Here's a fascinating profile on radical Santa Fe Institute economist Samuel Bowles, an empiricist who says his research doesn't support the Chicago School efficient marketplace hypothesis. Instead, Bowles argues that the wealth inequality created by strict market economics creates inefficiencies because society has to devote so much effort to stopping the poor from expropriating the rich. He calls this "guard labor" and says that one in four Americans is employed to in the sector -- labor that could otherwise be used to increase the nation's wealth and progress.
The greater the inequalities in a society, the more guard labor it requires, Bowles finds. This holds true among US states, with relatively unequal states like New Mexico employing a greater share of guard labor than relatively egalitarian states like Wisconsin.The problem, Bowles argues, is that too much guard labor sustains "illegitimate inequalities," creating a drag on the economy. All of the people in guard labor jobs could be doing something more productive with their time--perhaps starting their own businesses or helping to reduce the US trade deficit with China.
Guard labor supports what one might call the beat-down economy. Community Action's Porter sees it all the time.
"We have based almost everything we have done on the idea that we always need a part of our workforce that is marginalized--that we can call this group into action at any time, pay them nothing and they will do anything that needs to be done," she says.
More discouraging, perhaps, is the statistical fact that a person born into this workforce has little chance of rising beyond it.
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The ever-expanding copyright laws(both the passing, and the expense of enforcing) are a good example of this.
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I guess this is an example of Karl Marx' observation in the 19th century: "relations of production lag behind the productive forces and become fetters on the growth of society's productivity" -- A Contribution to the Critique of Political Economy (1859)
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Did anyone see QI in Britain yesterday evening? They were quoting some amazing statistics about the US prison population -
America has 5% of the Earths population but about 25% of the Earths prison population, many of whom work as forced labor.
US prisoners make almost all helmets for the military, 42% of bullet proof vests, 60% of license plates, etc.
The 'three strikes' rule was highlighted for putting some people away for 25 years to life for trivial offenses such as stealing videos, cookies, etc.
They were claiming that in some parts of America there are more 19 year old black males in prison than in college, and implying that America has basically re-invented slavery.
It's a weird world we live in.
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Regarding your stats, it was actually 100% of all military helmets, ammunition belts, bulletproof vests, ID tags, and other items of uniform, are made by prisoner labour.
Also made in the US by forced prison labour, for 25¢ an hour (meaning a competitive edge against Mexico and China):
93% of domestically produced paint.
36% of home appliances.
21% of office furniture.
And remember 1 in 30 men, aged 20-34 is in jail. For black men the figure is 1 in 9.
"They were claiming that in some parts of America there are more 19 year old black males in prison than in college.."
Actually, the stat wasn't restricted to an area, in the US there are more 17 year old black men in jail than in college.
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Yes, yes let us subject the airy fairy academic theories of uncle miltie friedmann and the U. of Chicago gang to rigorous test. Oh wait, we just did. They failed, causing potentially the biggest bank bust in history. Let's see now how about that rigorous old alan greenspan. He based his ideas on, wait for it, a romance novelist named ayn rand. Man that's great academic rigor. We need more of that kind of clear headed thought. Then there is ben bernanke, reknowned academic expert on the Great epression. He must have seen the bank failures coming. Anything that radical must have shown some signs to such an expert, right? Nope, guess not.
Now what was your problem with this Bowles guy? Lack of rigor, yeah that was it. How about class warfare, that sounds more like it. Any nonsense that favors the upper class is declared rigorous, clear and well thought out. Any minor protection for working people is just terribly impractical. Now why don't you just say it and quit trying to put out this smokescreen about scholarly test?
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