State Socialism is Inevitable

sufi

lala
despite all the ideological grandstanding, practical reality is a ratchet, the tides are moving one way

and what's more when the chips are down the right are the first to squeak when it comes to any diminishing of their human rights
 

sus

Moderator
I agree that public subsidy appears to ratchet with wealth and increasing democratization. (In part because violence against citizens, as a means of suppressing or discouraging uprising, becomes increasingly distasteful politically when citizens are fully enfranchised with the vote.) As the productive classes get richer, it will no doubt become increasingly appealing to buy social stability by providing for the unproductive class.

The devil, of course, lies in timing.

I am unfortunately a bit pessimistic about whether we can pay down unrest by subsidizing living costs. The reason for this pessimism being the possibility that absolute impoverishment matters much less than relative impoverishment, in driving unrest.
 

sus

Moderator
Whether or not markets will be replaced by centralized planning is a separate story. But it seems like improvements in artificial intelligence will help solve the primary problem with centralization, which is that markets are more "intelligent" and efficient insofar as they enlist the distributed, skin-in-the-game intelligence of individual participants. State-run economies, on the other hand, not only operate with an extreme information deficit—they also run smack-dab into deep, intractable bureaucratic/managerial issues (perverse and misaligned incentives, surrogation and reportage lossiness, everyday corruption).

Having a computer (or more realistically, many computers) run an economy comes with its own slough of difficult design problems, not least of which is a hard alignment problem. Moreover, these computers would have to handle their own data collection and tagging—otherwise all the aforementioned reporting/management issues rear their head again. This is not possible given current AI paradigms—there would have to be a serious shift in how we build and train the technology. Not impossible, but not happening til the next century I'd bet. At this point, centralized economies could become tenable.
 

sus

Moderator
I agree that COVID may have sped certain processes up, but I also think the Op tweets are myopic—historically in the States, we've had several periods of increased state support/subsidy, and they are typically followed by reactionary budget cuts and privatization. History may have a general, long-run trend, but at the timescale of individual lives, it looks more like a rollercoaster. It's totally plausible that the 2020s or 2030s look more like the Reagan-Thatcher years, economically, than they look like the Nordic nations.
 

sufi

lala
massive bailouts, re-nationalisations, too bigs to fail + what roger mentions above
while the rich squirrel away their assets in their dens, and politicans and the markets wrestle over a smaller and smaller measure of control
Whether or not markets will be replaced by centralized planning is a separate story. But it seems like improvements in artificial intelligence will help solve the primary problem with centralization, which is that markets are more "intelligent" and efficient insofar as they enlist the distributed, skin-in-the-game intelligence of individual participants. State-run economies, on the other hand, not only operate with an extreme information deficit—they also run smack-dab into deep, intractable bureaucratic/managerial issues (perverse and misaligned incentives, surrogation and reportage lossiness, everyday corruption).

Having a computer (or more realistically, many computers) run an economy comes with its own slough of difficult design problems, not least of which is a hard alignment problem. Moreover, these computers would have to handle their own data collection and tagging—otherwise all the aforementioned reporting/management issues rear their head again. This is not possible given current AI paradigms—there would have to be a serious shift in how we build and train the technology. Not impossible, but not happening til the next century I'd bet. At this point, centralized economies could become tenable.
technocracy doesnt necessarily mean centralising or computerising, states will need to socialise in order to survive
 

sus

Moderator
Also worth mentioning that state subsidy will primarily serve to drive up rent, which will soak up all excess cash, unless land value tax problems are addressed.
 

WashYourHands

Cat Malogen
despite all the ideological grandstanding, practical reality is a ratchet, the tides are moving one way

and what's more when the chips are down the right are the first to squeak when it comes to any diminishing of their human rights

Do you think the NHS can be improved? If it’s yes but the political will isn’t there due to competing vested interest groups, we could put an answer forward such as


 

Mr. Tea

Let's Talk About Ceps
what is to be done when even the champions of robust western masculinity are scared of vaccines?
He's right, you know. I should have listened to him, but I went and got the clot-shot! Now my legs have just fallen off. Again!
 

sufi

lala
Do you think the NHS can be improved? If it’s yes but the political will isn’t there due to competing vested interest groups, we could put an answer forward such as


Maybe maybe not but the standard is set and the hyperconnected humans have reasonable expectations that healthcare should be decent quality and affordable or free of charge one way or another
 

vimothy

yurp
war time economy is always quasi socialist, but it feels more like we're now moving in the opposite direction - structural inflation plus global, simultaneous tightening and austerity measures leading to a huge financial/ currency crisis
 

vimothy

yurp
Napier is saying that debt levels are so out of control that they require some kind of quasi socialism - "financial repression" - in order to get them in check, that govts will actively manage credit extension and allocation in order to mitigate crisis effects, causing inflation, which will dial back debt levels. which is certainly plausible.
 
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