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Capitalists, workers and "natural" contributions to production
In an illuminating recent paper, "Capitalism in the Classical and High Liberal Tradition" [$$$], University of Pennsylvania philosopher Samuel Freeman seeks to offer some justification for the secondary status conferred upon economic rights and liberties within what he calls the "High Liberal" tradition of J.S. Mill, John Dewey, John Rawls. Capitalism follows more or less directly from the kind of rights to private property and contract defended in the "Classical Liberal" tradition of Adam Smith, F.A. Hayek, Milton Friedman (to be distinguished in Freeman's schema from the "libertarian" tradition of Murray Rothbard and Ayn Rand, which leave no place for taxation, state-provided safety nets and public goods), but Freeman's high liberals reject capitalism in favor of alternative economic systems that give workers more control over both the inputs (capital and labor) and the outputs (profits/losses) of economic production. Why? Because high liberals reject the robust economic rights rights at the foundation of classical liberalism. According to Freeman, a "central feature of the high liberal tradition" is that "the rights and other incidents of property ... are relativized or adjusted to meet antecedent principles of justice..." That is to say, economic rights and liberties play little or no role in the formulation of the foundational principles of liberal justice. First, we come up with an ideal theory of the way free and equal people ought to live with one another. Then we define economic rights and liberties to accommodate this vision. Whether it's possible to justify treating economic rights and liberties as the redheaded stepchildren of liberalism is one of the big questions of contemporary liberal political philosophy. Freeman's excellent paper is part of that debate.
In this post, I want to touch on just one part of Freeman's paper that I think is wrong, but I'm not confident that I'm right about why. I'm thinking out loud here. And, fair warning, the difficulty level is high.
Midway through his paper, Freeman endorses Mill's distinction between "laws of economic production" and "laws of economic distribution" as well as Rawls' distinction "between the role of market prices in allocating productive resources and their role in the distribution of income and wealth." The thrust of the distinction as it is used by high liberals is that it's a good idea to use markets to allocate capital to its most productive use, but it's not a good idea to use markets to determine who gets what share of the surplus from cooperative production.
Freeman observes that many classical liberal's endorse the following distributive principle: "to each according to the marginal value of his or her contribution to production." This principle, Freeman says, leads many classical liberals to argue that "owners of capital should have a right to the entire profits, interest, and rent that result from their investment of capital ... because profits, interests, and rent measure the marginal product of their contribution." Freeman thinks the problem with this argument is that owners of capital don't actually contribute to production in the right way. This is the argument I want to examine.
Freeman wants to draw a distinction between natural contribution and institutionally dependent contribution. Here are some passages from Freeman:
There is a genuine naturalistic sense in which workers can be said to contribute their labor toward productive output, as well as a naturalistic sense in which land, raw materials, and real capital make a contribution. ...
The contribution of owners [of factors of production] is notional when compared to the contribution made by the factors of production they own; it is a manner of speaking dependent upon rights of ownership and control that owners in virtue of legal and other conventional arrangements.
[O]nce we go beyond the natural contribution made by workers' labor and productive resources other than labor, individuals' "contribution to" and "responsibility for" the social product are institutionally dependent, and indefinable outside an institutional (and normally legal) context.
Freeman goes on to examine the idea that capitalists contribute by investing rather withholding or consuming their resources, but I don't want to approach the issue from this angle. What interests me is the extent to which labor and other factors of production count as "natural" as opposed to "institutionally dependent." I'm skeptical that there's a real distinction here. All contributions to production seem to me institutionally dependent in the relevant sense.
By way of adding some theoretical heft to his distinction, Freeman references John Searle's distinction between brute facts and institutional facts in The Construction of Social Reality. Roughly, a brute fact is a fact that is independent of anything anybody thinks about it. An institutional fact is a fact based in certain collective beliefs and intentions. That I am 72" inches tall is a brute fact. That I am a citizen of the United States of America and the owner of a 1996 Honda Civic are institutional facts. That I am poking at a certain human artifact designed by humans for certain human purposes is a brute fact. That my poking counts as "writing in English" and "blogging" and "economic production" strikes me as a fairly rarefied institutional fact. I just can't grasp how it is that my labor is a more "natural" contribution to the Big Think enterprise than the owners' contribution of capital. That my keyboard banging now, as opposed to the keyboard banging I will do in a few minutes on Facebook, counts as labor at all seems to me entirely dependent on an incredibly complex and elaborated system of interlocking institutional facts.
