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Is Capitalism a Game of the Survival of the Fittest?

Posted by dbhalling 9 years, 7 months ago to Philosophy
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It is quite common to be in a discussion about economics and proposing a capitalist solution when someone pipes-in “that’s just survival of the fittest.” What they are talking about is “Social Darwinism” and the image they mean to conjure up is that capitalism is like a bunch of gladiators fighting it out to the death until there is just one winner. Unfortunately, this tends to trip many of us because we often say that capitalism is about competition and that competition is what makes America great.


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  • Posted by edweaver 9 years, 7 months ago in reply to this comment.
    IMHO, cronyism & crony capitalism are one in the same which are a step toward socialism. Socialism is beyond cronyism so I don't believe there is a such a thing as crony socialism but feel free to define for me.
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  • Posted by $ MichaelAarethun 9 years, 7 months ago in reply to this comment.
    Just into Objectivism in One Lesson - Bernstein
    "When the great English scientist William Thomson (Lord Kelvin), was asked why nobody else had invented incandescent lighting, he replied tersely: 'The only answer I can think of is that no one else is named Edison'."

    Some one else may or may not have invented it or they may have found a way to domesticate and farm producers of spermaceti.

    down the page a bit a quote from Edison "Observation based reality rather than faith in the supernatural or slavish obedience to emotional desires is the method by which men learn."

    'Edison learned from Newton and Faraday but never forgot they might be mired in preconceived dogma and associated errors. he proved all things to himself through his own methods of objective examination and among other things learned the received opinion of electrical opinion that light required high voltage and low resistance the opposite was true low voltage and high resistance. He then invented the incandescent light, a power plant, and a full lighting system.' that part paraphrased for brevity.
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  • Posted by Herb7734 9 years, 7 months ago in reply to this comment.
    There's an old saying that I heard in college back in the Bronze Age: "If you were to stand twenty economists in a circle, -- they'd all point in different directions."
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  • Posted by blackswan 9 years, 7 months ago in reply to this comment.
    It's obvious that you've never been in business. If the "selfish" person wants to be successful as a capitalist, his first commitment has to be to better serve his market than the next guy. If he doesn't, he's toast. So, rather than look at his customers as "pawns," he puts them on a pedestal, because only by serving them, can he accomplish his own goals.
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  • Posted by blackswan 9 years, 7 months ago in reply to this comment.
    The only tine you get "perfect" competition is when you're dealing with fungible commodities, and everyone is making identical offers. It doesn't exist. Just look at the coffee business. It's filled with niche players, from starbucks to Dunkin Donuts to McDonald's to Maxwell House to Folger's. Every one of them is following a different business model. None of them is in direct frontal assault competition. They all avoid that like the plague.
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  • Posted by blackswan 9 years, 7 months ago in reply to this comment.
    Look at the lives of the Robber Barons. None of them inherited their wealth, but they built this country. Even today, look at Steve Jobs. He wasn't born with a silver spoon in his mouth either. The so-called advantages of the rich are nothing more than an excuse to steal their wealth in the name of "fairness." There is no inherent wealth advantage. In fact, if the wealthy guy has any sense, he'll finance a Steve Jobs.
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  • Posted by blackswan 9 years, 7 months ago in reply to this comment.
    One thing to be stressed is that no entrepreneur goes into business to compete. He goes into business to find a niche that he can defend, via sustainable innovation. It's extremely expensive and fraught with danger to directly assault a competitor in the marketplace. It's much better to build a unique business model that addresses a particular market segment, where no one else is in business. Only after one is established in a niche can he then consider moving into other niches.
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  • Posted by blackswan 9 years, 7 months ago in reply to this comment.
    Perhaps we should say that we create new environments, rather than change the current one. We still have hot summers, but we create air conditioning to enable us to better survive the heat. And we have heating to survive cold winters. The environment hasn't changed, but technology has been invented so that we can function in spite of the environment.
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  • Posted by 9 years, 7 months ago in reply to this comment.
    I have now traced the philosophical origins of the major schools of economics and all of them reject the philosophy of science - by that I means the hard sciences from the enlightenment. These qualifications should not be necessary, but into todays world they are.
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  • Posted by $ MichaelAarethun 9 years, 7 months ago
    Darwinism is survival of the fittest. Social Darwinism is slavery of the fittest by the scum of the animal kingdom or maybe plant kingdom the stuff that grows and crawls under rocks. If you see a rock kick it you might get a politician twoferone on a good day.
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  • Posted by 9 years, 7 months ago in reply to this comment.
    1) I agree that social darwinism is an oxymoron. Although I think you have the history wrong (but I am not sure). Originally it was used to support capitalism, then eugenics. Many socialists pushed SD to justify their eugenics plan. However after WWII and its association with NAZIs so it was a great way to smear capitalism.

