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September 12, 2013


The Purpose of Society

by Dr. Marek A. Suchenek

Copyright and all rights reserved.

This article is posted here for in-class use only. No other use or uses is/are allowed.



"Necessity is the plea for every infringement of human freedom.
It is the argument of tyrants; it is the creed of
  slaves." [William Pitt The Younger]



"The welfare of the people in particular has always been the alibi of tyrants [...]." [Albert Camus]


Quick links:

    Fundamental question, Simple answer: the purpose
    What's not a purpose
    Negative aspects of society
    It submits individual to the group
        How much submission for common good?
        Which objectives submission is necessary and proper?
        Example 1: Imigration
        Example 2: Hitler against individualism
    It hampers competition
        Examples of accepted hampering of competition
            academic degrees
            titles to properties
            citizenship
        The necessity of competition for group well-being
        Legislation that protects competition
        Social leveling in Soviet Union
        Example 3: Lenin against competition
        Example 4: Hitler against competition
        Examle 5: Sherman Antitrust Act
    Social parasitism
    Current events ...


Perhaps the most fundamental question in this class is:


What is the primary purpose of society?


Unlike individuals, who do not serve any externally imposed purpose and are ends on their own right (as some - e.g., Freidrich A. von Hayek - have said, life's sole purpose is to continue itself1), society does serve a specific purpose.


But what is it?


An exhaustive answer to this question is lenghty and rather complicated, and many analysts do their best to obfuscate the truth even more.


They will smuggle into their masterfully convoluted "answers" mutually contradictory assertions from which they prove any false conclusions they like. (Remember the Bertrand Russell's proof of "I am the Pope" from two contradictory assertions:

"2 + 2 = 3" and "2 + 2 = 4".)


Here is a surprisingly simple but fairly accurate answer to the above question.




Society is a group survival strategy for its members.


Clearly, forming a society, the main the purpose of which is a group survival strategy, is a logical conclusion from the mentioned above Hayek's thesis that "life's sole purpose is to continue itself".

It allows a group of individuals, many of whom may not be able to survive on their own, to form a consensual coalition (a contract, if you will) that enhances their chances for their individual survival.


And that is, basically, all that is to it.


In particular, providing for those outside of a society is not the primary purpose of the society. After all, helping its adversaries and foes to survive and, perhaps, multiply will diminish the chances of its own survival.


Also, compelling its members to become "better" members
of a society is not the primary purpose of the society.


Also, making every member
of a society equal to others (a.k.a. social leveling2) is not the primary purpose of the society.


To its all benefits, society also has some negative sides.




Let's briefly analyze each of these.


1. It tends to submit an individual to the group.


In order for the group survival strategy to work, individuals must give up on some of their individual objectives. For if everyone would pursue his egoistic goals with no consideration to others and the group, there will be no room for coordinated effort to survive.


There is a question:

How much of individual way of life needs to be subordinated to the "common good" in order for the group to survive?



Here are some opposing answers.




One can completely submit the individual to the group. In this scenario, the benefits of survival might not be as obvious as one would think. For what good does it make to live and work in bondage, often in miserable conditions, under the group's tyranny? Given enough time, all major and well-documented implementations of socialism converged towards this scenario.



Or, one can have the individuals relinquish only minimum of their liberty and property that is necessary for the group to carry on safely its survival strategy. This scenario gives the individual a real chance to pursue his or her happiness as he/she sees it.


So, the second question that should be asked here is:


For which objectives of the group survival strategy is it necessary and proper to infringe upon individual freedoms, and for which is it not?

Below are two examples of group objectives that unnecessarily and imporperly infringe upon individual freedoms.


Example 1

An indiscriminate naturalization policy and inadequate enforcement of the U.S. border and the immigration laws facilitates infusion of harmful and asocial individuals (e.g., terrorists, criminals, psychopaths, etc., and those who would do anything whatever they can get away with) into the American society. The threat that some of those individuals pose to the society is used as a universalist excuse for further submission of all individuals to the society by restricting their rights, for instance the right to keep and bear arms (2nd Amendment) and the right to privacy (4th Amendment)

Although such restrictions are often characterized as "necessary" for the national security, they might not have been needed if the border and the immigration laws were duly enforced, and if the proper standards for naturalization were followed.