Here's an example Searle likes to use. That a certain set of events count as a "home run" depends on the rules of baseball, which is body of conventions that have force because we all agree that they do. The are no "natural," institution-independent home runs. Likewise, that an Albert Pujols home run is a contribution to the production of a winning game of baseball is a dauntingly complex institutional fact. Albert Pujols can swing a lathed piece of lumber all day long and it won't count as a contribution to the production of a baseball game unless it occurs within the matrix of institutional facts the constitute a game of baseball. I don't see how running a lathe at the Louisville Slugger factory is different.
This is not to deny that there is no principled distinction between the kind of contribution the worker running the lathe makes and the kind that the capitalists who own the lathe make. Even if both of these contributions are thoroughly institutionally dependent, some other distinction may justify treating the contributions of workers and capitalists differently in a way that affects our conception of fair distribution. My point here is simply that the distinction between natural and institutionally-dependent contributions to production can't justify treating them differently because there is no such distinction. Freeman's appeal to "natural" contributions to production strikes me as about as useful as he finds libertarian appeals to "natural" rights to property.
Let me make a more general point about the debate between high liberals and classical liberals. High liberals are obsessed with the idea that property rights require institutional elaboration. If true, this does imply that pre-institutional property rights cannot stand as an already-fixed constraint on the formulation of principles of justice, because there are no pre-institutional property rights. But doesn't every political and economic right require institutional elaboration? The idea that people can't own other people requires institutional elaboration. Liberty of conscience, rights to democratic participation, freedom of speech--the whole gamut of liberal ideals--require institutional elaboration. By itself, the fact that property rights require institutional elaboration seems to me to get the high liberal absolutely nowhere in justifying their insistence on assigning economic right and liberties a secondary status in liberal theories of justice.
What is human dignity? Here's a primer, told through 200 years of great essays, lectures, and novels.
- Human dignity means that each of our lives have an unimpeachable value simply because we are human, and therefore we are deserving of a baseline level of respect.
- That baseline requires more than the absence of violence, discrimination, and authoritarianism. It means giving individuals the freedom to pursue their own happiness and purpose.
- We look at incredible writings from the last 200 years that illustrate the push for human dignity in regards to slavery, equality, communism, free speech and education.
The inherent worth of all human beings<p>Human dignity is the inherent worth of each individual human being. Recognizing human dignity means respecting human beings' special value—value that sets us apart from other animals; value that is intrinsic and cannot be lost.</p> <p>Liberalism—the broad political philosophy that organizes society around liberty, justice, and equality—is rooted in the idea of human dignity. Liberalism assumes each of our lives, plans, and preferences have some unimpeachable value, not because of any objective evaluation or contribution to a greater good, but simply because they belong to a human being. We are human, and therefore deserving of a baseline level of respect. </p> <p>Because so many of us take human dignity for granted—just a fact of our humanness—it's usually only when someone's dignity is ignored or violated that we feel compelled to talk about it. </p> <p>But human dignity means more than the absence of violence, discrimination, and authoritarianism. It means giving individuals the freedom to pursue their own happiness and purpose—a freedom that can be hampered by restrictive social institutions or the tyranny of the majority. The liberal ideal of the good society is not just peaceful but also pluralistic: It is a society in which we respect others' right to think and live differently than we do.</p>
From the 19th century to today<p>With <a href="https://books.google.com/ngrams/graph?year_start=1800&year_end=2019&content=human+dignity&corpus=26&smoothing=3&direct_url=t1%3B%2Chuman%20dignity%3B%2Cc0" target="_blank" rel="noopener noreferrer">Google Books Ngram Viewer</a>, we can chart mentions of human dignity from 1800-2019.</p><img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDg0ODU0My9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY1MTUwMzE4MX0.bu0D_0uQuyNLyJjfRESNhu7twkJ5nxu8pQtfa1w3hZs/img.png?width=980" id="7ef38" class="rm-shortcode" data-rm-shortcode-id="9974c7bef3812fcb36858f325889e3c6" data-rm-shortcode-name="rebelmouse-image" />
American novelist, writer, playwright, poet, essayist and civil rights activist James Baldwin at his home in Saint-Paul-de-Vence, southern France, on November 6, 1979.
