Capitalism and Unfair advantage

What people call “crony-capitalism” is a private party gaining an unfair advantage in the marketplace over his competitors by the means of governmental intervention in trade. This happens by lobbying the Government to pass trade regulations in their favour, creating state sponsored monopolies. But when the Government is accorded such power to intervene in the market, by the citizens, the market is no longer free, and the political-economic system is not Capitalism.

Allowing governmental interference in trade activity will incentivise the private parties to lobby, and makes the bribery of governmental officials possible. Absent governmental interference, there is no way an individual can have an unfair advantage in the market.

Observe that “fairness“ doesn’t mean “equality”. Fairness is a concept to be understood in the context of economic freedom. A free trade is fair trade. It means that the consumer is choosing by his free and voluntary will, with his complete knowledge, the best product in the market he can afford, from the producer he wishes to buy from. The choice is not unfair, if it is not forced upon him.

Competence makes wealth possible, not the other way around. In a capitalist system, wealth is produced through competence, and lost through incompetence. How the individual spends his wealth is completely his choice. If a poor producer is not able to compete with a rich producer in creating and selling a better product at a lower price, it is not unfairness. It is unfairness if you are forced to buy from the poor producer, by the government, because he needs money, though he is incompetent. It is unfairness if any producer, poor or rich, is not allowed to sell his product in the marketplace through governmental interference. It is unfair because then, your choice to trade is no longer free.

In a Capitalist society, the institution that protects the individuals against the abuse by a producer who sells his goods to his customers by cheating or stealing, or by physically forcing his customers to buy from him, or by forcing his competitors out of the market by physical violence, is Government.

Individual rights are the means of preserving an individual’s morality in the society. They are the principles that protect an individual from the immoral choices of his neighbours. The only proper purpose of Government is to protect the individual rights: Life, Liberty and Property, whose meaning is in essence, to safeguard the freedom of action of the individual.

Capitalism is the only morally proper system of economy, because it is the only system that is made possible by, and works on the principle of individual rights.

– Avinash Kumar.

Note: This article is originally my answer to the question on Quora: How can capitalism be a success in India if there are too many people in India who lack proper morals & ethics and thus misuse capitalism to promote crony capitalism in order to cheat and abuse people for their own benefits?

Theories and Concepts

A Theory is an abstract structure of non-contradictory statements based on an assumption. Its purpose is to explain a fact of existence, or to make a calculated prediction about a future event, or to create a new structure from other existents, that has no existence of its own, till then. For example, Theory of Relativity was used to predict the motion of the planet mercury. Theory of GOD was used to create caste system which was in turn used to maintain inequality of men before the establishment of the days past.

The assumption, which is the first statement of the theory being stated, can be a reasonable one, ie., which does not contradict the known facts of existence: like in the case of theories of physical sciences. Or a blatant contradiction of the fundamental laws of existence, especially the law of identity: like in the case of the theory of God (Refer my previous article, “Atheistic nature of an objectivist”). If the assumption contradicts existence, the assumption is false, so must be the entire theory built on it.

Validity of a theory is judged by its conformity to knowledge. And all valid knowledge exists in terms of concepts, the integrations of facts of existence. A concept can be an integration of either previously defined concepts, or it can be an integration of percepts: the data directly gathered by the senses, and processed by the consciousness.

Hence a concept cannot be formed by integrating non-existents, since that which doesn’t exist cannot have characteristics(let alone defining characteristics), and no definition can be framed to describe it.

The goal of sciences is to establish and further the knowledge by means of concepts. It is done by collecting and subsuming the evidence into a defined concept, and only when that cannot be done, develop a new theory by making a reasonable assumption to explain the collected evidence, with an understanding that a new definition(a new concept) will be framed in the future, which makes the assumption, and the associated theory, redundant. Till the day a concept is defined and integrated into the entire knowledge by a human consciousness, it must be cautiously observed to never accept the theories as concepts. Theories are what they are: reasonable(or contradictory) assumptions. Concepts are valid knowledge.

Root of human suffering lies in trying to counterfeit science. ie., creating and propagating false theories as concepts and accepting the associated false assumptions as facts of existence. The creation part is done by conscious cheats, propagation is done by ignorant liars, and this entire business is silently accepted by billions of sufferers.(Refer my previous article: “You are what you are”).