Hence, these restrictions are unnecessary as what they accomplish could have been achieved with different, less intrusive (for the American people) means that would not "necessitate" infringements of individual rights and freedom.

Note: History provides a long list of atrocities that innocent people were the targets of. Whatever bad happened elsewhere can happen in the U.S. as long as we allow the individuals who were involved in committing the said atrocities come and settle here.


Example 2

A quote from Adolf Hitler who was arguably the most infamous advocate of submitting the individual to the group:


"It is thus necessary that the individual should finally come to realize that his own pride is of no importance in comparison with the existence of his nation; that the position of the individual ego is conditioned solely by the interests of the nation as a whole; [...] By this we understand only the individual's capacity to make sacrifices for the community, for his fellow men. " http://quotes.liberty-tree.ca/quote/adolf_hitler_quote_c843


Would you agree? I hope you would not.

Here is one more of Hitler's collectivist ideas:

"The good of the community takes priority over that of the individual."

Quotation from research article "Against the mainstream: Nazi privatization in 1930s Germany".





2. It hampers competition.




   
This is one of the major problems with any society, so it needs to be addressed properly.

Under the circumstances of shortage of resources, an individual who cannot compete is unlikely to survive on his own. Protecting that individual from competitive pressure is often the most practical way to secure his sustained survival.

And the restricting of competition usually does not end here. For example:




The list goes on and on and on ...
And for good reasons (some of which were quoted above).

But meaningful competition is necessary for our economic well-being. It makes individuals genuinely willing to succeed in achieving what they are competing for.


Therefore, it is imperative to not curtail competition any more than absolutely necessary for the effectiveness of the survival strategy that society provides to its members, and to minimize the lasting counter-competitive effects of such curtailment whenever it takes place.

This postulate is particularly critical in all cases where the losses arising form a specific curtailment of competition may considerably outweight its benefits.

The U.S. Congress and the courts have long been aware of that. For instance, the anti-trust law was passed in 1890 in order to minimize curtailment of competition due to monopolization. Unfortunately, the current trend goes in the opposite direction (note the mergers of large companies into even larger companies), for the dertiment of most of us, Americans.

Oddly enough, some of those (ostensibly?) concerned with this trend towards monopolization are postulating ... more monopolization; for instance, monopolization of political power, monopolization of heathcare, monopolization of transportation, etc.

Also, social leveling (an idea brought to America from
  Soviet Union and Eastern Europe) and other means of forced "equalization" of individuals have profound inhibiting effects on the competitiveness of individuals, and as such, may threaten economic well-being of us and our posterity.



Top three Soviet leaders in 1919. From the left to the right: Stalin, Lenin, and Trotsky.


Example 3

Lenin (the main architect of the Soviet Union) was a harsh critic of competition:

In the capitalist countries the opportunists and revisionists are opposed to a socialist revolution. [...] They are against working-class solidarity and, in effect, deny proletarian hegemony in the struggle against imperialism. In their attempt to derogate the time-tested experience of socialist construction the social-reformists and revisionists preach a "liberalised" socialism which rejects the leading role of the Marxist-Leninist parties, replaces socialist democracy by a liberalism of a bourgeois type, undermines centralised planning and economic management, and encourages market anarchy and competition.

http://www.revolutionarycommunist.org/wweb/leninindexfiles/llw-all.htm


Well, Lenin's ideas did work really well in the Soviet Union, didn't they? (Of course, they did not.)
A quote on competition vs. emulation (a
Soviet substitute of competition):

"The first variant ["competition"] is a literal translation of the Russian term ["конкуренция", "konkurenciya"], commonly used by Western authors. The second form [emulation] is an official Soviet translation of the term, intended to put distance from the "capitalist competition", which in its turn was translated as "капиталистическая конкуренция", "kapitalisticheskaya konkurenciya".

There was a significant amount of propaganda along the lines that "capitalist competition" favors only the winning capitalist, while "socialist emulation" benefits all."

http://en.wikipedia.org/wiki/Socialist_emulation.



Example 4

Hitler "was strongly against free competition".

Quotation from research article "Against the mainstream: Nazi privatization in 1930s Germany".


