Freedom and employment
October 26, 2013 8 Comments
Anarchopac who is an anarchist/socialist thinks that wage labour is incompatible with freedom. His argument is that workers must work to earn a living. And even if a worker wants to start his own business he must work for a wage to save up money to start the business and so has to work for a wage. Since he has no choice but to work for a wage he isn’t free since he has no alternative. I don’t think it does much good to argue about whether this or that action is compatible with freedom because it frames the debate in a misleading way. If you go along with discussing the issue in this way you’re going to end up talking about the definition of freedom.
Such discussions tend to go nowhere because of a general philosophical problem: discussing definitions is a bad idea. If somebody wants to argue about the definition of a word the best thing to do is just to concede the definition and move on to discussing a substantive issue. A word is just a label for an idea. If you disagree with me about an idea then we need to discuss the idea, not the label. For more criticisms of discussing definitions see Karl Popper’s The Open Society and its Enemies Volume 2, Chapter 11, Section II. Specifically when we want to discuss a pattern of behaviour, such as wage labour, we should discuss what problem it solves, whether the pattern is problematic. If it is problematic is there some variant that would be better? Or is the pattern in question so bad it should be abolished, like slavery?
Some people who work for a wage dislike their job and wish they didn’t have to do it. But a person can dislike doing something because he has bad ideas, so this doesn’t tell us much. Nor does disagreement tell us which party to the disagreement, if either, is correct. So if an employer and employee disagree about what the employee should do we can’t say which of them is right without knowing more.
Socialists say that the way to solve this problem is for the employers to give up their property rights in the plant they own to the workers. The workers are better suited to run the plant because they actually use the machines and know how they perform in practise. Bu there is a problem with this argument. Why did the employer own the machines in the first place?
The employer had an idea about some good or service. He thought that people would want that good or service and he thought about the best way to provide it. He then got the money to buy the plant, the premises in which to install it and so on. And he makes decisions about how to use the plant for as long he owns it. If not enough people buy his product or service then his business will fail. He pays the employees money in advance of knowing whether their labour will make him a profit or not. Doing anything novel entails risk. The employer takes that risk and the employees don’t. If the employees genuinely have a better idea about what risk should be taken then they could try to raise the money to buy the employer out.
Some socialists might say there isn’t really that much risk. You can just produce stuff that people know they want. This idea is problematic: it presupposes that people know the best way of making stuff and just have to tell other people to go do it. But figuring out how to do stuff well is hard. It requires trial and the correction of error. This is equally true of producing new technology and continuing to produce stuff that was produced before under changing conditions. The way the market does this is that if the good is being supplied badly enough by the lights of the people who might buy it the people supplying it won’t make a profit and will have to stop.
Somebody has to take the risky decisions and those people should get the profit or take the hit. If they don’t then they will not be able to make decisions about whether to continue making a product or service or not. That is, they will not be able to decide whether they prefer to make the product under current conditions or not, nor will they have any guidance on whether other ways of making it might work.
What the socialists propose amounts to saying that nobody should want to make the tradeoff of getting money now and taking a lot less risk rather than taking a large risk and getting money later. But what about the worker who needs the money right now and has no choice but to make that tradeoff? If he has no idea how to produce goods and services better then there is no reason for anybody to give him stuff when he doesn’t know how to use it. If he does have a great idea then he should want to put in the time and effort needed to persuade other people to give him money to try it, or he should save the required money. To say anything else entails that people should give him stuff when they don’t think it’s a good idea. It requires people to act irrationally: that is, to ignore criticisms of their actions.
But the worker might be unhappy I hear you cry. If somebody can’t convince other people to give him stuff or money to try some great idea he should be interested in working out why they aren’t convinced. So he has an opportunity to learn. If he doesn’t have good ideas for a business but wants to have good ideas about that then he should be interested in learning about how to have such ideas. And if he wants neither of those things, that’s fine but he shouldn’t want people to give him stuff when he doesn’t know how to use it and has no intention of learning. And when I say it’s fine not to want those things I really mean it. Some people want to do philosophy or poetry or draw or whatever and don’t want to run a business. All I’m saying is that if that’s what you want to do and you’re not willing to persuade other people to sponsor you to do it you shouldn’t expect to get stuff for doing it.