9 social security it is wrong to force people to save

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(9) Social Security: It is wrong to force people to save for old age (or something else for that matter). How much one saves or doesn’t save should be up to the individual. As to the redistributory aspect of social security, it is tantamount to theft for the government to reach into one person’s pocket, take out money, and redistribute that money to someone else. (10) Welfare: Welfare is a force redistribution program. In addition, in many instances, welfare programs produce outcomes contrary to the stated goals of the programs. For example, welfare often makes people more dependent on others and less likely to acquire work skills. Libertarians are in favor of voluntary charities. A Critique of Libertarianism: (1) Libertarians do not see the merit of using government’s taxing, subsidy, and regulatory powers to adjust for third-party effects. (2) Libertarians do not seriously consider complex exchanges. (3) Libertarians do not see the stabilizing effects of government monetary and fiscal policies. Karl Marx (1818-1883) Karl Marx has played a major part in the development of socialist thought. The Basics of Marx’s Thought: Few economists have had as much influence on the world as Karl Marx. In turn, Marx was influenced by the economist David Ricardo and the philosopher George Hegel, among others, in particular, by Ricardo’s discussion of the labor theory of value and Hegel’s dialectic. The Labor Theory of Value: Holds that all value in produced goods is derived from direct and indirect (or embodied) labor. Or the value of all goods is equal to the value of the labor used in producing them. 3
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A man or woman working on a factory line is an example of direct labor. A machine, made by a man or woman, is an example of indirect, or embodied labor. Marx argued that the value of a good is determined by the socially necessary labor time embodies in the good. This is the sum of the direct and indirect (or embodies) labor necessary to produce socially desired commodities. (By using the adjective socially, Marx was able to differentiate between those goods that were genuinely desired by people like-- shoes, coats, and houses, and those that were not-- like sand castles on the beach). For example, if it takes 5 hours of socially necessary labor time to produce X and 10 hours to produce Y, then Y will be twice as valuable as X. Marx realized that labor was not all of equal quality, but he believe that skilled labor could be calculated as some multiple of unskilled labor. Marx maintained that labor, or labor power, capitalist purchase is itself a commodity, and thus its value (like that of commodities) is determined by labor time. Also, the value time necessary for the workers to earn the necessities consumed by the worker and his or her family. Surplus Value: In Marxist terminology, the difference between the total value of production and the subsistence wages paid to workers. Suppose a worker needs $2.00 (in quarters) a day to subsist. Furthermore, suppose it takes 4 hours to produce the gold that is in $2.00 in quarters. This means that the worker needs to work 4 hours to earn $2.00. Two ($2.00) dollars is the value of labor power, it is what workers would be paid for a day’s work. But here is the sticking point: the work day is longer than 4 hours. It is 8 hours. In this case, the worker works an 8 hour day to earn $2.00 (which is equal to 4 hours labor time), and the value produced by the worker in the 4 remaining hours is surplus value that the capitalist exploits from the worker.
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