The trick to rule over men is to make them accept the false theories as concepts, particularly and especially in two major fields of science: Economics and Politics. The typical bright student anywhere in the world will readily find these two sciences nonsensical and boring right from the beginning in majority of the countries, and in majority of the countries these fields are not considered sciences at all. This is not happening by accident.

Popular economic and political theories taught in the university classrooms are devised ambiguously, by purpose, and PhDs being awarded are to those who are the most dissociated from existence, by purpose. To create the so called “experts” of Economics and Politics that will make the masses accept: that the only way to lead lives is to maintain the status-quo, or to not deviate too much; that suffering is eventual to anyone and must be accepted by everyone at some scale, irrespective of any crime being necessarily committed; that it is the purpose of the Government to offer free services to the non-productive at the expense of the productive; that Man’s authentic rights, especially his right to his own property are not necessarily valid all the time; that the new rights being conferred by the constitution of the country can sometimes “acceptably” contradict the Man’s right to his own life.

An objectivist will never betray the law of identity, and every theory he is being thrown at, he will, independent of others, verify its truth or falseness by means of valid concepts, ie., with existence as the standard. He can’t be made to lie that A is not A. He can’t be made to conform to anything less than a completely free society, where authentic individual rights are absolutely respected.

Avinash Kumar

Objective Absolute

Welcome to the Objective Absolute. In other words, welcome to reality. I am going to teach you philosophy, because it is in my own interest to desire to live in a free society, because till date I have not found a single teacher alive today, who can objectively teach philosophy, by treating it as it is, a proper objective science: a science that teaches you through purely logical derivation, the right choices to make in any specific circumstance of your life, proper way to conduct relations with fellow men, proper values to choose, gain and keep, and the virtues that you need to practice to keep them. No matter the kind of situation you find yourself in, philosophy will always show you the proper choice to make.

Philosophy, the foundation of all valid human knowledge, like all proper sciences is solely based on the fundamental law or axiom of existence: The Law of Identity. A thing is itself. A is A. Existence exists, and everything that exists has an identity of its own. A true philosopher’s job is to objectively understand the nature of identities of existents,  validate and define their properties, and thus prove what can and cannot be done with/to them. In essence, a philosopher ruthlessly applies the law of identity to everything in existence, including and especially, Man.

I learnt philosophy from my teacher, the philosopher Ayn Rand, and to my complete knowledge, I am the one of the very few in this world who learnt it properly, by consciously acknowledging the proper identities of all the existents I have faced so far, without evading any single thought, feeling or experience that I had in my entire life. She had been dead for more than 3 decades when I found her works, and she was the only one that helped me to integrate my entire life, showed me my flaws, guided me to correct my actions, and taught me the skills I need to acquire, to see the things for what they truly are, without demanding my faith in any matter: a true teacher. I do not claim omniscience. A man does not possess and should not be expected to possess omniscience. What I can claim is that I am an Objectivist, all the knowledge that I possess and teach is in the form of concepts that I can objectively validate, solely based on the Law of Identity, The only other Objectivist I can certainly vouch for, being Ayn Rand.

An objectivist is a person who understands that existence is objective absolute. [It means that the facts of existence are what they are, irrespective of any man’s feelings, wishes, hopes, desires, or fears], and his Faculty of REASON, the specific attribute of his consciousness[faculty that integrates the perceptions that he consciously perceives through his own senses into concepts, and those concepts into still higher abstractions: by unambiguous, contextual and proper definitions], is his only means of dealing with it. Because he understands that by definition, Man is a Rational animal. And that is what an objectivist chooses to be, consciously. A rational animal. He continuously applies the law of identity to everything he encounters in his life because he understands that the universe, is completely knowable, and he is on a continuous mission to find out the nature of identity of everything that interests him. All the interests of an objectivist, all his desires and their source: his values, are guided solely by his reason, his defining value, for the only purpose of furthering his own life, his ultimate value.

An objectivist, hence holds his life as the standard of all his values, each value serving the purpose of this ultimate value, thereby completely integrating his existence. An objectivist never leads a compartmentalised life. He is not one person now and a completely different person the next moment. A selective objectivist is not an objectivist at all. The mark of an objectivist is the unwavering consistency of his character. He never doubts his own existence. He accepts nothing but reason, he submits to nothing but reason. Neither all the guns in the world nor all the pleas of hypocrites in the world can make him to falsely identify any existent. He calls white as white and black as black. He uses words as concepts, in their true meaning, and he doesn’t make statements that he doesn’t mean. Hence, he can survive only in a free society.