Credit: Ralph Gatti/AFP via Getty Images
The future of dignity<p>Around the world, people are still working toward the full and equal recognition of human dignity. Every year, new speeches and writings help us understand what dignity is—not only what it looks like when dignity is violated but also what it looks like when dignity is honored. In his posthumous essay, Congressman Lewis wrote, "When historians pick up their pens to write the story of the 21st century, let them say that it was your generation who laid down the heavy burdens of hate at last and that peace finally triumphed over violence, aggression and war."</p> <p>The more we talk about human dignity, the better we understand it. And the sooner we can make progress toward a shared vision of peace, freedom, and mutual respect for all. </p>
A new study finds surprising evidence of the self-evolution of urban foxes.
- A study from the University of Glasgow finds urban foxes evolved differently compared to rural foxes.
- The skulls of the urban foxes are adapted to scavenging for food rather than hunting it.
- The evolutionary changes correspond to Charles Darwin's "domestication syndrome."
How much can living in the city change you? If you were an urban fox, you could be evolving yourself to a whole new stage and becoming more like a dog, according to a fascinating new study.
Researchers compared skulls from rural foxes around London with foxes who lived inside the city and found important variations. Rural foxes showed adaptation for speed and hunting after quick, small prey, while urban fox skulls exhibited changes that made it easier for them to scavenge, looking through human refuse for food, rather than chasing it. Their snouts were shorter and stronger, making it easier to open packages and chew up leftovers. They also have smaller brains, not meant for hunting but for interacting with stationary food sources, reports Science magazine.
Interestingly, there was much similarity found between the male and female skulls of the urban foxes.
The observed changes correspond to what Charles Darwin called the "domestication syndrome," comprised of traits that go along with an animal's transition from being wild, to tamed, to domesticated.
The study was led by Kevin Parsons, an evolutionary biologist at the University of Glasgow.
"What's really fascinating here is that the foxes are doing this to themselves," Parsons told the BBC. "This is the result of foxes that have decided to live near people, showing these traits that make them look more like domesticated animals."
The researchers are not suggesting you should go out and get a fox as a house-pet just yet. But they are seeing the evolutionary process taking place that's moving the urban foxes along the path towards becoming more like dogs and cats, explained the study's co-author Dr. Andrew Kitchener from National Museums Scotland.
A fox beneath a tree in Greenwich park, south east London on May 14, 2020.
Photo by Glyn KIRK / AFP
"Some of the basic environmental aspects that may have occurred during the initial phases of domestication for our current pets, like dogs and cats, were probably similar to the conditions in which our urban foxes and other urban animals are living today," said Kitchener. "So, adapting to life around humans actually primes some animals for domestication."
The specimen came from the National Museum Scotland's collection of around 1,500 fox skulls.
You can read the study in the Proceedings of the Royal Society B.
A fox at the LV County Championship, Division two match between Surrey and Derbyshire at The Brit Oval on April 9, 2010 in London, England.
Photo by Clive Rose/Getty Images
Is Bitcoin akin to 'digital gold'?
- In October, PayPal announced that it would begin allowing users to buy, sell, and hold cryptocurrencies.
- Other major fintech companies—Square, Fidelity, SoFi—have also recently begun investing heavily in cryptocurrencies.
- While prices are volatile, many investors believe cryptocurrencies are a relatively safe bet because blockchain technology will prove itself over the long term.
