I'm a boricua ancap libertarian of the Rothbard-Machado variety. Born in P.R., grew up in Queens, now living in Cali. Be warned: I am blunt & angry.
"It should be remembered by radicals that, if they wanted to, all workers could refuse to work for wages and instead form their own producers’ cooperatives and wait for years for their pay until the products are sold to the consumers; the fact that they do not do so, shows the enormous advantage of the capital investment, wage-paying system as a means of allowing workers to earn money far in advance of the sale of their products. Far from being exploitation of the workers, capital investment and the interest-profit system is an enormous boon to them and to all of society."
If, for example, you measure inequality by comparing the number of dollars it takes to land at a certain income percentile, with a hard floor on the low end (that being $0.00 per year in wages) but no ceiling on the top end, and if you have growth in the economy, then it is a mathematical inevitability that incomes at the top will continue to pull away from incomes at the bottom, for the same reason that any point on the surface of a balloon will get farther and farther away from the imaginary fixed point at its center as the balloon is inflated. This will be the case whether you have the public policies of Singapore or Sweden, and indeed it is the case in both Singapore and Sweden.
Purely symbolic systems are easy to manipulate, which is why any two economists can take the same set of well-documented economic data and derive from it diametrically opposed conclusions. …
The physical economy — the world of actual goods and services — looks radically different from the symbolic economy. Measured by practically any physical metric, from the quality of the food we eat to the health care we receive to the cars we drive and the houses we live in, Americans are not only wildly rich, but radically richer than we were 30 years ago, to say nothing of 50 or 75 years ago. And so is much of the rest of the world. That such progress is largely invisible to us is part of the genius of capitalism — and it is intricately bound up with why, under the system based on selfishness, avarice, and greed, [SIC] we do such a remarkably good job taking care of one another, while systems based on sharing and common property turn into miserable, hungry prison camps.
We treat the physical results of capitalism as though they were an inevitability. In 1955, no captain of industry, prince, or potentate could buy a car as good as a Toyota Camry, to say nothing of a 2014 Mustang, the quintessential American Everyman’s car. But who notices the marvel that is a Toyota Camry? In the 1980s, no chairman of the board, president, or prime minister could buy a computer as good as the cheapest one for sale today at Best Buy. In the 1950s, American millionaires did not have access to the quality and variety of food consumed by Americans of relatively modest means today, and the average middle-class household spent a much larger share of its income buying far inferior groceries. Between 1973 and 2008, the average size of an American house increased by more than 50 percent, even as the average number of people living in it declined. Things like swimming pools and air conditioning went from being extravagances for tycoons and movie stars to being common or near-universal. In his heyday, Howard Hughes didn’t have as good a television as you do, and the children of millionaires for generations died from diseases that for your children are at most an inconvenience. As the first 199,746 or so years of human history show, there is no force of nature ensuring that radical material progress happens as it has for the past 250 years. Technological progress does not drive capitalism; capitalism drives technological progress — and most other kinds of progress, too.
None of this should be taken as minimizing the problems faced by the poor, in this or any other country. But let’s stay in the realm of the real for a little while: What is it, in terms of physical goods and services, that we wish to provide for the poor that they do not already have? Their lives often may not be very happy or stable, but the poor do have a great deal of stuff. Conservatives can be a little yahoo-ish on the subject, but do consider for a moment the inventory of the typical poor household in the United States: at least one car, often two or more, air conditioning, a couple of televisions with cable, DVD player, clothes washer and dryer, cellphones, etc. As Robert Rector and Rachel Sheffield report: “The home of the typical poor family was not overcrowded and was in good repair. In fact, the typical poor American had more living space than the average European. The typical poor American family was also able to obtain medical care when needed. By its own report, the typical family was not hungry and had sufficient funds during the past year to meet all essential needs. Poor families certainly struggle to make ends meet, but in most cases, they are struggling to pay for air conditioning and the cable-TV bill as well as to put food on the table.” They also point out that there’s a strong correlation between having boys in the home and having an Xbox or another gaming system. …
What is it the poor actually need? In general, they do not have access to very good education. But our problem with education is not that we spend insufficiently on it. Rather, the problem is that our K–12 system is organized as something between a monopoly and a cartel. Medicaid, the health-care program for the poor, is designed similarly, and, no surprise, the poor receive inferior health care. If they are not often materially deprived, they are very often materially insecure, with little in the way of savings or assets. Even after a lifetime of full-time work, many poor people have retirement options far inferior to those enjoyed by wealthier people, despite having their paychecks garnished to the tune of 12 percent or so for — this should start seeming familiar — participation in a government-monopoly retirement program.
None of those problems facing the poor — and they are the key problems — is an economic problem. All of them are political problems. For progressives, the obvious solution to that is less economics and more politics. The possibilities of economic division will always be limited by what there is to divide — so many houses, so many cars, so many apples and oranges, so many SweeTarts. Progressives don’t care what’s in the bag, so long as they get to be in charge of it. It is no accident that they talk about the “distribution” of wealth and income as though those things were literally distributed, like candy out of an Easter basket, by the distribution fairy. …
Politics is parasitic. Even at its best, it produces no goods of its own; it has only that which it takes from what others produce. For about 200,000 years, human beings produced almost nothing — the per capita economic-output curve is nearly flat from the appearance of the first homo sap. until the appearance of Jethro Tull and Eli Whitney. We’ve had politicians since before Hammurabi, but we didn’t escape the shadow of famine until a few thousand years later when somebody discovered that the wars fought over dividing up the harvest could be prevented by making that harvest bigger — and then figuring out how to get that done. Politics is a footnote — the inventory in your local Walmart is the headline.
This is a tremendous essay, worth reading in its entirety.
Related: How Government Hurts The Poor
"Even more annoying than economically uninformed people making unfounded economic assertions are people who have a smidgen of exposure to economic jargon or economic models but inadequate knowledge and wisdom to apply that jargon and those models helpfully to reality."
"…Scarcely a year goes by but some economic fanatic, inwardly urging to ‘do good’, appears with a handful of followers and attempts to establish a commune. It is predictable that they will all fail sooner or later. Most will fail sooner. This is not the way of the world, nor is it within the nature of man."