    2) Several other people have made the connection, although I do not think they have taken it as far. For instance, Ray Kurzweil. has said this as well as some others.
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  • Posted by $ jlc 9 years, 7 months ago in reply to this comment.
    Ha! Depending on how you look at it (pun intended), a microscope is an improvement in optics, but an invention in microscopy. The innovation was looking at something small and not at something distant.

    Insofar as philosophy is concerned, Wm has already responded...but I was going to answer, "I suspect that you are more certain that you know Wm's philosophy than Wm is." I guess that is what working with someone for 20 years or more will do.

    Per mamaemma, I probably should term my philosophy 'individualistic' while I am in the Gulch. The people here have more of my attitudes and perspectives that folks outside the Gulch generally do, but I have not found anything a perfect fit.

    Jan
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  • Posted by 9 years, 7 months ago in reply to this comment.
    Sorry about that. However, I am on solid ground that economics is a very confused subject outside of some straightforward things like supply and demand.
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  • Posted by $ WilliamShipley 9 years, 7 months ago in reply to this comment.
    While you may be sure of my philosophical foundations, I am not. You have obviously done serious study on philosophy. I have been less than a dilettante. I did read "The Road to Serfdom" so I know who Hayek is. I can't say that I am familiar with the rest of his work.

    I've read more about philosophy since I joined this site than I have before -- frequently in response to one of your references. Even Rand I only read the novels until recently. I have worked with Jan for over 20 years and know some other objectivists who I generally agree with.

    Of course someone invents the first example of a kind of object. And they use other inventions and materials to do that. Once that's done, the vast majority of invention goes into creating an enhancing the object. Modern incandescent bulbs are far different from what Edison invented but are only improvements.
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  • Posted by Herb7734 9 years, 7 months ago in reply to this comment.
    OY!
    DB - you're making me insane.
    We're doing more theme & variations than a Beethoven quartet.
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  • Posted by Zenphamy 9 years, 7 months ago in reply to this comment.
    Dale, I'm venturing away from terminoloy related to property rights here.
    I still think of 'Social Darwinism' as an oxymoron, or at least a badly misused term by social 'scientist'(also an oxymoron). The application of the term has always been as a criticism of Capitalism, even the free-market. And it's intent has always been to convince others of the evilness of the free-market and property rights, making use of the religious antipathy towards the theory and study of evolution. At the time the term was coined, religious belief was strongly opposed to evolution, and socialist were attempting to establish themselves and their work as credible 'science' on par with physical sciences.

    I can easily see the comparison of inventions and evolution and I like that idea. I don't know that I've run into it anywhere else. I wonder if there might also be a similar argument made between the results of evolution (invention) in all of nature (that being a balance of life forms filling available niches (specialization)) and mankind's unique abilities to manipulate his environment with Capitalism being that overall balance with man's innovation (separate from invention) being that manipulation.

    If you think of Otis's elevator safety latch and brake, the hoist in mining and hundreds of other applications had been utilized for centuries and so had latches and safety brakes on mill wheels and gearings, but it's application in safely conveying people was the driver of multi-story buildings. That was an innovation of existing ideas, that made safe use of lifting devices that increased the value of property and made the work necessary of man, less.

    But invention, I think of as being similar to the change in the birds' beaks (noted by Darwin on Galapagos) accomplished by evolution that opens up a new resource. In the case of man, I think of wireless communication brought about by radio.

    Just thoughts. I need to think more on it.
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  • Posted by DrZarkov99 9 years, 7 months ago
    The "social Darwinists" fail to understand the complex nature of the marketplace. No single invention or new product is going to sink all other competitors, as those competitors quickly move to invent improvements in what they offer, or new products that have little or no competing opponents in the market. If you don't understand how dynamic the nature of a free market is, it all seems like chaos.

    What creates the appearance of a "survival of the fittest" atmosphere in the market is crony capitalism, and government picking winners and losers. As Heinlein said (through Lazarus Long) "Of course the game is fixed, but you can't win if you don't play."
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