones whose work hasn’t yet been outsourced, automated, or otherwise eliminated, if you are among those who would object to the idea of providing a guaranteed minimum livable income to all citizens, you might ask yourself a few questions: could a robot do your job? How about someone in Bangladesh? Does your work really require any “skills” outside of formatting Excel spreadsheets and keeping an Outlook inbox neat and tidy? Do you have to work with your hands? When was the last time you had to use any aspect of your “higher” education? Is there any creativity or artistry involved on a day-to-day basis? How many times per week, or even per day, do you find yourself unable to engage in the activities from which you truly derive some pleasure or passion because you must instead act in a way that serves a corporate interest that does not concern you directly? And finally, does your work create any real, lasting wealth, or are you one of the multitudes involved in transforming fossil fuels into garbage?
Now, let’s step back for just a moment. I don’t mean to suggest that all jobs are worthless, or that the idea that anyone who does one deserves no more wealth than someone who does literally nothing except sit on the couch watching reruns of Family Guy. I do mean to suggest, however, that such a person in many cases creates the same aggregate value as someone who works day in and day out, and in some cases more value (considering the number of business models predicated on the creation of negative value and the outsourcing of unpaid externalities). And considering any of the above criteria, can you really honestly say to yourself that someone not engaged in this activity does not have the right to a decent standard of living? What about those who are entirely able and willing to contribute to the creation of value for society in some way, but whose entreaties to do so are rejected by the ruthless inefficiencies of the corporate economy? Do they deserve hot meals? Is it really a better economic model to force someone to “earn” her keep serving poison to the masses at Burger King than to simply pay her to stay at home doing nothing?
Oh, whoops, this one is proprietary! Another great example of how large corporations create positive wealth for society at large, no? Ah, well, at least you can still watch it on YouTube…
Let’s return briefly to the idea of negative externalities, and how much of our economic system is oriented around encouraging people to take jobs that promote them, at the expense of the public’s general welfare. Externalities are a lot more important than most economists assume. In many cases, they are the very heart of the matter, the basic reason why one choice is better or worse than another (and remember, kids: economics is about making good choices, not just about maximizing profit for the corporation). Most economic analysis either ignores externalities entirely or at the very most treats them as some kind of side consideration, perhaps shifting around some prices but too difficult to bother including in any economic model. But consider the following claim, some variation of which we’ve seen from a number of related vested interests:
“Continuing to burn coal creates more jobs than solar or wind power because it maintains the need for coal miners.”
And why is it that the dirtiest fuel creates this particular economic “benefit”? Precisely because it requires continual depletion of a non-renewable resource! Now, you try and tell me there is any real value in maintaining these jobs for their own sake. So we don’t even need to consider how our present economic system treats any of the other externalities of coal burning, and there are many, all of which “add” value to the economy in the form of jobs (in the health care and environmental remediation sectors) and an increase in the GDP through their management, to the extent that they are managed. Just the very nature of the activity is, in itself, a negative externality to society as a whole: it permanently destroys a resource for all time, making the next round of coal that much harder to find and burn. And there are still those out there who believe the game we’re playing isn’t rigged to make bad choices?
Now how about this one: Michael Vick. The man gets paid bajillions. What value has he created? He has tortured dogs, but even setting aside that negative value, let’s consider just what it is that he does that enables him to “earn” his keep: he’s good at tossing around a dead pig. What value does that create? Well, for one thing, it inspires many television viewers to get piss-drunk and gorge themselves on nachos while living vicariously through a machismo colloseum spectacle. What a great example for the children! And another type of value he creates: by getting more people to tune in through his display of athletic prowess, he creates lots of revenue for advertisers. You know, those corporate parasites who make their living by turning the very premise of free-market capitalism on its head: convincing people to buy products that won’t benefit them through misrepresentation and manipulation in lieu of the “information” that is supposed to be the greatest asset to the perfectly rational economic human consumer.
The list goes on. Ke$ha. Charles Koch. Lloyd Blankfein. T. Boone Pickens. R.J. Reynolds. Coca-Cola. The entire prison industry. All of them, making fortunes by taking advantage of unpaid externalities that vastly outweigh any positive benefit to society. For every instance you can find of a millionaire or billionaire who has transformed civilization for the better, I can come up with ten examples of those who make their fortunes by turning fossil fuels into garbage. At some point, we have to ask ourselves: where does it all end?
Real Wealth? It’s Gone Daddy Gone…
I’ll go ahead and end this one on a positive note: you only live once, so stop worrying about it and go do something you really enjoy! I myself am going to go make some art, and create something of real value.













