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Originally Posted by jessicaSAR
Ok, this is one ethical standpoint, but, while persuasively stated, it is not the only one. In order to accept that there can never be anything unethical about sellling luxury items at market prices, one must also assume that the existence of said luxury items in no way impacts the existence/quality/availability of necessity items. If drug companies are busy producing viagra because there is a great luxury market for it, they are not investing in the production of drugs for aids or diabetes or cancer etc. So the line between luxury items and necessity items is not as clear cut as Angelica's perspective suggests.
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Without going into detail about your example about the drug industry (whose business model is based on government enforced immaterial rights regulation which are a violation to natural property rights), cloth diapers remain luxury items. If you follow your line of thought to the end, then not a single person on this planet is entitled to produce a single luxury item as long as there is any primary need unmet. Where do you draw the line? When is a SAHM allowed to produce the first luxury item? When there are no homeless people in the US? When there is no hunger in Africa? When we have a cure for AIDS (I bet she could do her share in the research too)? Why are you using your luxury item (computer and internet service) at the moment for mostly entertainment purposes as opposed packing canned food for the Asian tsunami victims. But that’s not your responsibility or moral obligation. People are entitled to produce luxury items even when there are unmet primary needs in the world as there will always be. But please, since you seem to disagree, were would you draw the line and how would you enforce this? And in general, who should draw the line?
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Originally Posted by jessicaSAR
Second, saying that something is the eqivalent of a communist/socialist ideology is not in and of itself an argument against it. One must explain why such an ideology is undesireable.
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I think there has been enough theoretical and empirical evidence the last century to make it rather clear why a communist/socialist system is not desirable and therefore I won’t elaborate on this point. If anyone truly wants to get into a debate about this, please PM me. To state it shortly, in a system where prices are decided by individuals (as opposed to bids and offers on the free market), we need a regulator. Who get to be this regulator? How is he elected? What about those individuals who do not accept that the fruits of their labor is taken to the common pool? A socialist system requires either the use of violence or the threat of violence to function. Thus, being the only non-violent alternative, the free market is clearly the more just one. If you think otherwise how do you justify the use of violence? You haven't mentioned violence thusfar, and I suspect you haven't accepted that element in a larger communist/socialist system yet. If you think that violence is not necessary in such a system and that it can function simply based on inducing guilt in people, then name a single example where this has happened. (You can have a small commune, from 10-100 individuals where a commune can work to a certain extent simply with the use of inducing guilt, but never a nation from 10,000 to however many million individuals where this can work). It's important to note that inducing guilt is only appropriate on ethically just grounds. If not, people will eventually realize that their behavior was in no way morally wrong and begin to resent those which they have been performing charity for, since they won't see them as appreciative, rather as arrogant, and themselves as manipulated. This will contribute to social division.
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Originally Posted by jessicaSAR
Third, what is the meaning of "fair market value?" What makes "market" value better than "use" value, or the value of labor and materials? We are often told it is because the market is not biased. It is the "invisible hand," and hence not subjective in the way that other determinations of value might be. But, the market does not exist in a vacuum. Markets exist in real worlds with real inequalities and injustices, and inevitably reflects those injustices. There is nothing sacred about the market. It is only as fair and just and valuable as we make it. A "market" requires an infrastructure of buyers and sellers (ours happens to be characterized by extremes of wealth and poverty), it requires rules of the game to govern its operation, and it requires a way to generate demand for items (such as a discussion forum where hype can create artificial demand). All of these things are subjective and biased. Ebay, for example, has rules against bidding up one'e own item. According to Angelica's ethics, this rule is unnecessary. As long as the buyer "voluntarily" (and we could also debate the meaning of voluntary) puts in her bid, why should it matter if the seller is jacking up the price by bidding on her own item?
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Fair market value is based on VOLUNTARY bids and offers. There is no threat of violence or confiscation of property involved. Just two parties believing they are both better off doing the transaction based on their bids and offers. This aspect of “voluntarity” makes market value better. How is your ‘use’ value determined? Who determines it? How is it enforced if the parties do not happen to voluntarily agree on it?