Presentation slide from Sanja Kon's presentation on the evolution of money at 2020 Web Summit
Credit: Sanja Kon<p>The move came shortly after the payments company Square invested $50 million into Bitcoin, and after Fidelity announced that it was opening a Bitcoin fund into which qualified purchasers could invest <a href="https://www.bloomberg.com/news/articles/2020-08-26/fidelity-launches-inaugural-bitcoin-fund-for-wealthy-investors" target="_blank">(minimum investment: $100,000)</a>. Together, this institutional backing might have something to do with Bitcoin's recent surge back to near its 2017 price peak of $19,783. (Bitcoin is listed at 19,384.30 as of Dec. 3.)<br></p>
Presentation slide from Sanja Kon's presentation on the evolution of money at 2020 Web Summit
Credit: Sanja Kon<p>But more importantly, it suggests cryptocurrencies might soon have the opportunity to prove themselves in real-world use cases. After all, skeptics have long doubted the ability of cryptocurrencies to go mainstream as a form of everyday payment. But people seem increasingly comfortable with digital payment systems.</p><p style="margin-left: 20px;">"The entire world is going to come into digital first," Schulman said at Web Summit, adding that PayPal's services already go hand-in-hand with cryptocurrencies. "As we thought about it, digital wallets are a natural complement to digital currencies. We've got over 360 million digital wallets and we need to embrace cryptocurrencies."</p><p>Sanja Kon, vice president of global partnerships at the cryptocurrency payments processor company UTRUST, also spoke at Web Summit about the increasing adoption of digital payments:</p><p style="margin-left: 20px;">"Physical cash is becoming more and more obsolete. And the next step in the evolution is digital currency."</p><p>Kon noted some of the inherent advantages of cryptocurrencies, namely ownership. </p><p style="margin-left: 20px;">"For many people, this is really the main benefit of cryptocurrency: Users owning cryptocurrencies are able to control how they spend their money without dealing with any intermediary authority like a bank or a government, for example," Kon said, adding that there are no bank fees associated with cryptocurrencies, and that international transaction fees are significantly lower than wire transfers of fiat currency.</p><p>Kon said cryptocurrencies have unique growth opportunities in areas where people aren't integrated into modern banking systems:</p><p style="margin-left: 20px;">"With cryptocurrencies and blockchain, with the use of just a smartphone and access to internet, Bitcoin and cryptocurrencies can be available to populations of people and users without access to the traditional banking system."</p>
Bitcoin as 'digital gold'<p>Still, it could take years for people to start using cryptocurrencies for everyday purchases on a large scale. Despite this, many cryptocurrency advocates see digital currencies, particularly Bitcoin, as a way to store value—digital gold, essentially.</p><p style="margin-left: 20px;">"I don't think Bitcoin is going to be used as a transactional currency anytime in the next five years," billionaire investor Mike Novogratz recently told <a href="https://www.bloomberg.com/news/articles/2020-10-23/novogratz-says-bitcoin-is-digital-gold-not-a-currency-for-now?srnd=markets-vp" target="_blank">Bloomberg</a>. "Bitcoin is being used as a store of value. [...] "Bitcoin as a gold, as digital gold, is just going to keep going higher. More and more people are going to want it as some portion of their portfolio."</p><p>There are obvious parallels between gold and Bitcoin: Both are mined, do not degrade over time, are finite in supply, and aren't directly tied to the value of fiat currency, making them <a href="https://www.reuters.com/article/us-gold-inflation/gold-as-an-inflation-hedge-well-sort-of-idUSKCN1GD516" target="_blank" rel="noopener noreferrer">relatively invulnerable to inflation</a>. The obvious objection is that the price of Bitcoin, and cryptocurrencies in general, is far more volatile than gold.</p><p>But for investors who believe the inherent value of cryptocurrency technology will prove itself over the long term, these price fluctuations are just bumps on the long road to the future of currency. </p><p style="margin-left: 20px;">"It's no longer a debate if crypto is a thing, if Bitcoin is an asset, if the blockchain is going to be part of the financial infrastructure," Novogratz said. "It's not if, it's when, and so every single company has to have a plan now."</p>
Singapore has approved the sale of a lab-grown meat product in an effort to secure its food supplies against disease and climate change.
Approve for your dining pleasure<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="dd3f57f8baf14e654812d30a309d1f17"><iframe type="lazy-iframe" data-runner-src="https://www.youtube.com/embed/307gysA18_E?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p><a href="https://www.ju.st/en-us" target="_blank" rel="noopener noreferrer">Eat Just</a>, a company that produces animal-alternative food products, announced the news earlier this week. In what the company is calling a world first, Singapore has given it permission for a small-scale commercial launch of their GOOD Meat brand product line. For the initial run, the cultured chicken meat will be sold as an ingredient in "chicken bites."</p><p>"Singapore has long been a leader in innovation of all kinds, from information technology to biologics to now leading the world in building a healthier, safer food system. I'm sure that our regulatory approval for cultured meat will be the first of many in Singapore and in countries around the globe," Josh Tetrick, co-founder and CEO of Eat Just, <a href="https://www.businesswire.com/news/home/20201201006251/en/Eat-Just-Granted-World%E2%80%99s-First-Regulatory-Approval-for-Cultured-Meat" target="_blank" rel="noopener noreferrer">said in a release</a>.</p><p>According to the release, Eat Just underwent an extensive safety review by the Singapore Food Agency. It provided officials "details on the purity, identity and stability of chicken cells during the manufacturing process, as well as a detailed description of the manufacturing process which demonstrated that harvested cultured chicken met quality controls and a rigorous food safety monitoring system." It also demonstrated the consistency of its production by running more than 20 cycles in its 1,200-liter bioreactors.</p><p>While Eat Just did not offer details on its propriety process, it likely follows <a href="https://www.newscientist.com/article/mg24032080-400-accelerating-the-cultured-meat-revolution/" target="_blank" rel="noopener noreferrer">one similar to other lab-grown meats</a>. It starts with muscle cell samples drawn from a living animal. Technicians then isolate stem cells from the sample and culture them <em>in vitro</em>. These cultured stem cells are then placed in a bioreactor, essentially a fermenter for fleshy cells. The bioreactor contains scaffolding materials to keep the growing tissue from falling apart as well as a growth material—the sugars, salts, and other nutrients the tissue needs to grow. As the cells grow, they begin to differentiate into the muscle, fat, and other cells of meat tissue. Once grown, the tissues are formed into a meat product to be shipped to restaurants and supermarkets.</p>
An abattoir abatement?<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDg2Mjg5OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyODg1NDI3N30.AYmFJfWQbPjK-o1IatyFHL-OLjcfXBMmQKYyvz4oT3s/img.jpg?width=980" id="8a82d" class="rm-shortcode" data-rm-shortcode-id="93f824fe4c6f397ab2b65e4665847e71" data-rm-shortcode-name="rebelmouse-image" />
A graph showing the number of animals slaughtered in the United States per year from 1961–2018.