A free society is characterised by the democracy limited by inviolable authentic individual rights, which are clearly defined in that society’s constitution, all of them being logically derived from the man’s first right in a society: Man’s right to his own life. This right is made possible by the deriving from it, the following authentic rights: The right to act by the judgement of his own mind, the liberty to take his own decisions, the right to earn and keep his own property, and thus the right to pursue his own happiness. None of these authentic rights can logically contradict his right to his own life, they being sequentially derived from it, and making it possible, nor do any of these rights contradict the same rights of another man living in the society. To ensure absolute protection to these authentic rights of man, Government is formed in a free society, and only for that purpose. And the purpose is achieved by prohibiting the initiation of force from human relations. No man may initiate the use of force to submit other men to his will.

There are two primary ways in which an individual’s authentic rights can violated by force: One, by other men in the society, and two, by foreign invaders. The Government tackles the first task by structuring and maintaining a competent and adequately numbered police force, and tackles the second task by maintaining competent defence forces. Observe here that the actions of the Government(which in fact is a hierarchical structure of individuals of the same free society), are limited by the same authentic rights of the constitution. Thus ensuring the purpose of the task of clearly defining authentic rights in the constitution is served: to prevent the government from violating the authentic individual rights of the citizens of its own society.

All the laws made by the lawmakers in a free society are, and ought to be, merely application of authentic rights of man to specific circumstances or activities in the society. Thus laws can only dictate what an individual cannot do in a free society: In essence, prohibit initiation of force. No law can dictate what a citizen must do. Because to compel or force an individual to commit a particular action against his own free will is to force him to act against the judgement of his own mind, thus a violation of the man’s right to his own life.

To settle the disputes between individuals, by JUDGING specific issues in the society solely based on the authentic individual rights, and continuously monitor the objectivity of the laws made by lawmakers(Objective laws are the proper laws that cannot contradict neither other previously made laws, nor the authentic rights listed in the constitution: the source of all laws), the structure of JUDICIARY is formed.

Note here that the lawmakers(individuals that make up the elected government) may never make any laws, nor grant any rights, nor collect nor spend the individual’s money(portion of an his own property that he shall give only by his voluntary consent, and for the purpose of only those essential services he is receiving from the Government and must be performed only by the Government, for the protection of his own authentic rights) by taking sides in the favour of a particular batch of citizens that subscribe to any particular irrational group identity and pretending that it is their primary identity. Primary identity of any man is that he is a rational animal. (Sexual identity of an individual has no objective dependance on rationality. It neither guarantees that a man shall be rational, not contradictions his faculty of reason.)

No law can be objectively valid, if it is not applicable equally to all the citizens: The elected government by placing the interests of any one citizen above the interests of any other second citizen, and thereby spending the taxpayer’s property in the favour of the first citizen, is establishing a false principle that protecting the second citizen’s right to his own property is of less importance to it compared to the task of protecting the first citizen’s right to his own property. Thus claiming that one citizen’s right to his own life takes precedence over the other citizen’s right to his own life. Note that earning and owning his own property through his own independent efforts is the only way for a free man to lead a morally good life in a free society. This, man’s right to his own life, is the rational basis for man’s right against discrimination by the elected government: A valid, objective, authentic right.

There is no free meal in a morally good, free society. Each man must earn his own bread, or it be provided to him by another man out of generosity, who earned his own bread, by trading his own efforts or his own property in the free market(free from Governmental intervention of any kind). No man can have the right to the product of another man’s life. Claiming the right to another man’s life, the right to another man’s property, to force him to act against the judgement of his mind, against his own interests are the hallmarks of a morally bankrupt, collectivist society. Such societies, by the very nature of their blatant disregard for violation of authentic individual rights, are bound to fail disastrously.

An objectivist cannot survive in a collectivist society. A truly free society has never been established in the recorded history of mankind, not even in America. Each generation of individuals must objectively understand and validate their own rights, and fiercely protect the objectivity of their constitution: Inviolable nature of Man’s right to his own life, and all the authentic rights derived only from it, and not allow any contradictions in it, because it is in their own interest.

I shall discuss the structure of objective philosophy, and its logical applications to specific circumstances, with reasons, in my further articles.