Your notion that the value of a good could be the labor and material put into it is fundamentally flawed. Assume that I would decide to build a car. After educating myself for years and constructing it manually, I would finish by maybe 2010 if I’m lucky. I would have put easily more than $200,000 of labour + material cost into building this thing which would be light-years away from factory produced vehicles. Can I then assume to sell it to you for $200,000? It is after all a “fair price” :the labour and material put into it.
The fair vale of an item is what somebody is
voluntarily willing to pay for it, that is the market value, nothing else. Period.
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Originally Posted by jessicaSAR
Finally, perhaps it is worth thinking about why it is that acts of charity can raise someone's standing in a community. Presumably we honor such acts because we see value in placing the preservation of communal ties (and the mitigation of poverty, inequality,and injustice that strong community requires) above mere self-interest. It makes perfect sense for a community or nation to cultivate such a communal attitude by developing an ethical perspective that discourages avarice and greed.
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About charity: Charity is a free market act. It is by definition a VOLUNTARY act. Cultivating a communal attitude can benefit some needy people for some time but if this attitude becomes predominant and if everybody counts on these acts of charity we soon have a nation of beggars and very few primary producers and when we then go down two generation we do not have a nation at all (see case USSR). Charity can only happen in a system where private property rights are respected because you cannot give away what is not yours to give. I do agree that cultivating an attitude of charity is good but it has nothing to do with taking the fair market value of your goods.
If you are not taking fair market vale you are performing an act of charity. If charity by definition is a voluntary act it can never be unethical not to do it. You would need to make the case why someone is obliged to perform an act of charity.
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Originally Posted by jessicaSAR
Ethics are typically pretty context dependent and require a bit of thought. It may not always be the case that selling an elbee on ebay is indicative of avarice or greed. Perhaps the seller is in a difficult financial situation and needs to make some money. In that case perhaps they would choose to do something (sell on ebay) that they would not normally do. We might alter our ethical stance if we take these mitigating circumstances into account. But, that does not mean that under normal circumstances the seller would choose ebay. Claiming that you are selling on ebay due to unusual circumstances just underlines the fact that under normal circumstances you would probably not make that choice. We all know that you can recoup your entire investment for an elbee on the TP, so choosing to sell on ebay is a choice to get as much as possible. I would define that as greed and see no reason why a community shouldn't discourage such an attitude under normal circumstances.
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Contrary to common belief ethics is not context dependent or subjective. In human conduct there are fundamental and universal rights and wrongs, which do not change with place, time or society. Burning children at the stake was unethical yesterday, is today, and will be tomorrow. People engaging in voluntary barter with their own goods was ethical yesterday, is today, and will be tomorrow. (To think otherwise would be to think that initiating violence [to prevent these voluntary transaction which by definition will take place if not prevented] is ethical, and clearly initiating violence in this case is not.)
I'd like you to define 'greed.' I understand you seem to object to the scarcity of resources and unequal distribution of them in nature. If so, where would you draw the line? How much can a person own before he becomes ‘greedy’ or too wealthy, since if I read you correctly between the lines you somehow seem to think that those too go hand in hand? $100,000? $500,000? More? Less?
Any person in a community has of course the right to discourage ‘greedy’ behaviour and it can be good to some extent. What you seem to think of as ‘greed’, the voluntary free market operations, are however the foundations of material wealth
and thus make charity possible in the first place. Therefore I would not object to what you call ‘greed’ too much. A nation of beggars gets nothing in the end.
I do believe that matters in ethics and economics are less subjective than people in general seem to think. You have naturally the right to your own opinion and you have the right to disagree with me. However, the fact that you might personally not like or approve of something has not necessarily anything to do with ethics.
Ethics is more a science of logic than the introspective analysis of emotions.
Analyze these issues and please continue to argue with me if you like. But I ask you this: are you
sure that what you call "greed" is the root of all evil and not the root of all good? An undisputable fact of reality is material scarcity, and the root of this issue is how to address that. But please address how we are to do that, if
not allowing individuals to operate on a voluntary basis.
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