Credit: Our World in Data<p>Singapore's approval is an important step in support for clean meats—so-called because they don't require animal slaughter and would likely leave a reduced carbon footprint—but hurdles remain before widespread adoption is possible.</p><p>The most glaring is the price. The first lab-grown hamburger was eaten in London in 2013. <a href="https://www.bbc.com/news/science-environment-23576143" target="_blank" rel="noopener noreferrer">It cost roughly $330,000</a>. As with any new technology, investment, iteration, and improved manufacturing will see the price drop substantially and quickly. For comparison, Eat Just's chicken will be priced equivalent to premium chicken.</p><p>Other hurdles include up-scaling production, <a href="https://www.nature.com/articles/d41586-019-00373-w" target="_blank" rel="noopener noreferrer">the need for further research</a>, and developing techniques to reliably produce in-demand meats such as fish and beef. Finally, not all countries may be as receptive as Singapore. Countries with large, entrenched meat industries may protect this legacy industry through a protracted and difficult regulatory process. Though, the meat industry itself is investing in lab-grown meat. Tyson Foods, for example, has <a href="https://euromeatnews.com/Article-Tyson-Foods-announces-investment-in-clean-meat/697" target="_blank" rel="noopener noreferrer">invested in the food-tech startup Memphis Meats</a>, the company that debuted the world's first beef meatball.</p><p>"I would imagine what will happen is the U.S., Western Europe and others will see what Singapore has been able to do, the rigours of the framework that they put together. And I would imagine that they will try to use it as a template to put their own framework together," <a href="https://www.reuters.com/article/us-eat-just-singapore/singapore-approves-sale-of-lab-grown-meat-in-world-first-idUSKBN28C06Z" target="_blank" rel="noopener noreferrer">Tetrick told Reuter's during an interview</a>.</p><p>Regardless of the challenges, the demand for meat substitutes is present and growing. In 2020, plant-based substitutes like Beyond Meat and Impossible foods <a href="https://bigthink.com/coronavirus/plant-based-meat" target="_self">gained a significant foothold in supermarkets</a> as meat-packing factories became coronavirus hotspots. The looming threat of climate change has also turned people away from meat as animal products. Livestock production is environmentally taxing and leaves <a href="http://css.umich.edu/factsheets/carbon-footprint-factsheet" target="_blank" rel="noopener noreferrer">a much larger carbon footprint</a> than grain and vegetable production. </p><p>Then there's the moral concern of animal cruelty. In 2018 alone, 302 million cows, 656 million turkeys, 1.48 billion pigs, and a gob-smacking 68 billion chickens were <a href="https://ourworldindata.org/grapher/animals-slaughtered-for-meat" target="_blank" rel="noopener noreferrer">slaughtered for meat worldwide</a>. And those figures do not include chickens killed in dairy or egg production.</p><p>If brought to scale and widely available, clean meats could become serious competitors to traditional meat. <a href="https://bigthink.com/technology-innovation/meat-alternatives" target="_self">One report has even predicted</a> that 60 percent of the meat people eat by 2040 won't come from slaughtered animals. It could be just the thing for people looking for a meat substitute but who find tofurkey as distasteful as, well tofurkey.</p>