MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘Socialists’

EconomicPolicyJournal.com: Why Male Soccer Players Make More Than Female Soccer Players

Posted by M. C. on July 12, 2019

The women are actually paid proportionally more than the men, however — 13% versus 9% of total revenues.

Few understand that everything is a function of some sort of economics.

Will I mow the lawn or watch the big game? Which is more valuable at this particular time? That is an economic decision. The commodity is personal time, a high value item.

According to this and other places we have read women’s soccer is light years away from mens soccer in how people want to spend their personal time and money.

Unfortunately for Megan Rapinoe’s paycheck women’s soccer is not as valuable a commodity as some other things.

I have no data but this does not seem to be the case in women’s tennis or golf, at least complaints don’t seem so prevalent.

https://www.economicpolicyjournal.com/2019/07/why-male-soccer-players-make-more-than.html

By Thomas DiLorenzo

A stadium full of French socialists chanted “Equal Pay!  Equal Pay!” after the U.S. women won the World Cup over the weekend.  They were supporting the complaints of perpetually-angry-and-complaining Megan Rapinoe, the star of the U.S. women’s soccer team, about how the women are paid less than the men.
A little elementary economics can help explain why Megan is way out in left field on this.  In a competitive market economy world one’s pay is correlated with one’s marginal productivity.  That’s an economics term for how much you, as an employee, contribute to your employer’s profits.  The more skilled, experienced, educated, and hard working you are, the higher is your marginal productivity and your value to employers.  An important element of this is what the product or service is that you are involved in producing.  If there is strong consumer demand for the product or service, then your services in producing it will be worth more to employers.  I could be the best horse-and-buggy whip maker in history, but if there is slight demand for horse-and-buggy whips I won’t make much money.
Now, back to soccer.  In the last men’s world cup event in Russia, revenues, mostly from television, were about $6 billion.  For the recent women’s world cup they are estimated to be about $131 million, a small fraction of the men’s revenues (a little less than one-fiftieth).  Orders of magnitude more people watch men’s soccer than women’s soccer.  Compared to men’s soccer, hardly anyone cares about women’s soccer.   The women are actually paid proportionally more than the men, however — 13% versus 9% of total revenues.

 

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Black Markets Show How Socialists Can’t Overturn Economic Laws | Mises Wire

Posted by M. C. on June 24, 2019

https://mises.org/wire/black-markets-show-how-socialists-cant-overturn-economic-laws

If we consider economics to be an objective science, its rules should also have universal significance and use, despite differences in societal order. However, socialists of the materialist camp are committed to the idea that common ownership of the means of production would change the way economic laws unfold under socialism. Basically, they reject the notion of the universality and objectivity of economic rules by suggesting that the laws would change along with a change to the social formation.

Thus, communists adhered to the Marxian idea that socialism would rectify a “surplus value” law, end the “exploitation” of workers, and efficiently regulate the production, distribution, and consumption aspects of the economy. They sought to eliminate the market regulatory mechanism and replace it with directives of the central planning authority. Bolsheviks enthusiastically got down to business: they eradicated private property, collectivized everything and everyone, and implemented an official planned economy.

Did it effectively turn off market relations as they thought it would?

No. In contrast to the common perception, socialism has been unable to kill the market economy. The market went underground and turned into a black market. Black markets existed in capitalist countries as well, but they worked underground because they dealt in illegal commodities and services. The black market under socialism served the same purpose, but the list of commodities and services included mostly items of everyday and innocent consumption that people under capitalism could easily purchase in stores. Virtually all groups of personal consumption products found their way to the black market at some time and in some places. Everything from jar lids to toilet paper was subject to black-market relations.

Despite the proclaimed planned economy, people were engaged in market relations on all levels and trusted more the price of the goods and services that were established by the market and not dictated by the government. The official exchange rate of the ruble to the dollar was 0.66 to 1 in 1980. But nobody except party nomenclature was able to enjoy such a favorable exchange rate. At the same time, the black market offered 4 rubles for 1 American dollar.

