
I have been told at times that I have this irrational hatred of capitalism that is based upon a misunderstanding of economic principles. My experience has been that people who place this accusation against me have little or no understanding of the philosophical principles of property rights, systems of justice, and an intelligent understanding of history. I do believe that capitalism can be defended on utilitarian grounds, because it has been shown to be effective at producing wealth. This then brings up the question of what is the ultimate good to be maximized. This good could be overall wealth, it could be substantial freedoms, or it could be technological advancement. Without defining what this ultimate good is to be maximized, we are left to be skeptical of capitalism’s defense on utilitarian grounds. In this posting, I will not deal with capitalism on utilitarian grounds, but I will deal with how the people who defended capitalism as a “natural system of liberty” tried to establish the moral justification of property in an of itself independent of the utility it produced. I will deal with the utilitarian aspect in the next posting.
It is true that Adam Smith saw free market capitalism as the “natural system of liberty”. This is true of other classical liberals, though they might have not used these exact words. Their belief was that it is the morally correct system, and that other systems are unjust. In this society, the government clearly promotes the interests of the capitalist classes, but this was not always the case. Previous forms of governments used to promote the interests of regal or sacerdotal classes. It is a historical fact that land used to be allotted to warlords so that they would provide military service when the king so required. Their property was allotted to them through a title. It is also stated in the second chapter and 100th verse of Manu Smriti, that the Brahmins are entitled to everything, that all the property is theirs. The reality is that the system of justice of those societies had justified property rights in a way that the classical liberals would have thought to be unjust. So they will not like arguments that it is the state and its system of justice that gives moral sanction to a person owning specific property. They will not like the approach of either Hume or Hobbes who both see the state or sovereign as the ultimate justification of property. Here is a quote from Hume to show his argument.
Our property is nothing but those goods, whose constant possession is establish'd by the laws of society; that is, by the laws of justice. Those, therefore, who make use of the words property, or right, or obligation, before they have explain'd the origin of justice, or even make use of them in that explication, are guilty of a very gross fallacy, and can never reason upon any solid foundation. A man's property is some object related to him. This relation is not natural, but moral, and founded on justice. Tis very preposterous, therefore, to imagine, that we can have any idea of property, without fully comprehending the nature of justice, and shewing its origin in the artifice and contrivance of man. The origin of justice explains that of property. The same artifice gives rise to both.
If I was to analyze the sphere of activity that man operates in, there are certain things that can be strongly associated with him and other things that cannot be strongly associated with him. The association of the person with his actions is so strong that many philosophical issues are brought up, including that of free will, responsibility, and intentionality. The same can also be said of mental states, the association of a person with his memories and experiences are so strong that it brings up the philosophical question of personal identity. This is not the case with property; there is no immutable bond between an object in nature and a specific person. That bond can be easily disrupted at anytime, either voluntarily or involuntarily, it is vulnerable to a disruption that never is the case with personal actions or mental states. Therefore the goal of the classical liberals, the most paradigm example, that of John Locke was to justify property through a person mixing his labor into an object. Here is Locke’s argument.
Though the Earth…be common to all Men, yet every Man has a Property in his own Person. This no Body has any Right to but himself. The Labour of his Body, and the Work of his Hands, we may say, are properly his. Whatsoever then he removes out of the State that Nature hath provided, and left it in, he hath mixed his Labour with, and joyned to it something that is his own, and thereby makes it his Property. It being by him removed from the common state Nature placed it in, it hath by this labour something annexed to it, that excludes the common right of other Men.
The argument to make any sense is that somehow when I mix my labor into an object in nature, its arrangement is based upon a force that is part of me, and thus it belongs to me. The reality is that this argument from labor which was held by most proponents of free market capitalism is either reduced to an absurdity or ironically has become ammunition for some of the most ardent anti-capitalists, which are communists. The reality is that there is no magical force that emanates from me when I alter something in nature, the form that it presently has is not dependent on me, or is part of me. If I die, then the form of that object still remains. This argument is also used by the Marxists in defending the worker as constantly mixing his labor in the world, and the capitalist classes just functioning as exploiters who cease to mix there labor into object. This argument also leads to absurd conclusions like me dropping my sandwich on a person’s car, and thus mixing my labor into it, and it then becomes mine. For the Lockean to defend this argument he must add aspects that come from other justifications of property that I am more sympathetic towards. The first is the difference between me dropping my sandwich on a person’s car versus me creating something productive like a chair out of wood. This distinction tends to invert this process, thus not seeing the person as developing property, but property as the development of the self. It is the person that creates, and thus is able to engage in giving and exchange, and thus is able to further his existence as an ethical being. The same aspect is necessary for the classical liberal to provide a distinction between him and the Marxists, in that once the labor has been mixed by the original person, the people that work for him respect his property, and have engaged in a contract with him. This then leads to the Kantian view of property as the substantial aspect of free agency, and then it forces other into duties, in this sense the duty to uphold contracts, and not steal. Therefore if duties are imposed on others, they have a right in determining how property rights are established. This is the point where I disagree with liberalism; people are not on islands that exist separate from other people. The fact that you have property forces ethical duties on me to respect your property; it is a community of free and ethical beings that validate your property rights. If the community of free and ethical beings comes to the rational conclusion to redistribute wealth so that many people will have substantial freedoms like health care, proper nutrition, and education so that some girl does not get her sweet 16, then it is justified, because your wealth is justified in the sense that an ethical community justifies it. The ethical community should clearly not justify this, http://video.google.com/videoplay?docid=-1065908992986670309&q=mtv+sweet+sixteen&hl=en
when there are many that do not have the substantial freedoms like proper nutrition, health care, and education.
The Kantian and Hegelian basis for property rights will lead us to a different system. Property in this sense will not be seen as something which can be attained through the vicious means, and then can be used indiscriminately for activities which serve only to degrade overall humanity. Property will be seen as the substantial aspect of a free being, which will allow him to pursue truly human projects. In the next posting I will deal with economics from a more utilitarian perspective, in where I will go into the good that is to be maximized.
Manu Smriti II – 100. Whatever exists in the world is the property of the Brahmana; on account of the excellence of his origin the Brahmana is indeed, entitled to it all.
Point of Clarification
I have had a friend tell me that the sandwich example is bad because it doesn’t show intention, and a sandwich is not a tool like a wrench, therefore there is no labor being done. The point was to reduce it to an absurdity. For Locke it is the person affecting the object, so if he is the first person in the line of efficient causes, it doesn’t matter whether he had intention or the intermediate causes were done through tools. This was to contrast it with the Hegelian notion of property as affecting the self. For Hegel it is property that will allow us to get outside of pure-subjectivity, what is in the mind gets actualized. Think of the Aristotelian example of the artist and the granite making the statue. The final cause which is in the mind of the artist is the manifest in the formal cause of the statue. This creativity and embrace of rationality ties in very strongly with the Kantian idea of property as the substantial form of free agency. What that means for Kant is that the freedom of the will which is necessary for a moral being inwardly finds its outward expression in property for a system of laws. To put it in a different language, the Self is not enlarged by some physical imprint on a natural object that bears resemblance to the person. We are not like male cats spraying an object. It is the Self being enlarged through his rationality being expressed upon nature in a technical manner, and thus using that same rationality in an ethical manner with other rational beings. It is that the rationality of man is the foundation for the Geist that is expressed in the technical and ethical nature of man.