Tuesday, April 20, 2010

The social consciousness business sham and its anti-capitalism aganda

Excerpts: Are We a Self-Hating Commercial Society? by Jeffrey A. Tucker

I'm on a Sunday walk and a nice boy tries to sell me lemonade. A budding entrepreneur! Still, I decline. So he strengthens his pitch: "I'm donating the profits to stop child abuse." . . .

In one short day, it was about the tenth time that I'd been assaulted by social consciousness in the course of just going about my business. At the grocery store, I was assured that I would save the planet by purchasing this cereal and that bag of potato chips. If I bought this instead of that coffee, I would help poor peasants in some far-flung place achieve social justice. Some pennies from a sports drink were supposedly donated to cure muscular dystrophy. My coffee cup is so socially aware that it saves trees and thereby stabilizes the global temperature. If I use the following search engine, I help fund charities that are making the world a better place. . .

Can we all please cut the sham and go back to plain old buying and selling?

Very few of the claims of these enterprises really stand up to any serious scrutiny. Take the coffee-cup case as an example. If buying this cup saves trees, an even better way to save trees is not to buy coffee at all. And it's not clear that lowering the demand for paper is going to actually save trees at all, since a lower demand would eventually mean less reason to plant and renew the resource. And do we really need to save trees anyway? Does someone know the optimal number of trees that are supposed to be alive on the planet at any one time?

The case of socially just coffee is the one that really gets my goat. The coffee plantations that pay the highest wages and offer the most benefits to their workers are the largest, most established, and most well-connected plantations. The smaller, family-owned plantations can't afford all these things, but they are less likely to have access to the rating agencies and export companies. Why, precisely, are consumers supposed to favor the corporate big shots over the family farms, and do so in the name of enlightened social consciousness? The whole campaign for fair-trade coffee is one of the most bizarre and contradictory schemes that the dumb-dumb Left has ever dreamed up.

"There is no contradiction between doing good and doing well."

On the one hand, it is part of the genius of capitalism that it gives rise to a class of entrepreneurs that can use any fashionable culture shift to make a buck. Whether a cereal is called "Sugar Smacks" or "Earthen Honey Morsels" is neither here nor there to me, and if some marketing genius figures that the cereal company can make more money with one name over another, good for him and the company. Capitalism is so darn good at what it does that it can even bamboozle muddleheaded socialists to cough up money for its products; that's wonderful.

And yet, I'm pretty fed up with the duplicity of the whole scheme. Consider that kid who tried to sell me lemonade. It is an admirable thing to set up a lemonade stand. He used his energy and time. He has to keep the ice cold and provide cups and persuade people to buy. He has to choose a good corner of the subdivision to do this. He might have had to buy his own ingredients. Will he make a profit? Nothing is for sure in this world. Most likely he will not and he will have to be subsidized by mom and dad. But what if he does make a profit? Wouldn't that be wonderful? There would be nothing at all wrong with the world in which this kid, who gave up his Sunday to sell refreshment, could put $5 in a piggy bank as a result.

But no, we can't have that! Instead, he has learned from the social ethos that he must never, ever admit to making private gain. He has to manufacture some phony tale about how he will donate all proceeds to achieving some grand social vision of a world without child abuse. Isn't it enough that he gives a dozen people some Sunday refreshment and takes away a few bucks?

Let's review the oldest contribution of liberal thought: The market society uses private gain to achieve social good, via the mechanism of mutually beneficial exchange. I buy a jug of milk and the shopkeeper takes my money. We both say "thank you" to each other because we have both given each other a gift and we are both better off. The profits in the form of money, if there are any after expenses, are used to expand production so that there are ever more opportunities for trade. Multiply these little exchanges and investments by the world's population and you have an ever-more beautiful and fruitful garden of peace and prosperity.

In this scheme, what is the role of giving to charitable causes? This is provided for by the growth of capital and wealth. When there is enough left over after providing for basic survival needs, people turn their attention to widows, orphans, the sick, the symphonies, art galleries, saving salamanders, promoting religion, establishing quilt-weaving societies, and billions of other causes — all of which are evidence of rising prosperity.

The direction of causation here is important. First: markets. Second: investment and exchange. Third: prosperity. Fourth: a zillion social causes that fall into the category of charity, social justice, and the like. Why is it that we are so fearful of telling the truth about this step-by-step plan for building civilization? Why are we so anxious to blur the distinctions between the stages?

What's more, if I want to give to charity, I'm perfectly capable of doing this on my own and according to my own values. I do not need business enterprises to intervene to help me along and show me the path to true enlightenment. When someone comes along to dictate to me what my values should be, I tend to push back. . .

How to account for all this giving mania? Maybe it is all just a racket. Call it the "cause racket." There are more bucks to be made by spreading guilt and pity than by offering goods and services. Therefore, everyone gets in on the act.

That's one theory, but it only goes so far. My own theory is that the anti-capitalistic mentality has taken a serious toll. It hasn't yet destroyed commercial society, but it has caused commercial society to no longer be proud of the magic and glory embedded within its structures and logic. Why is this? Because we no longer understand how it is that markets convert private interest to public good. The simplest lesson of economics, proven again and again and again for 500 years, is lost on people today.

1 comment:

  1. In regard to your comment on the cups that "save trees." The term "save" is merely implying the fact that they are reducing the cost (in terms of trees) that it takes to manufacture them; thus freeing up wood resources. On that note, I would also like to add that our tree supply has actually grown (contrary to popular belief) in comparison to previous years. In 2000 54% of American adults drank coffee, and that number has steadily risen over the last ten years (NCA Coffee Drinking Trends Survey, 2000). To propose the idea that not drinking coffee at all would make more sense is not only misinformed, but hypocritical, considering the basic principles of economics promotes innovation. Many Eco- based programs like Peta, and recycling, I agree with you on, however, a product that saves resources, and yields to the majority of adults is quite impressive capitalism.