Example 5



Two quotes from Encyclopædia Britannica:

"Sherman Antitrust Act, first legislation enacted by the United States Congress (1890) to curb concentrations of power that interfere with trade and reduce economic competition. It was named for U.S. Senator John Sherman of Ohio, who was an expert on the regulation of commerce.

One of the act's main provisions outlaws all combinations that restrain trade between states or with foreign nations. This prohibition applies not only to formal cartels but also to any agreement to fix prices, limit industrial output, share markets, or exclude competition. A second key provision makes illegal all attempts to monopolize any part of trade or commerce in the United States. These two provisions, which comprise the heart of the Sherman Act, are enforceable by the Department of Justice through litigation in the federal courts. Firms found in violation of the act can be ordered dissolved by the courts, and injunctions to prohibit illegal practices can be issued. Violations are punishable by fines and imprisonment. Moreover, private parties injured by violations are permitted to sue for triple the amount of damages done them."

"One notable example late in the 20th century was the 1984 breakup of the American Telephone & Telegraph Company, which left the parent company, AT&T, as a provider of long-distance service while seven regional “Baby Bell” companies provided local telephone service. Many of the original “Baby Bell” companies have since merged. One of the largest antitrust suits since that time was brought against the Microsoft Corporation. A decision in 1999 found the company had attempted to create a monopoly position in Internet browser software, but a court-ordered breakup of Microsoft was overturned by an appeals court in 2001."

http://www.britannica.com/EBchecked/topic/
540115/

Sherman-Antitrust-Act


One of the pathological consequences of hampering competition is social parasitism - an opposite to work ethic. Indeed, social parasites (a.k.a. "free riders") leave off the work of others while protecting themselves from punishment or elimination (that competition incorporates to some degree) with the society's counter-competitive means. This leads to even bigger problem since collectivist governments usually facilitate social parasitism and, eventually, become parasitic governments.


Current events ...




DOJ Files Antitrust Lawsuit Against Google, Draws Bipartisan Praise

https://www.theepochtimes.com/lawmakers-praise-doj-antitrust-lawsuit-against-google-say-its-long-overdue_3545707.html

Lawmakers in the House and Senate praised a Department of Justice (DOJ) lawsuit against Google over allegations that the tech giant used its power to preserve its monopoly.

"Today's lawsuit is the most important antitrust case in a generation," Sen. Josh Hawley (R-Mo.) said in a statement after the filing. "Google and its fellow Big Tech monopolists exercise unprecedented power over the lives of ordinary Americans, controlling everything from the news we read to the security of our most personal information. And Google in particular has gathered and maintained that power through illegal means."

The lawsuit drew bipartisan support. House Antitrust Subcommittee Chairman David N. Cicilline (D-R.I.) said in a statement that the lawsuit was "long overdue."


The Justice Department's Antitrust Lawsuit Against Google Isn't Enough to Stop the Abuses of Big Tech

https://time.com/5901696/google-antitrust-case/

This week's Department of Justice antitrust suit against Google is the agency's first major case against Big Tech since the 1998 Microsoft suit. It comes on the heels of a 451-page report by the House Antitrust Subcommittee that enumerates the dubious and harmful practices of the dominant digital companies and proposes the reinvigoration of the antitrust laws. The Federal Trade Commission (FTC) is reportedly not far behind with its own antitrust action against Facebook.

All these initiatives are important, but they are not sufficient.

The abusive practices of the dominant digital platforms are so widespread and have become so embedded that there is no single solution. What is needed is a cocktail of remedies that blends antitrust with ongoing regulatory oversight.


Justice Department Sues Monopolist Google For Violating Antitrust Laws
Department Files Complaint Against Google to Restore Competition in Search and Search Advertising Markets

https://www.justice.gov/opa/pr/justice-department-sues-monopolist-google-violating-antitrust-laws

As one of the wealthiest companies on the planet with a market value of $1 trillion, Google is the monopoly gatekeeper to the internet for billions of users and countless advertisers worldwide. For years, Google has accounted for almost 90 percent of all search queries in the United States and has used anticompetitive tactics to maintain and extend its monopolies in search and search advertising.

[...]

These and other anticompetitive practices harm competition and consumers, reducing the ability of innovative new companies to develop, compete, and discipline Google's behavior.