There was no production of jeans in the Soviet Union, but like all their peers abroad, Soviet youth wore jeans. The price was 180–250 rubles for a pair depending on the brand, which was almost twice as much as the monthly wage of an entry-level engineer. A visiting nurse charged 1 ruble for one injection if a patient lived below the fifth floor. The price reached 1.5 rubles for patients who lived on the fifth floor and up. A plumber happily repaired a faucet for just a bottle of vodka.

Two Prices for Everything

Therefore, in the Soviet Union, any significant goods had two price tags: one real and another virtual. The state set the first price through some obscure methods; the usual mechanism of supply and demand established the second price on the market. If you were lucky, after several hours of standing in a queue, you could purchase goods at the state price. However, due to the chronic lack of everything for everyone, the same product could be bought on the black market at a much higher price. The virtual price became real on the black market and reflected the actual value of the goods for the buyer. The presence of two price tags is a confirmation of the thesis of Ludwig von Mises regarding the impossibility of economic calculations under socialism. At the same time, this is proof of the immortality and immutability of the economic laws of the free market, even under a totalitarian regime. Therefore, two economic systems and two sets of prices co-exist under socialism…

Socialism is a set of systems that try to artificially inhibit the free flow of objective economic laws by creating subjective barriers in the form of specific legislation and punitive policies. Socialists mistakenly think that if they assault private property and market relations, the economic laws will also change. They have taken up the task which, in principle, has no rational solution. Nothing good comes from the idea of ignoring or violating the fundamental laws of economics. These laws still exist, regardless of opinions and neglect to recognize their real character and the impossibility of changing them.

Socialism disrupts the evolutionary process and leads society to a dead end. The desperate economic situation of ordinary folks in Venezuela, Cuba, and North Korea — the remnants of socialist undertakings — is a direct result of building a society in defiance of the natural action of the fundamental law of economics. As a rule, socialist regimes were buying time by employing slave labor, plunder, coercion, and everything else that an aggressive totalitarian regime could offer. However, in the end, the means of socialistic life support was exhausted, and than returning to the natural and healthy market relations, where the laws of economics work for the benefit of the human race.

The same laws of market economics have worked in different human societies: from pre-historic to post-industrial, but still socialists continue to entertain the idea of tampering with these forces of nature.

 

 

 

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Dear Socialists: The People HAVE Seized the Means of Production… Using Capitalism.

Posted by M. C. on February 13, 2019

The government is what is standing in the way of the people fully seizing the means of production. Not the capitalists…

https://www.grnewsletters.com/archive/thedailybell_newswire/Dear-Socialists-The-People-HAVE-Seized-the-Means-of-Production-Using-Capitalism-656599203.html?e=&u=S6bT5&s=oHMPjb

By Joe Jarvis

The proletariat did not have to seize the means of production in a violent socialist coup.

Capitalism handed the means of production to the workers voluntarily.

And it did so for a profit.

We traded violent destructive revolution for peaceful productive markets… and accomplished more than socialism could ever imagine. And we are just getting started.

Socialists have long seen injustice in the fact that the workers who do the labor don’t get to keep the entire product of their labor.

And capitalists have responded by claiming that providing the means of production and organization entitle them, not the workers, to the profits.

But the entire argument is moot.

Production costs have dropped so low that basically anyone can accumulate the capital to launch an independent endeavor.

And that has revealed that it was never really about the capital…

Socialists are right about one thing: labor is the main driver behind production.

Unfortunately, they fail to see the value in the labor of the capitalists and managers.

Allocating capital to productive endeavors takes skillful labor. Organizing and running a business takes skillful labor. That’s why most new businesses fail.

But any worker who has these skills can now buck their capitalist overlords, seize their own means of production, and the socialist revolution is complete…

Read the rest of this entry »

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