The antitrust laws protect our free market economy and forbid monopolists from engaging in anticompetitive practices. They also empower the Department of Justice to bring cases like this one to remedy violations and restore competition, as it has done for over a century in notable cases involving monopolists over other critical industries undergirding the American economy like Standard Oil and the AT&T telephone monopoly. Decades ago the Department's case against Microsoft recognized that the antitrust laws forbid anticompetitive agreements by high-technology monopolists to require preinstalled default status, to shut off distribution channels to rivals, and to make software undeletable. The Complaint alleges that Google is using similar agreements itself to maintain and extend its own dominance.


House Panel Requests Documents From Facebook, Google, Amazon, Apple in Probe

https://www.theepochtimes.com/house-panel-requests-documents-from-facebook-google-amazon-and-apple-in-probe_3082414.html

"Big tech companies are facing a historic wave of scrutiny, with antitrust investigations launched at both the state and federal level. The Justice Department (DOJ) and the Federal Trade Commission are investigating Facebook, Google, Apple, and Amazon for potential violations of antitrust law. A partnership of about 50 U.S. states and territories, led by Texas Attorney General Ken Paxton, is also probing Google’s practices, while a separate bipartisan coalition of attorneys general in eight states are looking at possible antitrust issues with Facebook."

[...]

"In July, the Justice Department announced that its antitrust division is "reviewing whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers."




Senate Panel Not Impressed With Google Exec's Evasiveness on Monopoly Issues

https://www.theepochtimes.com/senate-panel-not-impressed-with-google-execs-evasiveness-on-monopoly-issues_3502755.html

"A top Google executive was confronted repeatedly on Sept. 15 [2020] by Republicans and Democrats on the Senate Judiciary Committee's anti-trust subcommittee regarding the tech giant's monopolistic dominance of the digital advertising market."




CVS bought your local drugstore, mail-order pharmacy and health insurer. What's next, your hospital?

https://www.washingtonpost.com/business/cvs-bought-your-local-

drugstore-mail-order-pharmacy-and-health-insurer-whats-next-your-hospital/

2019/01/31/4946dcda-1f2c-11e9-9145-3f74070bbdb9_story.html?utm_term=

.9b1acd085634

"There has been a lot of talk in academic and policy circles recently about the failure of antitrust law to put the brakes on a decades-long merger wave that has consolidated industry after industry into a handful of dominant players, in the process deterring innovation and entrepreneurship, slowing economic growth, and widening the income gap between the rich and everyone else."


"[...] over the past 40 years, judges and regulators, in a vain search for more objective and scientific criteria, have taken a ridiculously cramped view of the antitrust law. Too many cases are reduced to a highly technical econometric quarrel about whether prices will rise or fall rather than a more full - if somewhat more subjective - analysis of whether competition is likely to be reduced."

Comment (MS): Are you still surprised that disillusioned (and misguided) masses opt for socialism? Monopolies and (trans-national) trusts are killing the modern Western free-market capitalism, together with its unsurpassed productivity and affordability that made wealth and good lives available to ordinary people.

The rational remedy would be to update and strictly enforce the Sherman Anti-Trust Act rather than trying to follow the Venezuela model. After all, replacing corporate monopolies with government monopoly, as the disillusioned (and misguided) masses did in Cuba (in 1958), Soviet Union (in 1917), China (in 1949), Venezuela (in 1998), and several other nations, seems like a "cure" that is worse than the disease it was supposed to heal.



Reference

Against the mainstream: Nazi privatization in 1930s Germany
by Germà Bel
Economic History Review (2009) pp. 1 - 22
http://www.ub.edu/graap/EHR.pdf
(a link to the original manuscript at Universitat de Barcelona I Ppre-IREA
http://www.ub.edu/graap/nazi.pdf)



Footnote 1. This is why your life is supposed to be happy so that you have a strong desire to continue living. And there is no substitute for freedom when it comes to your pursuit of happiness and survival. The above logically explains the proclamation of "inalienable rights" to "life, liberty, and the pursuit of happiness" in the Declaration of Independence.






































Footnote 2. Social leveling and freedom are irreconcilable as different individuals will exercise their freedom differently and with different outcomes. Thus the only practical way to level a society leads through deprivation of individuals of their freedom.